chapter one
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Chapter OneChapter One
Developments in the Application of
Information Technology
in Business
Presented by James Weimholt
GoalsGoals
Describe how IT has changed and how Describe how IT has changed and how organizations have reacted to changeorganizations have reacted to change
Identify transition pointsIdentify transition points
Review past that it may be a foundation for Review past that it may be a foundation for future progressfuture progress
Avoid past mistakes and build on successesAvoid past mistakes and build on successes
Assumptions About Information Assumptions About Information TechnologyTechnology
Can change the very nature of businessCan change the very nature of business
Can be seen as a necessary evil or as a Can be seen as a necessary evil or as a source of strategic opportunity source of strategic opportunity
Changes rapidly and makes business Changes rapidly and makes business even more unpredictableeven more unpredictable
People play a significant role in ITPeople play a significant role in IT
Early Days of Data ProcessingEarly Days of Data Processing
1950s – basically a 1950s – basically a giant calculatorgiant calculator1960s - automated 1960s - automated well-defined clerical well-defined clerical processesprocessesHigh cost of hardware High cost of hardware and systems and systems developmentdevelopmentLimited selection of Limited selection of applicationsapplications
The First Sign of MaturityThe First Sign of Maturity
MeritsMerits
Cost savings mitigated by replacing clerical Cost savings mitigated by replacing clerical staff with expensive hardware and highly paid staff with expensive hardware and highly paid professionalsprofessionals
Costs of maintenanceCosts of maintenance User dissatisfaction because systems are User dissatisfaction because systems are
inflexibleinflexible
Three Areas of Concern
The First Sign of MaturityThe First Sign of Maturity
Side EffectsSide Effects
Most implementations were not the bestMost implementations were not the best
Poorly defined specsPoorly defined specs
Unproven approachesUnproven approaches
Three Areas of Concern
The First Sign of MaturityThe First Sign of Maturity
Inherent LimitationsInherent Limitations
Batch processing rather than onlineBatch processing rather than online
Data was fragmented across the organization in Data was fragmented across the organization in various systemsvarious systems
Three Areas of Concern
The First Sign of MaturityThe First Sign of Maturity
Concerns led to Concerns led to emergence of software emergence of software engineeringengineering
Advances in Advances in technology, drop in technology, drop in costcost
Mid 1970s – Mid 1970s – minicomputers minicomputers become commonbecome common
Practical Solutions to Practical Practical Solutions to Practical ProblemsProblems
1970s1970s
““Big is Beautiful”Big is Beautiful”
Practical Solutions to Practical Practical Solutions to Practical ProblemsProblems
Problems with Large Projects
Technical specs developed in isolationTechnical specs developed in isolationSpecs were considered infallibleSpecs were considered infallibleHR issues: technical staff worked in isolationHR issues: technical staff worked in isolationProjects over budget and timescaleProjects over budget and timescaleAssembly line approach to development did not Assembly line approach to development did not workwork
Practical Solutions to Practical Practical Solutions to Practical ProblemsProblems
Emergence of Project Management
No two programmers are the same
Practical Solutions to Practical Practical Solutions to Practical ProblemsProblems
Project team Project team approach to solve approach to solve complex problemscomplex problems
Project management Project management method focus on method focus on milestones rather milestones rather than the activity itselfthan the activity itself
1970s project team
Practical Solutions to Practical Practical Solutions to Practical ProblemsProblems
Emergence of Structured Programming
Programs lacked control structuresPrograms lacked control structures
Spaghetti logic, use of GO TO statementSpaghetti logic, use of GO TO statement
Little, out of date, or no documentationLittle, out of date, or no documentation
Development of languages such as PASCALDevelopment of languages such as PASCAL
From Processes to DataFrom Processes to Data
Changes in FocusChanges in Focus
Emphasize data and Emphasize data and usersusers
Data is separate from Data is separate from applicationsapplications
Distributed systems Distributed systems rather than centralrather than central
More flexibilityMore flexibility
From Processes to DataFrom Processes to DataDatabasesDatabases
Different data representationsDifferent data representations NetworkNetwork HierarchicalHierarchical RelationalRelational
New professions emergeNew professions emerge Database designerDatabase designer Data analystData analyst Database administratorDatabase administrator
From Processes to DataFrom Processes to Data
ProgrammingProgramming
Specialization in coding apps or operating Specialization in coding apps or operating systemssystems
Programmers specialize in different languagesProgrammers specialize in different languages
Towards Management Information Towards Management Information SystemsSystems
Info considered a fundamental and major Info considered a fundamental and major resourceresource
Initial approach was to put MIS on top of Initial approach was to put MIS on top of corporate databasecorporate database
ProblemsProblems Impossible to integrateImpossible to integrate Only historical informationOnly historical information Needed external dataNeeded external data Needed ad hoc reportingNeeded ad hoc reporting Not geared to handling unstructured problemsNot geared to handling unstructured problems
Towards Management Information Towards Management Information SystemsSystems
Technology can only solve technical Technology can only solve technical problems, not managerial problemsproblems, not managerial problemsMIS focused on information MIS focused on information management rather than management management rather than management informationinformationApproach changed by the 1980sApproach changed by the 1980s Information focusedInformation focused Audience was middle managersAudience was middle managers Integrated data flowsIntegrated data flows Inquiry and report generation toolsInquiry and report generation tools
Questions?Questions?
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