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What is Information?before we really talk about Information SystemsInformation is:Knowledge derived from data.Data presented in a meaningful context.Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations.A difference that makes a difference.ProcessingData(input)Information (output)Data vs. InformationDataraw factsno contextjust numbers and textInformationdata with contextprocessed datavalue-added to datasummarizedorganizedanalyzed0Data vs. InformationData: 51009Information:5/10/09$51,00951009 Zip Code of Gary Indiana

Calumet Indiana4Data vs. InformationData6.346.456.396.626.576.646.716.827.127.06

InformationData Information KnowledgeDataInformationSummarizing the dataAveraging the dataSelecting part of the dataGraphing the dataAdding contextAdding valueData Information KnowledgeInformationKnowledgeHow is the info tied to outcomes?Are there any patterns in the info?What info is relevant to the problem?How does this info effect the system?What is the best way to use the info?How can we add more value to the info?What is Information?1-8Information vs. Data is Subjective

What some people consider information, others think of as raw data.

Context changes occur in information systems when the output of one system is input to another systemWhat is Information?1-9Information is SubjectiveData in a manufacturing system may be very important to that system. When its combined with data from other systems, it may lose its prominence in the larger context.Manufacturing ISFinancial ISSales ISRaw sales Demand ForecastRaw parts inventor Production Forecast

Expected Profits

9One Users Information is Another Users Data1-10

Characteristics of Good Information?1-11Accurate entering incorrect sales data creates false information.

Timely knowing that production doesnt have enough raw materials for next weeks schedule wont be useful information three weeks from now.

Relevant if your boss needs to know how many shipments were late last month, you shouldnt give him a list of all items that shipped.

Worth its cost is it cost worthy to map out the entire U.S. if you only need one state?

These are just a few characteristics that are important...Information Technology vs. Information Systems?1-12Because many people confuse the two terms, compare what each one consists of and how the two differ.

Information technology drives the development of new information systems.Information Systems include five componentsHardwareSoftwareDataProceduresPeople Information technology pertains to New Products New Methods Inventions StandardsInformation Technology vs. Information Systems?1-13

Hardware and Software Basics14Hardware Components15Central processing unit (CPU)Arithmetic/logic unit (ALU): performs calculations and makes logical comparisonsControl unit: accesses, decodes and coordinates data in CPU and other devicesPrimary memory: holds program instructions and data for processing Secondary storage: more permanent storageInput and output devicesCommunications devices15Hardware Components (continued)

16Figure 2.1: Hardware Components16Processing and Memory Devices: Power and Speed17System unitHouses the components responsible for processing (the CPU and memory) All other computer system devices are linked either directly or indirectly into the system unit housingClock speedseries of electronic pulses produced at a predetermined rate that affects machine cycle timeClock speed is often measured in megahertz (MHz) for millions or gigahertz(GHz) for billions of cycles per second

17Memory and Storage Characteristics and Functions18Types of Memory Random access memory (RAM)TemporaryVolatileRead-only memory (ROM)Usually nonvolatileSecondary storageAlso called permanent storageNonvolatileGreater capacity and greater economy than memoryMeasured in bytes: kilo, mega, giga, teraDifferent access methodsSequential access: data must be accessed in the order in which it is storedSequential access storage devices (SASDs)Direct access: data can be retrieved in any orderDirect access storage devices (DASDs)

18Secondary Storage Devices19Magnetic tapesSecondary storage used primarily for backupsMagnetic disksDirect access secondary storage, e.g., hard diskRAIDStores extra bits so that data can be reconstructed if system failsSANProvides high-speed connections between data storage devices and computers over a network Optical disksDirect access optical disc, e.g., CD-ROMDigital video disk (DVD)Stores several gigabytes of dataFlash memoryNonvolatile silicon computer chip

19Input Devices20Personal computer input devicesKeyboard, mouseSpeech-recognition technologyInput devices that recognize human speech bDigital camerasInput device used with PC to record/store images in digital formTerminalsInput and display devices that perform data entry and input at the same timeTouch-sensitive screensAllow display screens to act as input devices as well as output devicesBar-code scannersEmploys a laser scanner to read a bar-coded labelMagnetic ink character recognition (MICR) devicesCode data on banking forms, such as checks Pen input devicesActivate a command, enter handwritten notes, and draw objectsRadio Frequency Identification (RFID)Employs a microchip with an antenna to broadcast its unique identifier and location to a receiver

20Output Devices 21Display monitors (CRTs)Output quality measured by number of pixels and dot pitchLiquid crystal displays (LCDs)Easier on eyes, use less electricity, take up less space than CRTsOrganic light-emitting diodes (OLEDs)Directly emits light rather than using backlightSharper colors and thinner displays Printers and plotters: hard copy outputPrinters: laser, inkjet Plotters: used for general design workDigital audio playerStores, organizes, and plays digital music files

21Overview of Software 22Computer programs: sequences of instructions for the computerDocumentation: describes program functions Systems software: coordinates the activities of hardware and programsApplication software: helps users solve particular problems22Systems SoftwareControlling operations of computer hardwareSupports application programs problem-solving capabilitiesDifferent types of systems software include:Operating systems programs that control the hardware and interface with applicationsCommon hardware functionsGet input (e.g., keyboard)Retrieve data from disks and store data on disksDisplay information on a monitor or printerUser interfaceAllows individuals to access and command the computer systemCommand-based user interface: uses text commandsGraphical user interface (GUI): uses icons and menus to send commands to the computer systemUtility programs

