MGCR 331: INFO SYSTEMS
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. What would you like to do?
What language does Computer understand?
Bits( binary digitis like 0 or 1) and Bytes(eight bits)
What is a bit? What is a Byte?
- B stands for byte and b stands for bit
- 1) 1 Byte= 8 bits
- 2) 1KB= 2^10 byte
- 3) 1MB= 2^20 bytes
- 4) 1 GB=2^30 bytes1
- 5) TB= 2^ 40 bytes
- 6) 1PB=2^50 bytes1
- 7) EB= 2^6 bytes
- 8) 1ZB= 2^70 bytes
What are letters and symbols usually represented as?
They are usually represented by 8 bits(a byte) or 16 bits. 1) 8-digit system: ASCII2) Unicode (most commont UTF-16) *microprocessors typically process 32 or 64 bits at a time*
Roughly estimate how long it takes to transmit a 28,800 bits message on a 56 KB/second modem?
28,800 bits/8 (8 bit=1byte)= 3600 byte 3600/1024(1kb=2^10byte)= 3.5KB 5KB/56= 0.0625 seconds
You have 6,291,456 bits video, how long to transmit on a 56kbps(kb/second) modem?
- 768/56=13.78 seconds
What is a microprocessor chip (or central processing unit-CPU)?
It is the brain of a computing device and executes instructions of a computer program (allows it to run applications like web browser and word processors,etc)
What does Moore' law State?
Moore's law says that chip performance per dollar doubles every eighteen months so improvments in chip manufacturing process allows production of more powerful chips at cheaper prices
What are the two primary parts of the CPU?
- 1) Control Unit: interprets software instructions and literally tells the other hardware devices what to do, based on the software instructions
- 2) Artihmetic/logic unit(ALU): performs all arithmetic operations (for example, addition and subtraction) and all logic operations (such as sorting and comparing numnbers)
Does CPU always need instructions do it's job?
Yes, CPU will always need instructions to do their job because it doenst know whether to write data to hard drive or flash drive unless told and it doenst know whether to add or multiple unless told to. Instructions are mainly stored in RAM (random access memory)
Why are instructions for CPU stored in RAM?
Because it requires less energy and is much faster than harddrives (no moving parts like dvd's), so there are less failures.
What determines CPU speed?
- 1) Internal clock speed: measures how many instructions the processor can execute in one second
- 2) Bandwith: the number of bits that can be processed at one time by the CPU
- 3) Data Bus width and frequency: for exchanging data with RAM
- 4) Caching: RAM built directly into processor
- 5)Specific designs: graphic chips or math coprocessors (making floating point calculation faster)
What is a RAM?
- It is a chip-based storage device called random access memory and is temporary storage that provides fast access to data/instructions (volatile)
- Like microprocessor, they are semiconductor based devices(referred as solid state electronics with no moving parts) so there is fewer failures and require less energy
What are the two types of storage devices?
- 1) Conventional chip based: volatile so when power goes out all is lost that wasnt saved to nonvolatile memory. EG. RAM
- 2) Flash Chip based: non volatile so they hold data even when power is off but slower
- -> as moore law stats, in next 18 months, these chips would cost the same but will have twice as much storage
How does Moore's law relate to networking when it is meant to be applied to chip (semi conductors)?
The same price/performance is also being seen in networking devices as improvements in data receiving and sending devices can double the amount of data sent over optical fiber line every nine months
Name the five waves of computing
- 1) Mainframe computers: Room sized and limited to government and largecorporations
- 2) Minicomputers: refrigerator sized, affordable for small organizations and groups
- 3) PC: fast and cheap computer on every desk
- 4) Internet computing: cheap servers and tasks distributed over networks
- 5) Ubiquitous computing: embedding computing into eveyday objectors (sensors, RFID,smartphones)
What are the strategic implications of Moore's law?
- 1) Price/performance curve for many technologies is exponential so trends are advancing rapidly and what is impossible today in terms of cost and performance may be possible in the future2) Managers must regularly study trends and trajectory in technology to recognize opportunity and avoid disruptions
What did Moore' law influence (price elasticity)?
- 1) Inventory value (overproduction is deadly)
- 2) Depreciation accounting (faster depreciation)
- 3) Employee training and other managerial functions
- 4) Improves employee productivity
Why is Moore's law Possible?
