Using Management Information Systems
David Kroenke
Hardware and Software
Chapter 3
© 2007 Prentice Hall, Inc.
1
Learning Objectives
Learn the terminology necessary to be an
intelligent consumer of hardware products.
Know the functions and basic features of
common hardware devices.
Understand the essentials of the representation
of computer instructions and data.
Know the purpose of the CPU and main
memory, and understand their interaction.
© 2007 Prentice Hall, Inc.
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Learning Objectives (Continued)
Learn about viruses, Trojan horses, and worms
and how to prevent them.
Understand the key factors that affect computer
performance.
Learn basic characteristics of the four most
popular operating systems.
Know the sources and types of application
software.
© 2007 Prentice Hall, Inc.
3
Essential Hardware Terminology
Computing devices consists of computer hardware
and software.
Hardware is electronic components and related
gadgetry that input, process, output, and store data
according to instructions encoded in computer
programs or software.
Your personal computer and other computers like it
are general-purpose computers.

They can run different programs to perform different
functions.
© 2007 Prentice Hall, Inc.
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Essential Hardware Terminology (Continued)
Some computers are special-purpose
computers.


The programs they run are fixed permanently in memory.
The computer in your cell phone is a special-purpose
computer, and so is the computer in your car that meters
fuel to your car’s engine.
© 2007 Prentice Hall, Inc.
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Essential Hardware Terminology (Continued)
The principles and fundamental components of
general-purpose and special-purpose computers
are the same;

The sole difference is the computer can process a
variety of different programs
© 2007 Prentice Hall, Inc.
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Input, Processing, Output, and Storage Hardware
One easy way to categorize hardware is by
its primary function:





Input hardware
Processing hardware
Output hardware
Storage hardware
Communication hardware
© 2007 Prentice Hall, Inc.
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Figure 3-1 Input, Process, Output, and Storage
Hardware
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Input, Processing, Output, and Storage Hardware
Input hardware devices are the keyboard, mouse,
document scanners, and bar-code (Universal
Product Code) scanners.
Microphones also are input devices; with tablet
PCs, human handwriting can be input as well.
Processing devices include the central
processing unit (CPU), which is sometimes
called “the brain” of the computer.
© 2007 Prentice Hall, Inc.
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Figure 3-2 Scantron Scanner
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Input, Processing, Output, and Storage Hardware
(Continued)
The CPU selects instructions, processes them,
performs arithmetic and logical comparisons, and
stores results of operations in memory.
CPU’s vary in speed, function, and cost.
Whether you or your department needs the latest,
greatest CPU depends on the nature of your work.
The CPU works in conjunction with main memory.
© 2007 Prentice Hall, Inc.
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Input, Processing, Output, and Storage Hardware
(Continued)
The CPU reads data and instructions from
memory, and it stores results of computations in
main memory.
Computers also can have special function cards
that can be added to the computer to augment the
computer’s basic capabilities.

A common example is a card that provides enhanced
clarity and refresh speed for the computer’s video
display.
© 2007 Prentice Hall, Inc.
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Figure 3-3 Special Function Cards
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Input, Processing, Output, and Storage Hardware
(Continued)
Output hardware consists of video displays,
printers, audio speakers, overhead projectors, and
other special-purpose devices, such as large flatbed
plotters.
Storage hardware saves data and programs.
Magnetic disk is by far the most common storage
device, although optical disks, such as CDs and
DVDs are popular.
In large corporate data centers, data are sometimes
stored on magnetic tape.
© 2007 Prentice Hall, Inc.
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Binary Digits
Computers represent data using binary digits,
called bits.
A bit is either a zero or a one.
Bits are used for computer data because they are
easy to represent physically.
A switch can either be closed or open.
© 2007 Prentice Hall, Inc.
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Binary Digits (Continued)
A computer can be designed so an open switch
represents zero and a closed switch represents a
one.
Or, the orientation of a magnetic field can represent
a bit;


Magnetism in one direction represents a zero
Magnetism in the opposite direction represents a one
Or, for optical media, small pits are burned onto the
surface of the disk so that they will reflect light


