MP3 / MM740 Strategy

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MP3 / MM740Strategy Information
SystemsModule 1 Fall 2002 Introduction to
Information Technologies, Systems, and Competition

• John Gallaugher
• john.gallaugher_at_bc.edu
• www2.bc.edu/gallaugh

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Topics Covered

• Components of an Information System
• Changing IS landscape managerial implications
• Hardware
• Moores 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

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FoxMeyer
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Massive System Projects
Mergers Acquisitions
Deregulation
Globalization
The Internet
Technical Advances
Skills Crunch
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5 Components of an IS
Data
Hardware
People
Information Systems
Software
Procedures
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Hardware

• Computers
• Peripherals
• Networking Equipment

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Source Intel Corp.
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The PC _at_ 20
2001 Dell Dimension Processor Intel Pentium
4,1.4 GHz 20 GB hard drive 950
1991 Compaq 486 Processor Intel 80486, 33
MHz 120 MB hard drive 2,300
1981 IBM PC Processor Intel 8088, 4.77 MHz Dual
160 KB floppy drives 3,300
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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 gt620 MB
• DVD 4.7 GB

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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

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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

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Network Externalities(a.k.a. Network Effects,
Metcalfes 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
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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
  doesnt always win

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Software

• Operating Systems
• Applications
• Applets
• Java Challenges the Paradigm

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Software
Operating Systems control hardware and provide an
environment in which applications execute
Application Programs end-user program that
performs a specific function Individual examples
word processor, spreadsheet. Collections of apps
Office (suite), SAP R/3 (ERP) Applets small
application programs which execute within a
larger environment (e.g. Java applets within
browser)
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Competition in the OS Space
Personal Computers Windows XP Apple
Mutli-User Systems Windows 2000 Windows.NET Un
ix (Sun, IBM, HP / Compaq) Linux
Consumer Devices Pocket PC OS Ultimate
TV Xbox Tablet PC Windows XP Media Center
Edition Palm (handheld) Liberate (set top) Sony
MS Arsenal Competition
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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

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Traditional Programs...
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).
Netscape Navigator for Windows
Windows Compiler
Intel code
10010 01001...
DrawWindow()
(code can execute on OS processor)
Netscape Navigator for Macintosh
Macintosh Compiler
01011 00101...
PowerPC code
GetWindow()
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Java Programs...
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).
(code is generic must be interpreted)
Java Program
Java Compiler
00010 11110...
Java byte code
OpenWindow()
Windows, Intel JVM
Macintosh, PowerPC JVM
Sun Solaris, Sparc JVM
Compaq UNIX, Alpha JVM
and more
(JVM software is the interpreter)
10110 00110...
01011 01100...
11000 01010...
01111 01100...
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Java is Often Confused With...

• JavaScript
• interpreted programming language that co-exists
  in same files as HTML (doesnt 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).

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Java is Often Confused With...

• ActiveX
• Microsoft's component technology architecture
  (e.g. a way to string together pieces of reusable
  code).
• Compiled, so its 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).

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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

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Host / Terminal Model
All programs data are on the host (usually
mainframe)
Dumb terminals typically display only text sent
from host. They do not perform any computing
dont have a microprocessor. PCs can run terminal
programs to act like dumb terminals access
hosts.
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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

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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)

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Client / Server Model
Divide Conquer
Server executes server code responds to
request, holds data
PC executes client code client code makes a
request
Share Share Alike
sales
wheels
accounting
chemicals
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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

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Variants of Client/Server
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palm
back-end logic (shared or reused)
pocket pc
web
southwestairlines.com
dollar.com
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Data Information

• Potentially a Key Source of Competitive Advantage

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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

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Examples of Data, Information, Knowledge
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Types/Classifications ofInformation Systems
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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

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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)

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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 arent known in advance
• Provides info needed to define solve a problem
• Provides information in format determined at time
  of need

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Management Levels IS
Strategic Planning
DSS MIS TPS
Management Control
Operational Control
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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)

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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

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Keanes Space Truss Design