Chapter 3:

Information Technology
Infrastructure
& New Technologies
[ New Technologies: AI, blockchain, quantum computing, cybersecurity,
robotics, generative AI, edge computing, and the Internet of Things (IoT) ]
 2
Study questions
Q1 What do business professionals
need to know about computer
hardware?
Q2 What do business professionals
need to know about software?
Q3 What are emerging technologies
like cloud computing, IoT,
artificial intelligence and
blockchain? How are they applied to
logistics?
 3

Q1 What do business
professionals need to know
about computer hardware?
 4
basic hardware categories
 hardware consists
of electronic
components and
related gadgetry
that input, process,
output, and store
data according to
instructions
encoded in
computer programs
or software
Source: textbook [1], pg 96
 5
Computer Data
 Computers represent data using
binary digits, called bits.
A bit is either a 0 or a 1
 Bits are grouped into 8-bit chunks
called bytes.
 Computer data, whether numbers,
alphabetic characters or photos,
are simple a string of bits.
Computer Data - Important Storage-Capacity 6
Terminology

Approximat
Term Definition e # of
Bytes
Number of bits to represent
Byte (B)
one character
Kilobyte (KB) 210 bytes 1 thousand
Megabyte
220􏰁 or 1,048,576 bytes 1 million
(MB)
Gigabyte
230􏰁 or 1,073,741,824 bytes 1 billion
(GB)
240 or 􏰁 1,099,511,627,776
Terabyte (TB) 1 trillion
bytes
Petabyte (PB) 250 bytes 1 quadrillion
Exabyte (EB) 260 bytes 1 quintillion
Zettabyte 270 bytes 1 sextillion
 7
How does a computer work?
 CPU transfers a program or data from a storage disk to
main memory.
 CPU moves a program instruction from main memory into
the CPU via the data channel, or bus.
 Cache memory, part of CPU, is very fast memory used to
store frequently used instructions in order to speed up
processing.
 Main memory contains operating system (OS), a program
that controls computer’s resources, and blocks data and
instructions.
 Main memory too small to hold all the program code and
data needed for processing, so operating system loads
programs into memory in chunks. Then, uses memory
swapping to move chunks of instructions and data in and
 8
How does a computer work?

Source: textbook [1], pg 99

Why Does a Manager Care How a Computer Works? 9

 Depending on employee’s tasks and apps needed,

you can:
 Order computers with varying sizes of main memory.
 improve computer performance by adding more memory
 order computers with CPUs of different speeds (E.g. 1.5
Gigahertz)
 Example:
  for An employee who does only simple tasks
 1GB RAM, a 32-bit, 1.5 Gigahertz CPU.
  an employee who processes many programs at the
same time/large files:
 >3GB RAM, a 64-bit, dual processor with >3.5 Gigahertz
What Is the Difference Between a Client and a Server 10

Source: textbook [1], pg 100

 11
Client and Server
 Client computers
 computers used by an individual for word
processing, spreadsheets, database access,
etc.
 most client computers have software that
enables them to connect to a private
network at work or school, or to the public
Internet.
 Server computers
 provide some service (such as email;
serving pages on a website; processing
large, shared databases; or other functions)
to multiple users.
 12
Client and Server
 A typical server:
 must be fast and have multiple CPUs
 needs lots of main memory, at least 4GB
 requires very large disks – often a terabyte or
more

 Because servers are almost always

accessed from another computer via a
network:
 have limited video displays, or no display at
all
 many have no keyboard
 13
Client and Server
Server farm
 An organised collection of servers
 Servers in a farm coordinate their activities in a sophisticated
and fascinating technology dance.
 Servers receive and process hundreds, possibly thousands, of
service requests per minute:
 in December 2005, Amazon.com processed an average of
41 order items per second for 24 hours straight.
 Servers in a farm hand off partially processed requests to each
other while keeping track of the current status of each request:
 they can pick up the pieces when a computer in the farm
fails
 all of this is done in the blink of an eye.
 14
A Server farm

Source: textbook [1], pg 101

 15
Grid
Grid computing
 A network of computers that operates as an
integrated whole; the grid appears to be a single
computer.
 Grid may support a server farm, or some other
computing need.
 Organisations lease time on a grid from other
organisations that create, support and manage
that grid, e.g.
 IBM leases time on a grid for applications
that require intensive arithmetic computing
 also leases time on a special-purpose grid
to archive medical records.
 16
Cloud computing
Cloud computing
 Refers to a computing network on the
Internet.
 When you access a video from a site, such as
Facebook, you are accessing computing
services in the cloud:
 you don’t know which server is processing
your Facebook requests or which server is
playing the video
 you just know that somewhere in the
cloud one or more servers is causing the
video to be downloaded to your computer.
 17

