Dissertation for PhD Degree in Information Systems: Facilitating Technology Adaptation in a Small Company with Limited Resources

by David Barth, written in 1995

KW

Kennedy-Western University

Park Center Pointe

1459 Tyrell Lane

Boise, Idaho 83706

208/375-4542

800/635-2900

Fax: 208/375-5402

EXECUTIVE INDEPENDENT STUDY

FINAL PROJECT PROPOSAL
SECTION TWO

NAME: David V. Barth
Student I.D.# N11147

ADDRESS:

CITY: Lakewood

STATE: Colorado

POSTAL CODE: 80226-3047

COUNTRY: USA

TELEPHONE:

DEGREE: PhD

TITLE OF PROJECT: Facilitating Technology Adaptation in a Small Company with Limited Resources.

STATEMENT OF THE PROBLEM: A small company's increased business requires that it transition from a manual invoicing system to one that is automated. The issue is how to accomplish this with limited financial and personnel resources.

IMPORTANCE AND SIGNIFICANCE OF THE PROBLEM:

My topic is significant for many small companies who operate on manual systems, as did the one in this study, and who do not appreciate the benefits of a suitable computer system nor know the challenges of installing such a system.

SOURCE MATERIAL:

1. Fortune Magazine
2. Byte
3. Datamation
4. Compute
5. PC World
6. PC Today
7. PC Computing
8. Home PC
9. Information Week

My Final Project Proposal is hereby submitted.

__________________________________________

Student's Signature

__________________________________________

Date: June 1995

Chapter 1

INTRODUCTION

Statement of the Problem

Many small businesses barely survive because their overhead costs require a major portion of their gross income. In some cases, especially for start-up companies, the overhead costs may exceed the gross income during the early part of the company's existence. To survive, small companies have to carefully manage their expenses, keeping them as low as practicable while maintaining a sufficient level of customer service.

Solving the problem of expense reduction is usually an ongoing challenge for a company manager. He must think in terms of how to keep costs low without causing the company harm. The employee morale, including that of his own as well as his family's, must be maintained while, at the same time, the level of customer satisfaction must be kept at a sufficiently high level to maintain loyalty. Company creditors must be kept happy by paying them on time.

So, to keep a small company running smoothly, the manager must walk a tightrope, maintaining a balance between the level of customer support and the cost of running the operation.

This is not easy for most small business managers. The successful approach often requires innovative solutions and attention to detail. Often, business managers lack the required knowledge to implement modern solutions to solve their business problems, and they can neither afford to pay consultants to provide the necessary expertise, nor take the time to learn about them. Sometimes they do not know of the existence of a solution that is readily available.

Of all the hurdles that businesses must overcome, this study addresses the possibility of enhancing a company's information systems. Every business must maintain information systems. Examples include information used to satisfy customer's needs; data to support federal, state, and local tax requirements; bookkeeping records to track company performance; payroll information; accounts payable and receivable accounting; marketing information; competitive data; and inventory tracking.

The media used for information storage may vary between systems depending on their size, their importance to the operation of the company, how frequent the information is accessed, and the level of the manager's expertise. The two primary types of data storage for the small business are paper and the computer. Prior to 1981, before the advent of a reasonably priced computer, most small businesses had to rely solely upon paper-based systems such as accounting ledger sheets to maintain their information systems.

Larger companies have benefited from a wider spectrum of data storage media including large (mainframe) computers, mini-computers, networked computers, time-shared computer services, microfiche, microfilm, and various specialized equipment such as proof machines and tabulating equipment. These companies have also used manual paper systems and have embraced the small computer revolution as well.

Options for the small business are more limited than for larger, established organizations, and therein lies the problem of introducing automated information systems. Initially, a small business may start out with all of its data on paper or in the head of the manager. After operations have begun, that information is usually placed in a formal system to meet various needs, for example, payroll. At some time after the company has been established, automated data processing may be an attractive option to replace the manual information systems. It should be noted that not all information systems should be converted to a computer. Depending on the usefulness of information and the way it is used, it may properly and efficiently reside in the head of the manager or on paper in accounting ledgers. It doesn't make much sense to place the names and addresses of a handful of suppliers into a computer if that information can be more easily kept on a slip of paper. In the same way, if a company has but one or two employees, the payroll data may be most conveniently kept on a ledger than in a computer.

However, it is important for small businesses to be able to transition from manual, paper-based systems to a computer when the advantages of automating are compelling.

Concept of the Study
This study was conceived to investigate the possibility of empowering the employees of a small business to automate a manual system. The assumption is that there are many small businesses that could benefit by automating a manual system, and their employees are the most knowledgeable and best qualified persons to evaluate and implement a computer system to replace the manual system they have been using.

The benefits of converting a manual system could include fewer person-hours required to run the system, more complete information, more accurate data, and faster processing of required reports. The positive aspects of allowing company employees to implement the system themselves could be increased self-satisfaction derived from having control over the selection and implementation of the system, a sense of ownership in the system which could translate into a more proactive approach to solving its problems, higher morale as a result of having more input to the operations of the company, and money saved that ordinarily would have to be spent on consultants or the hiring of information system experts.

Better information could be provided by an automated system. An example is information provided by a manual pay system compared to that shown by an automated payroll system. A manual payroll system might provide some hand-written information regarding deductions from a pay check, but an automated system could give the employee a neater accounting of pay history including an accurate breakdown of all deductions, year-to-date totals, and, possibly, even a track of vacation and sick days used and available.

An example of cost reduction for the company would be increased efficiency found in running a system on a computer as opposed to doing it manually. The payroll system can serve as an example. If a manual payroll requires two hours per pay period of the manager's time, and an automated system cuts the time in half, a time savings results, freeing the manager to address other concerns.

This study was designed to choose one manual system in one example company to determine if the assumptions above are correct and find out if the process would be simple and straight-forward enough that it might be replicated by other small businesses.

Importance of the Study
By using the procedures developed herein as a guide, it should be possible for many small companies with limited financial resources and little computer hardware or software expertise, to achieve similar success in automating manual systems. For small businesses that continue to use manual systems which could be converted to a more efficient computer system, the results of this study may be a way to improve their operation by helping them become more profitable and achieve improved customer service.

The positive affect on a company's operation includes a reduction in manpower required to operate the application that is converted. This can translate to a reduction in overall expense to the company. If the result of automation is fewer man hours required to run the converted application, that relieves manpower for use in other areas that may benefit from extra help.

If the automated system provides more timely, more accurate, or better information for customers, then it can be a positive advance for the company's level of customer service.

This study provided some outside assistance to the subject company to prime its employees to undertake the project, but the approach was intended to be straight-forward and simplistic so that the results could be duplicated by other companies with a minimal effort. The intent was to develop a cookbook approach to computer system implementation.

Scope of the Study
The scope of this study considers the following areas, discussed in detail in chapter three, "Method."

