Using MIS 2e Chapter 4: Hardware and Software David Kroenke

1. Using MIS 2e Chapter 4: Hardware and Software David Kroenke This presentation has been modified from the original and should be downloaded from the Course Documents area in Blackboard

2. Study Questions • Q1 – What does a business professional need to know about hardware? • Q2 – What is the difference between a client and a server? • Q3 – What does a business professional need to know about software? • Q4 – What is open source software? • Q5 – How can you use this knowledge? Chapter 4: Hardware and Software

3. Memory Input Central processing unit (CPU) Output Auxiliary Storage Auxiliary Storage Q1 – What does a business professional need to know about hardware? The idea for a general purpose computing machine originated with Charles Babbage in the 19th century who went broke trying to build it – the technology of the day was insufficient. Hardware is comprised of electronic components and related gadgetry that input, process, output, and store data according to instructions encoded in computer programs or software Chapter 4: Hardware and Software

4. Q1 – What does a business professional need to know about hardware? • The CPU reads instructions and data from memory, processes them, and stores the results in memory • Memory is used for three purposes: • It holds instructions of the operating system • It holds instructions for application programs • It holds data • Memory is volatile; it must have power to retain data • Memory is also called RAM (random access memory); the term random indicates that the memory locations may be accessed in any order. • In truth, memory is cheap and is often the best way to get more performance out of a computer Chapter 4: Hardware and Software

5. Q1 – What does a business professional need to know about hardware? 1. An instruction is transferred from disk to memory 2. The instruction is moved from memory to the CPU (frequently used instructions are stored in cache) 3. The CPU performs a calculation and stores the result back in memory) 4. The result is moved from memory to disk 5. All of this is controlled by the operating system Chapter 4: Hardware and Software

6. A = 0100 0001 Byte (8 bits) Makes up one character Bit A single 0 or 1 Q1 – What does a business professional need to know about computer hardware? • All computers function as binary machines • A bit is a binary digit (a zero or a one) • A byte is the smallest addressable unit of memory; it is equivalent to 8 bits and it displays one character • ASCII (pronounced “as key”) is a binary code that converts the bits in a byte to a text character Chapter 4: Hardware and Software

7. Q1 – What does a manager need to know about computer hardware (IBM PC)? • IBM went outside the company to create the PC; it licensed the operating system from Microsoft and the microprocessor from Intel. (In terms of 2008 sales IBM is larger than Microsoft and Intel combined!) See: The Fortune 500 List for 2008 • The PC was created as an open machine enabling independent contractors to develop hardware and/or software to improve it. • Anyone could license software from Microsoft or buy Intel microprocessors. PC clones quickly followed and the market soon exploded. • IBM’s market share decreased from 100% in 1981 to zero; i.e., IBM no longer makes PCs. Chapter 4: Hardware and Software

8. IBM RAMAC (1956)First computer with a hard disk(4.4MB) $35,000/year IBM XT(1983)First PC with a hard disk – 10MB for $6000 Memory Stick (today) 1 GB for about $10 Q1 – What does a business professional need to know about computer hardware? • Kilobyte = 210 characters (~1,000 bytes) • Megabyte = 220 characters (~one million) • Gigabyte = 230 characters (~one billion) • Terabyte = 240 characters (~one trillion) Chapter 4: Hardware and Software

9. Q1 – What does a business professional need to know about computer hardware? • Purchase of a PC • Insist on unconditional 30-day return policy for full refund • Insist on a price guarantee • Pay with a credit card • Leverage to enforce above items • Double manufacturer’s warranty up to an additional year • Moore’s law ensures that the computer you buy today will cost less tomorrow. Check prices for 30 days, then enjoy your machine • The IBM/XT was equipped with a 10Mb fixed disk, 128KB of RAM, a monochrome monitor and more than 1,000 times slower than today’s machine. It sold for more than $10,000 in today’s money but it was the best computer you could buy in 1983. Chapter 4: Hardware and Software

10. Q2 – What is the difference between a client and a server? • A clientcomputer is used for applications such as word processing, spreadsheets, or email. Software connects the client to a network such as the Internet or a LAN company-based private network. • A servercomputer provides a service to the client such as email or database access. • Servers are just another type of computer, but they have multiple CPUs, lots of main memory, and very large storage disks. • Large Web sites use server farms to help process millions of transactions and activities in a coordinated fashion. Applications should be scalable; i.e., add servers as transactions increase • Cloud computing refers to a computing network on the Internet Chapter 4: Hardware and Software

