Chapter One

1. Chapter One Developments in the Application of Information Technology in Business Presented by James Weimholt

2. Goals • Describe how IT has changed and how organizations have reacted to change • Identify transition points • Review past that it may be a foundation for future progress • Avoid past mistakes and build on successes

3. Assumptions About Information Technology • Can change the very nature of business • Can be seen as a necessary evil or as a source of strategic opportunity • Changes rapidly and makes business even more unpredictable • People play a significant role in IT

4. Early Days of Data Processing • 1950s – basically a giant calculator • 1960s - automated well-defined clerical processes • High cost of hardware and systems development • Limited selection of applications

5. The First Sign of Maturity Three Areas of Concern Merits • Cost savings mitigated by replacing clerical staff with expensive hardware and highly paid professionals • Costs of maintenance • User dissatisfaction because systems are inflexible

6. The First Sign of Maturity Three Areas of Concern Side Effects • Most implementations were not the best • Poorly defined specs • Unproven approaches

7. The First Sign of Maturity Three Areas of Concern Inherent Limitations • Batch processing rather than online • Data was fragmented across the organization in various systems

8. The First Sign of Maturity • Concerns led to emergence of software engineering • Advances in technology, drop in cost • Mid 1970s – minicomputers become common

9. Practical Solutions to Practical Problems 1970s “Big is Beautiful”

10. Practical Solutions to Practical Problems Problems with Large Projects • Technical specs developed in isolation • Specs were considered infallible • HR issues: technical staff worked in isolation • Projects over budget and timescale • Assembly line approach to development did not work

11. Practical Solutions to Practical Problems Emergence of Project Management No two programmers are the same

12. Practical Solutions to Practical Problems • Project team approach to solve complex problems • Project management method focus on milestones rather than the activity itself 1970s project team

13. Practical Solutions to Practical Problems Emergence of Structured Programming • Programs lacked control structures • Spaghetti logic, use of GO TO statement • Little, out of date, or no documentation • Development of languages such as PASCAL

14. From Processes to Data Changes in Focus • Emphasize data and users • Data is separate from applications • Distributed systems rather than central • More flexibility

15. From Processes to Data Databases • Different data representations • Network • Hierarchical • Relational • New professions emerge • Database designer • Data analyst • Database administrator

16. From Processes to Data Programming • Specialization in coding apps or operating systems • Programmers specialize in different languages

17. Towards Management Information Systems • Info considered a fundamental and major resource • Initial approach was to put MIS on top of corporate database • Problems • Impossible to integrate • Only historical information • Needed external data • Needed ad hoc reporting • Not geared to handling unstructured problems

18. Towards Management Information Systems • Technology can only solve technical problems, not managerial problems • MIS focused on information management rather than management information • Approach changed by the 1980s • Information focused • Audience was middle managers • Integrated data flows • Inquiry and report generation tools

19. Questions?