3/3/2025
Management
Information
Systems
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
Reference Book:
Management Information Systems
MANAGING THE DIGITAL FIRM-12th
Edition,Kenneth C. Laudon & Jane P. Laudon
Chowdhury Ummeh Kulsum Tasnuva
Faculty Member
Department of Management
University of Chittagong
Email: [Link]@[Link]
Chapter 4
IT Infrastructure
Management Information Systems: and
ManagingEmerging
the Digital Firm, 12e Technologies
Authors: Kenneth C. Laudon and Jane P. Laudon
IT Infrastructure
IT infrastructure consists of a set of physical devices and software applications that are required
to operate the entire enterprise. IT infrastructure includes investment in hardware, software, and
services—such as consulting, education, and training.
IT infrastructure is also a set of firmwide services budgeted by management and comprising both
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
human and technical capabilities. These services include the following:
• Computing platforms used to provide computing services that connect employees, customers, and
suppliers into a coherent digital environment, including large mainframes, midrange computers, desktop
and laptop computers, and mobile handheld devices.
• Telecommunications services that provide data, voice, and video connectivity to employees, customers,
and suppliers.
• Data management services that store and manage corporate data and provide capabilities for analyzing
the data.
• Application software services that provide enterprise-wide capabilities such as enterprise resource
planning, customer relationship management, supply chain management, and knowledge management
systems that are shared by all business units.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
1
3/3/2025
IT Infrastructure
• Physical facilities management services that develop and manage the physical installations required for computing,
telecommunications, and data management services.
• IT management services that plan and develop the infrastructure, coordinate with the business units for IT services,
manage accounting for the IT expenditure, and provide project management services.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• IT standards services that provide the firm and its business units with policies that determine which information
technology will be used, when, and how.
• IT education services that provide training in system use to employees and offer managers training in how to plan
for and manage IT investments.
• IT research and development services that provide the firm with research on potential future IT projects and
investments that could help the firm differentiate itself in the marketplace.
A firm’s IT infrastructure provides the foundation for serving customers, working with vendors, and managing
internal firm business processes (see Figure 5-1).
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
IT Infrastructure
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
2
3/3/2025
Evolution of IT infrastructure (Five Stages)
• The IT infrastructure in organizations today is an outgrowth of over 50 years of evolution in
computing platforms. There have been five stages in this evolution, each representing a different
configuration of computing power and infrastructure elements.
• The five eras are general-purpose mainframe and minicomputer computing, personal computers,
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
client/server networks, enterprise computing, and cloud and mobile computing. Technologies
that characterize one era may also be used in another time period for other purposes. For
example, some companies still run traditional mainframe systems or use mainframe computers as
massive servers supporting large Web sites and corporate enterprise applications.
1. General-Purpose Mainframe and Minicomputer Era: (1959 to Present)
2. Personal computer era: (1981 to present)
3. Client/server era: (1983 to present)
4. Enterprise computing era: (1992 to present)
5. Cloud and Mobile Computing Era: (2000 to present)
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
IT Infrastructure-Evolution of IT infrastructure (Five Stages)
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
Illustrated
Management here are
Information the typical
Systems: computing
Managing configurations
the Digital Firm, 12e Authors:characterizing
Kenneth C. Laudon each [Link]
and Jane five
Laudon .
eras of IT infrastructure evolution
3
3/3/2025
Evolution of IT infrastructure (Five Stages)
1. General-Purpose Mainframe and Minicomputer Era (1959 – Present)
1. Mainframes were the dominant computing system, primarily used by large organizations for batch
processing and centralized computing.
2. Minicomputers later emerged to provide more affordable and flexible alternatives for businesses.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
3. Some organizations still use mainframes today for mission-critical applications.
4. Large banks, insurance companies, and governments still use IBM Z-series mainframes for secure
and high-volume transaction processing (e.g., ATM transactions, airline reservations).
2. Personal Computer (PC) Era (1981 – Present)
1. Marked by the introduction of affordable personal computers, starting with IBM PCs.
2. Enabled individual users to have direct access to computing power, reducing reliance on centralized
systems.
