Information Systems: Creating Business Value

by

Mark Huber, Craig Piercy, and Patrick McKeown

Chapter 2: IT for the Organization

What We Will Cover:

The technological infrastructure of an organization

Databases: the primary data storage for organizations

Beyond databases: using other methods to store data, information, and knowledge

The IS integration problem Information systems that support business

activities Business intelligence

Student ROI (Return on Investment)

Your investment of time and effort in this course will result in your being able to answer these questions:

1. How do organizations use processors, networks, software, and storage?

2. What are the key concepts of data organization for an IS?3. In what ways can organizations use IT to store and share

data, information and knowledge?4. What is the IS integration problem and how are organizations

solving it?5. How do organizations use IT to support transactions and

business processes?6. How does business intelligence enhance organizational

decision making?

The Components of IT

Accepting and storing data and information Performing mathematical calculations Applying logic to make decisions Retrieving, displaying, and sending

information Consistently repeating the above actions

many times

Information Technology Categories

Hardware: the electronic and mechanical components you can see and touch

Software: the set of instructions that direct the hardware

Network technology: increases the power of IT by allowing the sharing of resource

IT Platform

Hardware Components

Processing: Directs execution of instructions and the transformation of data

Memory: Temporarily stores data and instructions before and after processing

Input: Provides the interface used for data entry into a device Output: Provides the interface to retrieve information from a

device Storage: Stores data, information, and instructions for the long

term Communications: Connects one IT device to another

The Central Processing Unit

Core of all computing operations is a chip composed of millions of transistors called the central processing unit (or CPU).

A transistor is an electronic switch that can be on (1) or off (0).

By combining multiple transistors we can represent data in a binary format.

The CPU works together with memory to control the execution of instructions and the processing of data.

CPU speed is measured by its clockspeed in billions of cycles per second (gigahertz).

Memory

There are two types of memory—long term (ROM) memory and short-term (RAM) memory

Both types of memory are built onto memory chips

Both are measured in number of bytes stored: 1000’s (kilobytes—KB) Millions (megabytes—MB Billions (gigabytes—GB)

Read Only Memory

Read Only Memory (ROM) contains instructions that are not meant to be changed or changed only infrequently

ROM is present in most IT devices In computers, ROM holds instructions used to

control the startup process There are far fewer ROM chips than RAM

chips in a computer

Random Access Memory

Random Access Memory (RAM) is the predominant form of memory in a computer.

The CPU can access any item stored in RAM directly (randomly).

RAM is temporary memory so anything in RAM is lost when the computer is shut down.

Increasing RAM capacity is the easiest way to increase effectiveness of a computer.

Input Hardware Input devices provide one

interface between the internal processes of an IS and its environment.

It allows us to enter data and commands.

Input devices include: Keyboards Pointing devices such as a

mouse Scanning devices such a

barcode scanner

Keyboard

Most widely used input device for computers. Highly versatile, providing the capability to

enter all types of data as well as instructions. Ergonomic keyboards are keyboards that

are designed to keep users safe as well as enabling them to be more productive.

Pointing and Scanning Devices

Pointing devices such as a mouse allow users to provide instructions to a computer using physical movements, such as “point” and “click”.

Pointing devices tend to require less training than a keyboard.

More useful to entering commands than for entering data.

Scanning devices such as barcode readers improve speed and efficiency or perform a task more efficiently.

Output Hardware Output devices convert IT-

processed information into a form usable by knowledge workers (or other machines)

Quality and speed of output is important in choosing an output device.

Common output devices include Display devices such as

liquid crystal displays (LCDs)

Printers, typically laser or ink-jet as well as plotters

Speakers

IT Storage Hardware

Storage refers to hardware media and devices used to contain large amounts of data and instructions for the long term.

Storage is much slower to access than memory.

Examples include: Hard drive CD and DVDs USB flash memory

Communications Hardware

Network interface card (NIC) provides the physical connection between the computer and a local network Wired Wireless

Modems allow you to connect to a remote network over a telecommunications line (telephone line or cable TV service)

Software

Software is information that specifies how the device should work with other data, information, and knowledge.

Software is legally protected just like music and books.

Firmware is software built into chips (hardware) like that in cell phones and PDAs

Software gets the job done! System Software Application Software

System Software

Controls the hardware associated with a system Supports the execution of application software Two main types of systems software

Operating Systems (OS) Software –coordinates and handles the details of working with the computer hardware.