Application Software24Give users the ability to solve problems and perform specific tasksInteract with systems software; systems software then directs the hardware to perform tasksProprietary software: unique program for a specific application, usually developed and owned by a single companyOff-the-shelf software: existing software program that can be purchasedCustomized package

24Personal Application Software25Serves the needs of an individual userIncludes personal productivity softwareEnables users to improve their personal effectiveness

25Personal Application Software (continued)

26Table 2.7: Examples of Personal Productivity Software26Personal Application Software (continued)

27Table 2.7: Examples of Personal Productivity Software (continued)27Workgroup Application Software28Workgroup application software: support teamwork, whether people are in the same location or dispersed around the worldGroupware: software that helps groups of people work together more efficiently and effectively28Enterprise Application Software29Software that benefits an entire organizationEnterprise resource planning (ERP) software: programs that manage a companys vital business operations for an entire multisite, global organization

29Enterprise Application Software (continued)30

Table 2.10: Examples of Enterprise Application Software30Information, Decision Support,and Specialized Software31Used in businesses of all sizes and types to increase profits or reduce costsAvailable in every industryExample: analysis to increase the cure rate for cancerData ManagementData Management33Without data and the ability to process it, an organization could not successfully complete most business activitiesData consists of raw factsFor data to be transformed into useful information, it must first be organized in a meaningful way

The Hierarchy of Data34Bit (a binary digit): a circuit that is either on or offByte: eight bitsCharacter: basic building block of informationEach byte represents a character Can be an uppercase letter, lowercase letter, numeric digit, or special symbolField: typically a name, number, or combination of characters that describes an aspect of a business object or activityRecord: a collection of related data fieldsFile: a collection of related recordsDatabase: a collection of integrated and related filesHierarchy of data: bits, characters, fields, records, files, and databases

34The Hierarchy of Data

35Figure 3.1: The Hierarchy of Data35Data Entities, Attributes, and Keys36Entity: a generalized class of people, places, or things (objects) for which data is collected, stored, and maintainedAttribute: characteristic of an entity Data item: value of an attributeKey: field or set of fields in a record that is used to identify the recordPrimary key: field or set of fields that uniquely identifies the record36Data Entities, Attributes, and Keys

37Figure 3.2: Keys and Attributes37 The Database Approach38Traditional approach to database management separate data files are created for each applicationResults in data redundancy (duplication)Data redundancy conflicts with data integrityDatabase approach to database management:pool of related data is shared by multiple applicationsSignificant advantages over traditional approach38The Database Approach to Data Management

39Figure 3.3: The Database Approach to Data Management39Database Management Systems (DBMS)40Interface between:Database and application programs Database and the userCreating and implementing the right database system ensures that the database will support both business activities and goalsDBMS: a group of programs used as an interface between a database and application programs or a database and the user

40Overview of Database Types41Flat fileSimple database program whose records have no relationship to one anotherSingle userOnly one person can use the database at a timeExamples: Access, FileMaker, and InfoPathMultiple userAllows dozens or hundreds of people to access the same database system at the same timeExamples: Oracle, Sybase, and IBMDistributed Databases42Distributed databaseData may be spread across several smaller databases connected via telecommunications devicesCorporations get more flexibility in how databases are organized and usedReplicated databaseHolds a duplicate set of frequently used data42TelecommunicationsBasic Concepts of Telecommunications44Telecommunications: electronic transmission of signals for communicationsComputer network: communications media, devices, and software needed to connect two or more computer systems or devicesNetwork types: personal area network (PAN), local area network (LAN), metropolitan area network (MAN), wide area network (WAN), and international networksGrow, growing, grooooooowingUsers in almost 200 countries around the world are now connected to the Internet.

45The Internet46Internet: collection of interconnected networks, all freely exchanging informationInternet Protocol (IP): communication standard that enables traffic to be routed from one network to another as neededUniform Resource Locator (URL): an assigned address on the Internet for each computer

Business Networks47Intranet: internal corporate network built using Internet and World Wide Web standards and protocolsExtranet: network based on Web technologies that links selected resources of a companys intranet with its customers, suppliers, or other business partnersSystems DevelopmentAn Overview of Systems Development49Managers and employees in all functional areas work together in a business information systemUsers help and often lead the way with development processParticipants in systems development: Determine when a project failsAre critical to systems development success49Participants in Systems Development50Development team consists of the following:Project managers: coordinate system development effortStakeholders: directly or indirectly benefit from the projectUsers: interact with the system regularlySystems analysts: analyze and design business systemsProgrammers: modify or develop programs to satisfy user requirementsVarious support personnel: specialists, vendors

50Information Systems Planning and Aligning Corporate and IS Goals51Information systems planning: translating strategic and organizational goals into systems development initiativesAligning organizational goals and IS goals is critical for any successful systems development effortDetermining whether organizational and IS goals are aligned can be difficult

