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 Easy to obtain,

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

External May have a More sources

financial cost available than
primary
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a) What is primary
information?
b) What is secondary
information?
c) What is internal
information?
d) What is external
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information?
a) Choose 2 different sources of
information. Describe these
sources and give an example of
each one
b) Identify at least one cost and one
benefit of the sources of
information chosen in question a)
c) List at least 3 different types of
information

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a) List at least 5 characteristics
of good information
b) 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
 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?
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M. McGowan
 Value of Information

 Accuracy – is it correct?

 Timeliness – is it up-to-date and

reliable?

 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?

 Cost – is it expensive to collect?

 Objectivity – is it free from bias?

 Conciseness – is it straight to the

point?
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 Uses of Information in
Business
 Monitoring and control – used to ensure firm is
heading in expected direction
 Decision-making – before making any
decision, managers have to weigh up
alternatives or different sides of an argument.
 Measuring performance - workers’ output may
be measured against a standard set by the
worker or colleagues.
 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

 Used mainly for

scientific and
engineering
purposes.

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 NASA is one such
 Mainframe +/-
+ -
 Enormous  Hugely expensive
memory  Increasing
 Vast processing dependency
power
 Extremely fast

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PC and Laptops
 Home, Office or
mobile computers
 Now have
Notebooks and
Palmtops
 Have hinged
screen
 LCD display
 Battery powered
 Trackpad instead
of mouse
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 PC and Laptops +/-
 +  -
 Good value for  Short shelf life
money  Prone to viruses
 Ever increasing and breakdowns
capacity and
processing power

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Networks
 LANs (Local Area
Networks) are
linked to a
geographically
close server.

WANs (Wide Area
Networks) use
telecommunicatio
ns such as cable
and satellite to
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link up across
continents
 Networks +/-
 +  -
 Employees linked  Server
together breakdowns
 Share data and  Prone to viruses
files  Reliance on
backups

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a) List at least 3 examples of
information technology in use
today
b) What is a mainframe computer
and why is its use in modern
business less widespread than in
the 1970s?
c) What is a LAN? What is a WAN?
How are they different?
d) How might a modern business
make use of different
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E-mail
 Transfer of text,
graphics and
other information
between
computer users
via telephone
lines.

 Requires internet
access and valid
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 E-mail +/-
 +  -
 Instant  Junk mail
communication  Staff may abuse
 Same message use
can be sent to  Viruses
many people  E-mail has same
 Cost-effective legal liability as
written material

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

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Videoconferencing
 Sound and vision
linking of people
at different
locations

 Enables a virtual
meeting between
people without
having to travel

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 Videoconferencing +/-
 +  -
 Saves  Poor connections
accommodation  Time lags
and travel  Hard to pick up
 Saves travelling body language
time
 Relatively
inexpensive

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Internet
 International
network of
computers
 In existence since
1969!

Main uses:
 E-mail
 Newsgroups

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
 Internet
 +  -
 Access to vast  Check reliability
amounts of of information
information  Viruses
 Access to wider  Staff may abuse
global market access

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Interactive CD or DVD
 Interactive media
used for staff
training

 CD holds 650 MB
 DVD holds 17 GB

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

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Computer Aided
Manufacture
 Computers and
robots used to
control machines

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 CAM +/-
 +  -
 Saves labour  Costly
costs breakdowns
 Consistent quality  Can’t think for
 Twentyfourseven themselves
production

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EPOS
 Electronic Point of
Sale

 Allows an electronic
record kept of all
purchases and
returns

 EFTPOS is when
Switch and Delta are
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used. (Electronic
 EPOS +/-
 +  -
 Records  Barcodes may be
purchases & faulty
returns  Information has to
 Aids stock control be entered
 Can be used for correctly on
market research Barcode

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 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
 Database – data
saved and
organised in an
electronic filing
system
 Keeping and
sorting records
 Searching for
information
 Filing reports
 Mail merge
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Spreadsheet
 Spreadsheet -
an electronic
worksheet used to
manage numbers
and carry out
calculations.
  Produces charts
and graphs
 What if scenarios
 Budgets, wages,
sales figures,
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Word Processing
 Word
Processing – an
electronic
typewriter
  Prepare letters,
memos, reports
 Edit text
 Graphics and
images
 Mail merge
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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,
manuals, catalogues,
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Presentation Packages
 Presentation
Packages –
projects an image
onto large screen
  Used for
presentations
 Can use audio
and movie clips
 Easily available
handouts and
notes
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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
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 Alterations can be
Decision-Making Packages
 Decision-
Making
Packages –
analytical tools
for managers
 Produces
statistics and
graphs
 Helps managers
evaluate
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Project Management
Packages
 Project
Management
Packages – enables
project teams to co-
ordinate activities
 Details budgets
 Team member tasks
 Records resources
used or allocated
 Time deadlines
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 Progress reports
a) List 5 types of business software
b) Identify 3 facilities provided by a
word processing program
c) Identify 3 facilities provided by a
spreadsheet program
d) Identify 3 facilities provided by a
database program
e) Identify 3 facilities provided by a desk
top publishing program
f) What kind of organisation might use
a decision making package?
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 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

M. McGowan
 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

 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
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 Benefits of Software

 Information can be handled very

quickly
 Speed and quality of decision-
making 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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a) List 2 ways in which using
Internet banking services
benefits an organisation
b) 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.

 There are eight Data Protection

Principles in the Act. However, the
new Principles are not exactly the
same as those in the 1984 Act.
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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
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data subjects under this Act."
 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
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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
'obtaining', holding'
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and
a) What is the scope of the Data
Protection Act 1998?
b) List at least 5 Data Protection
Principles
c) What is the maximum time limit
that an organisation has to
respond to a request for
information?
d) List at least two circumstances
where an individual could be
refused access to information
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held about themselves