CHAP #3

CHAP #4

CHAP #5

CHAP #8

CHAPTER #1-CHAPTER #6 study notes

SLIDE 1

Framework provides an outline of what you need to know about Information Systems.

1.Foundation Concepts- Fundamental behavioral, technical, business, and managerial concepts about the components and roles of information systems. Chap 1-2

2. Information Technologies- Major concepts, developments, and management issues in information technology--that is, hardware, software, networks, data resource management, and many Internet-based technologies. Chap 3-6.

3. Business Applications- The major uses of information systems for the operations, management, and competitive advantage of an internetworked E-business enterprise, including electronic business, commerce, collaboration and decision making using the Internet, Intranets, extranets. Chap 7-9

4. Development Processes- How end users or information specialists develop and implement information systems to meet E-business opportunities using several application development approaches. Chap 10

5. Management Challenges- The challenges of effectively and ethically managing E-business technologies, strategies, and security at the end user, enterprise, and global levels of a business.

SLIDE 2

System- A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. (hopefully organized- only as good as design and code)

Input- Capturing and assembling elements that enter the system to be processed. EX- raw materials, energy, data, human effort, gasoline-(all must first be organized and/or refined before processing)

Processing- Involves transformation processes that convert input into output. Ex-manufacturing process, human breathing, math calculations.

Output- Involves transferring elements that have been produced by a transformation process to their ultimate destination. Ex- finished products, human services and management information in the form of printed output or electronic output, I.e. spreadsheets.

Feedback-data about the performance of a system. Ex- runtime data about nightly financial batch cycles. Monthly system generated report of system downtime.

SLIDE 3

Mention "Control of System Performance:

Feedback from customer of functional areas to IS personell who direct the service request to the appropriate Analyst.

Feedback could also come from certain system generated reports on runtime or system downtime etc.

Data which processes through the system generally must be stored. Could be entered via a computer online form. Data is stored in fields in a database then at a pre-determined time the data processes in what is known as a batch cycle. The data is transformed and stored in its new processed form again.

Relational database: Informix, DB2, Oracle, SQL Server, Access

Hierarchical: IMS

SLIDE 4

Information System Model- shows fundamental conceptual framework for major components and activities of an information system.

Information Systems depend upon five basic resources:

People, hardware, software, data, and networks

1. People-end users and IS specialists

end users are knowledge workers who comm . and collaborate, create use and distribute information in the organization. IS monitors, designs & develops, maintains systems.

2. Hardware - machines and various media, printers monitors, hard drives, etc

3. Software- includes both programs and procedures or processing instruc.

Two basic types of software: System software -dos, Application-excel.

4. Data resources-data and knowledge bases

data in databases hold processed and organized data. Know. Bases hold knowledge in various forms: facts, rules, best business practices

5. Network resources- communications media and networks.

Twisted pair wire, coaxial cable, fibre optic. Modems, internetwork processors internet browser packages, LAN, WAN etc.

SLIDE 5

Data is unformatted and raw. Has little meaning until the data is processed and put into some usable format. Generally the processed data comes out in the form of a hardcopy or online report. May be in a spreadsheet or a database view.

SLIDE 6

Information that is outdated, inacurate, or hard to understand would not be very meaningful, useful or valuable to you, or other end users.

High quality information is what organizations want:

Information products whose characteristics, attributes, or qualities help to make the information more valuable to them. This is the transformation which data goes through when processed by a system. The high quality information must then be formatted for effective presentation to the end user. Page 17_

Big problem- Takes well outlined and detailed information requirements from the end users and managers. The Analyst takes these requirements and develops a system designed to provide the customer’s definition of high quality information. (I always speak from an IS&S perspective. The end users and managers are my customer)

In other words what does the customer consider accurate, relevant, current or frequent.

SLIDE 7

INFS supports day to day business operations:

Retail record purchases on POS. Inventory tracking, payroll, purchasing, evaluate sales trends.

Systems also support Managerial decision making: what lines of merchandise to by, what investment is necessary, information can b used by managers, buyers and others.

Systems can help maintain and support strategic advantage over competitors:

Utilize innovative uses of IS technology: touch screen kiosks in stores linking to e-commerce web site for online shopping building customer loyalty because of ease of shopping an buying merchandise. Or Lands End online catalog and store. Still has traditional catalog, but you can buy online with immediate customer service available.

SLIDE 8

1960s-Transaction processing, record-keeping, accounting, and other electronic data processing (EDP) applications. Added MIS or management information systems. Apps produced reports for managers for decision making

1970s-MIS not adequate so decision support systems born & ad hoc reporting tailored to decision makers style and information needs.

1980s-end users able to use computing resources to support their job requirements-no more waiting for indirect support from CIS dept.

EIS-executive information systems develop to give top execs. An easy way to get critical information they want, when they want it tailored for them.

AI artificial intelligence breakthroughs-allows some expert systems to serve as consultants to users by providing expert advice in limited subject areas.

Strategic Info. System began here and continued into 90’s

1990s-Information technology becomes an integral component of business processes, products, and services that help a company gain a competitive advantage in the global marketplace.

Rapid growth of internet, intranet and extranet change capabilities of IS in business. These Internet-worked enterprise and global electronic business and commerce systems are revolutionizing operations and management.

SLIDE 9

Shows how Internet-worked E-business enterprise depends on Internet, intranets and extranets and other IS tech. To implement and manage E-business operations and electronic commerce and collaboration.

E-business is the use of Internet technologies to internet-work and empower business processes, electronic commerce, and enterprise communication and collaboration within a company and with its customers, suppliers, and other business stakeholders.

Enterprise collaboration systems-Supports virtual teams through use of Enterprise collaboration systems such as Net meeting complete with text and white board. Can also use digital camera for visual. Includes email and the use of web sites used by the virtual teams and other members of the organization.

Electronic commerce - buying and selling, and marketing and servicing of products, services and information over a variety of computer networks.

SLIDE 10

1. Operations support systems-

a. Transaction processing systems- real time or online processing(banks). batch processing(nightly cycles to aggregate and process day s activity)

b. Process control systems-efficiently process business transactions, control industrial processes, support enterprise comm and collaboration., update DB.

c. Enterprise collaboration systems- enhance team and workgroup communications and productivity.

2. Management support systems

a. Management Information systems-provie information in the form of repoirts and displays to managers and many business professionals

b. Decision support systems-give direct computer support to managers during the decision-making process

c. Executive information systems-provide critical information in easy-to-use format to a variety of managers.

SLIDE 11

Expert systems-provide expert advice for operational chores like equ9pment diagnostics, or managerial decisions such as loan portfolio management.

Knowledge Management systems- support the creation, organization, and dissemination of business knowledge to employees and managers throughout a company

Functional business systems-focus on operational and managerial applications in support of basic business functions such as accounting or marketing.

Strategic Information systems-apply information technology to a firm’s products, services, or business processes to help it gain a strategic advantage over its competitors..

Cross-Functional Information systems-real world typically sees an integration of the above mentioned systems so what you have are "cross functional informational systems that provide a variety of functions. Systems will produce information and support decision making and do record-keeping and perform transaction processing chores also.

SLIDE 12

Development process- use of some systematic development process which begins from the conception of the idea to the eventual implementation. Generally includes a plan for ongoing support, optimization and maintenance.

There is overlap in development stages. Begins with a request of some sort, the subsequent gathering of high level requirements, then broken down into a list of detailed requirements.

Analysis begins, feasability studies, time, duration and resource estimates are worked up. Alternative and primary solutions are recommended, along with cost estimates.

