MP3 / MM740Strategy & Information Systems

Module 1: Fall 2001Tech. Overview & Fundamentals

John Gallaugher

john.gallaugher@bc.edu

www2.bc.edu/~gallaugh

Issues to be Covered• Information Technologies & Systems

– IT vs. IS; classifications of information systems

• Hardware– Moore’s Law & types of computers

• Software– Operating systems & intro. to tech. competition– What is Java & why is it important?

• Mutli-user Computing Architectures

• Data / Information

• Types of information systems

FoxMeyer

Massive System Projects

Deregulation

Globalization

The Internet

Skills Crunch

Mergers & Acquisitions

Technical Advances

5 Components of an IS

Data

Procedures

Software

Hardware

People

InformationSystems

InformationSystems

Hardware

Computers

Peripherals

Networking Equipment

Source: Intel Corp.

1981IBM PCProcessor: Intel 8088, 4.77 MHzDual 160 KB floppy drives$3,300

1991Compaq 486Processor: Intel 80486, 33 MHz120 MB hard drive$2,300

2001Dell Dimension

Processor: Intel Pentium 4,1.4 GHz20 GB hard drive

$950

The PC @ 20

Storage Crib Sheet– bit = zero or one, smallest computing unit– byte = 8 bits, one Latin character– kilobyte (K) = 1,024 bytes ~ 1 thousand bytes– megabyte (MB) = 1,024 K ~ 1 million bytes– gigabyte (GB) = 1,024 MB ~ 1 billion bytes– terabyte (TB) = 1,024 GB ~ 1 trillion bytes

• Typical PC Capacity (9/01)– RAM = 64 - 256 MB– High Density (HD) diskette - 1.44 MB– Hard Drives = 10 - 80 GB– CDs = >620 MB – DVD = 4.7 GB

Types of Computers(the distinction is blurring)

• Personal / Microcomputers– relatively compact, one primary microprocessor– desktop, laptop, palmtop, PDA, specialized

• Mid-range Systems (Servers)– may have more than one microprocessor, typically

multi-user & focused on a functional area or task (marketing, plant management).

– Vintage midranges (proprietary OS): IBM AS/400 (updated), DEC VAX (discontinued)

– Servers (UNIX/NT): Intel-based, Sun, HP, IBM

Types of Computers (cont.)• Mainframes (IBM)

– large, expensive computer, supports multiple user groups, terminals, run several applications at once.

– costly: support staff, air conditioning, software– secure: centralized programs & data are easier to backup,

maintain, and monitor

• Super Computers (mfgs: IBM, Hitatchi, Compaq)– massively parallel and/or clustered– used to solve problems requiring long, difficult calculations

(e.g.airline scheduling, advanced modeling - biotech, weather, risk management)

Software

Operating Systems

Applications

Applets

Java Challenges the Paradigm

SoftwareOperating Systems

control hardware and provide an environment in which applications execute

Application Programsend-user program that performs a specific function

Individual examples: word processor, spreadsheet. Collections of apps: Office (suite), SAP R/3 (ERP)

Appletssmall application programs which execute within a

larger environment (e.g. Java applets within browser)

operating system

applications

Competition in the OS Space

PersonalComputersWindows ME

Windows XP

Apple

Mutli-UserSystemsWindows 2000

Windows.NET

Unix (Sun, IBM, HP, Compaq)Linux

ConsumerDevicesWindows CEUltimate TV

“Talisker” XBox

Palm (handheld)Liberate (set top)Sony

MS Today

MS Future

Competition

Java - a Cross-Platform Standard• Java Consist of Two Components

– object oriented programming language– virtual machine (software that executes Java byte code)

• Advantages– Write-once run-anywhere. Runs on any machine with a JVM

regardless of OS or microprocessor– object-oriented language (reuse, faster dev.)– secure

• Disadvantages– 1) slow due to download times, 2) slow due to interpreting line

by line, 3) inconsistent Java VMs

Traditional Programs...

Netscape Navigator for Windows

Netscape Navigatorfor Macintosh

Windows Compiler

Macintosh Compiler

Intelcode

680x0 code

1001001001...

0101100101...

1110101110...

PowerPC code

… are written for an Operating System (Windows98, Macintosh, etc.) & compiled for a microprocessor (Intel x86, 680x0, PowerPC, etc.). Compiled code is ready to be executed by the appropriate microprocessor (fast).

DrawWindow()……

GetWindow()……

(code can execute on OS & processor)

Java Programs...

Java Program Java Compiler

Windows,Intel JVM

0001011110...

… are written for the Java Virtual Machine (JVM). In theory, the same Java byte code can execute on any computer with a standard JVM, regardless of OS or processor (write once, run anywhere). Byte code is interpreted line-by-line for each processor (slow).

OpenWindow()……

Macintosh,PowerPC

JVM

Sun Solaris,Sparc JVM

Compaq UNIX, Alpha

JVM

Java bytecode

1011000110...

0101101100...

1100001010...

0111101100...