Q2 What do business
professionals need to
know about software?
 18
Basic categories of software

Source: textbook [1], pg 104

Important software constraints 19

A particular version of an operating

system is written for a particular type
of hardware.
For example:
 Microsoft Windows works only on processors from
Intel and companies that make processors that
conform to the Intel instruction set (the commands
that a CPU can process)
 32-bit version of Windows run only on Intel
computers with 32-bit CPUs and the 64-bit version of
Windows runs only on Intel computers with
64-bit CPUs
 Linux has different versions for different instructions
sets and for both 32- and 64-bit computers
Important software constraints 20

 Application programs are written to

use a particular operating system

For example:
 Microsoft Access runs only on Windows
operating systems
 some applications come in multiple
versions, e.g.
 Windows and Macintosh versions of
Microsoft Word.
 21
Four major operating
systems

Source: textbook [1], pg 105

 22
Own versus license
 License
 right to use a program, but not own it

 Site licence
– Flat fee to install software product on
all company computers or all
computers at a specific site.
 Open Source
– No license fee.
 23
Virtualization
 Virtualization: the process by which one computer
hosts the appearance of many computers
 One operating system, called the host operating
system runs one or more operating systems as
applications.
 Those hosted operating systems are called
virtual machines (vm)
 Each VM has disk space and other resources allocated to it
 Host operating system controls activities of virtual machines to prevent
them from interfering with one another.
 Three types of virtualization exist:
 • PC virtualization
• Server virtualization
• Desktop virtualization
 24
How Virtual Machine Example

Source: textbook [1], pg 107

What Types of Applications Exist, and How Do 25
Organizations Obtain Them?

Application software
 performs a service or function

 some are general purpose, such as

Microsoft Excel, Access or Word

 others provide specific functions, e.g.

QuickBooks provides general ledger and
other accounting functions.
What Types of Applications Exist, and How Do 26
Organizations Obtain Them?

Source: textbook [1], pg 109

categories of application programs 27

Horizontal-market application software

 provides capabilities common across all organisations
and industries
 used in a wide variety of businesses, across all
industries
 purchased off-the-shelf, and little customisation of
features is necessary (or possible).

Vertical-market application software

 serves needs of a specific industry
 usually can be altered or customised

One-of-a-kind application software

 developed for a specific, unique need.
How do organisations acquire application software? 28

 Off-the-shelf-software

 Off-the-shelf with alterations software

 Tailor-made or custom-developed software

Open Source Software 29

 GNU (stands for ‘GNU Not Unix’)

 GNU general public license (GPL) agreement
 one of the standard license agreements
for open source software
 Successful open source projects:
 OpenOffice (a Microsoft Office look-alike)
 FireFox (a browser)
 MySQL (a DBMS)
 Apache (a web server)
 Ubuntu (a Windows-like desktop operating system)
 Android (a mobile-device operating system)
 30
How Does Open Source
Work? Closed-source or
proprietary softw
Machine co are
de
Source c : Source
source code is
ode code is not available to
: Human compiled users or public.
readable into Only available to
computer instruction trusted
code s executed employees and
directly by carefully vetted
a computer contractors.
’s CPU
Softwar
Open-source soft
e ware
available to
users in source
code form.
 31
Source code sample

Source: textbook [1], pg 113

How Can You Use This Knowledge? 32

 tomake some decisions about

which products you use
 As a manager, you will be involved
in creating or approving hardware
budgets
What buying decisions do you make? 33

 Business managers play a role in

the specification of client hardware
and software for employees they
manage.
 The particular role depends on the
policy of the manager’s organisation.
 Goal:to select the hardware and
software that will meet
requirements at the minimum
total system cost.
What buying decisions do you make? 34

Sources of System Costs

Source: textbook [1], pg 114
What buying decisions do you make? 35

A Business Manager’s Role in Hardware and Software

Specifications
Source: textbook [1], pg 115
What Process Should You Use to Establish a Computer
Budget? 36

A Process for Preparing a

Departmental IT Budget
Source: textbook [1], pg 116
 37

Q3 What are emerging technologies like cloud

computing, IoT, artificial intelligence and
blockchain? How are they applied to logistics?
 38

Cloud Computing
 39

Definition: What is Cloud

01
Computing?
Overview of
History & Evolution of
02
Cloud Technology Cloud
Computing
Cloud Computing
03 Architecture

Service & Deployment

04 Models
(homework)
 40

What is Cloud Computing?

