Mis Slides

Session 4-14
Porter’s Competitive Forces Model
• The threat of new entrants

• The bargaining power of suppliers
• The bargaining power of customers
• The threat of substitute product or services
• The rivalry among exiting firms in the industry
MBA, LMTSOM, Thapar University 2

Porter’s seven strategies for
competitive advantage
• Cost leadership strategy
• Differentiation strategy
• Niche strategy
• Growth strategy
• Alliance strategy
• Innovation strategy
• Entry- barriers strategy

• competitive advantage is an advantage
over competitors gained by offering
consumers greater value, either by means
of lower prices or by providing greater
benefits and service that justifies higher
prices.
Five competitive forces with potential
strategic use of information resources.

Competitive Force IT Influence on Competitive Force
Threat of New Entrants Can be lowered if there are barriers to entry.
Sometimes IS can be used to create barriers to entry
Bargaining Power of Buyers Can be high if it’s easy to switch. Switching costs are
increased by giving buyers things they value in
exchange such as lower costs or useful information
Bargaining Power of Suppliers Forces is strongest when there are few firms to
choose from, quality is inputs is crucial or the volume
of purchases is insignificant to the supplier
Threat of Substitute Products Depends on buyers’ willingness to substitute and the

level of switching costs buyer’s face
Industrial Competitors Rivalry is high when it is expensive to leave and

industry, the industry’s growth rate is declining, or
products have lost differentiation
Application of five competitive forces model.

Porter’s Value Chain Model
• Value chain model addresses the activities that
create, deliver, and support a company’s product or
service.
• Two broad categories:
– Primary activities – relate directly to the value created in a
product or service.
– Support activities – make it possible for the primary
activities to exist and remain coordinated.

Altering the Value Chain
• The Value Chain model suggest that competition can
come from two sources:
– Lowering the cost to perform an activity and
– Adding value to a product or service so buyers will be
willing to pay more.
• Lowering costs only achieves competitive advantage
if the firm possesses information on the competitor’s
costs
• Adding value is a strategic advantage if a firm
possesses accurate information regarding its
customer such as: which products are valued?
Where can improvements be made?
Value chain of the firm.

The Value Chain System
• The value chain model can be extended by linking
many value chains into a value system.
• Much of the advantage of supply chain management
comes from understanding how information is used
within each value chain of the system.
• This can lead to the formation of entirely new
businesses designed to change the information
component of value-added activities.

The value system: interconnecting relationships between
organizations.

Activity Grocery Chain’s Value Chain Supplier’ Value Chain
Primary Activities
Inbound Logistics Analysis of buying patterns suggest Analysis of buying patterns can aid
items should be stocked at local grocery chains in better determining
stores, including amounts and demand, leading to better
optimum delivery times forecasting for both chain and
Operations Automated checkout can speed ckt. supplier
operations; may lead to reduced Analysis of buying patterns can
staffing of registers/ lower operating reduce ‘last-minute’ orders and
costs improve suppliers processing of
orders
Outbound logistics
Sharing analysis of buying patterns
by grocery chain can aid supplier in
scheduling
Analysis of b. patterns can aid
Marketing and Sales development of promotional strategies/
Suppliers may be able to offer
highlight customer preference economies of scale in its purchases
Service Automated checkout lanes shorten

customer waiting times Sharing analysis of b. patterns
allows better supplier service
Application of Value Chain Model

Secondary Activities
Shopping card can provide data to Shopping card can provide data
help grocery chain plan for trends and to help supplier plan for trends
Organization
demographic changes in its target and demographic changes in its
market. target market.
Human Resources Staffing needs for cash registers may

be reduces with automated checkout
Shopping card can provide data for Grocery chain can provide
Technology market research information to help supplier’s
marketing research
Grocery chain may be able to capture Supplier chain may be able to

Purchasing
more discounts for volume purchases capture more discounts for
volume purchases
Application of Value Chain Model (continued)

CRM and the Value Chain
• Customer Relationship Management (CRM) is a
natural extension of applying the value chain model
to customers.
• CRM includes management activities performed to
obtain, enhance relationships with, and retain
customers.
• CRM is a coordinated set of activities.
• CRM can lead to better customer service, which
leads to competitive advantage for the business.

The Resource-Based View
• The Resource-Based View (RBV) looks at gaining
competitive advantage through the use of
information resources.
• Two subsets of information resources have been
identified:
– Those that enable firms to attain competitive advantage
(rare and valuable resources that are not common place).
– Those that enable firms to sustain competitive advantage
(resources must be difficult to transfer or relatively
immobile).