In a given spot, a reflection means a one
No reflection means a zero
© 2007 Prentice Hall, Inc.
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Figure 3-4 Bits Are Easy to Represent Physically
© 2007 Prentice Hall, Inc.
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Computer Instructions
Computers use bits for two purposes: instructions
and data.
A given instruction, say to add two numbers together,
is represented by a string of digits
(0111100010001110).
When the CPU reads such an instruction from main
memory, it adds the numbers or takes whatever
action the instruction specifies.
The collection of instructions that a computer can
process is called the computer’s instruction set.
© 2007 Prentice Hall, Inc.
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Computer Instructions (Continued)
All of the personal computers that run Microsoft
Windows are based on an instruction set developed
by Intel Corporation that is called Intel instruction
set.
Until 2006, all Macintosh computers used a different
instruction set, the PowerPC instruction set,
designed for Powerful PC processors.
In 2006, Apple began offering Macintosh computers
with a choice of either Intel or PowerPC processors.
© 2007 Prentice Hall, Inc.
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Computer Instructions (Continued)
Currently, you cannot run a program designed for
one instruction set on a computer having a different
instruction set.
In the future, you may be able to run Windows on a
Macintosh that uses the Intel instruction set,
although the particulars of that are uncertain.
When you pick a family of computers, such as
Windows or the Macintosh, you pick not only the
hardware, but also the sets of programs that can run
on one family of computers.
© 2007 Prentice Hall, Inc.
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Computer Data
All computer data are represented by bits.
The data can be numbers, characters, currency
amounts, photos, recordings, or whatever.
Bits are grouped into 8-bit chunks called bytes.
For character data, such as letters in a person’s
name, one character will fit into one byte.

Thus, when you read a specification that a computing
device has 100 million bytes of memory, you know that the
device can hold 100 million characters.
© 2007 Prentice Hall, Inc.
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Figure 3-5 Important Storage-Capacity
Terminology
© 2007 Prentice Hall, Inc.
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Ambiguity of Binary Data
It is not possible to determine the type of computer
data just by looking at the data.


The bit string 01000001 can be interpreted as the decimal
number 65, as the character A, or as part of a picture or a
sound file.
Further, it could be part of a computer instruction.
The CPU determines how to interpret a bit string
from the context in which it encounters it.
If the string occurs in the context of reading
instructions, it will be interpreted as a computer
instruction.
© 2007 Prentice Hall, Inc.
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Ambiguity of Binary Data (Continued)
If it occurs in the context of reading instructions, it
will be interpreted as the character A.
If it occurs during arithmetic operations, it will be
interpreted as the number 65.
This ambiguity is more than curiosity; virus authors
and other cyber-criminal use it to their advantage.
© 2007 Prentice Hall, Inc.
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Knowledge for the Informed Professional
Suppose that your IS department states that you can
buy three different computer configurations for three
different prices.
The computers are described by expressions like the
following:



Intel Pentium 4 Processor at 2.8 GHz with 533MHz Data
Bus and 512K cache, 256MB RAM
Intel Pentium 4 Processor at 2.8 GHz with 533MHz Data
Bus and 512K cache, 512 MB RAM
Intel Pentium 4 Processor at 3.6 GHz with 533MHz Data
Bus and 1MB cache, 256 MB RAM
© 2007 Prentice Hall, Inc.
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Knowledge for the Informed Professional
(Continued)
Now, you, have two choices:


You can tell the people in the IS department to specify
what they think is best;
Or, with a little bit of knowledge on your part, you can work
with the IS department to ask intelligent questions about
the relationship of these computers to the kind of work your
department does
© 2007 Prentice Hall, Inc.
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Figure 3-6 Computer with Applications Loaded
© 2007 Prentice Hall, Inc.
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CPU and Memory Usage
The motherboard is a circuit board upon which the
processing components are mounted and/or
connected.
The central processing unit (CPU) reads instructions
and data from main memory, and it writes data to
main memory via a data channel, or bus.
Main memory consists of a set of cells, each of
which holds a byte of data or instruction.
© 2007 Prentice Hall, Inc.
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CPU and Memory Usage (Continued)
Each cell has an address, and the CPU uses the
addresses to identify particular data items.
Main memory is also called RAM memory, or just
RAM.
RAM stands for random access memory.
The term random is used to indicate that the
computer does not need to access memory cells in
sequence; rather, they can be referenced in any
order.
© 2007 Prentice Hall, Inc.
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CPU and Memory Usage (Continued)
To store data or instructions, main memory or RAM
must have electrical power.
When power is shut off, the contents of main
memory are lost.
The term volatile is used to indicate that data will be
lost when the computer is not powered.