Definition
Cloud computing is the on-demand delivery of computing
resources (such as servers, storage, databases, networking, and
software) over the internet, enabling scalability and flexibility.

Why Cloud Computing Matters

It allows businesses and individuals to access computing
resources without owning physical infrastructure, reducing costs
and increasing efficiency.

Real-World Examples
Popular cloud services include Google Drive, Dropbox, AWS,
Microsoft Azure, and Google Cloud Platform.
 41

History & Evolution of Cloud Computing

Early Computing
Cloud computing originated from the concept of time-
sharing systems in the 1960s, where multiple users
accessed computing resources remotely.

The Rise of the Internet

With the advent of the internet in the 1990s, companies
started offering online storage and computing services.

Modern Cloud Computing

Today, cloud computing powers businesses worldwide,
enabling AI, big data analytics, and IoT applications.
 42

Cloud Computing
Architecture
 43

Frontend (User Interface &

01
Devices)

Key Layers of
Backend (Servers, Storage,
02
Databases) Cloud
Architecture
03 Virtualization & Middleware

Networking (Load
04
Balancing, Security)

Cloud Management &

05
Automation
 44

Frontend Layer

What is the Frontend?

The frontend layer includes user interfaces and devices that
interact with cloud services, such as web browsers, mobile
apps, and IoT devices.

Key Components
This layer consists of user applications, APIs, and client-side
frameworks that enable interaction with cloud
infrastructure.

Example Use Case

Cloud-based video streaming platforms provide an
interactive UI for users while connecting to backend servers.
 45

Backend Layer

What is the Backend?

The backend layer comprises servers, storage, and
databases that process and manage cloud services.

Key Components
This layer includes application servers, virtual machines,
databases, and storage systems that power cloud
applications.

Example Use Case

Cloud-based e-commerce platforms store product catalogs
and user data on backend databases for seamless
shopping experiences.
 46

Cloud Deployment Models

Types of Deployment
Cloud computing can be deployed as Public, Private, Hybrid,
or Multi-Cloud, each offering different levels of control and
security.

Key Differences
Public clouds are shared environments, private clouds are
dedicated, hybrid combines both, and multi-cloud uses
multiple providers.

Example Use Case

A financial institution may use a hybrid cloud, keeping
sensitive customer data on a private cloud while leveraging
public cloud scalability.
 47

Cloud Service Models

Types of Services
Cloud computing services are categorized into three models:
Infrastructure as a Service (IaaS), Platform as a Service
(PaaS), and Software as a Service (SaaS).

Key Features
IaaS provides virtualized infrastructure, PaaS offers
development environments, and SaaS delivers ready-to-use
applications.

Example Use Case

Companies use SaaS applications like Google Workspace for
collaboration and IaaS platforms like AWS for hosting
applications.
 48

Internet of Things
(IoT)
 49

01 Definition: What is IoT?

02
History & Evolution of Overview
IoT
of IoT
03 Key Components of IoT

Applications Across
04 Industries
(homework)
 50

What is IoT?

Definition
The Internet of Things (IoT) is a network of interconnected
devices that collect, share, and analyze data to automate
processes and enhance efficiency.

How IoT Works

IoT devices use sensors to collect data, transmit it through
networks, process it in cloud or edge computing environments,
and trigger actions accordingly.

Why IoT Matters

IoT enables smarter homes, efficient industries, improved
healthcare, and real-time monitoring for various applications.
 51

History & Evolution of IoT

Early Beginnings
The concept of connected devices dates back to the 1980s,
with early applications in industrial automation and machine-
to-machine (M2M) communication.

Growth & Development

With advancements in wireless technology, cloud computing,
and AI, IoT has expanded into smart homes, healthcare, and
industrial applications.

Current & Future Trends

The future of IoT includes AI-driven automation, edge
computing, and 5G-enabled smart cities.
 52

Key Components of IoT

 53

01 Sensors & Actuators

Main
Connectivity (Wi-Fi,
02
Bluetooth, LPWAN) Componen
ts of IoT
Cloud & Edge
03
Computing

Data Processing &

04
Analytics

05 Security & Privacy

 54

Sensors & Actuators

Role in IoT
Sensors collect real-world data like temperature, motion,
and humidity, while actuators execute commands based
on processed data.

