Hardware and Software David Kroenke Using MIS 3e Part 2 Hardware and Software David Kroenke

Chapter Preview Like Neil, you might go into the computer industry and then transition to some other business. If so, you’ll know “how the game is played,” as Kelly says. However, you might not. You might become a department manager, or own your own small business, or be appointed to your law firm’s technology committee. Whatever direction your career takes, you don’t want to be one of those professionals who “waste a lot of money . . . and time.” The knowledge from this chapter can help. You don’t need to be an expert. You don’t need to be a hardware engineer or a computer programmer. You do need to know enough, however, to be an effective consumer. You need the knowledge and skills to ask important, relevant questions and understand the answers. We begin with basic hardware and software concepts. Then we will discuss how you can use your knowledge to prepare a computer budget for your department and, then we wrap up by forecasting trends in hardware and software in 2020.

Information Technology David Kroenke Using MIS 3e Chapter 4 Information Technology David Kroenke

Study Questions Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Five-Component Framework: Components of a Generic Computer Hardware includes electronic components and related gadgetry that input, process, output, and store data according to instructions encoded in computer programs or software. Fig 4-1 Input, Process, Output, and Storage Hardware

Four Categories of Basic Computer Components Input hardware includes: keyboard, mouse, scanners, microphones, and handwriting for a tablet PC. Processing hardware includes: central processing unit (CPU) which can be a dual-processor or a quad-processor, main memory, and special function cards. Output hardware includes: video displays, printers, audio speakers, overhead projectors, and special-purpose devices. Storage hardware includes: magnetic disks, optical disks, and magnetic tape.

Input Hardware Devices Scantron test scanner

Computer Data: Binary Digits Fig 4-4 Bits are Easy to Represent Physically

Sizing Computer Data Computer data, whether numbers, alphabetic characters, or photos, are merely a collection of bits. Fig 4-5 Important Storage-Capacity Terminology

How Does a Computer Work? First step: CPU transfers a program or data from a storage disk to main memory. Second step: CPU moves a program instruction from main memory into the CPU via the data channel, or bus. Cache memory, part of CPU, is very fast memory used to store frequently used instructions in order to speed up processing. Main memory contains operating system (OS), a program that controls computer’s resources, and blocks data and instructions. Main memory too small to hold all the program code and data needed for processing, so operating system loads programs into memory in chunks. Then, uses memory swapping to move chunks of instructions and data in and out of main memory.

How Does a Computer Work?

Why Does a Manager Care How a Computer Works? Managers need to match computers to employee tasks and requirements to reduce employee frustration and improve productivity. Main memory size Employees who process many programs (Word, Excel, Firefox, Access, Acrobat, and other programs) at same time, or process very large files (pictures, movies, or sound files) need lots of main memory, because too little memory will make the computer slow due to constant memory swapping.

Why Does a Manager Care How a Computer Works? CPU speed (hertz) Slow personal computers have speed of 1.5 Gigahertz, fast ones have speed of 3+ Gigahertz, with dual processing (2009). CPUs classified as 32-bit or 64-bit 64-bit CPU can address more main memory. Effectively utilize more than 4 GB of memory. More expensive than 32-bit processors.

Why Does a Manager Care How a Computer Works? Simple tasks, such as word processing, do not need fast CPU; a 32-bit, 1.5 Gigahertz CPU will be fine. Employee who processes large, complicated spreadsheets or manipulates large database files or edits large picture, sound, or movie files needs a fast computer like a 64-bit, dual processor with 3.5 Gigahertz or more. Cache and main memory are volatile meaning their contents are lost when power is off. Magnetic and optical disks are nonvolatile, meaning their contents survive when power is off.

Study Questions Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Computing Environment of the Typical User

Clients and Servers Client computers Computers used by an individual for word processing, spreadsheets, database access, and so forth. Most client computers have software that enables them to connect to a private network at work or school, or public Internet. Server computers Provide some service (such as email; serving pages on a Web site; processing large, shared databases; or other functions) to multiple users.

Clients and Servers A typical server: Must be fast and have multiple CPUs Need lots of main memory, at least 4GB Require very large disks—often a terabyte or more. Because servers are almost always accessed from another computer via a network Have limited video displays, or no display at all Many have no keyboard

Clients and Servers Server farm An organized collection of servers (Figure 8). Servers in a farm coordinate their activities in a sophisticated and fascinating technology dance. They receive and process hundreds, possibly thousands, of service requests per minute. In December 2005, Amazon.com processed an average of 41 order items per second for 24 hours straight. Farm servers hand off partially processed requests to each other while keeping track of the current status of each request. They can pick up the pieces when a computer in the farm fails. All of this is done in the blink of an eye.