51Information Systems Planning and Aligning Corporate and IS Goals (continued)

52Figure 8.2: Information Systems Planning52Systems Development Life Cycles53The systems development process is also called a systems development life cycle (SDLC)Common SDLCsPrototypingRapid application development (RAD) Systems development approach that employs tools, techniques, and methodologies designed to speed application developmentEnd-user development any systems development project in which the primary effort is undertaken by a combination of business managers and users

53Systems Development Activities54Systems investigation: problems and opportunities are identified and considered in light of the goals of the businessSystems analysis: study of existing systems and work processes to identify strengths, weaknesses, and opportunities for improvementSystems design: defines how the information system will do what it must do to obtain the problem solutionSystems implementation: creation or acquisition of various system components detailed in the systems design, assembling them, and placing the new or modified system into operationSystems maintenance and review: ensures that the system operates as intended and modifies the system so that it continues to meet changing business needs

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The Principles of Information TechnologyThe Benefits of Information Technology55

Attributes of Information Quality56

1Organizational Dimensions of Information1-57

What is Information?before we really talk about Information SystemsInformation is:Knowledge derived from data.Data presented in a meaningful context.Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations.A difference that makes a difference.ProcessingData(input)Information (output)Data vs. InformationDataraw factsno contextjust numbers and textInformationdata with contextprocessed datavalue-added to datasummarizedorganizedanalyzed0Data vs. InformationData: 51009Information:5/10/09$51,00951009 Zip Code of Gary Indiana

Calumet Indiana60Data vs. InformationData6.346.456.396.626.576.646.716.827.127.06

InformationData Information KnowledgeDataInformationSummarizing the dataAveraging the dataSelecting part of the dataGraphing the dataAdding contextAdding valueData Information KnowledgeInformationKnowledgeHow is the info tied to outcomes?Are there any patterns in the info?What info is relevant to the problem?How does this info effect the system?What is the best way to use the info?How can we add more value to the info?What is Information?1-64Information vs. Data is Subjective

What some people consider information, others think of as raw data.

Context changes occur in information systems when the output of one system is input to another systemWhat is Information?1-65Information is SubjectiveData in a manufacturing system may be very important to that system. When its combined with data from other systems, it may lose its prominence in the larger context.Manufacturing ISFinancial ISSales ISRaw sales Demand ForecastRaw parts inventor Production Forecast

Expected Profits

65One Users Information is Another Users Data1-66

Characteristics of Good Information?1-67Accurate entering incorrect sales data creates false information.

Timely knowing that production doesnt have enough raw materials for next weeks schedule wont be useful information three weeks from now.

Relevant if your boss needs to know how many shipments were late last month, you shouldnt give him a list of all items that shipped.

Worth its cost is it cost worthy to map out the entire U.S. if you only need one state?

These are just a few characteristics that are important...Information Technology vs. Information Systems?1-68Because many people confuse the two terms, compare what each one consists of and how the two differ.

Information technology drives the development of new information systems.Information Systems include five componentsHardwareSoftwareDataProceduresPeople Information technology pertains to New Products New Methods Inventions StandardsInformation Technology vs. Information Systems?1-69Moores LawThe number of transistors per square inch on an integrated chip doubles every 18 months.

Dramatic Reduction in Price/Performance RatioRatio fallen dramatically for over 40 years and is estimated to continue to fall in accordance with Moores Law.

Enabled developments such as:Laser printers, Graphical user interfaces, High-speed communications, Cell phones, PDAs, Email, InternetInformation Technology vs. Information Systems?1-70

Whats in that cloud anyway?A quick trip inside the internet cloudEvolution of Technology

71Evolution of Technology

72Not-so-Famous Last Words"I think there is a world market for maybe five computers.~Thomas Watson, Chairman of IBM, 1943

73What Is the Internet?A network of networks, joining manygovernment, university and private computers together and providing an infrastructure for the use of E-mail, bulletin boards, file archives, hypertext documents, databases and other computational resources

The vast collection of computer networks which form and act as a single huge network for transport of data and messages across distances which can be anywhere from the same office to anywhere in the world.

Written by William F. Slater, III 1996President of the Chicago Chapter of the Internet SocietyCopyright 2002, William F. Slater, III, Chicago, IL, USA745Simply the internet it:The largest network of networks in the world.Uses TCP/IP protocols (Transmission Control Protocol/Internet Protocol) and packet switching.Runs on any communications substrate.From Dr. Vinton Cerf, Co-Creator of TCP/IP

75A Brief Summary of the Evolution of the Internet19452007Memex Conceived1945WWWCreated1989MosaicCreated1993A MathematicalTheory of Communication1948First Vast ComputerNetworkEnvisioned1962ARPANET1969TCP/IPCreated1972InternetNamed and Goes TCP/IP1984HypertextInvented1965Age ofeCommerceBegins1995Copyright 2002, William F. Slater, III, Chicago, IL, USAInternet Boom & Bust2001

SiliconChip1958Web 2.02003 2007Packet Switching Invented1964

76Early Developers

Vannevar BushClaude ShannonJ. C. R. Licklider

Paul Baran

Ted Nelson

Leonard Kleinrock

Lawrence Roberts

Steve Crocker

Jon Postel

Vinton Cerf

Robert Kahn

Tim Berners-LeeMark Andreesen

Esther Dyson

Bob Metcalfe

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You are here78Historical ContextInvented in the late 50s, Bob Taylor, JCR Licklider, Ivan Sutherland, Larry Roberts, Alan Kay et alBig ideas: packet switching, self contained messagesThe Internet got started as the Arpanet inherently decentralized designed to survive atomic attackdesigned to scale in a biological manner

79Apranet: Advanced Research Projects Agency Network created by the PentagonDecentralized to ensure that there were secure and survivable communications network that would still function if parts of it were destroyed or unavailable.

