Business Information and

Information and IT in
Business

Higher Business Management

m
m
 uources of Information
Ú ñrimary ƛ information collected by the
business itself. uometimes called Field
research. It is first hand information.
Ú Examples: Market Research data, Consumer
Research

Ú uecondary ƛ information already published.

Also called Desk research.
Ú Examples: Government Reports, MINTEL
Reports m
m
 uources of Information
Ú Internal ƛ information collected within
the business.
Ú Examples: Employee or customer
records

Ú External ƛ information collected from

outside the business.
Ú Examples: National utatistics, Rivalsƞ
accounts
m
m
Type of Info Costs - Benefits +

ñrimary expensive Reliable,

verifiable

uecondary Less expensive Easy to obtain,

than primary, may wider number of
not be relevant sources
Internal No financial costs Reliable,
verifiable

External May have a More sources

financial cost available than
primary
m
m
 Types of Information
Ú Ôritten ƛ info presented on paper or
computer screen
Ú Oral ƛ info communicated by voice
Ú ñictorial ƛ info displayed by a photo or
picture
Ú Graphical ƛ info displayed as a graph or
chart
Ú Numerical ƛ info presented in numbers
rather than text m
m
 ½ualitative & ½uantitative Info
Ú ½ualitative information is descriptive in nature and
includes peopleƞs feelings and attitudes towards a
topic.
Ú Example: Ôhy is Cheese & Onion your favourite
flavour of crisps?

Ú ½uantitative information is measurable and

expressed numerically. It deals in facts and
figures.
Ú Example: How often do you eat a packet of crisps
in a week?
m
m
m
m
 alue of Information

Ú Accuracy ƛ is it correct?

Ú Timeliness ƛ is it up-
up-to
to--date and reliable?

Ú Completeness ƛ are there any omissions?

Ú Appropriateness ƛis it relevant?

m
m
 alue of Information
Ú Availability ƛ is it at hand when
needed? Easy to obtain?

Ú Cost ƛ is it expensive to collect?

Ú Objectivity ƛ is it free from bias?

Ú Conciseness ƛ is it straight to the point?

m
m
 Gses of Information in Business
Ú Monitoring and control ƛ used to ensure firm is
heading in expected direction

Ú Decision-making ƛ before making any decision,

Decision-
managers have to weigh up alternatives or different
sides of an argument.

Ú Measuring performance - workersƞ output may be

measured against a standard set by the worker or
colleagues.

Ú Identifying new business opportunities ƛ analysing

consumer trends may mlead to

m
a new product or
service to fill new customer needs
Mainframe
Ú Large, powerful
supercomputers (like
Cray) capable of multi-
multi-
tasking

Ú Gsed mainly for

scientific and
engineering purposes.

Ú NAuA is one such user.

m
m
 Mainframe +/-
+/-
+ -
Ú Enormous memory Ú Hugely expensive
Ú ast processing Ú Increasing
power dependency
Ú Extremely fast

m
m
ñC and Laptops
Ú Home, Office or
mobile computers
Ú Now have
Notebooks and
ñalmtops
Ú Have hinged screen
Ú LCD display
Ú Battery powered
Ú Trackpad instead of
mouse
m
m
 ñC and Laptops +/-
+/-
Ú + Ú -
Ú Good value for Ú uhort shelf life
money Ú ñrone to viruses and
Ú Ever increasing breakdowns
capacity and
processing power

m
m
Networks
Ú LANs (Local Area
Networks) are linked
to a geographically
close server.
Ú
ÔANs (Ôide Area
Networks) use
telecommunications
such as cable and
satellite to link up
across continents
m
m
 Networks +/-
+/-
Ú + Ú -
Ú Employees linked Ú uerver breakdowns
together Ú ñrone to viruses
Ú uhare data and files Ú Reliance on backups

m
m
E-mail
Ú Transfer of text,
graphics and other
information between
computer users via
telephone lines.

Ú Requires internet
access and valid
email address

m
m
 E-mail +/-
+/-
Ú + Ú -
Ú Instant Ú Junk mail
communication Ú utaff may abuse use
Ú uame message can Ú iruses
be sent to many Ú E-mail has same
people legal liability as
Ú Cost--effective
Cost written material

m
m
ideoconferencing
Ú uound and vision
linking of people at
different locations

Ú Enables a virtual
meeting between
people without
having to travel

m
m
 ideoconferencing +/-
+/-
Ú + Ú -
Ú uaves Ú ñoor connections
accommodation and Ú Time lags
travel Ú Hard to pick up
Ú uaves travelling time body language
Ú Relatively
inexpensive

m
m
Internet
Ú International network
of computers
Ú In existence since
1969!

