Info system Final Study Guide Network Effects Network effects Also known as Metcalfe s Law or network externalities When the value of a product or service increases as its number of users expands The value of a network with n users is n n 1 Network effects occur when the value of something increases as consumption increases The more units consumed the higher value per unit up to a point where it levels off Examples Sources Phone fax e mail Instant messaging Source is amount of users communication Excel Word PowerPoint Source is sharing exchanging information Wikipedia online communities Source is more valuable reliable content Trading Exchanges like e bay Source is more buyers and more sellers thus price goes up for sellers and buyers can browse to find cheapest best product One sided market A market that derives most of its value from a single class of users ex Instant messaging Two sided market Network markets comprised of two distinct categories of participant both of which that are needed to deliver value for the network to work ex video game console owners and developers of video games E BAY Winner Take All Market leader gets a disproportionately high share of profits and market power in related markets market moves towards monopoly ex Microsoft Leader with network effects has switching costs and complementary benefits Hardware Basic computer components Input puts info into the hardware ex Mouse Storage Volatile Primary or Non volatile Secondary Volatile memory Primary Storage such as RAM chips that is wiped clean when power is cut off from a device Programs currently in use temporary Non volatile memory Secondary Storage that retains data even when powered down such as flash memory hard disk or DVD storage longer term storage Processing microprocessor brain of computer executes instructions Output Info hardware spits out ex Printer Headphones Bigger is better more powerful more expensive Binary computers express data as bits that are either 0 1 no signal signal Everything in computers is coded into binary computers work in base 2 ex 32 MB 8 Bits 1 Byte Byte is a single character on a keyboard Moore s Law chip performance per dollar doubles every 18 months Data storage doubles every 12 months Optical Fiber doubles every 9 months Challenges of Moore s Law Heat Size Power can t double forever Solutions Multi core processors 2 o more calculating cores on the same chip Massively parallel computing Many chips working together simultaneously Grid computing Many computers work together on a problem simultaneously Implications Chips everywhere e waste Networking and Internet Client desktop Runs interface operating system May run certain programs store some data Individual Resource Server more powerful than client central Stores many application programs Stores data files Manages shared resources printers hard drives Runs complex programs Connected to clients via a network Shared resource How is Data Transmitted on the Internet 1 Browser on client computer sends request over Internet to server asking for specific HTML file 2 Web server gets the file from the specified directory 3 Web server sends the file over the Internet to the client computer 4 Web browser displays the HTML file TCP IP in order for devices to communicate requires a shared set of rules and protocols TCP transmission control protocol works at both ends of most Internet communications to ensure a perfect copy of a message is sent in order IP Internet protocol Routing protocol that is in charge of forwarding packets on the Internet Benefits equipment made by diff companies can inter operate diff networks owned by diff companies can communicate Why Internet is open to anyone everything Packet switching Breaks each message into small packets frames sends these packets one after another using lines and switches efficiently as needed Circuit switching Dedicated path only one path can be used ex phone call limited of paths Difference is that with packet switching each packet may take a different path and multiple packets can be on the same path TCP handles packet switching Software Types of software Operating system Manages the resources of your computer controls how users other programs interact w computer hardware interpret commands and turn them into instructions the CPU can understand Ex Windows XP DOS Mac OS X Linux Application software Allows user to perform one or more specific tasks can be standard or customized Standard word access Customized blackboard iGoogle Productivity software focus on increased efficiency Word Excel Collaborative software support communication overcome barriers of time and space E mail IM Wiki video conferencing Enterprise software Helps an entire organization work together SCM CRM BI all work together BI ex Wal Mart sells lots of pop tarts during hurricanes Firmware stored on non volatile memory chips ex OS on an iPod Embedded systems Special purpose software embedded in physical devices to make them smart Ex Otis elevator systems warns for repairs maintenance problems Algorithm Set of instructions or steps defines environment sequence logical flow of a task or set of data ex folding clothes Rubik s cube Recipe environment ingredients equipment sequence steps to convert ingredients to food Software environment data location sequence steps to convert data to info SaaS Software as a Service Application and users data stored off site in a central location run by the provider provider in charge of all IT support services users usually pay a monthly fee Cloud computing Replace computing resources HW or SW with services provided over the Internet Ex SaaS utility computing firm develops own software runs it on Internet on a service provider s computers Issues security and reliability TCO Total Cost of Ownership All costs associated w design development testing implementation documentation training and maintenance of a software system Ex costs of upgrades hardware costs Source code of a computer program Closed source code is converted to non readable non editable format before distribution Open source code is distributed in human readable edited form OSS Open source software Software that is free and where anyone can look at and potentially modify the code Used every time you go on the Internet Examples Linux OS Firefox Large successful companies have used ex IBM Oracle Huge threat to Microsoft Halloween Documents Alternative to Proprietary Fewer restrictions License Often free Often uses
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