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Instructor's Manual, Chapter 6
Management Information Systems, Second Canadian Edition
6-1
Chapter 6
Hardware and Software
Teaching Objectives
Students should be able to answer the following questions:
1. What computer processing and storage capability does our organization need to manage its
information and conduct business transactions?
2. What arrangement of computers and computer processing would best benefit our
organization?
3. What kinds of software do we need to run our business? What criteria should we use to
select our hardware?
4. How do we stay current on new software? How do we know that it would benefit our
organization?
5. How should we acquire and manage the firm’s hardware and software?
Key Terms
The following alphabetical list identifies the key terms discussed in this chapter. The page
number for each key term is provided.
Application Service Provider (ASP), 220
Application software, 205
Arithmetic-logic unit (ALU), 193
Batch processing, 200
Bit, 193
Byte, 193
C, 208
C++, 208
Capacity planning, 217
CD-ROM (compact disk read-only memory), 196
CD-RW (CD-ReWritable), 197
Central processing unit (CPU), 193
Centralized processing, 202
Client, 202
Client-server computing, 202
COBOL (COmmon Business Oriented Language),
208
Compiler, 204
Computer, 192
Control unit, 194
Data management software, 203
Digital video disk (DVD), 197
Distributed processing, 202
Downsizing, 202
Electronic mail (e-mail), 214
MP3 (MPEG3), 201
Multimedia, 200
Natural language, 208
Network-attached storage (NAS), 197
Network computer (NC), 202
Object-oriented programming, 209
Office 2000 and Office XP, 213
Online processing, 200
Open-source software, 205
Operating system, 204
Parallel port, 199
Parallel processing, 195
Peer-to-peer computing, 203
Personal computer (PC), 201
Port, 198
Presentation graphics, 204
Primary storage, 193
Program, 203
Query language, 208
Radio-frequency identification (RFID), 198
RAID (Redundant Array of Inexpensive Disks), 196
RAM (random access memory), 194
Reduced instruction set computing (RISC), 195
ROM (read-only memory), 194
Copyright © 2005 Pearson Education Canada Inc.
Instructor's Manual, Chapter 6
Management Information Systems, Second Canadian Edition
Enterprise application integration software, 216
Enterprise software, 215
Firewire, 199
Floppy disk, 196
Fourth-generation language, 208
Graphical user interface (GUI), 205
Grid computing, 203
Groupware, 214
Hard disk, 196
Hypertext markup language (HTML), 211
Infrastructure, 192
Integrated software package, 213
Java, 210
Machine cycle, 194
Machine language, 206
Magnetic disk, 196
Magnetic tape, 197
Mainframe, 201
Massively parallel computers, 195
Megahertz, 195
Microprocessor, 195
Middleware, 215
Midrange computer, 201
Minicomputer, 201
6-2
Scalability, 217
Secondary storage, 196
Serial port, 198
Server farm, 201
Server, 201
Software package, 212
Source code, 204
Spreadsheet, 203
Storage area network (SAN), 197
Storage service provider (SSP), 198
Streaming technology, 201
Supercomputer, 201
System software, 203
Total cost of ownership (TCO), 218
Universal serial bus (USB), 199
Utility computing, 222
Visual Basic, 208
Visual programming, 210
Web browser, 214
Web server, 215
Workstation, 201
XBRL (eXtensible Business Reporting Language, 212
XHTML(Extensible Hypertext Markup Language), 212
XML (extensible Markup Language), 211
Teaching Suggestions
Since your student's knowledge and comfort level with technology is likely to vary, this chapter
can be difficult to teach and test. The technically adept know most of this material, and some of
the non-technical types may not find the chapter's contents particularly interesting. However, it
is important that you demonstrate the importance of this chapter to your students since the
students must understand the role of computer technology to the success of the organization
and its objectives.
One way to begin the chapter discussion is to present several horror stories. (Your students
may even be able to provide stories of their own.) For example, many firms have found moving
to a client-server architecture is not the dream they had been led to believe. The shortage of
support, programming, and management tools, as well as the shortage of staff who understand
the technology and programs in such an environment, has doomed many such changes. Also,
you should mention to your students that programming problems have cost organizations
millions of dollars and provide examples of programming projects which simply failed.