Packet switching is the breaking down of data into datagrams or packets that are labeled to indicate the origin and the destination of the information and the forwarding of these packets from one computer to another computer until the information arrives at its final destination computer. This was crucial to the realization of a computer network. If packets are lost at any given point, the message can be resent by the originator."

Humble beginningsThe first ARPANET connections are made. BBN builds each machine, which is a Honeywell DDP-516 minicomputer with 12K memory, set with 50 kbps lines, which AT&T provides. Node 1: UCLA (September) Node 2: Stanford Research Institute (SRI) (October) Node 3: University of California Santa Barbara (UCSB) (November) Node 4: University of Utah (December)

Bring on the applicationsEmail is the first killer app, and was added right awaySMTP - Simple Mail Transfer ProtocolPOP3 - Post Office Protocol v3Other document transfers were invented over time:FTP - File Transfer ProtocolNNTP (Netnews) - threaded discussionsGopher - text search and archiveTelnet- allows a user to log-in to a remote computerand many more

80The first e-mail program was created by Ray Tomlinson of BBN.

Power to the people1992 - The first audio and video broadcasts take place over the "MBONE." More than 1,000,000 hosts are part of the Internet.Let there be browsers - HTML display applications that use HTTPto send and receive stuff

1993 - Mosaic, the first graphical user interface to the WWW developed by Marc Andreessen and NCSA and the University of Illinois becomes availableLater developed NETSCAPE Traffic on the Internet expands at a 341,634% annual growth rate.

81Time Magazine (Jan. 3) announces "the Computer" as the Man of the Year. 1994 MBONE audio multicast is made by the Rolling Stones for the Voodoo Lounge tour. (49)Yahoo!, which stands for "Yet Another Hierarchical Officious Oracle" is founded by two PhD students from Stanford, Jerry Yang and David Filo. (50)

Internet Growth Trends1977: 111 hosts on Internet1981: 213 hosts1983: 562 hosts1984: 1,000 hosts1986: 5,000 hosts1987: 10,000 hosts1989: 100,000 hosts1992: 1,000,000 hosts2001: 150 175 million hosts2002: over 200 million hostsBy 2010, about 80% of the planet will be on the Internet

82By September 2002

> 200,000,000 IP Hosts> 840,000,000 UsersNetsizer.com from TelcordiaThe Internet Reached TwoImportant Milestones:83Web 2.0second generation of Web-based services Communication toolsCollaborative technologiesSocial networking sites

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85"Web 2.0 is the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. Chief among those rules is this: Build applications that harness network effects to get better the more people use them.

~ Tim OReilly

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Social EnviornmentsWikipediaThe biggest multilingual free-content encyclopedia on the Internet. Over two million articles and still growing. Bloguser-generated website where entries are made in journal style (WEB LOG)Flickrphoto sharing website and web services suite, and an online community platform, uses tags

89Social EnviornmentsMy Spacesocial networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music and videos 106 million accounts as of September 8, 2006230,000 new registrations per day Flickrphoto sharing website and web services suite, and an online community platform, uses tagsCraigs Listcentralized network of online urban communities, featuring free classified advertisements (with jobs, housing, personals, for sale/barter/wanted, services, community, gigs and resumes categories) and forums sorted by various topicsover 5 billion page views per month to 10 million unique visitors 34th place overall among web sites world wide8th place overall among web sites in the United States

90Social EnvironmentsYouTubepopular free video sharing website which lets users upload, view, and share video clips purchased in Nov 2006 by google for $1.65 Billion in google stockJudson LaipplyEvolution of Dance clip, which is the #1 Most Viewed All Time Video, #1 Top Favorites Video and #4 Most Discussed Video on YouTube.comamassed over 10 millions views in under two weeks was featured on CNN, MSN, E!, USA Today, Good Morning America, The Today Show, AOL, and GoogleAs of January 29, 2007, the number of views on YouTube.com hit 40 million.

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Social EnviornmentsDel.icio.usa social bookmarking web service for storing, sharing, and discovering web bookmarks.

ePortfoliosa web-based information management system that uses electronic media and services built and maintained by the learner used, in part, to demonstrate competence, store research materials and reflect on learning.