The distance between the pathways inside silicon chips get smaller with each successive generation so electrons travel shorter distrances and are faster
Why do people say that there is soon going to be the death of moore's law?
- Because the Shrinking can't go on FOREVER because of three reasons:
- 1) Size: It can't get smaller forever as a chip pathway can't be shorter than a single molecule and the actual physical limite is likely larger than that.
- 2) Heat: The more tightly packed electrons are together they will heat up so much that they need to be cooled down or else they will inside their packaging
- 3) Power: the need to cool modern data centers draw a lot of power and that costs a lot of money and firms tend to spend more to power its server thant eh cost of the servers themselves
How are we extending the lifespan of the Moore law?
- 1) Multicore microprocessors: 2 lower powered processor cores will outperform a single speedy one and will be cooler and draw less power
- 2) Stacked or three-dimensional semiconductors: semiconductors are manufactured as a stack of multiple, interconnected layers isntead of a flat plane
- 3) Improving semiconductor material: increase component densitites by not using silicon
- 4) Optical computing: send signal via light instead of electricity
- 5) Quantum Computing: emply quibits( hold 0 and 1) that can be both zero and one at the same time
- 6) Supercomputers: massively parallel processing (many chips working together)
- 7) Grid Computing: imitate massively parallel super computing but it uses special software on common PC to enable them to work together on a common task
When using multicore processors, what changes do you have to make for developers?
To take full advantage of multicore processors, apps need to be rewritten to split up tasks so that smaller portions of a problem are executed simultaneously inside each core.
Some problems are easy to split up but some are linear where use of multiple brains may not help much.
Why are companies begining to offer chip-based nonvolatile memory as alternative to laptop hard drives?
Because these chips are solid state electronics with no moving parts so they are less likely to fail and draw less power. These computer chips are also referred to as semi-conductors!
What is a super computer and how is it different from multicore?
Super computer are computers that are among the fastest of any in the world at the time of their introduction that have multiple multicore chips.
What is modern supercomputing and how is it different from the normal supercomputers?
Modern computing typically done via a technique called massively parallel processing
where computers are designed with many microprocessors
that work together simultaneously
to solve problems
- They used special electronics and software to handle the massive load but the processors themselves are very generic
- EG: using 2200 ps3 or 1,110 Mac computers
What is Grid computing and how is it different?
Grid computer further transforms the economics of supercomputing by placing special software on its existing PCs or Servers that enable them to work together on a common problem which saves a lot of money.
What is Software as a service (SaaS) and cloud computing?
- Saas and cloud computing are new sevice-based computing models that replace traditional software and hardware that run inhouse with services that are delivered onlinemoore's law will likely hit it's physical limit so new waves of innovation might soon appear
What is the dark side of Moore's law?
- 1) Rapid obsolescence means the creation of ever-growing mountains of discarded tech junk, known as electronic waste of e-waste.
- 2) Companies send the e-waste abroad which is cheaper but it is processed in dreadful conditions
- 3) E-waste management is really difficult to monitor, track and loopholes are rampant
What is a software and what are the two types?
Software is a computer porgram or a collection of programs that you use to give it a precise instruction.
- The two types are
- 1)System software: primarily operating system so it is the software that controls the computer hardware and establishes standards for developing and executing applications
- 2)Application software: software with instructions that fulfill user's specific information processing ends.
What is the problem that developers have with application software? How does a company take advantage of this difficulty?
- The problem is that different applications use the language of different OS so if you try to download microsoft excel to use on a mac os, it won't work becuase they don't use language that mac os recognized, instead it uses windows.
- You can take advantage of that like with bootcamp for mac.
What are hardware/software layers? What is their use?
They allow computer customization that businesses demand. Understanding how they relate to each other helps you make better decisions on what options are important to your unique business needs and can influence what you buy as well as for everything from competitiveness to cost overruns to security breaches.
What is an operating system? There are two types of OS developed by firms, what are they?
- It is one of the two types of software (the other one is application software)
- An operating system uses a common set of of commands that oeprators can use to create applications and provides some basic functionality to maek things easeier (not through scratch).
