Chapter 1

1. Chapter 1 Computers in Business and Industry

2. Introduction • Computer technology has changed every aspect of business and industry • In the factory • In retail sales and marketing • In banking • In the office • Computers have also impacted the health and quality of life of individuals • Technology will change the economy and employment in the future

3. Socio-Economic Revolutions • The Agricultural Revolution (c. 12,000 BP) Farmers learned to produce crops more efficiently • The Industrial Revolution (c. 1750) Industries became more productive through automation, mechanization, and electricity • The Information Revolution (c. 1950) Businesses use information to provide core services or produce, process, and provide information as their main product

4. Computers In the Factory • Computer-aided design (CAD) Uses a computer and special software to assist in product design • Computer-aided engineering (CAE) Uses computers to test product designs • Computer-aided manufacturing (CAM) Uses computers to direct machines that produce and assemble a product • Computer-integrated manufacturing (CIM) Combines CAD, CAE, and CAM into one system

5. Manufacturing Resource Planning (MRP) Systems • Job-scheduling system Helps decide when to initiate production based on supplies and customer demand • Inventory control system Tracks and matches current inventory supplies against anticipated future orders to ensure component availability • Just-in-time manufacturing Lets manufacturers acquire components just before they are needed on the assembly line

6. Manufacturing Resource Planning (MRP) Systems, cont. Warehouse management system (WMS) Tracks items received, generates pick lists, labels packages, tracks customer receipt

7. Retail Sales and Marketing Point-of-sale (POS) systems record purchases, process credit or debit cards, and update inventory • A bar code scanner reads the bar code on a product with a laser beam • Bar codes consist of the manufacturer and item name • The computer retrieves the price and product information from the database • The inventory is updated • The output from POS can be used as input into other inventory, processing, and accounting systems

8. Payment Processing and Credit Authorization • POS connects to a payment-processing service to initiate credit card authorization • An acquirer approves or denies credit card requests

9. Marketing and Sales • Database marketing allows companies to mine customer databases and create marketing lists • Customers can share preferences for future use • Companies determine user preferences based on past buying behavior • Consumers may receive spam from companies who share user information • Customer can opt-in to receive mail only when requested • Customer can opt-out to instruct the company not to share information

10. Computers In Banking • Electronic funds transfer (EFT) allows users connected to a network to transfer money from one bank account to another All electronic transactions use EFT • Automated teller machines (ATMs) are self-service banking machines • Connects to a bank’s database through a host processor, which routes the transaction • The user inputs a PIN number to verify the holder of the bankcard • PIN numbers are encrypted for security

11. Direct Deposit and ACH • Direct deposit transfers funds electronically to a bank in order for a company to deposit funds into a specified account • Eliminates paychecks for payer • Saves trips to the bank or ATM for payee • An automated clearing house (ACH) sorts automated payment instructions to transfer funds ACH network acts as the central clearing facility for all EFT transactions

12. Smart Credit Cards • Stores data on an embedded microprocessor • Updates data instantaneously • Used for a wide range of applications • Originally used as stored value cards for pay phones • Used by train commuters in Tokyo • Can be contact or contactless • Contact cards connect metallic pads with the reader’s metallic pins • Contactless cards use a radio frequency to transfer information between the card and reader

13. Online Banking • Brick-and-click businesses offer online banking in addition to services at a physical location • Cyberbanks offer products and services solely on the Internet • Online banks use sophisticated security technologies • A bill payment service allows customers to log on to a Web site and pay bills to vendors • Bill presentment is the process of sending bills electronically

14. Computers In the Office • Computers, PDAs, networked printers, fax machines, e-mail, cell phones • Documents are stored on disk instead of paper • Companies have corporate intranets to process online forms • PDF (Portable Document Format) files are used to preserve formatting across a variety of platforms in a network or on the Internet • Paper is still used for easier reading

15. Telecommuting A work arrangement in which employees work away from the office and communicate with the office using technology

16. Human Factors in the Workplace Ergonomics aims to incorporate comfort, efficiency, and safety into the design of items in the workplace • Use an adjustable height chair with 4 to 5 legs • A work area of 2 feet by feet is recommended • Set the monitor viewing distance to 18 to 28 inches • Avoid glare on the screen • Keep arms and wrists parallel to the floor • Place feet flat on floor or stable footrest • Center monitor and keyboard in front of you

17. RSI and CVS • A repetitive stress injury (RSI) is caused when muscle groups complete the same repetitive actions over and over again • Keyboards and mice are major sources of RSIs • Symptoms include stiffness or burning of hands, loss of strength in hands, and pain in the upper back, shoulders, and back • Computer Vision Syndrome (CVS) is caused by screen glare, improper lighting, and monitor settings hard on the eyes Symptoms include eyestrain, dry or burning eyes, increased sensitivity to light, blurred vision, headache, and pain in the shoulders, neck, or back

18. Employee Monitoring • Involves the use of computers to observe, record, and review an employee’s use of a computer • E-mail messages inside and outside the company • Web sites visited by employee • Time spent away from the computer • Keystrokes performed per hour • Employee monitoring is legal! • Employers use monitoring to ensure network security and manage productivity

19. Employment Issues • Technological change has displaced workers • U.S. Department of Labor projects that 8 out of the 10 fastest growing jobs between now and 2010 will be computer related • Wages will continue to fall for those not working in technology-rich jobs Under-skilled workers are forced to accept underpaid jobs • The gap between those with access to computers and those without is referred to as the digital divide