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Instructor's Manual, Chapter 6 Management Information Systems, Second Canadian Edition 6-1

Chapter 6Hardware and Software

Teaching Objectives

Students should be able to answer the following questions:

1. What computer processing and storage capability does our organization need to manage its information and conduct business transactions?

2. What arrangement of computers and computer processing would best benefit our organization?

3. What kinds of software do we need to run our business? What criteria should we use to select our hardware?

4. How do we stay current on new software? How do we know that it would benefit our organization?

5. How should we acquire and manage the firm’s hardware and software?

Key Terms

The following alphabetical list identifies the key terms discussed in this chapter. The page number for each key term is provided.

Application Service Provider (ASP), 220 MP3 (MPEG3), 201Application software, 205 Multimedia, 200Arithmetic-logic unit (ALU), 193 Natural language, 208Batch processing, 200 Network-attached storage (NAS), 197Bit, 193 Network computer (NC), 202Byte, 193 Object-oriented programming, 209C, 208 Office 2000 and Office XP, 213C++, 208 Online processing, 200Capacity planning, 217 Open-source software, 205CD-ROM (compact disk read-only memory), 196 Operating system, 204CD-RW (CD-ReWritable), 197 Parallel port, 199Central processing unit (CPU), 193 Parallel processing, 195Centralized processing, 202 Peer-to-peer computing, 203Client, 202 Personal computer (PC), 201Client-server computing, 202 Port, 198COBOL (COmmon Business Oriented Language), 208

Presentation graphics, 204

Compiler, 204 Primary storage, 193Computer, 192 Program, 203Control unit, 194 Query language, 208Data management software, 203 Radio-frequency identification (RFID), 198Digital video disk (DVD), 197 RAID (Redundant Array of Inexpensive Disks), 196Distributed processing, 202 RAM (random access memory), 194Downsizing, 202 Reduced instruction set computing (RISC), 195Electronic mail (e-mail), 214 ROM (read-only memory), 194

Copyright © 2005 Pearson Education Canada Inc.


Enterprise application integration software, 216 Scalability, 217Enterprise software, 215 Secondary storage, 196Firewire, 199 Serial port, 198Floppy disk, 196 Server farm, 201Fourth-generation language, 208 Server, 201Graphical user interface (GUI), 205 Software package, 212Grid computing, 203 Source code, 204Groupware, 214 Spreadsheet, 203Hard disk, 196 Storage area network (SAN), 197Hypertext markup language (HTML), 211 Storage service provider (SSP), 198Infrastructure, 192 Streaming technology, 201Integrated software package, 213 Supercomputer, 201Java, 210 System software, 203Machine cycle, 194 Total cost of ownership (TCO), 218Machine language, 206 Universal serial bus (USB), 199Magnetic disk, 196 Utility computing, 222Magnetic tape, 197 Visual Basic, 208Mainframe, 201 Visual programming, 210Massively parallel computers, 195 Web browser, 214Megahertz, 195 Web server, 215Microprocessor, 195 Workstation, 201Middleware, 215 XBRL (eXtensible Business Reporting Language, 212Midrange computer, 201 XHTML(Extensible Hypertext Markup Language), 212Minicomputer, 201 XML (extensible Markup Language), 211

Teaching Suggestions

Since your student's knowledge and comfort level with technology is likely to vary, this chapter can be difficult to teach and test. The technically adept know most of this material, and some of the non-technical types may not find the chapter's contents particularly interesting. However, it is important that you demonstrate the importance of this chapter to your students since the students must understand the role of computer technology to the success of the organization and its objectives.

One way to begin the chapter discussion is to present several horror stories. (Your students may even be able to provide stories of their own.) For example, many firms have found moving to a client-server architecture is not the dream they had been led to believe. The shortage of support, programming, and management tools, as well as the shortage of staff who understand the technology and programs in such an environment, has doomed many such changes. Also, you should mention to your students that programming problems have cost organizations millions of dollars and provide examples of programming projects which simply failed.