- The two types are OS developed by firms for
- 1) For Own hardware: PC and related hardware, mac, wii OS
- 2) To sell to others: Microsoft to dell, atm machines, google android
Why do we want OS to provide a common set of commands to programmers?
It reduces complexity, enforces consistent look , fell and functionality across programs made for an OS (lower training costs and errors).
Application programs for different OS differ in functionality and looks (GUI)
What is a firmware? Is it part of the operating system?
Firmware is an operating system installed on the chip (like ROM, read only memory) of a smaller special purpose device like OS in a PC is stored on a hard drive, there is also a baisc OS(firmware) in PC that helps it start up (booting)
What is an embedded system?
It is similiar to firmware in that it is an operating system installed on the chip but may have special purpose software that make the device smarter like sharing usage information or diagnose problems
Explain application software
- It is one of the two types of software (the other one is system software)
- Application software performs the work that users and firms are directly interested in accomplishing
- There are two different types:
- 1) Desktop software: installed on personal computer where tyically supporting tasks performed by a single user
- 2) An enterprise software: address the needs of multiple simulataneous users throughout the organization
What are the needs of an enterprise? And how do you address these needs?
- They have to carry out many complex business processes that involve significant amounts of human and material resources
- They have to take care of all interactions within the firm like interaction with customers, suppliers and employees within the firm
- Enterprise systems such as ERP, CRM and SCM address these needs
What are the problems of IT in the enterprise?
- 1) Incompatible information systems
- 2) Inconsistent operating practices
- 3) Info is fragmented and stores in a myriad of places
- 4) Maintence of legacy system is a nightmare
- 5) Rationalization is difficult
So What does Enterprise System do to fix all the problems in IT for a company?
- They seamlessly integrate all the info flowing through a company and at its core a single comprehensive database is used that feeds data into the various modular applications
- The advantage is that now everyone from different departments can talk to each other
- The impact of this is the retiring of antiquated systems
Name the four different enterprise systems.
- 1) Enterprise Resource planning (ERP) system2) Customer realtionship Management (CRM) system3) Supply chain management (SCM) system
- 4) Business Intelligence (BI) systesm
What is ERP?
- ERP( enterprise resource planning) is a commerical software system that automate and integrate many or most of a firm's business processes so it tightly integrates the functional areas of the organization and enables seamless information flow across the functional areas
- Before it was hard to communication between departments and it was always inconsistent but not there is one central database that stores all modules & sub-apps that are connected stimutaneously
What is the realtionship between ERP and other enterprise systems?
- ERP is the internal process integration so its the interface between CRM and SCM
- SCM deals with the buy side so it interfaces with suppliers
- CRM dears with the sell side so it interfaces with the customers
- Business intelligence system enables collaboration and monitoring of ciritical data across the three systems
What is CRM?
- It is customer realtionship management which manages and uses information about customers to gain insights into their needs, wants, and behaviors in order to serve them better
- Its objective is to attract, retained current & potential customers
Whatare some major application areas for CRM?
- 1) Sales: Sales force automation(SFA) feature makes salespeople more productive
- 2) Marketing: application support marketing campaign & provide opportunities for corss-selling(buy printer with computer), up-selling (buyer more expensive) and bundling
- 3) customer service: application provides info and tools to make desk and customer support staff more efficient.
What is SCM?
- It is supply chain management system that can help a firm manage aspects of its' value chain (raw material to delivery for finished products/serices at point)
- It includes planning, organizing and optimizing the supply chain's activities (coordinate supplier and distributor, track inventory and info, monitor suppliers, sharing product concepts with suppliers,etc)
What are the three segments of the Supply chain structure and component?
- 1) Upsteam: sourcing or procurmenet from external suppliers ( going above you- immediate suppliers)
- 2) Internal: Packaging, assembly or manufacting
- 3) Downstream: distribution of final product/service
What is the role of SCM in supply chain?
- It's role is to reduce friction (time, cost and inventory) along the supply chain
- It also reduces uncertainty and risks+ increases customer satisfaction
What is business intelligence(BI) systems?
- It is a system that uses data created by other systems to provide reporting and analysis for organizational decision making.
