Information Systems: A Manager’s Guide to Harnessing Technology V 3.0 By John Gallaugher

Chapter 11 Understanding Software: A Primer for Managers

Learning Objectives Recognize the importance of software and its implications for the firm and strategic decision making. Understand that software is everywhere; not just in computers, but also cell phones, cars, cameras, and many other technologies. Know what software is and be able to differentiate it from hardware. List the major classifications of software and give examples of each.

introduction Computing hardware: Physical components of information technology, which includes the computer and its peripherals Storage devices Input devices Output devices Software: Computer program or collection of programs. Precise set of instructions that tells hardware what to do.

software Operating system: Software that controls the computer hardware Establishes standards for developing and executing applications Applications: Desktop applications, enterprise software, utilities, and other programs that perform specific tasks for users and organizations

The Hardware/software layer cake USER APPLICATION Microsoft Office, Oracle, Angry Birds OPERATING SYSTEM Microsoft Windows, Linux, Mac OSX, iOS HARDWARE

Learning objectives Understand what an operating system is and why computing devices require operating systems. Appreciate how embedded systems extend Moore’s Law, allowing firms to create “smarter” products and services.

Provide a common set of controls for managing computer hardware Operating Systems Provide a common set of controls for managing computer hardware Make it easier for users to interact with computers and for programmers to write application software. User interface: Mechanism through which users interact with a computing device. Firmware: Software stored on nonvolatile memory chips. Embedded Systems: Special-purpose software designed and included inside physical products.

Learning Objectives Appreciate the difference between desktop and enterprise software. List the categories of enterprise software. Understand the ERP (enterprise resource planning) software package. Recognize the relationship of the DBMS (database management system) to the other enterprise software systems. Recognize both the risks and rewards of installing packaged enterprise systems.

Application Software Software that Performs the work that users and firms are directly interested in accomplishing Platform: Products and services that allow for the development and integration of software products and other complementary goods Desktop software: Applications installed on a personal computer, typically supporting tasks performed by a single user

Enterprise software Applications that address the needs of multiple users throughout an organization or work group Software package: Software product offered commercially by a third party. Enterprise resource planning (ERP): Software package that integrates the many functions of a business: Sales and inventory Manufacturing and purchasing Human resources Order tracking and decision support

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Enterprise software CUSTOMER RELATIONSHIP MANAGEMENT (CRM) Systems used to support customer-related sales and marketing activities. SUPPLY CHAIN MANAGEMENT Systems that can help a firm manage aspects of its value chain through delivery of finished products and services at the point of consumption. BUSINESS INTELLIGENCE (BI) SYSTEMS Systems that use data created by other systems to provide reporting and analysis for organizational decision making.

Database management system Software for creating, maintaining, and manipulating data Referred to as database software. Stores and retrieves the data created and used by enterprise applications. Firms with common database systems and standards benefit from increased organizational insight and decision-making capabilities.

Database management system SCM ERP CRM PROPRIETARY DATABASE Partner’s Systems Organization’s Systems

Learning Objectives Understand the concept of distributed computing and its benefits. Understand the client-server model of distributed computing. Know what Web services are and the benefits that Web services bring to firms. Appreciate the importance of messaging standards and understand how sending messages between machines can speed processes, cut costs, reduce errors, and enable new ways of doing business.

Distributed Computing Form of computing where systems in different locations communicate and collaborate to complete a task Server: Program that fulfills the requests of a client Hardware context - Computer that has been configured to support requests from other computers Software context - Program that fulfills requests Client: Software program that makes requests of a server program

Distributed Computing APPLICATION SERVER Software that houses business logic for use by multiple applications. Used by more advanced distributed environments. WEB SERVICES Small pieces of code that are accessed via the application server that permit interoperable machine-to-machine interaction over a network. APPLICATION PROGRAMMING INTERFACE (API) Programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as send or receive data. SERVICE-ORIENTED ARCHITECTURE (SOA) Set of Web services built around an organization’s processes and procedures.

MULTITIERED DISTRIBUTED SYSTEM SMART-PHONES Company’s Systems WEB SERVER APP SERVER DATABASE COMPUTERS Clients RETAIL SYSTEMS BANK SYSTEMS

Formats to facilitate data sharing EDI (ELECTRONIC DATA INTERCHANGE) Set of standards for exchanging messages containing formatted data between computer applications. EXTENSIBLE MARKUP LANGUAGE (XML) Tagging language that can be used to identify data fields made available for use by other applications New generation of more-flexible technologies

Learning Objectives Understand, at a managerial level, what programming languages are and how software is developed. Recognize that an operating system and microprocessor constrain the platform upon which most compiled application software will run. Understand what Java is and why it is significant. Know what scripting languages are.

INTEGRATED DEVELOPMENT ENVIRONMENT (IDE) Writing software PROGRAMMING LANGUAGE Provides the standards, syntax, statements, and instructions for writing computer software. INTEGRATED DEVELOPMENT ENVIRONMENT (IDE) Application with an editor, debugger, and compiler, and other tools. IDE will also compile a programmer’s code. Compile: Step in which program code written in a language that humans understand is converted into a form that can be understood and executed by a microprocessor.

JAVA SCRIPTING LANGUAGES WRITING SOFTWARE Programming language designed to provide true platform independence for application developers. Java programmers use special Java commands to control their user interface. SCRIPTING LANGUAGES Programming tool that executes within an application. Commands are interpreted within their applications, rather than compiled to run directly by a microprocessor. Interpreted: Languages where each line of written code is converted for execution at run-time.

Learning Objectives List the different cost categories that comprise total cost of ownership. Understand that once a system is implemented, the costs of maintaining and supporting the system continue. List the reasons that technology development projects fail and the measures that can be taken to increase the probability of success. Examine the failed launch and eventual fix associated with HealthCare.gov, understanding the factors associated with the system’s botched rollout and techniques used to recover the effort.

Total cost of ownership All of the costs associated with any form of capital, including a software system In the case of a software system: Design Development Testing Implementation Documentation Training Maintenance

Why do technology projects fail? Unrealistic or unclear project goals Poor project leadership and weak executive commitment Inaccurate estimates of needed resources Badly defined system requirements Allowing feature creep during development Poor reporting of the project’s status Poor communication among customers, developers, and users Use of immature technology Unmanaged risks Inability to handle the project’s complexity Sloppy development and testing practices Poor project management Stakeholder politics Commercial pressures

Capability Maturity Model Integration (CMMI) Process-improvement approach that can assist in: Assessing the maturity, quality, and development of certain organizational business processes. Suggesting steps for their improvement.

Healthcare.gov failure HealthCare.gov served as a national healthcare exchange where people could shop for, compare, and enroll in healthcare plans. Subsidies offered for low-income enrollees. Assist those eligible to sign up for Medicaid. System riddled with problems: Bug-ridden and flawed design prevented sign-ups Extremely high cost Lack of clear authority over website functioning Could not handle national demands Lacked common measurement and reporting systems

Healthcare.gov rescue Clear leadership brought in, with responsibility and authority. Team of seasoned technologists hired: Setting clear priorities Results reporting Coordination implementation Stand-up meetings Over 8 million users signed up by mid-April 2014