Section One, “Computer Hardware and Information Technology Infrastructure,” introduces students to essential computer hardware terminology and concepts. Students are introduced to a contemporary computer system, the CPU and primary storage, computer processing, secondary storage, input and output technology, and batch and online input and processing. If possible, bring a system unit to class and allow students to see the computer system's parts. Students are often eager to see the inside of a computer and also see that the machine is not as mysterious as it first appears. You should consider organizing a tour of your university's IT facilities or the facilities of a local company. Students are often eager to see information technology in action.



Ask your students to review local or national ads for computer systems. Alternatively, ask your students to visit the Web sites for several computer companies, such as Dell and Gateway. Ask your students to evaluate the different computer systems and make recommendations about which system they would recommend purchasing. Alternatively, give your students a scenario and ask the students to select the most appropriate system for the scenario. Ask your students to discuss the factors that influenced their purchasing decisions.

Technology is changing so quickly that by the time students read this chapter, new hardware and software products will be out on the market. Students may naturally feel more comfortable with this chapter’s material because hardware and software are the components with which they are most familiar. If they recognize the basic hardware components and understand their uses, they can better communicate with the technicians who are critical to decisions on the uses of the computer, which after all are business decisions. Students (and future managers) need to know the limitations and possibilities of the computer, and the vistas and limitations of the hardware are critical to that understanding. If they can understand the different kinds of software – from off-the-shelf application software to program-it-yourself software – and that it is not necessary to be a programmer in order to use software on information systems, then they really have one of the two main points of the chapter. Secondly, students should learn that there are a variety of tools to solve information system problems — different applications generators, different programming languages, and different configurations.

Section Two introduces students to the different categories of computers and computer systems. You should spend some time discussing the capabilities of the different computer types. This is a good place to discuss technological trends. One trend that is familiar to many of us is the continual increasing memory, speed, and storage capabilities of personal computers. Also, you may want to note the change in interfaces. Another trend is what could be called the shrinking of supercomputers. Most supercomputers in use now are parallel computers. It is possible to link together Intel processors running Linux to form a supercomputer using the Beowolf and Extreme Linux set of tools. One version offered by IBM costs $1.25 million compared with the over $10 million a year that Cray supercomputers cost. Not everyone needs a parallel processing supercomputer, but the decrease in price may increase the use of supercomputers for mathematical and graphical processing, data visualization, and pattern recognition.

Section Three introduces students to the different types of software. You might take a quick survey of your students to see what operating systems and application software they currently use. Most of the answers will probably revolve around the Windows operating systems and Microsoft Office suite. However, it is possible that some of your students may use software that the rest of the class is not as familiar with. If this occurs, have your students explain why they use that particular operating system and application software.

Students need to understand the business implications of choosing an operating system, since computer systems depend upon operating systems and business capabilities are affected by operating systems. Some operating systems are better designed for networking, and other operating systems are better for speed. You do not need to denigrate MS-DOS or Windows. In fact, you may find it helpful to explain how the limitations of the operating systems and the initial hardware of PCs created many problems with which we are still contending. This explanation can help students understand the importance of the operating systems and the choice of operating systems. Note, however, that memory problems are no longer a major issue.



Table 6-4 provides a list of the leading PC operating systems. Ask your students to research these different operating systems. As part of their research, ask your students to identify the features of the operating systems, as well as the market share for each operating system. Which is the most appropriate operating system? Also, ask your students to investigate the application programming languages mentioned in Table 6-5. Which is the most appropriate programming language?

