Computers in Business and Industry

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. Moving Into the Information Age • Humankind has experienced three major shifts relating to the world of work • The Agricultural Revolution • Farmers learned to produce crops more efficiently • The Industrial Revolution • Industries became more productive through automation, mechanization, and electricity • The Information Revolution • Businesses use information to provide core services or produce, process, and provide information as their main product

5. 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

6. BMW CAD System

7. 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

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

9. Industrial Robots • Computer-controlled robots perform work that might be hazardous to people

10. Computers In 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

11. Bar Code Scanner

12. 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

13. Inventory Control Systems • Obtains information directly from POS • Provides a real-time look at the availability of products • Alerts warehouse when reorder points are reached • Hand scanners update inventory when items are stocked • Inventory database can often be accessed by customers over the Web • Inventory is updated when customer reserves a product for pickup

15. 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

17. 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

18. ATM Machines

19. Direct Deposit and ACH • Direct deposit transfer 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

21. 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

22. Smart Card Applications

23. 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

25. Computers In the Office • Technology is an integral part of today’s office • Computers, PDA, 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

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

27. Human Factors and the Workplace • Ergonomics aim 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

28. 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

30. 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

31. Skilling and De-skilling • Skilling side of the debate • Technology increases the skill of some workers by allowing them to learn and utilize constantly changing technology • De-skilling side of the debate • Technology results in the de-skilling of workers due to automation that creates highly rigid jobs with narrow scope • De-skilling fragments tasks to the point where the worker loses sight of the larger purpose of the job

32. Worker Autonomy • Freedom of workers to contribute to the overall goals of a company, as well as their own goals • Technology has both increased and decreased worker autonomy • Factory workers can make production decisions with sophisticated technology on the factory floor • Production-scheduling systems can standardize activities and control worker tasks rigidly • Workers have access to database information to better complete their tasks • Customer service is often outsourced to telecommuters

33. Blurred Boundaries • Technology makes it difficult for people to separate work and home life

34. Employment and Unemployment • 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

35. Conclusion • Technological change is a key part of progress in any society • Agricultural, Industrial, and Information Revolutions • Computers are used in every facet of business and industry today • Factory, retail sales and marketing, banking, and offices • Technology impacts the quality of life in positive and negative ways • Health, autonomy, boundaries • Technology changes existing and emerging jobs