Section One, “Computer Hardware and Information Technology Infrastructure,” introduces
students to essential computer hardware terminology and concepts. Students are introduced to
a contemporary computer system, the CPU and primary storage, computer processing,
secondary storage, input and output technology, and batch and online input and processing. If
possible, bring a system unit to class and allow students to see the computer system's parts.
Students are often eager to see the inside of a computer and also see that the machine is not
as mysterious as it first appears. You should consider organizing a tour of your university's IT
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facilities or the facilities of a local company. Students are often eager to see information
technology in action.
Ask your students to review local or national ads for computer systems. Alternatively, ask your
students to visit the Web sites for several computer companies, such as Dell and Gateway. Ask
your students to evaluate the different computer systems and make recommendations about
which system they would recommend purchasing. Alternatively, give your students a scenario
and ask the students to select the most appropriate system for the scenario. Ask your students
to discuss the factors that influenced their purchasing decisions.
Technology is changing so quickly that by the time students read this chapter, new hardware
and software products will be out on the market. Students may naturally feel more comfortable
with this chapter’s material because hardware and software are the components with which they
are most familiar. If they recognize the basic hardware components and understand their uses,
they can better communicate with the technicians who are critical to decisions on the uses of
the computer, which after all are business decisions. Students (and future managers) need to
know the limitations and possibilities of the computer, and the vistas and limitations of the
hardware are critical to that understanding. If they can understand the different kinds of software
– from off-the-shelf application software to program-it-yourself software – and that it is not
necessary to be a programmer in order to use software on information systems, then they really
have one of the two main points of the chapter. Secondly, students should learn that there are a
variety of tools to solve information system problems — different applications generators,
different programming languages, and different configurations.
Section Two introduces students to the different categories of computers and computer
systems. You should spend some time discussing the capabilities of the different computer
types. This is a good place to discuss technological trends. One trend that is familiar to many of
us is the continual increasing memory, speed, and storage capabilities of personal computers.
Also, you may want to note the change in interfaces. Another trend is what could be called the
shrinking of supercomputers. Most supercomputers in use now are parallel computers. It is
possible to link together Intel processors running Linux to form a supercomputer using the
Beowolf and Extreme Linux set of tools. One version offered by IBM costs $1.25 million
compared with the over $10 million a year that Cray supercomputers cost. Not everyone needs
a parallel processing supercomputer, but the decrease in price may increase the use of
supercomputers for mathematical and graphical processing, data visualization, and pattern
recognition.
Section Three introduces students to the different types of software. You might take a quick
survey of your students to see what operating systems and application software they currently
use. Most of the answers will probably revolve around the Windows operating systems and
Microsoft Office suite. However, it is possible that some of your students may use software that
the rest of the class is not as familiar with. If this occurs, have your students explain why they
use that particular operating system and application software.
Students need to understand the business implications of choosing an operating system, since
computer systems depend upon operating systems and business capabilities are affected by
operating systems. Some operating systems are better designed for networking, and other
operating systems are better for speed. You do not need to denigrate MS-DOS or Windows. In
fact, you may find it helpful to explain how the limitations of the operating systems and the initial
hardware of PCs created many problems with which we are still contending. This explanation
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Instructor's Manual, Chapter 6
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can help students understand the importance of the operating systems and the choice of
operating systems. Note, however, that memory problems are no longer a major issue.
Table 6-4 provides a list of the leading PC operating systems. Ask your students to research
these different operating systems. As part of their research, ask your students to identify the
features of the operating systems, as well as the market share for each operating system.
Which is the most appropriate operating system? Also, ask your students to investigate the
application programming languages mentioned in Table 6-5. Which is the most appropriate
programming language?