3. Led to the development of productivity software like word processors and spreadsheets.
4. Microsoft Windows OS and Apple Macintosh computers allowed individuals to use word
processors, spreadsheets, and other applications independently, revolutionizing office work.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Evolution of IT infrastructure (Five Stages)
3. Client/Server Era (1983 – Present)
• Introduced a distributed computing model where client devices (PCs) interacted with centralized
servers.
• Allowed organizations to improve data sharing and processing efficiency.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Examples include database management systems and networked applications.
• Companies use client/server architecture for corporate email systems, where employees' computers
(clients) connect to an email server for communication.
• Enterprise Computing Era (1992 – Present)
• Integrated IT infrastructure across organizations, linking different departments and systems.
• Enabled enterprise-wide applications such as Enterprise Resource Planning (ERP) and Customer
Relationship Management (CRM).
• Focused on standardization, scalability, and efficiency.
• Large companies like Toyota, Walmart, and Coca-Cola use SAP ERP software to integrate business
processes across finance, supply chain, HR, and customer management.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
4
3/3/2025
Evolution of IT infrastructure (Five Stages)
5. Cloud and Mobile Computing Era (2000 – Present)
• Provides on-demand services, reducing the need for on-premise hardware.
• Mobile computing expanded access to enterprise systems through smartphones and tablets.
• Shifted IT infrastructure to the internet, enabling remote access to computing resources.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Cloud computing
• Google Drive allows users to store files in the cloud and access them from any device.
• Amazon Web Service (AWS) provides cloud-based computing power and storage for
businesses, reducing the need for on-premise servers.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
IT infrastructure: Technology Drivers of Infrastructure Evolution
The changes in IT infrastructure we have just described have resulted from developments in computer
processing, memory chips, storage devices, telecommunications and networking hardware and
software, and software design that have exponentially increased computing power while exponentially
reducing costs. Let’s look at the most important developments.
1. Moore’s Law and Microprocessing Power
2. The Law of Mass Digital Storage
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
3. Metcalfe’s Law and Network Economics
4. Declining Communications Costs and the Internet
5. Standards and Network Effects
1. Moore’s law and micro-processing power
• Moore’s Law, proposed by Gordon Moore (co-founder of Intel), states that the number of transistors on a
microchip doubles approximately every two years, leading to exponential increases in computing power
while reducing costs.
• Example:
• Intel’s microprocessors (e.g., Intel 4004 in 1971 vs. Intel Core i9 today) have drastically improved
performance while becoming smaller and more energy-efficient.
• Modern smartphones today have more
Management Information Systems: Managing the Digital Firm, 12e
processing power than the computers used for the Apollo 11
Authors: Kenneth C. Laudon and Jane P. Laudon
moon landing in 1969. 5
3/3/2025
IT infrastructure: Technology Drivers of Infrastructure Evolution
2. Law of Mass Digital Storage
• This law states that the amount of digital information being stored doubles every 18 months,
while the cost of storage decreases significantly.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Example:
• In the 1980s, storing 1GB of data cost around $300,000. Today, 1GB of cloud storage costs
just a few cents.
• Companies like Google and Amazon provide cloud-based storage solutions at minimal
costs, making vast amounts of data storage affordable.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
IT infrastructure: Technology Drivers of Infrastructure Evolution
3. Metcalfe’s (Inventor of ethernet) Law and network economics
• Moore’s Law and the Law of Mass Storage help us understand why computing resources are
now so readily available. But why do people want more computing and storage power?
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Demand for information technology has been driven by the social and business value of digital
networks, which rapidly multiply the number of actual and potential links among network
members.
• Metcalfe’s Law states that the value of a network increases exponentially as more users connect
to it. The formula is roughly Value = n², where n is the number of users.
• Example:
• Social media platforms like Facebook, Instagram, and WhatsApp have become more
valuable as more users join, making them essential for communication and business.
• The rise of online marketplaces like eBay and Alibaba relies on network effects, where more
buyers attract more sellers, and vice versa.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
6
3/3/2025
IT infrastructure: Technology Drivers of Infrastructure Evolution
4. Declining communication costs and the Internet
• The cost of transmitting data over telecommunications networks has significantly declined due
to advancements in fiber optics, wireless technology, and satellite communication.