1. The selection of a subject company that is appropriate for the study was made. Although this project involves only one company, it is hoped that the results will indicate some degree of applicability to many other small businesses.


2. The study of the company's existing manual information systems was made to be determine which one was a candidate for automating. If none had been found, a different company would have to have been selected for the study.


3. The selection of computer hardware to support the conversion and implementation was made prior to the selection of software because hardware is more generic than software. While software functionality and capability may be highly variable from product to product, hardware must adhere to rigid standards, and there are only two primary types: IBM (and IBM compatibles) and Apple. Although hardware selection was an important element for this company, businesses that already have a computer available will not require this step.


4. The selection of software to automate the application followed hardware selection. To keep the study as simple as possible, it addressed only off-the-shelf software, to be installed as written, and not modified or customized in any way. Although the way the application was implemented might be modified, the actual software itself could not because this study addresses how a small company can improve its information systems in an inexpensive way, and changing programs or writing new ones can be very costly.


5. After a candidate application software package had been identified, it was tested to determine if it operated in such a way to accomplish the company's needs for the application. The selection of software and the subsequent testing continued until a suitable package was found.
   
   Had no suitable computer package been found, a different application would have had to be identified for conversion, or another company would have to be selected for the study.


6. The selected software was then implemented under the direction of company employees. If this had been unsuccessful, the study would have had to be terminated with the results documented.


7. The impact of the new software on the company was reported, from positive and negative viewpoints.


8. The possible transference of the results of the study to other companies was addressed. Since the objective of the study was to determine if a small company could move from a manual system to a computer system, with resulting enhancements in performance and reductions in cost, the impact of the results on other small organizations was considered.


9. Finally, suggestions were made regarding possible future studies that would supplant this one by gathering data about the information system situation in other small companies.

Hardware Trends
The following discussions of hardware and software trends provide general background for the study.

Since the advent of Apple Computer's first production personal computer in the late 1970s, desk top computers have become less expensive and more powerful. The first IBM personal computer, introduced in 1981, had a CPU that operated at a clock speed of 4.7 MHZ (4.7 million hertz, or cycles per second). It cost $5,000. Today, computers running the CPU at 100 MHZ cost under $2,000.

The clock speed is the "ticks" or cycles that the CPU uses to perform whole or parts of instructions, measured in millions of cycles (hertz) per second. Simple instructions require only a few clock cycles. The higher the frequency at which the CPU operates, the more instructions that can be executed in a given period of time. However, there is a physical limit to the frequency that a CPU chip will operate in the current technology, just as there is a physical limit to the rpms that an automobile engine will turn. A racing engine might run at ten or twelve thousand RPM, but forget about fifty thousand.

Whether the CPU limit is 500 MHZ or 1 GHz (one gigahertz, or a billion cycles per second), technology will probably take a different approach to increasing computer processing speed. This approach will probably involve an increase in "parallelism," the method of using two or more logic circuits to execute two or more instructions simultaneously (Coffee, 1994). If it sounds complicated to imagine a program running, wherein two instructions are being done at the same time by the CPU, it is. The logic of the computer must somehow look ahead in the program and determine what instructions can be done at the same time, then set them up so when it comes time to execute them, they are ready. The Intel Pentium chip does this on a small scale, but the future will bring great advances in this area.

Theoretically, if enough CPUs were ganged together, say, one CPU for each instruction in the program, and the instructions of a program were set up, ready for the CPU to execute them, a program could run in just a few clock cycles, or in a 100 MHZ computer, it would be finished in only five or ten millionths of a second. This is only an illustrative example. The attempt to bring many processors together to perform faster processing was done long ago, in the mid-1970s when the University of Illinois, under a government contract, connected 64 Burroughs computers together to run in parallel, ostensibly, to run programs that were to compute one of the most complex applications: weather modeling.

The PC owes its existence to one technological advance: Large Scale Integration (LSI), which is the ability to mass produce small silicon chips, ranging in size from that of a fingernail to those larger than an Oreo cookie, containing thousands or millions of transistors. The first commercially produced chips were designed to take the place of thousands of transistors that constitute the CPU in a computer. (See "Hardware Historical Perspectives" in Chapter 2).

The CPU is the section of the computer that consists of many transistors, and reducing the logic components to a small size facilitated the development of the first PCS. The magnitude of this compression could be illustrated by imagining thousands of separate transistors, each the size of the eraser on the end of a pencil, distributed across two hundred circuit boards fitted into slots in a computer cabinet. The whole CPU assembly might require twenty or thirty cubic feet of space. In addition, each board had to be connected to others by many wires. This is the configuration that 1960s vintage mainframe computers used, and each computer was nearly hand-built, and the manufacture of boards was largely done by hand on production lines staffed by assemblers. The construction of just one mainframe computer might require many weeks. The resulting cost of such a computer was in the millions of dollars.

Not only has the CPU circuitry been compressed into chip form, other logic circuits in the computer have also been redesigned into chips, so that most transistors in current PCS reside inside either the CPU or some other chip. These non-CPU chips are usually smaller than the CPU. Chips will be found on the main board, as the CPU is, on controller boards that plug into the main board, and on various hardware components themselves, such as hard disk drives, floppy drives, CD ROM (compact disk, read only memory) drives, and other components.

The original chip design used metal connectors protruding that looked like legs, giving them the look of short centipedes. The metal "legs" fit into small sockets mounted on the board by pressing the chip down into the socket. The advantage of this approach was that the chips could be easily pulled out and replaced. This advantage was particularly important in the days when even non-CPU chips were expensive, sometimes costing hundreds of dollars, and their reliability was not what it is today.

In the mid 1980s, the chip mounting technology changed to "surface mounting." The surface mount chips are flatter, usually square, and their legs are small wires that come out all four edges of the chip. The chip is mounted flat on the board with the wires soldered to the appropriate junctions on the circuit board. Surface mounting technology lends itself to automation, and most boards are mass produced on robotic assembly lines.

As a result of mass production feeding an ever growing market, instead of a production run of a few thousand circuit boards in the early 1980s, now, many boards have runs of several million. The impact of these large runs is that, although the first board to come off the assembly line may cost many millions of dollars, the average board price for the entire run puts the price in the tens of dollars, effectively making the board disposable.

No longer do computer technicians repair a circuit board at the component or chip level. They go only to the board level, simply throwing away a board that tests bad, even if it is a main board. It is less expensive to replace a board than spend money on parts and labor to try to repair it. In addition, the new board will have a new warranty and all new parts, a situation that one would not have with a repaired board.

The future of the personal computer has been discussed by computer experts for years. When IBM designed the first PC, it only allowed for one million bytes (characters) of addressable memory. This was done for marketing reasons. IBM's marketing philosophy in mainframe computers extended to their PC. More powerful and more expensive lines were planned, but clone makers jumped into the market, developing "work-arounds" for the deficiencies of the PC, increasing the allowable memory to 64 MB or more. The first PC had standard memory of 64 KB, expandable up to 640 KB of user memory, and, with control memory, the total was 1 MB.