Many of the more technically adept students might argue over what should be the appropriate
operating system or the appropriate programming language. Students should be warned that in
their managerial careers, they may have to sort out these issues because the selection of the
proper operating system or software package must support the business, and the technical
people may not understand that. Unfortunately, for many managers, the answer may be simple–
which application software I can get – and that selection may harm the business or at least may
not help it. Students need to learn that (almost) anything that can be done in one language can
be done in another, but one may be faster for this application while another may be easier to
use. You should talk about the superiority of some languages for some tasks. For instance, in
Web database development applications, Visual Basic is the language of choice. In fact, the
release in early 2001 of VB.NET is the first version of the language that is truly object-oriented.
Point out to students that you can make a mistake in choosing a language. There are many
examples of companies, organizations, and governments choosing the wrong language for the
wrong problem and creating disaster.
Section Four is an important section to discuss with your students. This section stresses the
importance of understanding the technology requirements for the digital firm and electronic
commerce, discusses how to determine the total cost of ownership, and discusses the decision
to own and maintain technology assets or use external technology service providers. To
reinforce the contents of this section, have your students research the total cost of ownership for
your school’s computer lab. Likewise, ask your school’s information technology director to speak
to your class about the total cost of ownership for the university's technology assets.
“Window On” Boxes
Window on Technology: Can Linux Go Mainstream?
Should a company select Linux as an operating system for its major business
applications?
Before making the move to Linux, a company should determine how the move could promote
organizational efficiency and productivity. The company should also consider the total cost of
ownership. Many companies are selecting Linux as their operating system of choice. Marks
Work Wearhouse, Tradeworx, Dreamworks, Boeing, Western Geco, CS First Boston, and
E*Trade are just a few of the companies that are using Linux. Since Linux is nonproprietary,
inexpensive, stable, portable, and based on UNIX, it provides many benefits to companies
wishing to use it as their operating system.
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What are the business as well as the technology issues that should be addressed when
making that decision?
The issues include total cost of ownership, employee training, types of computer hardware that
will run the operating system, what modifications are needed, and who will manage and modify
the software.
Window on Management: Canadian Pacific Moves Information As Well as Freight
What is the benefit of having a common look and feel across all desktops?
The CPR staff would be able to work with a system that would avoid conflicts, allow users to
become familiar with the GUI, and reduce potential incompatibility among applications.
What are some of the training challenges in deploying the new computing platform?
Some employees are resistant to change; others just can’t grasp the new systems if they are
significantly different from the old system. The new systems may not perform the same
functions as the old ones, creating more resistance to change.
What are some of the benefits of using a single supplier like Microsoft?
Using a single supplier allows a company to implement a single standard of hardware and
software that should help to avoid any system incompatibilities and provide the most
interconnectivity possible.
What are some of the disadvantages of using a single supplier?
Using a single supplier prevents a company from expanding its application base with different
vendors that may offer more functionality than a single supplier. It also limits the development
and implementation options for future projects.
For Discussion Questions
1. Why is selecting computer hardware and software for the organization an important
management decision? What management, organization, and software and
technology issues should be considered when selecting computer hardware?
Since computer hardware and software can significantly impact the organization's
performance, the selection of these IT assets is critical to the organization's operations
and ultimate success. Issues include capacity planning and scalability, making decisions
regarding the required computer processing and storage capabilities, computer and
computer processing arrangements, kinds of software and software tools needed to run
the business, determining the criteria necessary to select the right software, the acquisition
and management of the organization's hardware and software assets, and what new
technologies might be available and beneficial to the firm.
2. Should organizations use application service providers (ASPs) and storage service
providers (SSPs) for all their software and storage needs? Why or why not? What
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Management Information Systems, Second Canadian Edition
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management, organization, and technology factors should be considered when
making this decision?
The answer to the first question is dependent upon the organization and its processing,
storage, and business needs. When evaluating ASP and SSP vendors, the organization
should examine such factors as availability and reliability, technology, fees and how the
fees are assessed, and available applications. Managers should compare the costs and
capabilities of using ASPs and SSPs to the organization's costs and capabilities of
operating and owning its own hardware and software assets. The organization should
examine how using ASPs and SSPs will impact organizational culture and how using an
ASP or SSP addresses organizational and business needs. The technology factors
include examining how well usage of ASPs and SSPs fits with the firm's IT infrastructure,
as well as examining the appropriateness of using an ASP and SSP to address current
problems.
