Hardware and Software in the Enterprise Chapter 6 Hardware and Software in the Enterprise

Objectives What computer processing and storage capability does our organization need to handle its information and business transactions? What arrangement of computers and computer processing would best benefit our organization? 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 The centralization versus decentralization debate. The application backlog.

Computer Hardware and Information Technology Infrastructure Hardware components of a computer system Figure 6-1

Computer Hardware and Information Technology Infrastructure The Computer System Bit Binary digit Represents 0 or 1 Byte String of eight bits Stores one number, symbol, character, part of picture

Computer Hardware and Information Technology Infrastructure Bits and bytes Figure 6-2

Computer Hardware and Information Technology Infrastructure 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

Computer Hardware and Information Technology Infrastructure 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

Computer Hardware and Information Technology Infrastructure 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

Computer Hardware and Information Technology Infrastructure The CPU and primary storage Figure 6-3

Computer Hardware and Information Technology Infrastructure 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 Hardware and Information Technology Infrastructure 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

Computer Hardware and Information Technology Infrastructure Sequential and parallel processing Figure 6-4

Computer Hardware and Information Technology Infrastructure 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

Computer Hardware and Information Technology Infrastructure A storage area network (SAN) Figure 6-5

Computer Hardware and Information Technology Infrastructure Storage, Input, and Output Technology 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)

Computer Hardware and Information Technology Infrastructure Storage, Input, and Output Technology Output Devices Cathode-ray tube (CRT) Printers Audio output

Computer Hardware and Information Technology Infrastructure Storage, Input, and Output Technology 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

Computer Hardware and Information Technology Infrastructure Storage, Input, and Output Technology 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

Categories of Computers and Computer Systems 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

Categories of Computers and Computer Systems 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

Categories of Computers and Computer Systems Client/server computing Figure 6-6

Categories of Computers and Computer Systems Types of client/server computing Figure 6-7

Categories of Computers and Computer Systems 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

Two major types of software: System software and application 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

The major types of software Figure 6-8

System Software and PC Operating Systems 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

System Software and PC Operating Systems Types of Software System Software and PC Operating Systems 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

System Software and PC Operating Systems Types of Software System Software and PC Operating Systems 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

System Software and PC Operating Systems Types of Software System Software and PC Operating Systems 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?

Application Programming Languages Types of Software Application Programming Languages Machine language 1st generation; binary C Operating systems; application software C++ Object-oriented; application software COBOL Business administration; alphanumeric processing Visual Basic Visual tool; Windows applications

Application Programming Languages Types of Software Application Programming Languages FORTRAN Processing numeric data; scientific, engineering programs BASIC Used for teaching Pascal Used primarily for teaching programming Assembly language Second generation; close to machine language; system software

Programming Languages and Contemporary Software Tools 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

Categories of Fourth-Generation Languages 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

Categories of Fourth-Generation Languages Types of Software Categories of Fourth-Generation Languages Application generator Preprogrammed modules FOCUS, Microsoft FrontPage Application software package Commercial software replacing need for custom, in-house software PeopleSoft HCM, SAP R/3 Very high-level programming language Generate code with fewer instructions; productivity tool for programmers APL, Nomad2

Programming Languages and Contemporary Software Tools Types of Software Programming Languages and Contemporary Software Tools 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

Programming Languages and Contemporary Software Tools Types of Software Programming Languages and Contemporary Software Tools 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

Programming Languages and Contemporary Software Tools Types of Software Programming Languages and Contemporary Software Tools 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

Application Software Packages and Productivity Software 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

Text and the spell-checking option in Microsoft Word Types of Software Text and the spell-checking option in Microsoft Word Figure 6-10

Types of Software Spreadsheet software Figure 6-11

Data management software Types of Software Data management software Figure 6-12

Application Software Packages and Productivity Software 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

Software for Enterprise Integration and E-Business 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

Software for Enterprise Integration and E-Business 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

A multitiered architecture for e-commerce and e-business Types of Software A multitiered architecture for e-commerce and e-business Figure 6-14

Application Integration to the Rescue 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

Managing Hardware and Software Assets 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

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

Managing Hardware and Software Assets 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

Model of an Application Service Provider (ASP) Types of Software Model of an Application Service Provider (ASP) Figure 6-15

Managing Hardware and Software Assets 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

Zurich North America Hunts Down Its IT Assets Chapter 6 Case Study Zurich North America Hunts Down Its IT Assets Evaluate Zurich North America Canada using the value chain and competitive forces models. Why did IT asset management become so important to this company? 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? How did Zurich North America solve its asset management problem? What managerial and technology tools did it use?