©1999 Addison Wesley Longman Slide 1.1 The Challenge of Applying IT Successfully 1

©1999 Addison Wesley Longman Slide 1.2 Table 1.1 Amazon.com Provides a New Way to Shop for Books

©1999 Addison Wesley Longman Slide 1.3 Table 1.1 Amazon.com Provides a New Way to Shop for Books CUSTOMER Person who purchases books Wholesalers that supply the books Amazon.com’s shipping department

©1999 Addison Wesley Longman Slide 1.4 Table 1.1 Amazon.com Provides a New Way to Shop for Books PRODUCT Information about books that might be purchased Information describing each book order Books that are eventually delivered

©1999 Addison Wesley Longman Slide 1.5 Table 1.1 Amazon.com Provides a New Way to Shop for Books BUSINESS PROCESS Major Steps: Purchaser logs on to Purchaser identifies desired book or gives search criteria Purchaser looks at book-related information and decides what to order Purchaser enters order Amazon.com orders book from wholesaler Wholesaler sends book to Amazon.com Shipping department packages order and sends it to the purchaser Rationale: Instead of forcing book buyers to go to typical bookstores, permit them to use online access from home or from work.

©1999 Addison Wesley Longman Slide 1.6 Table 1.1 Amazon.com Provides a New Way to Shop for Books PARTICIPANTS People interested in purchasing books Order fulfillment department of wholesaler Shipping department of Amazon.com INFORMATION Orders for books Price and other information about each book TECHNOLOGY Personal computer used by purchaser Computers and networks used by Amazon.com for order processing

©1999 Addison Wesley Longman Slide 1.7 Figure 1.1 Four phases of a system

©1999 Addison Wesley Longman Slide 1.8 Figure 1.2 CAD in unexpected places

©1999 Addison Wesley Longman Slide 1.9 Figure 1.3 Customers link to suppliers using EDI

©1999 Addison Wesley Longman Slide 1.10 Figure 1.4 Building a customized bicycle

©1999 Addison Wesley Longman Slide 1.11 Table 1.2 The Four P’s of Marketing at Amazon.com PRODUCT Amazon.com offers 2.5 million books for sale. PRICE Although Amazon.com charges for delivery, it can offer deep discounts for some books because it does not have to pay for rent for retail stores and because its inventory costs are low. PLACE Customers buy books from their homes or offices instead of going to a book store. PROMOTION Amazon.com provides extensive background information about some books. It promotes its business be advertising on other Web sites and through traditional media such as radio.

©1999 Addison Wesley Longman Slide 1.12 Table 1.3 Six Data Processing Functions Performed by Information Technology FUNCTION: CAPTURE Definition: Obtain a representation of information in a form permitting it to be transmitted or stored Example: Keyboard, bar code scanner, document scanner, optical character recognition, sound recorder, video camera, voice recognition software FUNCTION: TRANSMIT Definition: Move information from one place to another Example: Broadcast radio, broadcast television via regional transmitters, cable TV, satellite broadcasts, telephone networks, data transmission networks for moving business data, fiber optic cable, fax machine, electronic mail, voice mail, internet FUNCTION: STORE Definition: Move information to a specific place for later retrieval Example: Paper, computer tape, floppy disk, hard disk, optical disk, CD-ROM, flash memory

©1999 Addison Wesley Longman Slide 1.13 Table 1.3 Six Data Processing Functions Performed by Information Technology FUNCTION: RETRIEVE Definition: Find the specific information that is currently needed Example: Paper, computer tape, floppy disk, hard disk, optical disk, CD-ROM, flash memory FUNCTION: MANIPULATE Definition: Create new information from existing information through summarizing, sorting, rearranging, reformatting, or other types of calculations Example: Computer (plus software) FUNCTION: DISPLAY Definition: Show information to a person Example: Laser printer, computer screen

©1999 Addison Wesley Longman Slide 1.14 Figure 1.6 Comparison of a vacuum tube and an integrated circuit

©1999 Addison Wesley Longman Slide 1.15 Table 1.4 Progress in Memory Chip Capacity Since kilobit 4 kilobit 16 kilobit 64 kilobit 256 kilobit 1 megabit 4 megabit 16 megabit 64 megabit 256 megabit 1,024 4,096 16,384 65, ,144 1,048,576 4,194,304 16,777,216 67,108, ,435,456 Approximate date of widespread commercial availability Type of chip Capacity in number of bits

©1999 Addison Wesley Longman Slide 1.16 Figure 1.7 Using a portable computer to give parking tickets

©1999 Addison Wesley Longman Slide 1.17 Figure 1.8 Convergence of computing and communications

©1999 Addison Wesley Longman Slide 1.18 Figure 1.9 Example of the convergence of computing and communications

©1999 Addison Wesley Longman Slide 1.19 Figure 1.10 A leading edge flat panel monitor and a computer terminal from the 1980s

©1999 Addison Wesley Longman Slide 1.20 Figure 1.11 Example of the positive and negative impacts of technical change