PC memory, as with most computer memory in mainframe and minicomputers, loses the data stored when the power is cut off. Computer memory exists only by virtue of the power supplied to it. Technology is attempting to find a way for data to be retained in a memory chip when the power is cut off. This advance will cause a giant leap in computer operating speed, because it will open the door to replacing the relatively slow hard drive with much faster memory. Imagine removing the mechanical hard drive that contains spinning disks, and replacing it with a block of memory that has no moving parts and operates hundreds of times faster than the hard drive.

The first PC didn't have a hard drive for storing data. Data was stored only on floppy drives. The "extended technology" XT was simply a PC with a hard drive added to it. Early hard drives could hold only 5 MB and they cost more than $1,000. Large modern hard drives have a capacity exceeding two GB (gigabytes, two billion characters), and the cost is around fifty cents per megabyte, or around $500 per GB.

The trend in main board size is to continue combining and shrinking components so that main boards are becoming smaller. In addition, add-on boards that plug into the main board are shrinking, too, and some add-on boards are being built with multiple functions such as combining hard drive, floppy drive, and CD ROM drive electronics on one add-on controller board.

This down-sizing has paved the way for the lap top computer. Lap top computers are the future. They will not be able to compete with desk top PCS until they can do several additional things:

1. Lap tops need a fold-out, full-size keyboard. Keys can get smaller and more densely arranged on a keyboard, but fingers cannot get smaller to accommodate them. Lap tops usually have a plug so that a full-size keyboard may be attached, but that is a poor solution. The need is for a big keyboard that folds up.


2. Lap tops need to have at least eight slots available to plug in various add-on cards, just like desk tops have. The PCMCIA card (the latest model is called "CardBus") technology uses credit card-sized add-on boards, but these have not been well developed yet, and there aren't enough types available (Seymour, 1994). This technology is improving, however. Examples of add-on cards that are available for desk top PCS that should be available for lap tops are sound cards, CD ROM cards, fax/modem cards, video cards, drive controller cards, etc.


3. The monitor situation with lap tops has always been a problem. The most expensive lap tops costing more than $4,000 have good color monitors. A standard monitor can be plugged into most laptops, but, like plugging in a full-size keyboard, that is a poor solution. The best solution would be a folding monitor that could present a large viewing area.


4. Lap tops need to have commonality of peripherals so that a hard drive, floppy drive, or CD ROM drive can be purchased from any computer store and slipped into the unit, much as is done with desk top computers today.

As for the desk top PC, monitor technology is moving toward flat screens, similar to those used in lap tops. Cost is holding them back, but some day, the heavy, power-hungry, bulky monitor will be replaced by a thin, lightweight, large monitor that looks like a picture and can sit on the desk or hang on the wall.

The physical size of the desk top computer will shrink, too. Originally, diskette drives used eight-inch diskettes. Then came the 5 1/4 inch diskette drives, and the current standard is the 3.5 inch diskette drive. Consumers seem to do funny things at times, but there is always logic behind their actions. For example, the two-inch diskette drive was introduced several years ago, but it never became popular. The reason is that it is so much like the 3.5 inch drive, only a bit smaller. The change from the 5 1/4 inch drive to the 3.5, was much more significant. The 5 1/4 diskette is flexible and easily damaged. The improvement in the 3.5 inch diskette is that it is encased in a hard plastic case and is small enough to slip into a shirt or pants pocket without worry of damaging it. The advent of the 2 inch floppy was no great improvement over the 3.5 inch model because it was simply smaller, without any other great advances. So, the 2 inch drive has not become common.

Multimedia computers are now the rage. They are the same as any other PC except that they have a CD ROM drive, a sound card, and a pair of external speakers. PCS have an internal speaker built in to the case, but it is small and does not provide high-quality sound.

The CD ROM drive came about as an off-shoot of the music compact disks where the data was stored in very high density, in digital form, on disks that are not easily damaged.

Computer manufacturers began building CD ROM drives that could use the CD technology. Instead of storing music on the disks, computer manufacturers digitally store data such as encyclopedias, text from books, educational information accompanied by video pictures and speech and music, some of which are animated, and groups of programs that, otherwise, would require storage on dozens of diskettes. Many CD ROM drives will play audio compact disks, and the latest models are compatible with the photographic compact disk technology that Kodak has developed.

The future will bring more compact, faster CD ROM drives and the ability to write and delete, just as can be done with diskettes. Eventually, CD ROM disks will replace diskettes. They will come in the current size and a smaller size, both compatible with the same drive unit, and they will have read and write capability.

The advantage of CD ROM is its great capacity. CD ROM disks currently hold around 650 MB of data compared to a maximum of 1.2 MB for 5 1/4 inch floppy and 1.44 MB on a 3.5 inch diskette. Future technology will provide at least one smaller size of CD ROM, and higher density storage is probably coming soon.

As for a major philosophical design change, that is probably not likely within the next ten years. When IBM came out with the original PC, it planned to bring out newer technology computers to follow it, if their marketing strategy in the mainframe world is any guide. However, there is always a conflict between new hardware architecture and the software that has been running on the old architecture machines. For IBM, that was never a consideration. IBM was big enough to simply change the hardware and let the software houses convert their old software to fit the new computer. When the clone makers entered the market in the mid-1980s, a power shift occurred. IBM was no longer the dominant force in the PC industry. Software to run on the open architecture IBM computer was easy to write because IBM had made the internal logic operation public so that a plentiful supply of software would become available for IBM computers, making them more desirable. This ploy backfired when the IBM compatible manufacturers jumped into the market.

There are many small companies and few larger ones, like Compaq and Packard Bell, manufacturing IBM compatibles. However, no one manufacturer has the power to introduce a new architecture that would require the software makers to redo their programs to run on it.

The hardware makers have simply taken the old 1981 PC technology and produced faster, higher capacity computers, using work-arounds to address architectural shortcomings like the above-mentioned 1 MB limit. There are newer technology computers, called workstations, that use RISC (reduced instruction set) technology, made by Sun, Hewlett Packard, IBM, and others, that won't run PC software. These computers are much more powerful than any PC in use today, but they cost five to ten times as much, and the fact that they won't run popular software has left the public uninterested in them. These workstations are in use by companies and computer centers that need a lot of computer power for a network of computers. They are sometimes used as terminals for mainframe computers. So, RISC workstations have a place, but for now, it isn't with the general public because it desires computers that will run the many thousands of software programs on the market. (Coffee, 1994).

The only thing the hardware manufacturers have been able to do is to continue increasing the power of the PC. It is possible its power will eventually supersede that of the RISC workstations. Prices continue to plummet as the cost of compute power halves every eighteen months (Spears, 1995).