CBIS consists of following applications
1) Management Information Systems.
2) Decision Support Systems.
3) The Virtual Office.
4) Knowledge Based Systems.
The fundamental work of CBIS is to manage
information in an efficient way such that it can
be utilized by the managers effectively to solve
problems.
Information is the method of efficiently manage the
Resources. There are basically five types of resources
that need to be managed by the managers.
1. Personnel
2. Material
3. Machines (includes energy and facilities)
4. Money
5. Information (includes data)
The first four resources are tangible i.e. they exist physically,
they are also known as physical resources. The fifth
resource type is not tangible hence called as conceptual
resource.
Managers use conceptual resources to manage physical
resources.
Management of resources.
1) Resources are acquired and assembled to make it available for use any time.
2) The manager always tries to maximize the usage of the assembled resources by
minimizing the idle time and functioning at peak of efficiency.
3) Finally the manager replaces those resources which have become obsolete or
inefficient.
Management of Information
1) The manager ensures that all the necessary data is gathered and then the
process of conversion of data to information is done.
2) The manager ensures that the information is received to proper individuals at
proper time and in proper form.
3) Finally the manager discards all those information which have become obsolete
and replaces those with the latest and useful information.
This entire process of gathering information, using it in the most effective manner
and discarding it in proper time is called Information Management.
The users of computer based information are
1. Managers.
2. Non managers.
3. Persons and organizations included in the firm.
In the early years of development of computers in information

management the users of the computers were clerical
employees who used computers in accounting area, billing, etc.
When the concept of MIS was developed then computers were
implemented for management support. Among other users
were the users outside the firm,like customers received
receipts, stock holders receiving dividend checks etc.
A system is a group of elements that are integrated with a common purpose of achieving a
common objective. An organization contains resources, they work hard towards achieving
particular objectives that are specified by the management.
System Elements. The basic elements of a system is as follows
1) Input element.
2) Transformation element.
3) Output element.
4) Control mechanism.
5) Objectives.
Objectives
Control
Mechanism
Input Output
Transformation
Figure 2.1 shows the diagram for system elements. The resources flow
from the input element, through the transformation element and to
the output element. A control mechanism monitors the
transformation process to ensure that the system meets the
objectives laid down by the management. The control mechanism is
connected with the resource flow by the means of the feedback loop
from output. The control mechanism compares the output with the
objectives and accordingly directs the input system to make the
necessary changes ( if required).
The various category of systems are
1. Open loop & Closed loop System.
2. Open Systems & Closed System.
3. Sub Systems & Super Systems.
4. Physical Systems & Conceptual Systems.
Input Output
Transformation
An open loop system does not have a feedback or control