Many of the more technically adept students might argue over what should be the appropriate operating system or the appropriate programming language. Students should be warned that in their managerial careers, they may have to sort out these issues because the selection of the proper operating system or software package must support the business, and the technical people may not understand that. Unfortunately, for many managers, the answer may be simple–which application software I can get – and that selection may harm the business or at least may not help it. Students need to learn that (almost) anything that can be done in one language can be done in another, but one may be faster for this application while another may be easier to use. You should talk about the superiority of some languages for some tasks. For instance, in Web database development applications, Visual Basic is the language of choice. In fact, the release in early 2001 of VB.NET is the first version of the language that is truly object-oriented. Point out to students that you can make a mistake in choosing a language. There are many examples of companies, organizations, and governments choosing the wrong language for the wrong problem and creating disaster.

Section Four is an important section to discuss with your students. This section stresses the importance of understanding the technology requirements for the digital firm and electronic commerce, discusses how to determine the total cost of ownership, and discusses the decision to own and maintain technology assets or use external technology service providers. To reinforce the contents of this section, have your students research the total cost of ownership for your school’s computer lab. Likewise, ask your school’s information technology director to speak to your class about the total cost of ownership for the university's technology assets.

“Window On” Boxes

Window on Technology: Can Linux Go Mainstream?

Should a company select Linux as an operating system for its major business applications?

Before making the move to Linux, a company should determine how the move could promote organizational efficiency and productivity. The company should also consider the total cost of ownership. Many companies are selecting Linux as their operating system of choice. Marks Work Wearhouse, Tradeworx, Dreamworks, Boeing, Western Geco, CS First Boston, and E*Trade are just a few of the companies that are using Linux. Since Linux is nonproprietary, inexpensive, stable, portable, and based on UNIX, it provides many benefits to companies wishing to use it as their operating system.



What are the business as well as the technology issues that should be addressed when making that decision?

The issues include total cost of ownership, employee training, types of computer hardware that will run the operating system, what modifications are needed, and who will manage and modify the software.

Window on Management: Canadian Pacific Moves Information As Well as Freight

What is the benefit of having a common look and feel across all desktops?

The CPR staff would be able to work with a system that would avoid conflicts, allow users to become familiar with the GUI, and reduce potential incompatibility among applications.

What are some of the training challenges in deploying the new computing platform?

Some employees are resistant to change; others just can’t grasp the new systems if they are significantly different from the old system. The new systems may not perform the same functions as the old ones, creating more resistance to change.

What are some of the benefits of using a single supplier like Microsoft?

Using a single supplier allows a company to implement a single standard of hardware and software that should help to avoid any system incompatibilities and provide the most interconnectivity possible.

What are some of the disadvantages of using a single supplier?

Using a single supplier prevents a company from expanding its application base with different vendors that may offer more functionality than a single supplier. It also limits the development and implementation options for future projects.

For Discussion Questions

1. Why is selecting computer hardware and software for the organization an important management decision? What management, organization, and software and technology issues should be considered when selecting computer hardware?

Since computer hardware and software can significantly impact the organization's performance, the selection of these IT assets is critical to the organization's operations and ultimate success. Issues include capacity planning and scalability, making decisions regarding the required computer processing and storage capabilities, computer and computer processing arrangements, kinds of software and software tools needed to run the business, determining the criteria necessary to select the right software, the acquisition and management of the organization's hardware and software assets, and what new technologies might be available and beneficial to the firm.



2. Should organizations use application service providers (ASPs) and storage service providers (SSPs) for all their software and storage needs? Why or why not? What management, organization, and technology factors should be considered when making this decision?

The answer to the first question is dependent upon the organization and its processing, storage, and business needs. When evaluating ASP and SSP vendors, the organization should examine such factors as availability and reliability, technology, fees and how the fees are assessed, and available applications. Managers should compare the costs and capabilities of using ASPs and SSPs to the organization's costs and capabilities of operating and owning its own hardware and software assets. The organization should examine how using ASPs and SSPs will impact organizational culture and how using an ASP or SSP addresses organizational and business needs. The technology factors include examining how well usage of ASPs and SSPs fits with the firm's IT infrastructure, as well as examining the appropriateness of using an ASP and SSP to address current problems.