Types of Sensors
Common types include temperature sensors, motion
detectors, humidity sensors, and proximity sensors.

Example Use Case

In smart homes, motion sensors detect movement and
trigger lighting or security alarms.
 55

Connectivity in IoT

Importance of Connectivity
Connectivity allows IoT devices to communicate and
share data, enabling seamless automation and real-time
monitoring.

Common Technologies
Wi-Fi, Bluetooth, LPWAN, Zigbee, and 5G are widely used
for connecting IoT devices based on range and data
needs.

Example Use Case

Smart cities use LPWAN networks for traffic monitoring
and efficient street lighting control.
 56

Cloud & Edge Computing

Role in IoT
Cloud computing enables IoT devices to store and process
large amounts of data remotely, while edge computing
processes data closer to the source.

Advantages
Cloud computing provides scalability and accessibility,
whereas edge computing ensures low latency and faster
decision-making.

Example Use Case

Autonomous vehicles use edge computing to process sensor
data instantly for real-time navigation and safety.
 57

Data Processing & Analytics

Why Data Processing Matters

IoT generates vast amounts of data, which must be
processed efficiently for actionable insights and
automation.

Analytics Techniques
Techniques like machine learning, real-time monitoring,
and predictive analytics enhance decision-making.

Example Use Case

Smart factories use predictive analytics to foresee
machine failures and optimize maintenance schedules.
 58

Security & Privacy in IoT

Importance of Security
IoT devices are vulnerable to cyber threats, making
security a crucial aspect of any IoT ecosystem.

Common Security Measures

Encryption, authentication, firewalls, and intrusion
detection systems help safeguard IoT networks.

Example Use Case

Healthcare IoT uses encrypted data transmission to
protect patient information from unauthorized access.
 59

Artificial Intelligence
(AI)
 60

01 Definition: What is AI?

Overview of
Types of AI: Narrow,
02
General, and Super AI
Artificial
Intelligence
Machine Learning vs. Deep
03 Learning
(see Chapter 5)

AI Applications Across Industries

04
(homework)
 61

What is Artificial Intelligence?

Definition
Artificial Intelligence (AI) is a branch of computer science that
aims to create machines that can mimic human intelligence,
including learning, problem-solving, and decision-making.

How AI Works
AI systems use data, algorithms, and computing power to
analyze patterns, make predictions, and perform automated
tasks. More detail in Chapter 5.

Why AI Matters
AI is transforming industries, improving efficiency, and
enabling new innovations in automation, healthcare, and
business.
 62

Types of AI

Narrow AI
Also known as Weak AI, this type of AI is designed to perform
specific tasks, such as virtual assistants (Siri, Alexa) and
recommendation systems.

General AI
Also known as Strong AI, General AI has the ability to
understand, learn, and perform tasks across various domains
similar to human intelligence.

Super AI
A hypothetical AI surpassing human intelligence, capable of
independent decision-making and innovation beyond human
capabilities.
 63
Additional resources
 Videos:
 AI

 Cloud computing explained on the whit

e board
 Blockchain

 IoTis Transforming Supply Chain Mana

gement

 Communication Devices
 How does the Internet work?
 64

Blockchain
 65

What is Blockchain?

Definition
Blockchain is a distributed, decentralized, and public digital
ledger that securely records transactions across multiple
nodes.

Key Characteristics
Blockchain offers immutability, transparency, and security,
making it resistant to tampering and fraud.

Brief History
The concept of blockchain was introduced in 1991, but it
gained recognition with the creation of Bitcoin by Satoshi
Nakamoto in 2008.
 66

The Structure of a Blockchain

Block Components
Each block consists of transaction data, a unique
cryptographic hash, and the hash of the previous block,
ensuring security and continuity.

How Blocks are Linked

Blockchain operates as a chain of blocks, where each block
references the previous one through a hash, making
tampering nearly impossible.

Peer-to-Peer Network
Blockchain transactions are validated by decentralized nodes
that work together to maintain and update the ledger.
 67

The Mechanics of Blockchain

Transaction Process
A blockchain transaction goes through multiple steps:
creation, broadcasting, validation by nodes, block formation,
and addition to the chain.

Consensus Mechanisms
Blockchain relies on mechanisms like Proof of Work (PoW) and
Proof of Stake (PoS) to validate transactions and maintain
network integrity.

Security & Trust

Blockchain ensures data security through cryptographic
encryption and decentralization, preventing fraud and data
tampering.