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Copyright?2015PearsonEducation,Inc. 14-Copyright?2015PearsonEducation,Inc. 14-Chapter14:InformationTechnology(IT)forBusinessChapterOverviewInformationtechnology(IT)hashadatremendousimpactonthebusinessworldinthelastfewyears.ThinkofhowmuchtheInternetaloneaffectsyourlife.Somepeoplefeelcompletely”outoftouch“goingjustonedaywithoutit.Weareconnectedtotheremotestcomersoftheworld.BusinesseshaveavarietyofITresourcesattheirdisposal,andinformationsystemsandhowthesesystemsareusedplayanintegralroleinbusinesses.ThischapterprovidesthelatestdetailsonbusinessIT.ItdiscussestheimpactsIThashadonthebusinessworldandidentifiestheITresourcesbusinesseshaveattheirdisposal.Italsodescribestheroleofinformationsystems,thedifferenttypesofinformationsystems,andhowbusinessesusesuchsystems.Finally,itlooksatthevariousthreatsandrisksITposesforbusinesses,aswellasthewaysinwhichbusinessesprotectthemselvesfromthesethreatsandrisks.EvenifyouareapprehensiveaboutITanditsuses,thischapterwillhelpyoubecomemorefamiliarwithandcomfortablewithIT.LearningObjectivesDiscusstheimpactsinformationtechnologyhashadonthebusinessworld.IdentifytheITresourcesbusinesseshaveattheirdisposalandhowtheseresourcesareused.Describetheroleofinformationsystems,thedifferenttypesofinformationsystems,andhowbusinessesusesuchsystems.Identifythethreatsandrisksinformationtechnologyposesonbusinesses.Describethewaysinwhichbusinessesprotectthemselvesfromthethreatsandrisksinformationtechnologyposes.

LISTOFIN-CLASSACTIVITIES:AUTHOR'SCHOICEActivityDescriptionTimeLimit1.Ice-Breaker:ITDevicesStudentsdiscussvariouswaysinwhichtechnologicaldevicesallowtheclassasawholetocreate,store,exchange,anduseinformation.20min.2.Small-GroupDiscussion:LaidOffCampStudentsexaminehowAmericanscommunicatethroughe-mailandwhatpeoplefromothercountriesmightobserveaboutusaswecontinuetorelymoreontheInternetforcommunicating.30min.3.UpforDebate:IsThatEthical?Studentsaredividedintoteamstodiscusstheethicalissuessurfacingwhenanemployerhastheabilitytoaccessandtrackemployees1computerusage.30min.CHAPTEROUTLINELearningObjective1:Discusstheimpactsinformationtechnologyhashadonthebusinessworld.ITImpactsInformationtechnology(IT)includesthevariousappliancesanddevicesforcreating,storing,exchanging,andusinginformationindiversemodes,includingvisualimages,voice,multimedia,andbusinessdata.E-commerceistheuseoftheInternetandotherelectronicmeansforretailingandbusiness-to-businesstransactions.BusinessesareusingITtobolsterproductivity,improveoperationsandprocesses,createnewopportunities,andcommunicateandworkinwaysnotpossiblebefore.CreatingPortableOfficesTechnologybuiltintovariousdevicesoffersbusinessespowerfultoolsthatsavetimeandtravelexpenses.EnablingBetterServicebyCoordinatingRemoteDeliveriesCompanyactivitiesmaybegeographicallyscattered,butremaincoordinatedthroughanetworkedsystemthatalsoprovidesbetterserviceforcustomers.CreatingLeaner,MoreEfficientOrganizationsNetworksandtechnologyalloworganizationstooperatewithfeweremployeesandsimplerstructures.EnablingIncreasedCollaborationCollaborationsoftwareandotherITcommunicationdevicesenablegreatercollaborationamonginternalunitsandwithoutsidefirms.EnablingGlobalExchangeTheglobalreachofITisenablingbusinesscollaborationonahugescale.ImprovingManagementProcessesWithdatabases,specializedsoftware,andnetworks,instantaneousinformationisnowaccessibleandusefultoalllevelsofmanagement.G>ProvidingFlexibilityforCustomizationITnetworksandotherITadvancescreatenewmanufacturingcapabilitiesthatenablebusinessestooffercustomersgreatervarietyandfasterdeliverycycles.Mass-customizationallowsmanufacturerstoproduceinlargevolumes,witheachunitfeaturingtheuniqueoptionsthecustomerprefers.H.ProvidingNewBusinessOpportunitiesITiscreatingentirelynewbusinesseswherenoneexistedbefore.LImprovingtheWorldandOurLivesNumerousbusinessesacrossvariousindustriesuseITtocreateimprovementsthatenhancethestandardofliving.KEYTEACHINGTIPSRemindstudentsthatinformationtechnology(IT)includesthevariousdevicesforcreating,storing,exchanging,andusinginformationindiversemodes,includingvisualimages,voice,multimedia,andbusinessdata.Studentsneedtokeepthemeaningofstandardizationseparatefrominass-customization,whichallowscompaniestoproduceinlargevolumesandprovideuniquefeaturesandoptionsforcustomers.QUICKQUESTIONSHowareportableofficesbolsteringproductivity?HowhasITallowedmarketerstoprovidebetterservice?HowdoesITallowfirmstocreateleaner,moreefficientorganizations?HowhasITchangedthenatureofthemanagementprocesswithinorganizations?UseIn-ClassActivity/:Ice-Breaker:ITDevicesTimeLimit:20minutesHOMEWORKTheImpactofITNowmightbeagoodtimetoassignApplicationExercise9fromtheend-of-chaptermaterialsashomework.ThisassignmentasksstudentstothinkabouthowITsystemsaffecttheirdailylives,andwhethertheirencounterswithITleavethematriskforidentitytheft.At-HomeCompletionTime:30MinutesLearningObjective2:IdentifytheITresourcesbusinesseshaveattheirdisposalandhowtheseresourcesareused.ITBuildingBlocks:BusinessResourcesBusinesseshavenumerousITresourcesattheirdisposal.TheInternetandOtherCommunicationResourcesTheInternetisagiganticsystemofinterconnectedcomputers;theWorldWideWebisastandardizedcodeforaccessinginformationandtransmittingdataovertheInternet.Intranets.IntranetsareprivatenetworksofinternalWebsiteslinkedthroughoutanorganizationthatareaccessibleonlytoemployees.Extranets.Extranetsallowoutsiderslimitedaccesstoafirm'sintenialiiifbnnationnetwork.1.ElectronicConferencing.Electronicconferencingallowsgroupsofpeopletocommunicatesimultaneouslyfromvariouslocationsviae-mail,phone,orvideo.VSATSatelliteCommunications.VSATsatellitecommunicationshaveatransmitterreceiverthatsitsoutdoorswithadirectline-of-sighttoasatellite;thehubsendssignalstoandreceivessignalsfromthesatellite,exchangingvoice,video,anddatatransmission.Networks:SystemArchitectureAcomputernetworkisagroupoftwoormorecomputerslinkedtogetherbysomeformofcablingorbywirelesstechnologytosharedataorresources,suchasaprinter;aclient-servernetworkisacommontypeofnetworkusedinbusinessesinwhichtheclientsareusuallythelaptopordesktopcomputersbeingused,andtheserversareanynumberofcomputersthatprovideservicessharedbyusers.WideAreaNetworks(WANs).Wideareanetworks(WANs)arecomputerslinkedoverlongdistances(statewideorevennationwide)throughtelephonelines,microwavesignals,orsatellitecommunications.LocalAreaNetworks(LANs).Inlocalareanetworks(LANs),computersarelinkedinasmallerarea,suchasallofafirm'scomputerswithinasinglebuilding.Thearrangementrequiresonlyonecomputersystemwithonedatabaseandonesoftwaresystem.WirelessNetworks.Wirelessnetworksuseairborneelectronicsignalstolinknetworkcomputersanddevices.Forexample,theBlackBerrysystemconsistsofdevicesthatsendandreceivetransmissionsonwirelesswideareanetworks(WWANS)ofmorethan100serviceproviders.VVi-FLAWi-Fiisahotspot,oraccesspoint,fortheInternet.Eachhotspotisactuallyitsownsmallnetwork,calledawirelesslocalareanetwork(WirelessLANorWLAN).HardwareandSoftwareHaidwareincludesthephysicalcomponents,suchaskeyboards,monitors,systemunits,andprinters;softwareincludestheprogramsthattellthecomputerhowtofunction.KEYTEACHINGTIPMakesurestudentsunderstandthedistinctionbetweenintranets(privatenetworksaccessibleonlytoemployees)andextranets(networksthatallowoutsiderslimitedaccesstoafirm'sinternalinformation).QUICKQUESTIONSForwhatpurposesmightdataconferencingbeused?Whataboutvideoconferencing?Whataretheclientsandwhataretheserversinaclient-servernetwork?Whatisthedifferencebetweenawideareanetwork(WAN)andalocalareanetwork(LAN)?WhataresomebenefitsofWi-Fi?Whendoesdatabecomeinformation?UseIn-ClassActivity2:Small-GroupDiscussion:LaidOffCampTimeLimit:30minutesLearningObjective3:Describetheroleofinformationsystems,thedifferenttypesofinformationsystems,andhowbusinessesusesuchsystems.InformationSystems:HarnessingtheCompetitivePowerofITAninformationsystemisasystemthatusesITresourcesandenablesmanagerstotake(lata—rawfactsandfigures—andtransformthatdataintoinformation—themeaningful,usefulinterpretationofdata.Informationsystemsmanagersoperatethesystemsusedforgathering,organizing,anddistributinginformation.LeveragingInformationResources:DataWarehousingandDataMiningDatawarehousinginvolvesthecollection,storage,andretrievalofdatainelectronicfiles.DataMining.Dataminingistheapplicationofelectronictechnologiesforsearching,sifting,andreorganizingpoolsofdatatouncoverusefulinformation.InformationLinkageswithSuppliers.Coordinatedplanningavoidsexcessiveinventories,speedsupdeliveries,andholdsdowncoststhroughoutthesupplychain.TypesofInformationSystemsEachusergroupanddepartmentinanorganizationmayneedaspecialinformationsystem.InformationSystemsforKnowledgeWorkers.Knowledgeinformationsystemssupportknowledgeworkersbyprovidingresourcestocreate,store,use,andtransmitnewknowledgeforusefulapplications.Computer-aideddesign(CAD)helpsknowledgeworkersdesignproductsbysimulatingthemanddisplayingtheminthree-dimensionalgraphics.InformationSystemsforManagers.Eachmanager'sinfonnationactivitiesandinformationsystemneedsvaryaccordingtohisorherfunctionalarea.ManagementInformationSystems(MIS).Managementinformationsystems(MIS)supportmanagersbyprovidingreports,schedules,plans,andbudgetsthatcanthenbeusedformakingdecisions.DecisionSupportSystems(DSS).Decisionsupportsystems(DSS)areinteractivesystemsthatcreatevirtualbusinessmodelsandtestthemwithdifferentdatatoseehowtheyrespond.KEYTEACHINGTIPSStudentsoftenconfusethispoint:Datawarehousingisthecollection,storage,andretrievalofdatainelectronicfiles;dataminingistheapplicationofelectronictechnologiesforsearching,sifting,andreorganizingdatatouncoverusefulinformation.Reinforcethataninformationsystemenablesmanagerstocollect,process,andtransmitthatinformationforuseindecisionmaking.Makesurestudentsunderstandthatamanagementinformationsystemprovidesreports,schedules,plans,andbudgetsthatmanagersusetomakedecisions.QUICKQUESTIONSHowdoknowledgeworkersbenefitfromknowledgeinformationsystems?Whatistheroleofadecisionsupportsystem(DSS)?Whataresomeadvantagesthatradiofrequencyidentificationcanprovidetoindividualstoresandtothesupplychainasawhole?UseIn-ClassActivity3:SupplementalCaseStudyDiscussion:TheTweetSmellofSuccess!TimeLimit:30minutesHOMEWORKSystemArchitectureNowmightbeagoodtimetoassignApplicationExercise10fromtheend-of-chaptermaterialsashomework.ThisassignmentasksstudentstoassesstheimpactofchangesinITonthehighereducation.At-HomeCompletionTime:1hourLearningObjective4:Identifythethreatsandrisksinformationtechnologyposesonbusinesses.ITRisksandThreatsIThasattractedabusersthataresetondoingmischief,withseverityrangingfrommerenuisancetooutrightdestruction.HackersHackersarecybercriminalswhogainunauthorizedaccesstoacomputerornetwork,eithertostealinformation,money,orpropertyortotamperwithdata.IdentityTheftIdentitytheftistheunauthorizedstealingofpersonalinformationtogetloans,creditcards,orothermonetarybenefitsbyimpersonatingthevictim.IntellectualPropertyTheftIntellectualpropertyincludesproductsoftheminds—somethingproducedbytheintellect,withgreatexpenditureofhumaneffort,thathascommercialvalue.Nearlyeverycompanyfacesthedilemmaofprotectingproductplans,newinventions,industrialprocesses,andotherintellectualproperty.ComputerViruses,Worms,andTrojanHorsesAcomputervirusexistsinafilethatattachesitselftoaprogramandmigratesfromcomputer-to-computerasasharedprogramorasane-mailattachment.Wormsareapailicularkindofvirusthattravelsfromcomputertocomputerwithinnetworkedcomputersystems,withoutneedingyoutoopenanysoftwaretospreadthecontaminatedfile.Unlikeviruses,aTrojanhorsedoesnotreplicateitself.Spywareisunintentionallydownloadedonacomputerandcrawlsaroundtomonitorthehost'scomputei'activities.Forexample,Internetusersopenfilesthatpromise"fi'eegiveaways,“notsuspectingthattheyaredownloadingspywareontotheirsystems.Spamisjunke-mailsenttoamailinglistoranewsgroup.QUICKQUESTIONSCanhackerseverdogood?Howcanidentitytheftbeavoided?WhattypesofdamagemightawormandaTrojanhorsedo?LearningObjective5:Describethewaysinwhichbusinessesprotectthemselvesfromthethreatsandrisksinformationtechnologyposes.ITProtectionMeasuresBusinessesguardthemselvesagainstintrusion,identitytheft,andvirusesbyusingfirewalls,specialsoftware,andencryption.PreventingUnauthorizedAccess:FirewallsFirewallsaresecuritysystemswithspecialsoftwareorhardwaredevicesdesignedtokeepcomputerssafefromhackers.Afirewallcontainstwocomponentsforfilteringeachincomingmessage:(1)thecompany'ssecurity^policy,whichcontainsaccessrules;and(b)arouter,whichinvolvesa"trafficswitch“thatdetenniiiesonwhichnetworkroutesorpathstosendeachmessageafteritistestedagainstthesecuritypolicy.PreventingIdentityTheftTheFairandAccurateCreditTransactionsAct(FACTA)strengthensidentity-theftprotectionsbyspecifyinghoworganizationsmustdestroyinformation,ratherthansimplydroppingitinadumpster.PreventingInfectiousViruses:Anti-VirusSoftwareAnti-virussoftwareprotectssystemsbysearchingincominge-mailanddatafilesfor“signatures“ofknownvirusesandvirus-likecharacteristics.DeProtectingElectronicCommunications:EncryptionSoftwareAnencryptionsystemworksbylockingane-mailmessagetoauniquecodenumberforeachcomputer,soonlythatcomputercanopenandreadthemessage.AvoidingSpamandSpywareAnti-spywareandspamfilteringsoftwareonbusinesssystemshelpsemployeesavoidprivacyinvasionandimprovesworkerproductivity.EthicalConcernsinITItisapparentthatITdevelopmentsandusageareprogiessiiigfasterthansociety'sappreciationforthepotentialconsequences,includingnewethicalconcerns.KEYTEACHINGTIPReinforcethatanencryptionsystemworksbylockingane-mailmessagetoauniquecodenumberforeachcomputer,soonlythatcomputercanopenandreadthemessage.QUICKQUESTION"Whatareafirewall'stwocomponentsforfilteringincomingmessages?UseIn-ClassActivity5:UpforDebate:IsThatEthical?TimeLimit:30minutesIN-CLASSACTIVITIESIn-ClassActivity1:Ice-BreakerITDevicesActivityOverview:Thisactivityasksstudentstocomeupwithalistoftechnologicaldevicesthatreflectthemanywaysinwhichtheclassasawholecreates,stores,exchanges,andusesinformation.TimeLimit:20minutesWhattoDo:Asktheclassasawholetobrainstorm,comingupwithalistoftechnologicaldevicesthattheyuseintheirpersonallives,atwork,oratschooltocreate,store,exchange,anduseinformation.Asktheclasstocommentonthesequestions:Dostudentsintheclassasawholeusemoreorfewerdevicesthanwhatyouexpectedpriortobrainstorming?Inwhatway(s)doyouseeyourindividualuseofthesedeviceschanginginthecomingyears?Inwhatway(s)havethesedevicesimpactedyourpersonallives,suchasatschool,atthebank,whileshopping,andsoon?Don'tForget:Somepeoplearemoretechnologicallysavvythanothers.Manystudentswillsaytheytakeadvantageofeverygadgetavailable,whileothersdonothaveInternetaccessathome.Wrap-Up:BringtheactivitytoaclosebyremindingstudentsthatnewtechnologiesarealwaysloomingonthehorizonandthatnoonecanaccuratelypredicthowmuchITwillchangeandaffectourlivesinthefuture.In-ClassActivity2:Small-GroupDiscussionLaidOffCampActivityOverview:Thisactivityencouragesstudentstothinkabouthowinformationtechnologycanbeusedtodevelopnewproductsandservicesevenindifficulteconomictimes.TimeLimit:30minutesWhattoDo:DividetheclassintosmallgroupsandaskthemtoreadtheEntrepreneurshipandNewVenturesfeatureonpage342ofthetextbook.(10minutes)Askstudentstodiscussthefollowingquestionswithintheirsmallgroups(10minutes):WhatdoyouthinkabouttheideaofLaidOffCamp?Ifyouweregiventheopportunity,wouldyouinvestinLaidOffCamp?Thinkofanotherproductofservicethatinformationtechnologymightmakeviableinasowneconomy.Whatwouldyoucalltheproductorservice?Whatwouldbeitsuniquesellingpoints?Regrouptheclassasawholeanddiscusseachgroup'sconclusions.(10minutes)Don'tForget:Informationtechnologyisrapidlychanging.Asnewtechnologiesbecomeavailablesodonewpossibilities.Encourageyourstudentstokeeptheireyesontechnologyblogstokeepabreastofnewdevelopments.Wrap-Up:Bringtheactivitytoaclosebyremindingstudentsofthevastdifferencesincommunicationbetweenandamongvariouscultures.In-ClassActivity3:UpforDebateIsThatEthical?ActivityOverview:Thisactivityasksstudentstodiscusstheethicalissuesthatmayarisefromanemployerhavingtheabilitytoaccessandtrackemployees'computerusage.TimeLimit:30minutesWhattoDo:Dividetheclassintosmallgroupsandaskthemtoconsiderthistidbitthatacoworkeroverheardatthewatercooler:"Iguessitwasassimpleasthat!OnceJeremylookedintoeverythingJasonhadbeendoingontheInternet,heaskedJasontohittheroad.Hewasplayingcardgames,placingpersonalstockmarkettransactions,andsendinge-mailstohisfriendsandwife.Iguessweallneedtobemorecarefxil.vAskeachgrouptodiscusswhetherfiringanemployeebasedontheirInternetactivitiesisethical;groupsshouldtakenotesontheprosandconsofsuchacompanypolicy.(15minutes)Reassembletheclassasawholeanddiscusseachgroup'sconclusion.(15minutes)Don'tForget:Manycompanieshavesuchpoliciesstatedclearlyintheemployeehandbook;ontheotherhand,someemployersmayusesuchtacticsasanexcusetogetridofanemployee.Wrap-Up:Bringthedebatetoaclosebyremindingstudentsthatcompanypoliciesstatedintheemployeehandbookmustbeadheredto.However,onesideoftheargumentis:uIfyoudon'twantmetousetheInternet,thendon'tgiveittome."Tlieothersideoftheargumentis:"Whileworkingoncompanytime,Ishoulddowhattheemployerwants."Mostgroupcommentswillfallsomewherebetweenthosetwoextremes.ANSWERSFORENDOFCHAPTERACTIVITIESQUESTIONSFORREVIEWInformationisanasset.Likeanyotherasset,informationmustbeplannedfor,developed,andprotected.(LearningObjective1-AACSB-applicationofknowledge)Itiseasy,quick,andrelativelylow-cost,eliminatingtheneedforexpensivetravelforface-to-facemeetings.