Business Info & It V4

Business Information and Information and IT in Business

Higher Business Management M. McGowan

January 8th 1815. General Andrew Jackson led US troops to a victory over the British in the War of 1812.  More than 2,000 men died in the Battle of New Orleans  Sadly a peace had been made 2 weeks earlier called the Treaty of Ghent.  Communication and information are key in life and business. 

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Today… Sources of Information  Types of Information  Qualitative and Quantitative information  Value of Information  Uses of information in business 

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Sources of Information Primary – information collected by the business itself. Sometimes called Field research. It is first hand information.  Examples: Market Research data, Consumer Research 

Secondary – information already published. Also called Desk research.  Examples: Government Reports, MINTEL Reports M. McGowan 

Sources of Information Internal – information collected within the business.  Examples: Employee or customer records 

External – information collected from outside the business.  Examples: National Statistics, Rivals’ accounts 

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Type of Info Costs -

Benefits +

Primary

expensive

Reliable, verifiable

Secondary

Less expensive than primary, may not be relevant No financial costs

Easy to obtain, wider number of sources

May have a financial cost

More sources available than primary

Internal External

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Reliable, verifiable

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What is primary information? What is secondary information? What is internal information? What is external information? M. McGowan

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Choose 2 different sources of information. Describe these sources and give an example of each one Identify at least one cost and one benefit of the sources of information chosen in question a) List at least 3 different types of information M. McGowan

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List at least 5 characteristics of good information Complete the grid on sources of information available on the work area

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Types of Information Written – info presented on paper or computer screen  Oral – info communicated by voice  Pictorial – info displayed by a photo or picture  Graphical – info displayed as a graph or chart  Numerical – info presented in numbers rather than text M. McGowan 

Qualitative & Quantitative Info 

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Qualitative information is descriptive in nature and includes people’s feelings and attitudes towards a topic. Example: Why is Cheese & Onion your favourite flavour of crisps? Quantitative information is measurable and expressed numerically. It deals in facts and figures. Example: How often do you eat a packet of crisps in a week? M. McGowan

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Value of Information 

Accuracy – is it correct?

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Timeliness – is it up-to-date and reliable?

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Completeness – are there any omissions?

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Appropriateness –is it relevant?

Value of Information 

Availability – is it at hand when needed? Easy to obtain?

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Cost – is it expensive to collect?

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Objectivity – is it free from bias?

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Conciseness – is it straight to the point? M. McGowan

Uses of Information in Business

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Monitoring and control – used to ensure firm is heading in expected direction

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Decision-making – before making any decision, managers have to weigh up alternatives or different sides of an argument.

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Measuring performance - workers’ output may be measured against a standard set by the worker or colleagues.

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Identifying new business opportunities – analysing consumerM. McGowan trends may lead to a new product or service to fill new customer needs

Recap… Sources of Information  Types of Information  Qualitative and Quantitative information  Value of Information  Uses of information in business 

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Today… Types of IT Mainframe  PC and Laptops  Networks  Email  Videoconferencing  Internet  CAM  CD/DVD  EPOS 

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Mainframe 

Large, powerful supercomputers (like Cray) capable of multi-tasking

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Used mainly for scientific and engineering purposes.

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NASA is one such

Mainframe +/

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+ Enormous memory Vast processing power Extremely fast

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Hugely expensive Increasing dependency

PC and Laptops Home, Office or mobile computers  Now have Notebooks and Palmtops  Have hinged screen  LCD display  Battery powered  Trackpad instead of mouse M. McGowan 

PC and Laptops +/ 

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+ Good value for money Ever increasing capacity and processing power

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Short shelf life Prone to viruses and breakdowns

Networks 

LANs (Local Area Networks) are linked to a geographically close server.

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WANs (Wide Area Networks) use telecommunicatio ns such as cable and satellite to link up across M. McGowan continents

Networks +/ 

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+ Employees linked together Share data and files

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Server breakdowns Prone to viruses Reliance on backups

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List at least 3 examples of information technology in use today What is a mainframe computer and why is its use in modern business less widespread than in the 1970s? What is a LAN? What is a WAN? How are they different? How might a modern business make use of different types of M. McGowan

E-mail 

Transfer of text, graphics and other information between computer users via telephone lines.

Requires internet access and valid M. McGowan email address 

E-mail +/ 

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+ Instant communication Same message can be sent to many people Cost-effective

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Junk mail Staff may abuse use Viruses E-mail has same legal liability as written material

a) b) c) d) e)

What does ICT stand for and what does it mean? Give 3 examples of modern telecommunications networks Explain how they work Give 2 advantages and 2 disadvantages of email How might a business use ICT to expand its operations? M. McGowan

Videoconferencing 

Sound and vision linking of people at different locations

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Enables a virtual meeting between people without having to travel

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Videoconferencing +/ 

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+ Saves accommodation and travel Saves travelling time Relatively inexpensive

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Poor connections Time lags Hard to pick up body language

Internet 

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International network of computers In existence since 1969!

