Slide 1 MIT5312: Professor KirsInformation Processing & IS Types An Overview of Information...

MIT5312: Professor Kirs Information Processing & IS Types

An Overview of Information Processing

and Information System Types


In Order to fully appreciate how to develop Information Systems, we need to understand the history of Information Systems, why they were developed, and how they fit in the general scheme of things

We don’t need to know all the specifics, BUTBUT

• To do that, we need to understand the past, and how they were developed

• We can then get a feel for where we are going

?? Why ??

• We need to understand why there are such things as Information Systems and why they were developed

(Besides, it’s interesting and it’s something you should know)


?? How do we do that ??We need to briefly overview the evolution of Computers and Management Information Systems

?? Starting When ??We will discuss the pre-electronic eras of computers, BUT ….

1951

Our major emphasis will start with the first generation of Computers …..


??? Why Do We Need Computers ?????? Why Do We Need Computers ???

Humans have always been interested in calculations Cavemen would count items with simple ‘counters’:

| | | || | | | slashes might be made on a wall to count 4 items

Simple systems frequently became overwhelming

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

slashes might indicate 49 items

There was a need to develop better systems

| | | || | | | | | | || | | | | | | || | | | | | | || | | | | | | || | | | | | | || | | | | | | || | | | | | | || | | | | | | || | | | | | | || | | |

Was a quicker method for interpreting the value 49


The Romans Developed the first widely used Numbering System

1 = I 2 = II 3 = III 4 = IV 5 = V 6 = VI 7 = VII 8 = VIII 9 = IX

10 = X

13 = XIII 15 = XV 20 = XX 25 = XXV 50 = L 64 = LXIV 76 = LXXVI 89 = LXXXIX 94 = XCIV

100 = C

118 = CXVIII161 = CLXI200 = CC359 = CCCLIX500 = D694 = DCXCIV729 = DCCXXIX799 = DCCXCIX954 = CMLIV

1,000 = M

1,590 = MDXC1,976 = MCMLXXVI2,000 = MM

BUTBUT, the system did NOT allow for calculations to be made


Early Devices

The Chinese Developed the Abacus to make calculations approximately 5,000 Years ago

As recently as the early 1940's, a skilled user of the abacus could outperform mechanical adding machines


The Slide Ruler

Edmund Gunther, early 1600’s Based on the concept of Logarithms

Multiplication

Multiple Calculations

DivisionExponentiation

ReciprocalsLogsTrigonometric Functions

BUTBUT, a slide ruler could NOT add or subtract

Preferred tool by scientists until the 1970’s The last manufacturer of slide rulers went out of business in

the 1980’s.


The Pascaline Blaise Pascal (1623-1662) Developed the Pascaline in 1642 Considered the 1st Mechanical Calculator

(addition and subtraction)

Based on an Ancient Greek design which calculated the distance traveled by a carriage


??? But how did it work ?????? But how did it work ???• It is based on the idea of 10’s Compliment:

• The compliment of 7 is 3 (since 10 – 7 = 3)• The compliment of 82 is 18 (since 100 – 82 = 18)• The compliment of 127 is 873 (since 1000 – 127 = 873)

• Rather than subtracting 2 numbers, we only need to add a number’s compliment

• For example, to subtract: 723 – 435 (= 288) We need only add: 723 + 565 (The complement of 435)

7 2 3+ 5 6 5

8

1

Carry-Over

1

The final Carry-Over is dropped

82

The Compliment of 435 since 1000 – 435 = 565


No --- Pascal Encountered Problems

The technology used was beyond its time

The machine was prone to break-downs

The machine cost more than the people it replaced

Only Pascal knew how to repair it

Social Acceptance Clerks feared the loss of their jobs

“The Devil’s tool”

First recorded case of ‘Technophobia’

??? Was it a Success ?????? Was it a Success ???


