Transcript MC 707 - Computer Information Systems

MP3 / MD740
Strategy & Information Systems
Sept. 15, 2004
Computing Hardware – Moore's Law, Hardware
Markets, and Computing Evolution
Network Effects, Standards, and Competition:
The Microprocessor Market, Operating
Systems and Computer Hardware Markets
Topics Covered
• Components of an Information System
– Changing IS landscape & managerial implications
• Hardware
– Moore’s Law & the Evolution of Computing Competition
• Network Externalities
– Defined, Strategic Importance, Examples
• The Microprocessor Market
– Intel vs. the Competition
• Operating Systems & Hardware Markets
– Competition Among Operating Systems and Computing
Platforms
– The Linux Challenge
FoxMeyer
Massive System Projects
Mergers & Acquisitions
Regulation & Deregulation
Globalization
The Internet
Technical Advances
Skills Crunch
5 Components of an IS
Data
Hardware
People
Information
Systems
Software
Procedures
Source: Intel Corp.
Types of Computers
(the distinction is blurring)
• Personal / Microcomputers
– single-user, usually single processor, compact
– desktop, laptop, palmtop, PDA, specialized
• Mid-range Systems (Servers)
– may have more than one microprocessor, typically
multi-user & focused on a functional area or task
(marketing, plant management, web server).
– Vintage midranges (proprietary OS): IBM AS/400, DEC
VAX
– Servers (UNIX/Win): Intel-based, Dell, HP, IBM, Sun
Types of Computers (cont.)
• Mainframes (IBM)
– large, expensive computer, supports multiple user groups,
terminals, run several applications at once.
– costly: support staff, air conditioning, software
– secure: centralized programs & data are relatively easy to
backup, maintain, upgrade, and monitor
• Super Computers (NEC, IBM, Hitachi, HP, Intel, Cray)
– massively parallel and/or clustered
– used to solve problems requiring long, difficult calculations
(e.g.airline scheduling, advanced modeling - biotech,
weather, risk management)
– evolution to grid computing…
Network Externalities
(a.k.a. Network Effects, Metcalfe’s Law)
• A product or service becomes more valuable as its
installed base expands
• Why do consumers care about installed base?
– Exchange opportunities
– Stability
– Extrinsic, complementary benefits
More Exchange
Opportunities
More Members
Why are Markets for Network
Goods Different?
• Market competition occurs very early and is
particularly fierce
• Markets are ‘tippy’ and subject to
bandwagons
• Markets exhibit monopolistic tendencies
• The ‘best’ technology or highest quality
product doesn’t always win
Software
Operating Systems
control hardware and provide an environment in
which applications execute
Application Programs
end-user program that performs a specific function
applications
Individual examples: word processor, spreadsheet.
operating system
Collections of apps: Office (suite), SAP R/3 (ERP)
Applets
small application programs which execute within a
larger environment (e.g. Java applets within
browser)
Competition in the OS Space
Microsoft
Consumer
Personal
Devices
Computers
Windows Mobile Windows XP
Ultimate TV
Xbox
Tablet PC
Windows XP Media Center Edition
Competition Palm (handheld)
Liberate (set top)
Sony
Apple
Mutli-User
Systems
Windows 2000
Windows Server
2003
Unix (Sun, IBM,
HP / Compaq)
Linux
The Microsoft Stimulus Package
• Microsoft will return $9
billion to individual
investors that hold the
stock (excluding all the
institutions & funds).
• The Bush child tax
credit returned $14
billion.
• Bill Gates has pledged
all $3.4 billion to his
charitable foundation.
Comments from Windows Source Code
private\genx\shell\inc\prsht.w:
// we are such morons. Wiz97 underwent a redesign between IE4 and IE5
private\shell\ext\ftp\ftpdrop.cpp:
// We have to do this only because Exchange is a moron.
private\shell\shdoc401\unicpp\desktop.cpp:
// We are morons. We changed the IDeskTray interface between IE4
private\shell\browseui\itbar.cpp:
// should be fixed in the apps themselves. Morons! .