Lect. 5 - MIS and business analytics.pdf
- 1. Information system and Business Analytics Dr. Usman Javed Riphah International University, Faisalabad.
- 2. Info.Technology Infrastructure • Defining IT Infrastructure • Evolution of IT Infrastructure
- 3. IT INFRASTRUCTURE • Information technology (IT) infrastructure as the shared technology resources that provide the platform for the firm’s specific information system applications. • An IT infrastructure includes investment in hardware, software, and services – such as consulting, education, and training – that are shared across the entire firm or across entire business units in the firm. • A firm’s IT infrastructure provides the foundation for serving customers, working with vendors, and managing internal firm business processes.
- 5. Defining IT infrastructure • An IT infrastructure consists of a set of physical devices and software applications that are required to operate the entire enterprise. • An IT infrastructure is also a set of firmwide services budgeted by management and comprising both human and technical capabilities. • Computing platforms: computers, and laptop, and mobile handheld etc. • Telecommunications services: provide data, voice, and video connectivity to employees, customers, and suppliers • Data management services: store and manage corporate data and provide capabilities for analyzing the data
- 6. Defining IT infrastructure • Application software services, including online software services such as ERP, supply chain, etc. • Physical facilities management services that include physical installation • IT management services that plan and develop the infrastructure • IT standards services that providing the firm with policies • IT education services that provide training in system use to employees • IT research and development services: providing the firm with research on potential future IT projects
- 7. EVOLUTION OF IT INFRASTRUCTURE • The IT infrastructure in organizations today is an outgrowth of over 50 years of evolution in computing platforms. • There have been five stages in this evolution, each representing a different configuration of computing power and infrastructure elements.
- 9. General-Purpose Mainframe and Minicomputer Era: (1959 to Present) • The introduction of IBM transistorized machines in 1959 marked the beginning of widespread commercial use of mainframe computers. • In 1965, the mainframe computer era advanced significantly with the launch of the IBM 360 series. • The IBM 360 was the first commercial computer featuring a powerful operating system offering time sharing, multitasking, and virtual memory in its advanced models. • IBM became the dominant force in mainframe computing from this point onward. • Mainframe computers evolved to support thousands of online remote terminals using proprietary communication protocols and dedicated data lines.
- 10. Personal Computer Era (1981 – Present) • Early personal computers emerged in the 1970s (e.g., Xerox Alto, MITSAltair 8800,Apple I & II) but had limited distribution. • The IBM PC, launched in 1981, marked the true beginning of the PC era. • Widely adopted by American businesses for the first time. • Initially ran on DOS (text-based command language), later replaced by MicrosoftWindows. • Wintel PCs (Windows OS + Intel processor) became the industry standard. • By 2012, an estimated 1.2 billion PCs existed globally, with 300 million new units sold annually. • Around 90% of PCs ran aWindows OS; 10% ran MacintoshOS. • Wintel dominance is declining due to the rise of smartphones (iPhone,Android). • Nearly 1 billion smartphone users worldwide now access the Internet via mobile devices.
- 11. Client/Server Era (1983 to Present) • Client/server computing connects desktop or laptop client computers to powerful server computers that provide services and capabilities. • Processing tasks are shared between clients (user access points) and servers (data processing, storage, web page serving, and network management). • A server refers to both the software application and the physical machine it runs on. • Modern servers are often enhanced personal computers using inexpensive chips and multiple processors, not necessarily mainframes. • The simplest form is a two-tiered architecture: one client computer and one server sharing processing. • Large organizations use multitiered (N-tier) client/server architectures, where tasks are distributed across multiple servers based on service needs.
- 13. Cont. – Client/Server Era (1983 to Present) • Web server handles initial client requests (e.g., loading a web page). • Web server software locates and delivers stored web content. • If access to a corporate system is needed (e.g., product list or pricing), the request goes to an application server. • Application server software processes operations between the user and back-end business systems. • Application servers may reside with or separate from the Web server. • Multitiered architecture is essential for e-commerce and e-business platforms (explained in later chapters).