92What is a WIKI?About WIKIswebsite that allows the visitors themselves to easily add, remove, and otherwise edit and change available content, typically without the need for registration. ease of interaction and operation makes a wiki an effective tool for mass collaborative authoring

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94And nowhow to harness this expansive resource

95Questions?World Wide Web

96Material fromFundamentals of Information Systems, Fourth EditionBy Ralph Stair and George Reynolds

97Basics of Information Systems Information Concepts: Data, Information, and Knowledge98Data: raw factsAlphanumeric, image, audio, and videoInformation: collection of facts organized in such a way that they have additional value beyond the value of the facts themselvesValue of Information is directly linked to how it helps decision makers achieve their organizations goals and can be measuredin time required to make a decisionIncreased profits to the company

98 99

Figure 1.2: The Process of Transforming Data into InformationData, Information, and Knowledge99The Characteristics of Valuable Information100

Table 1.2: Characteristics of Valuable Information100The Characteristics of Valuable Information (continued)101

Table 1.2: Characteristics of Valuable Information (continued)101What Is an Information System? 102

Figure 1.3: The Components of any Information System102Computer-Based Information Systems103Computer-based information system (CBIS): single set of hardware, software, databases, telecommunications, people, and procedures configured to collect, manipulate, store, and process data into information

103Computer-Based Information Systems104CBIS componentsHardware: computer equipment used to perform input, processing, and output activitiesSoftware: computer programs that govern the operation of the computerDatabase: organized collection of facts and informationTelecommunications: electronic transmission of signals for communicationsNetworks: connect computers and equipment in a building, around the country, and around the world104Business Information Systems105Most common types of information systems used in business organizationsElectronic and mobile commerce systemsTransaction processing systemsManagement information systemsDecision support systemsSpecialized business information systems105Electronic and Mobile Commerce106E-commerce: any business transaction executed electronically between partiesCompanies (B2B)Companies and consumers (B2C)Consumers and other consumers (C2C)Companies and the public sectorConsumers and the public sector106Transaction Processing Systems107Transaction: business-related exchangePayments to employeesSales to customersPayments to suppliersTransaction processing system (TPS): organized collection of people, procedures, software, databases, and devices used to record completed business transactions

107Additional Business Information Systems108Management Information Systems (MIS)provide routine information to managers and decision makersKnowledge Management Systems (KMS)create, store, share, and use the organizations knowledge and experienceArtificial intelligence (AI)field in which the computer system takes on the characteristics of human intelligenceDecision support system (DSS) used to support problem-specific decision making

1085Chapter IT Infrastructure and Emerging Technologies109LEARNING OBJECTIVESManagement Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesDefine IT infrastructure and describe its components.Identify and describe the stages of IT infrastructure evolution.Identify and describe the technology drivers of IT infrastructure evolution.Assess contemporary computer hardware platform trends.Assess contemporary software platform trends.Evaluate the challenges of managing IT infrastructure and management solutions.110DreamWorks Animation Turns to Technology for Production SupportProblem: Gaining an edge in an intensely competitive market, working with technology-intensive processes.Solutions: Deploy custom-built E-motion software to render more realistic animations and increase quality of films.HP processors, Linux, and high-speed network facilitate rapid production schedule, increasing productivity.Demonstrates ITs role in strengthening a firms product and productivity Illustrates digital technologys role in gaining an advantage in a fiercely competitive market.

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies111IT InfrastructureDefining IT infrastructure:Set of physical devices and software required to operate enterpriseSet of firmwide services including:Computing platform providing computing servicesTelecommunications servicesData management servicesApplication software servicesPhysical facilities management servicesIT management, education, research and development servicesIT as services perspective more accurate view of value of investmentsManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies112Connection Between the Firm, IT Infrastructure, and Business CapabilitiesFigure 5-1The services a firm is capable of providing to its customers, suppliers, and employees are a direct function of its IT infrastructure. Ideally, this infrastructure should support the firms business and information systems strategy. New information technologies have a powerful impact on business and IT strategies, as well as the services that can be provided to customers.IT InfrastructureManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies

113IT InfrastructureEvolution of IT infrastructure: 1950-2007Electronic accounting machine era: 1930-1950Specialized machines sorting computer cards, accumulating totals, printing reportsGeneral-purpose mainframe and minicomputer era: 1959 to present1958 IBM first mainframes introduced, eventually used to support thousands of online remote terminals1965 less expensive DEC minicomputers introduced, allowing decentralized computingManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies114Eras in IT Infrastructure EvolutionFigure 5-2AIllustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.IT InfrastructureManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies

115IT InfrastructurePersonal computer era: 1981 to present1981 Introduction of IBM PCProliferation in 80s, 90s resulted in growth of personal softwareClient/server era: 1983 to presentDesktop clients networked to servers, with processing work split between clients and servers Network may be two-tiered or multitiered (N-tiered)Various types of servers (network, application, Web)Enterprise Internet computing era: 1992 to presentMove toward integrating disparate networks, applications using Internet standards and enterprise applications

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies116Eras in IT Infrastructure Evolution (cont.)Figure 5-2BIT InfrastructureManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies

117Eras in IT Infrastructure Evolution (cont.)Figure 5-2CIT InfrastructureManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies

118A Multitiered Client/Server Network (N-Tier)Figure 5-3In a multitiered client/server network, client requests for service are handled by different levels of servers.IT InfrastructureManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies

119IT InfrastructureTechnology drivers of infrastructure evolution (cont.)

Metcalfes Law and network economicsValue or power of a network grows exponentially as a function of the number of network membersAs network members increase, more people want to use it (demand for network access increases).