Software Trends
With the future of IBM compatible technology expected to remain unchanged for the foreseeable future, the software houses are continuing to turn out software for PCS. There are changes in the overall "look and feel," however.

When Microsoft introduced Windows to compete with the graphical user interface (GUI) that Apple had pioneered, many computers were too slow or lacked sufficient capacity to run it well. Many computer programs designed to operate with Windows ran slowly. Users who wanted a speedy program often chose standard "DOS" programs that ran with the DOS operating system instead of with Windows. (See "Software Historical Perspectives" in Chapter 2).

This situation was simply that software development had gotten ahead of computer power, and it helped spur the demand for more powerful computers. Most users like Windows because it provides a standardized way that programs interface to the user. The "look and feel" that Windows programs provide, enables users to more quickly use Windows programs because they work in a similar way to other programs that run under Windows.

Before the development of Windows, all programs ran under DOS, and most were "text-based" in that they interfaced with the computer user through statements or questions printed on the screen. With Windows, however, programs communicate with small "windows" that pop onto the screen to guide the user when it is necessary to obtain some input. The use of these small "windows" is where Windows got its name.

Windows and the programs that run with it use graphics instead of lines of text. The colorful graphics are often little pictures of functions that can be accomplished by the user, and other pictures like slide switches for adjusting mouse sensitivity, for example, radio buttons that resemble push buttons on a car radio, and other graphical devices that help the user understand the application better.

Some software houses have elected to develop their software for DOS, and in doing so, provide some graphical pictures and little windows in the DOS environment. The trend is for DOS programs to be written for Windows because more users are running other applications in Windows. Some software is available in two versions: one for DOS and one for Windows.

Another trend is larger programs and more of them within an application. For example, Novell WordPerfect 6.1 for Windows requires 32 MB to be available on a user's hard drive before it can be installed. With DOS and Windows requiring close to 30 MB, the need for larger hard drives is obvious. No longer can a user that has DOS and Windows get by with a 40 MB hard drive if he wants to run many software programs. His hard drive will simply run out of space. This is causing an increase in demand for larger hard drives, and prices for them are currently less than fifty cents per MB, and likely to fall as more of them reach the market.

Software prices are dropping as competition heats up between software providers. There are a limited number of types of business applications, but more come on the market each year.

Larger software packages are now coming out on a single CD ROM disk instead of several 3.5 inch floppy diskettes. This makes it much easier to load large programs because one CD ROM disk may be loaded instead of having to load and unload many floppies.

Commercial Software houses are beginning to compete with each other by offering lower prices for "competitive versions" and "upgrade" versions. Often the same program is used for both the competitive version and the upgrade version. The way this marketing approach works is that a person who uses an older version of the new product or is using some other vendor's software, can purchase the upgrade version for a lower price than the buyer who isn't using an old version of the same product or a competitor's software.

With the introduction of computer viruses in the mid-1980s, software houses changed their approach to packaging. Now, all software comes out of the factory shrink-wrapped to attempt to foil persons who might be tempted to introduce an infected diskette into a commercial software package.

Software that is provided on CD ROM drives is not susceptible to tampering because it is read-only, and cannot be written upon. It isn't possible to add a virus to a CD ROM disk. However, it is possible to create a new CD ROM disk, copying the programs from the original disk along with the virus, but the effort and cost to accomplish that task would seem to reduce the probability of someone attempting it.

Software viruses are still a worry for the computer user. The vulnerability increases when the user downloads software from a bulletin board or loads a floppy diskette that is not an original, but a copy of an original diskette. In these circumstances, it is possible that someone may have infected the program with a virus that can cause the machine to act strangely, or, at worst, render it inoperable until a technician eradicates the virus.

Most shareware vendors, bulletin board operators, and commercial software houses run virus checks on all software before allowing it to be distributed. Windows and Norton Utilities now come with a virus check program that alerts the user if a virus is found. There are also companies that specialize in virus protection and removal.

The trend toward larger software packages is driving the power of computers. As software developers add more functions to their packages, users are forced to upgrade or acquire a more powerful computer.

Games are some of the fastest growing software packages. They have gone from text-based, monochrome software to those featuring color, sound, full-motion graphics with 360 degree viewing capability. This trend continues as new games are coming out with three-dimensional graphics displayed through a head-mounted viewing device.

Eventually, virtual reality will provide the capability for a user to simulate a realistic impression of a far away or imaginary locale by software that requires a very powerful computer.

Definition of Terms
The following terms have been defined to attempt to reduce obfuscation common in technical discussions, particularly those in information systems. An effort was made to present all computer-specific terms used in this study as well as some that might be useful to the reader.

To keep the flow of the text smooth, the traditional masculine form is used throughout, but it is intended to pertain to both sexes.

Adapter Card. An auxiliary logic board that plugs into the main board of a computer. Also referred to as "Add-on Board" (Sachs, 1984). (See Main Board).

Application. A specific information system, be it manual or computerized, that performs a function. Examples of business applications are Invoicing, Accounts Payable, Accounts Receivable, General Ledger, Fixed Assets, and Inventory.

Assembly Language. Also known as "Assemblers." A language used by a computer programmer to create instructions for a computer to operate. Assembly languages are manufacturer-specific and cannot be used on another manufacturer's computer. Assemblers are a higher level language than machine language because they use mnemonic symbols (ADD A, 9) instead of binary codes (1011100000001001). Also, one assembler statement may generate many machine language statements.

Assembler languages have been superseded by higher level, more productive languages such as compilers which allow the programmer to write fewer instructions. Although used little at the present, the advantage that assemblers have over compilers is that programmers can use them to eliminate non-essential instructions that compilers sometimes generate, speeding up the operation of a computer for critical applications such as those used in airline reservation systems where thousands of transactions are processed each second.

In the hierarchy of languages, assemblers fit between machine languages and compilers (Claus & Schwill, 1992). (See Machine Language and Compiler).

AT. A computer designation that represents "advanced technology." (See XT and PC).

Byte. The storage space required in a computer to hold one character of information. For example, "A," "1," "%," "$," and "q" each require one byte of storage. (See KB, MB, GB).

CPU. Central Processing Unit: the "brain" of the computer that controls all operations. Until the development of the first large scale integrated circuits, called "chips," consisting of thousands of transistors, the central processing unit consisted of individual components (Claus & Schwill 1992).

Until 1958, these components were vacuum tubes (Forkner & McLeod, 1973). Between 1958 and 1975, thousands of individual transistors were assembled on many plastic boards, sometimes numbering in the hundreds, to make up the CPU. This architecture was very expensive to produce, requiring a large computer unit with a lot of wiring between the boards, prohibiting most individuals from owning a computer.

In the mid-1970s, engineers developed a way of putting thousands of transistors into a "chip" slightly smaller than a package of Lifesavers. Advances in technology have resulted in the Pentium CPU chip containing ten million transistors.