mechanism. These are very simple systems that do not
require monitoring. For example simple space heaters.
In case of closed loop systems there is a feedback mechanism
that monitors the output with respect to objectives. For
example room air conditioners. Refer fig 2.1
Open systems are connected to their environment
through resource flows. These systems require the help
of systems in the environment to accomplish their
completion. For example, a centralized air conditioning
system requires a cooling plant for it to cool the entire
building, here the centralized air conditioning system is
an open system.
A closed system does not have connection with the
environment with which its connected. Closed systems
exist in controlled laboratory conditions. They are kept in
ideal conditions which are not possible in actual
A sub-system is a system that exists in another system. Its existence depends up on the
existence of its super-system. The sub-system contributes in the proper working of the entire
system. The proper functioning of the sub-systems ensure proper functioning of the entire
system. For example an Automobile system, it consists of many sub-systems like acceleration
system, fuel injection system, breaking system etc., every sub-system is responsible for the
proper functioning of the entire automobile system.
A super-system is a system which contains many sub-systems. The super-system is responsible
for monitoring the overall working of its sub-systems. The super-system decides the constrains
and resources to be put on its sub-systems. For example, a Central government system, it is a
super-system which has under its control the state government systems which form the sub-
systems.
Physical Systems use physical resources or tangible resources. A
physical system represents a working model for any conceptual
system. A physical system is completely practical oriented and
interacts continuously with the environment. For example, a
computer is a physical system which has practical
implementations and inter acts a lot with the users.
Conceptual Systems use abstract and conceptual resources.
Conceptual systems can make the physical resources work in a
proper manner. They basically consist of data, information and
mental concepts.
Both Physical and Conceptual systems require each other for
proper functioning and effective practical implementation
respectively.
The Initial Focus on Data
During the first half of twentieth century, when punch cards were used, firms
generally ignored the information needs of managers. The first computers were only
used for accounting applications. The name given to these early computer based
applications was Electronic Data Processing (EDP). Now a days the term Accounting
Information System (AIS) is used to describe those applications.
The New Focus on Information
In 1964, a new generation of computing equipment was introduced that influenced
strongly on the manner in which computers were employed. They were the
computers using the silicon technology. The concept of using computers as
Management Information System was promoted.The MIS initiated that the computers
should be applied for the management of information. This concept was adopted
slowly by larger firms.
The revised focus on Decision Support
A Decision Support System (DSS) is an information-producing system aimed at a
particular problem that a manager must solve and the decisions the manager must
take. The manager can be located any where, at any level in the organization. These
DSS were used widely in the organizations.
The Current Focus on Communication
During the time DSS evolved, interest was focused on another computer
application called Office Automation (OA) which facilitates communication and
increases productivity among the managers and office workers through the
use of electronic devices. OA got started in 1964, when IBM announced its
Magnetic tape and electronic typewriter (called Selectric typewriter). The
selectric typewriter could type the information stored in the magnetic tapes.
This lead to an OA application called word processing. The Office Automation
grew to such levels that applications such as video conferencing, e-mail,
desktop publishing etc started. In a collective term it was given the name
Virtual Office.
Potential Focus on Consultation
The development of computers had made it possible to perform tasks of
logical reasoning just like humans. The application called Artificial Intelligence
(AI) were developed. Now a days a subclass of AI known as Expert Systems are
growing which works as a specialist in a particular area. To solve the problems
using AI the applications were given the name Knowledge-based Systems.
From 1990s the use of knowledge-based systems were extensively used by
large firms.
Problem
Decisions Information
Problem
Solution
•Managers make decisions to solve problems, and decisions are made based on the available
information.
•Information is presented both in oral as well as in written form using information processors.
•The computer portion of the information processors contain each of the computer based
application areas :- AIS ( Accounting Information System), MIS (Management Information
System), DSS (Decision Support System), Virtual Office and Knowledge Based Systems. They are
collectively called CBIS ( Computer Based Information System).
•The CBIS collectively provides necessary information for problem solving.
The firms using computers realized that there was a need to form separate
organizational units of specialists who would be responsible for
implementing the systems. These specialists were known as Information
Specialists.
Information Specialists
Information specialists have the complete responsibility of developing and
managing the computer based systems in the firm.There are five main
categories of information specialists.
1) System Analyst.
2) Database Administrators.
3) Network Specialists.
4) Programmers.
5) Operators.
The concept of Traditional Communication Chain connects the Users, Information Specialists
and the Computer. This communication is named traditional because they have been
communicating with each other traditionally (since old times). From fig 2.4 it can be seen the
various levels in a communication chain. The functions of the members of a traditional
communication chain are as follows.
System Analysts
•They work with the users to develop new systems and in improving the present system.
•They are expert in defining problems and at preparing written documents on how the
computer will assist in solving the problem.
•They are expert in computer systems as they require to know the capabilities of the software
and hardware in which the solution of the problem is to be accomplished.
Database Administrators (DBA s)
•They work with users and system analysts to create the appropriate databases that would help
in effectively solving the problem.
•Once the database is created, the DBAs frequently monitor and manage these resources.
Network Specialists
•They work with systems analysts and users to establish the data communication networks that
would connect users with the required systems that are widespread.
•They combine the expertise from the fields of computing and telecommunications.
•Another form of Network specialists are called Web Masters who are expert on the World
Wide Web.
Programmers
•They use the documentation prepared by the System
analysts to encode the instructions.
•They require to be very conversant with the software they
are working on.
Operators
•They are responsible for handling the computing
equipments.
•They are expected to be able to handle mainframes to mini
computers.
•They monitor the consoles, manage memory libraries etc.
Database
Administrator
System
User Programmer Operator Computer
Analyst
Network
Specialist
In the late 1970s the trend of end user computing started growing. The users started
growing interest in developing their own computer applications. Following are the
reasons for the development of en-user computing.
1. Increase in Computer Literacy. During the early 1980s, good education programs
related to computers were conducted in colleges and institutions which caused a
computer awareness between the students. The management ranks, especially on the
lower levels started filling up with computer literate people.
2. The Information services backlog The situation of the information specialists became
critical during early 1980s when the work load increased beyond accepted limits as the
users started demanding more information services and so the specialist could not
cope up with the demands.
3. Low-Cost Hardware The market got filled up low cost minicomputers, so the users
could afford them at their homes making it easier for them to develop applications.
4. Prewritten Software Both the hardware and software companies produced software
that would do the accounting, word processing, facilitate development of applications
etc. made it easy for the users to rely more up on themselves rather that in
information specialists.
Chapter 4
Information System Hardware
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Information Systems 2/e
Our Agenda
• Computer Organization
• Input and Output Devices
• Primary Storage
• The Central Processing Unit
• Secondary Storage
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Learning Objectives
• Describe the main components of the
computer.