Gottfried Liebniz

Developed the 'Leibniz Wheel’ (c 1690)

An improvement over the Pascaline because the Leibniz wheel could also:

Multiply Calculate Square Roots

Although only about 50 years after the Pascaline, the Liebniz Wheel was better accepted


The Problem with AllAll of these devices was that they relied on fixed wheels

Operations could not be changed unless the machine was physically altered

Charles Xavier Thomas de Colmar The Arithometer

(c. 1820)

Performed all the functions of the previous devices

Remained in use until WWI


Joseph Jacquard Devised a method for automating

the weaving loom (c. 1800)

Pre-determined patterns and colors could be ‘programmed’ into the loom

The patterns could be changed WITHOUT physically altering the machine

The first ‘variable input’ machine

Because this occurred during the industrial revolution, Jacquard’s invention was widely accepted and Jacquard himself honored


The ‘Difference Engine’ (c. 1822)The ‘Difference Engine’ (c. 1822)

Charles Babbage (1791-1871) The Father of Modern Computing Annoyed by time required and numerous

human errors made in calculating Logarithms

Note the Time Period and Location: War in Europe (Babbage proposed his ideas in 1812) ‘Britannia Rules the Waves’

The Royal Navy used logarithms to produce astronomical tables for navigational purposes.

Babbage received a grant to develop a device which would quickly and accurately calculate logarithmic tables


It sounds good, but …..

The Machine was steam Powered

Like the Pascaline:

Prone to breakdowns Expensive

The biggest Problem:

IT DIDN’T WORK!!!


Did our hero give up ??? Did our hero give up ??? No! In 1833, Babbage proposed the ANALYTICAL ENGINE

The Analytical Engine Consisted of 5 basic components:

A Variable Input Device Two ‘cards’ were used

One to indicate the operations to be performed One to specify the data to be used

A ‘Mill’, or device to process the commands and data

A ‘Store’, or internal memory to hold commands and data

A ‘Controller’, or device which determined how to process commands

An Output Device to display results


??? So ?????? So ???Babbage’s concepts formed the basis of modern day computer design

Central Processing Unit (CPU)

Control Unit (CU)

Internal Storage (IS)

Arithmetic-Logic Unit (ALU)

A ‘Controller’, or device which determined how to process commands

A ‘Store’, or internal memory to hold commands and data

A ‘Mill’, or device to process the commands and data

Variable Input Output Device


?? Did The Analytical Engine Ever Work ??

Not Really --- However ---

In 1855, George Scheutz, a Swedish Printer, constructed the first functional Difference Engine.

Babbage's son, Henry, did manage to develop a functional Mill portion of the Analytical Engine in the 1880's.

Babbage also influenced one additional development

Programming


Ada Augusta Lovelace

The First Programmer

Lord Byron’s Daughter

In Reviewing Babbage’s article on the Analytical Engine, she compiled some notes which became the first Program

The U.S. Department of Defense named their programming language (ADA) after her


Herman Hollerith (1860-1929)

1880: Census Clerk, Buffalo, NY

The U.S. Constitution Requires a Census Every 10 years

The U.S. is experiencing a period of mass immigration

It was taking more than 7 years to process and interpret the information

The Census Department held a competition to reduce collection and compilation time

All entries were considered ‘Color Coding’ was a leading contender

Guess who won?? Yup ---- It was Herman !!!!----

??? So, what was so special ???


Hollerith’s Tabulating Machine

Relied on ‘punched cards’

Wires passing through holes in the card would close a circuit

The System Consisted of three Components A Punch to create the cards A Tabulator to process the cards A Sorter to organize the cards by categories


?? Was the System Successful ?? The 1890 population count was completed in 6 months All census data was compiled 2 years later The total cost was $5 Million below forecasts Later refinements allowed for additional data processing

?? What happened to Herman ?? In 1896 Hollerith founded the Tabulating Machine Company to

build Electronic Accounting Machines (EAMs)

The Tabulating Machine Company became the Computer Tabulating Recording Company (CTR)

In 1924 CTR changed its name to IBM (Hollerith retired in 1921)

Hollerith’s coding scheme for the basis of the EBCDIC coding scheme still used by IBM


Konrad Zuse Between 1936 and 1941, Zuse built Four

machines The Z1 through the Z4

?? So ?? Until Zuse’s machines, calculators were based on decimal Zuse’s machines, were based on binary

?? So ?? As it turns out, binary was a more efficient system for

computers processing

The Computer as we know it would not exist without Zuse’s approach


?? So Zuse Developed the 1st Computer ??

Well … Not Quite …Well … Not Quite … Zuse’s Machines used a series of mechanicalmechanical (NOT electronic) Relays

Off Off Off Off Off Off Off Off

On Off Off Off Off Off Off Off

On On Off Off Off Off Off Off

On On Off On Off Off Off Off


The First ComputersThe First Computers

1939: Atanansoff & Berry (Iowa State)

The ABC Machine

Funded by Department of War

1944: Howard Aiken (Harvard University)

The MARK I

Also Funded by the Department of War

VERY FAST: 3 Seconds/Multiplication !!!


