ISM 50 - Business Information SystemsLecture 2Instructors: Mary Doyle, Geoff RyderUC Santa CruzApril 1, 2009Reminder: Business Analysis Paper Preferences Due Monday! As a group, turn in 3 things:1.List of your proposed group members.2.List of companies you would like to study. If you don’t have someone in mind to work with, turn in the above 3 things as an individual. One of companies on list must be:Southwest Airlines, Federal Express, Home Depot, Wal-Mart, Charles Schwab, Amazon, EBay.Another Reminder… Assignment 1 is due Wednesday!.Resume, andCover Letter. See class webpage for detailed instructions. Read:Chapter 2 - Section I of O’Brien (reader pp 69-77)Cash Flow Handout on class webpageReview: Business Analysis Paper Choose companies you want to know more about Paper Should Have:Industry ProfileCompany ProfileInformation TechnologyLeadershipMarket and Financial PerformanceTrajectoryReview: Citing SourcesPlagiarism is illegal and cheating and will not be tolerated!!! http://www.soe.ucsc.edu/classes/ism050/Spring09/cite.htmlMore than thirty words verbatim must be cited.Any facts or figures that are not your own must be cited.Ebay’s revenues in the US in 2002 were $1.39 billion [1].[1] Ebay 2005 Annual Report.Review: Citing Sources“Semiconductors have found a place in virtually every electronic device in existence. This helps explain why the industry was able to reach $200 billion in sales before a slump brought the figure back down in 2001”[1].END NOTE:[1] “Semiconductor Trends”, Silicon Valley Tech Week, August 9, 1999, page 81.You must cite your sources in the body of the text!!!!Reference to end note in the body of the text!Review: Citing Sources The easiest way to lose points on your paper is to not cite sources! Guide on the class website will help you cite your sources correctly. Talk to the TA or Instructor if you have questions.Review: Suggested sources of InformationCompany website10K report(This is the annual report public companies file with Security and Exchange Commission.)Article DatabasesA database of articles from magazines like “Business Week” and economics journals.Find it at: http://library.ucsc.eduClick on “article database” on left margin.Click on “LexisNexis Academic ” or try “Business Source Premier from Ebsco Host”Try this tonight! And let us know if you have problems on ThursdayIndustry specific publicationsBooksGood Magazines (The Economist)Consulting groups: Forrester, Gartner, …Where are we, and how did we get here? Let’s survey the history of IT over the past few decades!The History of IT from 1960-2000and beyond……IT Mgmt from 1960-2000 The author (Nolan) breaks down history into 3 erasData Processing EraMicro EraNetwork Era A logical division, but not universalMesserschmitt divides into 4 phases Centralized, Time shared, de-centralized, networkedNolan’s Stages Theory of Organizational Learning Initiation Contagion Control IntegrationThese stages occur for each era and are overlapping as continual change occurs within the organizationThe Data Processing Era (1960-1980)By 1960 economy dominated by large, multi-divisional, hierarchical businesses (M-form)Corporate OfficeDivisional operating units in different marketsExample: GE corporate office in Connecticut Lighting in Cleveland Locomotives in Erie …Within each division many “functional departments” Accounting, Finance, Engineering, etc.CorporateLighting Power LocomotiveThe Data Processing (DP) Era (1960-1980) Needed to keep track of massive amounts of data for PayrollPayments to customers and suppliers,Inventoryetc.The Data Processing (DP) Era (1960-1980) Meanwhile computers were developed for scientific and defense purposesThe Data Processing (DP) Era (1960-1980) These large companies purchased mainframe computersto manage the data processing.They were slow, enormous, and expensive, by today’s standards.But, they did make it possible to process the enormous volume of data, and transactions in a huge corporationDP Era (1960-1980) Commercial computing evolved… 1954 -- IBM 650 dominates commercial marketLeased for $3,250 per month (over $22,000 per month in today’s dollars!)IBM 3601964 – IBM 360, Interoperable peripheral and computer familyGreat improvement over previous generationA massive development effort by IBMEnsured IBMs dominance in the 60s and 70sData Processing Era (1960-1980)“You never got fired for buying IBM.”Average market share of 68% in the 70s. MeanwhileDigital introduces the mini-computer (1960s)UNIX operating system developed (1969)Bob Metcalfe invents Ethernet (1973)DP Era (1960-1980) Technology EvolutionFirst - Stand Alone Mainframes Next – Dumb terminals attached to mainframe(“Time-Shared” Phase in Messerschmitt’sterminology)Data Processing Era (1960-1980) The information resource manager was known as the Data Processing (DP) manager.Charged with supporting the businessNotwith changing how the business was runDP Era (1960-1980) IS evolved from supporting lower functions to higher level functionsLow: Inventory, Purchasing, SchedulingMedium:Productions Operations ManagementHigh: Corporate wide planningDP Era (1960-1980) -- Annual BudgetingBudgeting was an important function made easier by computersAccounting ofRevenues, Expenditures, Assets, LiabilitiesGenerate Profit and Loss StatementBefore computersWas difficult to do once a yearAfter computers,Could “close the books” more oftenCould break down profits and losses to each level of the corporate hierarchyCapital BudgetingAnalyze return and risk of expenditures intended to generate revenue over multiple accounting periodsExamples: New building, or factoryBefore computerCalculations could become complicatedAfter computerVery easyConsequence: Every level of the organization could be held accountable for their ROIBudgetingBetter budgeting and resulting accountability lead to consistent earnings growth.Build up to Micro Era1974 – Xerox PARC develops fist computer with a mouse. They don’t commercialize it!1974 – Altair PC for hobbyists1975 – Bill Gates and Paul Allen Found
View Full Document