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Chapter 1-5

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Department
Management (MGT)
Course
MGTA02H3
Professor
Chris Bovaird
Semester
Winter

Description
CHAPTER 1: PRODUCING GOODS AND SERVICES -service operations: production activities that yield intangible services -goods production: production activities that yield tangible products WHAT DOES “PRODUCTION” MEAN TODAY? -production historically referred to the making of physical goods, now it also means services -service-sector managers focus less on equipment and technology than on the human element in operations -b/c success or failure may depend on provider-customer contact -today, customers are increasingly involved in all kinds of production b/c electronic communications are key components in winning and keeping customers in huge range of competitive industries The Growth of Global Operations -smoke, grease, and danger have been replaced by high-tech machines -production operations have also become much more environmentally friendly -new technologies allow machines to run more cleanly, quickly, and safely and to operate on a global scale -w/ internet, producers of both services and goods are integrating their production activities with those of far-off suppliers and customers CREATING VALUE THROUGH PRODUCTION -products provide businesses with both economic results (wages, profits, good purchased from other companies) and non-economic results (new technology, innovations, pollution) -term production has been replaced recently by operations (reflects services and goods) -operations (production management): systematic direction and control of the processes that transform resources into finished goods and services -thus, production managers are ultimately responsible for creating utility for customers -production managers: managers responsible for ensuring that operations processes create value and provide benefits; bring raw materials, equipment, and labour together under a production plan that effectively uses all resources available in the production facility -as demand for good increases, they must schedule and control work to produce the amount required -must control costs, quality levels, inventory, and plant and equipment Operations Processes -operations process: set of methods and technologies used in the production of good or service -we can describe good according to kind of transformation technology they require or according to whether their operations process combines resources or breaks them into component parts -we can describe services according to extent of customer contact Goods-Producing Processes -all good-manufacturing processes can be classified in 2 diff ways: 1) Types of Transformation Technology that transforms raw materials into finished goods -following types of transformation processes used by manufacturers -in chemical processes, raw materials are chemically altered -in fabrication processes, mechanically alter basic shape or form of product -assembly processes put together various components -in transport processes, goods acquire place utility by being moved from one location to another (ex. Trucks routinely move bikes from manufacturing plants to consumers) -clerical processes transform information (combining data on employee absences and machine breakdowns) 2) Analytic Versus Synthetic Processes -way in which resources are converted into finished goods -analytic process breaks down basic resources into components -synthetic process combines number of raw materials to produce a finished product such as fertilizer or paint Service-Producing Processes -services are classified according to extent of customer contact High-Contact Processes: system in which the service can’t be provided with-out the customer being physically in the system (ex. Public transport) -managers must worry about cleanliness of trains and buses and appearance of stations Low-Contact Processes: system in which the service can be provided w/out the customer being physically in the system (ex. Auto repair shops) Differences Between Service and Manufacturing Operations -service and manufacturing operations both transform raw materials into finished products -in service, raw materials, or inputs aren’t glass or steel but are ppl who choose among sellers b/c they’ve either unsatisfied needs or possessions for which they require some form of care -“finished products” or “outputs” are ppl with needs met and possessions serviced Focus on Performance -goods are produced, services are performed -customer-oriented performance is key factor in measuring the effectiveness of a service company -focus of service operations is more complex than that of goods production -1 , service operations feature a unique link b/w production and consumption—b/w process anndoutcome -2 , services are more intangible and more customized and less storable than most products -3 , quality considerations must be defined, and managed, diffly in service sector than in manufacturing operations Focus on Process and Outcome -manufacturing operations focus on outcome of production process -products offered by most service operations are actually combinations of goods and services -services must focus on both transformation process and its outcome (making and delivering) -service operations require diff skills from manufacturing operations Focus on Service Characteristics -service products are characterized by 3 key qualities 1) Intangibility -services can’t be touched, tasted, smelled, or