Kroenke - MIS Essentials 4h Ed - Instructor’s Manual 1

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LEARNING OBJECTIVES

1. Describe what business professionals need to know about computer hardware.

2. Describe what business professionals need to know about operating systems software.
3. Describe what business professionals need to know about applications software.
4. Determine if open source software is a viable alternative.

CHAPTER OUTLINE

▪ What do business professionals need to know about computer hardware?

 Basic components
 Computer data
 In fewer than 300 words, describe how a computer works ?
 Why does a business professional care how a computer works?
 What is the difference between a client and a server?
▪ What do business professionals need to know about operating systems software?
 What are the major operating systems?
 Virtualization
▪ What do business professionals need to know about applications software?
 How do organizations acquire application software?

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 What is firmware?
▪ Is open source software a viable alternative?
 Why do programmers volunteer their services?
 How does open source work?
 So, is open source viable?
▪ How does the knowledge in this chapter help you?

Experiencing MIS InClass Exercise 4

Place Your Bets Now!

1. Update the table with the latest announcements and data. Go to

http://finance.yahoo.com and update the financial data. Add new devices as
appropriate. Search the Internet, using terms such as iPhone vs. Android market
share to update the market share data.
Apple Google Microsoft
Device iPhone iPad Android Kindle Windows Phones Surface
Phones Fire
Hardware Apple Apple Google & Others Others Microsoft &
Manufacturer others Others
OS IOS IOS Android Android Windows 8 RT Windows 8
Windows 8 RT
Market Share 30% 68% 46% 13% 2% <2%
Camera Yes Yes Yes No Yes No
Keyboard Internal Internal Internal Internal Internal Internal and
External
Revenue $169 B $56 B $78 B

Cash $43 B $44 B $76 B

(7/31/13)
Market Cap $411 B $296 B $265 B
(7/31/13)
Share Price $611 $633 $29
(7/31/12)
Share Price $453 $877 $32
(7/31/13)
Annual Price -26% 40% 10%
Growth

Apple Google Microsoft

Device iPhone iPad Android Kindle Windows Phones Surface
Phones Fire
Hardware Apple Apple Google & Others Others Microsoft &
Manufacturer others Others
OS IOS IOS Android Android Windows 8 RT Windows 8
Windows 8 RT
Market Share 30% 68% 46% 13% 2% <2%
Camera Yes Yes Yes No Yes No
Keyboard Internal Internal Internal Internal Internal Internal and
External
Revenue $169 B $56 B $78 B

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Cash $43 B $44 B $76 B

(7/31/13)
Market Cap $411 B $296 B $265 B
(7/31/13)
Share Price $611 $633 $29
(7/31/12)
Share Price $453 $877 $32
(7/31/13)
Annual Price -26% 40% 10%
Growth

2. According to the latest data, how has the market share of these three companies
changed? Has Apple made continued inroads on Android phones? Has Surface made
inroads on the iPad? What’s happened to the Kindle? And what about Microsoft’s
measly 2 percent of the phone market? Has Surface helped? Or has Microsoft finally
given up on smartphones?

In the phone segment, Android has slight lead over iOS in both total market share and
in recent sales figure (slightly over 50%). Android has a much larger lead at over 70%
in global sales figures. iPad still leads in tablets (54%) but its lead over Android
tablets is shrinking. Samsung emerges as second largest player in tablets –11% while
Kindle is down to 10.1%. Surface shows a tiny market presence at < 2%.

3. Unlike Apple and Google, Microsoft controls Windows Server, a server operating
system. Does that provide an advantage to Microsoft in this race? There are rumors,
in fact, that Apple runs Windows Server in its iCloud data center. If true, does it
matter?

The main point to recognize here is that Microsoft stands to benefit as a provider of
server software, plus it benefits from the use of servers in its cloud offering,
SkyDrive. Google and Apple benefit from the use of servers in their cloud offerings
but do not benefit from the creation of the cloud infrastructure.

4. In October 2011, Microsoft purchased Skype. Does Skype contribute to Surface? Can
you find announcements that indicate there is some convergence there?

Skype has been highlighted by Microsoft Surface. Microsoft Surface has two cameras
that will help in video calling on Skype. Front LifeCam will be used to chat with people
and rear facing LifeCam is angled to 22 degrees so that you can easily flip out the
kickstand and record events and meetings. Camera resolutions are speculated to be full
HD 1080p quality in The Surface. It is yet to announce whether Windows RT or
Windows 8 Pro will be integrated with 3G or 4G options for making voice and video
calls with Skype. Microsoft Surface also has stereo speakers and dual micro phones
that will make the sound quality better. Dual Microphone will also help in group
calling. It will create a richer audio experience for the call. Taking the direct challenge
to Face Time from Apple, Microsoft is all set to prove that it has a better VOIP Tablet

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Service than its competitors. Microsoft Surface is using all the possible techniques and
methods to advertise Skype with The Surface.