(LearningObjective1-AACSB-applicationofknowledge)Thecloudenhancesuserflexibility,especiallyforemployeesworkingremotelybecauseuserscanaccesse-mailsanddatafilesfromanyonlinelocation,ratherthanfromoneparticularlocationThecloudcomputinghasbecomeacostsaverforcompaniesbyeliminatingtheneedforbuying,installing,andmaintainingin-houseservercomputers,manyofwhichhaveexcessiveunusedstoragecapacity.Therisksofcloudcomputinginclude:hackingandprivacyissues.(LearningObjective2-AACSB-applicationofknowledge)Hackerscancauseseriousdamage:stealingcompanyandcustomerinformationcompromisingcompanyfilesandrecords.Thiscancauseacompanyseriousfinancialproblems.(LearningObjective4-AACSB-applicationofknowledge)Intellectualpropertyisaproductofthemind,somethingproducedbytheintellect,withgreatexpenditureofhumaneffort.Examplesincludenewinventions,productplans,andmanufacturingprocesses.(LearningObjective4-AACSB-applicationofknowledge)QUESTIONSFORANALYSISDatawarehousinginvolvesthecollection,storage,andretrievalofdatainelectronicfiles;dataminingistheapplicationofelectronictechnologiesforsearching,sifting,andreorganizingpoolsofdatatouncoverusefulinformation.(LearningObjective3-AACSB一applicationofknowledge)ITpresentsopportunitiessuchasonlinebankingandonlineinvesting,amongotheroptions.(LearningObjective1-AACSB-applicationofknowledge)Answerswillvary,butstudentsshouldrecognizethatinformationnetworksstreamlineandautomatecommunicationsoperationsandallowfirmstoaccomplishmorewithfewerresources.(LearningObjective1-AACSB-applicationofknowledge)APPLICATIONEXERCISESAnswerswillvary,butmoststudentswillmentiontheiraccesstoATMsandtheiruseofcreditcards,oftendaily,inmakingconsumerpurchases.Identitytheftcanhappenatanytime,eitherduringorafterthesharingofpersonalinformation.(LearningObjective2-AACSB一applicationofknowledge,reflectivethinking)Answerswillvary,butmanystudentswillmentiononlineclassesandtesting,applyingandregisteringforcollege/classesonline,andaccessingtheiracademicrecordsonline.(LearningObjective1,2-AACSB-applicationofknowledge)BUILDINGABUSINESS:CONTINUINGTEAMEXERCISEASSIGNMENT14-11-15(Learningobjectives2,3,4,5-AACSBinterpersonalrelationsandteamwork,analyticalandreflectivethinking,applicationofknowledge)StudentsshoulddevelopacomprehensiveITplanthatfocusesonmeetingcustomersneeds,improvesefficiencies,operations,andprocessesbolstersproductivity,createnewopportunities,andcommunicateandwork.Theyshouldalsoaddressthevariousthreatsandrisksitposesfortheirbusinesses,aswellasthewaystoprotectthemselvesfromthreatsandrisksinformationtechnologymightposefortheirbusiness.BUILDINGYOURBUSINESSSKILLS:THEARTANDSCIENCEOFPOINT-AND-CLICKRESEARCH(Learningobjectives1,2-AACSBinterpersonalrelationsandteamwork,analyticaland,applicationofknowledge)The“Help"Rmctioncanhelpstudentssavetimebyusingthesite'sspecificfeaturesandcapabilitiestonarrowthesearch.Studentsshouldrelatevariouswaysinwhichadvancedsearchpagesallowthemtoimprove,refine,andexpandtheirsearches.TheWebhasmadeinformationmoreaccessible,lessexpensive,andeasiertofind,butithasalsoincreasedthevolumeofinformationthatmanagersmustsiftthroughtofindwhattheyneedandtoensurethattheirinformationisreliable,accurate,objective,andtimely.EXERCISINGYOURETHICS:TOREADORNOTTOREAD14-19-21(AACSB-Ethicalunderstandingandreasoning,reflectivethinking)Theethicalissuesfocusonthetnjstissuesbetweenemployeesandemployer.Answerswillvary,butmanystudentswillrecognizethatcompaniesdomonitoremployees5activitiestotrytoincreaseemployeeproductivitybutthereisalsotheperspectiveofthetrustissuefromtheemployees9perspective.Answ

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