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Chapter 13: Using Technology to Manage Information
LO 13-1
Outline the changing role of business
technology.
Key Terms:
data processing (DP)
database
information systems (IS)
information technology (IT)
business intelligence (BI) or analytics
Lecture Notes
I. THE ROLE OF INFORMATION TECHNOLOGY
A. Business technology is continuously CHANGING NAMES
and CHANGING ROLES.
B. EVOLUTION FROM DATA PROCESSING TO BUSINESS
INTELLIGENCE
1. DATA PROCESSING (DP) is the name for business
technology in the 1970s; included technology that
supported an existing business and was primarily
used to improve the flow of financial information.
a. DATA are raw, unanalyzed, and unorganized
facts and figures.
b. INFORMATION is the processed and
organized data that can be used for
managerial decision making.
c. DATA PROCESSING was used to support and
improve an existing business by improving
the flow of financial information.
d. Staff had to spend time sorting into an
electronic storage file called a DATABASE.
2. In the 1980s, business technology became known
as INFORMATION SYSTEMS (IS).
a. INFORMATION SYSTEMS (IS) is technology
that helps companies do business; it includes
such tools as automated teller machines
(ATMs) and voice mail.
b. Its role was changed from SUPPORTING
business to DOING business (for example,
ATMs and voice mail).
c. As business used technology more, it became
more dependent on it.
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3. Until the late 1980s business technology involved
using NEW TECHNOLOGY on OLD METHODS.
a. Then business shifted to using NEW
TECHNOLOGY on NEW METHODS.
b. INFORMATION TECHNOLOGY (IT) is
technology used to store, retrieve, and send
information efficiently.
c. The role of the IT staff has changed and
increased in importance.
d. Today, the CIO helps business technology
communicate better while offering better
services and lower costs.
4. KNOWLEDGE is information charged with enough
intelligence to make it relevant and useful.
5. A new sophisticated form of IT is BUSINESS
INTELLIGENCE (BI), any variety of software
applications that analyze an organization’s raw data
and take out useful insights from it.
7. Business intelligence changes the traditional flow of
information.
6. BI provides the right information to the right person
at the right time.
7. Maintaining FLEXIBILITY to deal with future
changes is critical to business survival.
C. HOW INFORMATION TECHNOLOGY CHANGES BUSINESS
1. Time and place have always been at the center of
business.
a. Today, IT allows businesses to deliver
products and services whenever and
wherever it is convenient for the CUSTOMER.
b. The text uses the entertainment industry to
illustrate the changes created by new
technologies.
c. As IT breaks time and location barriers, it
creates organizations and services that are
INDEPENDENT OF LOCATION.
d. NASDAQ, an electronic stock exchange
without a trading floor, allows buyers and
sellers to make trades by computer.
2. When companies increase their technological
capabilities, it changes the way people do business.
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a. E-MAIL is far faster than paper-based
correspondence.
b. TEXTING AND INSTANT MESSAGING (IM)
have become favorite business real-time
communication tools.
WHY WE TYPE THIS WAY
The modern office is likely to be equipped with personal computers linked through local
area networks to each other, to the Internet, and to a host of specialized equipment, from
laser printers to scanners to databases storing millions of customer records. Within this
state-of-the-art system is a 19th-century bottleneckthe computer keyboard.
The computer keyboard is simply a transplanted typewriter keyboard, the same keyboard
that has been used since the 1870s. The first practical modern typewriter was patented in
1868 by Christopher Sholes, who invented the device with partners S. W. Soule and G.
Glidden.
When Sholes invented the first typewriter, keys were arranged alphabetically (vestiges of
this arrangement can be seen on the second row of keysD F G H J K L). Printing bars were
mechanically pushed against the paper by the pressure on the keys. Typists soon became
proficient enough to cause jams as they typed faster than the mechanical bars could move.
Typewriter manufacturers went back to the drawing board and designed a new keyboard to
slow typists down to speeds within the limits of the crude mechanism. The resulting
keyboard is referred to as “Qwerty,” named for the first six keys of the top row. Keys were
placed awkwardly to force slower typing. The “A,” for instance, one of the most frequently
used keys, was placed under a typist’s left-hand little finger, the weakest finger on the hand.
“E” required an awkward reach using the middle finger of the left hand. Results were
encouragingtyping speeds declined.