seen -important value is the intangible value that the customer experiences in the form of pleasure, satisfaction, or feeling of safety -although all services have some degree of intangibility, some provide tangible elements as well (copy of will) 2) Customization -you expect services to be designed for your needs (ie. haircut); services are customized 3) Unstorability -if a service isn’t used when it’s available, it’s usually wasted -services are typically characterized by high degree of unstorability Focus on the Customer-Service Link -service operations often acknowledge customer as part of the operations process itself -ex. You must go to the salon to purchase a haircut -service consumers have unique ability to affect that process (you expect cleanliness) -manager adopts hours of operations, available services and number of employees to meet requirements of customer Focus on Service Quality Considerations -quality of work and quality of service aren’t necessarily synonymous -consumers use diff criteria to judge services and goods OPERATIONS PLANNING -managers start with planning -managers from many departments contribute to firm’s decisions about operations management -no matter how many decision makers are involved, process can be described as series of logical steps -success of any firm depends on final result of this logical sequence of decisions -business plan and forecasts developed by top managers guide operations planning -business plan outlines goals & objectives, including specific goods & services that firm will offer -managers develop a long-range production plan through forecasts -forecast: estimates of future demand for both new and existing products -production plan covers a 2-5 year period and it specifies the # of plants or service facilities and amount of labour, equipment, transportation and storage that’ll be needed to meet demand -also specifies how resources will be obtained -planning activities fall into 1 of 5 categories: 1) Capacity Planning -capacity: amount of a good that a firm can produce under normal working conditions -depends on how many ppl it employs and # and size of its facilities -long range planning must take into account both current and future capacity Capacity Planning for Producing Goods -means ensuring that a manufacturing firm’s capacity slightly exceeds the normal demand for its product -if capacity is too small to meet demand, company must turn away customers -cuts into profits but also alienates customers and salespeople -if capacity greatly exceeds demand, firm’s wasting money by maintaining a plant that’s too large by keeping excess machinery online or by employing too many workers -while expanding fast enough to meet future demand and to protect market share from competitors, it must also weight increased costs of expanding Capacity Planning for Producing Services -in low-contact processes, maintaining inventory allows managers to set capacity at level of average demand -when daily orders exceed this average demand, some orders are placed in inventory -in high-contact processes, managers must plan capacity to meet peak demand 2) Location Planning -location of a factory, office or store affects its production costs and flexibility, sound location planning is crucial -depending on site, company may be capable of producing a low-cost product or may find itself at an extreme cost disadvantage relative to its competitors Location Planning for Producing Goods -location decisions are influenced by proximity to raw materials and markets, availability of labour, energy and transportation costs, local and provincial regulations and taxes and community living conditions -rise of industrial parks—created by cities interested in attracting new industry Location Planning for Producing Services -in planning low-contact services, they can be located near resource supplies, labour, customers, or transportation outlets -high-contact services are more restricted…they must locate near the customers who are part of the system 3) Layout Planning -layout of machinery, equipment, and supplies determines whether a company can respond quickly and efficiently to customer requests for more and diff products or finds itself unable to match competitors’ production speed or convenience of service Layout Planning for Producing Goods -in facilities that produce goods, layout must be planned for 3 diff types of space 1) Productive facilities: workstations and equipment for transforming raw materials 2) Non-Productive facilities: storage and maintenance areas 3) Support facilities: offices, restrooms, parking lots, cafeterias, etc. Process Layouts: way of organizing production activities such that equipment and ppl are grouped together according to their function -various tasks are each performed in specialized locations Cellular Layouts: used to produce goods when families of products can follow similar flow paths -ex. A clothing manufacturer may establish a cell/designated area to making family of pockets -all pockets pass stage by stage through cell from beginning to end, in nearly continuous flow -in plants that produce variety of products, there may be 1 or 2 high-volume products that justify separate manufacturing cells -cellular layouts have several advantages -similar products require less machine adjustment, equipment set-up time in cell is reduced, as compared with set-up times in process layouts -flow distances usually shorter, so less material handling and transit time -inventories of goods in progress are lower and paperwork is