Main memory is volatile.
© 2007 Prentice Hall, Inc.
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CPU and Memory Usage (Continued)
Magnetic and optical disks maintain their contents
without power and serves as storage devices.
You can turn the computer off and back on, and the
contents of both magnetic and optical disks will be
unchanged.

Magnetic and optical disk are nonvolatile.
© 2007 Prentice Hall, Inc.
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The Contents of Memory
Memory is used for three purposes:



It holds instructions of the operating system
It holds instructions for application programs such as Excel
or Acrobat.
It holds data.
The operating system (OS) is a computer program
that controls all of the computer’s resources





It manages main memory.
It processes key strokes and mouse movements.
It sends signals to the display monitor.
It reads and writes disk files.
It controls the processing of other programs.
© 2007 Prentice Hall, Inc.
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Memory Swapping
Memory swapping occurs when there is a request to
the operating system to store data in memory and
the data will not fit because there is not enough free
memory to store the requested data.
In this case, the operating system will have to
remove something to make space.
Little swapping occurs when:



Your computer has a very large main memory.
You use only one or a few programs at a time.
You use small files.
© 2007 Prentice Hall, Inc.
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Memory Swapping (Continued)
You may have a serious problem if:



Your computer has a small memory capacity.
You need to use many programs or process many large
data files.
Your computer has a small memory capacity.
In this latter case, adding more main memory will
substantially improve your computer’s performance.
© 2007 Prentice Hall, Inc.
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Figure 3-7 Picture File Overlays Memory
Previously Used by Excel
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Work at the CPU
The CPU reads instructions and data from memory
via the data bus.
The maximum speed at which it transfers data is
determined by the speed of main memory and the
speed and width of the data bus.
A bus that is 16 bits wide can carry 16 bits at a time;
one that is 64 bits wide can carry 64 bits at a time.
The wider the bus, the more data it can carry in a
given interval of time.
© 2007 Prentice Hall, Inc.
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Work at the CPU (Continued)
Because the data transfer rate depends on both the
width of the data bus and the speed of main memory,
another way to speed up the computer is to obtain
faster memory.
Some data are accessed more frequently than other
data.



Because of this, computer engineers found they could
speed up the overall throughput of the CPU by creating a
small amount of very fast memory, called cache memory.
The most frequently used data are placed in the cache.
Typically, the CPU stores intermediate results and the most
frequently used computer instructions in the cache.
© 2007 Prentice Hall, Inc.
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Work at the CPU (Continued)
Each CPU has a clock speed that is measured in
cycles per second, or hertz.
A fast modern computer has a clock speed of 3.0
gigahertz (abbreviated GHz), or 3 billion cycles per
second.

By the time you read this, CPU speeds will be greater.
In general, the faster the clock speed, the faster work
will get done.
© 2007 Prentice Hall, Inc.
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Figure 3-8 Hardware Components and Computer
Performance
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The CPU and Memory (Continued)
A fast CPU and data bus are most useful when
processing data that already reside in main memory.


Once you have downloaded a large spreadsheet, a fast
CPU will rapidly perform complicated, formula-based whatif analyses.
A fast CPU also is useful for processing large graphics
files.
 Example, manipulating the brightness of the elements
of a large picture
If the applications that you or your employees use do
not involve millions of calculations or manipulations
on data in main memory, then buying the fastest
CPU is probably not worthwhile.
© 2007 Prentice Hall, Inc.
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Main Memory
Two key performance factors for main memory are
speed and size.
Normally, a particular computer make and model is
designed to use a given memory type, and the speed
for that type is fixed.

There is nothing you can do to increase memory speed.
You can, however, increase the amount of main
memory, up to the maximum size of memory that
your computer brand and model can hold.