- It is a variety of software applications used to analyze an organization's raw data (OLAP, Datamining, reporting, querying)
- Data cleanness and conssitency is imp for successful BI
What is the database management system? (DBMS)
- It is sometimes referred to as database software that you use to create, maintain and manipulate data
- Most enterprise software works in conjunction with a database management system (DBMS)
- It is hugely valuable for a company's efficiency as it allows to update a single set of data that shows reports about the firms sales and profits and can automatically do everything and send messages w/o any human interactions, reducing time and errors
Compare the risks and rewards of packaged enterprise system (like ERP) of making it or buying it
- 1) Developing own ERP system form scratch (MAKE): It allows you to mix and match components from diff software vendors which allows you to customize with the needs of the firm but it can be very expensive for development and maintence cost and it is time consuming
- 2) Buying ERP software package(BUY): Since more vendors's ERP software is flexible enough that you can install some modules w/o buying a whole package, it allows for faster implementation with lower IT overhead which can be built on industry's best practice (instead of using your new and untested version)
- However it is bad because it may not always be an exact fit with the organizaiton and will require costly modifications to preserve process that provides their competitive edge
What is the total cost of ownership? (TCO)
- It says that technology costs go way beyond the price tag since a lot of managers would ignore for these technology costs and only look at purchasing price
- TCO is all the costs asosociated with the following aspects of software system (eg. training, support, maintence, security, testing)
Why do technology projects fail?
- One of the reasons, technology companies tend to fail is because they only look at purchasing prices and overlook the extra costs that they don't have money for.
- It can also be because technology is immature or project management is unclear/unrealistic, badly defined, poor project leadership, sloppy, unmanaged risk and project complexity or commercial pressure
How do you solve the problem that says that 1/3 of technology projects fail? How do you solve for quality improvement of these projects?
- CMMI which guages an organizations process maturity and capability in areas critical to developing and deploying technology projects and give them the best practices and guidelines to assist quality and process improvements
- By setting guidelines on how you should be managing the whole project and test how good your software processor are compared to other industries.
When writing software, what are the different programming languages? (and what exactly is programming languages)
Programming languages provide standards, syntax, statements and instructions to write software like C++, Java, SQL, scripting, HTML
What is the difference between compiler and interpreter? Why do you need them?
- Compiler: IDE (an application that includes text editor, complier, debugger and other tools to write programs) can do this; It translates the entire program
- Interpreter: Java can do this by translating the program line by line.
- You need them because a program written in high lvel language (readable by humans) need to be converted/compiled in low-level instructions(bits) that can be read by microprocessor
What is the difference between C++ and Java?
- C++ and others generally use OS commands so programs can run on only that OS system configuration which is not very good because you would have to make multiple versions of angry birds to be able to play on different platforms<- takes advantage of OS system( PC or MAC)
- Java code writes using special java command so it can run on any machine that has JVM (software layer tha interprets java code for that machine's configuration) although it is slower than compiled program because it uses particulat commands so all computers can run it
What are scripting languages?
- They generally execute within an application and are interpretered (within applicaiton rather than compiled) so it is slower!
What is distributed computing?
- It allows systems in different locations to communicate and collaborate to complete a task hence it can create entirely new ways of doing business and can yield enormous efficiencies in speed, error reduction and cost savingsIt is more realiable by not having a single point of failure like google has computers all over the world so if there is any problems, the data an be auto transfered to another point of the world
- If you expose yourseld & spread yourself all over; you are securing yourself from risks
What is an application server?
It is a category of software that houses business logic for distributed system (eg. making requests to another server in another organization or returning a calculation)
What is a client server system?
- They are like things like the World wide web and other distributed computing services that refers to two pieces of software, where a client makes a request and a server that receives it, attempts to fulfill the request.
- A server is used in 2 ways: hardware context it is a computer that has been configured to support requests from other computers and software context it is a program that fulfilles the request
- Client is a computer and related software program that sends request to server and recieves results
What are WWW Standards?
- HTTP governs requests and responses between the browser and the webserver application program
- HTML governs the structure of the HTML webpage
What is the multi-tiered distributed systems?
They are application servers that store business logic and provides access to web services (connect to another company's server)
What are web services and what can they do?
- Web services allow automation which results in fewer errors, time saving and cost reductions which creats a whole new way of doing business
- Web servers defines and publishes API that gives standard methods that other programs can use to request a webservice to perform a task. It is very convenient because they give standard that specify kinds of response that calling client can expect back
What are APIs?