Review Questions

1. What are the components of a contemporary computer system?

The major components of a contemporary computer system are the central processing unit (CPU), primary storage, secondary storage, input devices, output devices, and communication devices. Figure 6-1 shows the hardware components of a computer system.

2. Name the major components of the CPU and the function of each.

The control unit and the arithmetic-logic unit are the major CPU components. The control unit of the CPU coordinates and controls the other parts of the computer system. It reads a stored program and directs other components of the computer system to perform the tasks required by the program. The arithmetic-logic unit performs the principal logical and arithmetic operations of the computer. It can add, subtract, and determine when one quantity is greater or lesser than another quantity, or when they are equal.

3. Distinguish between serial, parallel, and massively parallel processing.

Serial processing processes one instruction at a time, using one processing unit (CPU). Parallel processing processes a number of instructions simultaneously by the use of multiple processing units (CPUs). The problem to be processed is broken down into smaller parts and various CPUs each work on one part.

Parallel processing uses a small number of powerful, expensive, and specialized chips. With massively parallel processing, huge networks of hundreds or thousands of inexpensive, commonly used processor chips are interwoven in complex and flexible ways to work on a computing problem.

4. List the most important secondary storage media. What are the strengths and limitations of each?



The most important secondary storage media are magnetic disk, optical disk, and magnetic tape. Magnetic disks are the most widely used secondary storage medium and include floppy and hard disks. Magnetic disks are convenient to use, permit direct access to individual records, are reasonably priced, and provide fast access speeds. Floppy disks are removable and portable, yet are limited in their storage capacities. Hard drives provide fast access to data and larger storage capacities. RAID technology packages more than 100 smaller disk drives with a controller chip and specialized software in a single larger unit to deliver data over multiple paths simultaneously.

Optical disks store data at far greater densities than conventional magnetic disks, making them valuable for storing vast quantities of data such as reference materials or documents. There are several types of optical disk systems. CD-ROM is read-only storage, WORM allows users to record data only once, CD-RW allows users to rewrite data to the disk, and DVD is a high-capacity optical storage medium, capable of storing a minimum of 4.7 gigabytes of data.

Information stored on magnetic tape is more time consuming to access than information stored on a magnetic disk. Magnetic tape sequentially stores and accesses information, and each reel of tape must be individually mounted and dismounted. Tape storage is cheaper than disk, useful for batch applications (such as payroll), and for archiving large quantities of data that do not require immediate usage. Tape storage is also more stable than disk storage. (Disk packs can crash and disks must be backed up to record the transactions that have occurred.) Disk technology is most useful for online applications where direct access is required and for databases where interrelationships among records exist.

5. List and describe the major computer input and output devices and the types of ports.

Table 6-2 lists the major input and output devices. Input devices include the keyboard, computer mouse, touch screen, optical character recognition, magnetic ink character recognition, pen-based input, digital scanner, audio input, sensors, and radio frequency identification. Output devices include display screen monitors, printers, and audio output.

The keyboard is the principal method of data entry. The computer mouse is a handheld device with point-and-click capabilities. By moving the mouse around on the desktop, the user can position the cursor. Once positioned, the user can press one of the mouse buttons to communicate a command to the system. Touch screens allow the user to touch the surface of a sensitized video display monitor with a finger or a pointer to make a selection. Optical character recognition (OCR) devices translate specially designed marks, characters, and codes into digital form. Magnetic ink character recognition (MICR) readers read magnetic characters on documents such as bank checks. Pen-based input devices are mainly handwriting recognition devices used on touch-sensitive screens and are often seen with package delivery people. Digital scanners translate images such as pictures or documents into digital form. Audio input devices compare the electrical patterns produced by the speaker's voice to a set of prerecorded patterns and accept the sounds when a pattern is recognized. Sensors are devices that collect data directly from the environment for input into a computer system. Radio frequency identification use tags that incorporate microchips to transmit information about items and their location to special RFID readers.