- 14. • Benefits of Client/Server Computing • Distributes computing tasks across multiple smaller, low-cost machines. • Reduces reliance on centralized mainframes. • Leads to expanded computing power and software applications across firms. • MarketTrends • Early dominance: Novell NetWare for client/server networking. • Current leader: Microsoft with Windows Server, Windows 8/7/Vista.
- 15. Enterprise Computing Era (1992–Present) • Emerged in the early 1990s to unify disparate networks and applications. • Firms adopted networking standards and software tools for enterprise-wide integration. • TCP/IP standard became widely used after 1995 to connect different systems. • Enabled creation of enterprise-wide IT infrastructure. • Key Features of Enterprise Computing • Integrates diverse hardware: mainframes, servers, PCs, mobile devices. • Supports organization-wide data flow and inter-organizational communication. • Incorporates public infrastructure: Internet, telephone systems, public networks. • Requires enterprise software to link various business applications and ensure seamless data exchange.
- 16. Cloud and Mobile Computing Era (2000–Present) • Evolved from client/server model to cloud computing model. • Cloud Computing: Provides on-demand access to a shared pool of computing resources: • Servers, storage, applications, and services via the Internet. • Key Features of Cloud Computing • Accessible anytime, anywhere from any connected device. • Supports a wide range of clients: PCs, laptops, smartphones, tablets, etc. • Fastest-growing computing model: • $109B spent on public cloud services in 2012. • Estimated $207B by 2016 (Gartner). • Major Cloud Providers & Impact • Major players: IBM, HP, Dell,Amazon. • Offer remote IT infrastructure services: • Computing power, data storage, high-speed connectivity. • Shift toward mobile platforms for both personal and business computing.
- 17. TECHNOLOGY DRIVERS OF INFRASTRUCTURE EVOLUTION Moore’s Law and Microprocessor Evolution • Gordon Moore (Director, Fairchild Semiconductor R&D) published the observation in Electronics magazine (1965). • Stated that since 1959, the number of components per chip (with the lowest cost per component) doubled each year. • Became the basis of Moore’s Law. • Refinements and Interpretations • Later revised by Moore: Doubling occurs every two years. • Common interpretations of Moore’s Law: • Microprocessor power doubles every 18 months • Computing power doubles every 18 months • Cost of computing is halved every 18 months
- 18. The Law of Mass Digital Storage • KeyTechnology Driver (e.g., internet, mobiles, AI): Influences IT infrastructure evolution. • Core Principle: • Amount of digital information doubles annually. • Cost and Storage Efficiency • Digital information is doubling every year. • Storage cost falls exponentially by 100% each year. • From 1950 onwards, storage capacity per $1 doubled approximately every 15 months. • Example (2012): • The Law of Mass Digital Storage shows that as technology improves, more data can be stored for less money. • 500 GB hard drive retailed for about $60.
- 19. Metcalfe’s Law and Network Economics • Moore’s Law and the Law of Mass Digital Storage explain why computing and storage resources are abundant and affordable today. • But the demand for more computing power is also influenced by network economics. • Network economics refers to the economic principles that explain how value is created, shared, and grows within a network • Robert Metcalfe, inventor of Ethernet (LAN), proposed in the 1970s that: • The value of a network increases exponentially with the number of users or nodes. • This is now known as Metcalfe’s Law: • If a network has n members, its value is proportional to n². • As network membership grows linearly, the value of the network grows exponentially. • This leads to increasing returns to scale for network participants. • Digital networks (like the Internet) increase the number of actual and potential connections, boosting social and business value. • This exponential growth in value drives the increasing demand for IT and networked services.
- 20. Declining Communications Costs and the Internet • One of the key drivers of IT infrastructure transformation is the rapid decline in communication costs. • Simultaneously, there has been exponential growth in the growth of the Internet. • As of 2012, approximately 2.3 billion people globally had access to the Internet. • The cost of communication—both through the Internet and telephone networks—has been falling exponentially. • Most telephone networks now rely on Internet-based communication protocols. • As communication costs approach zero, usage of communication and computing resources increases dramatically. • To capitalize on this, businesses must: • Enhance their Internet infrastructure • Strengthen wireless and mobile connectivity • Upgrade client/server networks and computing devices • These trends are expected to continue shaping the future of IT and business operations.