11. Q2 – What is the difference between a client and a server (Thin versus Thick Clients)? • Client-server applications require software on both the client and the server. The difference between a thin client and a thick client is decided by the amount of software required on the client computer. • A thin client application only requires a browser like Internet Explorer. Accessing a Web site is an example of a thin client application. A thin client program is preferable because it doesn’t require extra software. • A thick client requires software programs in addition to a browser to function. Using Mozilla Thunderbird email is an example of a thick client application. Thick client software usually provides more features and functions. Chapter 4: Hardware and Software

12. Q3 – What does a business professional need to know about software? • The operating system (OS) is a computer program (actually many programs) that controls all of the computer’s resources • It manages main memory • It processes key strokes and mouse movements • It sends signals to the display monitor • It reads and writes disk files • It controls the processing of other programs • Four Common Operating Systems • Windows – Developed by Microsoft for the PC • Mac OS – Proprietary operating system by Apple • Unix – Developed by Bell labs in the 1970s • Linux – Open source operating system Chapter 4: Hardware and Software

13. Q3 – What does a business professional need to know about software? • Application software consists of programs that perform a business function. • Horizontal-market application software provides capabilities common to all organizations; e.g., word processor, graphics programs, spreadsheets, and presentation programs • Vertical-market application software serves the needs of a specific industry. Examples of such programs include those used by dental offices or auto mechanics • One-of-a-kind applications created for a unique need; e.g., IRS software to process tax returns • You can buy computer software several ways: • Off-the-shelf (horizontal applications) • Off-the-shelf with alterations (vertical applications) • Tailor made (one-of-a-kind applications) Chapter 4: Hardware and Software

14. Q4 – What is open source software? • A program’s source code is closely guarded and available only to trusted employees • Source code is the code as written and is readily understandable • Machine code is source code that has been transformed into executable binary code consisting of zeros and ones; not understandable by humans and cannot be modified • Open source means that the source code is freely available to the public • Successful open source projects include FireFox (a browser), MySQL (a DBMS), and Android (a mobile-phone operating system) • Programmers volunteer their services in order to: • Choose the projects they work on which they find interesting • Exhibit one’s skill and to find a job or consulting • Start a business selling services to support an open source product Chapter 4: Hardware and Software

15. Q5 – How can you use this knowledge (Specification of hardware/software)? • Large organizations will have an IS department that is likely to set formal standards for client hardware and software. • In medium to small organizations, policies are often less formal, and managers take an active role in setting specifications for their employees’ computers. Chapter 4: Hardware and Software

16. Q5 – How can you use this knowledge (Creating a budget)? • First you need to establish your base requirements: • Assess the type of work employees perform and categorize each job. • Determine the computer workload requirements for each category. • Decide what your hardware and software requirements are for each category of worker. • Once you’ve established your base requirements, forecast changes in employees, workload, and department task requirements • Using your base requirements and change forecasts, prepare a budget that includes hardware and software prices based on organizational requirements and practices • Don’t forget potential overhead fees for networks, servers, and communication equipment. • Assess your proposed budget for feasibility and reasonability according to your organization’s competitive strategy. You may have to prepare justifications for your budget decisions. • The last step is to document the results of your efforts for later use. Chapter 4: Hardware and Software

17. Q5 – How can you use the knowledge (Creating a budget)? • Managers should make software purchasing decisions based on the type of software and its functions that employees need to accomplish their tasks. • Some software programs require a company to purchase a site license that allows all its computers to run the program. • An upgrade adds new features and functions to existing programs and is less costly than a new software license. • Managers choose operating system software based on organizational policy. • Managers choose horizontal-market software based on organizational policy and the components employees need to for their jobs. • Managers choose vertical-market software based on job category needs. • It is illegal to use software without proper licenses. Chapter 4: Hardware and Software

18. Summary • The CPU reads instructions and data from memory, processes them, and stores the results in memory • Memory is volatile and requires power to retain data; magnetic and optical disks are non-volatile and retain data without power. • All computers are binary machines. A bit is a binary digit; a byte (8 bits) is the smallest addressable unit of memory • Computer software consists of the operating system and application software; Windows, Unix, Mac OS, and Linux are popular operating systems. • Software can be purchased off-the-shelf, purchasedoff-the-shelf and altered, or tailor-made. • A client computer is used for basic applications; a server provides a service (type of program) to the client Chapter 4: Hardware and Software

19. Review: Select the appropriate term for each item Gigabyte – Thin client – Linux – Byte – Central Processing Unit – Operating System – Memory – Credit Card – Fixed Disk – Unix • The smallest addressable unit of memory Byte • Approximately 1,000 megabytes Gigabyte • An open-source operating systemLinux • Requires only a browser Thin client • Controls a computer’s resources Operating System • It loses its contents when power is turned off Memory • Retains its contents without power Fixed Disk • Operating system from Bell Labs Unix • The “Brain” of the computer Central Processing Unit • Doubles the warranty of a new computer Credit Card Chapter 4: Hardware and Software