A display screen monitor or CRT displays the output on a screen much like a television set. Printers produce printed copy of information output by the computer. There are impact



printers (dot matrix) and non-impact printers (laser, inkjet, or thermal transfer). Audio output devices are voice output devices that convert digitally stored words into intelligent speech.

Ports provide connections to the central computer unit for peripheral devices, such as printers, modems, flash card readers, digital cameras, and synchronizing devices for PDAs. Serial ports send signals along the serial cable one bit at a time while parallel ports send their signals along parallel cables multiple bits at a time, much faster than serial connections. USB and Firewire ports are much faster than serial and parallel ports. USB technology permits the “daisy-chaining” of up to 127 devices through the use of USB hubs.

6. What is the difference between batch and online processing? Diagram the difference.

Batch processing involves grouping transactions together and then processing these transactions at some later point to update a master file. Online processing involves entering a transaction directly into the computer and processing it immediately. With online processing, information in the system is always up-to-date and current. Figure 6-6 compares and contrasts batch and online processing.

7. What is multimedia? What technologies are involved in multimedia?

Multimedia integrates two or more types of media, such as graphics, sound, voice, full motion video, still video, or animation into a computer-based application. Current technologies include computer, high-resolution monitors, audio, video, graphics, and streaming technologies. CD-ROM and DVD are important storage technologies for multimedia.

8. What is the difference between a mainframe, a minicomputer, a server, and a PC? Between a PC and a workstation?

The difference between these machines depends, to some degree, on size. The mainframe is bigger and faster, has more storage, and can allow more users than a PC. Big AS/400s are really mainframes. A big, fast PC with superior graphics capability is not much, if any, different from a workstation. Midrange computers are middle-sized and have larger memory, storage, and are multi-user. PCs are for single users, as are workstations. A server can be a mainframe or desktop computer, but specialized server computers are often used in the role. Servers store and process shared data. They also perform back-end functions not visible to users. An example is managing network activities. Workstations have faster speeds, better graphics capability, and bigger monitors than PCs. As the text explains, the lines between the types of computers are blurring.

9. Compare the client-server, network computer, and peer-to-peer models of computing.

The term client-server refers to a model for computing that splits processing between "clients" and "servers" on a network, assigning functions to the machine most able to perform the function. Figure 6-7 shows how client-server works. A network computer is a thin client with minimal memory, storage, and processor power. A network computer does not store software or data. The peer-to-peer computing model is a form of distributed processing that links computers via the Internet or private networks so that they can share



processing tasks. Each computer, or peer, is considered equal in terms of responsibilities, and each acts as a server to the others in the network. Unlike the client-server model, a dedicated file server is not required. However, network performance is generally not as good as with the client-server, especially under heavy loads.

10. What are the major types of software? How do they differ in terms of users and uses?

The major types of software are system software and application software. System software is concerned with the operating system, a special set of computer programs to manage and control the central processing unit and its peripheral equipment. System software acts as an intermediary between other software and the physical computer. Application software is a set of programs for accomplishing specific tasks or business functions required by end users. End users use application software to perform activities such as word processing, Web page development, and data management.

11. What is the operating system of a computer? What does it do? What roles do multiprogramming, virtual storage, time sharing, and multiprocessing play in the operation of an information system?

The operating system manages and controls the general computing environment and the activities of the computer system. It allocates and assigns computer resources (such as primary memory, input and output devices, and telecommunications links), schedules computer resources and jobs, and monitors computer system activities.

Multiprogramming is an operating system capability that permits multiple programs to share a computer system's resources at the same time. Only one program is actually using the CPU at any moment, but the computer's input and output facilities and portions of primary memory can be allocated to other programs. Although only one program is using the CPU at any one moment, multiple programs can be executing concurrently.

