Chapter One

Developments in the Application of

Information Technology in Business

Presented by Henri Nwabuisi

Goals

1. Describe how IT has changed 2. How organizations have reacted to change3. Identifying transition points4. Review past that it may be a foundation

for future progress5. Avoid past mistakes and build on

successes

Study, design, development, implementation,

support, or management of computer-based

Information Systems, particularly software

applications and computer hardware“Information Technology Association of America (ITAA)

IT: What is IT?IT: What is IT?

Evolution of IT Cost

Very Expensive to High Affordability Increased Cost-Effectiveness

Size Large-sized to Smaller-size Increased Portability and Energy-efficiency

Performance Slower to Faster inputs and outputs Increased Sophistication and User

Satisfaction

Position Centralized to Distributed Systems Increased Control, Security, Integrity, and

Availability Risk

Hasher operating environment to Safer one Increased Safety

Evolution of IT

Objective 2Organizations’ reaction to change

How Organizations see IT Change Agent?

Can change the very nature of business

Good or Bad? Can be seen as a necessary evil Can be source of strategic

opportunity Dynamic?

Changes rapidly and makes business even more unpredictable

Human-driven? People play a significant role in IT

After all said and done… Well-Accepted and Widely-Used:

Increasingly key to convenience, efficiency, productivity, customer satisfaction, and profitability

Used by virtually every industry and service

Starting to spread farther than conventional PC and network technology

More integrations of other technologies Handhelds, cell phones, TVs,

automobiles, and more

Objective 3

Identifying transition points

Emergence of Info Tech 1950s

basically a giant calculators

1960s Silicon chips & Integrated

Circuits 1970s

Microprocessors Mainframes

1980s Micro-computers + Data

1990s Internet

LIMITATIONS High cost of hardware

and systems development

Limited selection of applications

1945 – 1963: Discovery Age Computer industry was BORN

founded after boom of the radio-industry during the WWII

Discovery of electronics (vacuum tube, transistors) in the calculator industry

IBM introduces Electronic Calculator ENIAC is developed by US Army Many electronics firms were created or

entered computer field in USA and abroad

Essentially  financed by government and few large companies (public utilities and aerospace)

Participation by Universities for development of computers and transfer know-how to industry

1964 – 1974: Golden Age Computer industry begins to MATURE Introduction of Integrated Electronics Merger of electronics firms (GE, RCA...) IBM introduces mainframe computer and minicomputers

flourish Application systems developed by Software houses Large and Medium-sized biz became equipped

American Airlines SABRE reservation system runs on IBM 7090

1969-1970: US Department of Defense cuts direct subsidies for application systems Funded Integrated Electronics research heavily

Internet planned in the late 1960s

The First Sign of Maturity

Most implementations were not the best Poorly defined specs Unproven approaches Cost savings mitigated by replacing

clerical staff with expensive hardware and highly paid professionals

Areas of Concern

The First Sign of Maturity

Batch processing rather than online Data was fragmented across the

organization in various systems Costs of maintenance User dissatisfaction because systems are

inflexible

Areas of Concern

Old Economy

1960 - 1970s“Big is Beautiful”

The First Sign of Maturity

Concerns led to emergence of software engineering

Advances in technology, drop in cost

Mid 1970s – minicomputers become common

Practical Solutions

Problems with New Projects

Technical specs developed in isolation Specs were considered infallible HR issues: technical staff worked in

isolation Projects over budget and timescale Assembly line approach to development

did not work

Emergence of Project Management Emergence of Structured Programming From Processes to Data

No two programmers are the same

Practical Solutions to Practical Problems

Unified development: Project Team approach to solve

complex problems

PM focus on milestones not activity itself

Quality assurance, quality control, quality management

High user involvement

Practical Solutions to Practical Problems

Emergence of Project Management

Emergence of Structured Programming

Programs lacked control structures Spaghetti logic, use of GO TO statement Little, out of date, or no documentation Development of languages such as PASCAL

Practical Solutions to Practical Problems

From Processes to Data

Change in Focus Emphasis on data and

users Data is separated from

applications Distributed systems

rather than central More flexibility

Practical Solutions to Practical Problems

Databases technology matures Different data representations

Network Hierarchical Relational

New professions emerge Database designer Data analyst Database administrator

From Processes to Data

New Approaches to System Development

Specialization in coding apps or operating systems Programmers specialize in different languages

Linear Cyclical

Causes: Exponential effect of faults Constant change in specifications Maintenance in saturated environment

From Processes to Data

Shift towards MIS PLANS:

Info considered a fundamental and major resource

Initial approach was to put MIS on top of corporate database

PROBLEMS: Impossible to integrate internal data Needed external data Only historical information Needed ad hoc reporting Not geared to handling unstructured

problems

PROBLEMS: Technology could only solve technical

problems, not managerial problems MIS focused on information management

rather than management information

SOLUTIONS: Approach changed by the 1980s Information focused Audience was middle managers Integrated data flows Inquiry and report generation tools

Towards MIS

1975 – 1994: Revolutionary Age Computer industry MATURES Advent of Microprocessors Rise of Personal Computers (PC) invades server

market Increasing performance with increased processor,

memory, and storage capacity Demise of old companies with obsolete technologies PC manufacturing subcontracted to countries like

Taiwan, Korea, Malaysia, decreasing workforce of "main" companies

Batch applications replaced by On-line applications using data communications. integration of software and networking

Internet is mainstreamed as Telecom is deregulated Growth of software houses (Microsoft, Oracle, CA) Large and small biz outsource IT systems to EDS or

IBM

1995 - Present: Consolidation Age Computer industry ADVANCES

Everything that is IT comes together Boom of Hardware, Telecommunications and

Software industries Microprocessor design remains an American

specialty Memory, DSP and other specialty chips are

designed and manufactured all across the world

Internet becomes normal universe for many PC users

Internet technologies standardized (W3C, ICANN, IETF, WAI )

Bubble generated by the interest data communications and Internet market

Bubble burst due to economic conditions that followed 9/11 Shift from provision of data to provision of information and

speeding up information flows New types of systems emerge

Decision Support Systems Email Tele- & video-conferencing, TeleMedicine Voice, text, and image processing Social Networks Object-oriented programming/design Client-server architecture

1995 - Present: Consolidation Age

New types of systems (continued) Image processing Multimedia applications E-commerce Businesses use new systems for growth Web 2.0: interactive information sharing, interoperability,

user-centered design, and collaboration on WWW

1995 - Present: Consolidation Age

Information centers (support/mgmt) System strategy / Strategic system planning Increased business competition

- build barriers against new entrants- change the basis of competition- change balance of power - suppliers- tie in customers- switch costs- create new products/services

New roles for information systems

Cloud computing allows technology stack to be sourced from the Internet

Web becomes enterprise platform Corporate IT provides secure transport layer for

workers to access needed information using their own devices

Global and virtual collaboration becomes the way business is done

Rise of social networks is creating new ways of connecting with customers

Fresh approaches to systems development Analytics become a commodity

Differentiation = Quality Data + Productive decisions

The Future: IT and Business

Questions?