Chapter 4

Information Technology in
Business: Hardware

Management Information Systems, 4 th Edition 1

 Learning Objectives
• List major components of a computer and explain
their functions
• Explain how computers communicate
• Classify computers into major categories, and
identify their strengths and weaknesses
• Describe how computers have affected the
development of business
Management Information Systems, 4 th Edition 2
 Learning Objectives (Cont.)
• Define the most commonly used hardware
terminology
• Identify and evaluate key criteria when deciding
what computers or related devices to purchase
• Explain the controversy regarding the health
hazards of computers
• Evaluate hardware so that you can harness it to
improve managerial processes
Management Information Systems, 4 th Edition 3
 The Central Tool of Modern
Information Systems
• Computers are at the core of every modern
information system
– Hardware: the physical components of the
computer
– Software: the set of instructions that direct the
hardware to perform particular tasks

Management Information Systems, 4 th Edition 4

 Hardware components
• Input devices: receive signals from outside the
computer and transfer them into the computer
– Computer keyboard and mouse

– Some input devices accept voice, image, or other

signals

Management Information Systems, 4 th Edition 5

 Central processing unit (CPU)
• Most important part of any computer

• Accepts instructions and data

• Decodes and executes instructions

• Stores results (output) in memory for later display

Management Information Systems, 4 th Edition 6

 Internal Memory or
Main Memory
• Stores data and instructions just before and
immediately after the CPU processes them
• Includes programs currently running on a machine
• Intermediate results of arithmetic operations
• Intermediate versions of documents being word
processed
• Data that represent pictures displayed on a computer
screen
• Sounds played by the speakers
Management Information Systems, 4 th Edition 7
 Internal Memory or
Main Memory (Cont.)
• Two types of memory

– RAM (random access memory)

– ROM (read-only memory)

• The amount of memory and the speed at which it

can be retrieved are two properties that determine
the power of a computer

Management Information Systems, 4 th Edition 8

 External Memory
• Different types of media

– Magnetic disks, magnetic tapes, and optical discs

• Stores same types of data and information as

internal memory does

• Allows for permanent storage and portability

Management Information Systems, 4 th Edition 9

 Output devices
• Computer monitors and printers

• Deliver information from the computer to a person

• Audio output devices

• Specialized output devices: Braille writers

Management Information Systems, 4 th Edition 10

 The Central Tool of Modern
Information Systems (Cont.)
• Devices for both output and input
– Printers that read memory cards to print digital
images
• Most I/O devices are peripheral devices
• Most processing and storage devices are internal
• CPU and primary memory reside on the
motherboard

Management Information Systems, 4 th Edition 11

 The Central Tool of Modern
Information Systems (Cont.)

Management Information Systems, 4 th Edition 12

 How Computers Communicate:
Bits And Bytes
• Computer recognizes two states:

– On or off

• Each on or off signal represents a bit (binary digit)

Management Information Systems, 4 th Edition 13

 Encoding Schemes
• Representation of symbols by unique strings of bits

• ASCII (American Standard Code for Information

Interchange) originally with seven bits in a byte

• ASCII-8

– Newer version

– Consists of eight bits per byte

Management Information Systems, 4 th Edition 14

 Encoding Schemes (Cont.)

Management Information Systems, 4 th Edition 15

 Encoding Schemes (Cont.)
• EBCDIC, Developed by IBM with eight bits per
byte

• Limitations in ASCII and EBCDIC to 256

different characters

• Unicode, 16 bits per byte, allows for many more

characters

Management Information Systems, 4 th Edition 16

 Understanding Computer
Processing
• Counting Bases
– Decimal system is “base 10”
– Binary system is “base 2”
– Similar methods for calculations as humans
– Store all quantities and perform calculations in binary
form
– Display numbers after translating to decimal presentation

Management Information Systems, 4 th Edition 17

 Classification of Computers
• Supercomputers
– The largest, most powerful, and most expensive
– Used by universities, research institutions, and
large corporations
• Mainframe Computers
– Less powerful and less expensive than
supercomputers
– Used by businesses with large amounts of data
that need to be stored in a central computer
Management Information Systems, 4 th Edition 18
 Classification of Computers (Cont.)
• Midrange Computers

