1
Introduction to Business
Chapter 13 Using Technology to Manage Information
13.1 Transforming Businesses through Information
Businesses depend on information technology for everything from running daily operations to making
strategic decisions. Companies must have management information systems that gather, analyze, and
distribute information to the appropriate parties, including employees, suppliers, and customers. These
systems are comprised of different types of computers that collect data and process it into usable
information for decision-making. Managers tap into databases to access the information they need, whether
for placing inventory orders, scheduling production, or preparing long-range forecasts. They can compare
information about the company’s current status to its goals and standards. Company-wide enterprise
resource planning systems that bring together human resources, operations, and technology are becoming
an integral part of business strategy.
13.1 Review Questions
1. What does information technology (IT) include?
2. Why is information considered the heart of all organizations?
3. In the last 70 years, we have shifted from what to what?
4. What are common types of business computing equipment?
5. What can complete tasks in hours that would take years on a PC?
6. What critical role do supercomputers play?
7. How have the internet and web become indispensable business tools?
8. What are electronic trading hubs?
9. Who manages a company’s information resources?
10. Describe knowledge workers.
11. Management information systems provide managers with what kind of information, and how
does this information benefit them?
12. What is data?
13. What do managers process data into?
14. What is a database, and what type of software does it use?
13.2 Linking Up: Computer Networks
Today companies use networks of linked computers that share data and expensive hardware to improve
operating efficiency. Types of networks include local area networks, wide area networks, and wireless local
area networks. Intranets are private WANs that allow a company’s employees to communicate quickly with
one other and work on joint projects, regardless of their location. Companies are finding new uses for
wireless technologies such as tablets, cell phones, and other mobile devices. Virtual private networks give
companies a cost-effective secure connection between remote locations by using public networks such as the
internet.
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
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13.2 Review Questions
1. Define the following terms:
a. Computer Network
b. Client
c. Server
2. What does the client rely on?
3. How have networks created new ways to work and increase productivity?
4. Describe the two basic types of networks.
5. What does a local area network (LAN) let people do?
6. What are private corporate networks called, and are they a type of LAN or WAN?
7. How do intranets work, and are they a type of LAN or WAN
8. What does a firewall do?
9. What are the benefits of Intranet?
10. What are enterprise portals, and what types are there?
11. Why do companies use enterprise portals?
12. How do businesses use wireless technology?
13. Define the following terms
a. Bluetooth
b. VPN
14. What do VPNs include?
15. Why are VPNs popular?
16. What is the purpose of application service providers (ASP)?
17. What are other names for ASPs.
18. What are the three major categories of ASP?
19. What does enterprise applications include?
20. What are collaborative applications used for?
21. Provide examples of personal use applications.
22. Why were companies reluctant to use ASP?
23. What is the next generation of ASPs, and what do they offer?
13.3 Management Information Systems
A management information system consists of a transaction processing system, management support
systems, and an office automation system. The transaction processing system collects and organizes
operational data on the firm’s activities. Management support systems help managers make better decisions.
They include an information-reporting system that provides information based on the data collected by the
TPS to the managers who need it; decision support systems that use models to assist in answering “what if”
types of questions; and expert systems that give managers advice similar to what they would get from a
human consultant. Executive information systems are customized to the needs of top management.
13.3 Review Questions
1. Define the following terms:
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
Introduction to Business
Chapter 13 Using Technology to Manage Information
13.1 Transforming Businesses through Information
Businesses depend on information technology for everything from running daily operations to making
strategic decisions. Companies must have management information systems that gather, analyze, and
distribute information to the appropriate parties, including employees, suppliers, and customers. These
systems are comprised of different types of computers that collect data and process it into usable
information for decision-making. Managers tap into databases to access the information they need, whether
for placing inventory orders, scheduling production, or preparing long-range forecasts. They can compare
information about the company’s current status to its goals and standards. Company-wide enterprise
resource planning systems that bring together human resources, operations, and technology are becoming
an integral part of business strategy.
13.1 Review Questions
1. What does information technology (IT) include?
2. Why is information considered the heart of all organizations?
3. In the last 70 years, we have shifted from what to what?
4. What are common types of business computing equipment?
5. What can complete tasks in hours that would take years on a PC?
6. What critical role do supercomputers play?
7. How have the internet and web become indispensable business tools?
8. What are electronic trading hubs?
9. Who manages a company’s information resources?
10. Describe knowledge workers.
11. Management information systems provide managers with what kind of information, and how
does this information benefit them?
12. What is data?
13. What do managers process data into?
14. What is a database, and what type of software does it use?
13.2 Linking Up: Computer Networks
Today companies use networks of linked computers that share data and expensive hardware to improve
operating efficiency. Types of networks include local area networks, wide area networks, and wireless local
area networks. Intranets are private WANs that allow a company’s employees to communicate quickly with
one other and work on joint projects, regardless of their location. Companies are finding new uses for
wireless technologies such as tablets, cell phones, and other mobile devices. Virtual private networks give
companies a cost-effective secure connection between remote locations by using public networks such as the
internet.
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
, 2
13.2 Review Questions
1. Define the following terms:
a. Computer Network
b. Client
c. Server
2. What does the client rely on?
3. How have networks created new ways to work and increase productivity?
4. Describe the two basic types of networks.
5. What does a local area network (LAN) let people do?
6. What are private corporate networks called, and are they a type of LAN or WAN?
7. How do intranets work, and are they a type of LAN or WAN
8. What does a firewall do?
9. What are the benefits of Intranet?
10. What are enterprise portals, and what types are there?
11. Why do companies use enterprise portals?
12. How do businesses use wireless technology?
13. Define the following terms
a. Bluetooth
b. VPN
14. What do VPNs include?
15. Why are VPNs popular?
16. What is the purpose of application service providers (ASP)?
17. What are other names for ASPs.
18. What are the three major categories of ASP?
19. What does enterprise applications include?
20. What are collaborative applications used for?
21. Provide examples of personal use applications.
22. Why were companies reluctant to use ASP?
23. What is the next generation of ASPs, and what do they offer?
13.3 Management Information Systems
A management information system consists of a transaction processing system, management support
systems, and an office automation system. The transaction processing system collects and organizes
operational data on the firm’s activities. Management support systems help managers make better decisions.
They include an information-reporting system that provides information based on the data collected by the
TPS to the managers who need it; decision support systems that use models to assist in answering “what if”
types of questions; and expert systems that give managers advice similar to what they would get from a
human consultant. Executive information systems are customized to the needs of top management.
13.3 Review Questions
1. Define the following terms:
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