Source: http://surfaceadvice.com/skype-and-microsoft-surface-tablet/

5. Microsoft makes and sells the Xbox with motion-sensing Kinect. Can you envision a
way for Microsoft to use either of those to help increase market share of its
Surface/phone devices? If so, what?

Surface connects to wired USB Xbox 360 controllers. Given that Surface is a tiny
Windows PC, it thus has a massive catalogue of games available to play. The Xbox
360 controller has an excellent, ergonomic design, offers almost every button you
could need and even includes a vibration option. The Surface supporting these
controllers is great news for gamers, doubly so given the Surface’s lightweight,
portable design. Surface is theoretically capable of working with any first-party
device that plugs into the Xbox 360’s USB port. Devices like the Kinect motion-
sensing peripheral.

Source: http://www.digitaltrends.com/gaming/microsofts-surface-tablet-supports-xbox-360-controllers-possibly-
kinect/#ixzz2F2q7t6PC (accessed 12/14/12)

6. Microsoft enjoys incredible success in the PC market, but it has, at least so far, never
been able to succeed with a phone, and, as of May 2013, Microsoft Surface does not
seem very successful. Christopher Mims thinks it's time for Microsoft to give up on
consumers and focus on businesses, especially business back-office applications. Do
you see any changes in Microsoft strategy since Ballmer's retirement announcement?
What do you think Microsoft should do?

Student answers will vary on this opinion question. The author of referenced article
makes a good case that Microsoft is very entrenched in the business market and has
repeatedly missed the boat in the consumer market. Students may well agree that
Microsoft should abandon its consumer efforts to the companies that have a proven
track record of success in the consumer marketplace.

7. Suppose your group has $500,000 to invest in AAPL, GOOG, or MSFT. You must put
all of it in one stock. Which stock do you choose and why?

Student answers will vary. Insist your student groups provide justification for their
choice and have clearly stated their assumptions. You should expect some lively
discussion as groups question those assumptions and predictions.

USING YOUR KNOWLEDGE

4-1. Suppose that your roommate, a political science major, asks you to help her purchase
a new laptop computer. She wants to use the computer for email, Internet access, and
note-taking in class. She wants to spend less than $1,000.

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a. What CPU, memory, and disk specifications do you recommend?

At a minimum, a 2 Gigahertz, 32-bit Pentium dual core CPU, 2 GB of RAM, and

at least 320 GB hard drive. (LO: 1, Learning Outcome: Describe the major types
of computer hardware and software used by companies, AACSB: Use of
Information Technology)

b. What software does she need?

An operating system (Windows), a Web browser (Internet Explorer, Chrome, or

Firefox), and a word processor such as Word or a note-taking product such as One
Note. If her email is provided over the Web (such as with a Gmail account) an
email client will not be needed; otherwise include Outlook or Thunderbird. (LO:
2,3, Learning Outcome: Describe the major types of computer hardware and
software used by companies, AACSB: Use of Information Technology)

c. Shop www.dell.com, www.hp.com, and www.lenovo.com for the best computer

deal.

For the sheer number of features and price, it is hard to top the ASUS X55C-
XH31 that can be found for as little as $570. It comes with a moderate Intel Core
i3-2328M quad core processor (2.20 GHz) and 4GB of memory that gives it a
good level of performance. Other features include a 320GB hard drive, dual layer
5400 RPM DVD burner, 15.6-inch display, Intel HD graphics 3000, 802.11b/g/n
wireless and a keyboard that includes a full-size numeric keypad. This system
comes with Windows 7 Professional (64-bit).

Dell’s Inspiron 3521, a 15.6 inch laptop is another good option. This system uses
Intel Core i3-3217U Processor (3M cache, 1.8 GHz). Other features of this laptop
include 4GB of DDR3 memory, 500GB hard drive, 15.6-inch display, Intel HD
graphics, 802.11b/g/n wireless and Windows 8. Prices start at around $425.

HP’s offering at the lower end of the performance scale is an HP Pavilion g6t-
2000 Notebook, priced at $450. This system has a 3rd generation Intel Core i3-
3110M (2.4 GHz) Processor + Intel Graphics 4000; a 15.6-inch diagonal High
Definition HP BrightView LED Display (1366x768); 4GB DDR3 Memory; a
320GB 5400RPM Hard Drive; and Windows 8 64-bit operating system. (LO: 1,
Learning Outcome: Describe the major types of computer hardware and software
used by companies, AACSB: Use of Information Technology)

d. Which computer would you recommend, and why?