1946: Eckert & Mauchley (University of Pennsylvania)

ENIAC

EElectronic NNumericalIIntegrator AAndCCalculator

Large:

30 Tons 1,500 Square Feet 19,000 Vacuum Tubes When in Operation, Caused a ‘Brown-out’ in

Philadelphia


??? So which was the 1st Real Computer ?????? So which was the 1st Real Computer ???

The ABC Machine used electromagnetic relays, and was really more of a prototype

The MARK I was fully functional, but also relied on Electromechanical Parts

ENIAC had NO moving parts

??? So ENIAC was the 1st Real Computer ?????? So ENIAC was the 1st Real Computer ???

The Issue was Contested In 1973, A federal Court awarded credit for the 1st

computer to John Vincent Atanasoff and his assistant, Clifford Berry (The ABC Machine)

Some still feel that ENIAC was the 1st Computer


??? Did the 1st Generation of computers begin ??? Did the 1st Generation of computers begin with the ABC Machine or ENIAC ???with the ABC Machine or ENIAC ???

Neither

Eckert & Mauchly (from U.P.) went on to form the Remington-Rand Corporation

In 1951, Remington-Rand Produced (and sold) the 1st Commercially available Machine

??? So What ?????? So What ???

The UNIVAC I

The 1st Generation of Computers Begins with the Sale of the UNIVAC


The 1The 1st st Generation of Computers Generation of Computers (1951 - 58)(1951 - 58)Onset:• Sale of the first UNIVUNIVersal

Automatic CComputer (UNIVAC)

• An extension of the ENIAC

Cost: $500K to $30M

• Government

• Scientific Applications

Major Uses:

• Military

• The 1st machine was sold to the US Census Department


Technology:• Vacuum Tubes

• Approx. 19,000 needed(Up to 6’ Tall)

• Expensive• Fragile

• Prone to Breakdowns and burn-outs (Debugging)

• Used An enormous amount of electricity (Brownouts)

• Gave off an enormous amount of heat (AC Needed)

The 1The 1st st Generation of Computers Generation of Computers (1951 - 58)(1951 - 58)

• Large


Speed: 2,000 – 3,000 Instructions per second

Memory:• Magnetic Core (Donuts)

• Average: 1,000 – 4,000 ‘donuts’ (125 – 500 Chars)

Size:• The UNIVAC took up 1,500 square feet of space


• By 1999, Most PCs were running at about 9 MIPS• In 2000, A Germany company developed a computer running at 51 BIPS

• IBM AN/FSQ-7 built for the US Air Force weighed 30 tons and took up as much space as a High School Gymnasium

Magnetic Core


Secondary Storage:

• Punched Cards


• Dated Back to Herman Hollerith in 1880

• Magnetic Drums

Magnetic Drum


Secondary Storage:• Punched Cards

Operating Environment:


• Dated Back to Herman Hollerith in 1880

• Dedicated Machines

Operating System

• The programmer 1st got the operating system (on cards)

Program+

• The added their program (on cards)

• Then fed the Deck into the card reader


Program Languages:• Machine language (1st

Generation)

Availability: 2,550 (1958)


IBM Wiring Board

• Programmers needed to know all of the Operating Codes (in Binary), keep track of memory (in binary), and enter all code in binary

Cost:• $500,000 - $30M (Approximately $25M to $1.5B in 2002 dollars)


The 1The 1st st Generation of Computers Generation of Computers (1951 - 58)(1951 - 58)A Typical Set-up: An IBM 650 in 1956:• The rental price for the CPU and power supply was $3,200/month

• This was about the complete price of a fully loaded Cadillac

• The CPU was 5ft by 3ft by 6ft and weighed 1966 lbs

• The power unit was 5ft by 3ft by 6ft and weighed 2972 lbs• A shirt pocket HP-100 will run on 2 AA cells and is much faster

• A card reader/punch weighed 1295 lbs and rented for $550/month

• The probable operating ratio was 80% -- not guaranteed

• The estimated cost of spare parts was $4000/year ($196,000 in 1998)

• The 650 could add or subtract in 1.63 mill-seconds, multiply in 12.96 ms, and divide in 16.90 ms

• The memory on most systems was magnetic drum with 2000 word capacity• For an additional $1,500/month you could add magnetic core memory of 60

words with access time of .096ms

• The equivalent of $156,800 in 1998


Information Systems Usage:• No Real SystemsSystems• The ProgramsPrograms written were highly procedural in nature• User involvement Not Necessary

User Attitude:• “What is a Computer?”

