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?