- Application programming interfaces are programming guidelines published by firms that tell other programs how to get a service to performa a task, such as send or recieve data
- FB uses API to create apps so they can know who are your friends so you can play with them and send them messages
What are service-oriented architecure(SOA)?
- They are robust set of webservices built around a firm's procedures and processes that allows processes to be accessed via the internet as a service
- SOA is for building business processes that are plug and play so any business unit can plug into your software
- SOA hides complexity and emphaizes autonomy & simplicityIt is the IT structure that makes it possible to construct business applications using web services
What is EDI?
- It is electronic data interchange and is a set of standards for exchaning info between two computer applications (same as sending electronic equivalent of structured documents between diff organization)
- It is the transfer of structured data, by agreed message standards, from one computer system to another.
- The advantages of it is that it reduces data entry and error costs faster, which reduces cycle times
- Disadvantages include cost and that it is inflexible.
What is XML?
- Extensible markup language is replacing EDI in terms of specifying data standards because XML is easier than EDI and enables mash up applications because it's cheaper and more flexible and some people use it instead of HTML (create XML and convert to HTML)
- It converts things so other computers can understand it as well like french keyboard can translate data entry for english computers(set of standards for common data elemnts that can be sent btwn diff kinds of computers, application and organizations)
- It is a tagging language used to identify data fields that need to be shared across applications/computers
- It is also used to design websites
What are mashups for?
- Mashup applications include combining data from two or more sources to create new functionality
- It uses open APIs and data to produce novel resultsIt is really efficient because you don't need to create everything from scratch
What should managers do to prevent technology projects from failing?
- Managers need to undersand that complexity involved in their technology investment and that achieving success rarely lies in the strength of the technology alone however infomation system can improve the overall quality
- Inquire about the development methodologies and quality programs used to support large scale development projects
- clear business goals and business metrics and learn to follow bluepinted used by successful efforts instead of trying to reinvent the wheel and risk failure
What are Structured query language(SQL)? What is Database administartor(DBA)
- SQL: A common language used to create and manipulate databases
- DBA: Job title focused on directing, performing or overseeing activities associated with a database or set of databases
What are problems that arise if data is nor organized/structured properly? *unnormalized*
- 1) Insertion anomaly: can't insert info that is independent of another object w/o having to artifically insert some info about the other object (eg. adding a new customer before it is ordered)
- 2) Deletion anomaly: loss of info when a piece of info abou a diff object is deleted (e.g: deleting an order which deletes customer/book)
- 3) Update/modification anomaly: change info about an object multiple times (e.g changing data in a row...forces change to another row because of duplicationt, aka book prices)
What is a realtional database approach?
It is when you create a series of logically related two dimensional tables to store the information
How do you connect tables together through relational database approach?
- You use keys
- 1) Each table should have a primary key which is a field/attirbute that uniquely identify each record/entity on the table
- 2) Tables are connected through a foreign key which is a field that is a primary key in one table and appears in a diff table
What is normalization?
- It is the method for analyzing and reducing a relational database to its most streamlined form, so from one big table into 3 small ones that tend to be more efficinet and less congregated together
- Minimum redundancy, max data integrity and best processing performance
when combining data, should you use spreadsheet to store data or use database?
- Spreadsheet is good for small amounts of data, uncomplicated data relationship, modeling, calculating or graphing and what if, sensitive analyses
- Database is good for lots of data, data linkage, complex relationship, reporting, extracting and gathering or exceptions and summaries
Where does all this data come from?
- 1) Different internal systems: Enterprise software: ERP,SCM, CRM & TPS or OLTP
- 2) Surveys : can tell you what your cash register can't and get feedback; many CRM has survey capabilities
- 3) External sources: data aggregators- collect and resell data and click stereams, third party information
- 4)RFID : Instead of scanning, RFID tags that you put everything in a shopping cart and these tags will communicate with reader so the person will know how to charge them
What are the type of data storage for enterprise software?
- 1) Relational databases(DBMS): centrally stores the data generated from daily transactions
- 2) Transaction Processing (TPS) systems : store info that comes from day to day transaction of business so registering the transaction that happen in real time and records data and updates regularl as transactions are updated
What does it mean to be data rich but information poor? and why is this the case that some company's are data rich but info poor?
