1. Chapter Extension 4 Preparing a Computer Budget © 2008 Pearson Prentice Hall,Experiencing MIS, David Kroenke

2. CE 4-2 Study Questions Is $80,000 enough? What process should I use for establishing a budget? What hardware do we need? What software do we need? How do I plan for change? What is the role of the IT department? Is $80,000 enough?

3. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-3 Is $80,000 Enough? Managers need to carefully consider budgets – Do not want to go over budget – Must control costs – Need to justify expenditures

4. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-4 Processes for Establishing a Budget Figure CE4-1

5. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-5 What Hardware Do We Need? Laptop or desktop? CPU Main memory Magnetic disks Video displays

6. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-6 Laptop Vs. Desktop Laptops – Portable – Force many components into small shell – Heat dissipation problems Desktops – Cheaper – More reliable

7. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-7 CPU Useful for processing data that already resides in main memory Fast CPU needed for: – Complicated calculations and manipulations of data – Processing large graphics files

8. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-8 Main Memory More important than CPU Key performance factors are speed and size – Cannot change speed – Can increase amount of memory More memory beneficial if: – You run different applications at same time – Your computer is constantly swapping files

9. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-9 Magnetic Disks Provide long-term, nonvolatile storage Type and size affect performance Magnetic disks – Data recorded in concentric circles – Disks spin inside disk unit – Read or write by read/write head Time required to read data depends on: – Rotational delay – Seek time Data transfer depends on width and speed of channel

10. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-10 Optical Disks Two types: – CDs – DVDs Store data differently Different capacities and speed ROM = read-only memory R = record data once RW = rewritable

11. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-11 Video Displays Two types: – CRTs Cathode ray tubes Big and bulky Cost less – LCDs Liquid crystal display Slimmer Last longer

12. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-12 Pixels Small spots on screen displayed by monitors Represented in main memory Number depends on size of monitor and mechanism that creates image Optimal resolution – Size of pixel grid that gives best sharpness and clarity

13. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-13 Network Access NIC device – Support wired or wireless connections – Many computers support both types of connections – Can add device if needed – Easy upgrade

14. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-14 Printers Can be attached to computer – Accessed via that computer Can be equipped with NIC – Accessed directly – Frees up computer

15. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-15 What Software Do We Need? Figure CE4-4

16. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-16 Software May be included in purchase of hardware Site license – License to place software product on all equipment at site – Per unit price is less than unit retail price – Organization doesn’t have to track which computers have software installed Upgrade – Vendors allow users to purchase new version at reduced cost or for free

17. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-17 Operating Systems Usually determined by organizational policy Usually standardized to single system IT department installs software and upgrades in most businesses

18. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-18 Horizontal Market Software Microsoft Office – Licensed in different configurations – Access OpenOffice – Open-source – License-free – Popular with cost-conscious – No personal DBMS

19. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-19 Vertical Market Software Contact managers – Goldmine – Act! Engineering software – AutoCad Licenses can be expensive – User licenses – Seat licenses

20. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-20 How Do I Plan for Change? Will there be changes in the number of employees in each job category? Will there be changes in your departmental responsibilities? Will changes produce different hardware and software requirements? Will there be a merger with or acquisition of another department? Will the vendor stop supporting a particular product that you use?

21. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-21 How Do I Plan for Change? (continued) Do you need to upgrade software? Do you need to upgrade hardware to support new software? Do you need to rotate computers?

22. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-22 What Is the Role of the IT Department? Help desk – Assists end users Maintains networks and servers Administers databases Plans IT Develops and installs new systems Provides secure computing environment Sets standards

23. © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke CE 4-23 Active Review Is $80,000 enough? What process should I use for establishing a budget? What hardware do we need? What software do we need? How do I plan for change? What is the role of the IT department? Is $80,000 enough?