Review Questions
1. What are the components of a contemporary computer system?
The major components of a contemporary computer system are the central processing
unit (CPU), primary storage, secondary storage, input devices, output devices, and
communication devices. Figure 6-1 shows the hardware components of a computer
system.
2. Name the major components of the CPU and the function of each.
The control unit and the arithmetic-logic unit are the major CPU components. The control
unit of the CPU coordinates and controls the other parts of the computer system. It reads a
stored program and directs other components of the computer system to perform the tasks
required by the program. The arithmetic-logic unit performs the principal logical and
arithmetic operations of the computer. It can add, subtract, and determine when one
quantity is greater or lesser than another quantity, or when they are equal.
3. Distinguish between serial, parallel, and massively parallel processing.
Serial processing processes one instruction at a time, using one processing unit (CPU).
Parallel processing processes a number of instructions simultaneously by the use of
multiple processing units (CPUs). The problem to be processed is broken down into
smaller parts and various CPUs each work on one part.
Parallel processing uses a small number of powerful, expensive, and specialized chips.
With massively parallel processing, huge networks of hundreds or thousands of
inexpensive, commonly used processor chips are interwoven in complex and flexible ways
to work on a computing problem.
4. List the most important secondary storage media. What are the strengths and
limitations of each?
The most important secondary storage media are magnetic disk, optical disk, and
magnetic tape. Magnetic disks are the most widely used secondary storage medium and
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include floppy and hard disks. Magnetic disks are convenient to use, permit direct access
to individual records, are reasonably priced, and provide fast access speeds. Floppy disks
are removable and portable, yet are limited in their storage capacities. Hard drives provide
fast access to data and larger storage capacities. RAID technology packages more than
100 smaller disk drives with a controller chip and specialized software in a single larger
unit to deliver data over multiple paths simultaneously.
Optical disks store data at far greater densities than conventional magnetic disks, making
them valuable for storing vast quantities of data such as reference materials or
documents. There are several types of optical disk systems. CD-ROM is read-only
storage, WORM allows users to record data only once, CD-RW allows users to rewrite
data to the disk, and DVD is a high-capacity optical storage medium, capable of storing a
minimum of 4.7 gigabytes of data.
Information stored on magnetic tape is more time consuming to access than information
stored on a magnetic disk. Magnetic tape sequentially stores and accesses information,
and each reel of tape must be individually mounted and dismounted. Tape storage is
cheaper than disk, useful for batch applications (such as payroll), and for archiving large
quantities of data that do not require immediate usage. Tape storage is also more stable
than disk storage. (Disk packs can crash and disks must be backed up to record the
transactions that have occurred.) Disk technology is most useful for online applications
where direct access is required and for databases where interrelationships among records
exist.
5. List and describe the major computer input and output devices and the types of
ports.
Table 6-2 lists the major input and output devices. Input devices include the keyboard,
computer mouse, touch screen, optical character recognition, magnetic ink character
recognition, pen-based input, digital scanner, audio input, sensors, and radio frequency
identification. Output devices include display screen monitors, printers, and audio output.
The keyboard is the principal method of data entry. The computer mouse is a handheld
device with point-and-click capabilities. By moving the mouse around on the desktop, the
user can position the cursor. Once positioned, the user can press one of the mouse
buttons to communicate a command to the system. Touch screens allow the user to touch
the surface of a sensitized video display monitor with a finger or a pointer to make a
selection. Optical character recognition (OCR) devices translate specially designed marks,
characters, and codes into digital form. Magnetic ink character recognition (MICR) readers
read magnetic characters on documents such as bank checks. Pen-based input devices
are mainly handwriting recognition devices used on touch-sensitive screens and are often
seen with package delivery people. Digital scanners translate images such as pictures or
documents into digital form. Audio input devices compare the electrical patterns produced
by the speaker's voice to a set of prerecorded patterns and accept the sounds when a
pattern is recognized. Sensors are devices that collect data directly from the environment
for input into a computer system. Radio frequency identification use tags that incorporate
microchips to transmit information about items and their location to special RFID readers.