- Some companys have a lot of data but don't know how to get the data into a form where it can be used, analyzed and turned into information
- 1) incompatible legacy system: inhibit data sharing; different formats and conventions for storing data
- 2) opeartional data stored in relational database are not efficient for extensive data analysis and summaries
What is the solution for being data rich but info poor?
- 1) Use data warehouse which are designed to collect historical data and organize in multidimensional structure to handle the queries required to discover trends and aid data analysis
- 2) Use OLTP(online analytical processing) which is designed for extensive data anlysis and gathers data from TPS systems to support decision making and provide answers to business and management queries but it requires large volume of data and require more system resources
What is a data warehouse? What about Data marts?
- Data warehouse is a specialized databased optimzed for OLAP systems and uses multidimensional data structure (data cube) The data is a warehouse is nonvolatile and consistent
- Data marts are lower-cost scaled down versions of a data warehouse that emphasizes access and usability for a specific purpose
What is OLAP?
- OLAP is called online analytical processing and is usually sourced from standard relational databases but its calculated and summarized in advance, across multiple dimensions w/ the data stored in a special database called a data cube and this extra makes it a lot faster
- Manager using OLAP can quickly explore and compare data across multiple factors
Difference between OLAP and OLTP?
- OLAP has sources of data from multiple systems including OLTP while OLTP is a backend system that directly records data
- OLAP's purpose is to support decison making and answering queries while OLTP carries out day to day business functions
- OLAP run on huge space and CPU resources while OLTP requires less system resources
- OLAP's execution speed is faster, but takes a long time to run complex queries while OLTP is slower but generally takes less time because the queries are simpler
What are some of the benefits of Data Warehousing?
- 1) end users can access data quickly and easily
- 2)They have a consolidated view of org data
- 3) They can conduct extensive analysis with data in way that may not have been possible before
- 4) Allow OLAP analysis of enterprise summary and detailed info
- 5) Set the stage for effective data mining, which can process enterprise data for hidden or unknown intellingence (predictions for future)
What are some challenges of data warehouse?
- 1) expensive to build and maintain (licensing, staffing, infrastructure and costs millions to make)
- 2) Aggregating and incorporating data from legacy system is difficult
- 3) unwilling to share because of confidentiality issues, politics or possibility of data cleaning that can lose real info
- 4) data cleaning may modify the original information
When deciding on designing, developing and deploying, maintaining a system, what do you need to look out for?
- 1) Data relevance: what data do we need to meet current goal?
- 2) Data sourcing: where and how do we get the data we need?
- 3) Data quantity and quality: how much data is needed and how accurate/complete/free of errors does it need to be?
- 4) Data hosting: Where will the system be housed?
- 5) Data governance : how will you manage this data?
What is the business Intelligence Toolkit? What are the different types?
- Business intelligent and analytical is what turns data into information
- The types include: query and reporting tools (containing canned reports, ad hoc reporting tools and dashboards) and data mining software/tools.
explain the query and reporting tools for the BI toolkit
- 1) canned reports: provide regular summaries in a predetermined format
- 2) ad hoc reporting tool: allow users to create custom reports on as needed basis by selecting fields, ranges, and other parameters
- 3) dashboard: display critical indicators that allow maangers to get a graphical glaance at key performance metrics
- 4) OLAP
Explain data mining for the BI toolkit
- Data mining finds hidden patterns from large data sets and use statistical techniques as well as artifical intelligence techniques
- EG: credit card fraud, recommendation systems, catalog marketing
Give some key areas where business leverage data mining.
- 1) customer segmentations: which is most valuable
- 2) marketing and promotion targeting: which products people buy together and how to cross sell
- 3) customer churn: Predict which customers will leave to competitor
- 4) insurance claim analysis: discover patterns of fraudulent transactions
- 5) market basket analysis: identify what products are likely to be bought together
What are the two critical conditions that must be present for data mining to work?