In 2005, the maximum amount of memory for new personal
computers ranged from 1.5 to 2.0GB.
© 2007 Prentice Hall, Inc.
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Main Memory (Continued)
If your computer is constantly swapping files,
installing more memory will dramatically improve
performance.
In truth, memory is cheap and is often the best way
to get more performance out of a computer.
Your operating system has tools and utilities that
measure main memory utilization and file swapping.
© 2007 Prentice Hall, Inc.
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Figure 3-9 Magnetic Disk Components
© 2007 Prentice Hall, Inc.
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Magnetic Disks
Magnetic and optical disks provide long-term,
nonvolatile data storage.
The types and sizes of such storage devices will
affect computer performance.
Data are recorded on magnetic disks in concentric
circles.


The disks spin inside the disk unit, and as they spin
magnetic spots on the disks are read or written by the
read/write head.
The time required to read data from a disk depends on two
measures:
 Rotational delay
 Seek time
© 2007 Prentice Hall, Inc.
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Magnetic Disks (Continued)
Rotational delay is the time it takes the data to rotate
under the measure, called the rotational delay.




It is the seek time it takes the data to rotate under the
read/write head.
Seek time is the time it takes the read/write head arm to
position the head over the correct circle.
The faster the disk spins, the shorter the rotational delay.
Seek time is determined by the maker and model of the
disk device.
Once the read/write head is positioned over the
correct spot on the disk, data can flow over the
channel to or from main memory.
© 2007 Prentice Hall, Inc.
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Magnetic Disks (Continued)
Like the data bus, the rate of data transfer depends
on the width and speed of the channel.
There are a number of different standards for
channel characteristics.


As of 2005, a common standard is the ATA-100 (Advance
Technology Attachment) standard.
The number 100 indicates that the maximum transfer rate
is 100MB per second.
You can use a fast disk to compensate, to some
extent, for too little memory.
© 2007 Prentice Hall, Inc.
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Optical Disks
There are two kinds of optical disks: CDs (compact
disks) and DVD (digital versatile disks).

Both are made of plastic and coated with a photosensitive
material.
Bits are recorded by burning a pit into the
photosensitive material using a low-power laser.
The presence of a pit causes light to reflect and
signifies a one; the absence of reflection signifies a
zero.
© 2007 Prentice Hall, Inc.
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Optical Disks (Continued)
Like magnetic disks, optical disks are nonvolatile;
they maintain their contents even when not powered
The practical differences between CDs and DVDs
are capacity and speed.


A typical CD has a maximum capacity of 700 MB, whereas
a DVD disk can store up to 4.7GB.
DVD transfer rates about 10 times faster than those for
CDs.
CDs and DVDs see their greatest use in the
entertainment industry for playing music and videos.
© 2007 Prentice Hall, Inc.
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Video Displays
There are two types of video display monitors: CRTs
and LCDs.
CRT monitors use cathode ray tubes, the same
devices used in traditional TV screens.
LCD monitors use a different technology called
liquid crystal display.

With LCD monitors, no tube is required, so they are
much slimmer, around 2 inches or so deep.
Both types of monitors display images by illuminating
small spots on the screen called pixels.
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Video Displays (Continued)
The number of pixels displayed depends not only on
the size of the monitor, but also on the design of the
mechanism that creates the image.
For a CRT monitor, the dot pitch, is the distance
between pixels on the screen.

The smaller the dot pitch, the sharper and brighter the
screen image will be.
For an LCD monitor, the pixel pitch is the distance
between pixels on the screen.

The smaller the pixel pitch, the sharper and brighter
the image will be.
© 2007 Prentice Hall, Inc.
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Video Displays (Continued)
Each monitor has an optimal resolution, which is
the size of the pixel grid (e.g., 1,024 x 768) that will
give the best sharpness and clarity.

This optimal resolution depends on the size of the
screen, the dot or pixel pitch, and other factors.
Each pixel on the monitor is represented in main
memory.



