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MANAGING INFORMATION & TECHNOLOGY
E-Commerce: E-commerce refers to the buying and selling of goods and services over the internet. It involves the use of digital technologies such as websites, social media, and mobile applications to conduct online transactions.
Some of the advantages of e-commerce include:
1. Convenience: E-commerce allows customers to shop from the comfort of their own homes, at any time of the day or night. 2. Access to a wider audience: E-commerce websites are accessible to customers all over the world, providing businesses with a global reach. 3. Cost-effective: E-commerce eliminates the need for physical retail space, reducing overhead costs associated with running a traditional brick-and-mortar store. 4. Better customer insights: E-commerce businesses can use data analytics to gain insights into customer behavior, allowing them to personalize marketing and improve customer satisfaction. 5. Increased efficiency: E-commerce enables businesses to automate many of their processes, reducing the need for manual labor and streamlining operations.
Some of the disadvantages of e-commerce include:
1. Security concerns: E-commerce transactions involve the sharing of sensitive personal and financial information, making them vulnerable to hacking and fraud. 2. Lack of tangibility: Customers cannot physically touch or try out products before making a purchase, which may deter some from making a purchase. 3. Shipping issues: E-commerce businesses must deal with the logistical challenges of shipping products to customers, which can be costly and time-consuming. 4. Dependence on technology: E-commerce businesses rely heavily on technology, making them vulnerable to technological failures and disruptions. 5. Competition: E-commerce has led to increased competition, with many businesses now offering similar products and services online, making it harder for businesses to differentiate themselves and stand out in the crowded online marketplace.
Data Warehousing and Data Mining:
Almost everything you do leaves a trail of information about you. Your preferences in movie rentals, television viewing, online searches, and grocery buying; your phone calls, your credit card charges, your financial status; and personal information about your age, gender, marital status, and even your health are just a few of the items about each of us that are stored in scattered databases. The collection, storage, and retrieval of such data in electronic files is called data warehousing. For managers, the data warehouse can be a gold mine of information about their business. Indeed, Kroger Co., the Ohio-based grocery chain, collects data on customer shopping habits to find ways to gain greater customer loyalty. Data Mining After collecting information, managers use data mining, the application of advanced statistical analyses and electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information. Data mining helps managers plan for new products, set prices, and identify trends and shopping patterns. By analyzing what consumers actually do, businesses can determine what subsequent purchases they are likely to make and then send them tailor-made ads.
Some Definitions: Information system (IS) system that uses IT resources to convert data into information and to collect, process, and transmit that information for use in decision making Data raw facts and figures that, by themselves, may not have much meaning. Information meaningful, useful interpretation of data.
Risks associated with IT:
Information technology (IT) poses various threats and risks to businesses, including: 1. Cyberattacks: Cyberattacks such as hacking, malware, ransomware, and phishing can compromise sensitive business data, disrupt operations, and lead to financial losses. 2. Data breaches/Data Theft: Data breaches can result in the loss or theft of sensitive customer data, which can lead to reputational damage, legal liability, and financial penalties. 3. Identity Theft unauthorized use of personal information (such as Social Security number and address) to get loans, credit cards, or other monetary benefits by impersonating the victim. 4. Intellectual Property Theft 5. Scams and Spyware 6. System failures: IT systems can fail due to hardware or software errors, power outages, or natural disasters, leading to downtime, lost productivity, and potential financial losses. 7. Employee errors: Employee errors such as accidentally deleting data or falling for phishing scams can also compromise business data and systems. To prevent these risks, businesses can implement the following measures: 1. Develop a comprehensive IT security strategy: Businesses should develop and implement a comprehensive IT security strategy that includes policies, procedures, and controls to protect against cyber threats and data breaches. 2. Train employees: Businesses should provide regular training to employees on IT security best practices, such as how to recognize and avoid phishing scams, and how to use technology safely and securely. 3. Use antivirus and antimalware software: Businesses should install and regularly update antivirus and antimalware software to protect against malware and other cyber threats. 4. Back up data regularly: Businesses should regularly back up important data to protect against data loss due to system failures or cyberattacks. 5. Implement access controls: Businesses should implement access controls, such as passwords, two-factor authentication, and role-based access, to restrict access to sensitive data and systems. 6. Conduct regular security audits: Businesses should conduct regular security audits to identify and address vulnerabilities and ensure compliance with IT security policies and regulations. 7. Use of Firewall security system - Systems with special software or hardware devices designed to keep computers safe from hackers. Some organizations outsource the IT services and data management. This reduces the cost for them, however it may result in data leakage, data theft and poor quality of data management.