Design is on paper for the most part. Perhaps a quick prototype can be put together of some portion or module.

Generally takes up the greatest amount of time. Time spent in analysis and design is proportional to system successful implementation.

Construction-After design is complete you begin the construction phase. Actual coding of modules, building of forms and databases for implementation

Testing-User acceptance testing and system testing

Implementation-All accepted changed and new modules are moved into the production environment

Maintin and Optimize-

SLIDE 13

Success of an information system not just measured by efficiency but by the effectiveness of information technology in supporting an organizations business strategies, enabling its business processes, enhancing its organizational structures and culture, and increasing the business value of the enterprise.

Page 35

It is not just automation!

SUMMARY

 

CHAPTER #2

SLIDE 1

A firm can survive in the long run if it successfully develops strategies to confront five generic competitive forces that operate in the firm's relevant environment. What are some of these competitive forces?

Threat of New Entrants. Many threats to long-term survival come from companies that do not yet exist or have a presence in a given industry or market. The threat of new entrants forces top management to monitor the trends, especially in technology, that might give rise to new competitors.

Teaching Tip: This is especially true as the effects of globalization increase the likelihood that previously "domestic only" competition will encounter new international competitors.

Bargaining Power of Suppliers. Suppliers with access to key or limited resources, or who dominate their industries, may exert undue influence on the firm. Many firms seek to reduce their dependence on a single firm to limit the suppliers' bargaining power.

Rivalry Among Existing Firms. In mature industries, existing competitors are not much of a threat: typically each firm has found its "niche". However, changes in management, ownership, or "the rules of the game" can give rise to serious threats to long-term survival from existing firms.

Teaching Tip: For example, the airline industry faces serious threats from airlines operating in bankruptcy, who do not pay on the debts while slashing fares against those healthy airlines who do pay on debt.

Bargaining Power of Customers. Customers can grow large and powerful as a result of their market share. For example, Wal-Mart is the largest customer for consumer package goods and often dictates terms to the makers of those goods -- even a giant like Procter & Gamble.

Threat of Substitutes. To the extent that customers can use different products to fulfill the same need, the threat of substitutes exists.

SLIDE 2

Companies may counter the competitive forces they face with one or more of five competitive strategies:

Cost Leadership Strategies. This involves becoming a low-cost producer of products and services in the industry. Such firms can also help their suppliers or customers reduce costs.

Differentiation Strategies. This involves making the products of the firm distinct from those of the competition in the marketplace. Differentiation variables valued by the market reduce the threat of substitution.

Innovation Strategies. This involves finding new ways of doing business. This may involve developing new products, entry into new markets or radical change in business processes for production or distribution.

Growth Strategies. This involves significantly expanding a company's capacity to produce goods and services, expanding into global markets, diversifying into new products or services, or integrating into related products and services.

Alliance Strategies. This involves forming new business relationships or new ways of doing business with existing suppliers, customers, consultants, or even competitors. Such linkages may include mergers, acquisitions, joint ventures, or "virtual companies" (the pooling of resources on a per project basis).

SLIDE 3

How can IT be used strategically?

Improving Business Processes. IT can help make a firm’s operational processes substantially more efficient and its managerial processes much more effective. Besides reducing costs, improvements to business processes can help improve quality and customer service, and promote development of innovative products.

Promote Business Innovation. IT can be used to develop unique products and services, or processes. This in turn can create new business opportunities and enable a firm to expand into new markets or into new segments of existing markets.

Locking in Customers and Suppliers. IT can also allow a business to lock in customers and suppliers by using technology to build valuable new relationships with them. This can deter both customers and suppliers from abandoning a firm for its competitors or convince a supplier or firm into accepting less-profitable relationships.

Creating Switching Costs. IT can be used to build switching costs into relationships between a firm and its customers or suppliers by providing mutually beneficial services that make it costly for a customer or firm to switch to a competitor.

SLIDE 4

Raising Barrier to Entry. By increasing the amount of investment or complexity of the technology required to compete in an industry, a firm can erect barriers that would discourage or delay other companies from entering a market.

Leveraging a Strategic IT Platform. Investing in IT enables a firm to build a strategic IT platform that allows it to take advantage of strategic opportunities and develop new products and services that would not be possible without strong IT capability.

Developing a Strategic Information Base. IT can allow firms to develop a strategic information base that can be used to support the firm’s competitive strategies.

SLIDE 5

For Internet technologies to be used strategically applications must be correctly positioned. The strategic positioning matrix shown can be used to help a company optimize the strategic impact of Internet Technologies.

The matrix recognizes two major drivers:

Internal Drivers. The amount of connectivity, collaboration and use of IT within a firm.

External Drivers. The amount of connectivity, collaboration and use of IT by customers, suppliers, business partners, and competitors.

Cost and Efficiency Improvements. When there is a low amount of connectivity, collaboration and use of IT within the company and by customers and competitors, a firm should focus on improving efficiency and lowering costs by using Internet technologies to enhance communications between the company and its customers and suppliers.

Performance Improvement in Business Effectiveness. When there is a high amount of internal connectivity, but external connectivity by customers and competitors is still low, a firm should focus on using Internet technologies like intranets and extranets to make major improvements in business effectiveness.

Global Market Penetration. When there is a high degree of connectivity by customers and competitors and low internal connectivity, a firm should focus on developing Internet-based applications to optimize interactions with customers and build market share.

Product and Service Transformation. When a company and its customers, suppliers, and competitors are extensively networked, Internet technologies should be used to develop and deploy products and services that strategically reposition it in the marketplace.

SLIDE 6

The Value Chain Concept, developed by Michael Porter, is useful for helping you to decide when and how to apply the strategic capabilities of IT. The Concept views a firm as a series, or chain, of basic activities that add value to a firm’s products and services, and thus add a margin of value to the firm. In this way some activities are seen as primary processes, while others are seen as support processes that provide direction and support for the specialized work of primary activities. Thus, the framework highlights where competitive strategies can best be applied in a business. For each activity, the role of strategic information systems (SIS) can contribute significantly to that activity’s contribution to the value chain. For example:

Administrative Coordination & Support Services. The key role of SIS here is in enterprise communication and collaboration.

Primary Activities. These activities directly contribute to the transformation process of the organization.

SLIDE 7

The Value Chain Model can also be used to strategically position a company’s Internet-based applications to gain competitive advantage. The Internet Value Chain Model shown outlines several ways that a company’s Internet connections with its customers could provide business benefits and opportunities for competitive advantage. The model suggests that company-managed newsgroups and chat rooms can be used to support market research, product development and direct sales. Likewise a company’s Internet-enabled connection with its suppliers can be used to support online shipping and scheduling. Multimedia catalogs can also be used to support E-Commerce. All together the model indicates how Internet technologies might be applied to help a firm gain competitive advantage in the marketplace

SLIDE 8

There are other key strategies enabled by IT that can be used to enable a business to become successful and to maintain their success. These will be discussed on the next slides.

A key strategy for becoming a successful E-Business is to maximize customer value. This strategic focus on customer value recognizes that quality rather than price becomes the primary determinant in a customer’s perception of value. A Customer-Focused E-Business, then, is one that uses Internet technologies to keep customer loyal by anticipating their future needs, responding to concerns, and providing top quality customer service.

As the slide indicates, such technologies like intranets, the Internet, and extranet websites create new channels for interactive communications within a company, with customers, and with suppliers, business partners, and others in the external business environment. Thereby, encouraging cross-functional collaboration with customers in product development, marketing, delivery, service and technical support.

