BSAD 281.66: Technology Management - Chapter 15 Notes

Understanding Software: A Primer for Managers

Section 1: Importance of Software

• Software is crucial for firms and strategic decision-making.
• It's present in computers, cell phones, cars, cameras, and other technologies.
• Software is a computer program or a collection of programs, providing instructions for hardware.
• Managers who understand software can:
  • Better understand technology's possibilities and impact.
  • Make informed decisions about IT's strategic value and potential savings.
  • Appreciate challenges, costs, security vulnerabilities, legal/compliance issues, and limitations in technology solutions.

Section 2: What is Software?

• Software examples:
  • Web browsers
  • Word processors
  • Smartphone apps
  • Bank ATMs
• Operating System:
  • Controls computer hardware.
  • Establishes standards for application development and execution.
• Applications:
  • Desktop programs.
  • Enterprise software.
  • Utilities.
  • Programs performing specific tasks for users and organizations.
• Figure 15.1: The Hardware/Software Layer Cake
  • Illustrates the layers: User, Application, Operating System, Hardware.
  • Examples are provided for each layer.

Section 3: Operating Systems

• Operating systems control computing hardware.
• Provide a common set of controls for managing computer hardware.
• Simplify user interaction with computers and application software development.
• Graphical User Interface (GUI) elements are displayed on the computer display hardware.
• Files are saved on hard drives or other storage devices hardware.
• Include control panels, desktop file management, and support programs for hardware interaction.
• Designed to provide programmers with a common set of commands for interacting with the hardware.
• Figure 15.2: Smartphone OS Market Share
  • Presents market share data for Android vs. iOS in the USA and China.

Section 4: Firmware and Embedded Systems

• Firmware: Software stored on nonvolatile memory chips.
• BIOS (Base Input/Output System): Base-level commands for controlling a hardware device.
• Embedded Systems: Special-purpose software included inside physical products.
• Examples: Cars, picture frames, audio speakers, aircraft engines, photocopiers, and heating/air conditioning systems.

Section 5: Application Software

• Platform: Products and services enabling software development and integration.
• Application software performs tasks that users and firms need.
• Desktop Software: Applications installed on a personal computer for a single user.
• Enterprise Software: Applications addressing the needs of multiple users throughout an organization.
• Figure 15.3: ERP in Action
  • Illustrates the integration of various business functions by ERP.
  • Manufacturing, Inventory, Sales, Human Resources, Purchasing, Order Tracking, Decision Support.
• Software Package: Software product offered commercially by a third party.
• Enterprise Resource Planning (ERP): Integrates business functions such as:
  • Sales and Inventory
  • Manufacturing
  • Human Resources
  • Purchasing
  • Order Tracking
  • Decision Support

Section 6: Enterprise Software Categories

• Customer Relationship Management (CRM): Systems supporting customer-related sales and marketing activities.
• Supply Chain Management (SCM): Systems managing the value chain, from raw materials to finished products.
• Business Intelligence (BI) Systems: Systems providing reporting and analysis for organizational decision-making.
• Database Management System (DBMS): Software for creating, maintaining, and manipulating data.
  • Stores and retrieves data used by enterprise applications.
  • Firms with common database systems benefit from increased organizational insight.
• Figure 15.4: Database Management System
  • Illustrates how a DBMS can work with applications within and outside the firm.

Section 7: Cloud Computing and AI

• Cloud Computing: Software and computing functions delivered as a service via the Internet.
  • Examples: ERP systems, Google Docs, Sheets, and Slides.
• Artificial Intelligence (AI) and Machine Learning Systems: Mimic or improve upon functions requiring human intelligence.

Section 8: Packaged Enterprise Systems: Rewards and Risks

• Enterprise systems can save money and boost organizations.
• Streamline processes, make data usable, and ease system linking across the firm and with business partners.
• Smoothly working internal systems facilitate partnerships.
• Efficient and integrated systems can make firms attractive acquisition targets or ease acquisitions.

