Chapter Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Hardware and Software in the Enterprise 6.1 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Objectives What computer processing and storage capability does our organization need to handle its information and business transactions? What arrangement of computers and computer processing would best benefit our organization? What kinds of software and software tools we need to run our business? What criteria should we use to select our software technology? 6.2 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Objectives • What new software technologies are available? How would they benefit our organization? • How should we acquire and manage the firm’s hardware and software assets? 6.3 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Management Challenges The centralization versus decentralization debate The application backlog 6.4 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Computer Hardware and Information Technology Infrastructure Hardware components of a computer system Figure 6-1 6.5 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Computer Hardware and Information Technology Infrastructure The Computer System Bit • Binary digit • Represents or Byte • String of eight bits • Stores one number, symbol, character, part of picture 6.6 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Computer Hardware and Information Technology Infrastructure Bits and bytes Figure 6-2 6.7 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Computer Hardware and Information Technology Infrastructure The Computer System The Central Processing Unit (CPU) • Controls other parts of computer • Arithmetic-logic unit performs principle logical/mathematical operations • Control unit coordinates other parts, such as reading a stored program 6.8 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Computer Hardware and Information Technology Infrastructure The Computer System Primary Storage • • • • 6.9 Located near CPU Stores all or part of active software program Stores operating system software Stores data the program is using © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Computer Hardware and Information Technology Infrastructure The Computer System Primary Storage • Composed of semi-conductors • RAM (random access memory): Used for shortterm, temporary storage • ROM (read-only memory): Semiconductor memory chips with program instructions 6.10 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Spreadsheet software Figure 6-11 6.45 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Data management software Figure 6-12 6.46 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Application Software Packages and Productivity Software • Presentation graphics: Create professional-quality graphics and multimedia presentations • Integrated Software Packages and Suites: Combine two or more applications; easy data transfer • E-mail software: Computer exchange of messages • Web browsers: Access and display Web, Internet resources • Groupware: Support activities of workgroups 6.47 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Software for Enterprise Integration and E-Business • Enterprise software: Integrates multiple business processes • Legacy system: System in place for long time • Middleware: Software that connects two disparate systems • Enterprise application integration (EAI) software: Middleware to create hub connecting applications and application clusters 6.48 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Enterprise application integration (EAI) software versus traditional integration Figure 6-13 6.49 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Software for Enterprise Integration and E-Business • Web services: Universal standards using Internet technology for exchanging data between systems • Web server: Manages requests for Web pages on computer where they are stored • Application server: Middleware software handling application operations between user and back-end business systems 6.50 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software A multitiered architecture for e-commerce and e-business Figure 6-14 6.51 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Window on Technology Application Integration to the Rescue • How can enterprise application integration and Web services technology provide value for organizations? • What management, organization, and technology issues should be addressed when making the decision about whether to use these technologies? 6.52 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Managing Hardware and Software Assets Hardware Technology Requirements For Electronic Commerce and the Digital Firm • Capacity planning: Process of predicting when a computer hardware system becomes saturated • Scalability: Ability of a computer, product, or system to expand to serve a larger number of users without breaking down 6.53 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Managing Hardware and Software Assets Total Cost of Ownership (TCO) of Technology Assets • Includes both direct and indirect costs • Hardware and software acquisitions account for only 20% of TCO • TCO for a PC may run to three times original purchase price • Hidden costs can make distributed architecture more expensive than centralized mainframes 6.54 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Managing Hardware and Software Assets Total Cost of Ownership (TCO) Cost Components • • • • • • • • • 6.55 Hardware acquisition Software acquisition Installation Training Support Maintenance Infrastructure Downtime Space and energy © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Managing Hardware and Software Assets Rent or Build Decisions: Using Technology Service Providers • Storage service provider: Provides online access to storage devices and storage area network technology • Application service provider: Delivers applications over networks on subscription basis • Management service provider: Manages applications, systems, security, storage, Web sites, system performance 6.56 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software Model of an Application Service Provider (ASP) Figure 6-15 6.57 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Managing Hardware and Software Assets Rent or Build Decisions: Using Technology Service Providers • Business continuity provider: Defines procedures for recovery from system malfunctions, disaster recovery • Utility computing: Model in which companies pay only for resources used in a specific time period 6.58 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Chapter Case Study Zurich North America Hunts Down Its IT Assets Evaluate Zurich North America Canada using the value chain and competitive forces models Why did IT asset management become so important to this company? Why did Zurich North America have problems managing its hardware and software assets? How serious were these problems? What management, organization, and technology factors were responsible for those problems? How did Zurich North America solve its asset management problem? What managerial and technology tools did it use? 6.59 © 2005 by Prentice Hall ... acquire and manage the firm’s hardware and software assets? 6.3 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Management... Software in the Enterprise Computer Hardware and Information Technology Infrastructure Bits and bytes Figure 6-2 6.7 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter... 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter Hardware and Software in the Enterprise Types of Software System Software and PC Operating Systems PC Operating Systems