Chapter 6 Hardware and Software in The Enterprise

Essentials of Management Information Systems, 6e
Chapter 6
Chapter 6 Hardware and Software in the Enterprise
Hardware and Software in the

Enterprise
6.1 © 2005 by Prentice Hall

Objectives
1. What computer processing and storage

capability does our organization need to handle
its information and business transactions?
2. What arrangement of computers and computer

processing would best benefit our organization?
3. What kinds of software and software tools do we

need to run our business? What criteria should
we use to select our software technology?

Objectives
• What new software technologies are available?

How would they benefit our organization?
• How should we acquire and manage the firm’s

hardware and software assets?

Management Challenges
1. The centralization versus decentralization

debate.
2. The application backlog.

Computer Hardware and Information Technology Infrastructure
Hardware components of a computer system
Figure 6-1
The Computer System
Bit
• Binary digit
• Represents 0 or 1
Byte
• String of eight bits
• Stores one number, symbol, character, part of
picture

Bits and bytes
Figure 6-2
The Computer System
The Central Processing Unit (CPU)

• Controls other parts of computer
• Arithmetic-logic unit performs principle
logical/mathematical operations
• Control unit coordinates other parts, such as
reading a stored program

The Computer System
Primary Storage
• Located near CPU
• Stores all or part of active software program
• Stores operating system software
• Stores data the program is using

The Computer System
Primary Storage
• Composed of semi-conductors
• RAM (random access memory): Used for short-
term, temporary storage
• ROM (read-only memory): Semiconductor
memory chips with program instructions

The CPU and primary storage
Figure 6-3
Computer Processing
Microprocessors
• Semiconductor chips integrate memory, logic, and control
circuits for entire CPU
• Speed depends on number of bits processed at one time;
amount of data that can be moved between devices; and
cycle speed (MHz)
• RISC (reduced instruction set computing) increases speed;
used for scientific, workstation computing

Computer Processing
Parallel processing
• Multiple CPUs work simultaneously on same
problem
• More than one instruction processed at a time
• Massively parallel computers: use hundreds,
thousands of processing chips

Sequential and parallel processing
Figure 6-4
Storage, Input, and Output Technology
Secondary Storage Technology

• Used for relatively long-term storage of data outside CPU
• Magnetic disk: floppies, hard disks, RAID
• Optical disk: CD-ROM, CD-RW, DVD
• Magnetic tape
• Storage networking: direct-attached storage; network-
attached storage; storage area networks

A storage area network (SAN)
Figure 6-5
Input Devices
• Keyboard and mouse
• Touch screen
• Optical character recognition
• Magnetic ink character recognition (MICR)
• Pen-based input
• Digital scanner
• Audio input
• Sensors
• Radio-frequency identification (RFID)

Output Devices
• Cathode-ray tube (CRT)

• Printers
• Audio output

Batch Processing
• Accumulates and stores transactions in group or batch until
time to process them
• Found primarily in older systems for occasional reporting
• Use tape storage
Online Processing
• Transactions processed immediately
• Use disk storage

Interactive Multimedia
• Integrates sound, video or animation, graphics,
text into computer-based application
• Streaming technology
• New compression standards: MP3 (MPEG3)

Categories of Computers and Computer Systems
Classifying Computers
• Mainframe: Largest computer; handles massive amounts of

data; used for large business, scientific, military
applications
• Midrange computer: Smaller, less expensive
minicomputers or servers; used for smaller organizations
or managing networks
• Minicomputers: Used in systems for universities, factories,
research labs
• Servers: Manage internal company networks or Web sites

Classifying Computers
• Personal computer: Portable or desktop

microcomputer
• Workstation: More powerful desktop computer
used for computation-intense tasks
• Supercomputer: Sophisticated, powerful computer
used for tasks requiring rapid, complex
calculations; weapons research, weather
forecasting

Computer Networks and Client/Server Computing
• Distributed processing: Distribution of processing

work among multiple computers
• Centralized processing: Accomplished by one
large central computer
• Client/server computing: Splits processing
between “clients” and “servers” on network

Client/server computing
Figure 6-6
Types of client/server computing
Figure 6-7
Network Computers and Peer-to-Peer Computing
• Network computer (NC): Simplified desktop

computer, does not store data permanently
• Peer-to-peer computing: Distributed processing
that links computers through Internet or private
networks
• Grid computing: Applies computational resources
of many networked computers to solve a large,
complex problem