A successful Customer-Focused E-Business attempts to ‘own’ the customer's total business experience through such approaches as:

SLIDE 9

One of the most important competitive strategies today is business process reengineering (BPR) most often simply called reengineering. Reengineering is more than automating business processes to make modest improvements in the efficiency of business operations. Reengineering is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service. BPR combines a strategy of promoting business innovation with a strategy of making major improvements to business processes so that a company can become a much stronger and more successful competitor in the marketplace.

However, while many companies have reported impressive gains, many others have failed to achieve the major improvements they sought through reengineering projects.

Business quality improvement is a less dramatic approach to enhancing business success. One important strategic thrust in this area is called Total Quality Management (TQM). TQM emphasizes quality improvement that focuses on the customer requirements and expectations of products and services. This may involve many features and attributes, such as performance, reliability, durability, responsiveness etc.

TQM uses a variety of tools and methods to provide:

SLIDE 10

Agility in competitive performance is the ability of a business to prosper in rapidly changing, continually fragmenting global markets for high-quality, high-performance, customer-configured products and services. Agile companies depend heavily on information technology to support and manage business processes. The four fundamental strategies of agile competition are:

Enrich Customers. Agile companies enrich customers with solutions to their problems. Long term value-added products and services succeed when they solve problems based on customer needs. As conditions change, the agile competitor establishes a relationship based on the ability and willingness to change to meet new customer problem situations.

Cooperate. Agile companies cooperate to enhance competitiveness. This means internal cooperation and, where necessary, cooperation with competitors in order to bring products and services to market more quickly.

Organize. Agile companies organize to master change and uncertainty. This is a key component of agile competition because it seeks development of the anticipation and rapid response to changing conditions, not an attempt to stifle change itself.

Leverage People and Information. Agile companies leverage the impact of people and information by nurturing an entrepreneurial spirit and providing incentives to employees to exercise responsibility, adaptability, and innovation.

The Free.Perfect.Now model developed by AVNET Marshall embodies these principles into a succinct model for serving its customers in the most agile and responsive way.

Free Dimension. Emphasizes that most customers want the lower cost for value received, but are willing to pay more for a value-added service.

Perfect Dimension. Emphasizes that products and services should not only be defect free, but should be enhanced by customization, added features and should further anticipate future customer needs.

Now Dimension. Emphasizes that customers want 24x7 accessibility to products and services, short delivery times, and consideration of the time-to-market for their own products.

SLIDE 11

A Virtual Company (also called a virtual corporation or virtual organization) is an organization that uses information technology to link people, assets, and ideas. People and corporations are forming virtual companies in order to take advantage of strategic opportunities that require time, people competencies and information technologies resources that may not exist within a single company. By making strategic alliances with other companies and quickly forming a virtual company of all-star partners, the virtual company is best able to assemble the components needed to provide a world-class solution for customers and capture the opportunity.

To succeed the virtual company must possess six characteristics:

Adaptability: Able to adapt to a diverse, fast-changing business environment. Virtual companies must further reduce concept-to-cash time through sharing.

Opportunism: Created, operated, and dissolved to exploit business opportunities when they appear. They must gain access to new markets and share market or customer loyalty, while increasing facilities and market coverage.

Excellence: Possess all-star, world-class excellence in the core competencies that are needed. These competencies must be seamlessly linked through the use of Internet technologies.

Technology: Provide world-class information technology and other required technologies in all customer solutions. They must migrate from selling products to selling solutions.

Borderless: Easily and transparently synthesize the competencies and resources of business partners into integrated customer solutions.

Trust-Based: Members are trustworthy and display mutual trust in their business relationships. They must be willing to share infrastructures and risks.

SLIDE 12

Knowledge Management has become one of the major strategic uses of information technology. Knowledge Management Systems (KMS) are systems that are used to manage organizational learning and business know-how. The goal of knowledge management systems is to help knowledge workers create, organize, and make available important business knowledge, whenever, and wherever its needed.

Such knowledge may include explicit knowledge like reference works, formulas, and processes, or tacit knowledge like "best practices", and fixes. Internet and intranet technologies, along with such other technologies like GroupWare, data mining, and online discussion groups are used by KMS to collect, edit, evaluate and disseminate knowledge within the organization.

Knowledge management systems are sometimes called adaptive learning systems, because they create cycles of organizational learning called adaptive learning loops, which allow the knowledge company to continually build and integrate knowledge into business processes, products, and services. Thereby, helping the company to become a more innovative, agile provider of goods and services.

SLIDE 13

Sustained success in using information technology strategically depends upon three sets of factors:

The Environment. A major factor of the environment is the structure of the industry. Competitive restrictions and unique situations are environmental factors that involve political and regulatory restrictions all the way to wide-open competition.

Foundation Factors. Unique industry position, alliances, assets, technological resources, and expertise are foundation factors that can give a company a competitive edge in a market.

Management Actions and Strategies. Management alone is responsible for the successful development and implementation of plans. It must have the vision and planning abilities necessary to adapt information technology to the specific needs of the company in its particular situation.

SUMMARY

 

CHAPTER #3

What is a computer system? A computer system is an interrelated combination of components performing specialized functions to provide end users with a powerful information-processing tool.

Computers have radically changed from their early beginnings. As the figure indicates, the…

First Generation. First generation computers (1951-1958) used hundreds or thousands of vacuum tubes for their processing and memory circuitry. These were room size computers that generated a great deal of heat requiring large air conditioning and maintenance support.

Second Generation. Second generation computers (1959-1963) used transistors and other solid-state semiconductor devices wired to circuit boards. Magnetic cores were used for memory and removable magnetic disk packs and magnetic tape were used for secondary storage.

Third Generation. Third generation computers (19654-1979) began using integrated circuits consisting of thousands of transistors and other circuit elements etched on tiny chips of silicon allowing for increased memory and processing speeds of several millions of instructions per second (MIPS).

Fourth Generation. Fourth generation computers (1979-present) use large scale integration (LSI) and very large scale integration (VLSI) that cram hundreds of thousands or millions of transistors and other circuit elements on each chip.

Fifth Generation. The next generation of computers should continue the trend toward more power, more speed, smaller size, and longer terms of service. Fifth generation computers may use superconductor circuits or other developing technologies to process and store information

SLIDE 2

Traditional categories of computer systems are rapidly diminishing as new technologies begin to merge the major characteristics of computer systems. However, within these parameters, the following are generally true:

Microcomputers. These are the smallest computer systems, ranging in size from handheld personal digital assistants (PDAs) to laptops to desktop personal computers and workstations. Most microcomputers are designed for single-user application but can be linked via telecommunications to network servers.

Midrange. Midrange or minicomputers are larger and more powerful that most microcomputers but smaller and less powerful than most large mainframes. Midrange systems are often used in business and scientific research. They are especially well suited for specialized tasks, usually so as to dedicate computing power to a specific function (such as backroom order processing) without having to share time on an organization's larger mainframe. Of course, many small and medium-sized organizations use such computers for their whole operations.

Mainframes. These are large, powerful computers (often filling an entire room) with very large primary storage capacities (from 64 megabytes to several gigabytes of RAM). This feature helps mainframes process information very quickly (at 10 to 200 millions of instructions per second - MIPS).

Lets take a moment to examine these categories of computer systems.

SLIDE 3

Microcomputers are the most important category of computer system for business people and consumer. They range in sizes, features, and functions.

Handheld PCs. These range from personal digital assistants (PDAs) to a host of other devices known as information appliances.