For this user, all three options would be fine. I might recommend the HP because
of the slightly higher CPU performance. (LO: 1, Learning Outcome: Describe the
major types of computer hardware and software used by companies, AACSB: Use

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of Information Technology)

4-2. Your father asks you to help him purchase a new computer. He wants to use his
computer for email, Internet access, downloading pictures from his digital camera,
uploading those pictures to a shared photo service, and writing documents to
members of his antique auto club.

a. What CPU, memory, and disk specification do you recommend?

I suggest a mid-range Intel Quad Core CPU with a speed around 2.5 GHz; 4GB of
RAM, and at least 500GB hard drive. (LO: 1, Learning Outcome: Describe the
major types of computer hardware and software used by companies, AACSB: Use
of Information Technology)

b. What software does he need?

An operating system (Windows 7 Home Premium), a Web browser (Internet

Explorer or Firefox), email such as Outlook or Thunderbird, software to manage
his pictures such as Windows photo gallery, a word processor such as Word, and
possibly a digital image editing program such as Photoshop. (LO: 2,3, Learning
Outcome: Describe the major types of computer hardware and software used by
companies, AACSB: Use of Information Technology)

c. Shop www.dell.com, www.hp.com, and www.lenovo.com for the best computer

deal.

For a capable desktop replacement laptop, the HP Pavillion g7-2220us Notebook

computer seems appealing. This system offers an AMD A6-4400M APC
processor (3.2 GHz), AMD Radeon HD 7520G graphics, 4 GB DDR3 memory,
500 GB 5400 RPM hard drive, SuperMilti DVD burner, wireless 802.11 b/g/n,
and a 17.3-inch diagonal HD+ BrightView LED-backlit display (1600x900). The
operating system is Windows 8 professional (64-bit). This system is priced at
$520. (LO: 1, Learning Outcome: Describe the major types of computer hardware
and software used by companies, AACSB: Use of Information Technology)

d. Which computer would you recommend, and why?

The HP described above seems to be a great package of features at a very

reasonable price that will be suitable for this user’s needs. (LO: 1, Learning
Outcome: Describe the major types of computer hardware and software used by
companies, AACSB: Use of Information Technology)

4-3. Microsoft offers free licenses of certain software products to students at colleges and
universities that participate in its DreamSpark program. If your college or university
participates in this program, you have the opportunity to obtain hundreds of dollars
of software for free. Here is a partial list of the software you can obtain:

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• Microsoft Access 2013

• One Note 2013
• Expression Studio 4
• Windows Server
• Microsoft Project 2013
• Visual Studio Developer
• SQL Server 2012
• Visio 2013

a. Search www.microsoft.com, www.google.com, or www.bing.com and determine

the function of each of these software products.

• Microsoft Access 2013 – a personal database management system

• One Note 2013 – a product that helps organize text, pictures, digital
handwriting, and notes
• Expression Studio 4 – is a suite of tools for designing and building Web and
Windows client applications and rich digital media contents. It consists of:
➢ Microsoft Expression Web: Web site designer and HTML editor
➢ Microsoft Expression Blend + SketchFlow: Visual user interface builder
for Windows Presentation Foundation and Silverlight applications
➢ Microsoft Expression Design: Raster and vector graphics editor
➢ Microsoft Expression Media: Digital asset management application (As
of Expression Studio 3, this is no longer included)
➢ Microsoft Expression Encoder: Digital video encoder for authoring VC-
1 and H.264/MPEG-4 AVC contents
• Windows Server – a server operating system
• Microsoft Project 2013 – a product that helps organize, schedule, and manage
projects
• Visual Studio Developer – a software development environment that includes
several programming languages that can be used to create Windows
applications and Web applications
• SQL Server 2012 – a multiuser database management system
• Visio 2013 – a product used to create a wide variety of business and technical
drawings (LO: 3, Learning Outcome: Describe the major types of computer
hardware and software used by companies, AACSB: Use of Information
Technology)

b. Which of these software products are operating systems and which are
application programs?

The operating system is Windows server. Application programs are One Note,
Expression Studio, Project, and Visio. (LO: 2,3, Learning Outcome: Describe the
major types of computer hardware and software used by companies, AACSB: Use
of Information Technology)

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c. Which of these programs are DBMS products (the subject of the next chapter)?