A Server Farm Figure 4-8

Grids Grid computing A network of computers that operates as an integrated whole; the grid appears to be a single computer. It may support a server farm, or some other computing need. Organizations lease time on a grid from other organizations that create, support, and manage that grid. For example, IBM leases time on a grid for applications that require intensive arithmetic computing. Also leases time on a special-purpose grid to archive medical records. (See www-03.ibm.com/grid.)

Clouds Cloud computing Refers to a computing network on the Internet When you access a video from a site like Facebook, you are accessing computing services in the cloud. You don’t know which server is processing your Facebook requests or which server is playing the video. You just know that somewhere in the cloud one or more servers are causing the video to be downloaded to your computer.

Study Questions Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Operating System and Application Programs Figure 4-9

Important Software Constraints A particular version of an operating system is written for a particular type of hardware. For example, Microsoft Windows works only on processors from Intel and companies that make processors that conform to the Intel instruction set (the commands that a CPU can process). 32-bit version of Windows run only on Intel computers with 32-bit CPUs and the 64-bit version of Windows runs only on Intel computers with 64-bit CPUs. Linux has different versions for different instructions sets and for both 32- and 64-bit computers.

Important Software Constraints Application programs are written to use a particular operating system. Microsoft Access runs only on Windows operating systems. Some applications come in multiple versions. Windows and Macintosh versions of Microsoft Word. Unless informed otherwise, assume that a particular application runs on just one operating system.

What a Manager Needs to Know About Software

Windows Microsoft Windows Most important operating system for business users Some version of Windows resides on more than 85 percent of world’s desktops, and 95 percent of business users’ computers. Different versions of Windows Windows 7, Windows Vista, and Windows XP run on user computers. Windows Server is a version of Windows designed for servers. Windows runs the Intel instruction set on both 32- and 64-bit computers.

Mac OS Operating system for the Apple Macintosh computers Current version is Mac OS X Macintosh computers are used primarily by graphic artists and workers in the arts community. Originally designed to run on Motorola CPUs In 1994, Mac OS switched to IBM’s PowerPC processors. As of 2006, Macintosh computers are available for both PowerPC and Intel CPUs. A Macintosh with an Intel processor is able to run both Windows and the Mac OS. Apple has led the way in developing easy-to-use interfaces.

Unix Operating system developed at Bell Labs in 1970s Workhorse of scientific and engineering communities since Generally regarded as being more difficult to use than either Windows or the Macintosh, because of its arcane language for manipulating files and data. However, most Unix users become fanatic supporters of the system once they learn it. Sun Microsystems and other vendors of computers for scientific and engineering applications are major proponents of Unix. In general, Unix is not for business users.

Linux A version of Unix by the open-source community, a loosely coupled group of programmers who volunteer their time to contribute code to develop and maintain Linux. Open-source community owns Linux, and there is no fee to use it. Linux can run on client computers, but it is most frequently used for servers, particularly Web servers. IBM is primary proponent of Linux. Although IBM does not own Linux. IBM has developed many business systems solutions that use Linux. By using Linux, IBM does not have to pay a license fee to Microsoft or another OS vendor

Own vs. License License (means to give permission) Right to use a program, but not own it Site license Authorizes a user or company to install a software product (operating system or application) on all company computers or at a specific site for a negotiated flat fee

What Types of Applications Exist, and How Do Organizations Obtain Them? (Tutorial Video) Application software Performs a service or function Some are general purpose, such as Microsoft Excel or Word Others provide specific functions, such as QuickBooks which provides general ledger and other accounting functions

What Categories of Application Programs Exist? Horizontal-market application software Provides capabilities common across all organizations and industries. Word processors, graphics programs, spreadsheets, and presentation programs are all horizontal-market application software. Examples: Microsoft Word, Excel, and PowerPoint; Adobe Acrobat, Photoshop, and PageMaker; Jasc Corporation’s Paint Shop Pro. Used in a wide variety of businesses, across all industries Purchased off-the-shelf, and little customization of features is necessary (or possible) Video link here

What Categories of Application Programs Exist? Vertical-market application software Serves needs of a specific industry Examples: Programs used by dental offices to schedule appointments and bill patients; auto mechanics to keep track of customer data and customers’ automobile repairs; and programs used by parts warehouses to track inventory, purchases, and sales Vertical applications Usually can be altered or customized. Typically, the company that sold the application software will provide such services or offer referrals to qualified consultants who can provide this service. One-of-a-kind application software Developed for a specific, unique need