- 21. Standards and Network Effects • Technology standards are essential for enterprise infrastructure and Internet computing. • Standards define product compatibility and network communication. • Enable economies of scale, reducing costs and improving product accessibility. • Standards result in lower prices and more widespread technology adoption. • Examples of influential standards: • Wintel PC (Windows OS + Intel chips) became a global desktop standard. • Microsoft Office emerged as the standard productivity suite. • Unix-Linux became the standard for enterprise servers. • Mobile platforms now include Apple’s iOS, Mac OS, and Android. • Impact of standards: • Fostered connectivity and network growth. • Enabled firms to build scalable and cost-effective IT infrastructures.
- 22. INFRASTRUCTURE COMPONENTS • Computer Hardware Platforms • Operating System Platforms • Enterprise Software Applications • Data Management and Storage • Networking/Telecommunications Platforms • Internet Platforms • Consulting and System Integration Services
- 23. IT Infrastructure Components • Composed of seven major components (see Figure next) • These components require coordinated investments for a unified infrastructure • Historical issue:Vendors offered incompatible, proprietary solutions • Current trend:Vendors form strategic partnerships to ensure compatibility • Example: IBM cooperates with major software providers and system integrators • Firms now choose flexible database products supported by cooperative vendors IT Infrastructure Components
- 25. Computer Hardware Platforms • Global spending on hardware expected to reach $448 billion in 2013 • Hardware includes servers and client devices • Blade servers dominate server market: • Compact, rack-mounted boards with processor, memory, and network connections • Storage via onboard hard drives or external mass-storage devices • Leading hardware vendors: IBM, HP, Dell, Oracle (Sun Microsystems) • Dominant chip manufacturers: Intel, AMD, IBM • Intel is the standard for most business computing • Sun SPARC and IBM processors used for Unix/Linux server systems IT Infrastructure Components
- 26. Operating System Platforms • Server operating system (OS) Market Share: • Microsoft Windows Server: ~35% • Unix/Linux: ~65% (open-source, scalable, and cost-effective) • Unix/Linux Benefits: • Scalable, reliable, inexpensive • Run on various processor types • Major Unix vendors: IBM, HP, Sun (partially incompatible versions) • Client OS Market: • ~90% of PCs use Microsoft Windows (e.g., Windows 8, 7,Vista) • Emerging Operating Systems: • Chrome OS (Google): Cloud-based, runs via browser, stores data on the internet • Android (Google-led): Open-source, dominant mobile OS • iOS (Apple): Competes with Android on mobile devices IT Infrastructure Components
- 27. Operating System Platforms • MicrosoftWindows operating system (such asWindows 8,Windows 7, or WindowsVista) to manage the resources and activities of the computer. • Google’s Chrome OS provides a lightweight operating system for cloud computing using netbooks. • Android is an open source operating system for mobile devices such as smartphones and tablet computers developed by the Open Handset Alliance led by Google. • iOS, the operating system for the phenomenally popularApple iPad, iPhone, and iPodTouch, features a multitouch interface, where users employ one or more fingers to manipulate objects on a screen without a mouse or keyboard. IT Infrastructure Components
- 28. Enterprise Software Applications • Global Spending: ~$301 billion in 2013 on enterprise software • TopVendors: • SAP and Oracle (enterprise application softwares) • Middleware Providers: • Firmwide integration by linking the firm’s existing application systems • Majority services are provided by IBM and Oracle • Used for integrating firmwide application systems • Microsoft’s Strategy: • Targeting small and medium-sized businesses • Competing in the lower end of the enterprise application market IT Infrastructure Components
- 29. Networking /Telecommunications Platforms • Global Spending (2013): • $408 billion on telecom equipment and $1.7 billion on telecom services • Operating Systems: • Windows Server: Predominantly used in local area networks (LANs) • Linux and Unix: Common in both LANs and wide area networks (WANs) • Network Protocol Standard: • TCP/IP protocol suite widely adopted in LANs and WANs • Leading Networking Hardware Providers: • Cisco, Alcatel-Lucent, Nortel, Juniper Networks • Telecommunications Service Providers: • AT&T,Verizon (voice, data, WAN, wireless, and Internet services) • MarketTrends: • Rapid growth in cellular wireless, high-speed Internet, and VoIP services IT Infrastructure Components
