1. PART II: Next Three Chapters
Chapter 4: Hardware and Software
Defines basic terms and fundamental computing concepts
Chapter 5: Database Processing
Essential database terminology, techniques for processing databases and data modeling
Chapter 6: Data Communication and the Cloud
Describes data communications and Internet technologies

2. GearUp Scenarios Chapter 4: Hardware and Software
GearUp has important decisions to make about critical software development project
Chapter 5: Database Processing
GearUp does not have the easy access to data needed to analyze vendor quality and costs
Chapter 6: Data Communication and the Cloud
GearUp needs to make decisions about building infrastructure for the next stage of its growth
GearUp needs to understand advantages and disadvantages of cloud-based computing

3. Chapter 4 Hardware and Software
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99258

4. "... if we don’t have an iPad App, we don’t have a business."
GearUp not competitive because they don’t have iPad app
Don’t know what they’re doing and could waste a lot of money and time
Outsourcing to India? Open source?
Need to find out what others have done
Conflict between low cost and technical competitiveness

5. 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.

6. Study Questions
Q1: What do business professionals need to know about computer hardware? Q2: What do business professionals need to know about software? Q3: Is open source software a viable alternative? Q4: How can you use this knowledge? Q5: 2022?

7. Four Categories of Basic Computer Components
Hardware includes the electronic components that input, process, output, and store data according to instructions encoded in computer programs or software.
The basic components of a computer are divided into four categories.
Input hardware includes keyboards, mice, scanners, microphones, and even 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 are also in this category.
Output hardware includes video displays, printers, audio speakers, overhead projectors, and special-purpose devices.
Storage hardware includes magnetic disks, optical disks, and magnetic tape.

8. Two Types of Storage Primary or Internal storage (memory)
Secondary or External storage (memory)
Is hard drive an internal storage?

9. SYSTEM MODEL INPUT PROCESS OUTPUT FEEDBACK
A system is a group of components that interact to achieve some purpose.

10. Computer System Concepts
“the brain” of the computer
(RAM)

11. Q1: What Do Business Professionals Need to Know About Computer Hardware?
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

12. How data are represented in computers?
Because the most basic unit of electric device has only two states (on/off),
data (symbols) must be represented in the form of combinations of these two states.
# of bulb
# of states On
Off 2 4 8
Question:
How many symbols we need daily?
How many bulbs should be used to represent them?

13. Bits vs. Bytes 1 Byte = 1 character = 1 kilobyte =
1024 bytes = 29 bytes
1 megabyte (MB) = 1024 K bytes
1 gigabyte (GB) = 1024 MB
1 terabyte (TB) = 1024 GB

14. Computer Data: Binary Digits
Computers use binary digits, or bits, to represent data. Each bit is either a zero or a one.
Fig 4-4 Bits are Easy to Represent Physically
Fig 4-3 Bits are Easy to Represent Physically

15. VIDEOS
Video: Binary Numbers (6m 3s)

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

17. In Fewer Than 300 Words, How Does a Computer Work?
Fig 4-5 Computer Components in Use

18. How Does a Computer Work?
Main memory (RAM)
Program instructions
Contains Operating System (OS)
Program that controls computer’s resources and blocks of data
Provides services to application programs and users
Cache memory, part of CPU, is very fast memory used to store frequently used instructions in order to speed up processing.
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.

19. Memory Swapping
When RAM is too small to hold all open programs and data for processing.
CPU loads programs into memory in chunks (segments). Then, uses memory swapping to move chunks of instructions and data in and out of main memory.
If not enough RAM is available, operating system swaps out existing instructions, or data, to a disk and copies requested program, or data, to freed space
Swapping slows down computer

20. 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.
Simple tasks do not need fast CPU
64-bit dual processor, 8+GB RAM for large, complicated spreadsheets, large database files, large picture, sound, movie files
Cache and main memory are volatile, so save frequently.

21. 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 (2011).
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.

22. 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.

23. What Is Difference Between a Client and a Server?
Fig 4-6 Client & Server Computers

24. What Types of Applications Exist, and How Do Organizations Obtain Them?
Fig 4-13 Software Sources and Types

25. What Is Firmware? Definition:
Computer software installed on read-only memory (ROM)
Firmware is software that is embedded in a piece of hardware.
You can think of firmware simply as "software for hardware." Devices that you might think of as strictly hardware such as optical drives, a network card, a router, or a scanner all have software that is programmed into special memory contained in the hardware itself.
Other examples:
Printers, print servers, communication devices
Coded like other software
Can be changed and upgraded

26. DATABASE TRENDS Linking Internal Databases to the Web N
Database server
-- a computer in a C/S environment that is responsible for running a DBMS to process SQL statements and perform database management tasks.
Application server
-- Software that handles all application operations between browser-based computers and a company’s back-end business applications or databases. (p.239, Laudon 5th ed.)
-- It provides integration across services, such as transaction processing. (e-C by Turban) N

27. Web-Based Client/Server Database Architecture
2. Request for
data-based Web page
1. Request for
data-based Web page
Web server
Network
3. Data query
Web Browser
8. Data-based
Web page
6. Retrieved data
7. Data-based
Web page
4. Data
query
5. Retrieved
data
Database Server
Legend
Communications
Between Web browser
And Web server
Between Web server
And database server

28. Clients and Servers Client computers Server 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 ; serving pages on a Web site; processing large, shared databases; or other functions) to multiple users.

