MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information...

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MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher [email protected] www2.bc.edu/~gallaugh
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Transcript of MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information...

Page 1: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

MP3 / MM740Strategy & Information Systems

Module 1: Fall 2002 Introduction to Information Technologies,

Systems, and Competition

John Gallaugher

[email protected]

www2.bc.edu/~gallaugh

Page 2: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Topics Covered• Components of an Information System

– Changing IS landscape & managerial implications

• Hardware– Moore’s Law & the Evolution of Computing Competition– Grid computing

• Software– Operating Systems, Java, and Software Competition– Architecture Basics: Client / Server, Web Services

• Data / Information – the killer asset

• Types of Information Systems– TPS, Reporting Systems, DSS– Artificial Intelligence

Page 3: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

FoxMeyer

Page 4: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Massive System Projects

Deregulation

Globalization

The Internet

Skills Crunch

Mergers & Acquisitions

Technical Advances

Page 5: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

5 Components of an IS

Data

Procedures

Software

Hardware

People

InformationSystems

InformationSystems

Page 6: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Hardware

Computers

Peripherals

Networking Equipment

Page 7: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Source: Intel Corp.

Page 8: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 9: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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 (9/02)– RAM = 128 - 256 MB– High Density (HD) diskette - 1.44 MB– Hard Drives = 10 - 80 GB– CDs = >620 MB* – DVD = 4.7 GB*

Page 10: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Types of Computers(the distinction is blurring)

• Personal / Microcomputers– single-user, usually single processor, compact– 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, web server).

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

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

Page 11: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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 relatively easy to

backup, maintain, upgrade, and monitor

• Super Computers (NEC, IBM, Hitachi, HP/Compaq)– massively parallel and/or clustered– used to solve problems requiring long, difficult calculations

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

– evolution to grid computing…

Page 12: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.
Page 13: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Network Externalities(a.k.a. Network Effects, Metcalfe’s Law)

• A product or service becomes more valuable as its installed base expands• Why do consumers care about installed base?

– Exchange opportunities– Stability– Extrinsic, complementary benefits

More Exchange Opportunities

More Members

Page 14: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Why are Markets for Network Goods Different?

• Market competition occurs very early and is particularly fierce

• Markets are ‘tippy’ and subject to bandwagons

• Markets exhibit monopolistic tendencies

• The ‘best’ technology or highest quality product doesn’t always win

Page 15: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Software

Operating Systems

Applications

Applets

Java Challenges the Paradigm

Page 16: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 17: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Competition in the OS Space

PersonalComputersWindows XP

Apple

Mutli-UserSystemsWindows 2000Windows.NET

Unix (Sun, IBM, HP / Compaq)Linux

ConsumerDevicesPocket PC OSUltimate TVXboxTablet PCWindows XP Media Center Edition

Palm (handheld)Liberate (set top)Sony

MS Arsenal

Competition

Page 18: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

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

• Disadvantages– slow due to download times– slow due to interpreting line by line– inconsistent Java Virtual Machines

Page 19: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Traditional Programs...

Netscape Navigator for Windows

Netscape Navigatorfor Macintosh

Windows Compiler

Macintosh Compiler

Intelcode

1001001001...

0101100101...

PowerPC code

… are written for an Operating System (Windows, Macintosh, etc.) & compiled for a microprocessor (Intel x86, PowerPC, Sun UltraSPARC, Compaq Alpha, etc.). Compiled code is ready to be executed by the appropriate microprocessor (fast).

DrawWindow()……

GetWindow()……

(code can execute on OS & processor)

Page 20: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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)

Page 21: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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).

Page 22: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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).

Page 23: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

• ASPs, EDI, and Web Services• Peer-to-Peer

Page 24: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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)

Page 25: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.
Page 26: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 27: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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)

Page 28: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 29: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 30: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 31: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.
Page 32: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.
Page 33: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

back-end logic (shared or reused)palm

pocket pc

web

southwestairlines.com dollar.com

Page 34: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.
Page 35: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.
Page 36: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Data & Information

Potentially a Key Source of Competitive Advantage

Page 37: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 38: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 39: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Types/Classifications ofInformation Systems

Page 40: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 41: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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)

Page 42: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 43: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Management Levels & IS

Strategic Planning

Management Control

Operational Control

DSS

MIS

TPS

Page 44: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Expert Systems (ES)

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

• Characteristics:– diagnosis, configuration, and/or recommend a

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

problem area (domain)

Page 45: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

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

Page 46: MP3 / MM740 Strategy & Information Systems Module 1: Fall 2002 Introduction to Information Technologies, Systems, and Competition John Gallaugher john.gallaugher@bc.edu.

Keane’s Space Truss Design