1. Copyright © 2004 South-Western. All rights reserved.18–1 Learning Goals components ways computers contribute challenges of managing today’s information technologies emerging technologies

2. Copyright © 2004 South-Western. All rights reserved.18–2 What Is a Computer? Device capable of processing and storing vast quantities of information –Hardware –System architecture  Central processing unit (CPU)  Primary storage - RAM  Secondary storage - hard drive, removable storage devices  Peripherals

3. Copyright © 2004 South-Western. All rights reserved.18–3 A Typical Microcomputer Exhibit 18.1

4. Copyright © 2004 South-Western. All rights reserved.18–4 How Much Have Computers Improved? For key computer components, price- performance ratios have been improving by a factor of 10 every five years. To put such improvements in perspective, had automobiles experienced the same rate of price-performance improvement, the $10,000 luxury car in the mid-1960s would now sell for under a nickel (including a liberal allowance for inflation). Exhibit 18.2

5. Copyright © 2004 South-Western. All rights reserved.18–5 Software Programs Collection of step-by-step instructions to the CPU that is loaded into primary storage (RAM), then run by the CPU –System (operating system) software (internal workings) –Application programs (Word processing, spreadsheets, databases) –Middleware (interrelate) –Utility software (Antivirus and hard drive recovery)

6. Copyright © 2004 South-Western. All rights reserved.18–6 Uses of Computers Computational models –Statistical analysis –Optimization models –“What-if” analysis –Decision support systems Data processing systems –Accuracy –Speed –Space –Flexibility

7. Copyright © 2004 South-Western. All rights reserved.18–7 Uses of Computers Interorganizational systems (IOS) Remote job entry systems (ATMs) Electronic data interchange (EDI) Commercial information services

8. Copyright © 2004 South-Western. All rights reserved.18–8 Managing Today’s Information Technologies Managing firm’s information system architecture –Stand-alone system –Mainframe (multi-user) system with terminals –Network system includes file servers and workstations  Local area network (LAN)  Wide area network (WAN)

9. Copyright © 2004 South-Western. All rights reserved.18–9 Stand-Alone System Architecture Exhibit 18.3

10. Copyright © 2004 South-Western. All rights reserved.18–10 Mainframe (Multiuser) System Architecture Exhibit 18.4

11. Copyright © 2004 South-Western. All rights reserved.18–11 Network System Architecture Exhibit 18.5

12. Copyright © 2004 South-Western. All rights reserved.18–12 Managing Today’s Information Technologies 1)Acquiring software 2)Managing the development of information systems 3)Managing the implementation of information systems 4)Policy development 5)Managing information systems security (Protect against espionage and sabotage)

13. Copyright © 2004 South-Western. All rights reserved.18–13 Emerging Technologies Evolution of the worldwide network –E-Commerce –Infrastructure –Implications  Virtual reality display techniques  Video-conferencing Truly intelligent systems –Artificial intelligence –Massively parallel machines

14. Copyright © 2004 South-Western. All rights reserved.18–14 Future of the Internet Internet offers unparalleled opportunities for research, public relations, and communications –Concerns remain  Lack of central authority  Lack of underlying organization  No way to ensure accuracy of information  Network performance unpredictable  Individual performance depends on download speed –Progress  High-speed internet connections via cable TV wiring  Private providers handling more traffic