Main uses:  E-mail  Newsgroups  M. McGowan Sharing Information

Internet  

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+ Access to vast amounts of information Access to wider global market

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Check reliability of information Viruses Staff may abuse access

Interactive CD or DVD 

Interactive media used for staff training

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CD holds 650 MB DVD holds 17 GB

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Interactive CD or DVD +/ 

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+ Cheaper than using consultants One-on-one More involving for staff

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Employees unsupervised Finite questions No human contact

Computer Aided Manufacture 

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Computers and robots used to control machines

CAM +/ 

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+ Saves labour costs Consistent quality Twentyfourseven production

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Costly breakdowns Can’t think for themselves

EPOS 

Electronic Point of Sale

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Allows an electronic record kept of all purchases and returns

EFTPOS is when Switch and Delta are M. McGowan used. (Electronic 

EPOS +/ 

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+ Records purchases & returns Aids stock control Can be used for market research

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Barcodes may be faulty Information has to be entered correctly on Barcode

Recap… Types of IT Mainframe  PC and Laptops  Networks  Email  Videoconferencing  Internet  CAM  CD/DVD  EPOS 

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Today… Database  Spreadsheet  Word Processing  Desktop Publishing  Presentation Packages  Computer-aided design  Decision-making packages  Project Mangement Packages 

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Database 

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Database – data saved and organised in an electronic filing system Keeping and sorting records Searching for information Filing reports Mail merge

Spreadsheet Spreadsheet an electronic worksheet used to manage numbers and carry out calculations.   Produces charts and graphs  What if scenarios  Budgets, wages, sales figures, M. McGowan estimates 

Word Processing 

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Word Processing – an electronic typewriter  Prepare letters, memos, reports Edit text Graphics and images Mail merge

Desktop Publishing Desktop Publishing – package that allows professional documents to be created  Text, graphics, and images  High quality documents  Magazines, newsletters, price lists, posters, forms, booklets, M. McGowan manuals, catalogues, 

Presentation Packages 

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Presentation Packages – projects an image onto large screen  Used for presentations Can use audio and movie clips Easily available handouts and notes

Computer-aided Design Computer-aided Design (CAD) – computerised process for creating new parts or products or altering existing ones  Mainly used by architects, designers and engineers  Also used in animation and in simulations M. McGowan  Alterations can be 

Decision-Making Packages DecisionMaking Packages – analytical tools for managers  Produces statistics and graphs  Helps managers evaluate M. McGowan information 

Project Management Packages Project Management Packages – enables project teams to coordinate activities  Details budgets  Team member tasks  Records resources used or allocated  Time deadlines M. McGowan  Progress reports 

a) b) c) d) e) f)

List 5 types of business software Identify 3 facilities provided by a word processing program Identify 3 facilities provided by a spreadsheet program Identify 3 facilities provided by a database program Identify 3 facilities provided by a desk top publishing program What kind of organisation might use a decision making package? M. McGowan

Recap… Database  Spreadsheet  Word Processing  Desktop Publishing  Presentation Packages  Computer-aided design  Decision-making packages  Project Mangement Packages 

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Today… Benefits of IT  Costs of IT  Benefits of Software  Costs of Software  Uses of IT  Effects of IT on employees  Effects of IT on organisations 

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Benefits of IT Increases productivity  Reduces waste  Increases speed of work  Improves accuracy and quality  Increases access to information  Improves communication & decision-making  Saves floor space 

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Costs of IT     

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Costly to develop, install and maintain Training staff is costly and timely Introduction may not be easy Requires new skills Breakdowns very costly and inconvenient Deskilled workers leads to low motivation M. McGowan

Benefits of Software Information can be handled very quickly  Speed and quality of decisionmaking improved  Fewer errors made making calculations  Improved accuracy and quality 

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Costs of Software Expensive to buy  Staff training required and costly  Staff learning curve can be costly  Time can be lost due to glitches  External threats - viruses 

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Uses of IT Assists decision-making  Assists with providing information for staff  Helps maintain complete and accurate business records  Aids effective communication within an organisation 

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Effects of IT on Employees Greater productivity  Retraining required  Changes in customer relations – more impersonal yet quicker response  Less personal contact 

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Effects of IT on Organisation Decentralisation possible  Additional departments/jobs may be created  Fewer staff required  Changes to span of control – narrower due to less staff or wider due to autonomy of staff 

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List 2 ways in which using Internet banking services benefits an organisation How does the use if internet banking facilities help firms operate globally?

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Recap… Benefits of IT  Costs of IT  Benefits of Software  Costs of Software  Uses of IT  Effects of IT on employees  Effects of IT on organisations 

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Today… 

Data Protection Act

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INTRODUCTION 

- A new Data Protection Act was passed in 1998 which supersedes the 1984 Act, which will be repealed.

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There are eight Data Protection Principles in the Act. However, the new Principles are not exactly the same as those in the 1984 Act. M. McGowan

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1. FIRST PRINCIPLE "Personal data shall be processed fairly and lawfully." 2. SECOND PRINCIPLE "Personal data shall be obtained only for specified and lawful purposes, and shall be processed only in a manner compatible with those purposes." 3. THIRD PRINCIPLE "Personal data shall be adequate, relevant and not excessive in relation to the purposes for which they are processed." M. McGowan

4. FOURTH PRINCIPLE  "Personal data shall be accurate and, where necessary, kept up to date".  5. FIFTH PRINCIPLE  "Personal data processed for any purposes shall not be kept for longer than is necessary for those purposes".  6. SIXTH PRINCIPLE  "Personal data shall be processed in accordance with the rights of M. McGowan data subjects under this Act." 

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7. SEVENTH PRINCIPLE "Appropriate technical and organisational measures shall be taken against unauthorised or unlawful processing of personal data and against accidental loss or destruction of, or damage to, personal data." 8. EIGHTH PRINCIPLE "Personal data shall not be transferred to a country or territory outside the European Economic Area, unless that country or territory ensures an adequate level of protection for the rights and freedoms of data subjects in relation to the processing of personal M. McGowan data."

Personal data covers both facts and opinions about the individual. It also includes information regarding the intentions of the data controller towards the individual, although in some limited circumstances exemptions will apply.  With processing, the definition is far wider than before. For example, it incorporates the concepts of M. McGowan 'obtaining', holding' and 

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What is the scope of the Data Protection Act 1998? List at least 5 Data Protection Principles What is the maximum time limit that an organisation has to respond to a request for information? List at least two circumstances where an individual could be refused access to information M. McGowan held about themselves