Today mechanical keys have been replaced by electronic ones, but the keyboard
arrangement has remained unchanged. While the arrangement of keys is familiar, it is far
from efficient. In the 1930s, Washington State University Professor August Dvorak designed
a better keyboard that groups the most frequently used letters on the home row and
eliminates many awkward reaches. The Dvorak system is faster to learn, easier to type, less
tiring, and less likely to cause errors than Qwerty. Using it increases typing speed by more
than 20%. Yet the system never caught ontypists did not want to learn a new system
when their typewriters all used Qwerty, and manufacturers did not want to produce Dvorak
typewriters as long as typists used Qwerty.
MUSICIANS CAN EARN BIG MONEY ON LIVE STREAMING APPS
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Even before the days of iTunes and Spotify, musicians depended heavily on the money they
earned from touring to supplement their album sales. And while streaming services
have recently provided a big boost of revenue for the industry, the vast majority of
musicians still don’t make enough money from their recordings to earn a living. As a result,
performing live is often the best option for musicians who want to see a monetary reward
for their efforts.
Of course, touring the country as a working musician isn’t quite the rock and roll fantasy
that some might imagine. Empty venues, cramped vans and long stretches away from home
are just a few of the hardships that musicians face when they hit the road. That’s why many
music makers have turned to live video streaming apps like YouNow and Live.ly for
exposure. Along with providing an engaged and enthusiastic audience, these services also
allow fans to tip musicians as they play.
The most successful streamers can rake in as much as $20,000 per month from tips. 29-
year-old Brent Morgan says he earns that amount in a good month from his twice-daily
performances on YouNow. He streams for about three hours each day, playing multiple
instruments and creating custom jingles on the spot for tippers. Representatives from
YouNow claim that several dozen of its 34 million users earn six figures a year performing
music and comedy for their fans. In fact, these platforms have been so successful that
Facebook is thinking about adding a tip jar to their live streaming feature. If that happens,
apps like YouNow and Live.ly may not be able to compete with the social network’s user
base of more than one billion people.
E-MAIL RULES
The most-used application in offices today is e-mail, yet, it is often misused.
In your early education, you were taught how to write a letter. You probably learned how to
write business and casual headings and salutations, state your purpose, make a request, ask
for a response, and wrap it up with “Sincerely yours.”
But an e-mail is not a letter, and the days of graceful formal communication are fading
away. Short is in, “yours truly” is out. Some guidelines:
Keep It Short. Short e-mails get attention. If you receive an e-mail that’s several
pages long, you have to make some decisions. Do I have time to handle this now? Is
it important enough to come back to? If the answer is no, then the e-mail wont be
read, no matter how carefully written. Supporting material can be sent as an
attachment, but give the reader a clear, concise message in the e-mail body.
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Keep It in Context. Our inboxes are flooded with dozens of legitimate messages each
day, not to mention the mountains of spam that may or may not get through spam
filters. When you send a message to someone you don’t usually communicate with,
include some mention of your identity. “I met you at the conference last week” or
“Jim suggested I contact you regarding this issue.” If you are responding to an earlier
message, include the previous thread. Nothing is as confusing as an e-mail saying,
“What do you mean?” or “Not really” when you have no idea what you’re supposed
to understand.
Give It a Subject. The subject line is there for a reason. It tells your recipients what
you want to communicate. Some very important e-mails get overlooked with blank
subject lines or topics like “Important” or “RE: RE: RE: RE: RE:” If the topic changes,
change the subject line. Remember that on the recipients’ screens, your subject
competes with a large number of others for their attention.
Keep the Thread. Some e-mail users routinely trim everything out of the body of the
e-mail except their replies. Don’t do this. For example, if you are responding to a
request for an opinion, don’t just say “I agree” and cut out the thread. Let your
reader browse through the background for your response. A slightly longer e-mail
isn’t going to bog down the server—the thousands of spam messages are doing that
just fine.
Make Your Requests Clear. You should set your requests apart from the rest of the
message by trimming them down to one sentence or series of bullet points. Close-
ended questions (yes or no) are more readily answered. Open-ended questions can
get long and involved, and reduce the likelihood that you’ll get a reply.
