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

4. Chapter 11
Understanding Software: A Primer for Managers

5. 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.

6. 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.

7. 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

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

9. 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.

10. 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.

11. 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.

12. 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

13. 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

14. 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.

15. 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.

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

17. 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.

18. 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

19. 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.

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

21. 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

22. 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.

23. 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.

24. 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.

25. 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.

26. 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

27. 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

28. 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.

29. 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

30. 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