Manager Attitude:• “What is a Computer?”

• “What are Users and Managers?”

Designer Attitude:



Additional Issues of Note:• 1951: Univac

• 1954: IBM650

• By End of 1st generation:

• 1953: IBM701• Business Oriented• Not Extremely Successful

• Slight Improvement• Direct Marketing

• IBM largest manufacturer of computers


• Built ‘On-Demand’ for no specialized purpose and with no variations

(An Anti-Trust Suit had already been filed against IBM in 1952)

• Very Successful


Onset:• 1948: Bell Labs

• First Transistors• 1954: TRADIC

• 1959: IBM7000• 800 Transistors

• No Vacuum Tubes• 1959: IBM1401

• IBM completely dominates the computer market

Uses:• Expanded Government and

Research usage• Large Businesses (Almost exclusively for Accounting)

The 2The 2nd nd Generation of Computers Generation of Computers (1959 - 65)(1959 - 65)

The IBM-1407


Technology:• Transistors

• Relatively Small

• Much Cheaper• Required Less

Electricity• Gave off less heat

• Less prone to break-downs

• Could be Mass Produced


The IBM-1407 System


• 1 – 1.2 MIPS

• Still mostly Punched Cards• Magnetic Tape Available

Speed:

Memory:• All Magnetic Core

Secondary Storage:


• Clock Speeds of about 0.086 mHz (vs. about 2 gHz, or better, for most PCs today)

• The IBM-1401 typically had between 4k to 16k (32k was considered large)

(In 2001, 1 MB of RAM could be purchased for as little as $0.19)

IBM Tape Reader

• Used 2-10½ Reels• Capable of storing 14 MB/Reel

(The Equivalent of about 175,000 punch cards)


Cost:The 2The 2nd nd Generation of Computers Generation of Computers (1959 - 65)(1959 - 65)• Variable:

Year Model Cost (in that year’s $)

1959 IBM 7090 $3,000,000

1960 IBM 1620 $200,000

1960 DEC PDP-1 $120,000

1960 DEC PDP-4 $65,000

1962 UNIVAC III $700,000

1964 CDC 6600 $6,000,000

1965 IBM 1130 $50,000


Operating Environment:• The 1st Operating System (DOS) was invented

by IBM in 1956 but was not widely available until the 2nd Generation


MOV AX,0006 ; Puts value 0006 at register AX (Accumulator)MOV BX,0004 ; Puts value 0004 at register BXADD AX,BX ; Adds BX to AX contents

00110 00110 00000111100 ;Store value 110 (6) in memory loc 111100 (60)00110 00100 00001001101 ;Store value 100 (6) in memory loc 1001101 (77)10100 00000111100 ;Load value in location 111100 into accumulator 00000 00001001101 ;Add contents of memory loc 1001101 to accumulator

Gene Amdahl

Programming Languages:• Assembly Language (2nd Generation; 1st developed in 1949)• For example to add 4 + 6, the code needed was:

vs. the Machine Language (1st Generation) Code:


The 2The 2nd nd Generation of Computers Generation of Computers (1959 - 65)(1959 - 65)• 1957: 3rd Generation Laguages: FORmula TRANslation

(IBM)

(Dept. of Defense)• 1958: COBOL

18,000 (1964)

Programming Languages (Continued):

• To add 4 + 6, the code needed was:y = 4 + 6

( y is the location in memory; no register operations required)

• Intended for transaction processing and the processing of large amounts of data

Grace Hopper (1902 – 1992)

Availability:Size: Corner of (large) room (Peripherals still large)


Information Systems Usage:• Mostly Individual Programs written for Specific needs

• EDP departments established• Some Manager Involvement

User Attitudes:• “I’ve heard of computers. What do they do? Will they

replace us?”

Manager Attitudes:• “Maybe these things can save us money!”