• In the 1990s, long-distance phone calls were expensive. Today, VoIP services like Zoom,
Skype, and WhatsApp offer free or low-cost communication over the internet.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Streaming services like Netflix and YouTube rely on high-speed internet, which has become
cheaper and more widely available.
5. Standards and network effects
• Standards ensure compatibility across different systems, making it easier for technologies to
work together and expand their reach.
• The development of Wi-Fi (IEEE 802.11) standards allows devices from different
manufacturers (laptops, smartphones, tablets) to connect to the same wireless network.
• The USB standard ensures that devices from different brands can be connected and used
interchangeably.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
IT Infrastructure Components
• IT infrastructure today is composed of seven major components. Figure 5-9 illustrates these
infrastructure components and the major vendors within each component category. These components
constitute investments that must be coordinated with one another to provide the firm with a coherent
infrastructure.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• In the past, technology vendors supplying these components were often in competition with one
another, offering purchasing firms a mixture of incompatible, proprietary, partial solutions. But
increasingly the vendor firms have been forced by large customers to cooperate in strategic
partnerships with one another. IT Infrastructure has 7 main components:
1. Computer hardware platforms
2. Operating system platforms
3. Enterprise software applications
4. Data management and storage
5. Networking/telecommunications platforms
6. Internet platforms
7. Consulting system integration services
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
7
3/3/2025
Infrastructure Components
FIGURE 5-9 THE IT INFRASTRUCTURE ECOSYSTEM
• There are seven major
components that must be
coordinated to provide the firm
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
with a coherent IT
infrastructure.
• Listed here are major
technologies and suppliers for
each component.
• Modern organizations rely on IT
infrastructure to support their
operations, enhance productivity,
and drive innovation. Below is
an explanation of each
component, followed by its
impact on businesses.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Infrastructure Components
1. Computer Hardware Platforms: This includes physical devices such as servers, desktops,
laptops, and mobile devices used to run applications and process data.
• Dell, HP, Lenovo, Apple – Provide desktop and laptop computers.
• IBM, Oracle, HPE – Offer high-performance servers used for enterprise computing.
• Apple MacBook, Dell XPS, Lenovo ThinkPad – Popular choices for business and personal computing. Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Cloud-based hardware – Amazon AWS and Microsoft Azure provide virtual computing power instead of
physical servers.
• A multinational company like Amazon uses thousands of high-performance servers in data centers to power its
e-commerce platform and AWS cloud services.
• Business Impact:
Increased processing power improves efficiency.
Scalable hardware allows businesses to grow without significant costs.
Mobile devices enable remote work and faster communication.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
8
3/3/2025
Infrastructure Components
2. Operating System Platforms: The software that manages hardware and allows applications to
run on computing devices. These include operating systems for desktops, servers, and mobile
devices. Operating systems manage hardware and provide an environment for running applications.
• Examples:
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Microsoft Windows (Windows 11, Windows Server) – Used widely in businesses.
• Linux (Ubuntu, Red Hat, CentOS) – Preferred for servers and cloud computing.
• Apple macOS – Used in Apple’s Mac computers.
• Google Android & Apple iOS – Dominant in mobile device operating systems.
• Google uses a customized version of Linux to power its data centers.
• Microsoft Windows Server is widely used for enterprise IT environments.
• Business Impact:
Provides a stable environment for applications.
Ensures compatibility with enterprise software.
Enhances security and system management.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Infrastructure Components
3. Enterprise Software Applications: Enterprise applications support business processes like
finance, supply chain, and customer relationship management (CRM). These are specialized
software systems for managing business processes.
• Enterprise Resource Planning (ERP): SAP, Oracle, Microsoft Dynamics – Integrate finance, HR, and
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
operations into a single system.
• Customer Relationship Management (CRM): Salesforce, HubSpot – Manage customer interactions and sales.
• Productivity Software: Microsoft Office 365, Google Workspace – Enable collaboration and document
management.
• Coca-Cola uses SAP ERP to manage its supply chain, finance, and human resources in a single integrated
system.
• Salesforce CRM helps companies track customer interactions and improve sales performance.
• Business Impact:
Enhances efficiency by automating processes.
Improves decision-making with real-time data insights.