CD ROM. This is an acronym for "compact disk, read-only memory." It is the computer version or the music variety of compact disks except that data is stored on the disk which has a capacity of 650 MB. CD ROM disks require a CD ROM drive. Many new CD ROM disks are being introduced because this technology is the core of "multi-media" computers. (See Multi-media).

Clone. (See Compatible).

Commercial Software. This software consists of one or more computer programs that are copyrighted and sold through retail outlets instead of being distributed free of charge as are shareware programs. Unlike shareware, commercial software cannot legally be copied and redistributed by anyone except the manufacturer and its licensees. Some commercial software is copy-protected to thwart unauthorized distribution of the product.

Stringent laws protect the copyrights of commercial software houses just as they protect authors of works written in other media such as books (Stagner, 1988). (See Giftware, Public Domain Software, and Shareware).

Compatible. A computer that operates like a computer built by an original manufacturer (e.g. IBM or Apple). That means it will operate like the original computer and will run the same software. For example, there are IBM compatibles and Apple compatibles. The term "compatible" generally refers to IBM compatibles.

In the early to mid-1980s when true IBM Personal Computers were in short supply, IBM compatibles came on the market to satisfy the demand (Dodge, 1994).

Packard Bell and Compaq are companies who manufacture name-brand computers that are compatible with IBM personal computers. Many foreign manufacturers, particularly in Asia, build generic IBM compatibles that may not even have a name plate on them.

In the mainframe computer environment, Amdahl manufactures compatibles for large scale IBM computers. This term can also apply to computer peripherals that are compatible with an original manufacturer's equipment such as printers and disk drives (Claus & Schwill, 1992).

Compiler. A high-level computer language used by programmers to write computer programs. Compilers are generally platform independent in that they can usually be run on computers of a variety of manufacturers. Examples are Cobol, Fortran, C++, Basic, Pascal, and newer, highly developed compilers called Fourth Generation Languages (4GL).

Each compiler statement generates many machine language instructions. In the hierarchy of languages, compilers rank at the top of the list, above assemblers and machine language. Compilers allow the programmer to write fewer instructions because they are able to generate the necessary machine language instructions from one compiler instruction (Claus & Schwill, 1992). (See Machine Language and Assembler Language).

Context Sensitive. This usually applies to help information or documentation that is specific to the location in the program where additional information was requested. For example, if a person is entering a date into a field in an input screen and wishes to know what the format of the date should be, if the program can provide context sensitive information, a request for additional help can show the format in which the date should be entered.

Cybernetics. The broad meaning refers to the study of systems: organic and man-made. In data processing circles it means the study of computers (Claus & Schwill, 1992).

Database. A group of files that may have some common fields between them for reference purposes. For example, a customer file may have links to an inventory file so that each customer record is not required to hold repetitive inventory information such as the description of the item.

To go a bit farther, a customer record may have inventory part numbers that refer to parts in the inventory file. If a person desires to list the customers and a complete description of the inventory ordered during the past month, he may simply instruct the Database to print the customer information, then take each part number on the customer's record and print the associated inventory descriptions. In this way, duplication of information is reduced because each customer record does not need to carry a duplicate of the full description of each inventory item ordered, only the part numbers.

A Database program usually provides a variety of ways of selecting and sorting records to be displayed or printed (Claus & Schwill, 1992).

Disk Drive. (See Floppy Drive and Hard Drive).

Floppy Drive. A mechanical device that reads and writes information to a removable floppy diskette by spinning it next to sensitive read/write heads that transfer information between the computer and the diskette. Two drive sizes are common: 5 1/4 inches and 3.5 inches. Maximum capacity varies according to the type of drive, with capacities at 1.2 MB for 5 1/4 inch drives and 1.44 MB for 3.5 inch drives. Drives are usually capable of reading and writing diskettes with a lower capacity, but not those with a capacity higher than the capacity at which the drive is rated (Connell, 1987).

Freeware. (See Shareware).

GB. This is the abbreviation for gigabyte, or billion bytes. (See KB, MB, and BYTE).

Giftware. Giftware is the term for free sample demonstration software that has one or more features removed compared to the full-featured commercial version. Duplication and distribution are authorized. Giftware is usually accompanied by an offer to purchase the complete commercial software package (Stagner, 1988).

Graphical User Interface. Abbreviated "GUI" (pronounced "gooey"), it is a means of showing program options on a computer terminal screen as pictures (icons) that may be selected using a pointing devices such as a mouse. (See Icon).

GUI. (See Graphical User Interface).

Hard Drive. A mechanical device that is sealed, typically containing one or more non-removable disks inside. Similar in concept to a floppy drive, a hard drive uses read/write heads to transfer information between the computer and the drive. Hard drive capacities vary with the number of internal disks (sometimes called "platters"), the density at which data is written on them, and whether both sides of the disks are used. Current capacities vary from 40 MB to more than 4 GB (gigabytes or billion bytes) (Glass, 1991). (See Byte, KB, MB, and GB).

Hardware. This is the computer "machinery" that runs the software programs. It includes the computer and any peripherals connected to it such as a printer (Claus & Schwill, 1992). (See Software and Peripherals).

IBM Compatible. (See Compatible).

IS. This is the common abbreviation for "Information Systems," which often refers to the department in a large company charged with managing and supporting its computer and information assets.

Icon. A picture that represents a program function used to select the activity by clicking a pointer such as that provided by a mouse or track ball. Icons are usually associated with graphical user interfaces (GUI) that attempt to make a program easier to use by presenting options with the use of pictures (Glass, 1991). (See Graphical User Interface).

IDE. This is the abbreviation for "integrated drive electronics." It is the most common technology for hard drives and provides much of the control circuitry to be mounted on the hard drive itself instead of having all of it mounted on the controller board as it was in older technology. (See Hard Drive).

Information System. This is a generic noun referring to any system, manual or computerized, that is used to process an application or provide information. "Information system" is sometimes used interchangeably with "application" and "software." (See Application and Software) (Claus & Schwill, 1992).

KB. This is the abbreviation for kilobyte, or thousand bytes. (See MB, GB, and Byte).

LAN. (See Local Area Network).

Local Area Network (LAN). A physical connection between two or more computers located near each other, one of which acts a server or host (a "master" personal computer that is more powerful and possesses enough memory and disk storage capacity to meet the needs of the network). The server contains the files used by all of the computers on the LAN so that each computer won't be updating independent files that will have to be merged later to create a master file. A LAN is applicable where several users need to operate a single software system at the same time, using different computers. LAN hardware consists of an adapter card that fits into each computer, the wire that connects all of the adapter cards, and the software to operate it. (See Server).

Machine Language. A language written in binary code, used directly by a computer to execute instructions such as "move" and "add." Consisting of strings of ones and zeros, these instructions are the lowest level instruction type because the computer executes them directly.