• “We’re still in control: We can do what we like!”Designer Attitudes:

• User involvement considered unnecessary

(Under Accounting)


• Programs still highly Procedural in nature


Onset: Photolithography

• 10’s of transistors/chip

• 100’s of transistors/chip

• 1,000’s of transistors/chip

• Millions of transistors/chip

(Reduction and Burning)

• Small Scale Integration(SSI)

• Medium Scale Integration(MSI)

• Large Scale Integration(LSI)

• Very Large Scale Integration(VLSI)

The 3The 3rd rd Generation of Computers Generation of Computers (1968 - 70)(1968 - 70)


Onset (Cont.):

• Several Models Available• Expandable

• Software Unbundling

Uses: • Medium Size Businesses

• Educational Facilities• Still primarily Accounting (TPS) but some

Managerial Reporting

• IBM 360 series

• Software Compatibility


(More Anti-trust legislation pending)


Major Changes:• Market Segmentation

• Smaller Businesses• Small Universities

• Mainstream Businesses and Organizations

• Large Research Ctrs.• Companies needing

extra resources


DEC PDP-8

Super Computers

Mini-Computers

Mainframes

Cray Y-MP (1988)

(CDC Cyber 6000 Introduced in 1964)

(DEC PDP-1 Introduced in 1960)

(UNIVAC Updated)


Technology:• Small• Cheap• Durable

0.01 Microsecond per operations

Memory: 32K to 3MB

• Magnetic Disks (Up to about 3 GB)

Integrated Circuits (ICs)• Used little Electricity• Gave off little heat• Seldom Broke down

Speed:

Secondary Storage:


This integrated circuit, an F-100 microprocessor, is only 0.6 cm square and is small enough to pass through the eye of a needle.

(1,000,000/.01 = 100 MIPS)

(In 2001, a 120 GB Drive sold for as little as $275)

IBM 1405 Disk Storage

• The IBM 1405 Disk:• Could store up to 10 MB per disk• Had up to 50 Disks, each 2’ in Diameter• Purchase price per MB: around $10,000

(vs. $0.002 for the drive above – 5,000,000 times cheaper)


Size: Small Closet

$15K to $10M

(Mini-Computer)

Cost:Operating Environment: Enhancements to IBM/DOS

Availability: 150,000 (1970)


Programming Languages:• BASIC (1964)

• Kemeny and Kurtz at Dartmouth University

• 1st Interpreted LanguageKemeny and Kurtz


• Early Generation:• EDP Departments Expanding (Centralized Control)• Emphasis on on automating everything

• Increased Emphasis on Managerial Reporting(Organizational Efficiency)

The 3The 3rd rd Generation of Computers Generation of Computers (1965 - 70)(1965 - 70)Information Systems Usage:

• Periodic Reports• Weekly Sales Summaries• Monthly Budgets

• On-Demand Reports• “How do our sales compare to San Antonio’s?”

• Exception Reports• “Why did Johnson have $4,000 in sales expenses

last month?”


• Later Generation:• Because of Cheaper costs, Multiple Computers often

available• Some decentralization of authority

• Some Programs written for individual departments and users(Organizational Effectiveness)

The 3The 3rd rd Generation of Computers Generation of Computers (1965 - 70)(1965 - 70)Information Systems Usage (Cont.):

(Individual area might have their own Computers)

• Initial Attempts at Decision Support Systems (DSS)• Programs written for Individual Decision Makers• Programs written for Specific Problems

(Not a “True” DSS)


Manager Attitudes:• Early Generation:

“These things are great! We can lay-off people and save money!”

• Later:

User Attitudes:• Early Generation

“This is getting expensive!”

“The boss says we have to use these miserable things! I know they are going to replace us”

• Later

“I can live with it, but I wish it didn’t take forever to get new systems!”



Designer Attitudes:• Early Generation:

“We can do whatever we want! This is great!”

• Later:“Its still a great job, but I hate those users! Can we get rid of them?”

(The Mushroom Approach Begins – And Continues)



Onset:• The IBM 370 Introduced

• LSI• Metal Oxide Semi-

conductors (MOS) for memory

Uses:• Almost All Businesses/Research Facilities• All Educational Facilities

• Evolutionary NOT Revolutionary

Why a new generation??Because IBM said so!

The Early 4The Early 4th th Generation of Computers Generation of Computers (1970 - 81)(1970 - 81)


Other Developments:• 1969: 1st Microprocessor developed at Intel

• 1974: Intel 4004 commercially available

Intel 4004• 1974: Edward Roberts develops the MITS

Altair 8800. • Sold for $375• Contained, a board set, CPU, front

panel (without switches), four slot backplane and a 1K memory board with 256 bytes of RAM chips (not 256k).

• There was no case, no power supply no keyboard, no display, and no auxiliary storage device. Altair 8800(But Hacker’s Loved it)

THE 4th GENERATION IS NOW OFFICIALLY UNDERWAY !!!