simpler b/c material flows are more orderly -disadvantage: duplication of equipment Product Layouts: way of organizing production activities such that equipment and ppl are set up to produce only one type of good in a fixed sequence of steps -efficient for producing large volumes of product quickly and often use assembly lines -assembly line: type of product layout in which a partially finished product moves through a plant on a conveyor belt or other equipment -product layouts efficient b/c the work skill is built into the equipment; simplified work tasks can then use unskilled labour -product layouts tend to be inflexible b/c they’ve required heavy investment in specialized equipment that’s hard to rearrange for new applications -also, workers are subject to boredom and when someone is absent or overworked, those farther down line can’t help out Layout Planning for Producing Services -in low-contact system, facility should be arranged to enhance the production of service -high-contact systems should be arranged to meet customer needs and expectations 4) Quality Planning -managers must keep in mind the firm’s quality goals thus any complete production plan includes systems for ensuring that goods are produced to meet firm’s quality standards 5) Methods Planning -managers must clearly identify every production step and specific methods for performing them -can then work to reduce waste, inefficiency, and poor performance by examining procedures on a step-by-step basis—sometimes called methods improvement Methods Improvement in Goods -improvement of production for goods begins when a manager documents the current method -detailed description, often using diagram called process flow chart is usually helpful for organizing and recording all info -process flow chart identifies sequence of production activities, movements of materials, and work performed at each stage as product flows through production -flow can be analyzed to identify wasteful activities, sources of delay in production flows and other inefficiencies -final step is implementing improvements Methods Improvement in Services -in low-contact process, managers can use methods improvements to speed services -methods analysis eliminates unnecessary steps so that orders can be processed quickly for production and delivery Service Flow Analysis: shows the process flows that are necessary to provide a service to customers; it allows managers to determine which processes are necessary -analysis helps identify and isolate potential problems (known as fail points) Designing to Control Employee Discretion in Services -in some cases, purpose of service design is to limit range of activities of both employees and customers -by careful planning, managers can make services more customer oriented b/c they can ensure product consistency Design for Customer Contact in Services -in high-contact service, demands on system designs are somewhat different -managers must develop procedures that clearly spell out ways in which workers interact with customers (ie. dentist scrubbing consistently to avoid contact that can transmit disease) OPERATIONS SCHEDULING -managers must develop timetables for acquiring resources for production—scheduling Scheduling Goods Operations -scheduling of goods production occurs on diff levels w/in firm -1 , a top-level or master production schedule shows which products will be produced, when production will occur, and what resources will be used during specified time periods -short-term detailed schedules use incoming customer orders and info about current machine conditions to update sizes and variety to make each day Scheduling Service Operations -service scheduling may involve both work and workers -in low-contact service, work scheduling may be based either on desired completion dates or on time of order arrivals (making appointments) -in high-contact services, customer is part of system and must be accommodated (first come, first serve basis) -in scheduling workers, managers must also consider efficiency and costs Tools for Scheduling -special projects, renovations, relocations often require close coordination and precise timing Gantt Charts: production schedule diagramming the steps in a project and specifying the time required for each -manager monitors progress of project against chart -if ahead of schedule, some workers may be shifted to another project -if behind schedule, workers may be added or completion delayed PERT Charts: production schedule specifying the sequence and critical path for performing the steps in a project (breaks down into steps) -Program Evaluation and Review Technique -useful for customized projects in which numerous activities must be coordinated -unlike Gantt, PERT shows necessary sequence of activities and identifies critical path for meeting project goals -no activity along the critical path can be started until all preceding activities are done -chart also identifies activities that will cause delays unless special action is taken at right time -by reassigning workers and equipment, managers can speed up potentially late activities and keep on schedule OPERATIONS CONTROL -operations control must occur once long-range plans have been put into action and schedules have been drawn up -operations control: managers monitor production performance by comparing results with detailed plans and schedules -if schedules or quality standards aren’t met, managers must take corrective action -follow-up: checking to ensure that production decisions are being implemented -an essential and ongoing facet of operations control -operations control features materials management and production process -both ensure that schedules are met and that production goals are fulfilled both in quantity and in quality Materials Management -goods-producing and service companies use materials -for many manufacturing firms, material costs account for 50-75% of total product costs -for goods whose production uses little labour, this % is even higher -materials management: planning, organizing, and controlling the flow of materials from purchase through distribution of finished goods (aka logistics) -even before production starts, materials management focuses on product design by emphasizing materials standardization -standardization: using standard and uniform components in the production process -simplifies paperwork, reduces storage requirements, eliminates unnecessary material flows -once product designed, materials managers purchase necessary materials and monitor the production process through the distribution of finished goods -4 major areas in materials management 1) Transportation: means of transporting resources to company and finished goods to buyers 2) Warehousing: storage of both incoming materials for production and finished goods for physical distribution to customers 3) Inventory control: includes receiving, storing, handling, and counting of all raw materials, partly finished goods and finished goods -ensure that enough materials inventories are available to meet production schedules 4) Purchasing: acquisition of all the raw materials and services that a company needs to produce its product Purchasing Processes -most companies have purchasing departments to buy proper materials in required amounts -purchasing departments practiced forward buying—bought quantities of materials large enough to fill long-term needs (quantity discounts) -holding costs: costs of keeping extra supplies or inventory on hand -opportunity costs—additional earning that company must pass up b/c funds are tied up in inventory -today, many purchasing departments have opted for hand-to-mouth pattern—placing small orders frequently -lead times: gap b/w customer’s placement of an order and seller’s shipment of merchandise Supplier Selection: finding and determining suppliers to buy from; has 4 stages: 1) Investigating possible suppliers 2) Evaluating and isolating the best candidates 3) Negotiating terms of service with a final choice 4) Maintaining a positive buyer-seller relationship -maintaining multiple supplier relationships is expensive; takes time to build good relationships -fewer suppliers mean stronger, mutually dependent purchaser-supplier relationships -today, most purchasers try to reduce their number of suppliers Tools for Operations Process Control -worker training, just-in-time production systems, material requirements planning, and quality control Worker Training -customer satisfaction is closely linked to employees who provide the service -human relations skills are vital in anyone who has contact with the public Just-in-Time Production Systems (JIT) -JIT: method of inventory control in which materials are acquired and put into production just as they’re needed -all resources are continuously flowing -JIT reduces to practically nothing the number of goods in process (goods not yet finished) and saves money by replacing stop-and-go production with smooth movement -once smooth movements become norm, disruptions become more visible and thus are resolved more quickly -finding and eliminating disruptions by continuous improvement of production is major objective of JIT -JIT can cause unexpected problems; ordering of supplies has become much more last-min -this makes supply systems more volatile and has been one of reasons why economic indicators like capital goods orders have been swinging so wildly -makes it hard to know what shape overall economy is in -more uncertainty there is about economy, the less investor enthusiasm there is CHAPTER 2: INCREASING PRODUCTIVITY AND QUALITY THE PRODUCTIVITY-QUALITY CONNECTION -productivity: measure of efficiency that compares how much is produced w/ resources used to produce it; measure of economic performance -more we’re able to produce the right things while using fewer resources, the more productivity grows and everyone benefits -productivity considers both amounts and quality of what’s produced -by using resources more efficiently, quantity of output will be greater -unless resulting goods and services are of satisfactory quality, consumers won’t want them -quality: a product’s fitness for use in terms of offering the features that consumers want Responding to the Productivity Challenge -more productive country is more wealthy -quality defined in terms of value to customer so companies must design marketing efforts to cultivate a more customer-oriented focus -as quality-improvement practices are implemented, more and more firms will receive payoffs from these efforts -4 factors interact in this process: customers, quality, productivity, and profits Measuring Productivity -labour productivity: partial productivity calculated by dividing GDP by total # of workers -focus on labour rather than on other resources is preferred b/c more countries keep accurate records on employment and hours worked -Canadian producers that had foreign units were just as productive as foreign-owned plants -seems that firms that compete internationally have more incentive to be more productive Productivity Among Global Competitors -over long-term (1979-2004), annual increases in Canadian productivity (2.6%) were less than annual productivity increases in other countries such as US, Sweden, and Taiwan -diffs in nations due to many factors: technologies, human skills, economic policies, natural resources and even in traditions -according to Michael Porter, Canada’s competitiveness is a concern b/c we’ve been living off our rich diet of natural resources -Canada will have to start emphasizing innovation and develop a more sophisticated mix of products if it hopes to be successful in international markets -Porter criticizes Canadian business, gov’t and labour for failing to abandon outdated ways of thinking regarding productivity and innovation Domestic Productivity -a country that improves its ability to make something out of its existing resources can increase wealth of all its inhabitants -decline in productivity shrinks a nation’s total wealth -when this happens, an increase in 1 person’s wealth comes only at expense of others w/ whom he/she shares an economic system Manufacturing Versus Service Productivity -manufacturing productivity is higher than service productivity -“Baumol’s disease”: since service sector focused more on hands-on activity that machines couldn’t replace, it would be more difficult to increase productivity in services -productivity gains starting to appear among wide array of service providers such as airlines, pet stores, package delivery companies, banks, etc. -they’ve increased their productivity by becoming more like factories, and use modern info technology to eliminate inefficiencies Industry Productivity -agriculture more productive in Canada than in many other nations b/c we use more sophisticated technology and superior natural resources -technological advances have also given computer industry a productivity edge in many areas -productivity of specific industries concerns many ppl for diff reasons -labour unions need to take it into account in negotiating contracts since highly productive industries can give raises more easily than less productive ones -investors and suppliers consider industry productivity when making loans, buying securities, and planning their own future production Company Productivity -high productivity gives a company a competitive edge b/c its costs are lower -therefore, it can offer its product at lower price and gain more customers or it can make greater profit on each item sold -increased productivity also allows companies to pay workers higher wages w/out raising prices TOTAL QUALITY MANAGEMENT -no longer enough for businesses to simply measure productivity in terms of number of items produced…they must also take quality into account -Japanese focused on quality and succeeded -quality advocates (Joseph Juran and Kaoru Ishikawa) introduced methods and tools for implementing quality -Juran’s “quality trilogy”—quality planning, quality control, and quality improvement -they championed idea of company-wide employee participation -they developed quality tools for day-to-day work activities b/c they knew that w/out employee participation, real quality improvement would never happen -“fishbone diagrams” aka “cause-and-effect diagrams” or “Ishikawa diagrams” help teams of employees investigate and track down causes of quality problems in their work areas Managing for Quality -top quality management (TQM): sometimes called quality assurance; includes all activities necessary for getting high-quality goods and services into marketplace -must consider all parts of business including customers, suppliers and employees -emphasizes that no defects are tolerable and that employees are responsible for maintaining quality standards -strategic approach to TQM begins w/ leadership and desire for TQM -involves getting people’s attention, getting them to think in entirely new way about what they do, and then getting them to improve both processes and products -customer focus is starting point; companies must develop methods for determining what customers want and then direct all their resources toward fulfillment of those needs to gain greater customer satisfaction -total participation is mandatory -TQM in today’s competitive markets demands unending and continuous improvement of products, after-sales services and all of the company’s internal processes such as accounting, delivery, billing and info flow -TQM involves planning, organizing, directing, and controlling -successful TQM requires high level of commitment from all members of organization Planning for Quality -planning should begin before products are designed or redesigned -managers need to set goals for both quality levels and quality reliability in beginning -performance quality: overall degree of quality; how well the features of a product meet consumers’ needs and how well the product performs -performance quality may/may not be related to quality reliability in a product -quality reliability: consistency or repeatability of performance Organizing for Quality -old idea of separate “quality control” department is no longer enough…everyone must work to ensure quality -although everyone in a company contributes to product quality, responsibility for specific aspects of total quality management is often assigned to specific departments and jobs Leading for Quality -leading for quality means that managers must inspire and motivate employees throughout company to achieve quality goals -they need to help employees see how they affect quality and how quality affects their jobs and their company -leaders must continually find ways to foster a quality orientation by training employees, encouraging their involvement, and tying wages to quality of work -if managers succeed, employees will ultimately accept quality ownership -quality ownership: idea that quality belongs to each employee who creates or destroys it in producing a good or service; idea that all workers must take responsibility for producing a quality products Controlling for Quality -by monitoring its products and services, a company can detect mistakes and make corrections -but first, managers must establish specific quality standards and measurements Process Re-engineering -every business consists of processes—activities that it performs regularly and routinely in conducting business -any business process can add value and customer satisfaction by performing processes well -opposite can happen too by managing poorly -business process re-engineering: redesigning of business processes to improve performance, quality and productivity; rethinking each step of an organization’s operations by starting from scratch -re-engineering is fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in measures of performance, such as cost, quality, service & speed The Re-engineering Process -6 steps; fig 2.3 1) statement of benefits envisioned for customers and company 2) identify the business activity that’ll be changed 3) evaluate info and human resources to see if they can meet the requirements for change 4) diagnose the current process to identify its strengths and weaknesses 5) create the new process design 6) implement the new design -bottom line in this process is adopting a company-wide, customer-first philosophy -redesign is guided by desire to improve operations so that goods and services are produced at lowest possible cost and at highest value for customer Adding Value Through Supply Chains -company belongs to network of firms that must coordinate their activities -supply chain refers to group of companies and stream of activities that work together to create a product -supply chain: flow of info, materials & services that starts w/ raw materials suppliers & continues through other stages in operations process until product reaches the end customer -each stage adds value for final customer -each stage depends on others for success in getting product to customer -first step is usually product design or raw materials The Supply Chain Strategy -traditional strategies assume that companies are managed as individual firms rather than as members of a coordinated supply system -supply chain strategy is based on idea that member of chain, working as a coordinated unit, will gain competitive advantage -each company looks out for its own interests but works closely w/ suppliers and customers throughout chain -everyone focuses on entire chain of relationships rather than on just next stage in chain -supply chain management can improve performance and as result, provide higher quality at lower prices Supply Chain Management -supply chain management (SCM): principle of looking at chain as whole to improve overall flow through system -b/c customers ultimately get better value, SCM gains competitive advantage for each supply- chain member -smooth flow of accurate info along chain reduces unwanted inventories, avoids delays and cuts supply times, materials move faster to business customers and individual consumers -efficiency of SCM means faster deliveries and lower costs than customers could get if each member acted only according to its own operations requirement Re-engineering Supply Chains for Better Results -by lowering costs, speeding up service, or coordinating flows of info and materials, process improvements and re-engineering often improve supply chains CHAPTER 3: MANAGING INFORMATION SYSTEMS AND COMMUNICATION TECHNOLOGY INFORMATION MANAGEMENT: AN OVERVIEW -most businesses regard their info as a private resource—an asset that they plan, develop, and protect -information manager: manager responsible for the activities needed to generate, analyze, and disseminate info that a company needs to make good decisions -information management: an internal operation that arranges the firm’s info resources to support business performance and outcomes -question that faces many businesses today is how to get useful info to right ppl at right time Data Vs. Information -data: raw facts and figures -information: meaningful, useful interpretation of data -challenge for businesses is to turn a flood of data into info and to manage that info to their best advantage Information Systems -information system (IS): an organized method of transforming data into info that can be used for decision making -IS managers must first determine what info is needed -then gather the data and apply the technology to convert data into info -they must control flow of info so that it goes only to those ppl who need it -supplied info varies according to such factors as the functional areas in which ppl work and their management levels -at all levels, informational quality depends on an organization’s technological resources and on the ppl who manage them NEW BUSINESS TECHNOLOGIES IN THE INFORMATION AGE -employees at every level in organization use IS’s to improve performance -widening role of IS results from rapid developments in electronic technologies that allow faster and broader flows of info and communications The Expanding Scope of Information Systems -relationship b/w IS’s and organizations is among the fastest-changing aspects of