Don’t Be Afraid of Deadlines. If you need the information by Friday, let the reader
know. Then if he or she can’t meet the timetable, the reader can let you know in
time for you to find another source. If you’ve requested something that has not been
delivered, it is acceptable to send a cordially worded reminder. But just one. Daily
reminders suggest to recipients that they’re being bossed around. They may be too
busy, away on vacation, or actually working on your last request.
Remember to Say “Thank You.” Not only is it polite, but it also lets the sender know you’ve
received the message and gives the subject closure. Remember, you’ll probably need their
goodwill at some time in the future.
LO 13-2
List the types of business information,
identify the characteristics of useful
information, and discuss how data are
stored and analyzed.
Key Terms:
data analytics
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Lecture Notes
II. TYPES OF INFORMATION
A. TYPES OF INFORMATION THAT ARE AVAILABLE:
1. BUSINESS PROCESS INFORMATION, such as
information about sales, enterprise resource
planning, supply chain management, and customer
relationship management systems
2. PHYSICAL-WORLD OBSERVATIONS from devices
such as RFID devices, web cams, global positioning
systems, and sensor technology
3. BIOLOGICAL DATA, including fingerprinting and
biometric devices
4. PUBLIC DATA, including electronic traces that
people leave when surfing the Internet
5. Data that indicates PERSONAL PREFERENCE OR
INTENTIONS such as the trail of information that
Internet shoppers leave
B. MANAGING INFORMATION
1. To find what they need, managers have to sift
through mountains of information.
2. Businesspeople refer to all this information
overload as “INFOGLUT.”
3. IDENTIFYING THE FOUR OR FIVE KEY GOALS helps
eliminate unnecessary information.
4. USEFULNESS of management information depends
on four characteristics:
a. QUALITY: The information must be accurate
and reliable.
b. COMPLETENESS: There must be enough data
to make a decision, but not too much to
confuse the issue.
c. TIMELINESS:
i. Information must reach managers
quickly.
ii. Technologies such as e-mail, texting,
and instant messaging increase
information timeliness.
d. RELEVANCE: Managers must know the
questions to ask to get the answers they
need.
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5. It is impossible to understand all the information
available, so priorities must be established.
C. BIG DATA AND DATA ANALYTICS
1. Information is COLLECTED with nearly every
movement you make.
2. Many companies use DATA ANALYTICS, to collect,
organize, store, and analyze large sets of data.
3. DATA MINING, looking for hidden patterns in a
data warehouse, has led to a new science of
tracking what’s selling where and who’s buying it.
4. The text uses the example of McDonald’s successful
data mining to customize its store offerings with a
couple examples of failures, too.
D. USING INFORMATION FROM SOCIAL MEDIA
1. Businesses keep a close eye on social networks to
gather instant information on consumers.
2. The text uses the example of Domino’s AnyWare
platform which allows customers to create a Pizza
Profile. From there, the customer can order pizza
from their Apple watch, Facebook Messenger, or
even tweeting a pizza emoji.
VIZIO FINED AFTER TRACKING AND SELLING CUSTOMERS’ PERSONAL DATA
In this digitally driven age, personal privacy is quickly becoming a thing of the past. Along with social
networks and websites that track users, many electronic devices also pay close attention to their
owners’ personal habits. And in at least one recent case, sometimes people don’t even know they’re
being watched by their possessions.
That’s why the Federal Trade Commission recently slapped the television maker Vizio with a $2.2
million fine. According to investigators, the company installed software that allowed it to collect up-
to-the-minute data on what was playing on their customers’ smart TV screens. Whether that video
came from a cable box, streaming service, or regular broadcast, Vizio could see it and subsequently
match it with the user’s personal information. The company then sold the data to third parties who
used it for targeted advertising.
Besides the fine, the FTC also ruled that Vizio must delete all data collected before March 2016.
What’s more, the company must receive permission from customers before they share any
information with outside entities. While many people would likely deny Vizio the right to track their
data, it’s possible that others wouldn’t mind if they could get a better deal because of it. “Should
there be two versions of a device, one that has tracking and another that does not?” said security
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expert Stephen Cobb. “The latter would presumably be priced higher because the manufacturer
would lose the revenue from selling the tracking data.” Regardless of whether this eventually
becomes an option for consumers, right now people should continue to be careful about what they
allow their devices to see.
