Chapter Extension 4

Preparing a Computer Budget

© 2008 Pearson Prentice Hall,Experiencing MIS, David Kroenke

CE 4-2 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Study Questions

Is $80,000 enough? What process should I use for establishing a

budget? What hardware do we need? What software do we need? How do I plan for change? What is the role of the IT department? Is $80,000 enough?

CE 4-3 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Is $80,000 Enough?

Managers need to carefully consider budgets– Do not want to go over budget– Must control costs– Need to justify expenditures

CE 4-4 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Processes for Establishing a Budget

Figure CE4-1

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What Hardware Do We Need?

Laptop or desktop? CPU Main memory Magnetic disks Video displays

CE 4-6 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Laptop Vs. Desktop

Laptops– Portable– Force many components into small shell– Heat dissipation problems

Desktops – Cheaper– More reliable

CE 4-7 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

CPU

Useful for processing data that already resides in main memory

Fast CPU needed for:– Complicated calculations and manipulations of

data– Processing large graphics files

CE 4-8 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Main Memory

More important than CPU Key performance factors are speed and size

– Cannot change speed– Can increase amount of memory

More memory beneficial if:– You run different applications at same time– Your computer is constantly swapping files

CE 4-9 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Magnetic Disks

Provide long-term, nonvolatile storage Type and size affect performance Magnetic disks

– Data recorded in concentric circles– Disks spin inside disk unit– Read or write by read/write head

Time required to read data depends on:– Rotational delay– Seek time

Data transfer depends on width and speed of channel

CE 4-10 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Optical Disks

Two types:– CDs– DVDs

Store data differently Different capacities and speed ROM = read-only memory R = record data once RW = rewritable

CE 4-11 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Video Displays

Two types:– CRTs

Cathode ray tubes Big and bulky Cost less

– LCDs Liquid crystal display Slimmer Last longer

CE 4-12 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Pixels

Small spots on screen displayed by monitors Represented in main memory Number depends on size of monitor and

mechanism that creates image Optimal resolution

– Size of pixel grid that gives best sharpness and clarity

CE 4-13 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Network Access

NIC device– Support wired or wireless connections– Many computers support both types of

connections– Can add device if needed– Easy upgrade

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Printers

Can be attached to computer– Accessed via that computer

Can be equipped with NIC – Accessed directly– Frees up computer

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What Software Do We Need?

Figure CE4-4

CE 4-16 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Software

May be included in purchase of hardware Site license

– License to place software product on all equipment at site– Per unit price is less than unit retail price– Organization doesn’t have to track which computers have

software installed

Upgrade– Vendors allow users to purchase new version at reduced

cost or for free

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Operating Systems

Usually determined by organizational policy Usually standardized to single system IT department installs software and upgrades

in most businesses

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Horizontal Market Software

Microsoft Office– Licensed in different configurations– Access

OpenOffice– Open-source– License-free– Popular with cost-conscious– No personal DBMS

CE 4-19 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Vertical Market Software

Contact managers– Goldmine– Act!

Engineering software– AutoCad

Licenses can be expensive– User licenses– Seat licenses

CE 4-20 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

How Do I Plan for Change?

Will there be changes in the number of employees in each job category?

Will there be changes in your departmental responsibilities?

Will changes produce different hardware and software requirements?

Will there be a merger with or acquisition of another department?

Will the vendor stop supporting a particular product that you use?

CE 4-21 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

How Do I Plan for Change? (continued)

Do you need to upgrade software? Do you need to upgrade hardware to support

new software? Do you need to rotate computers?

CE 4-22 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

What Is the Role of the IT Department?

Help desk– Assists end users

Maintains networks and servers Administers databases Plans IT Develops and installs new systems Provides secure computing environment Sets standards

CE 4-23 © 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

Active Review

Is $80,000 enough? What process should I use for establishing a

budget? What hardware do we need? What software do we need? How do I plan for change? What is the role of the IT department? Is $80,000 enough?