If the resolution of the monitor is 1,024 x 768, then there
will be a table in memory with 1,024 rows and 768
columns.
Each cell of this table has a numeric value that
represents the color of the pixel that it represents.
The amount of memory used for each cell in the pixel
grid depends on the number of colors that each pixel is to
display.
© 2007 Prentice Hall, Inc.
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Video Displays (Continued)
Each pixel on the monitor is represented in main
memory (continued)



For a black and white image, the cells can consist of a
single bit: zero for white and one for black.
To represent 16 colors, each pixel is represented by four
bits.
Today, most monitors use a large palette that necessitates
32 bits for each pixel and allows for 8,589,934,591 colors.
Some computers dedicate a separate memory cache
just to the video display.
© 2007 Prentice Hall, Inc.
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Figure 3-10 Contemporary Operating Systems
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Mac OS
Apple Computer, Inc. developed its own operating
system for the Macintosh, Mac OS.
Macintosh computers are used primarily by graphic
artists and workers in the arts community.
As of 2006, Macintosh computers will be available
for both PowerPC and Intel CPUs.
A Macintosh with an Intel processor is able to run
both Windows and the MAC OS.
© 2007 Prentice Hall, Inc.
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Unix OS
Unix is an operating system that was developed at
Bell Labs in the 1970s.
It has been the workhorse of the scientific and
engineering communities since then.
Unix is generally regarded as being more difficult to
use than either Windows or the Macintosh.
Many Unix users know and employ an arcane
language for manipulating files and data.
In general, Unix is not for the business user.
© 2007 Prentice Hall, Inc.
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Linux OS
Linux is a version of Unix that was developed by the
open-source community.
This community is a loosely coupled group of
programmers who mostly volunteer their time to
contribute code to develop and maintain Linux.
The open source community owns Linux, and there
is no fee to use it.
Linux is a popular operating system for Web servers.
© 2007 Prentice Hall, Inc.
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Application Software
Application software consists of programs that
perform a business function.
Some application programs are general purpose,
such as Excel or Word.
Other application programs are specific

QuickBooks, for example, is an application program
that provides general ledger, and other accounting
functions.
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Application Software (Continued)
Sources
You can buy computer software several ways:



Off-the-shelf
Off-the-shelf with alterations
Tailor made
Horizontal-Market Applications Software
Horizontal-market application software provides
capabilities common across all organizations and
industries.
Word processor, graphics programs, spreadsheets,
and all presentation programs are all horizontalmarket application software.
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Application Software (Continued)
Vertical-Market Applications Software
Vertical-market application software serves the
needs of a specific industry.
Examples of such programs are:



Those used by dental offices to schedule appointments
and bill patients
Those used by auto mechanics to keep track of customer
data and customers’ automobile repairs
Those used by parts warehouses to track inventory,
purchases, and sales
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Application Software (Continued)
Custom-Developed Software
Sometimes organizations develop custom
application software.
They develop such programs themselves or hire a
development vendor.
Custom development is difficult and risky.
Every application program needs to be adapted to
changing needs and changing technologies .
© 2007 Prentice Hall, Inc.
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Figure 3-11 Software Sources and Types
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Firmware
Firmware is computer software that is installed into
devices like printers, print servers, and various types
of communication devices.
The software is coded just like other software, but it
is installed into special, read-only memory of the
printer or other device.
Users do not need to load firmware into device’s
memory.
Firmware can be changed or upgraded, but this is
normally a task for IS professionals.
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Summary
Computing devices consists of hardware and
software.
General-purpose computers can run multiple
programs; special-purpose computers, like those
in cell phones, run only one program that is fixed
in memory.
Hardware can be categorized according to its
primary functions: input, processing, output, and
storage.
Input hardware includes devices such as
keyboards and mice.
© 2007 Prentice Hall, Inc.
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Summary (Continued)
Processing hardware includes the CPU and main
memory.
Output devices are video displays, printers, and
the like.
Storage devices include magnetic and optical
disks.
Computers use bits to represent data.
A bit, or binary digit, has a value of zero or one.
Bits are used to represent computer instructions
and data.
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Summary (Continued)
Four popular operating systems are Windows,
Mac, OS, Unix, and Linux.
Computer software consists of the operating
system and application software.
Software can be purchased off-the-rack,
purchased off-the-rack and then altered, or tailormade.
Types of software include horizontal, vertical, and
custom.
Firmware is program code installed in read-only
memory of printers or communications devices.
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Key Terms and Concepts
Antivirus programs
Application software
ATA-100
Binary digit
B2B (business-to-business)
Bus
Byte
Cache memory
CD-R
CD-ROM
CD-RW
CRT monitor
Central processing unit (CPU)
Clock speed
Custom software
Data channel
Dot pitch
DVD-R
DVD-ROM
DVD-RW
Firmware
General-purpose computer
Gigabyte (GB)
Hardware
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Key Terms and Concepts (Continued)
Horizontal-market
application
Input hardware
Intel instruction set
Kilobyte (K)
LCD monitor
License agreement
Linux
Mac OS
Macro virus
Main memory
Megabyte (MB)
Memory swapping
Motherboard
Nonvolatile
OEM (original equipment
manufacturer)
Off-the-self software
Open-source community
Operating system (OS)
Optimal resolution
Output hardware
Patch
Payload
Pixel
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Key Terms and Concepts (Continued)
Pixel pitch
Power PC instruction set
RAM memory
Seek time
Software piracy
Special function cards
Special-purpose computer
Storage hardware
TCG/NGSCB
Terabyte (TB)
Trojan horse
Unix
VAR (value-added
resellers)
Vertical-market application
Virus
Volatile
Windows
Worm
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Problem Solving Guide–Questioning your Questions
For most problems, in the business world, the
difficult and creative acts are generating the
questions and formulating a strategy for getting the
answers.
Once the questions and strategy are set, the rest is
simply legwork.
As a future consumer of information technology and
services, you will benefit from being able to ask
good questions and effectively obtain answers to
them.
© 2007 Prentice Hall, Inc.
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Problem Solving Guide–Questioning your Questions
(Continued)
It is probably the single most important behavior
you can learn.
There are billions of bad questions, and you will be
better off if you learn not to ask them.
Questions can be bad in three ways:



They can be irrelevant
Dead
Asked of the wrong source
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Problem Solving Guide–Questioning your Questions
A dead question is one that leads to nowhere, it
provides no insight into the subject.



Example–“Is the material on how a computer works
going to be on the test?
The answer will help you in school, but it won’t help you
use MIS on the job.
Instead ask questions like,
 “What is the purpose of the section on how a
computer works?”
 ‘”Why are we studying it?”
 “How will it help me use MIS in my career?”
© 2007 Prentice Hall, Inc.
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Problem Solving Guide–Questioning your Questions
Information technology questions fall into three
categories:



“What is it?”
“How can I use it?”
“Is it the best choice?”
© 2007 Prentice Hall, Inc.
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Security Guide–Viruses, Trojan Horses, and
Worms
A virus is a computer program that replicates itself
and consumes the computer’s resources.
The program code that causes unwanted activity is
called the payload.
There are many different virus types:



Trojan horses
Macro viruses
Worm
© 2007 Prentice Hall, Inc.
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Security Guide–Viruses, Trojan Horses, and
Worms (Continued)
Prevention steps are:






Find and apply patches to the operating system and to
applications.
Never download files, programs, or attachments from
unknown Web sites.
Do not open attachments to emails from strangers.
Do not open unexpected attachments to emails, even
from known sources.
Do not rely on file extensions.
Run a retroactive antivirus program at regular intervals,
at least once per week.
© 2007 Prentice Hall, Inc.
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Opposing Forces Guide–Churn and Burn
“Frankly, I think there’s a conspiracy between
hardware and software vendors”.




“They both want to sell new products, so the hardware
people come up with these incredibly fast and huge
computers”.
“Then, given all that power, the software types develop
monster products bloated with features and functions that
nobody uses”.
“It would take me months to learn all the features in Word,
not only to find out that I don’t need those features”.
“In my version of Word, there are 19 toolbars to select,
plus one more to customize my own toolbar”.
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Opposing Forces Guide–Churn and Burn
(Continued)
“Frankly, I think there’s a conspiracy between
hardware and software vendors” (continued)

“I write all the time, and I have two selected: Standard and
Formatting”.
“Because we live in a connected world, they don’t
have to get all of us to use those 19 toolbars, just
one of us”.


“Bridgette likes to use the redlining features, and she likes
me to use them when I change draft contracts she sends
me”.
“So, If I want to work on her documents, I have to turn on
the Reviewing toolbar”.
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Opposing Forces Guide–Churn and Burn
(Continued)
“Viruses are one of their best ploys. They say you
can better buy the latest and greatest products in
software, and then apply all the patches that follow
so that you’ll be protected from the latest zinger from
the computer bad guys”.