- 30. Internet Platforms • Integration:Tightly connected to hardware, software, and networking infrastructure • Includes: • Web hosting services, Servers, routers, cabling, and wireless equipment, Management services for maintaining websites • Web Hosting: • Firms rent server space from providers to host websites • A web hosting service is a type of Internet hosting service that hosts websites for clients. • It offers the facilities required for them to create and maintain a site and makes it accessible on the World Wide Web. Companies providing web hosting services are called web hosts. • ServerTrends: • Initial explosion of small web servers and Movement toward server consolidation (fewer, more powerful servers) • Major Web DevelopmentTools: • Microsoft: Expression Studio, .NET • Oracle-Sun: Java (dominant for web applications) IT Infrastructure Components
- 31. Consulting and System Integration Services • Need for External Expertise: • Most firms lack in-house resources to fully deploy & maintain complex IT infrastructures • Scope of Services: • Business process redesign, Software integration,Training and education • Key Providers: • Accenture, IBM Global Services, HP, Infosys,WiproTechnologies • Software Integration: • Aligns new systems with: • Existing systems (legacy), Other new infrastructure components • Legacy Systems: • Older mainframe-based systems still in use • Replacing them is expensive and often unnecessary • Integration ensures continued use within modern infrastructures IT Infrastructure Components
- 32. CONTEMPORARY HARDWARE PLATFORM TRENDS • The Emerging Mobile Digital Platform • Consumerization of IT and BYOD • Grid Computing • Virtualization • CloudComputing • GreenComputing • High-Performance and Power-Saving Processors • AutonomicComputing
- 33. • The exploding power of computer hardware and networking technology has dramatically changed how businesses organize their computing power, putting more of this power on networks and mobile handheld devices. • Below are eight hardware trends are currently transforming the businesses: • The mobile digital platform, consumerization of IT, grid computing, virtualization, cloud computing, green computing, high-performance/ power-saving processors, and autonomic computing HardwareTrendsTransforming IT Infrastructure
- 34. The Mobile Digital Platform • Definition: A new class of devices (smartphones, tablets, netbooks) that perform many PC functions and enable mobile business computing. • Key Devices: • Smartphones (iPhone, Android, BlackBerry), Tablet computers (e.g., iPad), Netbooks and e-book readers (e.g., Kindle) • Capabilities: • Web browsing, email, messaging, and digital content display • Access to internal corporate systems and cloud services • Business Applications: • Widely adopted for mobile access to enterprise systems • Example: General Motors executives use smartphone apps for real-time business insights (e.g., sales data, manufacturing metrics) • Impact: • Shifts IT strategy toward mobile-first solutions • Expands connectivity and productivity beyond traditional office settings HardwareTrendsTransforming IT Infrastructure
- 35. Consumerization of IT & BYOD • Consumerization of IT refers to the process by which consumer technology – such as smartphones, tablets, apps, and cloud services – makes its way into the workplace. • Employees now expect to use the same tools at work that they use in their personal lives. • A major part of this is BYOD (bring your own device), where employees use their personal devices (phones, tablets, laptops) to perform work-related tasks and access corporate systems. • Impacts on Businesses: • Increased flexibility and productivity for employees. • Less centralized control by IT departments, requiring new strategies for security and management. • Rethinking IT policies to accommodate personal devices while maintaining data security. HardwareTrendsTransforming IT Infrastructure
- 36. Grid Computing • Grid Computing is a type of distributed computing where multiple computers (often spread across different locations) work together to solve a single complex task or problem. • Grid computing connects many computers over a network (often globally) to work together on complex problems. • Utilization of idle power: Most computers are underused (~25% CPU usage), so grid computing taps into their idle capacity. • High-speed Internet enables it, which allows fast data exchange across dispersed systems. • Specialized programs manage and distribute tasks among computers on the grid. HardwareTrendsTransforming IT Infrastructure