29. 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

30. Clients and Servers Server farm
An organized collection of servers (Figure 4-7).
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 November 2010, Amazon.com processed an average of 158 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.

31. A Server Farm

32. Q2: What a Manager Needs to Know About Software
There are two types of computer software.
Operating system software controls computer resources. It’s hardware specific and includes a specific instruction set based on the computer’s processor. Windows XP is an example.
Application program software helps users accomplish tasks like word processing or database management. Programs such as Microsoft Word or Excel examples.
Fig 4-8 Category of Computer Software

33. What are the major O.S.?
[1]
[2]
[3]
Fig 4-9

34. Own Versus License License Right to use specified number of copies
Limits vendor’s liability
Site License
Flat fee to install software product on all company computers or all computers at a specific site
Open Source
No license fee

35. Types of Virtualization
PC virtualization
Personal computer hosts several different operating systems
Server virtualization
Server computer hosts other server computers
Makes cloud computing feasible
Virtual desktop
Allows access from any computer a user has authorization to use

36. Windows Server Computer Hosting Two Virtual Machines
Virtualization
Windows Server Computer Hosting Two Virtual Machines
Fig 4-10

37. Virtualization (cont’d)
How Virtual Machine VM3 Appears to a User
Fig 4-11

38. Virtual Companies (Portable Computing)
A Virtual Company is an Organization composed
of several Business Partners that Uses
Information Technology to Link/Share People,
Assets, Ideas, Costs, and Resources
for the purpose of producing a product or service.
Virtual Companies are Adaptable and Opportunity-
Exploiting Organizations Providing World-Class
Excellence in Their Competencies and
Technologies.

39. Characteristics of Virtual Companies
Excellence
Borderless
Adaptability
Six
Characteristics
of Virtual
Companies
“Virtual corporations” - organizations comprising many small, independent agents (or firms) serving as nodes on an information network, thereby allowing small, entrepreneurial units to achieve dramatic increases in scope and scale.
A Virtual Company is an Organization composed of several Business Partners that Uses Information Technology to Link/Share People, Assets, Ideas, Costs, and Resources for the purpose of producing a product or service.
Virtual Companies are Adaptable and Opportunity- Exploiting Organizations Providing World-Class Excellence in Their Competencies and Technologies.
(Excellence, Adaptability, Borderless, Opportunism, Technology, Trust-Based)
Such arrangements challenge both our legal and social definitions of an organization.
Just as IT has radically altered how we view the relationships between firms, it also challenges our notion of relationships within them -- telework, telcommute
creates (conditions)
IT > Changes
>
manages (as a tool)
(p.352)
Opportunism
Trust-Based
Technology N

40. 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

41. 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)

42. 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

43. How Do Thin Clients Compare to Thick Clients?
Fig 4-12 Thin and Thick Clients

44. What Types of Applications Exist, and How Do Organizations Obtain Them?
Fig 4-13 Software Sources and Types

45. What Is Firmware? Computer software installed on read-only memory
Printers, print servers, communication devices
Coded like other software
Can be changed and upgraded

46. Q3: Is Open Source Software a Viable Alternative?
GNU general public license agreement
Standard for open source software
Successful open source projects
OpenOffice (Microsoft Office look-alike)
FireFox (Web browser)
MySQL (DBMS, see Chapter 5)
Apache (Web server, see Chapter 8)
Ubuntu (Windows-like desktop operating system)
Android (mobile-phone operating system)
GNU: a set of tools originally developed by Richard Mathew Stallman
A self-referential acronym meaning GNU

47. Why Do Programmers Volunteer Their Services?
It’s fun
Freedom to choose projects
Exercise creativity on interesting and fulfilling projects
Exhibit one’s skill to get a job
Start a business selling services

48. How Does Open Source Work?
Collaboration of many programmers
Examines source code and identifies a need, creates new feature or redesigns existing feature, or fixes a problem
Code evaluated and extended by others
Iteration, peer reviews and well-managed project yield high-quality code

49. So, Is Open Source Viable?
Depends on requirements and constraints of situation.
“Free” open source software still requires support and operational costs that could cost more than a licensing fee.
Future will involve a blend of both proprietary and open source software.

50. Q4: How Can You Use This Knowledge?
What Buying Decisions Do You Make?
Specification of client hardware and software
Specification of client hardware and software for employees
Large organizations, _____________ sets formal standards
Medium to small organizations, _________ take active role in setting specifications
IS department
managers

51. Sources of System Costs
Fig 4-15: Sources of System Costs

52. Business Manager’s Role in Hardware and Software Specifications
The type of buying decisions you may make as a business manager depends on the size of your organization and the type of hardware and software your employees need.
Fig 4-16 Business Mgr’s Role in Hardware & Software Specifications
4-52

53. What Process Should You Use to Establish a Computer Budget?
Fig 4-17 A Process for Preparing a Departmental IT Budget

54. What Process Should You Use to Establish a Computer Budget? (cont’d)
Reasons you may need more equipment
Substantial change in head count
Important new departmental functions or responsibilities
Upgrading to major new versions of operating system or other software
Implementation of new systems requires additional hardware
Change in overhead expense allocation

55. What Process Should You Use to Establish a Computer Budget? (cont’d)
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

56. Q5: 2022?
Can Microsoft take Office 365 into mobile market via its Skype acquisition?
PC mules will be rare
Large-screen computing/connectivity devices available everywhere
Use a public device and connect to cloud
Won’t need desktop office applications
Cost performance issues of desktop virtualization will be gone

57. End of Chapter 4