Utility software – provides additional tools to maintain and service your system (many utility software tasks are now included in the OS).

Basic OS Tasks

Application Software

Application software is a complete, self-contained program or set of programs for performing a specific job.

Application software is the software you use to get things done.

Productivity software – software used by knowledge workers to work with data, information, and knowledge. For example, MS Office and Intuit’s Quicken software.

Types of Productivity Software

Document Preparation Software: used in creating documents composed of text, images, and graphics.

Electronic Spreadsheet Software: used to perform general calculations and analyses.

Presentation Graphics Software: used for preparing slides and graphics for business presentations.

Database Management System (DBMS) software: used to design, create, update, and query data.

Personal Information Management (PIM) software: used to manage personal information.

Connecting over Networks Networks are everywhere! In this section,

we concentrate on a computer networks. A computer network consists of nodes

that represent computer hardware and network user with hardware, software, and communications media forming links between nodes.

Network consists of 4 primary components: Data Special hardware Software that allows computers to

share data. Communications media to link

computers together.

Network Categories Computer networks are

commonly described by the physical size of the network.

The most commonly use types are LANs and WANs.

A Local Area Network (LAN) is confined to a relatively small area like a building.

A Wide Area Network (WAN) connects computers over regions, countries, and continents.

Network Hardware

There are three basic categories of network hardware

1. Hardware to connect a device to a network.

2. Specialized hardware for handling network traffic.

3. Specialized computers that control the network and delivery of data on the network.

Network Connection Hardware

Modems, cable modems, network interface cards, and wireless cards

The physical link that creates the network connection is referred to as the carrier or communications medium. Copper wire for telephone systems Coaxial cable or fiber-optic cables for faster

transmission Wireless technologies including infrared light,

radio waves, and microwaves.

Network Traffic Hardware

A bridge is a device that lets you connect to networks or break a large network into two smaller, more efficient networks.

A router is an intelligent bridge that connects, translates, and then directs data that cross between two networks.

A hub (or concentrator) serves as a central connection point for devices on a a network.

A wireless Access Point (AP) is a special bridge that connects between wireless devices and a wired network.

Specialized Network Computers

Servers are specialized computers that manage the various functions on a network.

A file server is a fast computer with large amount of RAM and storage.

File servers run the network operating system as well as storing shared software applications and data files.

Computers connected to a file server are called clients or workstations.

Network Software

Network operating system software manages network functions and the flow of data over a computer network.

Network application software provides the instructions that allow for the creation of data and for transformation to fit appropriate protocols for transmission over a network.

A protocol is a standard set of rules that allows the communication of data between nodes on a network.

Network Benefits

Efficient communication: E-mail and instant messaging are just two ways that networks allow us to communicate more efficiently.

Effective resource management: Networks allow easy sharing of software, hardware, and data resources.

Complete, accurate, reliable, and timely information: Multiple users can access or update data quickly from a central database.

Expanded marketing and customer service capabilities: Businesses and individuals can carry out remote business transactions anytime and anywhere.

The Internet

Any computer network that connects several networks together is an internet.

Typically we refer to the single largest and most popular internet as the “Internet.”

Over 1 billion people had access to the Internet in 2006.

The Internet uses the TCP/IP suite of packet switching protocols.

Any computer using software compatible with TCP/IP, regardless of OS, can connect and communicate over the Internet.

Access the Internet

Home users access the Internet through dial-up over traditional telephone lines or broadband through cable or DSL.

Most users connect through an Internet Service Provider (ISP) using Internet access software.

Internet access has moved into libraries, airports, or coffee shops using Wi-Fi.

Wi-fi stands for 802.11 standards for wireless network access.

The World Wide Web

The World Wide Web (WWW) is one the two most popular Internet applications (e-mail is the other.)

The Web provides a hypertext system that operates over the Internet.

Hypertext provides an easy way to publish information on a network in documents that incorporate hyperlinks to other information on the network.

Web browser software enables user to view hypertext document and use hyperlinks to browse other related documents.

Web Standards

The Web relies on three basic standards:

1. A Uniform Resource Locator (URL) which specifies a unique address for each page that indicates the location of a document.

2. The Hypertext Transfer Protocol (HTTP) provides rules used by browsers and servers as they respond to each other.

3. Hypertext Markup Language (HTML) provides a language for encoding the information so a variety of IT devices can display it.

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