• List common input and output devices
• Describe how is data represented in a
computer?
• Describe how primary storage is organized.
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Learning Objectives (cont’d.)
• Describe the structure and function of the
central processing unit (CPU).
• Describe how is data stored and retrieved
using common forms of secondary storage?
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Computer Organization
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What is a computer
• A computer is a device that is
1. Electronic
2. Can store data
3. Can store and follow a set of software
instructions, called a program.
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Input Devices
• An input device accepts data from outside the
computer and converts it into an electronic
form the computer can understand.
• Examples include a keyboard, mouse, scanner,
digital pen, and digital tablet.
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Output Devices
• An output device converts data from an
electronic form inside the computer to a form
that can be used outside the computer.
• Examples include a screen, monitor, printer,
and fax.
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Primary Storage
• Primary storage, also called internal storage, is
the “memory”, or RAM, of the computer.
• Primary storage, which is temporary storage,
is dependent upon continuous electrical
power. Any interruption of electrical power
causes the contents of primary storage to be
lost.
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Central Processing Unit (CPU)
• The CPU, or processor, carries out the
instructions of the program. It contains
circuits that perform arithmetic and logical
operations.
• Data is transferred from primary storage to
the CPU with the results sent back to primary
storage.
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Secondary Storage
• Secondary storage, also called auxiliary
storage, stores data not currently being
processed by the computer and represents
permanent storage.
• Data is usually transferred to and from
primary storage.
• Examples include hard disks, floppy disks, ZIP
disks, CDROMs, and DVDs.
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Input and Output Devices
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Keyboards
• Most widely used input device.
• Possible physical problems include
– Repetitive strain injuries
– Carpal tunnel syndrome
• Ergonomically designed keyboards may
improve user comfort and efficiency and
reduce risk of injury.
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Pointing Devices
• Mouse
• Trackball
• Trackpoint
• Trackpad, also called a touchpad
• Cursor
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Other input devices
• Touch screen
• Pen input
• Graphics tablet
• Digitizer tablet
• Light pen
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Optical Scanning Input Devices
• Bar-code scanner
– Universal Product Code (UPC)
• Flat bed, or page scanner
• Automatic document feeder (ADF) scanner
• Optical Character Recognition (OCR)
• Mark-sense readers
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Magnetic Scanning Input Devices
• Magnetic strip reader
– Credit cards
– ID Cards
• Magnetic Ink Character Recognition (MICR) –
used at the bottom of all checks by the
banking industry.
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Voice Input Devices
• Voice recognition software
– Dragon Naturally Speaking
– Via-Voice
• Uses a microphone connected to the
computer and translates the spoken word to
text output.
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Digital Input Devices
• Digital cameras that produce photographic
quality images.
• Cameras connected to the computer for “live”
images.
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Screens, or Monitor, or CRT
• Key elements of a “screen” include:
– Pixels – picture elements arranged as a pattern of
dots.
– Screen resolution – the number of pixels that can
be displayed on a screen at one time.
– Refresh rate – the number of times per second
that screen “repaints” itself.
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Screens, or Monitor, or CRT (cont’d.)
• Types of monitors
– Traditional “tube” monitors, or cathode ray tube
(CRT).
– Flat-panel screens – most common type is liquid
crystal display (LCD).
– Screen projector used to display a computers
output on a large screen.
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Printers
• Printer classifications
– Impact printer
– Nonimpact printer
– Serial printers
– Line printers
– Page printers
– Letter-quality printers
– Draft-quality printers
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Desktop printers
• Ink-jet, or bubble-jet printer
– Typically 200 to 300 characters per second
• Laser printers
– Typically between 4 and 24 pages per minute.
• Dot matrix printer
– Typically between 200 and 300 characters per
second.
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High volume printers
• Line printers
– High end line printers can print as much as 3,600
lines per minute (at 60 lines per page, that is 60
page per minute) and can cost $50,000.
• Page printers
– High end page printers can print as much as 200
pages per minute and can cost $100,000.
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Other Output Devices
• Plotters
• Voice output devices – converting digitized
data into synthesized speech
• Sound output devices – speakers
• Specialized devices for people with disabilities
– can include large typeface screens, Braille
display devices, special pointing devices, or
headphones.
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Virtual Reality
• Virtual reality is the use of a computer to
produce realistic images and sounds in such a
way that the user senses that he or she is a
part of the scene.
• Examples include architectural design, home
remodeling, aircraft design, machine design,
and more.
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Primary Storage
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Primary Storage Structure
• Input data is stored in primary storage
(memory) after it is received from an input
device.
• Output data is stored in primary storage
before it is sent to an output device.
• Without sufficient primary storage, it may not
be possible to execute certain programs or
use certain data.
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Primary Storage Structure (cont’d.)
• Silicon chips – integrated circuits
• Volatile storage – dependent upon continuous
power
– Random Access Memory (RAM)
• Non-volatile storage
– Read-Only Memory (ROM)
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• Binary representation
– A combination of positive and negative electrical charges,
represented by 1s and 0s when written to represent a
character.
– One “charge” is called a bit.
– Eight bits are required to represent a single character,
called a byte.
• The 256 possible (28) binary combinations are
defined in character set.
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• Personal computer character set
– ASCII – American Standard Code for Information
Interchange
• Mainframe computer character set
– EBCDIC – Extended Binary Coded Decimal Interchange
Code
• Though each contains 256 characters, the definitions
are not the same, so a “translator” is required for
one machine type to “talk” with the other machine
type.
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• Storage locations of the “bytes” are called allocation
units each of which has a unique address.
• Storage capacities
– Kilobyte (KB) or 1024 bytes (210) – approximately 1,000
bytes, thus the “kilo”
– Megabyte (MB) or 1,048,756 bytes (220)
– Gigabyte (GB) or 1,073,741,824 bytes (230)
– Terabyte (TB) or 1,099,511,627,776 bytes (240)
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The Central Processing Unit
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Two Main Parts of a CPU
• Arithmetic-Logic Unit (ALU)
– May add, subtract, multiply and divide two
numbers. More complex operations are are
completed by using sequences of the four basic
operations.
• Control Unit
– Analyzes and executes instructions in a program.
Instructions are brought in one at a time from
primary storage.
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CPU Speed
• Early CPUs processed 8 or 16 bits at a time.
• Current CPUs process 32 bits, and some can
process 64 or 128 bits at a time.
• The “roadway” from primary storage to the
CPU is the bus. Higher bus capacities mean
faster computers.
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CPU Speed (cont’d.)
• Clock speed
– Measured in megahertz (MHz) or gigahertz (GHz).
– One MHz is one million cycles per second.
– One GHz is one billion cycles per second.
– Earliest IBM PCs ran at 4.77 MHz.
– Current PCs run at or above 1,000 MHz (1 GHz).
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Common CPUs
• Microcomputer • Apple/Macintosh
– Intel 4004 – Motorola 68000
– Intel 80386 – Motorola Power PC
– Intel 80486 – G3
– Intel Pentium • AMD
– Intel Pentium Pro
– Intel Pentium II
– Intel Pentium III
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Common CPUs (cont’d.)
• Minicomputer and Mainframe • Supercomputers
– Developed by the – Generally specific to a single
manufacturer within a “line” product
of products
– HP3000
– IBM System/390
– DEC Alpha
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Secondary Storage