Increases collaboration across departments.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
9
3/3/2025
Infrastructure Components
4. Data Management and Storage
• Refers to databases and storage solutions that help manage, retrieve, and protect data. Data
storage systems help businesses organize, retrieve, and protect data.
Database Management Systems (DBMS): Oracle Database, MySQL(Structred Query Language), Microsoft
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
•
SQL Server – Store and manage structured data.
• Cloud Storage: Amazon S3, Google Drive, Dropbox – Offer scalable data storage.
• Enterprise Storage: Dell EMC, NetApp, IBM Storage – Large-scale storage solutions for data centers.
• Netflix stores massive amounts of user data in Amazon S3 (cloud storage) to personalize movie
recommendations.
• Banks use Oracle databases to store transaction records securely.
• Business Impact:
Ensures quick and reliable data access.
Supports data-driven decision-making.
Provides security and compliance with regulations.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Infrastructure Components
5. Networking and Telecommunications Platforms: Networking infrastructure connects
computers, servers, and devices to enable communication and data exchange. These systems
connect employees, customers, and business systems via wired and wireless communication
networks.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Networking Equipment: Cisco, Juniper Networks, Huawei – Provide routers, switches, and security
appliances.
• Telecommunication Providers: AT&T, Verizon, BT – Deliver internet and telecom services.
• Wi-Fi and Wireless Networking: TP-Link, Netgear, Aruba – Enable wireless connectivity.
• Cisco networking hardware powers corporate networks for global companies.
• 5G technology allows logistics firms to track shipments in real-time.
• Business Impact:
Enables global connectivity and collaboration.
Supports remote work and cloud services.
Reduces communication costs with VoIP and video conferencing.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
10
3/3/2025
Infrastructure Components
6. Internet Platforms: Internet platforms provide cloud services, hosting, and web-based
applications.
• Amazon Web Services (AWS) provides cloud computing power for startups and enterprises.
Google Cloud offers AI and machine learning services for businesses.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
•
• Business Impact:
Reduces IT infrastructure costs by eliminating the need for physical servers.
Enables businesses to scale services on demand.
Enhances cybersecurity with cloud-based security solutions.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Infrastructure Components
7. Consulting and System Integration Services: Consulting firms help organizations integrate
different IT infrastructure components and optimize their performance. Consulting firms help
businesses integrate IT infrastructure components for maximum efficiency.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• IT Consulting Firms: Accenture, Deloitte, IBM Consulting – Help businesses implement IT solutions.
• System Integration: Infosys, Capgemini, TCS – Integrate hardware, software, and network solutions for
seamless operations.
• Cybersecurity Consulting: McAfee, Palo Alto Networks – Provide security consulting and risk management.
• Deloitte and Accenture help enterprises implement AI-powered ERP systems to automate processes.
• IBM Consulting assists banks in integrating AI-driven fraud detection systems.
• Business Impact:
Reduces risks and implementation errors.
Ensures smooth IT upgrades and digital transformation.
Helps businesses stay competitive with emerging technologies.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
11
3/3/2025
Why These Components Matter
• A business might use Dell servers (hardware) running Windows Server (OS) to host SAP ERP (enterprise
software), storing data in Oracle databases (data management), connected through Cisco routers
(networking), while using AWS cloud services (internet platforms) and hiring Deloitte (consulting) to
optimize their IT strategy.
Tesla leverages cloud computing, AI-driven analytics, and enterprise software to optimize manufacturing,
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
•
automate self-driving technology, and improve customer engagement.
Business Area Impact of IT Infrastructure
Cost Reduction Cloud computing reduces hardware expenses.
Productivity Enterprise software streamlines operations.
Security Advanced storage and networking protect business data.
Scalability Companies can expand without major IT investments.
Decision-Making Data analytics improves strategic choices.
Customer Experience Faster networks and CRM improve interactions.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Hardware Platform Trends
• The exploding power of computer hardware and networking technology has dramatically
changed how businesses organize their computing power, putting more of this power on
networks and mobile handheld devices.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• We look at seven hardware trends:
1. The emerging mobile digital platform,
2. Grid computing, virtualization,
3. Cloud computing,
4. Green computing,
5. High-performance/power saving processors, and
6. Autonomic computing
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
12
3/3/2025
Contemporary Hardware Platform Trends
1. The Emerging Mobile Digital Platform: Mobile devices, tablets, and wearable technology are
now essential for business operations, enabling employees to work from anywhere.