A display screen monitor or CRT displays the output on a screen much like a television
set. Printers produce printed copy of information output by the computer. There are impact
printers (dot matrix) and non-impact printers (laser, inkjet, or thermal transfer). Audio
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output devices are voice output devices that convert digitally stored words into intelligent
speech.
Ports provide connections to the central computer unit for peripheral devices, such as
printers, modems, flash card readers, digital cameras, and synchronizing devices for
PDAs. Serial ports send signals along the serial cable one bit at a time while parallel ports
send their signals along parallel cables multiple bits at a time, much faster than serial
connections. USB and Firewire ports are much faster than serial and parallel ports. USB
technology permits the “daisy-chaining” of up to 127 devices through the use of USB hubs.
6. What is the difference between batch and online processing? Diagram the
difference.
Batch processing involves grouping transactions together and then processing these
transactions at some later point to update a master file. Online processing involves
entering a transaction directly into the computer and processing it immediately. With online
processing, information in the system is always up-to-date and current. Figure 6-6
compares and contrasts batch and online processing.
7. What is multimedia? What technologies are involved in multimedia?
Multimedia integrates two or more types of media, such as graphics, sound, voice, full
motion video, still video, or animation into a computer-based application. Current
technologies include computer, high-resolution monitors, audio, video, graphics, and
streaming technologies. CD-ROM and DVD are important storage technologies for
multimedia.
8. What is the difference between a mainframe, a minicomputer, a server, and a PC?
Between a PC and a workstation?
The difference between these machines depends, to some degree, on size. The
mainframe is bigger and faster, has more storage, and can allow more users than a PC.
Big AS/400s are really mainframes. A big, fast PC with superior graphics capability is not
much, if any, different from a workstation. Midrange computers are middle-sized and have
larger memory, storage, and are multi-user. PCs are for single users, as are workstations.
A server can be a mainframe or desktop computer, but specialized server computers are
often used in the role. Servers store and process shared data. They also perform backend functions not visible to users. An example is managing network activities.
Workstations have faster speeds, better graphics capability, and bigger monitors than
PCs. As the text explains, the lines between the types of computers are blurring.
9.
Compare the client-server, network computer, and peer-to-peer models of
computing.
The term client-server refers to a model for computing that splits processing between
"clients" and "servers" on a network, assigning functions to the machine most able to
perform the function. Figure 6-7 shows how client-server works. A network computer is a
thin client with minimal memory, storage, and processor power. A network computer does
not store software or data. The peer-to-peer computing model is a form of distributed
processing that links computers via the Internet or private networks so that they can share
processing tasks. Each computer, or peer, is considered equal in terms of responsibilities,
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Instructor's Manual, Chapter 6
Management Information Systems, Second Canadian Edition
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and each acts as a server to the others in the network. Unlike the client-server model, a
dedicated file server is not required. However, network performance is generally not as
good as with the client-server, especially under heavy loads.
10. What are the major types of software? How do they differ in terms of users and
uses?
The major types of software are system software and application software. System
software is concerned with the operating system, a special set of computer programs to
manage and control the central processing unit and its peripheral equipment. System
software acts as an intermediary between other software and the physical computer.
Application software is a set of programs for accomplishing specific tasks or business
functions required by end users. End users use application software to perform activities
such as word processing, Web page development, and data management.
11. What is the operating system of a computer? What does it do? What roles do
multiprogramming, virtual storage, time sharing, and multiprocessing play in the
operation of an information system?
The operating system manages and controls the general computing environment and the
activities of the computer system. It allocates and assigns computer resources (such as
primary memory, input and output devices, and telecommunications links), schedules
computer resources and jobs, and monitors computer system activities.
Multiprogramming is an operating system capability that permits multiple programs to
share a computer system's resources at the same time. Only one program is actually
using the CPU at any moment, but the computer's input and output facilities and portions
of primary memory can be allocated to other programs. Although only one program is
using the CPU at any one moment, multiple programs can be executing concurrently.