PDAs are designed for convenient mobile computing and can use both touch screens, pen-based handwriting recognition, or keyboards to perform such tasks as receiving and sending e-mail, accessing the web, creating schedules and list, and communicating with a remote office or web-server.

Information appliances. A PDA is just one example of a larger category of devices known as information appliances. Such devices include a host of smart gadgets—from cellular phones and pagers to web-based game machines and set-top boxes—that can be used to send and receive e-mail and access the web.

Notebook computers. Are small portable computers that support mobile workers.

Desktop Computers. Are designed to fit on an office desk and are used to support a wide range of activities for both work and home. They range in speed and size from 300-600MHz and all-in-one units, to free standing tower units.

Workstations. Are more powerful desktops that are used to support applications with heavy mathematical computing, and graphical display demands. Consequently they are used to support such applications as computer aided design (CAD), and multimedia application development.

SLIDE 4

Network computers and terminals are emerging as the serious business-computing platform.

Network Computers. Network computers (NC) are a microcomputer category designed primarily for use with the Internet and corporate Intranets by clerical workers, operational employees, and knowledge workers. NCs are low cost, sealed networked microcomputers with no or minimal disk storage. As a result they depend on Internet and Intranet servers for their operating system and web-browser, Java-enabled application software, and data access and storage.

NC benefits include:

Teaching Tip: Ask students what other benefits they believe Networked Computers will provide business. Keep in mind that studies show that the common worker uses their PC for many non-work related activities.

There are two types of Network Computers:

NCs or Thin Clients. These devices generally have no hard disk. They rely on network servers to provide the operating system and application software. They typically use a web browser and can process Java-enabled software.

NetPC. These devices work like a PC with its own software. It may have a hard drive but no floppy drive or CD-ROM. The operating system and applications are managed centrally by network servers.

Still another device becoming more popular is the network terminal, or window terminal.

Network Terminals. Like all terminals, these devices rely on a host processor (server) to perform processing. Hence they have no disk storage.

They typically use multiuser versions of windows 2000, Linux, or unit as the operating system.

SLIDE 5

Midrange computers have become popular as powerful network servers included in corporate Intranets and Extranets and in client server networks.

A network is a system of microcomputers and servers linked together with telecommunications hardware and software.

Telecommunications. Telecommunications is the use of networks of interconnected computers and peripheral devices to process and exchange data and information. Hardware such as modems allow computers at distant locations to share information over telephone lines. Network operating systems are software programs that control resource sharing and communications flow among computers and peripherals on a local area network (LAN).

Networked computers draw additional computing power from the other computers on the network, which can include other microcomputers, minicomputers, and mainframes. This capability is known as distributed processing.

Distributed Processing. This is the ability to spread the processing requirements for a particular task around the network to take advantage of unused processing capacity.

Client server architectures, which are used frequently in businesses have the following components:

Client. A client on a network is typically a microcomputer that serves an end user for most of her or his processing needs. Programs for the client and extra processing capacity are provided as needed by the network.

Server. A server is a host or central computer that is dedicated to managing the logistics of routing data, information, and processing capacity among the clients on the system. In small networks, the server might be a single PC. On larger networks, the server can be a minicomputer or a mainframe. In very large organizations, several networks might be served, each by their own minicomputer, which in turn, is linked to the host mainframe.

SLIDE 6

A typical computer system has the following components:

Input. The input devices of a computer system include keyboards, touch screens, pens, electronic "mice," optical scanners, and other peripheral hardware components that convert data into electronic machine-readable form. Input may be direct entry (by the end user) or through telecommunications links.

Processing. The central processing unit (CPU) is the main processing component of a computer system. The CPU is divided into two major components: the arithmetic-logic unit (ALU), which performs the arithmetic and logic functions required in computer processing, and the control unit, which interprets computer program instructions and transmits directions to the other components of the computer system. The CPU also contains circuitry for devices such as registers and cache memory, used for high speed temporary storage of data and instructions.

Output. Output devices convert the electronic information produced by the computer system (binary or digital information) into human-intelligible form for presentation to end users. Output devices include video display units, printers, audio response units, and other peripheral hardware components specialized in this function.

Storage. Storage devices store data and program instructions needed for processing. A computer's primary storage or memory is used to hold key information needed to run the computer while secondary storage (such as magnetic disks and tape units) hold larger parts of programs used less frequently and the content files created by end users.

SLIDE 7

This figure emphasizes that there has been a major trend toward the increased use of input technologies that provide a more natural user interface for computer users. You can now enter data and commands directly and easily into a computer system through pointing devices like electronic mice and touch pads, and technologies like optical scanning, handwriting recognition, and voice recognition. These developments have made it unnecessary to always record data on paper source documents (such as sales order forms, for example), and then keyboard the data into a computer in an additional data entry step. Further improvements in voice recognition and other technologies should enable an even more natural user interface in

SLIDE 8

Let’s take a moment to review some of the more popular means and devices used for capturing input.

Keyboards. Are the most widely used devices for entering data and text.

Pointing Devices. Are widely used with operating systems that have a graphical user interface. They include a range of devices:

Pen-based Computing Devices. Are used in many handheld computers. These computers use special software to recognize and digitize handwriting and drawings using a stylus.

Speech Recognition Systems. Use software to digitize, analyze, and classify your speech and its sound patterns. Recognized words are then passed to your application software.

Optical Scanning. Are devices that read text or graphics and convert them into digital input. There are various types of optical scanning devices including:

SLIDE 9

This figure shows you the trends in output media and methods that have developed over the generations of computing. As you can see, video displays and printed documents have been, and still are, the most common forms of output from computer systems. But other natural and attractive output technologies such as voice response systems and multimedia output are increasingly found along with video displays in business applications.

For example, you have probably experienced the voice and audio output generated by speech and audio microprocessors in a variety of consumer products. Voice messaging software enables PCs and servers in voice mail and messaging systems to interact with you through voice responses. And of course, multimedia output is common on web sites of the Internet and corporate intranets.

SLIDE 10

Computers provide information to users in a variety of forms.

Video displays. Is the most common form of computer output. Most desktop computers use a cathode ray tube (CRT) video display. Another type of display is called liquid crystal display (LCD). These are used mostly in portable and handheld computers, although LCD for PC desktops is growing in popularity. LCDs require less electricity and provide a thin flat display.

Printed Output. Printed output is the next most popular form of computer output. Most personal computers rely on either inkjet printers or laser printers.

SLIDE 11

Data and information must be stored until needed using a variety of storage methods. For example, many people and organizations still rely on paper documents stored in filing cabinets as a major form of storage media. However, you and other computer users are more likely to depend on the memory circuits and secondary storage devices of computer systems to meet your storage requirements.

Figure 3.26 illustrates major trends in primary and secondary storage methods. Progress in very-large-scale integration (VLSI), which packs millions of memory circuit elements on tiny semiconductor memory chips, is responsible for continuing increases in the main-memory capacity of computers. Secondary storage capacities are also expected to escalate into the billions and trillions of characters, due primarily to the use of optical media.

SLIDE 11

Data and information need to be stored after input, during processing, and before output. The figure on the slide illustrates the speed, capacity, and cost relationships of several alternative primary and secondary storage media. High speed storage media cost more per byte and provide lower total capacities. Conversely, large-media storage is less expensive but slower. Storage media also differ in how they are accessed by the computer:

Direct Access. Primary storage media such as semiconductor memory chips and secondary storage devices like magnetic disks and optical disks have direct access. This means that any element of data can be directly stored and retrieved by the CPU by selecting and using any of the locations on the storage media. Each location is unique and is available to the CPU independently of other stored elements.