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Types of Secondary Storage
• Magnetic Disk Storage • Disk organization
– Floppy disk – Disk
– Hard disk – Head (or side)
– ZIP disk – Track
– Allocation Unit
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Optical Disk Storage
• Compact disks (CDROMs)
– Capacity of approximately 600MB
• Writable Compact Disks (CD-RWs)
– Capacity of approximately 600MB
• Digital Video Disks or Digital Versatile Disks
(DVDs)
– Capacity of approximately 4.7GB to 17GB
depending on how it is used.
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Magnetic Tape Storage
• Magnetic tape has a capacity of 200MB to
over 40GB.
• Data transferred to the tape via a magnetic
tape drive.
• Data on a tape can only be read sequentially.
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Information Systems Hardware
Key Terms
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Key Terms
• Address • Central Processing Unit
• Arithmetic-Logic-Unit (ALU) (CPU)
• ASCII • Chip
• Backup Copy • Compact Disk
• Bar-Code Scanner • Computer
• Binary Digit (Bit) • Control Unit
• Byte • VRT
• CD-R/CD-ROM/CD-RW • Cursor
• Disk Pack
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Key Terms (cont’d.)
• Dot-Matrix Printer • Hard Disk
• Draft-Quality Printer • Impact Printer
• DVD/DVD-ROM • Input Device
• EBCDIC • Ink-Jet Printer
• Ergonomics • Keyboard
• Flat Panel Screen • Kilobyte (KB)
• Floppy Disk • Laser Printer
• Gigabyte (GB) • Letter-Quality Printer
• Gigahertz (GHz) • Line Printer
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• Machine Language • Massively Parallel
• Magnetic Disk Processing
• Magnetic Disk Drive • Megabyte (MB)
• Magnetic Ink Character • Megahertz (MHz)
Recognition (MICR) • Microprocessor
• Magnetic Strip Reader • Microsecond
• Magnetic Tape • Millisecond
• Magnetic Tape Drive • Monitor
• Mouse
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• Multifunction Printer • Page Printer
• Multimedia • Parity Bit
• Multiprocessing • Pen Input
• Nanosecond • Peripheral Equipment
• Nonimpact Printer • Pixel
• Nonvolatile Storage • Plotter
• Optical Disk • Primary (Internal) Storage
• Optical Disk Drive • Printer
• Output Device
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• Processor • Screen
• Program • Screen Projector
• RAID • Screen Resolution
• Random Access Memory • Secondary (Auxiliary)
(RAM) Storage
• Random (Direct) Access • Sequential Access
• Read Only Memory (ROM) • Serial Printer
• Scanner • Storage Location
• Terabyte (TB)
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• Terminal • Virtual Reality
• Touch Screen • Volatile Storage
• Track
• Trackball
• Trackpad
• Trackpoint
• Unicode
• Video Display Terminal
(VDT)
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Summary
• Computer Organization
• Input and Output Devices
• Primary Storage
• The Central Processing Unit
• Secondary Storage
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Chapter 5
Information System Software
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Our Agenda
• Software Concepts
• Application Software
• System Software
• Software Development
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Learning Objectives
• Explain in detail what programs and software
are.
• Identify the common application software
used in information systems.
• Describe some ways users can tell an
operating system what to do.
• Describe some of the capabilities of operating
systems.
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• Explain the main differences between the five
types, or generations, of programming
languages.
• Explain the difference between object-
oriented programming and traditional
programming, and identify one traditional and
one object-oriented programming language.
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• Identify programming languages that are used
with the Internet and the World Wide Web.
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Software Concepts
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Software Concepts
• A program is a set of instructions that tells the
computer what to do.
• Software can be a single program or a group of
programs needed to perform several functions.
• Simple programs may have a few hundred
instructions (lines of code) though most have many
more (several million).
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Application Software
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Individual Application Software
• Word processing
• Spreadsheet
• Graphics
• Database
• Browser
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Workgroup Application Software
• Groupware
• E-Mail software
• Information sharing software
• Electronic conferencing software
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Other Application Software
• Organizational application software
– Generally organization specific
• Interorganizational application software
– Electronic Data Interchange (EDI)
– Generally common to the participating
organizations
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System Software
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Operating System Concepts
• An operating system is a group of programs
that manages the operation of the computer.
• Three functions of an operating system
– Process management
– Resource management
– Data management
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Operating System Concepts (cont’d.)
• Organization of an operating system
– Most operating system programs are stored in
secondary storage.
– One operating system program is stored in a
section of primary storage. It goes by various
names – kernel – but generically called the
“supervisor”.
– The supervisor controls all activity in primary
storage.
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Using an Operating System
• Starting the computer is called booting which
transfers the “supervisor” from secondary
storage to primary storage.
• Connecting to a network or other multi-user
environment is called logging in.
• Detaching from a network is called logging
out.
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Elements of an Operating System
• User interface is the visual link between the
user and the software.
• Small pictures on the screen are icons.
• Graphical User Interface (GUI) uses
– Buttons
– Icons
– Menus
– Dialog boxes
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Capabilities of Operating Systems
• Multitasking is appearing to execute more
than one program at a time, though the CPU
can execute instructions from only one
program at a time.
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(cont’d.)
• Multi-user or Multiple-user programs permit
more than one person to use the program,
and data, at a time.
• One technique that is used with multiple-user
operating systems is time sharing. With this
technique, the users are each allocated a
small amount of time by the operating
system.
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(cont’d.)
• Two types of operating systems
– Batch operating systems where the first program
is executed and all data processed before moving
to the second program.
– Interactive operating systems allow user
interaction as the program executes. Most
personal computer operating systems permit user
interaction.
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(cont’d.)
• Virtual memory is supplemental primary
storage (RAM) or “real” memory where the
programs are too big for primary storage. It is
created on a secondary storage device, usually
the hard drive, and is generally temporary in
nature.
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(cont’d.)
• Virtual memory operating systems execute
large programs by dividing the program into
parts and transferring the necessary parts of
the program from secondary storage to
primary storage as needed.
• The transfer process does not require any
action by the user.
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110
Personal Computer Common
Operating Systems
• Microsoft Windows
• Microsoft DOS (and others)
• IBM OS/2
• Apple Mac OS
• UNIX
• Linux
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Multi-User Computer Common
Operating Systems
• IBM OS/390
• Hewlett Packard MPE (MultiProgramming
Executive)
• UNIX
• Network Operating Systems
– Novell Netware
– Windows 2000 Server
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Other System Software
• Utility programs
– Sort utility – rearranges data in a specified order
– Merge utility – merges two files into one
– Print utility – prints the contents of a file
– Copy utility – copies data from one device to
another
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Other System Software (cont’d.)
• Communications software – used for
communications between computers.
• Database management systems – used for
managing databases.
• Software development software – software
used to develop software.
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Software Development
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Programming Language Concepts
• What is a programming language?
• Why are there so many programming
languages?
• How do you select a programming language?
• What are the types of programming
languages?
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What is a Programming Language
• English is a natural language. It has words,