LO 13-3
Compare the scope of the Internet,
intranets, extranets, and virtual private
networks, and explain how broadband
technology enabled the evolution to
Web 2.0 and 3.0.
Key Terms:
intranet
extranet
virtual private network (VPN)
broadband technology
Internet2
Web2.0
Web3.0
Lecture Notes
III. THE HEART OF KNOWLEDGE MANAGEMENT: THE INTERNET
A. The INTERNET is a network of computer networks.
1. It has evolved into a one-to-many broadcast
communication tool and is the heart of
KNOWLEDGE MANAGEMENT.
2. An INTRANET is a companywide network closed to
public access that uses Internet-type technology.
a. To prevent unauthorized access by outsiders,
companies use a FIREWALL consisting of
hardware, software, or both, that allows only
authorized users to access the intranet.
b. Some companies use intranets only to publish
information for employees.
c. Others create interactive intranets, allowing
employees to input information.
3. An EXTRANET is a semiprivate network that uses
Internet technology and allows more than one
company to access the same information or allows
people on different servers to collaborate.
a. Extending an intranet to outside customers is
a common use of extranets.
b. Almost all companies can use extranets for
ELECTRONIC DATA INTERCHANGE (EDI) to
share data and process orders.
4. Since an extranet does use public lines, HACKERS
can gain unauthorized access.
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a. One solution is to use DEDICATED LINES, but
this is expensive and limits use to computers
directly to those lines.
b. This solution is expensive and limits use of
computers.
5. A VIRTUAL PRIVATE NETWORK (VPN) is a private
data network that creates secure connections, or
“tunnels,” over regular Internet lines.
a. Companies no longer need dedicated lines,
but can use the public lines securely.
b. VPNs make sharing of public resources for
data more secure.
6. An ENTERPRISE PORTAL serves as entry point to a
variety of resources.
a. Portals identify users and allow them access
to areas of the intranet according to their
roles.
b. The challenge is to integrate resources so that
they appear seamless to the user.
B. BROADBAND TECHNOLOGY
1. As traffic on the Internet increases, the connection
becomes slower.
2. BROADBAND TECHNOLOGY is a technology that
offers users a continuous connection to the
Internet and allows them to send and receive files
that include voice, video, and data much faster than
earlier systems.
3. As people use more and more bandwidth, ISPs have
been placing caps on how much consumers can use.
a. NET NEUTRALITY is a hot topic. Debate over
how the existing broadband should be
distributed and who should regulate it could
go on a while.
b. Net neutrality is a concept that ISPs should
provide the same level of access to all
websites regardless of their content.
4. The TRAFFIC ON THE INTERNET has become so
intense that some users like scientists and scholars
need a faster solution.
a. One answer is to create another Internet,
reserved for research purposes only.
b. INTERNET2 is the private Internet system that
links government supercomputer centers and
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a select group of universities; it runs more
than 22,000 times faster than today’s public
infrastructure and supports heavy-duty
applications.
c. A key element is a network called vBNS, or
VERY HIGH SPEED BACKBONE NETWORK
SERVICE, set up in 1995 to link government
supercomputer centers and a select group of
universities.
d. There are more than 500 member
universities.
e. Users who pay more can use more
bandwidth.
f. The designers of Internet2 are planning to
filter out Internet2 technology in such a way
that there is plenty of room for everyone.
C. SOCIAL MEDIA AND WEB 2.0
1. Social media are providing opportunities and
challenges to today’s businesses.
a. Companies can collaborate with customers
on products, service, and promotion.
b. It’s believed that if businesses don’t have a
strong social media presence, they won’t
survive.
c. Many businesses hire social media managers
to oversee the company’s accounts.
d. Social media managers must be mindful of
how they present their content among
different platforms.
3. WEB 2.0 is the set of tools that allows people to
build social and business connections, share
information, and collaborate on projects online
(including blogs, wikis, social networking sites, and
other online communities, and virtual worlds).
a. Facebook, YouTube, and Twitter are among
the largest Web 2.0 businesses.
D. WEB 3.0
1. The Internet is evolving into a new generation that
learns about you and pushes information it “thinks”
you might like.