Higher level languages, assemblers and compilers, allow for greater programmer productivity because the assembler or compiler generates many machine language instructions for each instruction written by the programmer. For example, the single compiler statement written by a programmer, "Write Record to Disk," might result in the compiler generating ten or more machine language statements to accomplish the task of writing a record. A compiler statement is written using more meaningful codes such as "ADD" or "MOVE."

Machine languages are manufacturer-specific and cannot be used by another manufacturer's computer (Claus & Schwill, 1992). (See Assembler Language and Compiler).

Main Board. The primary circuit board in a computer into which adapter boards plug. The main board is often called "mother board." It usually contains the primary computer logic, control circuits, CPU, and memory. (See CPU and Adapter Card).

Mainframe Computer. The largest, most powerful type of computer. Originally created in the 1940s, as miniaturization improved, it was joined by the minicomputer in the late 1960s and the personal computer in the late 1970s. (See Personal Computer and Minicomputer).

MB. This is the abbreviation for Megabyte, or million bytes. A byte represents one character (Connell, 1987). (See KB, GB, and Byte).

Memory. Typically, temporary storage in a computer. Random access storage (RAM) loses its data when the power is removed. It is the fastest means of storing and retrieving information, and program instructions may be executed from memory (Claus & Schwill, 1992).

Microcomputer. (See Personal Computer).

Minicomputer. Smaller and, in general, less powerful than a mainframe computer, it became feasible as a result of efforts in computer component miniaturization during the late 1960s. In the hierarchy of computer size, minicomputers are between mainframes and personal computers. (See Mainframe and Personal Computer).

Mother Board. (See Main Board).

Multi-media. Typically, a computer that has a CD ROM drive, a sound card, and speakers. The CD ROM titles that fall into the category of multi-media often display pictures, sound, or moving picture clips with or without sound. The term "multi-media" refers to the ability of a computer to show motion pictures, still photographs, and sound, as well as text. (See CD ROM).

NCR forms. "No Carbon Required" multi-part forms that are designed to cause an image formed by pressure on the front form to be duplicated through subsequent forms.

Network. (See LAN).

PC. A computer designation that represents "personal computer." It is a generic term as well as the model of the first IBM computer introduced in 1981 (Connell, 1987). (See AT, XT, and Personal Computer).

Peripherals. Strictly speaking, any computer component used as an input device or output device, including keyboard, monitor, hard drive, floppy drives, pointing device (mouse, track ball, joy stick, light pen), printer, CD ROM drive, speakers, and scanner, to name most of the popular peripherals (Claus & Schwill, 1992).

Personal Computer. Personal computers became feasible in the mid 1970s, when technology was advanced to the stage that the "brain" of the computer, the central processing unit (CPU), consisting of thousands of transistors, could be combined into a single unit. The unit became known as a CPU "chip," and current models are about the size of an Oreo cookie. This giant step in miniaturization allowed for the computer's logic assembly to be sized to fit on a plastic sheet or "board" slightly larger than a foot square.

This advance meant that a low-powered computer, built around this small main board (also called "mother" board), could fit into a small cabinet that could sit on a desk. The CPU chip, model number 8086 (and subsequently, the 8088), was developed by a small organization that became Intel, the world's largest CPU chip manufacturer. This development, alone, made the personal computer possible. As had been done with the CPU, other logic circuits were converted to chips (Claus & Schwill, 1992). (See CPU and Main Board).

Pixel. Modified abbreviation for "picture element." A pixel is a dot on a computer monitor screen. The definition that a screen can provide is determined, in part, by the density of the dots. Current technology provides the highest definition of .26 mm. The average monitor has .28 mm between dots (Claus & Schwill, 1992).

Program. A group of computer language instructions that accomplish one or more tasks. Programs vary in size from a few instructions to many thousands. Programs may be grouped together to form a system, although the following terms are often used interchangeably: program, system, package, and application. These terms may be preceded by the word "software" (Claus & Schwill, 1992). (See Application and System).

Public Domain Software. The author of this software has released the copyright for it. Copying and distributing it are allowed. Any costs involved are to cover the copying, shipping, and handling, not the software itself (Stagner, 1988). (See Shareware, Commercial Software, and Giftware).

RAM. Acronym for "random access memory" that is the primary memory in a computer. Typically, it loses its storage ability when power is removed (the computer is turned off). Computer programs are executed from RAM (Claus & Schwill, 1992). (See Memory).

Server. A "master" computer that forms the central part of a Local Area Network (LAN). Because the files used by the other computers on the LAN reside on the server, it must possess enough speed and capacity to send, receive, and process data between it and the other computers on the LAN. (See LAN).

Servomotor. The main component of an analog computer. Properly "ganged" together, servomotors can do the two basic arithmetic functions of a digital computer: addition and subtraction. (In both analog and digital computers, multiplication is simply a function of many additions and division is accomplished through many subtractions.)

Analog computers are now used only in very specific applications requiring their specialized capabilities. They have lost desirability as general purpose computers because, unlike digital computers, they are less accurate, require periodic alignment, are prone to mechanical failure, are bulky and heavy, and require much more energy to operate, given the same assignment.

Shareware. "Free" programs, usually written by individuals or small groups who request a voluntary payment if the user decides to use the software. Sometimes incorrectly called "Freeware," shareware exists because of the monetary support provided by users to developers.

Some shareware programs are a sample of the full-function commercial software package that may be purchased from the shareware vendor. Less than fully-functional shareware is sometimes irreverently referred to as "crippleware." Most shareware is fully functional. The authors encourage duplication of the software and rely on the honesty of the user to forward payment, which typically ranges from $10 to $50, if he elects to use the product.

Shareware provides the user a chance to try out programs for a small fee of a few dollars to cover copying and distribution costs (Stagner, 1988). (See Commercial Software, Public Domain Software, and Giftware).

Software. A generic term that is applies to computer programs, systems, packages, and applications. The word "software" often precedes these terms. These terms are often used interchangeably to refer to the computer instructions that enable the computer to accomplish tasks (Claus & Schwill, 1992). (See Shareware, Public Domain Software, Giftware, Commercial Software, Program, System, and Application).

Transistor. Developed in the late 1950s, the transistor replaced the vacuum tube in digital computers and became the primary basic unit in computers, heralding the second generation in cybernetics (Forkner & McLeod, 1973). Originally, transistors were mounted singly on computer boards, but technology eventually enabled them to be grouped together in a single block of silicon, forming a large scale integrated (LSI) unit or "chip" (Bentley, 1984). (See Personal Computer and CPU).

Vacuum Tube. Vacuum tubes were predecessors to transistors in digital computers. They look like large light bulbs and can achieve the two states required by digital computer logic circuits: "on" and "off."

