When computers first began moving into the business world in the late 1950s and early 1960s, the computing environment was best described as centralized, host-based computing. In this environment, the typical organization had a large mainframe computer (the centralized host) connected to a number of “dumb” terminals scattered throughout the organization or at remote sites. The mainframe did all the data processing for all the user terminals connected to it.
Computer Hardware
When computers first began moving into the
business world in the late 1950s and early 1960s, the computing environment was
best described as centralized, host-based computing. In this environment, the
typical organization had a large mainframe computer (the centralized host)
connected to a number of “dumb” terminals scattered throughout the organization
or at remote sites. The mainframe did all the data processing for all the user
terminals connected to it.
In the mid-1960s, Digital Equipment Corporation
(DEC) announced the development of the mini-computer. Smaller than the
mainframe, the mini- computer ushered in the era of distributed data processing
(DDP). In this new processing environment, an organization could connect one or
more minicomputers to its mainframe. Thus, the organization’s data-processing
function was no longer localized in a single, centralized computer (the
mainframe) but, rather, distributed among all the computers.
The commercial introduction of the personal
computer by IBM in the early 1980s revolutionized organizational data
processing. The personal computer carried the distributed processing concept
even further within organizations— it brought data processing to the desktop.
Also, it eclipsed the dumb terminal as the
terminal of choice by users. The commercial success of the IBM personal
computer led other computer manufacturers to develop their own personal
computers that were compatible with the IBM PC (these are usually described as
IBM clones or IBM-compatible computers).
One notable exception is Apple Computers, Inc.,
which developed its own line of non-IBM-compatible computers, namely the Apple
and Macintosh line of computers. The all- inclusive term microcomputer is
sometimes used to encompass all makes and models of desktop computers,
including the IBM PC (and its clones) and the Apple/ Macintosh computers.
It is important to note that, despite their
proliferation and ubiquity, personal computers have not replaced minicomputers
or mainframes. A large number of organizations still rely on these larger
computers for significant aspects of their day-to-day operations.
Computer Software
Computer software is the set of programs and
associated data that drive the computer hardware to do the things that it does,
such as performing arithmetic calculations or generating and printing a report.
Software typically comes in one of two forms custom-written application
programs or off-the-shelf software packages.
Custom-written application programs are usually
written by an organization’s own programming team or by professional contract
programmers to satisfy unique organizational requirements. Off-the-shelf
software packages are produced by software development companies and made
commercially available to the public. They usually fall in one of two main
categories, namely system software or application software.
The former includes such specialized programs
as operating systems, compilers, utility programs, and device drivers. While
these programs are important—and necessary— to the overall performance of an
information system (especially from the “machine” perspective), they are not
the primary focus of corporate information systems. Their basic functions are
more machine-oriented than human-oriented.
Application software is designed to more
directly help human users in the performance of their specific job
responsibilities, such as business decision making, inventory tracking, and
customer record keeping. From a software perspective, this is what corporate
information systems are primarily concerned with.
One of the very important information systems
functions is systems analysis and design, that is, analyzing a client’s
business situation (or problem), with respect to information processing, and
designing and implementing an appropriate—usually computerized—solution to the
problem. Information systems professionals who specialize in this area are
known as systems analysts. The process begins with a detailed determination of
the client’s information requirements and business processes. The solution
frequently involves some programming, as well as the use of an appropriate
application software package(s), such as a database management system (DBMS)
for designing and implementing a database for the client. It may also involve
some networking considerations, depending on the user’s requirements and goals.
Some typical organizational information systems that can result from a systems
analysis and design effort include the following.
Computer Networks
Together with computer technology, data
communications technology has had a very significant impact on organizational
information processing. There have been tremendous increases in the bandwidths
(i.e., signal-carrying capacities) of all data communications media, including
coaxial cables, fiber-optic cables, microwave transmission, and satellite transmission.
Wide area networks (WANs) provide access to
remote computers and databases, thus enabling organizations to gain access to
global markets, as well as increase their information sources for decision
making purposes. The Internet in particular— the worldwide network of computer
networks— has greatly facilitated this globalization phenomenon by making it
possible to connect any computer to virtually any other computer in any part of
the world. Advances in networking technologies have also enabled organizations
to connect their in-house personal computers to form local area networks
(LANs). This greatly facilitates organizational communication and
decision-making processes.