Section 9: Distributed Computing

• Distributed Computing: Systems in different locations communicate and collaborate to complete tasks.
• Server:
  • Software/Hardware that fulfills the requests of a client.
• Client:
  • Software program that makes requests of a server program.
• Figure 15.5: Multitiered Distributed System
  • Illustrates the architecture with web server, app server, and database.
  • Clients, Company's systems, and Bank's systems are connected.

Section 10: Application Servers, Web Services, and APIs

• Application Server: Software that houses business logic for use by multiple applications.
• Web Services: Small code pieces accessed via the application server for machine-to-machine interaction over a network.
• Application Programming Interface (APIs): Programming hooks or guidelines allowing programs to request services.
• Service-Oriented Architecture (SOA): Set of Web services built around an organization’s processes.
• Platforms: Products and services enabling software development and integration.
• Examples of Web Services/APIs:
  • Google Maps used by other firms.
  • Spotify’s API integration with Uber.
  • Uber’s API integration allowing United Airlines to summon an Uber.
  • Drizly (alcohol delivery) built the platform on APIs for liquor stores, distributors, etc.

Section 11: Expedia Affiliate Network

• Figure 15.6: Expedia Affiliate Network
  • Shows how united.com, Aer Lingus, Greyhound, and Hipmunk access Expedia's travel inventory, technology and support team.

Section 12: Data Sharing Formats

• EDI (Electronic Data Interchange): Standards for exchanging formatted data between computer applications.
• Extensible Markup Language (XML): Tagging language to identify data fields for use by other applications.
• JSON (JavaScript Object Notation): Data interchange format used to format data via APIs.
• Figure 15.7: JSON and XML Examples
  • Illustrates the syntax of JSON and XML for representing employee data.

Section 13: Mobile Apps Accessing APIs

• Figure 15.8: Building Apps Accessing APIs
  • Shows a mobile app accessing APIs to display restaurant information and weather details.

Section 14: Programming Languages and Software Development

• Programming Language: Provides standards, syntax, statements, and instructions for writing software.
  • Examples: C++, C#, Objective-C, Visual Basic, Java, SQL.
• Integrated Development Environment (IDE): Includes an editor, debugger, and compiler.
  • Professional programmers use IDEs to write code.
• Compile: Conversion of human-readable code into microprocessor-executable form.
• Figure 15.9: Apple's Xcode IDE
  • Shows the interface of Apple's Xcode IDE with code samples.
• Java: A programming language providing platform independence for application developers.
• Scripting Languages: Programming tools executed within applications.
  • Examples: Python, VB Script, JavaScript
  • Scripting languages are interpreted rather than compiled.

Section 15: Python and CircuitPython

• Adafruit: A hardware company manufacturing computer products.
• Designs and manufactures boards for embedded systems projects, robotics, and IoT devices
• Created CircuitPython: Open source extension to the Python language.
  • Runs on 300+ devices
  • Code written for one board should run on other hardware with similar capabilities.

Section 16: AI and Programming

• LLMs (Large Language Models):
  • Can generate answers and write code.
  • Write solid code from basic requests but output is imperfect.
• Programming is not going away; more knowledge workers will use LLMs to write logic.
• Students and educators should:
  • Focus on understanding fundamentals.
  • Understand Code execution.
  • Develop a mental model of how computing works.
  • Understand Data structures, conditions, functions, solutions.
  • Understand Security vulnerabilities.

Section 17: Low Code/No Code (LCNC)

• Low Code/No Code: Visual software development tools requiring little to no coding.
• Many large IT firms offer LCNC tools.
• The low-code development technology market estimated at 27 billion in 2023.
• LCNC environments used in many ways:
  • Users with little technical skill can create apps.
  • Staff can create and modify system prototypes.
  • End-users can draft user interfaces.
  • Software developers can work with end-users.
  • Information staff can create systems for immediate needs.
• Concerns:
  • Poorly designed systems.
  • A citizen developer not fully aware of legal requirements.
  • System abandoned by the creating firm.
  • Security concerns.

