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Chapter One

Chapter One. Developments in the Application of Information Technology in Business. Presented by Henri Nwabuisi. Goals. Describe how IT has changed How organizations have reacted to change Identifying transition points Review past that it may be a foundation for future progress

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Chapter One

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  1. Chapter One Developments in the Application of Information Technology in Business Presented by Henri Nwabuisi

  2. Goals • Describe how IT has changed • How organizations have reacted to change • Identifying transition points • Review past that it may be a foundation for future progress • Avoid past mistakes and build on successes

  3. Objective 1 How IT has changed:

  4. IT: What is IT? Study, design, development, implementation, support, or management of computer-based Information Systems, particularly software applications and computer hardware“ Information Technology Association of America (ITAA)

  5. Evolution of IT • Cost • Very Expensive to High Affordability • Increased Cost-Effectiveness • Size • Large-sized to Smaller-size • Increased Portability and Energy-efficiency • Performance • Slower to Faster inputs and outputs • Increased Sophistication and User Satisfaction

  6. Evolution of IT • Position • Centralized to Distributed Systems • Increased Control, Security, Integrity, and Availability • Risk • Hasher operating environment to Safer one • Increased Safety

  7. Objective 2 Organizations’ reaction to change

  8. How Organizations see IT • Change Agent? • Can change the very nature of business • Good or Bad? • Can be seen as a necessary evil • Can be source of strategic opportunity • Dynamic? • Changes rapidly and makes business even more unpredictable • Human-driven? • People play a significant role in IT

  9. After all said and done… • Well-Accepted and Widely-Used: • Increasingly key to convenience, efficiency, productivity, customer satisfaction, and profitability • Used by virtually every industry and service • Starting to spread farther than conventional PC and network technology • More integrations of other technologies • Handhelds, cell phones, TVs, automobiles, and more

  10. Objective 3 Identifying transition points

  11. Emergence of Info Tech • 1950s • basically a giant calculators • 1960s • Silicon chips & Integrated Circuits • 1970s • Microprocessors • Mainframes • 1980s • Micro-computers + Data • 1990s • Internet LIMITATIONS • High cost of hardware and systems development • Limited selection of applications

  12. Objective 4 Reviewing the Past

  13. 1945 – 1963: Discovery Age • Computer industry was BORN • founded after boom of the radio-industry during the WWII • Discovery of electronics (vacuum tube, transistors) in the calculator industry • IBM introduces Electronic Calculator • ENIAC is developed by US Army • Many electronics firms were created or entered computer field in USA and abroad • Essentially  financed by government and few large companies (public utilities and aerospace) • Participation by Universities for development of computers and transfer know-how to industry

  14. 1964 – 1974: Golden Age • Computer industry begins to MATURE • Introduction of Integrated Electronics • Merger of electronics firms (GE, RCA...) • IBM introduces mainframe computer and minicomputers flourish • Application systems developed by Software houses • Large and Medium-sized biz became equipped • American Airlines SABRE reservation system runs on IBM 7090 • 1969-1970: US Department of Defense cuts direct subsidies for application systems • Funded Integrated Electronics research heavily • Internet planned in the late 1960s

  15. The First Sign of Maturity Areas of Concern • Most implementations were not the best • Poorly defined specs • Unproven approaches • Cost savings mitigated by replacing clerical staff with expensive hardware and highly paid professionals

  16. The First Sign of Maturity Areas of Concern • Batch processing rather than online • Data was fragmented across the organization in various systems • Costs of maintenance • User dissatisfaction because systems are inflexible

  17. Old Economy 1960 - 1970s “Big is Beautiful”

  18. The First Sign of Maturity Practical Solutions • Concerns led to emergence of software engineering • Advances in technology, drop in cost • Mid 1970s – minicomputers become common

  19. Objective 5 Avoiding Past Mistakes

  20. Problems with New Projects • Technical specs developed in isolation • Specs were considered infallible • HR issues: technical staff worked in isolation • Projects over budget and timescale • Assembly line approach to development did not work

