ISM 50 - Business Information SystemsLecture 2Instructor: John MusacchioUC Santa CruzSeptember 28, 2010Student talksEXAMS and QuizesExamsMidterm Probably 10/28Final 12/6Closed bookA mix of short answers and 1 or 2 essaysOne or two analytical questionsPop Quizzes3 quizzes, unannounced timesSimple questions pertaining to the reading assigned for that dayOnly your top 2 quizzes will count5% of your overall gradeParticipationParticipationWe will have a lot of classroom discussion over the course of the quarter.especially when we read case studies!This is an opportunity for you to think through ideas.give feedback.learn from your classmates.We will evaluate your participation.Classroom ParticipationYou earn 1 participation point in each class session in which you make an intelligent comment.Participating more than once in a class session is encouraged, but does not earn more points.For full participation credit, you need to earn 8 participation points over the quarter.Online Forum ParticipationAlternate way of earning participation points1 point for each intelligent post to a discussion thread.Discussion forum should begin operating next week!ParticipationIn SummaryYou need 8 participation points to get full credit.Participation is 10% of your overall grade.ORAL PRESENTATIONandNEWS FOLIOSPresentation/FolioYou will be assigned eitherPresentationNews FolioOral Presentations5 minutes in length Assigned to present one of the following:Summary of the case study we will discuss in class that day.Recent news story involving business and information systems.Your groups business paper project PowerPoint Presentation.E-mailed to me by the night beforeAssignmentsDatabase Assignment Learn and Use database softwareAn opportunity for hands-on experience without having to use advanced programming.Assignment will be done individuallyWe will give you the details of the assignment sometime after the midterm.Database Tutorial later in the quarter10% of your gradeWeekly AssignmentsApproximately once every week or two.They will be posted on the class webpage in the assignments column of the syllabus.Usually,Questions from the textbookQuestions pertaining to Case Study Readings.However, Assignment 1 is to make a resume and cover letter!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 1960-2000IT Mgmt from 1960-2000The author (Nolan) breaks down history into 3 erasData Processing EraMicro EraNetwork EraA logical division, but not universalMesserschmitt divides into 4 phasesCentralized, Time shared, de-centralized, networkedThe Data Processing Era (1960-1980)By 1960 economy dominated by large, multi-divisional, hierarchical businessesCorporate OfficeDivisional operating units in different marketsExample: 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 PayrollPayments to customers and suppliers,etc.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 computersto 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 marketLeased for $3,250 per month (over $22,000 per month in todays dollars!)IBM 3601964  IBM 360, Interoperable peripheral and computer familyGreat improvement over previous generationA massive development effort by IBMEnsured 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.MeanwhileDigital introduces the mini-computer (1960s)UNIX operating system developed (1969)Bob Metcalfe invents Ethernet (1973)DP Era (1960-1980)Technology EvolutionFirst - Stand Alone Mainframes Next  Dumb terminals attached to mainframe(Time-Shared Phase in Messerschmitts terminology)Data Processing Era (1960-1980)The information resource manager was known as the Data Processing (DP) manager.Charged with supporting the businessNot with changing how the business was runDP Era (1960-1980)IS evolved from supporting lower functions to higher level functionsLow: Inventory, Purchasing, SchedulingMedium: Productions Operations ManagementHigh: Corporate wide planningDP Era (1960-1980) -- Annual BudgetingBudgeting was an important function made easier by computersAccounting ofRevenues, Expenditures, Assets, LiabilitiesGenerate Profit and Loss StatementBefore computersWas difficult to do once a yearAfter computers,Could close the books more oftenCould break down profits and losses to each level of the corporate hierarchyCapital BudgetingAnalyze return and risk of expenditures intended to generate revenue over multiple accounting periodsExamples: New building, or factoryBefore computerCalculations could become complicatedAfter computerVery easyConsequence: 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 Era1974  Xerox PARC develops fist computer with a mouse. They dont commercialize it!1974  Altair PC for hobbyists1975  Bill Gates and Paul Allen Found MicrosoftBuild up to the Micro Era1977  Apple introduces a successful microcomputerThe Micro Era (1980-1995)1981  IBM introduces its PC! Intel develops CPUMicrosoft develops operating systemIBM PCs were rapidly adopted by the commercial