DBMS products are Access 2013 and SQL Server 2012. (LO: 3, Learning
Outcome: Describe the major types of computer hardware and software used by
companies, AACSB: Use of Information Technology)

d. Which of these programs should you download and install tonight?

One Note seems like a great product for a college student to learn and use. (LO: 3,
Learning Outcome: Describe the major types of computer hardware and software
used by companies, AACSB: Use of Information Technology)

e. Either (1) download and install the programs in your answer to part ‘d’, or (2)
explain why you would not choose to do so.

Most students are pretty confident about downloading and installing new
software. If a student chooses not to do so, it may be because the purpose of the
software is not clear. (LO: 3, Learning Outcome: Describe the major types of
computer hardware and software used by companies, AACSB: Use of
Information Technology)

f. Does DreamSpark provide an unfair advantage to Microsoft? Why or why not?

The advantage to Microsoft is that college students have access to many

Microsoft products and can become experienced users of those products during
their college experience. Microsoft is banking on those college graduates wanting
to continue to use Microsoft products and becoming paying customers at that
point. Is the advantage unfair? The answer to this question should make for an
interesting and lively class discussion. (LO: 3, Learning Outcome: Describe the
major types of computer hardware and software used by companies, AACSB:
Reflective Thinking Skills)

COLLABORATION EXERCISE 4
Microsoft PixelSense

1. Consider uses for PixelSense at your university. How might PixelSense be used in
architecture, chemistry, law, medicine, business, geography, political science, art,
music, or any other discipline in which your team has interest? Describe one
potential application for PixelSense in five different disciplines.

Student answers will vary. The use of collaboration should aid the teams in
developing a set of creative ideas. (LO: 1, Learning Outcome: Discuss the role of
information systems in supporting business processes, AACSB: Use of Information
Technology)

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2. List specific features and benefits for each of the five applications you selected in
question 1.

Student answers will vary. (LO: 1, Learning Outcome: Discuss the role of
information systems in supporting business processes, AACSB: Use of Information
Technology)

3. Describe, in general terms, the work that needs to be accomplished to create the
applications you identified in question 1.

Student answers will vary. (LO: 3, Learning Outcome: Discuss the role of
information systems in supporting business processes, AACSB: Use of Information
Technology)

4. Until June 2012, PixelSense was called Surface. At that time, Microsoft repurposed
the name to use on its tablet devices. Surface was changed to PixelSense. What
conclusions do you draw from these naming decisions?

As stated previously in the Inclass exercise, Microsoft chose the name PixelSense to
help convey what the product can do (“sense” credit cards, phones, cameras, etc.).
When Microsoft set about naming its tablet device, it needed a name that was much
more attractive to consumers. Both products are probably considered important to
Microsoft, but the entry into the tablet market is a major strategic venture for
Microsoft and will be a hard-fought competitive battle. Microsoft wanted to keep its
“great” name, Surface, for that particular marketplace. (LO: 1, Learning Outcome:
Explain how IS can be used to gain and sustain competitive advantage, AACSB:
Reflective Thinking Skills)

5. You will sometimes hear the expression, “Emerging technology is constantly leveling
the playing field,” meaning that technology eliminates competitive advantages of
existing companies and enables opportunities for new companies. How does this
statement pertain to Surface, Windows 8, and Apple?

An emerging technology like Surface may result in the complete transformation of

industries and/or the creation of new business models. (LO: 3, Learning Outcome:
Explain how IS can be used to gain and sustain competitive advantage, AACSB:
Reflective Thinking Skills)

CASE STUDY 4
The Apple of Your i

4-4. Which of Porter’s four competitive strategies (from Chapter 3) does Apple engage in?
Explain.

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Apple is pursuing a focused differentiation strategy. It is focused primarily on the

mobile computing device market and is differentiating itself through its incredible
engineering and huge array of applications for its devices. (LO: 3, Learning Outcome:
Explain how IS can be used to gain and sustain competitive advantage, AACSB:
Reflective Thinking Skills)

4-5. What do you think are the three most important factors in Apple’s past success?
Justify your answer.

Student opinions on this will vary, but Apple has demonstrated a capability of
creating innovative new products successfully. Apple has also been able to keep that
stream of innovations going and to enable the innovations to play off of each other. A
culture that encourages and supports these engineering successes is obvious. Apple
also has developed an ability to sell and market its new products successfully. (LO: 3,
Learning Outcome: Explain how IS can be used to gain and sustain competitive
advantage, AACSB: Reflective Thinking Skills)

4-6. Steve Jobs passed away in October 2011. Until his death, he had been the heart and
soul of Apple’s innovation. Today, 35,000 Apple employees continue onward in his
absence. A huge question for many investors is whether the company can be
successful without him. What is your opinion? What role did he play? How can Apple
respond to his loss? Would you be willing to invest in Apple without his leadership?
Why or why not?