- 1) The organization must have clean, consistent data
- 2) The data should reflect current and future trends
Explain Data mining Prowess for Walmart
- Wal-mart mines its data to get the right product mix from having too much or too little inventory
- They tighten operational forecast to predict when they need to buy more flashlights during a huricain season, etc
Explains some trends in data
- Data used to be tightly guarded asset
- However more and more is available now a days and more and more aspects of our lives is available online (data is being given away for free from users)
What is Open Source Software?
It is the opposite of conventional software firms that do not provide the source code of their commerical product and treat their intellectual property as closely guarded secret OSS is openly shared so anyone can look at the source code, cahnge it and even redistribute it and it is generally free
What is LAMP ?
- It stands for linux, the apache web server, mysql/oracle and P for any programming language that starts with P
- Open source is very big online and you often hear about it from web programmers and open source advocates refer it to the LAMP stack
Why choose Open source?
- It is free
- It is reliable because there are many eyes to fix errors quickly
- There is more secuity because there are more people so more people to ensure that loopholes are closed
- It is scalable so it can run onf low end and high end hardware or different devices
- It is very agile because vendors who use OSS can skip a whole segment of software development so they can reach the market faster compared to making it from scratch
Why give OSS for free?
- 1) makes more computing options accesible to smaller firms by lowering cost of computing
- 2) more reliable, secure computing lowers costs for all users
- 3) savings can be channeled for innovation or other more competitive initiatives
- 4) commericial interest in OSS has sparked an acquisition binge
- It helps the followers more than the leaders because OSS eat from their revenue; but since users are moving to OPEN source, big companies also decided to buy out these companies
How do you make money on Open source? What do they gain?
- 1) They can make money on selling support and consulting service
- 2) They sell advanced hardware, so they can give software for free in exchange for people to buy the hardware
- 3) Sell proprietary software to augment or optimize OSS (sell special software to make it better/complementary products)
- 4) Steal customers from a stronger competitor (oracle)-> least imp strategy
- 5) reputuation mechanism
What has Success of OSS lead to?
- IT has led to standardizaiton cause before eveyr major hardware maufactuer made their own system so they were fractured and incompatible markets with each other which made it hard to attact 3rd party vendors to write apps
- Now all major hardware firms run linux so a large unified market attracts software developers who would have just written for windows
What are some drawbacks of OSS?
- 1) the complexity of some OSS product: It is difficult ot install and maintain because it's free so it is not as user friendly and the TCO ( total cost ownership )is higher since cost built up to maintain the software
- 2) concern about its ability to provide support or product improvement since there is no support so they have to rely on uncertain community of volunteer for help
- 3) Legal and licensing concerns: could it violate software patenets or use of unauthorized proprietary code and also the varying types of OSS licensing agreements is confusing
What is cloud computing? What are the two types?
- It is the access of service over network, pay rent to vendor to manages the sofware and/or hardware
- It replaces computing resources like H/W or S/W with services provided over the internet
- The 2 types are
- 1) software cloud: Software as a service so software-replacing service is delivered online
- 2) hardware cloud: Infrastructure as a service and Platform as a service so a firm develops it's own app/software but runs them over the internet on someone else's hardware
What are the implications of cloud computing across the industry
- Financial future of hardware and software firms( google
- doc vs microsoft work)
- Cost structure and innovativeness of adopting (renitng it out like a service which makes it easier for small companies to have services, etc and it is more of a variable than fixed costs)
- Organizational skills sets likely to be more valued by employers ( you need less poeple who know how to work hardware and more peopel who know business)
What is SaaS? (on Demand Software)
- You have no software to install since u are renting it and not buying it
- Users can use enterprise application like CRM via network so isntead of developing your own with millions of dollars, you use one that is already made and immediately up and running
- SaaS vendors own the software and run it on computers in its data center and rents i to clients (you are only concerned with the functionality)
What are the advantages for Clients in using SaaS?
- 1) lower costs: no need to maintain it and pay expenses for maintence fees
- 2) financial risk mitigation: start up costs are lower and you dont have a huge fixed cost
- 3) faster deployment/implementation times: does not take long to have a good SRM software
- 4) variable costs: you pay for what you use
- 5) scalable: if u are a small company and will grow, you don't have to change your whole set of hardware and software, instead you just pay for what you consumer
- 6) higher quality service: vendor has expertise from its entire client base so it can getter service you than your own SRM software
- 7) remote access: you can acess it from anywhere it the world because it's in the cloud
What are the advantages for vendors?