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies120Declining communication costs and the InternetAn estimated 1.1 billion people worldwide have Internet accessAs communication costs fall toward a very small number and approach 0, utilization of communication and computing facilities explodes.

IT InfrastructureManagement Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesIT InfrastructureTechnology drivers of infrastructure evolution (cont.)Standards and network effectsTechnology standards:Specifications that establish the compatibility of products and the ability to communicate in a networkUnleash powerful economies of scale and result in price declines as manufacturers focus on the products built to a single standard.Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies122Infrastructure ComponentsIT Infrastructure has 7 main componentsNetworking and telecommunications equipment and services (50% of U.S. expenditures)Enterprise and other IT software applications (19%)Computer hardware platforms (9%)Consulting services and system integrators (9%)Operating system platforms (7%)Database management and storage (3%)Internet platforms (2%)Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies123The IT Infrastructure bionetworkThere are seven major components that must be coordinated to provide the firm with a coherent IT infrastructure. Listed here are major technologies and suppliers for each component.Infrastructure Components

124Infrastructure ComponentsComputer hardware platformsClient machinesDesktop PCs, mobile computing devices PDAs, laptopsServers Blade servers: ultrathin computers stored in racksMainframes:IBM mainframe equivalent to thousands of blade serversTop chip producers: AMD, Intel, IBMTop firms: IBM, HP, Dell, Sun Microsystems

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies125Infrastructure ComponentsComputer software platformsOperating systemsClient level: 95% run Microsoft Windows (XP, 2000, CE, etc.)Server level: 85% run Unix or Linux

Enterprise software applicationsEnterprise application providers: SAP and OracleMiddleware providers: BEAManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies126Infrastructure ComponentsData management and storageDatabase software: IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise), MySQLPhysical data storage: EMC Corp (large-scale systems), Seagate, Maxtor, Western DigitalStorage area networks: connect multiple storage devices on dedicated networkManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies127Infrastructure ComponentsNetworking/telecommunications platformsTelecommunication servicesTelecommunications, cable, telephone company charges for voice lines and Internet accessMCI, AT&T, regional providers (Verizon)Network operating systems:Windows Server, Novell, Linux, UnixNetwork hardware providers: Cisco, Lucent, Nortel, Juniper Networks

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies128Infrastructure ComponentsInternet platformsHardware, software, management services to support company Web sites, (including Web hosting services) intranets, extranetsInternet hardware server market: Dell, HP/Compaq, IBMWeb development tools/suites: Microsoft (FrontPage, .NET) IBM (WebSphere) Sun (Java), independent software developers: Macromedia/Adobe, RealMediaManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies129Infrastructure ComponentsConsulting and system integration servicesEven large firms do not have resources for full range of support for new, complex infrastructureSoftware integration: ensuring new infrastructure works with legacy systemsLegacy systems: older TPS created for mainframes that would be too costly to replace or redesignAccenture, PwC Consulting

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies130Hardware Platform Trends and Emerging TechnologiesWhile cost of computing is lower, infrastructure costs have expandedMore computing, more sophisticated computing, increased consumer expectations, need for securityIntegration of computing and telecommunications platformsClient level convergence: Handhelds/Cell phonesServer, network level convergence: Internet telephonyCloud Computing :Network becoming source of computing power

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies131Hardware Platform Trends and Emerging TechnologiesGrid computingConnects geographically remote computers into a single network to combine processing power and create virtual supercomputerProvides cost savings, speed, agility

On-demand computing (utility computing)Off-loading peak demand for computing power to remote, large-scale data processing centersLowers cost, risks of hardware investment, provides agility

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies132Hardware Platform Trends and Emerging TechnologiesAutonomic computingIndustry-wide effort to develop systems that can configure, optimize themselves, heal themselves when broken, and protect themselves from outside intrudersSimilar to self-updating antivirus software; Apple and Microsoft both use automatic updates

Edge computingMultitier, load-balancing for Web-based applicationsSignificant parts of processing performed by less expensive servers located nearby userIncreases response time and lowers technology costsAkamai: Internet edge provider

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies133Edge Computing PlatformFigure 5-11Edge computing involves the use of the Internet to balance the processing load of enterprise platforms across the client and edge computing platform.Management Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesInfrastructure Components

134Hardware Platform Trends and Emerging TechnologiesVirtualizationPresenting set of computing resources (such as computing power or data storage) so they can be accessed in ways not restricted by physical configuration or geographic location.Server virtualization: Running more than one operating system at same time on single machine.Fewer computers required to process same workMulticore processorsIntegrated circuit with two or more processorsReduces power requirements and heatManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies135Software Platform Trends and Emerging TechnologiesLinux and open-source softwareOpen-source software: Produced by community of programmers, free and modifiable by userLinux: Open-source software OS6% new PCs in 2005 were Linux (U.S.)23% market share as LAN server (U.S.)JavaObject-oriented programming language (Sun Microsystems)Operating system, processor-independent (Java Virtual Machine)Leading programming environment for WebAppletsE-commerce applicationsManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies136Read the Interactive Session: Technology, and then discuss the following questions:What problems do Linux and other open-source software address? How does open-source software help solve these problems?What issues and challenges do open-source software present? What can be done to address these issues?What are the business as well as the technology issues that should be addressed when deciding whether to use open-source software?Is It Time for Open-Source?Software Platform Trends and Emerging TechnologiesManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies137Software Platform Trends and Emerging TechnologiesSoftware for enterprise integration