“If vendors had built the products correctly the first time,
then there would be no holes for the baddies to find, would
there?”
“One of these days, users are going to rise up and
say, That’s enough. I don’t need any more. I’ll stay
with what I have, thanks you very much.”

“In fact, maybe that’s happening right now”
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Ethics Guide–Using Hardware to Enforce Licenses
Every commercial software program, whether an
operating system or an application, is sold under
the restrictions of a license agreement that
stipulates how the program can be used.
Software piracy occurs when a programs are
used in violation of the license agreement.
Piracy occurs on a large scale when a company
illegally copies a program and sells it on the black
market.
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Ethics Guide–Using Hardware to Enforce Licenses
(Continued)
But piracy also occurs on a small scale when one
user allows another user to load the program on
her computer in violation of the license agreement.
Over the years, vendors have applied many
different techniques to prevent software piracy.
The most effective strategies involve a combination
of hardware and program identify.
Today, Microsoft, Intel, and other companies have
been working together on a project called
TCG/NGSCB.
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Ethics Guide–Using Hardware to Enforce Licenses
(Continued)
No products yet implement this work, but product
designs are underway.
According to the TCG standard, future computers
will include a hardware component that emits
passwords and other security data that uniquely
identify that particular computer.


Because these identifiers are created by the hardware,
they cannot be hacked without running the hardware.
The bottom line is that software companies will be able
to license programs to a particular computer.
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Ethics Guide–Using Hardware to Enforce Licenses
(Continued)
Once the TCG/NGSCB has been implemented, it
can be used to enforce not only program licenses,
but content licenses as well.


Entertainment companies and other content vendors will
be able to license music, video, and similar content to a
particular computer.
With the TCG/NGSCB components in place, no other
computer will be able to play copies of that music, video,
or file.
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Ethics Guide–Using Hardware to Enforce Licenses
(Continued)
Microsoft and other software vendors will license
software to a particular computer, possibly for a
particular time period.


The license will automatically expire at the end of that
period.
Any attempt to run unlicensed software will fail and could
result in the sending of a report to the vendor that such
an attempt was made.
Software vendors can make the files unusable
after the licenses expire.
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Ethics Guide–Using Hardware to Enforce Licenses
(Continued)
Governments can ensure that sensitive
government documents are readable only on
certain machines.
The industry groups justify this program as
providing a “secure computing environment” and
attempt to spin this initiative as something that will
benefit the consumer.
Hundreds of independent observers disagree with
these stated objectives and believe the objective is
to prevent unauthorized copying of software and
files.
© 2007 Prentice Hall, Inc.
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Reflection Guide–Keeping Up to Speed
Technology change is a fact, and the only
appropriate question is, “What am I going to do
about it?”



One strategy you can take is to bury your head in the sand:
“Look, I’m not a technology person. I’ll leave it to the pros.
As long as I can send email and use the Internet, I’m
happy.”
This strategy is fine, as far as it goes, and many business
people use it. However, it won’t give you a competitive
advantage over anyone, and it will give someone else a
competitive advantage over you.
What about your department though? If the expert says,
“Every computer needs a 120GB disk,” are you going to
nod your head and say, “Great. Sell them to me!” Or, are
you going to know enough to realize that’s a big disk and
ask why everyone needs such a large amount of storage?
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Reflection Guide–Keeping Up to Speed
(Continued)
At the other end of the spectrum, are those who are
not only knowledgeable in their field, but also enjoy
information technology.

These people are sprinting along the technology conveyor
belt; they will never end up in the techno-trash, and they
will use their knowledge of IT to gain competitive
advantage throughout their careers.
Many business professionals are in between these
extremes.
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Reflection Guide–Keeping Up to Speed
(Continued)
There are a couple of strategies:




Don’t allow yourself to ignore technology.
Take a seminar or pay attention to professional events that
combine your specialty with technology.
Get involved in as a user in your organization.
Later in your career, become a member of the business
practice technology committee, or whatever they call it at
your organization.
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