Sequential Access. Sequential access storage media such as magnetic tape do not have unique storage addresses. Instead, data must be stored and retrieved using a sequential or serial process. Locating an individual item of data requires searching from the beginning of the sequence procedure through all of the data elements that proceed it in the sequence.

Semiconductor Memory. The primary storage of your computer is composed of microelectronic semiconductor memory chips. This includes specialized memory like external cache memory and flash memory. There are tow types of semiconductor memory:

Magnetic Disk. The most common form of secondary storage consists of metal or plastic disks covered with an iron oxide recording material. Data are recorded on tracks in the form of magnetized spots to form binary digits. Electromagnetic read/write heads, positioned by access arms are used to read and write data. The two most popular forms of magnetic disks are floppy disks and hard disks.

Redundant Arrays of Independent Disks (RAID). Are disk arrays of interconnected microcomputer hard disks to provide many gigabytes of online storage.

Magnetic Tape. Sequential access secondary storage that uses read/write heads within magnetic tape drives to read and write data in the form of magnetized spots on the iron oxide plastic coating of plastic tape. Magnetic tape devices include tape reels and cartridges in mainframes and midrange systems, and small cassettes or cartridges for PCs. Magnetic tape is most often used for archival storage and backup.

Optical Disk Storage. Are a popular storage medium for image processing that records data by using a laser to burn pits in a plastic disk and reads data by using a laser to read the binary codes formed by those pits. There are several different types of optical disks.

SUMMARY

CHAPTER #4

Information systems depend on software resources to help end users use computer hardware to transform data into information products. Software handles the input, processing, output, storage, and control activities of information systems. Computer software is typically classified into two major types of programs:

Systems Software. These are programs that manage and support the resources and operations of a computer system.

A. System Management Programs. These programs help run the hardware and communicate critical information throughout the IS. Examples are operating systems, operating environments (such as GUI interfaces), database management systems, and telecommunications monitors.

B. System Development Programs. These programs are used to build new application programs or specific information systems applications. Examples include programming language translators, programming environments, and CASE packages.

Applications Software. These are programs that direct the performance of a particular use, or application, of computers to develop specific information products by end users.

A. General-Purpose Application Programs. These programs allow end users to create a great many different information products within a general knowledge category. Examples include word processing, spreadsheets, database managers, graphics, and integrated packages.

.Application-Specific Programs. These programs are dedicated to very

specific functions within a knowledge area. Examples include programs for accounting, generating marketing plans, or handling financing.

SLIDE 2

The figure on the slide emphasizes the following two major software trends important to managerial end users:

From Custom-Designed to Off-the-Shelf. There is a trend away from custom-designed one-of-a-kind programs developed by professional programmers toward the use of off-the-shelf packages acquired by end users from software vendors. This trend makes it possible for end users to develop information products quickly and inexpensively and to adapt the program to make new information products without having to re-write the program itself.

From Machine-Specific to Procedural Languages. Another trend is away from technical, machine-specific programming languages that use binary-based or symbolic codes or procedural languages toward the use of nonprocedural, natural languages that are closer to human speech. These fourth-generation languages often make use of graphical user interfaces that make development of software applications easier for non-technical end users. Some software includes expert-assisted intelligent help features, sometimes called wizards, that question the user on a few custom features of the information product she or he wants to make and then automates the rest of the process on the basis of those answers.

SLIDE 3

There are numerous general-purpose application programs commonly used in business. These include:

Electronic Mail. Communication software that allows you to send electronic messages via the Internet or an intranet. Examples: Eudora, Webmail.

Word Processing Programs. Are programs that computerize the creation, editing, and printing of documents. Examples: Microsoft Word, Corel WordPerfect.

Electronic Spreadsheet. Software that helps you to design and create electronic accounting spreadsheets for use in business analysis, planning, and modeling. Examples: Lotus 1-2-3, Microsoft Excel.

Presentation Graphics. Software that helps you prepare multimedia presentations of graphics, animations, video clips etc., as well web pages. Examples: Microsoft PowerPoint, Lotus Freelance.

Multimedia Software. Related to presentation software is multimedia software. This software is used to create a wide variety of presentation products, information products, education and entertainment products, and usually comes with tools specifically created to capture and edit various types of media, e.g. video, audio, animation etc. Examples: Corel Draw 9, Adobe PhotoShop, Macromedia, Shockwave.

Personal Information Managers. Software that helps end users store, organize, and retrieve information like schedules and management appointments, meetings, customers and clients etc. Examples: Lotus Organizer, Microsoft Outlook.

Groupware Software. Collaboration software that helps workgroups and teams work together to accomplish group assignments. Examples: Lotus Notes, Microsoft Exchange.

SLIDE 4

Let’s take a moment to examine a couple of other important types of application software in some more detail.

Web Browser: The most important software component for many computer users today is the powerful and feature-rich web browser. A browser is a key software interface you use to point and click your way through the hyperlinked resources of the World Wide Web and the rest of the Internet, as well as corporate intranets and extranets. Two popular browsers include: Netscape Navigator, Microsoft Explorer.

Web Browser as the Universal Client: Industry experts are predicting that the web browser will be the model for how most people will use networked computers into the next century. Browsers are being called the universal client, that is, the software component installed on the workstation of all the clients (users) in client/server networks throughout an enterprise.

Web browsers have evolved into suites of communication and collaboration software including: discussion forums, databases, audio and data conferencing, chat, Internet telephone, group scheduling, calendaring, and web page editor.

SLIDE 5

Database and graphics programs are also increasingly common in the business environment. Together with word processing and spreadsheet programs, they are often combined in integrated software packages designed to work together as an "Office Suite."

Database Management Programs. These packages allow end users to set up database files and records on their personal computers. Most DBMS packages perform four primary tasks:

Application Development. This allows users to develop prototypes of data entry screens, queries, forms, reports, and labels for a proposed application.

SLIDE 6

Multimedia refers to computer-based integration of a large amount of high-quality data and information sources focused on providing end users alternatives in the way they acquire, use, and take advantage of the information products or content of the multimedia package. Multimedia can be used to enhance and accelerate learning and is becoming the area of first choice in developing new business training packages. Key technologies include:

Authoring Language: This is a high-level programming facility with English language commands.

Compact Disk Interactive: This is a standard proposed by Philips Corp. for reading data from a CD-ROM disk.

Compressed Audio: This is designed to increase the storage capacity of disk systems.

Computer Edit System: This is a video editing system controlled by computer to enhance accuracy and quality in frame-by-frame editing.

Digital Audio: This is a technique for storing analog audio as a series of numbers.

Digital Video Interactive: This compresses video images up to 160 to 1, necessary due to the very large sizes of digitized video data.

Interactive Video: This allows the user to control the sequence of events unfolding on a video screen through manipulation of computer-based commands.

Musical Instrument Digital Interface (MIDI): This is the serial data transmission protocol for transporting musical information between compatible electronic musical devices.

Sound Board: This is a circuit board and software that captures and plays back a sound on a PC.

Storyboard: This is a visualization of a piece of multimedia "code" representing how the program will proceed, using frames from a sequence to show a visual skeleton of the piece.

Video Capture Card: This circuit board and software allows end users to digitize analog video from a number of external devices such as TVs, VCRs, 8mm cameras, or still cameras.

SLIDE 7

Business Enterprise Application Software are application packages that support managerial decision making and operational users. Such applications include these shown. Most of these will be discussed in more detail in later chapters.

Enterprise Resource Planning (ERP). Uses integrated cross-functional software to reengineer, integrate, and automate the basic business processes of a company to improve its efficiency, agility, and profitability.