Integration of legacy software an urgent software priority for U.S. firmsMiddleware: Software that connects two separate applicationsEnterprise application integration (EAI) software: Enables multiple systems to exchange data using single software hub

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies138Enterprise Application Integration (EAI) Software Versus Traditional IntegrationFigure 5-12EAI software (a) uses special middleware that creates a common platform with which all applications can freely communicate with each other. EAI requires much less programming than traditional point-to-point integration (b).Management Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesInfrastructure Components

139Software Platform Trends and Emerging TechnologiesWeb ServicesSoftware components that exchange information using Web standards and languagesXML: Extensible Markup LanguageMore powerful and flexible than HTMLTagging allows computers to process data automaticallySOAP: Simple Object Access ProtocolRules for structuring messages enabling applications to pass data and instructionsWSDL: Web Services Description LanguageFramework for describing Web service and capabilitiesUDDI: Universal Description, Discovery, and IntegrationDirectory for locating Web services

Management Information SystemsChapter 5 IT Infrastructure and Emerging Technologies140Software Platform Trends and Emerging TechnologiesSOA: Service-oriented architectureSet of self-contained services that communicate with each other to create a working software applicationSoftware developers reuse these services in other combinations to assemble other applications as needed.E.g. an invoice service to serve whole firm for calculating and sending printed invoicesAmazon.com: Direct result of SOA services for interfaces, billing, third-party providers; Amazons Merchant Services Dollar Rent A CarUses Web services to link online booking system with Southwest Airlines Web siteManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies141How Dollar Rent a Car Uses Web ServicesFigure 5-13Dollar Rent A Car uses Web services to provide a standard intermediate layer of software to talk to other companies information systems. Dollar Rent A Car can use this set of Web services to link to other companies information systems without having to build a separate link to each firms systems.Management Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesManagement Issues

142Software Platform Trends and Emerging TechnologiesAjaxSoftware technique for allowing client and server to hold conversation in background, so browser page does not need to be fully reloaded. Google Maps.Web-based software toolsGoogles online spreadsheet and word processingMashupsCombinations of two or more online applications; e.g. combining mapping software (Google Maps) with local contentManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies143Software Platform Trends and Emerging TechnologiesWeb 2.0 key conceptsWeb becoming collection of capabilities, rather than pagesServicesControl over unique data sourcesUsers as co-developersHarnessing collective intelligenceLeveraging long tail through customer self-serviceSoftware above level of single deviceLightweight user interfaces, development models, and business modelsManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies144Software Platform Trends and Emerging TechnologiesChanging sources of software:Software packages and suitesComplex, enterprise software systemsApplication service providers (ASPs)Business that delivers and manages applications and computer services from remote computer centers to multiple users using the Internet or a private networkOutsourcingDomestic or offshoreToday, 1/3 U.S. firms outsource software developmentManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies145The Changing Sources of SoftwareFigure 5-14U.S. firms will spend nearly $340 billion on software in 2006. Over 30 percent of that software will come from outsourcing its development and operation to outside firms, and another 15 percent will come from purchasing the service from application service providers either on the Web or through traditional channels.Management Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesManagement Issues

146Management IssuesDealing with scalability and changeAs firms shrink or grow, IT needs to be flexible and scalable. Easier said than done. How does firm remain flexible and still make long term investments?

Scalability: Ability to expand to serve larger number of usersManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies147Management and governanceWho controls IT infrastructureCentralized/decentralizedHow are costs allocated between divisions, departments?

Management IssuesManagement Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesManagement IssuesMaking wise infrastructure investmentsAmount to spend on IT is complex questionRent vs. buy, outsourcingCompetitive forces model for IT infrastructure investmentMarket demand for firms servicesFirms business strategyFirms IT strategy, infrastructure, and costInformation technology assessmentCompetitor firm servicesCompetitor firm IT infrastructure investmentsManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies149Competitive Forces Model for IT InfrastructureFigure 5-15There are six factors you can use to answer the question, How much should our firm spend on IT infrastructure?Management Information SystemsChapter 5 IT Infrastructure and Emerging TechnologiesManagement Issues

150Management IssuesTotal Cost of Ownership of Technology Assets

TCO model: Used to analyze direct and indirect costs of systemsHardware, software account for only about 20% of TCOOther costs include: Installation, training, support, maintenance, infrastructure, downtime, space and energyTCO can be reduced through greater centralization and standardization of hardware and software resourcesManagement Information SystemsChapter 5 IT Infrastructure and Emerging Technologies151What is IS?IS a set of interrelated components working together to collect, retrieve, process, store, and distribute information for the purpose of facilitating planning, control, coordination, analysis, and decision making in business organizationsInput-process-output perspectivePeople-organization-technology perspective

Choice Hotels Reservation System example:

Technology the means by which data is transformed and organized for business use:HardwareSoftwareDatabaseTelecommunicationPeople the users of ISOrganization -- a collection of functional units working together to achieve a common goalFunctional units of business organizations:productionsales/marketing finance/accountinghuman resources

maximize profit by producing goods and/or servicesFunctional Areas of BusinessThe manufacturing and production function is responsible for producing the firm's goods and services. There are three stages of the manufacturing/ production process: inbound logisticsproduction outbound logistics

Functional Areas of BusinessThe sales and marketing function is responsible for finding customers for the firm's product or service and selling the firm's product or service to those customers. The sales and marketing process consists of identifying and creating markets developing marketsmaintaining markets

Functional Areas of BusinessThe finance and accounting function is responsible for managing the firm's financial assets and maintaining the firm's financial records. The finance process involves managing the firm's financial assets, whereas the accounting process is involved primarily in financial record keeping.Functional Areas of BusinessThe human resource function is responsible for attracting and maintaining an appropriate work force for the firm. The human resources process entails attracting the work force developing the firm's work force to meet the firm's personnel needsmaintaining the work force

Computer vs IS literacy

IS in BusinessBusiness functionsBusiness processesA series of interrelated activities through which work is organized and focused to produce a product or serviceBusiness levelsStrategic (long range planning)Tactical (co-ordinate & supervise)Operational (produce product & service)

The order generation and fulfillment process (Fig. 2.2)

Role of IS in BusinessCompetitive advantageLow-cost (value chain)Market niche Product differentiation Customer loyalty

GlobalizationPeople (language)Organization (culture) Technology (telecommunication)The value chain views the firm as a series of basic activities that add value to a firm's products or services (Fig. 3-2)Primary activitiesinbound logistics, operations, outbound logistics, sales and marketingservice Support activitiesadministration and managementhuman resourcestechnology and procurement.

QualityProcess simplificationBenchmarking Customer focus Cycle time reduction Improve design & production Error reduction

ReengineeringBusiness processes redesign

Ethical & social responsibilityInformation rights & privacyIntellectual property Accountability & liability Quality of life

IS Approach to Problem Solving

Systems AnalysisSystems DesignSystems Analysis & DesignSystems AnalysisProblem analysis (what)Information gathering (where & why)Decision making (how)Establish objectivesDetermine feasibilityChoose best solutionSystems Design (Input, Process, Output, Procedures, Control)Logical design

Systems Analysis & DesignSystems DesignLogical design (what will the system do?)Input: content, format, source, volume, frequency, timingProcess: rule, model, formula, timingOutput: content, format, organization, volume, freq., timingStorage: data, format, organization, relationship, volumeProcedure: manual activities, rule, sequence, timing, locationControl: security, accuracy, validity, supervisionPhysical design (how the system will work?)Input: keyboard, voice, scannerProcess: PC, operating system, softwareOutput: print-outs, files, audioStorage: tape, CDProcedure: batching, backup, auditing, data entryControl: batch control, password, audit logsImplementation (coding, testing, training)

Technology perspective to problem solving

Organizational perspective to problem solving

People perspective to problem solvingDecentralized Computing, Share Information, & Mobile Computing

Modeling a SystemITU Management Faculty MISModelAn abstraction or an approximation that is used to represent realityTypes of modelsNarrative (descriptive)PhysicalSchematicMathematicalITU Management Faculty MIS

System Development LoopITU Management Faculty MISSystems developmentSystems analysisSystemsdesignSystemsimplementationSystems maintenance and improvementSystems Review And AuditDEFINING THE PROBLEM : Understanding the current system or need for the system Requirements List, Contract, What is the Gap? FINDING THE SOLUTION : Designing/Defining the needed/required system Specifications, How it should be?IMPLEMENTING THE SOLUTION : Building, Project, Hands-on work, Closing the GapPERFORMANCE EVALUATION : Control, Check, Measuring the GapCorrective ActionsPreventive Actions

RevisionsModificationsDocumentationTrainingStructural Change(+Revision)Chart16.33761204686.44724883976.39425292496.62137361866.57370671836.63707816.70741795216.81510602117.11963140877.0634634166

Last 10 DaysStock PriceSIRIUS SATELLITE RADIO INC.

Sheet10.1$6.3760.2$6.450.3$6.370.4$6.640.5$6.790.6$6.870.7$6.760.8$7.040.9$7.101$7.27

Sheet16.33761204686.44724883976.39425292496.62137361866.57370671836.63707816.70741795216.81510602117.11963140877.0634634166

Last 10 DaysStock PriceSIRIUS SATELLITE RADIO INC.

Sheet2

Sheet3

Chart16.33761204686.44724883976.39425292496.62137361866.57370671836.63707816.70741795216.81510602117.11963140877.0634634166

Last 10 DaysStock PriceSIRIUS SATELLITE RADIO INC.

Sheet10.1$6.3760.2$6.450.3$6.370.4$6.640.5$6.790.6$6.870.7$6.760.8$7.040.9$7.101$7.27

Sheet16.33761204686.44724883976.39425292496.62137361866.57370671836.63707816.70741795216.81510602117.11963140877.0634634166

Last 10 DaysStock PriceSIRIUS SATELLITE RADIO INC.

Sheet2

Sheet3