Other Developments (Cont):• 1975: Popular Electronics Magazine

publishes an article on how to build ‘A Personal Computer’

• 1975: The Homebrew Computer Club

(Hacker’s go crazy!)

• Jobs meets Wozniak• Together they start producing

computer boards (initially), then computers, in Jobs’ parent’s garage

• The rest, as they say, is history

• 1977: Apple II Introduced(1983 Sales: $983M)



• Increasing Decentralization (Departmental Computing)

• Information Systems Development Bottlenecks• Demand far exceeds supply

• File Processing Systems (mainly COBOL Based) still prevalent:• Single Application• Extensive Duplication• Structural and Data

Dependence• Data Inconsistencies

• Excessive Storage• Extensive Development Times• Extensive Maintenance• Lack of standards

Information Systems Usage:

• Systems taking too long to develop

• Limited Data Sharing

Result: Shift (limited) toward Database Management Systems (DBMS)

• EDP Departments Growing out of control



• DBMS originated as a result of NASA Space Program• Early 1960’s: >60% of all data duplicated at least once

• Required extensive computing Resources

• Multiple Applications• Data Consolidation• Minimum Data

Duplication• Data Sharing

• Data Security• Data Standards

Enforcement• Easier Maintenance• Quicker Development

Information Systems Usage (Cont.):

• IBM Develops Information Management Systems (IMS)

• Data Integrity

• Intended DBMS Advantages:

• Cost Savings



• Increased use of Management Reporting Systems

• Boeing, Lockheed

Information Systems Usage (Cont.):

• Increased use of DSS

• Improvements/Extensions in Spreadsheets (DSS Generators)

• Some Expert System/Artificial Intelligence applications finding their way into business• First ACM Computer Chess Tournament held in 1970

• Prolog (1972)• AI Shells

• Increasing emphasis on unstructured programs for managerial decision making

• LISP (1958)



Manager Attitudes:• “If we control this thing right, we can increase

productivity”

• “It’s better, but trying to get what you need around here is like pulling teeth!”

• “We’re understaffed! The boss says I have to deal with those slimy users, but I don’t have the time”

User Attitudes:

Designer Attitudes:(Visible AND Invisible Backlogs)



Developments:• IBM decides to use an ‘open-architecture’ approach

Middle 4Middle 4th th Generation of Computers Generation of Computers (1981 - 87)(1981 - 87)

• They would use the Intel 8080 (decided in 1980)• They would go shopping for an operating system

• First Stop: Gary Kildall creator of the PL/M programming language for the Intel 8008 and developer of the CP/M (Control Program/Monitor) operating system

Gary Kildall (1946–94)

• He wasn’t home• His wife refused to sign the ‘Non-Disclosure’

form (i.e., “We never talked to IBM, and even if we did, I can’t tell you what we said”) that IBM always required


Developments (Cont):• Next Stop: Microsoft

• Microsoft had developed BASIC interpreters, primarily for the Altair

• So, how did they get the operating system?• Microsoft bought all rights to the 86-DOS from Seattle

Computers System in 1928 for $50,000

• Did they have an operating system for the PC?• “Of Course!”, Bill lied

• MS-DOS version 1 operating system released in August, 1981. Used 160 Kb memory and a single sided floppy disk

• Microsoft decides to license MS/DOS to IBM, while IBM ceded control of the license for all non-IBM PCs.



Developments (Cont):• The Result:

• The IBM PC Released in 1981• Intel 8080 CPU operating at 4.77 mHz

• Bill Gates?

• 64K Ram• 1 5¼” Floppy Drive (No Hard Drive)• B/W (Green, really) Monitor• Approximate cost: $5,000• 65,000 units sold by end of the year. • 23% Market Share by 1983

• With a net worth of $43.34 Billion (January, 2002) he is behind the GNP of Puerto Rico ($47.62 Billion; the 50th ranked country in the world), BUT ahead of the 51st, The United Arab Emirates ($42.73 Billion) (The Stock Market Crash really hurt)



Major Advances:• Introduction of PCs into

the workplace

Focus:• Business Departments• End-Users• Organizational Planning and Control• User Effectiveness


• Significant Increases in computing Power• In 1983, The Cray-2

was running at 1 GigaFLOPs


• Change in Positioning/Importance of Information Systems• Table of Organization changing from:

Middle 4Middle 4th th Generation of Computers Generation of Computers (1981 - 87)(1981 - 87)Information Systems Usage:

CEO

VP Marketing VP Finance VP Production •••••

Accounting

EDP Depart.