Virtual storage is a way of maximizing primary memory capacity for storing software
programs or for primary storage to deal with programs that require more memory than is
available. In virtual storage, a single program is broken down into a number of sections
called pages, each of which has a relatively small size. Since only a section of a program
is resident in primary memory, many more programs can be processed with limited
primary memory, since the programs can be broken down into pages.
Time sharing is an operating system capability that enables many users to share computer
resources at the same time. Each user uses the CPU for a tiny slice of time (approximately
2 milliseconds), but many users can be simultaneously connected to a CPU.
Multiprocessing links together two or more CPUs to work in parallel in a single computer
system.
12. List and describe the major PC operating systems.
Table 6-4 lists and describes the major PC operating systems. The table provides
information about Windows XP, Windows 98/Me, Windows 2000, Windows CE, UNIX,
Linux, OS/2, Palm OS, Mac OS, and DOS. You should focus student understanding on the
facilities and powers of the different operating systems, the age of the systems, and the
fact that Mac OS is an operating system for a different machine.
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Instructor's Manual, Chapter 6
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13. List and describe the major application programming languages for business. How
do they differ from fourth-generation languages?
Table 6-5 summarizes the major application programming languages, including COBOL,
C, C++, FORTRAN, BASIC, Pascal, and assembly language.
COBOL (COmmon Business Oriented Language) was developed in the early 1960s. It
was designed with business in mind. It is used for processing large data files with
alphanumeric characters and for performing repetitive tasks such as payroll. It is poor at
complex, mathematical calculations. C and C++ are powerful and efficient languages
developed at AT&T’s Bell Labs. They combine machine portability with tight control and
efficient use of computer resources. C++ is object-oriented. FORTRAN (FORmula
translator) is useful in processing numeric data and is used primarily for scientific and
engineering applications. BASIC and Pascal are used primarily in the teaching of
programming. Assembly language resembles machine language, but it substitutes
mnemonics for 1s and 0s, making it easier to program (although it is perhaps the most
difficult language). Assembly language is designed for a specific machine and specific
microprocessors.
Fourth-generation languages are sophisticated languages that enable end users to
perform programming tasks with little or no professional programmer assistance. They
also enhance the productivity of professional programmers. For example, very high-level
programming languages, query languages, or application generators have features that
can be employed by end users or less skilled programmers and can dramatically increase
application development productivity.
The seven categories of fourth-generation tools are PC software tools, query languages,
report generators, graphics languages, application generators, application software
packages, and very high-level programming languages. Table 6-6 provides a brief
description of these categories.
The main differences between fourth-generation tools and conventional programming
languages are the degree of user-friendliness and the ability to perform the same functions
with fewer lines of program instructions. Many fourth-generation languages are
nonprocedural or less procedural than conventional languages.
14. What is object-oriented programming? How does it differ from conventional
software development?
Object-oriented programming combines data and specific procedures that operate on that
data into an object. Instead of passing data to procedures, programs send a message for
an object to perform a procedure that is already embedded in it. Programmers can focus
on what they want an object to do, and the object decides how to do it. Each object is an
independent software building block that can be used in many different systems without
changing the program code.
In traditional programming, data and procedures are treated as independent components
and are not combined as in object-oriented programming. A separate programming
procedure must be written every time someone wants to take an action on a particular
piece of data. Procedures act on data the program passes to them.
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15. What are Java, HTML, XBRL, and XML? Compare their capabilities. Why are they
important?
Java is a programming language that delivers only the software functionality needed for a
particular task. With Java, the programmer writes small programs called applets that can
run on another machine on a network. With Java, programmers write programs that can
execute on a variety of operating systems and environments. Further, any program could
be a series of applets which are distributed over networks as they are needed and as they
are upgraded.
HTML (Hypertext Markup Language) is the language of the Web. It is the language that is
used to write Web pages, or as the text says, the page description language for Web
pages. It is based on SGML, standard generalized markup language, which was originally
a mainframe-based page markup language. The hypertext part of the language is in the
links to other Web pages or sites. It has become significant because of the importance of
the World Wide Web. Most documents on the World Wide Web are written in HTML.