Jobs had a very hands-on involvement in the business. He was the company’s chief
innovator. Of course he didn’t do it all alone, but he seemed to set the direction for
the business in a very effective way. He had the ability to be visionary and send his
company’s engineers out to conquer challenges that paid off in big ways. The
company then also had the ability to develop support systems for the new
innovations. Another capability was to recover and move on from product failures,
which Apple had its share of as well. Can this company continue its progress without
Jobs? Obviously, only time will tell. Some students may feel that Apple will be
unable to sustain its success without the unique vision and leadership style of Jobs
and would therefore be unwilling to invest in Apple. Other students may feel that
Apple’s executives have been hand-picked and mentored by Jobs and are therefore
capable of continuing to lead Apple effectively. There is no question that Apple will
be a different place without Jobs’ influence, but it is not necessarily doomed. (LO: 3,
Learning Outcome: Explain how IS can be used to gain and sustain competitive
advantage, AACSB: Reflective Thinking Skills)

4-7. Microsoft took an early lead in the development of tablet devices (like the iPad), and
it had the world’s leading operating system and applications for more than 20 years.
Provide five reasons why Microsoft was not able to achieve the same success that
Apple has. Most industry analysts would agree that the skills and abilities of
Microsoft’s 88,000 employees are as good, on average, as Apple’s.

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Students will have different opinions on this. Here is a list of a few ideas to get the
discussion rolling:
• Lack of a visionary leader since Gates has departed
• Very diffuse focus – many market niches pursued simultaneously
• Emphasis on acquiring new technologies rather than in-house development
• Strategy of maintaining edge through strategic manipulation rather than product
enhancement
• Few products that are truly amazing, must-have products (LO: 3, Learning
Outcome: Explain how IS can be used to gain and sustain competitive advantage,
AACSB: Reflective Thinking Skills)

4-8. Considering your answers to the four questions above, as well as the current stock
price, if you had a spare $5,000 in your portfolio and wanted to buy an equity stock
with it, would you buy AAPL (Apple)? Why or why not?

Students will have different opinions on this. I would be sure to ask those who want
to jump on board the Apple bandwagon several questions, including:
• Is it the best strategy to buy a stock with the price at record highs?
• Are you concerned about Apple’s leadership following Steve Jobs’ death?
• How do you feel about the company’s ability to keep producing technical
winners?
(LO: 3, Learning Outcome: Explain how IS can be used to gain and sustain
competitive advantage, AACSB: Reflective Thinking Skills)

MyMISLab

4-9. Suppose you work at AllRoad and Kelly asks you to list five criteria she should use
when considering whether AllRoad should develop a thin- or thick-client application
for mobile devices. Justify your criteria.

There are a number of considerations that should be evaluated for this decision. Here
is a partial list:
• Strategy for the mobile application – Are they just trying to create a mobile-
device presence (browser-based) or are there very specific, complex elements to
include in the application?
• Specific application requirements – What specific features and functions are to be
included in the application?
• Budget – Native applications are much more costly to develop, requiring talented
developers who will need to create a unique version of the application for every
mobile operating system.
• Schedule – Native applications will take much longer to develop.
• Ability to manage a technical project – Technical expertise to develop native
applications is more scarce and will require more effort to acquire and manage.

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• Need for application revenue – Native applications can potentially generate a

revenue stream from royalties, while thin-client applications are made available
for free.
(LO: 4, Learning Outcome: Describe the major types of computer hardware and
software used by companies, AACSB: Reflective Thinking Skills)

4-10. Visit www.apple.com, www.microsoft.com, and www.ibm.com. Summarize

differences in the look and feel of each of these sites. Do you think one of these sites is
superior to the others? If not, say why. If so, do you think the look and feel of the
superior site should be copied by the other companies? Why or why not?

Apple’s site is clean, bright, and uncluttered and provides easy access to its major
product lines. Microsoft’s site is also bright and fresh-looking, but must include many
more links to enable the user to find the product category of interest (of which there
are many). IBM’s site features information—a prediction about five innovations in
the next five years is featured currently. IBM is clearly appealing to business users/
IT professionals rather than consumers. Although students may have different
opinions, I feel that each site does a good job of providing access to the company’s
product offerings. (LO: 3, Learning Outcome: Discuss the role of information
systems in supporting business processes, AACSB: Reflective Thinking Skills)

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