To:

CEO

VP Marketing VP Finance VP Production CIO


Pro• Programs tailored

to user needs

• Effectiveness

• No waiting for ISD for applications

• Rapid Proliferation of End-User Computing(Individual Effectiveness)

• End-User Computing had Trade-0ffs:

Con

• User Satisfaction

• Duplication

• Errors

• User Skill and Knowledge Limitations

• Reversion to file processing systems

Middle 4Middle 4th th Generation of Computers Generation of Computers (1981 - 87)(1981 - 87)Information Systems Usage (Cont.):


• Solution to User Trade-off Issues ??

• Phone-In Questions

• Training• Approved Product Purchases (User Pays Cost)

• Information Centers (Help Desks)

• (Some of the) Services Provided by ICs:

• Approved Product Support

BUT at a cost and ONLY if Organization Standards are maintained

(Non Standard Hard/Software tolerated but not supported)

Information Systems Usage (Cont.):Middle 4Middle 4th th Generation of Computers Generation of Computers (1981 - 87)(1981 - 87)

• ISD no longer viewed as an Expense but as a Profit Centers. (Revenues are ‘Soft Money’)

• Technical Assistance• Approved Product Installation


• Increased emphasis on Organizational databases

• Increased use of personal databases (This can be dangerous)

• Increased emphasis on spreadsheets (PC Usage)• Increased Use of Expert Systems (still limited)

• Availability of 4th generation Languages (4gls)(Non-Procedural Languages)

• Increased usage of 3GLs and Object-Oriented Languages

• Increased use of semi/non-structured systems for ad-hoc decision making (DSS)

• C (Bell Labs: 1973)

• Visual BASIC

Middle 4Middle 4th th Generation of Computers Generation of Computers (1981 - 87)(1981 - 87)Information Systems Usage (Cont.):

• Introduction of Executive Information Systems (EIS)

• C++ (1983)


Manager Attitudes:• “There is a balance that we need to maintain”

• “I don’t need no stinking Analyst!”

• “Users may be a pain, but they can kill you if you aren’t careful.””

User Attitudes:

Designer Attitudes:

• “I guess we need more than just technical skills. Are people really necessary? It was so much nicer before.”


• IS trained individuals now preferred to Computer Science Trained individuals


Major Advances:• LANs

Focus:• Intra-Organizational• Inter-Organizational• Global Positioning• Business Effectiveness

• Intranets• Internet

• Extranets

The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )

• ARPANET (1969)• WWW (1992)


• Introduction of LANs Changed emphasis on IntraOffice functioning:

• Intranets changed emphasis from Office Efficiency/Effectiveness to Organization Efficiency/Effectiveness

• Increased Intra-office Communication (Email)• Collaboration/Sharing of Data• Balance between Centralization (Control) and

Decentralization (Flexibility)

• Focus on Business Effectiveness

Information Systems Usage:The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )

• Internets/Extranets changed emphasis from Organizational Efficiency/Effectiveness to Industry Effectiveness• Global Competition• Strategic Information Systems

• EDI• E-Commerce


• IntraOffice/IntraOrganization initiatives:

• Intranets/Extranet Initiatives:

• Email• Document Management• Reliance on DBMS

• EDI

Information Systems Usage:The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )

• Database Proliferation• Centralized• Decentralized• Distributed

• Web-Oriented Packages/Programming• Oracle• HTML

• Java/Javascript• CGI

• ASP• Perl


• Prototyping• Reliance on ‘canned systems’• Reusable code (Object Oriented Programming – OOPS)

Information Systems Usage:The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )• Increased need for rapid systems development:

• Need for System Stability• Ability to rapidly change as the business changes• Ability to change as user needs change

• Emphasis on Graphical User Interfaces (GUIs)

• Improved System Interfaces (Legacy System Modifications)• Need to minimize training time for new systems

• Need for ‘Seamless’ integration/interaction between disparate systems


Information Systems Usage:The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )• Use of Strategic Information Systems for competitive

advantage• SABRE Systems• McKesson • American Hospital Supply

• Emphasis on Information Systems for Re-engineering• Increased use of DSS/ES/EIS

• Need to change the way in which business is done, not simply improve operations (i.e., Don’t use new tools to do old things)

• Need to develop new information system uses:• Artificial Intelligence• Neural Networks


Information Systems Usage:The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )• Increased attractiveness of Outsourcing:

• Concerns about Cost and Quality

• Lower-cost labor pools• World-class standards applied• Economies of scale• Improved control/standardization• Improved management of Inventory• Focus on Business Skills• Flattening of Hierarchical Structure• Higher Levels of IT Skills

• Tighter Overhead cost control/fringe benefits


Manager Attitudes:• “We’ve got to keep pace with technology”

• “I can’t do my job unless I have the latest technology”

• “How do they expect us to keep up with technology? This job is killing me!”.