- 37. Virtualization • It allows physical computing resources (like servers or storage) to be used as multiple virtual resources. • These virtual resources can be accessed without being limited by physical location or hardware. • Types ofVirtualization • Server virtualization – One physical server runs multiple virtual machines. • Storage virtualization – Combines multiple storage devices into one virtual storage pool. • Desktop/application virtualization – Users access desktops or apps remotely from a central server (e.g.,VPS). • Benefits ofVirtualization • Increases server usage from 15–20% to over 70%. • Reduces the number of physical machines needed. • Saves space and lowers energy costs in data centers. • Enables access to computing power from remote locations. • Simplifies IT management by centralizing control. HardwareTrendsTransforming IT Infrastructure
- 38. Cloud Computing • A model where computing services (platform – PaaS, processing, storage – IaaS, software - SaaS) are delivered over the Internet. • Resources are virtualized and pooled together in a "cloud." • Services are accessed on-demand from any device with Internet access. • Key Features • On-demand self-service – Users can access resources as needed without human interaction. • Broad network access – Available from anywhere via standard devices (phones, laptops, etc.). • Resource pooling – Multiple users share the same physical resources. • Rapid elasticity – Resources can quickly scale up or down based on demand. • Measured service – Usage is monitored and billed accordingly (pay-as-you-go). HardwareTrendsTransforming IT Infrastructure
- 39. • Types of Cloud computing • On-demand self-service: Users can get computing power or storage whenever they need it, without asking anyone. • Accessible anywhere:You can use cloud services from any device connected to the Internet. • Shared resources: Many users share the same resources, and the system adjusts based on who needs what. • Scalable: Resources can quickly grow or shrink based on your needs. • Pay for what you use:You’re only charged for the resources you actually use. HardwareTrendsTransforming IT Infrastructure
- 40. • Types of Cloud Services • Infrastructure as a Service (IaaS): • Rent computing resources like servers and storage. • Example: Amazon S3 (storage) and EC2 (computing). • Pay only for what you use. • Platform as a Service (PaaS): • Use tools and platforms to develop your own apps. • Example: IBM Cloud for app development; Salesforce's Force.com. • Software as a Service (SaaS): • Use software over the Internet without installing it. • Example: Google Apps, Salesforce.com (CRM software). • Access through a web browser; data stays on provider's servers. HardwareTrendsTransforming IT Infrastructure
- 41. HardwareTrendsTransforming IT Infrastructure Types of Clouds Public Cloud: • Run by third-party providers (e.g., Amazon Web Services). • Open to many users or companies. Private Cloud: • Used by one organization only. • Can be managed internally or by a third party.
- 42. HardwareTrendsTransforming IT Infrastructure • Green Computing • Practices and technologies to minimize environmental impact of IT (design, manufacturing, use, disposal). • Reducing hardware surge and power consumption. • Hosts multiple virtual machines on fewer physical servers, cutting energy use. • Environmental Impact: • IT accounts for ~2% of U.S. power demand • IT contributes ~2% of global greenhouse gas emissions • Business Challenge: Lowering data-center power use saves costs and meets environmental goals. • Broader Practices: • Energy-efficient hardware design • Responsible e-waste recycling and disposal • Power-management software and policies
- 43. HardwareTrendsTransforming IT Infrastructure HIGH-PERFORMANCEAND POWER-SAVING PROCESSORS Multicore Magic:Today’s processors, with dual-core to eight-core setups, deliver faster performance while using less power. More cores = more speed, less energy! Battery-Friendly Power: Power-efficient processors like Apple's A5 and Intel's Atom make devices run smoother and longer, consuming 50x less power than traditional laptop chips. Cool and Fast: Multicore processors keep things fast without overheating, making them perfect for multitasking and saving energy.
- 44. HardwareTrendsTransforming IT Infrastructure • Autonomic computing • Self-Managing Systems: Autonomic computing creates IT systems that automatically configure, optimize, heal, and protect themselves. • Automated Healing: Just like antivirus software that finds and removes threats without user intervention, autonomic systems detect faults and fix them on the fly. • DynamicTuning:These systems continuously monitor performance and adjust resources (CPU, memory, network) to keep everything running smoothly. • Built-In Protection: They defend against intruders (attempting unauthorized access) and prevent self-destructive failures by identifying vulnerabilities and patching them automatically. • Future-Ready Scale: As networks grow to thousands of devices, autonomic computing ensures complexity remains manageable—vendors like IBM are already embedding these “self-governing” features into enterprise products.