How Do Organizations Acquire Application Software? Off-the-shelf-software Off-the-shelf with alterations software Tailor-made software or custom-developed software Organizations develop custom application software themselves or hire a development vendor. Custom development is difficult and risky. Staffing and managing teams of software developers is challenging. Managing software projects can be daunting. Many organizations have embarked on application development projects only to find that the projects take twice as long—or longer—to finish as planned. Cost overruns of 200 and 300 percent are not uncommon. Only used when there is no other option

Summary of Software Sources and Types Figure 4-11

Firmware Firmware Computer software that is installed into devices such as printers, print servers, and various types of communication devices. Coded just like other software, but it is installed into special, read-only memory of the printer or other device, so program becomes part of device’s memory. Users do not need to load firmware into the device’s memory. Can be changed or upgraded, but this is normally a task for IS professionals. Task is easy, but it requires knowledge of special programs and techniques that most business users choose not to learn.

Study Questions Q4 Why are thin clients preferred to thick clients? Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Client and Server Computers Can Run Different Operating Systems

Client-Server Applications Client-server applications require software code on both client computer and server computer. Difference between a thin client and a thick client is determined by amount of software required on client computer. Thin clients only require a browser, like Internet Explorer. Accessing a Web site is an example of a thin client application. A thin client program is preferable because it doesn’t require extra software. Thick clients require software programs in addition to a browser. Using Mozilla Thunderbird email is an example of a thick client application. Thick client software usually provides more features and functions.

Study Questions Q5 Is open source software a viable alternative? Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Open Source Movement and Process GNU (Gnu Not Unix) GNU General Public License (GPL) Agreement One of the standard license agreements for open source software Successful open source projects OpenOffice (a Microsoft Office look-alike) FireFox (a browser) MySQL (a DBMS, see Chapter 5) Apache (a Web server…see Chapter 8) Ubuntu (a Windows-like desktop operating system) Android (a mobile-phone operating system)

Why Do Programmers Volunteer Their Services? Contributing to creating open source is great fun! Freedom to choose the projects they work on Exercise their creativity while working on projects they find interesting and fulfilling Exhibit ones skill, both for pride, as well as to find a job or consulting employment To start a business selling services to support an open source product

How Does Open Source Work? Open source means that the source code of the program is available to the public. Source code is computer code as written by humans and that is understandable by humans Anyone can obtain source code from an open source project’s Web site. Programmers alter or add to this code depending on their interests and goals Machine code Transformed source code into machine executable program code of 0 and 1 bits 1101001010010111111001110111100100011100000111111011101111100111… Not understandable by humans and cannot be modified

Source Code Sample

How Does Open Source Work? Closed source software Highly protected and only available to trusted employees and carefully vetted contractors Source code is protected like gold in a vault. Only those trusted programmers can make changes to a closed source project.

Study Questions Q6 How can you use this knowledge? Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

What Buying Decisions Do You Make? Most business professionals have some role in the specification of the client hardware and software they use. Business managers play a role in the specification of client hardware and software for employees whom they manage. The particular role depends on the policy of the manager’s organization. Large organizations will have an IS department that is likely to set formal standards for client hardware and software. In medium to small organizations, policies are often less formal, and managers will need to take an active role in setting specifications for their own and their employees’ computers.

Major Criteria for Selecting Hardware and Software Sources of System Costs

A Business Manager’s Role in Hardware and Software Specifications Figure 4-15

Medium to Small Organizations Usually standardize on a single client operating system because costs of supporting more than one are unjustifiable. Most choose Microsoft Windows clients. Some arts and design businesses standardize on the Macintosh, and some engineering firms standardize on Unix. Organizations that have limited budgets might choose to use Linux with Ubuntu and Open Office on clients, but this is rare.

Role of Managers and Employees Specifying horizontal application software, such as Microsoft Office, or other software appropriate for their operating systems Specifying requirements for vertical market or custom applications Typically no role in specification of server hardware, other than approving budget Business manager and clients (users) of a client-server application specify the requirements for vertical and custom- server software. Work with technical personnel to test and accept that software

What Process Should I Use to Establish a Computer Budget?