– Often used as the host computer in a network of

smaller computers

– Priced in the several thousands to a few hundred

thousand dollars

– Manufacturers: DEC (VAX), IBM (AS/400), and

Hewlett-Packard

Management Information Systems, 4 th Edition 19

 Classification of Computers (Cont.)
• Microcomputers

– Networks of microcomputers are replacing

mainframes

– Sometimes called workstations

– Used for CAD, CAE, complex simulations and

scientific applications

Management Information Systems, 4 th Edition 20

 Classification of Computers (Cont.)
• Microcomputers (cont.)
– The microprocessor chip
• Traditionally manufactured by Intel

• AMC and Cyrix are other manufacturers

• Macintosh are built around Motorola’s PowerPC chips

• Sun develops its own microprocessors and computers

Management Information Systems, 4 th Edition 21

 Classification of Computers (Cont.)
• Computers on the Go:
Notebook, Handheld,
and Tablet computers
– Computers used
outside the office
– 3x the desktop pc price
– Tablet pc is the newest
option available

Management Information Systems, 4 th Edition 22

 Classification of Computers (Cont.)
• Internet Appliances
– Handheld computers and other electronic devices
manufactured with the capability to link to the
Internet
– Can be wireless
– Considerations must be made for invasion of
privacy concerns
– More devices being outfitted for Internet access all
the time
Management Information Systems, 4 th Edition 23
 Business Evolves with Computing
• Mainframe to PC: Networking Businesses

– With increased power of the PC, managers devise their

own IS

– Businesses shifting from mainframe model to the

client/server model

– One PC functions as the server

– Connects to other PCs, the clients

Management Information Systems, 4 th Edition 24

 Trends in Computing
• Increasing power, decreasing cost

• Electronic computing began with early counting

machines

• Electrical signals an important leap in technology

• 1942: first electronic computer at Iowa State

Management Information Systems, 4 th Edition 25

 Trends in Computing (Cont.)
• Used by the US Government

• IBM machines used in ’50s and ’60s for business

calculations, record keeping and more

• Today, nearly every new electronic device has a

computer

Management Information Systems, 4 th Edition 26

 Business Evolves with Computing

Management Information Systems, 4 th Edition 27

 Business Evolves with Computing

Management Information Systems, 4 th Edition 28

 A Peek Inside the Computer

Management Information Systems, 4 th Edition 29

 A Peek Inside the Computer (Cont.)
• The Central Processing Unit (CPU)
– The brain of the computer
– Has two components that store and process data:
• Control unit
• Arithmetic logic unit (ALU)

– Silicon chip with multiple circuits

Management Information Systems, 4 th Edition 30

 A Peek Inside the Computer (Cont.)

Management Information Systems, 4 th Edition 31

 A Peek Inside the Computer (Cont.)
• The Central Processing Unit (CPU) (cont.)

– Microprocessor

• Carries signals that execute all processing

• More transistors on the chip, the greater the power

of the processor

• Silicon chip embedded with transistors, or

semiconductors

Management Information Systems, 4 th Edition 32

 Machine Cycle
• CPU’s execution of four functions is one cycle:
– Fetch, Decode, Execute, Store
• Rate of repetitive cycles is Clock Rate
• One cycle per second is one hertz
– Computer frequencies are measured in megahertz
(MHz─millions of hertz) or gigahertz
(GHz─billions of hertz)
• System clock synchronizes all these tasks
Management Information Systems, 4 th Edition 33
 A Peek Inside the Computer (Cont.)