Virtual storage is a way of maximizing primary memory capacity for storing software programs or for primary storage to deal with programs that require more memory than is available. In virtual storage, a single program is broken down into a number of sections called pages, each of which has a relatively small size. Since only a section of a program is resident in primary memory, many more programs can be processed with limited primary memory, since the programs can be broken down into pages.

Time sharing is an operating system capability that enables many users to share computer resources at the same time. Each user uses the CPU for a tiny slice of time (approximately 2 milliseconds), but many users can be simultaneously connected to a CPU. Multiprocessing links together two or more CPUs to work in parallel in a single computer system.

12. List and describe the major PC operating systems.

Table 6-4 lists and describes the major PC operating systems. The table provides information about Windows XP, Windows 98/Me, Windows 2000, Windows CE, UNIX, Linux, OS/2, Palm OS, Mac OS, and DOS. You should focus student understanding on the facilities and powers of the different operating systems, the age of the systems, and the fact that Mac OS is an operating system for a different machine.



13. List and describe the major application programming languages for business. How do they differ from fourth-generation languages?

Table 6-5 summarizes the major application programming languages, including COBOL, C, C++, FORTRAN, BASIC, Pascal, and assembly language.

COBOL (COmmon Business Oriented Language) was developed in the early 1960s. It was designed with business in mind. It is used for processing large data files with alphanumeric characters and for performing repetitive tasks such as payroll. It is poor at complex, mathematical calculations. C and C++ are powerful and efficient languages developed at AT&T’s Bell Labs. They combine machine portability with tight control and efficient use of computer resources. C++ is object-oriented. FORTRAN (FORmula translator) is useful in processing numeric data and is used primarily for scientific and engineering applications. BASIC and Pascal are used primarily in the teaching of programming. Assembly language resembles machine language, but it substitutes mnemonics for 1s and 0s, making it easier to program (although it is perhaps the most difficult language). Assembly language is designed for a specific machine and specific microprocessors.

Fourth-generation languages are sophisticated languages that enable end users to perform programming tasks with little or no professional programmer assistance. They also enhance the productivity of professional programmers. For example, very high-level programming languages, query languages, or application generators have features that can be employed by end users or less skilled programmers and can dramatically increase application development productivity.

The seven categories of fourth-generation tools are PC software tools, query languages, report generators, graphics languages, application generators, application software packages, and very high-level programming languages. Table 6-6 provides a brief description of these categories.

The main differences between fourth-generation tools and conventional programming languages are the degree of user-friendliness and the ability to perform the same functions with fewer lines of program instructions. Many fourth-generation languages are nonprocedural or less procedural than conventional languages.

14. What is object-oriented programming? How does it differ from conventional software development?

Object-oriented programming combines data and specific procedures that operate on that data into an object. Instead of passing data to procedures, programs send a message for an object to perform a procedure that is already embedded in it. Programmers can focus on what they want an object to do, and the object decides how to do it. Each object is an independent software building block that can be used in many different systems without changing the program code.

In traditional programming, data and procedures are treated as independent components and are not combined as in object-oriented programming. A separate programming procedure must be written every time someone wants to take an action on a particular piece of data. Procedures act on data the program passes to them.



15. What are Java, HTML, XBRL, and XML? Compare their capabilities. Why are they important?

Java is a programming language that delivers only the software functionality needed for a particular task. With Java, the programmer writes small programs called applets that can run on another machine on a network. With Java, programmers write programs that can execute on a variety of operating systems and environments. Further, any program could be a series of applets which are distributed over networks as they are needed and as they are upgraded.

HTML (Hypertext Markup Language) is the language of the Web. It is the language that is used to write Web pages, or as the text says, the page description language for Web pages. It is based on SGML, standard generalized markup language, which was originally a mainframe-based page markup language. The hypertext part of the language is in the links to other Web pages or sites. It has become significant because of the importance of the World Wide Web. Most documents on the World Wide Web are written in HTML.