  21. Practical Solutions to Practical Problems • Emergence of Project Management • Emergence of Structured Programming • From Processes to Data No two programmers are the same

  22. Practical Solutions to Practical Problems Emergence of Project Management • Unified development: • Project Team approach to solve complex problems • PM focus on milestones not activity itself • Quality assurance, quality control, quality management • High user involvement

  23. Practical Solutions to Practical Problems Emergence of Structured Programming • Programs lacked control structures • Spaghetti logic, use of GO TO statement • Little, out of date, or no documentation • Development of languages such as PASCAL

  24. From Processes to Data Practical Solutions to Practical Problems Change in Focus • Emphasis on data and users • Data is separated from applications • Distributed systems rather than central • More flexibility

  25. From Processes to Data Databases technology matures • Different data representations • Network • Hierarchical • Relational • New professions emerge • Database designer • Data analyst • Database administrator

  26. From Processes to Data New Approaches to System Development • Specialization in coding apps or operating systems • Programmers specialize in different languages Linear Cyclical Causes: • Exponential effect of faults • Constant change in specifications • Maintenance in saturated environment

  27. Shift towards MIS • PLANS: • Info considered a fundamental and major resource • Initial approach was to put MIS on top of corporate database • PROBLEMS: • Impossible to integrate internal data • Needed external data • Only historical information • Needed ad hoc reporting • Not geared to handling unstructured problems

  28. Towards MIS • PROBLEMS: • Technology could only solve technical problems, not managerial problems • MIS focused on information management rather than management information • SOLUTIONS: Approach changed by the 1980s • Information focused • Audience was middle managers • Integrated data flows • Inquiry and report generation tools

  29. 1975 – 1994: Revolutionary Age • Computer industry MATURES • Advent of Microprocessors • Rise of Personal Computers (PC) invades server market • Increasing performance with increased processor, memory, and storage capacity • Demise of old companies with obsolete technologies • PC manufacturing subcontracted to countries like Taiwan, Korea, Malaysia, decreasing workforce of "main" companies • Batch applications replaced by On-line applications using data communications. • integration of software and networking • Internet is mainstreamed as Telecom is deregulated • Growth of software houses (Microsoft, Oracle, CA) • Large and small biz outsource IT systems to EDS or IBM

  30. 1995 - Present: Consolidation Age • Computer industry ADVANCES • Everything that is IT comes together • Boom of Hardware, Telecommunications and Software industries • Microprocessor design remains an American specialty • Memory, DSP and other specialty chips are designed and manufactured all across the world • Internet becomes normal universe for many PC users • Internet technologies standardized (W3C, ICANN, IETF, WAI ) • Bubble generated by the interest data communications and Internet market

  31. 1995 - Present: Consolidation Age • Bubble burst due to economic conditions that followed 9/11 • Shift from provision of data to provision of information and speeding up information flows • New types of systems emerge • Decision Support Systems • Email • Tele- & video-conferencing, TeleMedicine • Voice, text, and image processing • Social Networks • Object-oriented programming/design • Client-server architecture

  32. 1995 - Present: Consolidation Age • New types of systems (continued) • Image processing • Multimedia applications • E-commerce • Businesses use new systems for growth • Web 2.0: interactive information sharing, interoperability, user-centered design,and collaboration on WWW

  33. New roles for information systems • Information centers (support/mgmt) • System strategy / Strategic system planning • Increased business competition - build barriers against new entrants - change the basis of competition - change balance of power - suppliers - tie in customers - switch costs - create new products/services

  34. The Future: IT and Business • Cloud computing allows technology stack to be sourced from the Internet • Web becomes enterprise platform • Corporate IT provides secure transport layer for workers to access needed information using their own devices • Global and virtual collaboration becomes the way business is done • Rise of social networks is creating new ways of connecting with customers • Fresh approaches to systems development • Analytics become a commodity • Differentiation = Quality Data + Productive decisions

  35. Questions?

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