2. WEB 3.0 is a combination of technologies adding
intelligence and changing how people interact
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online; it includes artificial intelligence, mobile
Web, and immersive Internet.
a. The ARTIFICIAL INTELLIGENCE refers to
powerful intelligent decision-making
applications.
b. The MOBILE WEB allows users to use the
Internet wherever they want through
smartphones and mobile apps.
c. The IMMERSIVE INTERNET includes virtual
reality, augmented reality, and 3-D
environments.
d. The INTERNET OF THINGS includes
technology that enables ordinary objects to
be connected to the Internet. (ex: Google
Home or Amazon Echo)
E. WHO’S THE “BOSS” OF THE INTERNET?
1. For years, the U.S. Commerce Department
controlled the root server for the domain name
system.
2. In 2016, the U.S. government agreed to give away
remaining ownership in the INTERNET
CORPORATION FOR ASSIGNED NAMES AND
NUMBERS (ICANN), which made the organization
an entirely private entity.
THE FCC’S BIG NET NEUTRALITY DECISION
Over the last few years, net neutrality has appeared as a subject of debate everywhere from Internet
forums to the highest levels of government. As of February 26, 2015, however, the Federal
Communications Commission may have ended the discussion once and for all. On that day, the FCC
voted to classify Internet providers as public utilities, thus preventing them from extending better
service to websites who pay more money. The decision was a victory for the Internet’s many net
neutrality supporters as well as big-time allies like Google and Facebook. Meanwhile, opponents of
the issue in the telecom industry are expected to challenge the FCC’s decision.
The creation of so-called “Internet fast lanes” lies at the heart of the net neutrality debate. Internet
providers have long lobbied for permission to grant higher connection speeds to websites that pay
for the privilege, which subsequently “throttles” the connections of sites that choose to opt out. Net
neutrality activists argue that this would hurt the freedom of the Web since it makes one site’s
content more accessible than another’s. After all, electric companies can’t get away with selling
“premium electricity” to clients who can pay more for it.
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“For most Americans, the Internet has become an essential part of everyday communication and
everyday life,” said President Obama, a sentiment that rings true to many net neutrality supporters.
With so much of the country dependent on Web access, it makes sense for the FCC to be skeptical of
the telecom industry’s intentions over fast lanes and throttling data. Still, just because this initial
decision has been made doesn’t mean the rules are set in stone just yet. Not only will it take months
for the regulations to go into effect, the FCC is also expected to face numerous lawsuits challenging
its decision. Experts expect the rules will stay in place, however, given the immense amount of
public support for net neutrality as well the endorsements of the President and big tech companies.
THE AMAZON ECHO CAUSES FRUSTRATION FOR ACTUAL ALEXAS
Over the 2016 Christmas season, consumers purchased so many Echo speakers from Amazon that
the online retailer ran out by December 20. Of course, the Echo is more than just an ordinary sound
system: the hands-free device is powered by Alexa, Amazon’s artificial intelligence software. All a
user has to do is say “Alexa” and they’ve got their speaker’s attention. Once the device hears this
“wake word,” it can be commanded to play music or even order groceries from Amazon.
For thousands of users, this convenient feature has become an integral part of their home lives.
However, it’s a different story for Echo-owning individuals named Alexa or Alexis. The device is
constantly listening for its wake word, so that means it can’t distinguish between an actual person’s
name and its own. So if someone asks his or her roommate Alexa to grab a soda from the fridge, the
Echo might reply by asking if they want to buy a case of Coca-Cola. While a simple “no” cancels any
demands, sometimes that’s not possible to do. In one instance, a little girl asked the Echo to get her
a dollhouse. Two days later a $150 KidKraft Sparkle Mansion arrived on the doorstep, surprising her
parents who then donated the set to a hospital.
Along with disabling the purchasing feature, Echo users can also change their wake word to
“Amazon” or simply “computer.” Given the company’s heavy promotion of Alexa as a brand, though,
many users don’t know they can stop the Echo from recognizing the word. What’s more, some real-
life Alexas are not pleased to be associated with a talking robot. That’s the case with Alexa Duncan,
who is sick of hearing the question, “Oh, your name is Alexa, like the Amazon thing?” She refuses to
purchase an Echo out of principle. Meanwhile, Amazon is tweaking its advertisements for the device
so that they don’t accidentally awaken any Echos.