Types of Software
• Software program: A series of statements or

instructions to the computer
• Two major types of software: System software and
application software
• System software: Generalized programs that
manage the computer’s resources
• Application software: Programs written for or by
users to perform a specific task

Types of Software
The major types of software
Figure 6-8
Types of Software
System Software and PC Operating Systems
• Operating system software: Manages the computer

system, resources; controls memory, input, output,
and task scheduling
• Computer language translation programs:
Compiles source code of high-level language
programs (C, FORTRAN) into object code -
machine language the computer can execute
• Utility programs: Perform routine, repetitive tasks
such as copying, clearing primary storage

Types of Software
Operating System Capabilities

• Multiprogramming: Concurrent use of CPU by multiple
programs
• Virtual storage: Breaks programs into smaller portions to
read as needed
• Time-sharing: Allows many users to share CPU time
• Multi-processing: Links two or more CPUs to work in
parallel in single computer system

Types of Software
PC Operating Systems
• Software written for one OS generally cannot run
on another
• Graphical User Interface (GUI): Dominant model
for user interface for operating systems and
applications

Types of Software
Leading PC Operating Systems

• Windows XP
• Windows 2000
• Windows Server 2003
• Windows 98/ME
• Windows CE
• Unix
• Linux
• Mac OS
• DOS

Types of Software
Window on Management
The Case for Linux

• Should a company select Linux as an operating
system for its major business applications?
• What are the management benefits Linux
provides?
• What are the business as well as the technology
issues that should be addressed when making that
decision?

Types of Software
Application Programming Languages
Machine 1st generation; binary

language
C Operating systems; application software
C++ Object-oriented; application software
COBOL Business administration; alphanumeric

processing
Visual Basic Visual tool; Windows applications

Types of Software
Application Programming Languages
FORTRAN Processing numeric data; scientific,

engineering programs
BASIC Used for teaching
Pascal Used primarily for teaching programming
Assembly Second generation; close to machine

language language; system software

Types of Software
Programming Languages and Contemporary Software Tools
• Fourth generation languages: Enable end users to develop

applications with minimal or no assistance; less procedural
• Procedural languages: Require sequence of steps
• Nonprocedural languages: Specify tasks but not details on
sequence
• Natural languages: Nonprocedural languages resembling
human speech
• Query languages: Software tools for providing online
answers to information requests

Types of Software
Categories of Fourth-Generation Languages
PC software tools General-purpose packages

WordPerfect, Microsoft Access
Query language Retrieve data stored in databases or
files
SQL
Report generator Retrieve data, more formatting control;
Crystal Reports
Graphics language Retrieve data, graphics format

SAS Graph; Systat

Types of Software
Categories of Fourth-Generation Languages
Application generator Preprogrammed modules

FOCUS, Microsoft FrontPage
Application software Commercial software replacing need
package for custom, in-house software
PeopleSoft HCM, SAP R/3
Very high-level Generate code with fewer instructions;
programming productivity tool for programmers
language APL, Nomad2

Types of Software
Object-Oriented Programming
• Combine data and methods (procedures) into one
object
• Objects are independent, reusable building blocks
• Based on concepts of class and inheritance

Types of Software
Class and inheritance
Figure 6-9
Types of Software
Java
• Object-oriented
• Platform-independent
• Robust; handles data, graphics, video, sound
• Can create “applets”; often used on Web
• Java applications tend to run slower than “native”
programs

Types of Software
• Hypertext Markup Language (HTML): Page

description language; creates Web pages and other
hypermedia documents
• XML (eXtensible Markup Language): Describes
the structure of a document; provides standard
format for data exchange
• XHTML: Reformulates HTML with XML
document-type definitions

Types of Software
Application Software Packages and Productivity Software
• Word processing software: Create, format, print documents
• Desktop publishing software: Produce professional-quality

documents with greater formatting, design capabilities
• Spreadsheets: Display data in grid for recalculating

numerical data
• Data management software: Store, manipulate data in lists

and databases

Types of Software
Text and the spell-checking option in Microsoft Word
Figure 6-10
Types of Software
Spreadsheet software
Figure 6-11
Types of Software
Data management software
Figure 6-12
Types of Software
Application Software Packages and Productivity Software
• Presentation graphics: Create professional-quality graphics

and multimedia presentations
• Integrated Software Packages and Suites: Combine two or

more applications; easy data transfer
• E-mail software: Computer exchange of messages
• Web browsers: Access and display Web, Internet resources
• Groupware: Support activities of workgroups