Computers built using vacuum tubes required a large room, had thousands of them, required massive air conditioners to keep the components cool, and needed constant attention to replace them when they burned out (Forkner & McLeod 1973). (See Transistor and CPU).

Virus. Instructions deliberately inserted into a program to make the computer act strangely or disable it altogether.

XT. A computer designation that represents "extended technology." The XT was introduced in 1985 and is now obsolete. (See AT and PC).

Chapter 2

REVIEW OF RELATED LITERATURE

Introduction
The literature survey concentrated on approaches to implement a computer system and associated software. The writings of primary interest related to smaller companies and the potential problems they face. Additional topics that gained attention included involvement of users in implementation efforts and the relationship between project success and their taking ownership in the system.

After it was determined that there was a manual system in the company that could be converted to a computer system, the hardware and software aspects were considered. Historical perspectives that have made computing power available to small businesses were researched to add background to the study. A logical extension of the historical look was reviewing prognostications of near-term advances, important in order to make a good decision on the type of hardware and software to acquire.

Attention was paid to sources of computer definitions to provide documentation of some of the common technical terms related to the study. Although technical terms are used in this text, an attempt has been made to make the meaning of the ideas understood in the context of the discussion. The inclusion of a broad scope of technical definitions is provided as an aid to readers who might benefit from a ready reference of terms related to the subject of the study.

Personnel Considerations
In an article in PC Week entitled, "Don't Underestimate the PC Kitchen Cabinet," the author says the general attitude of information systems (IS) managers is changing in regard to users of personal computers. In the early days of small computers, corporate users of PCs were nearly ignored by their information system departments. The current trend is to invite them to join the software selection team (Seymour, 1992).

Seymour recommends that the software selection group resemble the "kitchen cabinet" of friends and advisors whom President Jackson brought together informally in 1829 to work on problems and discuss ideas. He says users are the most knowledgeable about the software they need to do their jobs. They can provide a means of building consensus within the company. Instead of the selection process taking place wholly within the IS department, by bringing in users, the process is opened to the mainstream of the company, providing a more open forum and resulting in a better choice of software.

By bringing users into the process, they become engaged in the purchase, testing, implementation, and support of the system. They receive a sense of importance and they become the eyes and ears of management as well as its voice for the merits of it (Seymour, 1992).

In his book, Office Automation: The Productivity Challenge, Chorafas (1982) has a section addressing "The Cultural Perspective." He contends that with sufficient attention to the personnel factor, a conversion from a manual to an automated system does not have to be traumatic and that reducing resistance by the user staff is very critical if the software is to be accepted by the establishment. The truth of this assertion is paramount for this study.

Richard Sharland (1991) writes that users should be involved during all aspects of requirements definition. Their association with the development of the framework of the new system will provide the company with specific needs to be met by the new system. Another objective is that the users will begin to take ownership of the system as it is designed and built.

A key observation that Shamlin makes is the importance of user involvement in the selection, acquisition, testing, and implementation process. She says that if they are involved, workers begin to take ownership of the software early and help insure its success. Her view on user involvement agrees with Chorafas' (1982) view which supports the need for user involvement in bringing a new software package to a small company.

A contrasting viewpoint presented in "Management evaluation of software packages" (1985) (no author listed) is that users need not take part in the selection, evaluation, or development of software packages. Instead, users should be trained to accept and use the new package. This book observes that, initially, some employees will accept the new software and some will not. It asserts that one of the primary objectives of the training is to answer employee concerns regarding the new package so they will accept it.

This view is of interest because it highlights the difference between information system facilities in large companies to those in small companies. In the era prior to the advent of small, inexpensive computers, mainframe computers were the common means of accomplishing automation within a company. Typically, users were not involved in all aspects of designing, implementing, or testing a software package. Instead, that was the role of the information systems department. If any users did not readily accept the new package following its implementation, and training was not successful in changing their attitude, then they were either made to work with the new package, or they were transferred to another area within the company, they were terminated.

A major assertion of this study is that due to limited manpower and financial resources, a small company must involve the users from the beginning of a project through the final implementation to try to guarantee success. This is in contrast to the approach proposed in "Management Evaluation of Software Packages," discussed above. Such a philosophy may work in large organizations where employees are plentiful and easily replaced, but not in a small organization where knowledge of an area in the company is critical to its operation and trained employees are not easily replaced.

In Connell and Shafer's "The Professional User's Guide to Acquiring Software" (1987), the viewpoint is from that of a medium to large organization that writes its own software. This approach is interesting because, if read and believed by the manager of a small company, there would seem to be no possibility of obtaining a personal computer package without a great expense. It describes software for personal computers in the same context as that written and maintained for mainframe computers: that an in-house staff of information technology professionals is necessary. To make matters appear even less tenable for the small business, Connell and Shafer assert that the skills of each professional should include expertise in the following areas:

1. Advanced networking


2. Sophisticated hardware communications


3. Knowledge about personal computers manufactured by many companies


4. Background in operating system administration of many companies


5. Knowledge of consulting


6. The ability to quickly learn new computer languages

In defense of this view, it was developed before the flood of excellent and inexpensive software packages. A small company should not need personnel who have the above qualifications to implement a successful software package.

For example, advanced networking expertise is needed only if a company desires to install a local area network (LAN) that connects one or more personal computers to a server (a "master" personal computer that is more powerful and possesses enough memory and disk storage capacity to meet the needs of the network). And even if a small company does desire to set up a network of two or three computers, modern, easy-to-use LAN software for small installations is available. In most cases a user can be educated to administer the LAN simply by reading the instruction book that is provided with the kit. Difficult problems must be referred to an expert, but, again, for simple installations, problems rarely arise.

Knowledge of "sophisticated hardware communications" might be necessary in an organization that has a mainframe computer, but for a small company, even if it uses a small LAN, such knowledge is not necessary. For companies that choose to set up a LAN, a source of expert assistance should be identified so that a consultant can be called to handle difficult problems if they do arise.

Knowledge about computers manufactured by many companies isn't necessary. Knowing enough about the selected hardware to get a software package up and running should be sufficient. This basic knowledge is available from many sources including local colleges, adult education centers, and many computer stores. Most cities have one or more training companies dedicated exclusively to teaching the basics of computers.

If a company develops a relationship with a computer store, that store may provide answers that eliminate the need to hire an expert consultant. By the same token, expertise in operating many different computers is not needed. If the purchaser of software needs to know enough to get started, that information is usually provided with the general information about the hardware.

If consulting expertise is applicable in any organization that does not do consulting itself, it is for larger companies that want members of the information systems staff to interact with users as though they were consulting. Generally speaking, knowledge of consulting is not necessary except where that line of work is the purpose of the company.

The ability to learn new languages quickly probably only applies to consultants. For the purposes of this study, a small business will have no need to know any languages. Employees of a software house or a larger company that has the resources to write its packages in-house, will want to hire people who are literate in the languages the company uses to develop its software, but the need to be able to learn other languages quickly is rarely necessary except, once again, in a firm that specializes in software consultation.