Section 18: Software Development Methodologies

• Software Development Methodologies: Methods to divide tasks that are related to software creation targeted at building better products with stronger product management.
• The savvy manager knows enough to inquire about the development methodologies and quality programs used to support large-scale development projects.

Section 19: Software Development Lifecycle (SDLC)

• Software Development Lifecycle (SDLC): Process for planning, creating, testing, and deploying an information system.
  • Planning
  • Analysis
  • Design
  • Testing
  • Implementation
  • Maintenance

Section 20: Waterfall vs. Agile

• Waterfall Method: Linear sequential approach.
  • Benefits: Surfacing requirements upfront, a blueprint to follow, prevents feature creep, strong documentation.
  • Limitations: Rigid, can take a long time, requires precise forethought.
• Agile Development: Iterative development with frequent product rollouts and constant improvement.
  • Has become the dominant software development methodology.
  • Benefits: Speed and flexibility.
  • Limitations: Products might develop too quickly with less quality.
  • Techniques used: test-driven design, behavior-driven development, pair programming, extreme programming, and refactoring.

Section 21: Scrum

• Scrum: Managing agile projects by breaking deliverables into sprints (one to six weeks) by teams of less than ten.
  • Roles: Product owner, scrum master, and team.
  • Artifacts: Product vision, product backlog, sprint backlog, task board, burndown chart.
  • Ceremonies: Sprint planning, daily scrum, sprint demo and review, and retrospective.

Section 22: Total Cost of Ownership (TCO)

• All of the costs associated with any form of capital, including a software system.
• Costs associated with creating and supporting an organization’s information systems:
  • Programming costs
  • Purchase, configuration, and licensing costs
  • Design and documentation costs
  • Testing costs
  • Also includes training, user support, assessing comments, compliance, backing up data, planning for redundancy and disaster recovery, and managing security issues.
• Total Cost of Ownership: An economic measure of the full cost of owning a product, including direct (purchase price) and indirect costs (training, support, maintenance).

Section 23: Why Technology Projects Fail?

• Poor goal setting
• Weak project leadership
• Limited executive commitment
• Poorly forecast resource needs
• Project complexity
• Scope Creep
• Ineffective project reporting
• Inappropriate technical choices
• Inadequate testing and deployment procedures
• Internal and external politics
• Time and delivery pressures
• Capability Maturity Model Integration (CMMI): A process-improvement approach that can assist in assessing the maturity, quality, and development of certain organizational business processes, and suggest steps for their improvement.

Section 24: HealthCare.gov Failure and Rescue

• HealthCare.gov: National healthcare exchange for shopping, comparing, and enrolling in healthcare plans.
  • Problems: Bug-ridden, flawed design, high cost, lacked clear leadership, could not handle demands, lacked measurement systems, poor user experience.
• The Fix:
  • Clear leadership
  • Seasoned technologists
  • Clear priorities
  • Results reporting
  • Coordination implementation
  • Stand-up meetings
• The result: Over 8 million users signed up.

Section 25: Software-Centric Products

• For a firm to lead in a digitally transformed, software-centric business, it must have the skills to ensure its software will "eat" and the firm won't "be eaten" by competitors.
• Consider electric vehicles (EVs)—the shift to EVs will impact:
  • Petroleum companies
  • Gas stations
  • Auto repair
  • Servicing Firms
  • Auto manufacturers

Section 26: VW's Electric Vehicle Woes

• Volkswagen's EV expansion faced issues with the iD3:
  • Heads-up display didn't work.
  • Entertainment system problems.
  • Inaccurate range calculators.
  • Glitchy smartphone connections.
  • Inconsistent charging software.
  • Unreliable charging route planning.
• VW’s woes show how difficult it can be to add software to products, that firms need to have management that can successfully plot a roadmap to consider all of the requirements from design to security and to integrate with other products.