Management Information Systems, 4 th Edition 34

 A Peek Inside the Computer (Cont.)
• The Word: maximum number of bits fetched in
one cycle

• The Arithmetic Logic Units Operations: where all

arithmetic and logical operations take place

• Reduced Instruction Set Computing: fewer

instructions resulting in faster computing

Management Information Systems, 4 th Edition 35

 A Peek Inside the Computer (Cont.)
• Memory
– Registers
– Primary Memory
• Random access memory (RAM)
• Cache Memory
• Read-only memory (ROM)
– Volatile v. Nonvolatile

Management Information Systems, 4 th Edition 36

 Computer Power
• Clock rate

• Bus: amount of information the CPU can process

per second

• Throughput: speed determined only by

combination of both factors

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 Input Devices
• Keyboard

• Mouse, Trackball, and Track Pad

• Touch Screen

• Source Data Input Devices

• Imaging

• Speech Recognition

Management Information Systems, 4 th Edition 38

 Input Devices (Cont.)

Management Information Systems, 4 th Edition 39

 Output Devices
• Soft-Copy Output Devices
– Cathode-Ray Tube (CRT) Monitor
– Flat-Panel Monitor
– Speech Output
• Hardcopy Output Devices
– Nonimpact Printers (most common)
– Impact Printers

Management Information Systems, 4 th Edition 40

 Output Devices (Cont.)

Management Information Systems, 4 th Edition 41

 External Storage Media
• Important Properties to Consider

– Capacity, Access Speed, Access Mode, Cost

• Mode of Access

– Sequential v. Direct Access

• Magnetic tapes

Management Information Systems, 4 th Edition 42

 External Storage Media (Cont.)
• Magnetic Disks

• Optical Disks

• Optical Tapes

• Flash Memory and Thumb Drives

Management Information Systems, 4 th Edition 43

 Business Considerations of Storage
Media
• Trade-offs

• Modes of Access

– Sequential Access: Tapes

– Direct Access: Disks

Management Information Systems, 4 th Edition 44

 External Storage Media (Cont.)

Management Information Systems, 4 th Edition 45

 External Storage Media (Cont.)

Management Information Systems, 4 th Edition 46

 Considerations in Purchasing
Hardware
• What should you consider when buying
hardware?
– Power -- speed, size of memory, storage
capacity
– Expansion and upgrade capability
– Ports for external devices like printers, hard
disks, communication devices
– Ergonomics: Keyboard, Monitor
Management Information Systems, 4 th Edition 47
 Considerations in Purchasing
Hardware (Cont.)
• What should you consider when buying
hardware (cont.)?
– Footprint
– Vendor reliability, warranty policy, vendor
support
– Compatibility
– Cost
Management Information Systems, 4 th Edition 48
 Considerations in Purchasing
Hardware (Cont.)
Factor What to Look For
•Power Greater frequency and word size, larger
•Expandability Greater number of board slots for additional RAM
•Ports Greater number of ports for printer, external hard
disk, communication devices and other peripherals
•Ergonomics Greater comfort and safety
•Compatibility Comparability with many other computers and
peripheral devices, as swell as software packages
•Footprint Smaller area
•Support Availability of telephone and on-line support for
troubleshooting
•Warranty Longer warranty period
•Cost Lower cost
Management Information Systems, 4 th Edition 49
 Considerations in Purchasing
Hardware (Cont.)
Factor What to Look For
•Power Greater frequency and word size, larger
•Expandability Greater number of board slots for additional RAM
•Ports Greater number of ports for printer, external hard
disk, communication devices and other peripherals
•Ergonomics Greater comfort and safety
•Compatibility Comparability with many other computers and
peripheral devices, as swell as software packages
•Footprint Smaller area
•Support Availability of telephone and on-line support for
troubleshooting
•Warranty Longer warranty period
•Cost Lower cost
Management Information Systems, 4 th Edition 50
 Ethical and Societal Issues
Computers May Be Hazardous to Your Health

• Physical and Emotional Stress

– General physical and emotional stress

– Muscular-skeletal problems

• Repetitive Stress Injuries (RSI)

– Vision problems

Management Information Systems, 4 th Edition 51

 Summary
• Computer components and their functions
• Computer communication
• Categories of computers have different strengths
and weaknesses
• Understand commonly used hardware terminology
• Identify and evaluate key criteria for purchasing
decisions

Management Information Systems, 4 th Edition 52