LO 13-4
Explain virtual networking, and discuss
the benefits and drawbacks for cloud
computing.
Key Terms:
virtual networking
cloud computing
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Lecture Notes
IV. VIRTUAL NETWORKING AND CLOUD COMPUTING
1. VIRTUAL NETWORKING is a process that allows
software-based computers to run multiple
operating systems and programs, and share
storage.
a. Virtual networking can be either external or
internal.
i. External networking treats the network
as a single pool of resources that can be
accessed regardless of its physical
components.
ii. Internal networking shares the
resources of one central computer.
b. This gives companies ready access to update
system software and fix problems.
2. CLOUD COMPUTING is a form of virtualization in
which a company’s data and applications are stored
at offsite data centers that are accessed over the
Internet (the CLOUD).
a. The data aren’t necessarily stored in a single
data center; portions could be in a series of
centers anywhere.
b. The data are easily accessible from any
computer with an Internet connection.
c. The text uses the example of storing a school
project on a cloud to work on it at multiple
locations.
3. There are THREE TYPES OF CLOUD COMPUTING:
(1) private, (2) public, and (3) hybrid clouds.
4 The ADVANTAGES of cloud computing are:
a. Reduced software costs
b. Improved security
c. Capacity
d. Equipment
e. Access
5. The DISADVANTAGES of cloud computing are:
a. Security breaches
b. Stability
c. Control of data
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LO 13-5
Evaluate the human resource, security,
privacy, and stability issues affected by
information technology.
Key Terms:
virus
cookies
Lecture Notes
V. EFFECTS OF INFORMATION TECHNOLOGY ON MANAGEMENT
A. HUMAN RESOURCE ISSUES
1. Because it replaces many bureaucratic functions,
technology makes the work process more efficient.
a. One challenge for human resource managers
is to RECRUIT EMPLOYEES who know how to
use the new technology or TRAIN those who
already work in the company.
b. Some companies OUTSOURCE technical
training.
2. Mobile employees can work from anywhere
(TELECOMMUTING).
3. ADVANTAGES OF TELECOMMUTING:
a. Telecommuting involves LESS TRAVEL TIME
and costs, and often increases productivity.
b. It helps companies SAVE MONEY by retaining
valuable employees and by tempting
experienced employees out of retirement.
c. Companies can get by with SMALLER, LESS
EXPENSIVE OFFICE SPACE.
d. Telecommuting enables men and women to
stay home with small children and is a boon
for WORKERS WITH DISABILITIES.
e. Telecommunication is most successful among
workers:
i. Who are self-starters
ii. Who don’t have home distractions
iii. Whose work doesn’t require face-to-
face interaction with coworkers
4. DISADVANTAGES OF TELECOMMUTING:
a. Extended long-distance work can give
workers a DISLOCATED FEELING of being left
out of the office loop.
b. Some feel a LOSS OF ENERGY that comes
through social interaction.
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c. Often people working from home don’t know
WHEN TO TURN OFF THE WORK.
d. Some companies are using telecommuting as
a PART-TIME ALTERNATIVE.
e. The industry defines TELECOMMUTING as
working at home a minimum of two days a
week.
5. Electronic communication CAN NEVER REPLACE
HUMAN COMMUNICATION for creating
enthusiasm and esprit de corps.
B. SECURITY ISSUES
1. Smartphones and the networks they run on, social
media, online games, and USB storage devices have
become hackers’ targets.
2. “Secure” information is typically stolen by:
a. Hackers who break into companies’ networks
b. Employees who steal it
c. Companies that lose it through negligence
3. Computer security today is more complicated than
in the past.
a. When information was processed in a
mainframe environment, the SINGLE DATA
CENTER was EASIER TO CONTROL.
b. Today computers are accessible in all areas of
the company and with other companies.
4. A VIRUS is a piece of programming code inserted
into other programming to cause some unexpected
and, for the victim, usually undesirable event.
a. Viruses are spread by DOWNLOADING
INFECTED PROGRAMMING online or by
sharing an infected USB drive.
b. Some can erase data or crash a hard drive.
c. Software programs such as Norton’s AntiVirus
“INOCULATE” the computer so that it doesn’t
catch a known virus.
d. It is important to keep your ANTIVIRUS
PROTECTION PROGRAM UP-TO-DATE and
practice “safe computing.”