User Attitudes:

Designer Attitudes:

• “How can we use Information technology to gain an advantage?”

The Later 4The Later 4th th Generation of Computers Generation of Computers (1987 - )(1987 - )


Era I(60s-70s)

Administration

RegulatedMonopoly

Productivity/Efficiency

Organizational

Primary Target Main Intent

Era II(70s-80s)

FreeMarket

Individual Indiv/GroupEffectiveness

Era III(80s-90s)

Regulated FreeMarket

Bus. Process/Interorganiz.

Strategic/Competitive

Era IV(90s -)

Collaborative ElectronicIntegration.

OrganizationEffectiveness

* Adapted from Applegate, McFarlan, McKenney

Overview of the IT Overview of the IT Environment/InfrastructureEnvironment/Infrastructure


Overview of Information System Overview of Information System TypesTypesConsider the type of Information which a Productions Manager at an Automobile Assembly plant deals with:

• S/he is concerned with what is happening in the plant only• The Information focuses on what is happening now (‘real-time’)• Input Data is based on what happened in the past

• The Outputs are very accurate• The Reports are very detailed• The reports received are generally similar in their structure

What Types of Information Systems are required ??

• There are typically very few surprises

Operational Management• Internal Data • Real-Time

• Historical • Highly Accurate

• Very Detailed

Transaction Processing Systems (TPS)

• Highly Structured• Anticipated

On-Line TPS (OLTPS)

Inputs

Outputs

As Well As

Floor Shop SchedulingFloor Shop ControlInventory Control

Inventory ControlMachine ControlProcess Control

And Others


Overview of Information System Overview of Information System TypesTypesConsider the type of Information which the General Manager at the same plant deals with:

• S/he is concerned with what is happening in the plant AND Outside• The Information focuses on what is happening now AND in the future• Input data is based on the past, but ALSO uses predictive data

• The Outputs are only fairly accurate• The Reports are somewhat detailed• The reports received are generally similar in their structure, but vary


• There are sometimes surprises

• Internal/External Data • Real-Time/Future • Historical/Predictive

• Fairly Accurate• Semi-DetailedMgt. Info. Systems (MIS)• Semi-Structured• Semi-predictable

Info. Reporting Systems (IRS)

Inputs

Outputs

As Well AsMarketing AnalysisSales Forecasting

Financial PlanningAnd Others

Middle Management

Organizational Info. Systems (OIS)


Overview of Information System Overview of Information System TypesTypesConsider the type of Information which the CEO who is deciding how to go about building a new car plant might require:

• S/he is concerned with what is happening Outside the plant• The Information focuses on will be happening in the future• Input data is almost entirely predictive

• The Outputs are only somewhat accurate• The Reports are very summarized• The reports received are generally unstructured


• There are often surprises

• External Data • Future • Predictive

• Slightly Accurate• Summarized

Decision Support Systems (DSS)

• Unstructured• Unpredictable

Expert Systems (ES)

Inputs

Outputs

Executive Info. Systs.

(EIS)

Top Mgt.

That Will Work !

But Middle & Operational Mgt. Can Use That Too! Mostly Top & Middle!

But Middle & Operational Mgt. Can Use That Too! Mostly Middle & Operational!


Overview of Information System Overview of Information System TypesTypesIf we put it together, we find:

Operational ManagementTransaction Processing Systems (TPS)

On-Line TPS (OLTPS)As Well As

Floor Shop Scheduling

Inventory ControlMachine ControlProcess Control

And OthersFloor Shop ControlInventory Control

Mgt. Info. Systems (MIS)Info. Reporting Systems (IRS)

As Well AsMarketing AnalysisSales Forecasting

Financial PlanningAnd Others

Middle Management

Organizational Info. Systems (OIS)

Executive Info. Systs.

(EIS)

Top Mgt.

ES

DSS

Control

Information

External Data

Future Oriented

Predictive

Slightly Accurate

Summarized

Unstructured

Unpredictable

Internal Data

Real-Time

Historic

Accurate

Detailed

Structured

Predictable


Any Questions ??? (Please !!!)

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