• Uber & Lyft use mobile apps to connect drivers with passengers, leveraging GPS and mobile payments.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Retailers like Amazon provide mobile shopping apps for seamless customer experiences.
• Business Impact:
Improves workforce mobility and flexibility.
Enhances customer engagement through mobile apps.
Enables remote collaboration using mobile-friendly tools like Microsoft Teams and Zoom.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Hardware Platform Trends
2. Grid Computing: Grid computing, involves connecting geographically remote computers into a
single network to create a virtual supercomputer by combining the computational power of all
computers on the grid. In summary, Grid computing links multiple computers to act as a single
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
supercomputer, distributing computing tasks across multiple machines.
• NASA uses grid computing for space simulations and satellite data analysis.
• Boeing uses grid computing to perform high-end aircraft design simulations.
• Business Impact:
Reduces costs by utilizing existing computers rather than buying supercomputers.
Speeds up complex calculations and data analysis.
Helps industries like healthcare, finance, and scientific research process massive datasets.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
13
3/3/2025
Contemporary Hardware Platform Trends
3. Virtualization: Virtualization is the process of presenting a set of computing resources (such as
computing power or data storage) so that they can all be accessed in ways that are not restricted by
physical configuration or geographic location. Virtualization allows multiple virtual machines
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
(VMs) to run on a single physical server, increasing efficiency and reducing hardware costs.
• IBM & VMware help companies run multiple operating systems (Windows, Linux) on one server.
• Amazon Web Services (AWS) uses virtualization to offer scalable cloud computing.
• Business Impact:
Reduces the need for physical servers, lowering IT costs.
Increases flexibility by allowing businesses to scale IT resources quickly.
Enhances disaster recovery by making system backups easier.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Hardware Platform Trends
3. Virtualization
Business Benefits of Virtualization
By providing the ability to host multiple systems on a single physical machine, virtualization helps organizations increase
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
equipment utilization rates, conserving data center space and energy usage. Most servers run at just 15-20 percent of capacity,
and virtualization can boost server utilization rates to 70 percent or higher.
Higher utilization rates translate into fewer computers required to process the same amount of work, as illustrated by BART’s
experience with virtualization in the chapter-opening case.
In addition to reducing hardware and power expenditures, virtualization allows businesses to run their legacy applications on
older versions of an operating system on the same server as newer applications.
Virtualization also facilitates centralization and consolidation of hardware administration. It is now possible for companies and
individuals to perform all of their computing work using a virtualized IT infrastructure, as is the case with cloud computing. We
now turn to this topic.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
14
3/3/2025
Contemporary Hardware Platform Trends
4. Cloud Computing: Cloud computing, in which firms and individuals obtain computer
processing, storage, software, and other services as a pool of virtualized resources over a network,
primarily the Internet. These resources are made available to users, based on their needs,
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
irrespective of their physical location or the location of the users themselves. Cloud computing
enables businesses to store data and run applications on remote servers, reducing reliance on
physical infrastructure.
• Netflix uses AWS cloud services to stream movies worldwide without managing physical servers.
• Dropbox & Google Drive allow businesses to store and access files from anywhere.
• Business Impact:
Eliminates the need for expensive on-premise servers.
Provides scalability—businesses can increase or decrease computing power as needed.
Improves collaboration with cloud-based apps like Google Workspace & Microsoft 365.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Hardware Platform Trends
5. Green Computing: Green computing or green IT, refers to practices and technologies for
designing, manufacturing, using, and disposing of computers, servers, and associated devices such
as monitors, printers, storage devices, and networking and communications systems to minimize
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
impact on the environment. Green computing focuses on energy-efficient hardware and reducing
environmental impact.
• Google operates carbon-neutral data centers, using AI to optimize energy consumption.
• Apple builds eco-friendly products using recycled materials and energy-efficient processors.
• Business Impact:
Reduces electricity and cooling costs in data centers.
Improves brand reputation for sustainability-conscious companies.