5. Even with security protection, HACKERS can still find
ways to steal personal informationmore than 175
million people had critical information stolen in
2017 alone.
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6. Another online security threat is PHISHING, in
which a scammer sends an e-mail with a stolen logo
that makes the message look authentic.
a. Phishers use messages like “account
activation required” to lure users.
b. Recipients who click on the link in the
message are sent to a phony site that tries to
gather personal information.
c. To avoid phishing scans, NEVER ACCESS A
WEBSITE THROUGH A LINK in an e-mail
message.
7. EXISTING LAWS do not address some Internet
issues such as:
a. Copyright and obscenity laws
b. Intellectual property and contract disputes
c. Online sexual and racial harassment
d. Crooked sales schemes
8. RANSOMWARE can hold your data hostage until
you pay the hacker to get it back.
9. After September 11, 2001, security officers are
most concerned about CYBERTERRORISM.
a. An electronic attack on critical computers
could cripple the nation’s infrastructure.
b. During the 2016 U.S. presidential election,
hackers based in Russia breached the digital
defenses of the Democratic National
Committee and stole important information.
10. The Critical Infrastructure Protection Board was
created to IMPROVE THE SECURITY of America’s
critical infrastructure.
a. In order to do this, the agency needs the
cooperation of businesses.
b. However, many CIOs are reluctant to
cooperate and reveal security breaches.
c. To encourage sharing of information,
CONGRESS PASSED THE CRITICAL
INFRASTRUCTURE INFORMATION ACT OF
2002 that makes critical infrastructure
information exempt from disclosure.
C. PRIVACY ISSUES
1. Your E-MAIL is no more private than a postcard.
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a. Many U.S. companies legally scan employee
e-mail regularly.
b. Most e-mail travels in UNENCRYPTED PLAIN
TEXT.
c. Some e-mail systems can ENCRYPT messages
to keep them private.
2. As more and more PERSONAL INFORMATION is
stored in computers, people are able to access
those data legally and illegally, creating a privacy
nightmare.
a. The Internet allows Web surfers to access all
sorts of information about you.
b. Civil libertarians fight to keep certain kinds of
information available to the public.
c. Privacy advocates disagree and argue that the
Internet makes obtaining personal
information too easy.
3. Websites have gotten downright nosy by secretly
TRACKING USERS’ MOVEMENTS online.
a. Web surfers seem willing to swap personal
details for free access to online information.
b. Websites often send COOKIES to your
computer that stay on your hard drive.
c. COOKIES are pieces of information, such as
registration data or user preferences, sent by
a website over the Internet to a Web browser
that the browser software is expected to save
and send back to the server whenever the
user returns to that site.
d. Some contain only your name and password.
e. Others TRACK YOUR MOVEMENTS around
the Web, letting companies blend that
information with their databases and tailor
the ads you receive accordingly.
f. Some software, known as SPYWARE, can be
installed on your computer without your
knowledge and infect your system.
D. STABILITY ISSUES
1. INSTABILITY in technology also has a significant
impact on business.
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2. The text uses the example of Hershey and the
disruptions to its Halloween candy delivery caused
by a computer system failure.
3. The blame for such problems is a combination of
computer error, human error, malfunctioning
software, and overly complex systems.
VI. TECHNOLOGY AND YOU
A. It may be occupational suicide to BE COMPUTER
ILLITERATE since most workers come in contact with
computers to some degree.
B. Information technology eliminates old jobs while creating
new ones.
C. It is up to you to learn the skills you need to be certain
you aren’t left behind.
VII. SUMMARY
CYBERATTACK ON EQUIFAX LEAVES 143 MILLION CONSUMERS
COMPROMISED
In late 2017, the credit reporting company Equifax announced that hackers had breached their
security systems and stolen personal information from 143 million customers. Along with names and
birthdates, the hackers also obtained social security and driver’s license numbers. These pieces of
data are basically gold to identity thieves, allowing them to make purchases, borrow money, and
more all under the victim’s name. “This is about as bad as it gets,” said World Privacy Forum
executive director Pamela Dixon. “If you have a credit report, chances are you may be in this breach.
The chances are much better than 50 percent.
The Equifax hack is even more severe than the 2016 cyberattacks on Yahoo that left more than 500