Customer Relationship Management (CRM). These systems consist of a family of software modules that perform the business activities involved in such ‘front office’ processes like customer sales, marketing, and service. These tools enable companies to identify, target, and retain their best customers.

Human Resource Management. These are information systems that support human resource management activities such as recruitment, selection and hiring, job placement, performance appraisals and training and development.

Accounting and Financial Management. These are information systems that record and report business transactions, the flow of funds through an organization, and produce financial statements. Thus, these systems provide information for the planning and control of business operations, as well as for legal and historical record keeping.

Supply Chain Management. A supply chain is the network of business processes and interrelationships among businesses that are needed to build, sell, and deliver a product to its final customer. Supply Chain Management applications integrate management practices and IT to optimize information and product flows among these processes and partners.

SLIDE 8

The operating system of a computer manages the operations of the CPU, controls the input/output and storage resources and activities of the computer system, and provides various support services as the computer executes the application programs of users.

The user interface is the part of the operating system that allows users to communicate with the computer. Interfaces can be command-driven (the user types in command instructions through the keyboard), menu-driven (the user selects commands presented on-screen with either a mouse or keyboard), and graphical (the user selects commands that appear as icons, buttons, bars, and other images with a mouse or other pointing device). Through the interface, the end user has access to the following resources:

Resource Management. These programs manage the hardware of a computer system, including its CPU, memory, secondary storage devices, and input/output peripherals.

File Management. Operating systems also contain file management programs that control the creation, deletion, and access to files of data and programs. File management involves keeping track of the physical location of files on magnetic disks and other secondary storage devices.

Task Management. Task management programs manage the computing tasks of end users. They give slices of the CPU's processing time to tasks and determine the logistics of which tasks take priority over others when more processing time is required.

Instructor’s Note: The following is extra-textual material on this topic:

Utilities and Other Functions. Operating systems may contain additional programs (or support for them to be added later) called utilities that help maintain the integrity of the system and its interface with the system hardware. Common utilities are used to defrag a system's hard drive, compress the space programs and files need for storage, or other functions.

SLIDE 9

, A programming language allows a programmer or end user to develop the set of instructions that constitute a computer program. Each programming language has its own unique vocabulary, grammar, and uses. The major categories of programming languages are identified on the slide and described below:

Machine Languages. Machine languages (or first-generation languages) are the most basic level of programming languages. These use binary codes unique to the computer, requiring programmers to have a detailed knowledge of the specific CPU they wish to write software for.

Assembler Languages. Assembler languages (or second-generation languages) reduce the difficulties in writing language code by using translator programs (assemblers) that convert the symbolic language of the code into machine language.

High-Level Languages. High-level languages (or third-generation languages) use instructions, called statements that closely resemble human language or the standard notation of mathematics. They are translated into machine language by compilers or interpreters.

Fourth-Generation Languages. Fourth-generation languages describe a variety of programming languages that are more nonprocedural and conversational than previous languages. Nonprocedural languages have programmers specify the results they want while the program works with the computer to determine the sequence of instructions that will accomplish those results.

Object-Oriented Languages. Object-oriented programming (OOP) ties data and instructions together into objects that can be combined in many different ways with other objects to create programs. Unlike procedural languages, OO systems objects tell other objects to perform actions on themselves. Thus, objects are more efficient and can be reused to create new programs. Java is an example of an OOP, which is specifically designed for real-time, interactive, web-based network applications. What makes Java so special is that it is computing platform independent. This means that any computer and any operating system anywhere in a network can execute Java programs.

HTML. Is a page description language that creates hypertext or hypermedia web documents. HTML embeds control codes, or tags, in the ASCII text of a document. These tags are used to designate titles, headings, graphics, multimedia components, as well as hyperlinks within the document.

XML. Unlike HTML, XML describes the content of web pages by applying identifying tags or contextual labels to the data in web documents. By classifying data in this way, an XML website's information is more searchable, sortable, and easier to analyze.

SLIDE 10

Programming packages help programmers develop computer programs. These include:

Language Translator Programs. These translate a set of instructions into the computer’s own machine language. Typical language translator programs include:

SUMMARY

Application software includes a variety of programs that can be segregated into general-purpose and application-specific categories.

CHAPTER #5

To understand databases, it is useful to remember that the elements of data that make up the database are divided into hierarchical levels. These logical data elements make up the foundation data concepts upon which a database is built.

Character. The most basic logical element is the character, which consists of a single alphabetic, numeric, or other symbol. While it may take several bits or bytes to represent a character digitally, remember that these refer to physical storage, not the logical concept of the character itself.

Field. A field is a grouping of characters that represent a characteristic of a person, place, thing, or event. A person's name is typically placed in a field. A field is a data item. A data field represents an attribute or some entity.

Record. A record is a collection of interrelated fields. For example, an employee's payroll record usually contains several fields, such as their name, social security number, department, and salary. Records may be fixed-length or variable-length.

File. A file is a collection of interrelated records. For example, a payroll file might contain all of the payroll files for all the employees of a firm. Files are usually classified by the application for which they are used.

Database. A database is an integrated collection of logically interrelated records or files. For example, the personnel database of a firm might contain payroll, personnel action, and employee skills files. The data stored in a database is independent of the application programs using it and of the type of secondary storage devices on which it is stored.

SLIDE 2

Under the database management approach, data records are consolidated into databases that can be accessed by many different application programs. A database management system (DBMS) is a set of computer programs that control the creation, maintenance, and use of the databases of an organization and its end users. Four major DBMS facilities include:

Database Development. A DBMS allows control of development to be placed with database administrators. The administrator uses a data definition language (DDL) to develop and specify the data contents, relationships, and structure of each database, and to modify these specifications when necessary. This approach improves integrity and security for the organizational databases. The information is stored in a data dictionary, which uses data definitions to specify what all the records and files are, can be, and, if desired, to automatically enforce data element definitions when fields, records, or files are modified.

Database Interrogation. A DBMS allows end users without programming skills to ask for information from a database using a query language or report generator. Queries are usually made one of two ways:

SLIDE 3

Six major types of databases are illustrated on the slide and used by computer-based organizations:

Operational Databases. These databases store detailed data needed to support the operations of the entire organization. They are also called subject area databases (SADB), transaction databases, and production databases. These also include databases of Internet and electronic commerce activity, such as click stream data or data describing online behavior of visitors at a company’s website.

Data Warehouse Databases. These store data from current and previous years that has been extracted from the various operational and management databases of the organization. As a standardized and integrated central source of data, warehouses can be used by managers for pattern processing, where key factors and trends about operations can be identified from the historical record.

Data Marts. Are subsets of the data included in a Data Warehouse which focus on specific aspects of a company, e.g. department, business process, etc.

Distributed Databases. These are the databases of local workgroups and departments at regional offices, branch offices, and other work sites needed to complete the task at hand. They include relevant information from other organizational databases combined with data and information generated only at the particular site. These databases can reside on network servers, on the World Wide Web, or on Intranets and Extranets.

End User Databases. These consist of a variety of data files developed by end users at their workstations. For example, an end user in sales might combine information on a customer’s order history with her own notes and impressions from face-to-face meetings to improve follow-up.

External Databases. Many organizations make use of privately generated and owned online databases or data banks that specialize in a particular area of interest. Access is usually through a subscription for continuing links or a one-time fee for a specific piece of information (like the results of a single search). Other sources like those found on the Web are free.

SLIDE 4

A data warehouse stores data that has been extracted from various operational, external, and other databases within the organization.