Helps businesses meet environmental regulations and reduce carbon footprints.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
15
3/3/2025
Contemporary Hardware Platform Trends
6. Autonomic Computing: With large systems encompassing many thousands of networked
devices, computer systems have become so complex today that some experts believe they may not
be manageable in the future. One approach to dealing with this problem is to employ autonomic
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
computing. Autonomic computing is an industry-wide effort to develop systems that can configure
themselves, optimize and tune themselves, heal themselves when broken, and protect themselves
from outside intruders and self-destruction. Autonomic computing refers to self-managing systems
that automatically detect and fix issues without human intervention.
• IBM Watson AI helps companies automate IT system monitoring and troubleshooting.
• Microsoft Azure AI can predict server failures and self-heal issues before they cause downtime.
• Business Impact:
Reduces IT downtime, ensuring continuous business operations.
Cuts IT support costs by automating system maintenance.
Enhances cybersecurity by automatically detecting and responding to threats.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Hardware Platform Trends
7. High-performance And Power-saving Processors: Another way to reduce power requirements
and hardware sprawl is to use more efficient and power-saving processors. Contemporary
microprocessors now feature multiple processor cores (which perform the reading and execution of
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
computer instructions) on a single chip. New processors improve speed and efficiency, reducing
power consumption while delivering superior performance.
• Apple’s M1 and M2 chips increase performance while using less energy.
• Intel and AMD processors power data centers, reducing electricity costs for cloud providers.
• Business Impact:
Boosts productivity with faster computing speeds.
Saves power, reducing operational costs for businesses.
Improves battery life for mobile devices, enhancing usability for remote workers.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
16
3/3/2025
Contemporary Hardware Platform Trends
Real-World Example: Tesla
• Tesla uses cloud computing to update vehicle software remotely.
• Autonomic computing powers self-driving AI, automatically adapting to driving conditions.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Green computing is central to Tesla’s mission of sustainable energy solutions.
Hardware Trend Business Impact
Enables remote work, mobile commerce, and customer
Mobile Digital Platform
engagement.
Grid Computing Enhances performance for data analysis and simulations.
Virtualization Saves costs by reducing physical hardware needs.
Cloud Computing Provides scalability, flexibility, and cost savings.
Green Computing Lowers energy consumption and improves sustainability.
High-Performance Processors Improves efficiency and reduces power costs.
Autonomic Computing
Management Information Systems: Managing the DigitalAutomates
Firm, 12e ITKenneth
Authors: management, reducing
C. Laudon and Jane P. Laudon downtime and costs.
Contemporary Software Platform Trends
• As businesses evolve, software platforms are becoming more flexible, scalable, and cost-
effective. Here are the four key themes shaping modern software evolution, explained with real-
world examples and their impact on businesses.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• There are four major themes in contemporary software platform evolution:
[Link] and open source software
[Link] and Ajax
[Link] services and service-oriented architecture
[Link] outsourcing and cloud services
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
17
3/3/2025
Contemporary Software Platform Trends
1. Linux And Open Source Software
• Linux is a powerful, flexible, and free operating system that’s widely used around the world,
especially for businesses and web servers. It might seem a bit different from what you’re used to
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
(like Windows or macOS), but it's easy to use once you get the hang of it!
• Open-source software (OSS) is freely available for modification and redistribution. Linux is one
of the most popular open-source operating systems, used by enterprises worldwide.
• Google uses Linux-based servers to power its search engine and cloud infrastructure.
• Android OS (which runs on billions of smartphones) is based on Linux.
• Apache Web Server, a widely used web hosting software, is open source.
• Business Impact:
Cost Savings: Reduces software licensing costs.
Security & Stability: Regular updates from a global developer community.
Customization: Businesses can modify code to fit their needs.
Scalability: Ideal for startups and enterprises managing large IT infrastructures.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Software Platform Trends
2. Software For The Web: Java And Ajax
• Java is a programming language known for its "write once, run anywhere" capability, making it
ideal for web and mobile applications. It is a programming language used to create software,
apps, and websites that work on many different devices, like computers and phones.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Ajax (Asynchronous JavaScript and XML) enables dynamic, interactive web applications
without reloading the page. AJAX lets websites update or load new information in the
background without making you wait for the entire page to reload. For example, when you’re
scrolling through a social media feed and new posts appear without refreshing the whole page –
that’s AJAX at work.