symbols and grammatical rules.
• A programming language also has words,
symbols and rules of grammar.
• The grammatical rules are called syntax.
• Each programming language has a different
set of syntax rules.
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Why Are There So Many Programming
Languages
• Programming languages have evolved over
time as better ways have been developed to
design them.
• Different programming languages are
designed for different types of programs.
• First programs were developed in the 1950s.
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How Do You Select a Programming
Language
• Is it designed for the type of program that

needs to be written?
• Is it available on the computer being used?
• Are trained programmers available?
• Is it easy to write programs in the language?
• Is the language efficient when the program is
executed?
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What Are the Types of Programming
Languages
• First Generation Languages
• Second Generation Languages
• Third Generation Languages
• Fourth Generation Languages
• Fifth Generation Languages
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First Generation Languages
• Machine language
– Operation code – such as addition or subtraction.
– Operands – that identify the data to be
processed.
– Machine language is machine dependent as it is
the only language the computer can understand.
– Very efficient code but very difficult to write.
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Second Generation Languages
• Assembly languages
– Symbolic operation codes replaced binary
operation codes.
– Assembly language programs needed to be
“assembled” for execution by the computer. Each
assembly language instruction is translated into
one machine language instruction.
– Very efficient code and easier to write.
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Third Generation Languages
• Closer to English but included simple

