Information Technology Reference
In-Depth Information
As you read this chapter, consider the following:
•
How does the type of hardware a company purchases—the size and amount of
computers—affect the way the company operates?
•
Businesses are in constant fluctuation—growing, diversifying, acquiring, and always
working to reduce costs. How do these conditions and requirements affect the
purchase of the hardware on which information systems run?
Organizations invest in computer hardware to improve worker productivity, increase
revenue, reduce costs, provide better customer service, speed up time-to-market, and
enable collaboration among employees. Organizations that don't make wise hard-
ware investments will be stuck with outdated equipment that is unreliable and
cannot take advantage of the latest software advances. Such obsolete hardware can
place an organization at a competitive disadvantage. Managers, no matter what their
career field and educational background, are expected to help define the business
needs that the hardware must support. In addition, managers must be able to ask
good questions and evaluate options when considering hardware investments for
their area of the business. Managers in marketing, sales, and human resources often
help IS specialists assess opportunities to apply computer hardware and evaluate the
options and features specified for the hardware. Managers in finance and accounting
especially must keep an eye on the bottom line, guarding against overspending, yet
be willing to invest in computer hardware when and where business conditions
warrant it.
Why Learn About
Hardware?
Today's use of technology is practical—it's intended to yield real business benefits, as
demonstrated by UB Spirits. Employing information technology and providing additional
processing capabilities can increase employee productivity, expand business opportunities,
and allow for more flexibility. This chapter concentrates on the hardware component of a
computer-based information system (CBIS).
Hardware
consists of any machinery (most of
which uses digital circuits) that assists in the input, processing, storage, and output activities
of an information system. When making hardware decisions, the overriding consideration
of a business should be how hardware can support the objectives of the information system
and the goals of the organization.
hardware
Any machinery (most of which uses
digital circuits) that assists in the
input, processing, storage, and
output activities of an information
system.
OF TECHNOLOGY
To assemble an effective and efficient system, you should select and organize components
while understanding the trade-offs between overall system performance and cost, control,
and complexity. For instance, in building a car, manufacturers try to match the intended use
of the vehicle to its components. Racecars, for example, require special types of engines,
transmissions, and tires. Selecting a transmission for a racecar requires balancing how much
engine power can be delivered to the wheels (efficiency and effectiveness) with how expensive
the transmission is (cost), how reliable it is (control), and how many gears it has (complexity).
Similarly, organizations assemble computer systems so that they are effective, efficient, and
well suited to the tasks that need to be performed.
People involved in selecting their organization's computer hardware must clearly under-
stand current and future business requirements so they can make informed acquisition
decisions. Consider the following examples of applying business knowledge to reach critical
hardware decisions.