XML, eXtensible Markup Language, is another standard which is an extension of HTML that allows content which is live and more structured, thereby allowing manipulation of data. XBRL (eXtensible Business Reporting Language) is a variant on XML, with tags defined to permit analysis of business reports. Other such markup languages are being developed, too.

They are important because the Web is important, and because they provide a standard format for data exchange and for Web page descriptions.

16. Name and describe the most important PC productivity software tools.

The most important and widely used PC productivity software includes word processing, spreadsheet, data management, presentation graphics, integrated software packages, e-mail, Web browsers, and groupware.

Word processing software allows users to make changes in documents electronically in memory, eliminating the need to retype entire pages to make corrections. It often includes advanced features such as spelling checkers and thesaurus programs. Spreadsheets provide computerized versions of traditional financial modeling tools such as the accountant's columnar pad. Spreadsheets are composed of a grid of columns and rows and are good at performing calculations on interrelated pieces of data. Data management software is used for creating and manipulating lists and for combining information from different fields. Data management software typically has facilities for creating files and databases to store, modify, and manipulate data for reports and queries. Presentation graphics software allows users to create professional quality graphics presentations. Integrated software packages combine the functions of the most important microcomputer software packages, such as spreadsheets, word processing, graphics, and data management. E-mail software is used for computer-to-computer exchange of messages. It is an important tool for communication and collaborative work. Web browsers are easy-to-use software tools for accessing the Web and the Internet. Groupware provides functions and services that support the collaborative activities of work groups.



17. Name and describe the kinds of software that can be used for enterprise integration.

Enterprise software, middleware, and enterprise application integration software are kinds of software that can be used for enterprise integration. Enterprise software consists of a set of interdependent modules for applications such as sales and distribution, financial accounting, investment management, materials management, production planning, plant maintenance, and human resources that allow data to be used by multiple functions and business processes for more precise organizational coordination and control. The modules can communicate with each other directly or by sharing a common repository of data. Contemporary enterprise systems use a client-server computing architecture. Major enterprise software vendors include SAP, Oracle, PeopleSoft, and Baan. These vendors are now enhancing their products to provide more capabilities for supply chain management and exchange of data with other enterprises. Middleware connects two disparate applications, allowing them to communicate with each other and to exchange data. Enterprise application integration software ties together multiple applications to support enterprise integration. Enterprise application integration software allows system developers to graphically model systems and define rules that the applications should follow to make the processes work. Then the software will generate the underlying program instructions to link the existing applications to each other.

18. List and describe the principal issues in managing hardware and software assets.

Understanding the new technology requirements for electronic commerce and the digital firm, determining the total cost of ownership of technology assets, and determining whether to own and maintain technology assets or use external technology service providers for the firm's IT infrastructure are the principal issues in managing hardware and software assets.

Electronic commerce and the digital firm place new technology requirements on the organization. Heavy demands are being made on both hardware and software because organizations are replacing many manual and paper-based processes with electronic ones. For example, the flood of digital transactions is making heavy demands on the firm. Two areas that IS must pay attention to are capacity planning and scalability.

When selecting and managing an organization's hardware and software assets, management must consider both direct and indirect costs. To determine the total costs of ownership, an organization must consider the costs associated with hardware acquisition, software acquisition, installation, training, support, maintenance, infrastructure, downtime, and space and energy.

Once you know the total cost of ownership, you can then find out what the cost would be to have external service providers own and maintain the hardware and software for you. If you find it is cheaper to turn to external IT providers, you then will need to look to SSPs, ASPs, and other types of external providers. However, you must also determine whether the function is so strategic that it must be maintained internally.

Application Software Exercise

This project requires students to use their Web research skills to obtain hardware and software pricing information and then use spreadsheet software to calculate costs for



various system configurations. Students’ answers may vary, depending on the time when they access the Web sites of computer hardware and software vendors to obtain pricing information. The sample solution files provided here are for purposes of illustration and may not reflect the most recent prices for desktop hardware and software products. Students will need to use their Web browsing software to find pricing for these products on the Web. They can then enter this information in a spreadsheet and perform some simple calculations to determine prices for 30 desktop systems.