mathematical notation.
– Programs written in source code which must be
translated into machine language programs called
object code.
– The translation of source code to object code is
accomplished by a machine language system
program called a compiler.
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Third Generation Languages (cont’d.)
• Alternative to compilation is interpretation

which is accomplished by a system program
called an interpreter.
• Common third generation languages
– FORTRAN
– COBOL
– C and C++
– Visual Basic
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Fourth Generation Languages
• A high level language (4GL) that requires fewer
instructions to accomplish than a third generation
language.
• Used with databases
– Query languages
– Report generators
– Forms designers
– Application generators
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Fifth Generation Languages
• Though no clear definition at present, natural
language programs generally can be
interpreted and executed by the computer
with no other action by the user than stating
their question.
• Limited capabilities at present.
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Programming Languages
• Two broad groups
– Traditional programming languages
• Sequences of instructions
• First, second and some third generation languages
– Object-oriented languages
• Objects are created rather than sequences of
instructions
• Some third generation, and fourth and fifth generation
languages
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Traditional Programming Languages
• FORTRAN
– FORmula TRANslation.
– Developed at IBM in the mid-1950s.
– Designed for scientific and mathematical
applications by scientists and engineers.
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(cont’d.)
• COBOL
– COmmon Business Oriented Language.
– Developed in 1959.
– Designed to be common to many different
computers.
– Typically used for business applications.
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(cont’d.)
• BASIC
– Beginner’s All-purpose Symbolic Instruction Code.
– Developed at Dartmouth College in mid 1960s.
– Developed as a simple language for students to
write programs with which they could interact
through terminals.
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(cont’d.)
• C
– Developed by Bell Laboratories in the early 1970s.
– Provides control and efficiency of assembly
language while having third generation language
features.
– Often used for system programs.
– UNIX is written in C.
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Object-Oriented Programming
Languages
• Smalltalk
– First object-oriented language.
– Developed by Xerox in mid-1970s.
– Still in use on some computers.
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Object-Oriented Programming
Languages (cont’d.)
• C++
– It is C language with additional features.
– Widely used for developing system and
application software.
– Graphical user interfaces can be developed easily
with visual programming tools.
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Special Programming Languages
• HTML
– HyperText Markup Language.
– Used on the Internet and the World Wide Web
(WWW).
– Web page developer puts brief codes called tags
in the page to indicate how the page should be
formatted.
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(cont’d.)
• XML
– Extensible Markup Language.
– A language for defining other languages.
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(cont’d.)
• JAVA
– An object-oriented language similar to C++ that
allows a web page developer to create programs
for applications, called applets that can be used
through a browser.
– Objective of JAVA developers is that it be
machine, platform and operating system
independent.
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Information Systems Software
Key Terms
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Key Terms
• Assembler • Command
• Assembly Language • Compiler
• BASIC • Database Software
• Booting • Dialog Box
• Browser • Electronic Conferencing
• Button Software
• C • Electronic Messaging
• Software
C++
• • FORTRAN
COBOL
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• Fourth-Generation • Information Sharing
Language (4GL) Software
• Graphical User Interface • Interpreter
(GUI) • Java
• Graphics Software • Menu
• Groupware • Multitasking
• HTML • Network Operating System
• Icon (NOS)
• Object
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• Object-Oriented • Time-Sharing
Programming • User Interface
• Operating Environment • Utility Program
• Page • Virtual Memory
• Programmer • Window
• Programming • Word Processing Software
• Programming Language • XML
• Prompt
• Spreadsheet Software
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Summary
• Software Concepts
• Application Software
• System Software
• Software Development
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Network Concepts
Information System Networks