Main uses:
Ú E-mail
Ú Newsgroups
Ú uharing Information
m
m
 Internet
Ú + Ú -
Ú Access to vast Ú Check reliability of
amounts of information
information Ú iruses
Ú Access to wider Ú utaff may abuse
global market access

m
m
Interactive CD or DD
Ú Interactive media
used for staff
training

Ú CD holds 650 MB
Ú DD holds 17 GB

m
m
 Interactive CD or DD +/
+/--
Ú + Ú -
Ú Cheaper than using Ú Employees
consultants unsupervised
Ú One--on-
One on-one - More Ú Finite questions
involving for staff Ú No human contact

m
m
Computer Aided Manufacture
Ú Computers and
robots used to
control machines

m
m
 CAM +/-
+/-
Ú + Ú -
Ú uaves labour costs Ú Costly breakdowns
Ú Consistent quality Ú Canƞt think for
Ú Twentyfourseven themselves
production

m
m
EñOu
Ú Electronic ñoint of uale

Ú Allows an electronic
record kept of all
purchases and returns

Ú EFTñOu is when uwitch

and Delta are used.
(Electronic Funds
Transfer at ñoint of uale)
m
m
 EñOu +/-
+/-
Ú + Ú -
Ú Records purchases Ú Barcodes may be
& returns faulty
Ú Aids stock control Ú Information has to
Ú Can be used for be entered correctly
market research on Barcode

m
m
Database
Ú ƛ data
J
 ƛ
saved and organised
in an electronic filing
system
Ú Keeping and sorting
records
Ú uearching for
information
Ú Filing reports
Ú Mail merge
m
m
upreadsheet
Ú u
 
- an
electronic worksheet
used to manage
numbers and carry
out calculations.
Ú ñroduces charts
and graphs
Ú Ôhat if scenarios
Ú Budgets, wages,
sales figures,
estimates
m
m
Ôord ñrocessing
Ú Ô




ƛ an electronic
typewriter
Ú ñrepare letters,
memos, reports
Ú Edit text
Ú Graphics and images
Ú Mail merge

m
m
Desktop ñublishing
Ú J
  
 ƛ
package that allows
professional documents to
be created
Ú Text, graphics, and images
Ú High quality documents
Ú Magazines, newsletters,
price lists, posters, forms,
booklets, manuals,
catalogues, leaflets
m
m
ñresentation ñackages
Ú 






  ƛ
projects an image
onto large screen
Ú Gsed for
presentations
Ú Can use audio and
movie clips
Ú Easily available
handouts and notes

m
m
Computer--aided Design
Computer
Ú  




 J 

 J ƛ computerised
process for creating new
parts or products or
altering existing ones
Ú Mainly used by architects,
designers and engineers
Ú Also used in animation and
in simulations
Ú Alterations can be made
without redrawing
m
m
Decision--Making ñackages
Decision
Ú J


 


  ƛ
analytical tools for
managers
Ú ñroduces statistics
and graphs
Ú Helps managers
evaluate information

m
m
ñroject Management ñackages
Ú 







  ƛ enables
project teams to co-
co-
ordinate activities
Ú Details budgets
Ú Team member tasks
Ú Records resources used
or allocated
Ú Time deadlines
Ú ñrogress reports
m
m
 Benefits of IT
Ú Increases productivity
Ú Reduces waste
Ú Increases speed of work
Ú Improves accuracy and quality
Ú Increases access to information
Ú Improves communication & decision-
decision-
making
Ú uaves floor space

m
m
 Costs of IT

Ú Costly to develop, install and maintain

Ú Training staff is costly and timely
Ú Introduction may not be easy
Ú Requires new skills
Ú Breakdowns very costly and inconvenient
Ú Deskilled workers leads to low motivation

m
m
 Benefits of uoftware

Ú Information can be handled very quickly

Ú upeed and quality of decision-
decision-making
improved
Ú Fewer errors made making calculations
Ú Improved accuracy and quality

m
m
 Costs of uoftware
Ú Expensive to buy
Ú utaff training required and costly
Ú utaff learning curve can be costly
Ú Time can be lost due to glitches
Ú External threats - viruses

m
m
 Gses of IT

Ú Assists decision-
decision-making
Ú Assists with providing information for
staff
Ú Helps maintain complete and accurate
business records
Ú Aids effective communication within an
organisation
m
m
 Effects of IT on Employees

Ú Greater productivity
Ú Retraining required
Ú Changes in customer relations ƛ more
impersonal yet quicker response
Ú Less personal contact

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

m
m
 INTRODGCTION
Ú - A new Data ñrotection Act was passed
in 1998 which supersedes the 1984 Act,
which will be repealed.

Ú There are eight Data ñrotection

ñrinciples in the Act. However, the new
ñrinciples are not exactly the same as
those in the 1984 Act.
m
m
Ú 1. FIRuT ñRINCIñLE
Ú "ñersonal data shall be processed fairly and
lawfully."
Ú 2. uECOND ñRINCIñLE
Ú "ñersonal data shall be obtained only for
specified and lawful purposes, and shall be
processed only in a manner compatible with
those purposes."
Ú 3. THIRD ñRINCIñLE
Ú "ñersonal data shall be adequate, relevant
and not excessive in relation to the purposes
for which they are processed."
m
m
Ú 4. FOGRTH ñRINCIñLE
Ú "ñersonal data shall be accurate and,
where necessary, kept up to date".
Ú 5. FIFTH ñRINCIñLE
Ú "ñersonal data processed for any
purposes shall not be kept for longer
than is necessary for those purposes".
Ú 6. uIXTH ñRINCIñLE
Ú "ñersonal data shall be processed in
accordance with the rights of data
subjects under this Act."
m
m
Ú 7. uEENTH ñRINCIñLE
Ú "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."
Ú 8. EIGHTH ñRINCIñLE
Ú "ñersonal 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 data."
m
m
Ú ñersonal 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.
Ú Ôith processing, the definition is far
wider than before. For example, it
incorporates the concepts of 'obtaining',
holding' and 'disclosing'.

m
m