…and more

(code is generic & must be interpreted)

(JVM software isthe interpreter)

Java is Often Confused With...• JavaScript

– interpreted programming language that co-exists in same files as HTML (doesn’t need to be compiled into byte code)

– slower than Java– easier to program– supported by Netscape & Microsoft (w/some

consistency problems)– unlike Java, can only be used to create web pages

(Java can be used to create stand-alone applications that execute outside the browser).

Java is Often Confused With...• ActiveX

– Microsoft's component technology architecture (e.g. a way to string together pieces of reusable code).

– Compiled, so it’s faster than Java, but not cross platform.

– Unlike Java, it allows full access to the operating system (including file access commands). This means that ActiveX components are potentially less-secure than Java (easier to spread viruses, deploy malicious programs).

Multi-user Systems Architecture

• Architectures– enable the range of technical options (and hence

business options) available to a firm– implications regarding cost, flexibility, security

• Host / Terminal Model

• Client / Server Model– fat clients– thin clients– three / n-tier model

• P2P & Grid Computing

Host / Terminal Model

Dumb terminals typically display only text sent from host. They do not perform any computing & don’t have a microprocessor. PCs can run terminal programs to act like dumb terminals & access hosts.

All programs & data are on the host (usually mainframe)

Host / Terminal Model

• Advantages– proven, reliable technology– less complexity (fewer vendors)– centralized security, version control, & backup

• Disadvantages– costly hardware & software– aging technology– text-based interface difficult to use– applications are tightly integrated with database

Client / Server Computing• Client

– a program which makes request of another program, usually on another computer (e.g. web browser)

– requests data or other action from servers

• Server– a program (usually on another computer) that runs

services that are shared among multiple client/users on a network (ex. E-mail server, web server, database server).

– responds to client requests (delivers data, performs tasks)

Client / Server Model

PC executes client codeclient code makes a

request

Server executes server code & responds to request, holds data

sales

accounting

wheels

chemicals

Divide & Conquer

Share & Share Alike

Client/Server• Advantages

– easier to use (PC GUI)– faster to develop– database separate from applications (enables data

integration across systems & reuse)– cheaper hardware (if PCs are in place)

• Disadvantages– complex (multi-vendor), new technology (lowers reliability

& raises maintenance costs)– security vulnerabilities– version control

Variants of Client/Server

Fat Clientsclient code stored

(larger files, some business logic)client code executes

Server(some b-logic)Data

Thin Clients (NCs, browser apps.)client code executes

(smaller files, mostly GUI)

client code storedServer(most b-logic)Data

Three-Tier (n-tier) Architecture

client code executes(mostly GUI)

ServerData

b-logic

back-end logic (shared or reused)palm

pocket pc

web

southwestairlines.com dollar.com

Data & Information

Potentially a Key Source of Competitive Advantage

Data, Information, & Knowledge

• Data - raw facts, figures, and details.

• Information - organized, meaningful, and useful interpretation of data. Has a context, answers a question.

• Knowledge - an awareness and understanding of a set of information and how that information can be put to best use.

• Many firms are data rich and info poor: victims of an old or poorly planned architecture

Examples of Data, Information, & Knowledge

Data: raw, no context 900,000 1,150,000 1,200,000 1,100,000

Information: meaningful, has contextQuarter 1 Quarter 2

Post 900,000 1,150,000 Kellogg's 1,200,000 1,100,000

Post lowered its prices after the first quarter.Price change has caused Post sales to rise at the expense of Kellogg’s

Knowledge: information above & other information creates an awareness of impact

Types/Classifications ofInformation Systems

Transaction Processing Systems (TPS)

• A shared IS that uses a combination of IT and manual procedures to process data and information and to manage transactions.

• Examples: Cash Registers (POS), ATM• Characteristics:

– transactions are similar & repeatable– support multiple users in routine, everyday transactions

(usually tactical systems)– data capture with possible report generation– accuracy is critical, TPS “feed” other IS

Reporting Systems - MIS

• Sometimes called Management Reporting Systems or Management Information Systems

• Characteristics– use data captured and stored from TPS– reports consolidated information rather than

details of transactions– supports reoccurring decisions– provides reports in pre-specified formats (on

screen, printed, or data)

Decision Support Systems (DSS)• Allow users interrogate computers on an ad hoc

basis, analyze information, and predict the impact of decisions before they are made. [key: unstructured, user-led exploration]

• Characteristics– Assists in ad-hoc decision making– Used when requirements, processes, or procedures are

unstructured & aren’t known in advance– Provides info needed to define & solve a problem– Provides information in format determined at time of need

Management Levels & IS

Strategic Planning

Management Control

Operational Control

DSS

MIS

TPS

Expert Systems (ES)

• An artificial intelligence system that uses captured human expertise to evaluate and solve problems

• Characteristics:– diagnoses situations and/or recommends a

course of action– problems are structured and repeatable– application scope is limited to a particular

problem area (domain)

Other Types of Artificial Intelligence (AI)

• Neural Networks– hunt for patterns in historical data– build their own expertise based on prior history– require clean data & consistency between

performance history and future events

• Genetic Algorithms– search for optimal solutions based on natural

selection: (1) propose solution (2) evaluate results against earlier solution (3) mutate & return to step 1

Keane’s Space Truss Design