Group Project

With three or four of your classmates, btain a copy of OpenOffice www.openoffice.org which is downloadable for free or find a low-cost copy of Sun StarOffice and compare its capabilities to the Microsoft Office suite of desktop productivity tools. Evaluate their functions, ease of use, and compatibility with models of computer hardware and operating systems. Which would you purchase for your personal use? For a business? Justify your decision. If possible, use electronic presentation software to present your findings to the class.

The openoffice.org Web site provides information that your students can use to evaluate the OpenOffice suite. Since OpenOffice provides word processor (Writer), spreadsheet (CALC), presentation (IMPRESS), and graphics (DRAW) programs, ask your students to evaluate the features of each program. If you have the time, ask your students to complete word processing, spreadsheet, presentation, and drawing exercises using the OpenOffice suite.

Ask your students to discuss how easily data can be exchanged between the programs. Ask your students to research the system requirements, support issues, and acceptable file formats. What operating systems does OpenOffice run on? What is the file format for OpenOffice? If you have the class time, ask your students to create their presentations using OpenOffice's IMPRESS.

Case Study – Direct Wines Ages Wine, Not IT

1. What problems do you think Direct Wines experienced from using a variety of different systems and platforms?

Direct Wines was using a variety of different platforms to manage different parts of its business. These systems were hard to maintain and upgrade. Customer data was housed in one system, vendor data in another, and inventory data in still another, which made interconnectivity and integration very difficult.

2. How did hardware fit in with and support Direct Wines’ strategy? Do the changes in hardware and software at Direct Wines mean that the role of information technology changes?

Using Hewlett Packard’s UNIX platform to run the SAP system allowed Direct Wines to standardize their servers, tape libraries, and switches. This also allowed Direct Wines to fulfill their need to upgrade, standardize, and integrate their information systems. Since SAP allows total system integration, the role of information technology would change from a tool to complete a task to the implementation of “best practices” for operation.


http://www.openoffice.org/


3. Why did Direct Wines choose to standardize their platform? What were the main strengths of the new platform?

Direct Wines recognized the need to update and integrate its systems. Since using different system and platforms was causing problems, Direct Wines decided to standardize their systems to fulfill customer orders more quickly and more effectively. Better planning and improved inventory management were among the other benefits of the new platform.

4. Why did Direct Wines decide to implement SAP R/3? What changes do you think Direct Wines would have to make while implementing SAP R/3?

SAP R/3 was the world’s leading vendor of enterprise-wide systems. SAP software permits data to move from purchasing to receiving to inventory to factory floor to warehousing to distribution, ordering and billing with almost no human intervention. Human error was reduced, making the system more accurate, reducing inventory by 10 percent. Direct Wines had to change some of its business processes so that the new system could integrate data among the processes.

5. What benefits would Direct Wines achieve from use of a storage area network?

A storage area network would allow Direct Wines to place multiple storage devices on a separate high-speed network dedicated to storage purposes. This will allow multiple servers to access data faster, allowing Direct Wines to fulfill orders faster. Since all data is stored centrally, this also ensures that information is accurate and available to all functions of the company at any given time.

6. What business and technology issues did Direct Wines face when making these changes?

The list of potential business and technology issues for this system implementation could be quite lenghty. Students will come up with several responses for this question. In general, Direct Wines would probably have faced change management issues, budgeting concerns, employee resistance to new technology, and system implementation and maintenance issues. As well, employee training would be an important issue to deal with when implementing any new system.


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Chapter 6suzhou.wikispaces.com/file/view/Hardware+and... · Web viewDistinguish between serial, parallel, ... schedules computer resources and jobs, ... The main differences between