Using MIS 2e

Chapter 4: Hardware and

Software

David Kroenke

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 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?

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 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
Memory 19th century who went
broke trying to build it –
the technology of the
day was insufficient.

Input Central processing unit

(CPU) Output

Hardware is comprised of
Auxiliary electronic components and related Auxiliary
Storage gadgetry that input, process, Storage
output, and store data according
to instructions encoded in
computer programs or software

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 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

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 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

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 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 = 0100 0001

Byte
Bit (8 bits)
A single Makes up
0 or 1 one
character

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 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 4-7
 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)

IBM RAMAC (1956) IBM XT(1983) Memory Stick (today)

First computer with a hard First PC with a hard 1 GB for about $10
disk(4.4MB) $35,000/year disk – 10MB for $6000

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 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.

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 Q2 – What is the difference between a client and a server?
 A client computer is used for
applications such as word
processing, spreadsheets, or
email. 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
email 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

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 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 email is an example of a thick
client application. Thick client software usually provides more
features and functions.

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 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 4-12
 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)

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 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

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 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.

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 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.

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 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 4-17
 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 4-18
 Review: Select the appropriate term for each item
Gigabyte – Thin client – Linux – Byte – Central Processing Unit –
Operating System – Memory – Credit Card – Fixed Disk – Unix

1. The smallest addressable unit of memory Byte

2. Approximately 1,000 megabytes Gigabyte
3. An open-source operating system Linux
4. Requires only a browser Thin client
5. Controls a computer’s resources Operating System
6. It loses its contents when power is turned off Memory
7. Retains its contents without power Fixed Disk
8. Operating system from Bell Labs Unix
9. The “Brain” of the computer Central Processing Unit
10. Doubles the warranty of a new computer Credit Card

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