and
the Internet
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Network Topologies
• Star network – each node is connected to

each other node.
• Hierarchical network – organized like a
family tree.
• Bus network – each node is connected to a
single, common communications channel.
• Ring network – each node is connected to a
common channel forming a loop.
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Types of Networks
• Local Area Network (LAN)
• Wide Area Network (WAN)
• Metropolitan Area Network (MAN)
• Internetwork – connected networks
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Local Area Networks

and
the Internet
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Local Area Networks
• Local Area Network Structure
– Connection Topology.
– Media for communications channel.
– Usually either Ethernet or Token Ring.
– Require Network Interface Cards (NIC) in each
device on the network.
– Permits sharing of resources.
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Wide Area Networks

and
the Internet
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Wide Area Networks
– Connection Topology.
– Media for communications channel.
– Permits sharing of resources.
– Can include a Virtual Private Network.
– Often a combination or resources.
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Internetworks

and
the Internet
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Internetworks
• Connecting two or more networks using
– Bridges
– Gateways
– Routers
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The Internet

and
the Internet
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Internet
• Origins in ARPANET in 1969.

• Grew slowly at first and “exploded” in 1993 with
the adoption of the HTML standards for the
World Wide Web.
• Two protocols
– Transmission Control Protocol (TCP)
– Internet Protocol (IP)
• Most users require a relationship with an Internet
Service Provider (ISP).
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Internet Services
• Electronic Mail – E-Mail
• World Wide Web (WWW)
• Telnet
• File Transfer Protocol (FTP)
• Gopher
• Usenet or NetNews
• Chat
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Intranets and Extranets
• An Intranet is an Internet like network but
access is restricted to within a business or
organization.
• Firewalls are used to control access to an
Intranet.
• An Extranet permits controlled outside access
to an Intranet like network.
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154
Electronic Commerce

and
the Internet
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Hardware and Software
• Requires the business have a web site.
• The web software runs on a web server which
has special e-commerce software.
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156
Managing Stored Data
Personal Productivity
and
Problem Solving
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157
Managing Stored Data
• Individual information systems often

require that data be stored in secondary
storage in either data files or databases.
• Using a database to manage data consists
of three main functions:
– Creating a database
– Accessing a database
– Updating or changing a database
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158
Creating a Database
• Creating a database consists of two main
steps:
1. Entering a description of the structure of the
data and the relationships.
2. Entering the initial data in the database, a
process sometimes called populating the
database.
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159
Accessing a Database
• Accessing data means retrieving the data
from the database in secondary storage and
bringing it into primary storage.
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160
Updating a Database
• Updating a database involves three main
tasks:
1. Adding new data to the database
2. Deleting old data in the database
3. Changing data in the database
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161
Analyzing Data
Personal Productivity
and
Problem Solving
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Analyzing Data
• The most widely used analytical software is

spreadsheet software.
• A spreadsheet is an arrangement of data
into rows and columns that is used to
analyze the data.
• With spreadsheet software an individual
creates an electronic spreadsheet, or
worksheet.
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163
Analyzing Data (cont’d.)
• One of the main reasons for making changes
in a worksheet is to see what would happen to
other figures when changes are made. This
technique is called what-if-analysis.
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164
• P2P
• Client server arch. : Thick Client vs thin Client
• TIER1
• TIER2
• TIER3
Types of E-commerce
• B2B
• B2C
• C2C
Major Components of EC
• Shopping cart
• E-payment system

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Session 4-14

Porter’s Competitive Forces Model

• The threat of new entrants

MBA, LMTSOM, Thapar University 2

MBA, LMTSOM, Thapar University 3

MBA, LMTSOM, Thapar University 5

Threat of Substitute Products Depends on buyers’ willingness to substitute and the

Industrial Competitors Rivalry is high when it is expensive to leave and

Application of five competitive forces model.

MBA, LMTSOM, Thapar University 6

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MBA, LMTSOM, Thapar University 9

MBA, LMTSOM, Thapar University 10

MBA, LMTSOM, Thapar University 11

Service Automated checkout lanes shorten

Application of Value Chain Model

MBA, LMTSOM, Thapar University 12

Human Resources Staffing needs for cash registers may

Grocery chain may be able to capture Supplier chain may be able to

Application of Value Chain Model (continued)

MBA, LMTSOM, Thapar University 13

MBA, LMTSOM, Thapar University 14

MBA, LMTSOM, Thapar University 15

In the early years of development of computers in information

An open loop system does not have a feedback or control

Information System Hardware

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Information System Hardware

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