XML, eXtensible Markup Language, is another standard which is an extension of HTML
that allows content which is live and more structured, thereby allowing manipulation of
data. XBRL (eXtensible Business Reporting Language) is a variant on XML, with tags
defined to permit analysis of business reports. Other such markup languages are being
developed, too.
They are important because the Web is important, and because they provide a standard
format for data exchange and for Web page descriptions.
16. Name and describe the most important PC productivity software tools.
The most important and widely used PC productivity software includes word processing,
spreadsheet, data management, presentation graphics, integrated software packages, email, Web browsers, and groupware.
Word processing software allows users to make changes in documents electronically in
memory, eliminating the need to retype entire pages to make corrections. It often includes
advanced features such as spelling checkers and thesaurus programs. Spreadsheets
provide computerized versions of traditional financial modeling tools such as the
accountant's columnar pad. Spreadsheets are composed of a grid of columns and rows
and are good at performing calculations on interrelated pieces of data. Data management
software is used for creating and manipulating lists and for combining information from
different fields. Data management software typically has facilities for creating files and
databases to store, modify, and manipulate data for reports and queries. Presentation
graphics software allows users to create professional quality graphics presentations.
Integrated software packages combine the functions of the most important microcomputer
software packages, such as spreadsheets, word processing, graphics, and data
management. E-mail software is used for computer-to-computer exchange of messages. It
is an important tool for communication and collaborative work. Web browsers are easy-touse software tools for accessing the Web and the Internet. Groupware provides functions
and services that support the collaborative activities of work groups.
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17. Name and describe the kinds of software that can be used for enterprise integration.
Enterprise software, middleware, and enterprise application integration software are kinds
of software that can be used for enterprise integration. Enterprise software consists of a
set of interdependent modules for applications such as sales and distribution, financial
accounting, investment management, materials management, production planning, plant
maintenance, and human resources that allow data to be used by multiple functions and
business processes for more precise organizational coordination and control. The modules
can communicate with each other directly or by sharing a common repository of data.
Contemporary enterprise systems use a client-server computing architecture. Major
enterprise software vendors include SAP, Oracle, PeopleSoft, and Baan. These vendors
are now enhancing their products to provide more capabilities for supply chain
management and exchange of data with other enterprises. Middleware connects two
disparate applications, allowing them to communicate with each other and to exchange
data. Enterprise application integration software ties together multiple applications to
support enterprise integration. Enterprise application integration software allows system
developers to graphically model systems and define rules that the applications should
follow to make the processes work. Then the software will generate the underlying
program instructions to link the existing applications to each other.
18. List and describe the principal issues in managing hardware and software assets.
Understanding the new technology requirements for electronic commerce and the digital
firm, determining the total cost of ownership of technology assets, and determining
whether to own and maintain technology assets or use external technology service
providers for the firm's IT infrastructure are the principal issues in managing hardware and
software assets.
Electronic commerce and the digital firm place new technology requirements on the
organization. Heavy demands are being made on both hardware and software because
organizations are replacing many manual and paper-based processes with electronic
ones. For example, the flood of digital transactions is making heavy demands on the firm.
Two areas that IS must pay attention to are capacity planning and scalability.
When selecting and managing an organization's hardware and software assets,
management must consider both direct and indirect costs. To determine the total costs of
ownership, an organization must consider the costs associated with hardware acquisition,
software acquisition, installation, training, support, maintenance, infrastructure, downtime,
and space and energy.
Once you know the total cost of ownership, you can then find out what the cost would be
to have external service providers own and maintain the hardware and software for you. If
you find it is cheaper to turn to external IT providers, you then will need to look to SSPs,
ASPs, and other types of external providers. However, you must also determine whether
the function is so strategic that it must be maintained internally.
Application Software Exercise
This project requires students to use their Web research skills to obtain hardware and
software pricing information and then use spreadsheet software to calculate costs for
Copyright © 2005 Pearson Education Canada Inc.
Instructor's Manual, Chapter 6
Management Information Systems, Second Canadian Edition
6-13
various system configurations. Students’ answers may vary, depending on the time when
they access the Web sites of computer hardware and software vendors to obtain pricing
information. The sample solution files provided here are for purposes of illustration and
may not reflect the most recent prices for desktop hardware and software products.