business today -once, IS applications were narrow in scope and technically focused but now it’s also used to analyze management problems, especially for control purposes -today, IS’s are crucial in planning -same database that helps marketing analyze demographics for millions of customers is also used for such higher-level applications -another change: increased interdependence b/w a company’s business strategy and its IS -today, choice of a business strategy, requires an info system that can support that strategy -to effectively support a strategy, the system’s software, hardware, and other components must be integrated Electronic Business and Communications Technologies -pressures to maintain better communications and IS’s are increasing as competition intensifies and as organizations expand into global and ebusiness operations -new electronic info technologies and more advanced data communication networks are meeting the needs of companies Electronic Information Technologies (EIT): IS applications based on telecommunications technologies -networks of appliances or devices (cells, computers) to communicate info by electronic means -enhance performance & productivity of general business activities by performing 2 functions: 1) Providing coordination and communication w/in firm 2) Speeding up transactions with other firms -6 most widely used innovations in today’s digital business systems: 1) fax machine: machine that can quickly transmit a copy of documents or graphics over telephone lines; popular w/ large and small firms b/c of speed and low cost 2) voicemail: a computer-based system for receiving and delivering incoming telephone calls 3) electronic mail (email) system: electronic transmission of letters, reports, and other info b/w computers; also used for voice transmission and for sending graphics and videos -substitutes for flood of paper and phone calls that threatens to engulf many offices 4) electronic conferencing: allows ppl to communicate simultaneously from diff locations via phone, video, or email group software -increasingly popular b/c it eliminates travel and thus saves money -it’s also increasingly accessible and speeds up info flows -data conferencing allows ppl in remote locations to work simultaneously on same document -videoconferencing allows participants to see one another on video screen while teleconference is in progress 5) groupware: system that allows 2 or more individuals to communicate electronically b/w desktop PC’s -useful when members work together regularly and rely on intensive info sharing 6) commercial digital information services provide online info for both special-purpose and general topics -info from outside a company can be linked to its electronic network, and the info can be made available at every workstation Data Communication Networks: global networks that permit users to send electronic messages quickly and economically on telecommunication systems -most prominent network; the internet and its companion system, the World Wide Web The Internet-a gigantic network of networks that serves millions of computers, offers info on business, science, and government and provides communication flows among more than 170, 000 separate networks around the world -it allows personal computers in virtually any location to be linked together -gained in popularity b/c it’s an efficient tool for info retrieval that makes available an immense wealth of academic, technical and business info -has become most important email system in world b/c it’s quick and cheap -internet service provider (ISP): commercial firm that maintains a permanent connection to the internet and sells temporary connections to subscribers -most intensive internet usage is in Malaysia; 30% of country’s population is online The World Wide Web-a system that universally accepted standards for storing, retrieving, formatting and displaying info on the internet -provides the “common language” that enables us to “surf” the internet and makes the internet available to a general audience -to access a website, user must specify the Uniform Resource Locator (URL) that points to the resource’s unique address on the web -each website opens with a home page—a screen display that welcomes the visitor with a greeting that may include graphics, sound, and visual enhancements introducing user to site -additional pages provide details on sponsor’s products and explain how to contact help in using the site -person responsible for maintaining an organization’s website is usually called a webmaster -web servers: dedicated workstations—large computers—that are customized for managing, maintaining, and supporting websites (used by large websites) -browser: software that enables a user to access info on the web -runs on the user’s PC and supports the graphics and linking capabilities needed to navigate the web -web browser offers additional tools—website directories and search engines—for navigating the web -directories: features that help ppl find the content they want on the web; user types in key words and the directory retrieves list of websites with titles containing those words -search engine: software for searching webpages that doesn’t pre-classify them into a directory Intranets-a company’s private network that’s accessible only to employees via entry through electronic firewalls -firewall: hardware and software security systems that ensure that internal computer systems aren’t accessible to outsiders Extranet-network th
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