To create a data warehouse, data from various databases are captured, cleaned, e.g. sorted, filtered, converted, and transformed into data that can be better used for analysis. The data is then stored in the enterprise data warehouse, from where it can be moved into data marts or to an analytical data store that holds data to support certain types of analysis.

Metadata, that defines the data in the data warehouse, is stored in a Metadata Directory that is used to support data administration. A variety of analytical software tools can then be used to query, report, and analyze data.

One such means for analyzing data in a data warehouse is called data mining.

In data mining, the data in a data warehouse are analyzed to reveal hidden patterns and trends in historical business activity. This can help managers make decisions about strategic changes in business operations.

SLIDE 5

The rapid growth of websites on the Internet and corporate intranets and extranets has dramatically increased the use of databases of hypertext and hypermedia documents.

Hypermedia Database: A website stores information in a hypermedia database consisting of a home page and other hyperlinked pages of multimedia or mixed media (text, graphics and photographic images, video clips, audio segments, and so on).

Browser: A web browser on your client PC is used to connect with a web network server. This server runs web software to access and transfer the web pages you request.

Web Site: A website uses a hypermedia database consisting of HTML (Hypertext Markup Language) pages, GIF (graphics image files) files, and video files.

Web Server Software: Acts as a database management system to manage the use of the interrelated hypermedia pages of the website.

SLIDE 6

The security and integrity of an organization's databases are the major concerns of the data resource management efforts. Key activities of data resource management include:

Database Administration. This area is responsible for developing and maintaining the organization's data dictionary, as well as designing and monitoring the performance of databases, and enforcing the standards for database use and security.

Data Planning. Data planning is a corporate planning and analysis function responsible for the overall data architecture for the firm. This role ensures that data resources are developed to support the firm's strategic mission and plans.

Data Administration. This area involves the establishment and enforcement of policies and procedures for managing data as a strategic corporate resource. This means standardizing data so that it is available to all end users from whatever database they are working.

SLIDE 7

The relationships among the records stored in databases are based upon one of several logical database structures or models. These fundamental database structures are described below.

Hierarchical Structure. Under this tree-like structure, each data element is related only to one element above it, a so-called one-to-many relationship. All records are dependent and arranged in multilevel structures.

Network Structure. This structure features a many-to-many arrangement whereby the DBMS can access a data element by following one of several paths.

Relational Structure. This model has become the most popular structure and is used by most microcomputers. All data elements within the database are viewed as being stored in the form of simple tables. The DBMS can link data elements from various tables to provide information to end users.

SLIDE 8

Object-Oriented Structure. Objects consist of data values describing the attributes of an entity and the operations that can be performed on the data. This is called encapsulation and allows object-oriented database structures to better handle complex types of data such as video and audio. The object-oriented model also supports inheritance, allowing new objects to replicate some or all the characteristics of one or more parent objects, as shown in the slide. Such capabilities allow developers to copy and combine objects, allowing for very rapid development of new database solutions.

Multidimensional Structure. This structure uses cells within a multidimensional framework to aggregate data related to elements within a given dimension. Each cell combines with similar cells to form a coherent "cube" of information and data, which in turn is combined with other cubes to form dimensions. As a result they are both compact and easy to understand. Multidimensional structures have fast become the most popular database structure for analytical databases that support online analytical processing (OLAP) applications.

SLIDE 9

Efficient access to data is the critical necessity of an effective database system. Key concepts and terms associated with file access include:

Key Fields. This is a unique identifier of the data record.

URLs. The files and databases on the Internet and corporate intranets and extranets use URLs (Uniform Resource Locators) for data access. Thus, pages of hyperlinked text and multimedia documents on the Web and intranet/extranet websites are accessed by URLs.

Sequential Organization. This refers to a structure in which the records are physically stored in a specified order according to a key field in each record.

Sequential Access. This refers to the predetermined order of processing data. Each record is accessed according to the same set of commands. Access begins at the start of the file or record and proceeds, in order, to the end. This is a fast and efficient method for processing large volumes of data.

Direct Access. Under this method, records do not have to be arranged into any particular sequence on storage media, however the computer must keep track of the storage location of each record.

Key Transformation. This common direct access technique performs an arithmetic computation on a key field or record and uses the number that results as an address to store and access that record.

Indexed Sequential Access Method. This approach combines features of both sequential and direct access. Sequential storage allows for large volume processing while indexed addressing allows direct access of smaller amounts of data from individual records.

SLIDE 10

Database planning, beyond that of a personal or small business end user database created by a database management package, typically requires use of a top-down data planning process based upon the systems development model covered earlier:

1. Data Planning. At this stage, planners develop a model of business processes. This results in an enterprise model of business processes with documentation.

2. Requirements Specification. This stage defines the information needs of end users in a business process. Description of needs may be provided in natural language or using the tools of a particular design methodology.

3. Conceptual Design. This stage expresses all information requirements in the form of a high-level model.

4. Logical Design. This stage translates the conceptual model into the data model of a DBMS.

5. Physical Design. This stage determines the data storage structures and access methods.

 

SUMMARY

CHAPTER #6

Telecommunications networks are a vital part of today’s E-Business. Telecommunications is the exchange of information in any form from one place to another using electronic or light-emitting media, over computer-based networks.

Major trends occurring in the field of telecommunications have a significant impact on management decisions in this area. Key trends include:

SLIDE 2

Information technology, especially in telecommunications-based applications, helps a company overcome geographic, time, cost, and structural barriers to business success.

As shown in the slide there are four strategic capabilities of telecommunications and other information technologies.

For example, traveling salespeople and those at regional sales offices can use the Internet, extranets, and other networks to transmit customer orders from their laptop or desktop PCs, thus breaking geographic barriers. Point-of-sale terminals and an online sales transaction-processing network can break time barriers by supporting immediate credit authorization and sales processing.

Teleconferencing can be used to overcome cost barriers by reducing the need for expensive business trips since it allows customers, suppliers, and employees to participate in meetings and collaborate on joint projects.

Finally, electronic data interchange systems are used by the business to overcome structural barriers by establishing strategic relationships with their customers and suppliers by making the exchange of electronic business documents fast, convenient, and tailored to the needs of the business partners involved.

SLIDE 3

The Internet is the largest "network of networks" and the closest model of the information superhighway to come.

Nature of the Internet. The Internet developed from a US Defense Department network called ARPANET, established in 1969. One of the extraordinary features of the Net is its decentralized nature. No one "runs" the Net; it is not controlled either from a central headquarters nor governed by a single business or government agency.

Internet Applications:

E-Mail. Allows users to send and receive electronic messages.

Discussions Forums and Chat Rooms. Allow users worldwide to participate in special interest forums formed by newsgroups and businesses alike. Allows you to read and respond to other messages in real-time.

Information Retrieval. Internet browsers like Netscape and Internet Explorer allow the user to surf the Web through hyperlinked web pages. Search Engines allow users to access software and information on thousands of databases. The file transfer protocol (FTP) allows users to download a wealth of multimedia information.

Telnet. Allows users to access and use remote computer systems around the world.

Business Use of the Internet. By 1995, over 1.5 million host networks on the Internet belonged to businesses. Businesses on the Internet are there in part to take advantage of the easy, worldwide communications available through E-mail and file transfer protocols (FTPs). But business is also on the Net to help shape the network as a channel for conducting business transactions -- buying and selling goods and services in cyberspace to distant customers linked by computers and modems.