- 1) Limiting development to a single platform: instead of having to create diff versions of OS, you only have to install software on your own machine
- 2) tighter feedack loop w/ clients which leads to more innovation
- 3) Ability to instantly deploy bug fixes and product enhancements to all users: no need to tell people to install it
- 4) Lower distribution costs: you don't have to make cds or anything to let them install it
- 5) accessibility to anyone with internet connection: it is in the clouds so you can reach many people
- 6) greately reduces software piracy: selling service.. you can't just illegally download a service
What are some disadvantages or risk of SaaS ?
- 1) dependency on one single vendor: if the vendor goes out of business, you are doomed
- 2) users are forced to migrate to new versions: which can cause training cost and have to learn and understand it again
- 3) reliance on network connection: which is slower and less stable and can go down, so your business will also be down
- 4) data assets stored off site: securit and legal concerns
- 5) limited configuration, customizaiton and system integration: you cannot customize for each person or integrate new with current system
- 6) user interface often less sophisiticated: since it is online and not desktop based app
- 7) ease of adoption: lead to pockets of unauthorized IT use
What is SaaS vendor's Revenue models?
- 1) usage based pricing model: like monthly subscripton
- 2) Offer free service: but put advertising
- 3) Upgrade: promote an upgrade or a premium version for additional fees
What is the hardware cloud?
- The hardware cloud is a cloud computing model where the service provider makes computing resources (hardware, storage and infrastructure) available to customers on a as-needed basis (renting hardware instead of software)
- Examples are IaaS and PaaS
What is cloud bursting?
- When you only use the cloud to provide for excess capacity during periods of spiking demand (hybrid model) so you don't give up on your hardware, you just use it when you have an overload in demand
- It is a scalability solution that provides service when there is an overflow to deal with black swan events
- Black swan events are unpredicted but highly impactful events
Before deciding on hardware clouds and SaaS, what should a firm do?
- 1) Firms need to do a thorough financial analysis comparing the capital and other costs of owning and operating their own system over tie against the variable costs over the same period for moving portions to the cloud
- 2) firms should enter the cloud cautiously, particularly where mission-critical systems are concerned, you have to think twice before going to the cloud in case you have a very imp system
What impact did the cloud have in the tech industry?
- 1) it changed the competitive dynamics of the hardware, software and consulting industries
- 2) Alters the margin structure for many in the computing indsutry (margin for internet)
- 3) accelerate innovation, therefore changing the desired skills mix and job outlook for IS workers
- 4) decreases the barriers to entry by lowering the cost to access powerful systems and software (anyone can start a business)
What is virtualization in cloud?
- It is when a technology can make a single computer act like seperate ones by allowing diff programs to run on a single computer like many computers in one machine which allows them to provide cloud services
- small comparements in memory that each behave as a separate computer with its own OS and resources to create a huge pool of computing resources that can be allocated as needed
- IT consolidates computing resources and creates additional savings and efficiencies
- It makes pulic and private cloud(your own hardware but it does not have to be in your headquarters so you put it in cheaper places but get data from your own hardware) computing possible
How could you decide if you want to make, buy or rent your service/infrastruce or platform? What are the factors you should consider/think about?
- 1) competitive advantage: do you lose it if you buy it off someone else?
- 2) security: If you are concerned about safety, you shouldnt rent it
- 3) legal compliance: finance industries are governed by legal issue so they should think twice about it
- 4) skills, expertise and available labor: if you don't have experts to create it, you have to rent it
- 5) Cost: do you have the money to do it?
- 6) time: if you rent, is it immediate and instantaneous?
- 7) vendor issues: do you trust the vendor?
What is the motivations for criminals?
- 1) Steal data: identity fraud, illegal financial transaction or they can get your bank number, social security number and get a loan on your behave
- 2) extortion: demand pament in return for not attacking (DDos), a firm's IT system or for not hacking firm's data
- 3) Hide trace of criminal act: compromise computing assets for illegal acts (spamming, click fraud)
- 4) corporate espionage (rival, foreign government)
- 5) terorism and cyberwarfare
- 6) pranks
- 7) protests
- 8) revenge
What would you like to do?
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