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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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