SLIDE 4

Like any communications model, a telecommunications network connects a sender to a receiver over a channel for sharing messages. The basic components of a telecommunications network are:

Terminals. These are networked microcomputer workstations or video input/output stations that provide the sending and receiving endpoints for the network.

Telecommunications Processors. These are specialized hardware components that support data transmission and reception between terminals and computers. Examples include modems, routers, and switches.

Telecommunications Channels and Media. A channel connects two or more parties in a network. Media are the particular way a channel is connected. Telecommunications channels use combinations of media such as copper wires, coaxial cables, fiber optic cables, and microwave carriers to transmit information.

Computers. All sizes and types of computers can and are connected to telecommunications networks. Typical arrangements include using a mainframe as a host for the network, a minicomputer as a front-end processor, with a dedicated microcomputer as a network server to a smaller local group of networked microcomputer workstations.

Telecommunications Control Software. Consists of programs that control telecommunications activities and manage the functions of telecommunications networks. Examples include network operating systems, browsers and telecommunications monitors.

SLIDE 5

Telecommunications networks covering a large geographic area are called wide area networks (WANs). Networks that cover a large city or metropolitan area (metropolitan area networks or MANs) can also be included in this category. Such large networks have become a necessity for carrying out the day-to-day activities of many business and government organizations and their end users. For example: WANs are used by many multinational companies to transmit and receive information among their employees, customers, suppliers, and other organizations across cities, regions, countries, and the world.

SLIDE 6

Local Area Networks (LANs) connect computers and other information processing devices within a limited physical area, such as an office, a building, or work site. LANs use a variety of telecommunications media.

Key concepts and components of LANs include:

Telecommunications Media. Includes twisted-pair wire, coaxial cable, fiber optics, terrestrial microwave, communications satellites, cellular radio, and wireless radio systems.

Network Interface Card. PCs on a network must have a circuit board installed to handle the network interface. This is the typical way of expanding PC capability.

Teaching Tip: The advent of Windows 95 and Plug and Play architecture makes the installation of network cards by end users much easier.

Network Server. As mentioned earlier, this is a dedicated PC with a large hard disk capacity for secondary storage. Many servers also have more RAM than the individual workstations on the network.

Network Operating System. The network operating system controls the interface between users and machine hardware as well as the telecommunications peripherals linking them.

Internetwork Processors. Most LANs are connected via telecommunications to other networks, which might be other LANs, wide area networks (WANs), mainframes, or very large networks like the Internet. Interconnected telecommunications networks rely on internetwork processors, such as switches, routers, hubs, or gateways to make internetworking connections to other networks.

SLIDE 7

Intranets. Are secure internal networks whose web browsing software provides easy point-and-click access to end users, enabling them to access multimedia and other information on internal websites. A company, its business units, departments, and workgroups may establish intranet websites on internal web servers. Security devices and software like fire walls control access to the intranet. One of the attractions of corporate intranets is that their Internet-like technology makes them more adaptable, as well as easier and cheaper to develop and use than either traditional client/server systems or mainframe legacy systems.

Extranets. Networks that link some of the intranet’s resources of a company with other organizations and individuals. They enable customers, suppliers, subcontractors, consultants, and others to access selected intranet websites and other company databases. Organizations can establish private extranets, or use the Internet as part of the network connection between them.

Virtual Private Networks (VPNs). Many organizations use VPNs to establish secure intranets and extranets. A VPN is a secure network that uses the Internet as its main backbone network, but relies on fire walls and other security features. This allows a company to use the Internet to establish secure intranets with remote branch offices and secure extranets between itself and business partners and customers. It can also be used to allow employees to access the companies Intranet from home.

SLIDE 8

Client/Server Networks. Are the predominant information architectures used in business today. In a client/server network, the end user PC is the client. These are interconnected by local area networks, and share application processing with network servers. Sometimes called a two-tier client/server architecture. Local area networks can also be interconnected with other networks, including host systems and superservers.

Client/server architectures are seen as more economical and flexible than legacy mainframe systems. However, they experience more downtime and cannot process data in the quantity or with the dependability of the legacy systems.

Network Computing Networks. Network computers and other thin clients provide a browser-based user interface for processing small application programs called applets. Application and database servers provide almost all the software needed by end users. This includes the operating system, application software, applets, databases, and database management systems. This architecture is sometimes called a three-tier client/server model.

SLIDE 9

Telecommunications channels make use of a wide variety of media. Some major types of telecommunications media include:

Twisted-Pair Wire. This is the traditional phone line used throughout the world. It is the most widely distributed telecommunications media but is limited in the amount of data and speed of transmission.

Coaxial Cable. This is a sturdy copper or aluminum wire wrapped in spacers to insulate and protect it. Coaxial cable can carry more information and at higher speeds than twisted-pair wires. It also is a higher-quality carrier, with little interference.

Fiber Optics. These are hair-thin glass filaments spun into wires and wrapped in a protective jacket. Fiber optics transmit light pulses as carriers of information and so are extremely fast and produce no electromagnetic radiation. This makes them extremely reliable channels, although splicing cables for connections is difficult.

Terrestrial Microwave. Earthbound microwave radiation transmits high-speed radio signals in line-of-sight paths between relay stations..

Communications Satellites. Satellites in geosynchronous orbit are used to transmit microwave signals to any place on earth using dish antennas for sending and receiving.

Cellular and PCS Systems. Low power transmitters on each cell of the system allow users to take advantage of several frequencies for communications. Newer Personal Communication Services (PCS) use digital technologies that provide greater capacity, security, and additional services like voice mail and paging. The growth in web-enabled information appliances has sparked the interest in developing a wireless application protocol (WAP). This standard will also allow these devices access to the Web.

Wireless LANs. Using radio or infrared transmission, some LANs are completely wireless, thus eliminating the cost of installing wire in existing structures.

SLIDE 10

Telecommunications processors perform a variety of support functions. Some common examples include:

Modems. Convert digital signals coming from a computer into analog signals that can be transmitted over ordinary phone lines. A modem at the other end converts the analog signal back to digital.

Multiplexers. Processor that allows a single communication channel to carry simultaneous data transmissions from many terminals. This is accomplished in two basic ways:

Frequency Division Multiplexing (FDM). Divides a high-speed channel into multiple slow-speed channels.

Time Division Multiplexing (TDM). Divides the time each terminal can use the high-speed line into time slots. Statistical Time Division Multiplexing allows for dynamic allocation of time slots to active terminals only.

Internetwork Processors. Are used to interconnect telecommunications networks. They include:

Switches. A communication processor that makes connections between telecommunications circuits in a network so a message can reach its intended destination.

Routers. A processor used to interconnect networks with different protocols. Used for routing messages to their destination.

Hubs. A port switching communication processor. It enables temporary connections to be made to different devices, e.g. printers, servers, workstations etc., on the network. Thus, it allows network resources to be shared.

Gateways. Allow networks with different architectures, e.g. mainframes and client/servers, to be interconnected. (ODBC connection to Mainframe)

Fire walls. Security devices used to protect networks from intrusions by screening all network traffic.

Network Operating System. Software that controls telecommunications and the use of shared resources. Example: Windows 2000 Server, Unix.

Telecommunications Monitors. Computer programs that control and support the communications between computers and terminals in a network. Example: CICS.

Middleware. Software that helps diverse networks communicate with each other.

Network Management Software. Software that is used to monitor the performance and operations of the network and its resources.

SUMMARY

A major trend is towards pervasive use of the Internet and its technologies to build interconnected enterprise and global networks.

There are several basic types of telecomm networks, including wide area networks (WANs) and local area networks (LANs

 

 

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