Students will need to use their Web browsing software to find pricing for these products on
the Web. They can then enter this information in a spreadsheet and perform some simple
calculations to determine prices for 30 desktop systems.
Group Project
With three or four of your classmates, btain a copy of OpenOffice
www.openoffice.org which is downloadable for free or find a low-cost copy of Sun
StarOffice and compare its capabilities to the Microsoft Office suite of desktop
productivity tools. Evaluate their functions, ease of use, and compatibility with
models of computer hardware and operating systems. Which would you purchase
for your personal use? For a business? Justify your decision. If possible, use
electronic presentation software to present your findings to the class.
The openoffice.org Web site provides information that your students can use to evaluate
the OpenOffice suite. Since OpenOffice provides word processor (Writer), spreadsheet
(CALC), presentation (IMPRESS), and graphics (DRAW) programs, ask your students to
evaluate the features of each program. If you have the time, ask your students to complete
word processing, spreadsheet, presentation, and drawing exercises using the OpenOffice
suite.
Ask your students to discuss how easily data can be exchanged between the programs.
Ask your students to research the system requirements, support issues, and acceptable
file formats. What operating systems does OpenOffice run on? What is the file format for
OpenOffice? If you have the class time, ask your students to create their presentations
using OpenOffice's IMPRESS.
Case Study – Direct Wines Ages Wine, Not IT
1. What problems do you think Direct Wines experienced from using a variety of
different systems and platforms?
Direct Wines was using a variety of different platforms to manage different parts of its
business. These systems were hard to maintain and upgrade. Customer data was housed
in one system, vendor data in another, and inventory data in still another, which made
interconnectivity and integration very difficult.
2. How did hardware fit in with and support Direct Wines’ strategy? Do the changes in
hardware and software at Direct Wines mean that the role of information technology
changes?
Using Hewlett Packard’s UNIX platform to run the SAP system allowed Direct Wines to
standardize their servers, tape libraries, and switches. This also allowed Direct Wines to
fulfill their need to upgrade, standardize, and integrate their information systems. Since
SAP allows total system integration, the role of information technology would change from
a tool to complete a task to the implementation of “best practices” for operation.
Copyright © 2005 Pearson Education Canada Inc.
Instructor's Manual, Chapter 6
Management Information Systems, Second Canadian Edition
6-14
3. Why did Direct Wines choose to standardize their platform? What were the main
strengths of the new platform?
Direct Wines recognized the need to update and integrate its systems. Since using
different system and platforms was causing problems, Direct Wines decided to
standardize their systems to fulfill customer orders more quickly and more effectively.
Better planning and improved inventory management were among the other benefits of the
new platform.
4. Why did Direct Wines decide to implement SAP R/3? What changes do you think
Direct Wines would have to make while implementing SAP R/3?
SAP R/3 was the world’s leading vendor of enterprise-wide systems. SAP software
permits data to move from purchasing to receiving to inventory to factory floor to
warehousing to distribution, ordering and billing with almost no human intervention.
Human error was reduced, making the system more accurate, reducing inventory by 10
percent. Direct Wines had to change some of its business processes so that the new
system could integrate data among the processes.
5. What benefits would Direct Wines achieve from use of a storage area network?
A storage area network would allow Direct Wines to place multiple storage devices on a
separate high-speed network dedicated to storage purposes. This will allow multiple
servers to access data faster, allowing Direct Wines to fulfill orders faster. Since all data is
stored centrally, this also ensures that information is accurate and available to all functions
of the company at any given time.
6. What business and technology issues did Direct Wines face when making these
changes?
The list of potential business and technology issues for this system implementation could
be quite lenghty. Students will come up with several responses for this question. In
general, Direct Wines would probably have faced change management issues, budgeting
concerns, employee resistance to new technology, and system implementation and
maintenance issues. As well, employee training would be an important issue to deal with
when implementing any new system.
Copyright © 2005 Pearson Education Canada Inc.