• Amazon, eBay, and Netflix use Java for scalable, high-performance applications.
• Google Maps uses Ajax to allow smooth, real-time updates when users scroll or zoom in.
• Facebook and Twitter use Ajax to load new posts dynamically without refreshing the entire page.
• Business Impact:
Cross-Platform Compatibility: Java runs on multiple devices (PCs, smartphones, IoT).
Faster User Experience: Ajax improves web application responsiveness.
Scalability & Performance: Java is ideal
Management Information Systems: Managing the Digital Firm, 12e
for handling millions of transactions (e.g., banking apps).
Authors: Kenneth C. Laudon and Jane P. Laudon
18
3/3/2025
Contemporary Software Platform Trends
3. Web Services And Service-oriented Architecture
• Web services allow applications to communicate over the internet, while Service-Oriented
Architecture (SOA) enables different software components to work together as services.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• PayPal provides web services that allow businesses to integrate online payments.
• Amazon Web Services (AWS) offers cloud-based services that companies can use for storage, AI, and
computing.
• Uber’s app connects riders and drivers using web services and SOA.
• Business Impact:
Integration: Companies can connect different applications seamlessly.
Cost Savings: Reduces software development time by reusing services.
Flexibility: Businesses can quickly adapt to new market demands.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Software Platform Trends
4. Software Outsourcing And Cloud Services
• Software outsourcing involves hiring external vendors to develop or manage software solutions.
Cloud services provide businesses with on-demand computing power, storage, and software over
the internet.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Google Drive & Dropbox offer cloud storage, reducing IT infrastructure costs.
• Zoom and Microsoft Teams operate on cloud platforms, enabling seamless remote work.
• Business Impact:
Lower Costs: No need for expensive in-house IT infrastructure.
Scalability: Businesses can increase or decrease cloud usage as needed.
Remote Accessibility: Enables employees to work from anywhere.
• There are three external sources for software:
1. Software packages from a commercial software vendor,
2. Outsourcing custom application development to an external vendor, and
3. Cloud-based software services and Authors:
[Link] C. Laudon and Jane P. Laudon
Management Information Systems: Managing the Digital Firm, 12e
19
3/3/2025
Contemporary Software Platform Trends
Software packages from a commercial software vendor
• Ready-made software solutions designed for general business needs.
• Includes ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
accounting software.
• Microsoft Office 365 for productivity (Word, Excel, PowerPoint).
• SAP & Oracle ERP for managing business operations.
• Salesforce CRM for customer relationship management.
• Business Impact:
Faster Implementation – Businesses can deploy software quickly.
Cost-Effective – Cheaper than custom development.
Regular Updates & Support – Vendors provide continuous improvements.
Limited Customization – Might not fit all unique business needs.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
Contemporary Software Platform Trends
Software Outsourcing
• Hiring third-party developers to create custom software tailored to a company’s specific needs.
• Uber & Airbnb outsourced their initial app development to third-party firms.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Banks & Healthcare providers hire IT firms to develop secure, industry-specific applications.
• Business Impact:
Tailor-Made Solutions – Designed to fit exact business requirements.
Focus on Core Business – Companies don’t need an in-house IT team.
Cost Savings – Often cheaper than maintaining an internal development team.
Dependency on Vendor – Businesses rely on external partners for updates and maintenance.
Security Risks – Sensitive business data is handled by an external firm.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
20
3/3/2025
Contemporary Software Platform Trends
• Cloud-Based Software Services and Tools
• Software provided as a service (SaaS) over the internet, eliminating the need for local
installation.
Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd.
• Google Drive & Dropbox for cloud storage.
• Zoom & Microsoft Teams for virtual meetings.
• Amazon Web Services (AWS) & Google Cloud for cloud computing.
• Business Impact:
Lower IT Costs – No need for expensive hardware or in-house IT teams.
Scalability – Businesses can increase or decrease usage as needed.
Remote Accessibility – Employees can work from anywhere.
Internet Dependency – Downtime can disrupt operations.
Security Concerns – Data is stored on third-party servers.
Management Information Systems: Managing the Digital Firm, 12e Authors: Kenneth C. Laudon and Jane P. Laudon
41
21