What Process Should I Use to Establish a Computer Budget? Determine categories of workers and software needed to access company Web portal, email, minimal word processing Identify specialists and their hardware and software needs Determine computer workload requirements for each category of workers and managers Managers need to be able to perform the same work as specialists, plus process large spreadsheets for preparing budgets, and access the company’s payroll and human resources systems. Use previous experience as a guide

What Process Should I Use to Establish a Computer Budget? Forecast changes Price hardware and software Negotiate prices (usually IT does this) Add overhead costs to budget for networks, servers, and communications Accounting department can help with cost estimates Assess budget for feasibility and reasonableness Consider your organization’s competitive strategy Prepare justifications for any increases

What Process Should I Use to Establish a Computer Budget? Reasons you may need more equipment Substantial change in your departmental head count Important new departmental functions or responsibilities Upgrading to major new versions of operating system or other software Implementation of new systems that require additional hardware Change in the way overhead expenses are allocated to your department

What Process Should I Use to Establish a Computer Budget? Review and revise budget Consider refurbished equipment Delay upgrades to new operating system Reallocate hardware among employees Document results Keep spreadsheet and notes used to prepare and justify budget

Study Questions Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Possible Responses to the Threat of Open Source Impact of open source on the software industry hard to predict How will Microsoft respond to threats to its closed source software? Could Microsoft become a service company selling software on large servers as a service? In one form of this model, customers would pay a few pennies every time they use Word or Excel. Companies like Amazon, Oracle, and recently Microsoft, have developed large server farms for leasing computing time and storage space. Such facilities are part of computing cloud. Maybe Microsoft will move Windows and Office into its cloud and require organizations to license both the hardware and software from it.

Possible Responses to the Threat of Open Source These changes, risks, and dangers are good for you. Create many opportunities for individuals versed in technology to guide their companies around the technology pitfalls and into legitimate opportunities.

Ethics Guide: Churn and Burn Mark suggests there is a conspiracy between hardware and software vendors Hardware vendors create new, faster computers Software vendors create products with more features Time-consuming to learn Features only needed by some of the users Because it’s a connected world, if one uses the feature, then others will have to use it

Ethics Guide: Churn and Burn Viruses are an example Products have defects Vendors turn these into a sales advantage Focus is on hole, not product Should users accept these problems? Should they rise up in protest? What should the vendors do?

Guide: Keeping up to Speed Technology continues to change If you don’t keep up, you might not gain a competitive advantage Managers need to understand what technology is needed. Don’t depend solely on experts Develop a competitive advantage in nontechnology areas to compensate Other extreme are the “technophiles”

Guide: Keeping up to Speed What can a manager do? Don’t ignore technology Take seminars Read articles, ads C/NET, CIO.com Wall Street Journal technology articles Attend professional events Get involved as a user representative in technology committees

Guide: Questioning Your Questions For most problems in the business world, the difficult and creative acts are generating the questions—and formulating a strategy for getting the answers. Once the questions and strategy are set, the rest is simply legwork. As a future consumer of information technology and services, you need to be able to ask good questions and effectively obtain answers to them. Rapidly changing technology will require you to learn about new IS alternatives and how you can apply them in your business.

Guide: Questioning Your Questions Questions can be bad in three ways: Irrelevant Answer won’t tell you why Dead Provides no insight into subject Asked of the wrong source Don’t ask “What is it?” questions of valuable or expensive sources “How can I use it? Is it the best choice for our company or situation?”

Guide: Questioning Your Questions As you progress in your educational career, you should be learning how to discern the quality of judgment and evaluative answers. Learn to question your questions

Active Review Q1 What do business professionals need to know about computer hardware? Q2 What is the difference between a client and a server? Q3 What does a business professional need to know about software? Q4 Why are thin clients preferred to thick clients? Q5 Is open source software a viable alternative? Q6 How can you use this knowledge? Q7 2020?

Case Study 4: Dell Leverages the Internet, Directly, but for How Long? (Video) Dell changed the way computers were sold by lowering cost of distribution and sales and dramatically lowered prices. Most important thing was they listened very carefully to customers. Eliminated retail stores reduced costs, and brought Dell closer to the customer, enabling it to listen better than the competition. Eliminated sales channel inventories, which allowed Dell to rapidly bring new computers with new technology to the customer faster. One of the most efficient supply chains in the industry. Offers additional services to maintain and manage Dell systems once they have been deployed.

Case Study 4: Dell Leverages the Internet, Directly, but for How Long? Dell reported that first-quarter earnings had fallen 63 percent compared to a year earlier, and sales had dropped 23 percent. Prior quarter down 48 percent from same quarter a year before. Economy is responsible for some of the decline, and some of it due to customers waiting to buy PCs after Windows 7 came out later in the year. Another financial issue troubling Dell: Components of PCs seem to be selling, but not PCs themselves. What might this mean?

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