Types of Software
Software for Enterprise Integration and E-Business
• Enterprise software: Integrates multiple business

processes
• Legacy system: System in place for long time
• Middleware: Software that connects two disparate
systems
• Enterprise application integration (EAI) software:
Middleware to create hub connecting applications
and application clusters

Types of Software
Enterprise application integration (EAI) software versus traditional integration
Figure 6-13
Types of Software
Software for Enterprise Integration and E-Business
• Web services: Universal standards using Internet

technology for exchanging data between systems
• Web server: Manages requests for Web pages on
computer where they are stored
• Application server: Middleware software handling
application operations between user and back-end
business systems

Types of Software
A multitiered architecture for e-commerce and e-business
Figure 6-14
Types of Software
Window on Technology
Application Integration to the Rescue

• How can enterprise application integration and
Web services technology provide value for
organizations?
• What management, organization, and technology
issues should be addressed when making the
decision about whether to use these technologies?

Managing Hardware and Software Assets
Hardware Technology Requirements

For Electronic Commerce and the Digital Firm
• Capacity planning: Process of predicting when a

computer hardware system becomes saturated
• Scalability: Ability of a computer, product, or
system to expand to serve a larger number of users
without breaking down

Total Cost of Ownership (TCO) of Technology Assets
• Includes both direct and indirect costs

• Hardware and software acquisitions account for
only 20% of TCO
• TCO for a PC may run to three times original
purchase price
• Hidden costs can make distributed architecture
more expensive than centralized mainframes

Total Cost of Ownership (TCO) Cost Components
• Hardware acquisition
• Software acquisition
• Installation
• Training
• Support
• Maintenance
• Infrastructure
• Downtime
• Space and energy

Rent or Build Decisions: Using Technology Service Providers
• Storage service provider: Provides online access to

storage devices and storage area network
technology
• Application service provider: Delivers
applications over networks on subscription basis
• Management service provider: Manages
applications, systems, security, storage, Web sites,
system performance

Types of Software
Model of an Application Service Provider (ASP)
Figure 6-15
Rent or Build Decisions: Using Technology Service Providers
• Business continuity provider: Defines procedures

for recovery from system malfunctions, disaster
recovery
• Utility computing: Model in which companies pay
only for resources used in a specific time period

Chapter 6 Case Study
Zurich North America Hunts Down Its IT Assets
1. Evaluate Zurich North America Canada using the value

chain and competitive forces models. Why did IT asset
management become so important to this company?
2. Why did Zurich North America have problems
managing its hardware and software assets? How serious
were these problems? What management, organization,
and technology factors were responsible for those
problems?
3. How did Zurich North America solve its asset
management problem? What managerial and technology
tools did it use?

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Essentials of Management Information Systems, 6e

Hardware and Software in the

6.1 © 2005 by Prentice Hall

1. What computer processing and storage

2. What arrangement of computers and computer

3. What kinds of software and software tools do we

6.2 © 2005 by Prentice Hall

• What new software technologies are available?

• How should we acquire and manage the firm’s

6.3 © 2005 by Prentice Hall

1. The centralization versus decentralization

2. The application backlog.

6.4 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

Hardware components of a computer system

Computer Hardware and Information Technology Infrastructure

The Computer System

6.6 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

Bits and bytes

Computer Hardware and Information Technology Infrastructure

The Computer System

The Central Processing Unit (CPU)

6.8 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

The Computer System

6.9 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

The Computer System

6.10 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

The CPU and primary storage

Computer Hardware and Information Technology Infrastructure

6.12 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

6.13 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

Sequential and parallel processing

Computer Hardware and Information Technology Infrastructure

Storage, Input, and Output Technology

Secondary Storage Technology

6.15 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

A storage area network (SAN)

Computer Hardware and Information Technology Infrastructure

Storage, Input, and Output Technology

6.17 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

Storage, Input, and Output Technology

• Cathode-ray tube (CRT)

6.18 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

Storage, Input, and Output Technology

6.19 © 2005 by Prentice Hall

Computer Hardware and Information Technology Infrastructure

Storage, Input, and Output Technology

6.20 © 2005 by Prentice Hall

Categories of Computers and Computer Systems

• Mainframe: Largest computer; handles massive amounts of

6.21 © 2005 by Prentice Hall

Categories of Computers and Computer Systems

• Personal computer: Portable or desktop

6.22 © 2005 by Prentice Hall