Breslin (1986), in his book "Selecting and Installing Software Packages," states that when a company decides to convert to a new software package it must involve users to "minimize disruption and foster a proprietary attitude" toward the new software. He says that the benefits of the new package must be communicated to all employees to reassure them in areas of concern that they may have, including the possibility of having to work longer hours, the fear of the unknown, and job security issues.

Breslin contends that one of the reasons for the lack of user acceptance of a new package is inadequate user training. With the proper education and involvement, he says users will even embrace a deficient package. If users fail to fully accept a new package, it will likely fail. When users take ownership for a new package, their relationship to it changes from "their" package to "our" package. He says training plays an important role in user acceptance.

The training strategy Breslin suggests has four elements.

1. The company should assign responsibility for training. The most inexpensive approach is to "train the trainer." This trained person or group of persons can train other employees within the company.


2. The training syllabus should include the entire system, not just those areas that the users need to know, to provide an understanding of the relationship of the package to the various areas within the organization.


3. The training should sell the system to the users by discussing why it is needed and what benefits it will provide to the company.


4. Breslin's final element is the ongoing reevaluation of the training process to ensure that it is accomplishing the desired objectives.

In essence, the installation of a new package should be a positive experience for everyone involved with it, including the users. This premise of Breslin's is a key element in this study for the success of a new package brought into a small organization.

In summary, five authors, Seymour, Chorafas, Sharland, Shamlin, and Breslin recognize the importance of user involvement when introducing a new package to a company. The work entitled "Management Evaluation of Software Packages" and Connell and Shafer do not emphasize the importance of user involvement. In this study, the value and success of user involvement is tested.

Selection of Hardware
The approach of selecting hardware before selecting software, is supported by Mick (1984) who says that it is a myth that a computer purchaser should select the software first, then choose the hardware platform on which to run it. His contention is based on the idea that the things the computer will be used for will expand during its life, so the buyer doesn't have a firm idea of exactly what he will be doing with the computer.

He says the primary deciding factor should be that the chosen computer is flexible. In regard to hardware selection, price, performance, and the availability of software to run on the hardware are important factors. Although he doesn't name a computer type, Mick's comment about price, performance, and software availability supports the selection of an IBM-type computer instead of one manufactured by Apple.

In Cloning Around: A Guide to PC Compatibles, Stagner (1988) states that the success of the IBM PC product family as a whole has resulted in two important factors: 1) IBM compatibles have become the de facto standard, and, 2) this has resulted in an abundance of IBM PC-compatible software.

Apple Computer has incorporated IBM compatibility into its computer architecture, but the price/performance of a generic IBM compatible has made it the computer of choice for a small business of the type this study addresses. This isn't to say that an Apple Computer wouldn't be an acceptable choice for small company computing. If a company already had an Apple computer and were comfortable with the operation of it, it would be a viable alternative if suitable software could be found. The best approach in such a situation would probably be to investigate Apple-compatible software packages. If none were found that met the company's requirements, then the acquisition of an IBM compatible could be made to select a package.

An IBM compatible is a commonly available computer that can run most readily obtainable software packages. Sullivan (1991) points out that seventy-five percent of the personal computers in use are IBM or IBM-compatibles.

A cursory look at the software sold by computer shops, shareware providers, software speciality shops, office supply chain stores, and other sources shows that most of the programs are written for IBM-compatible computers.

However, if a company already has an Apple computer, software for most applications is usually available, although not in the quantity and diversity of titles compatible with IBM equipment. Sullivan says the decision regarding whether to buy an Apple or an IBM compatible computer is based on the preferences of the user.

Stagner (1988) addresses the possibility of purchasing a computer by mail order. He says that a person considering such an acquisition method should know how long the vendor has been in business, if the vendor can ship within forty-eight hours, and if it has an 800 phone number for technical support. Stagner suggests that the purchaser not buy unassembled components, but get the computer already assembled and tested. The problem with mail order computers is that if hardware problems occur, it is usually necessary to return the computer or parts of it to the vendor for replacement. Even the fastest turnaround may take two days, and a small company often cannot afford to have its computer down for that length of time.

Based on these comments, for this study, an IBM compatible was the computer of choice, purchased from a local vendor who could provide immediate support in case it were needed.

Selection of Software
Mick (1984) states there are four ways to obtain software: Buy a full software package, buy a function-specific module, write the system using a high-level development tool, or write the program from scratch using a traditional programming language.

Beizer comments on the write versus buy decision saying that the virtue of purchased software is that it tends to be better in most respects compared to software written in-house. He doesn't consider the cost aspect of writing software. Because writing a software package is beyond the capability of most small companies, this study focuses on purchased programs.

In an article entitled, "Selecting Software," Hollander (1992), says time, cost and availability are the major considerations to be made when deciding whether to buy or write software. He points out that more companies are choosing to purchase software instead of write it in-house because of the high costs and long lead time required to bring up home-grown systems.

Hollander contends that most companies do not know how to purchase software, and purchasing the wrong package can be costly and result in a lowering of employee morale. His solution is to put together a software selection team, then take time to define the system requirements.

Hollander's approach appears to have merit, although he doesn't specify whom should make up the selection team. Other authors have emphasized the importance of placing users of the new system on the selection team because they are the most knowledgeable in the operation of the existing system.

In his chapter "Buying Software," in Working Smart, Mick (1984) compares purchasing hardware and buying software:

Buying software is more difficult and frustrating than buying hardware. Software products are less well described than hardware products and tend to be more complex, making evaluation and comparison extremely difficult (P. 130).

Balzer provides another viewpoint in the difference between software and its relationship to hardware, contending that hardware capabilities have improved greatly during the past decade, but software productivity has lagged, resulting in much less relative improvement than hardware has experienced. Software development is an activity that is labor-intensive and not formalized (Balzer, 1989).

The selection of a software package begins, according to Carolyn Shamlin (1989) in her book, The Other Side of Software, with three tasks: 1) the needs assessment, 2) goals based upon those needs, and 3) objectives that achieve the goals. Her attitude toward software is that it should be as simple as possible, not grandiose, and meet the following criteria:

1. Have well-defined benefits.


2. Perform a function that is already well-organized and understood.

When buying software, Mick suggests the following guidelines: buying software for long-term use (with sufficient capabilities to serve the needs of the purchaser now and in the foreseeable future), making sure that good documentation is included with the purchase, insuring the software house is reliable, talking to other users, and trying the software prior to purchase.

Addressing Mick's first suggestion, for the purpose of this study, purchasing software with long-term use as a primary consideration isn't critical because outgrowing the software is not an immediate factor in a small company whose plan is to automate a manual system and not go beyond that objective for the near future. In addition, purchasing a complicated system could hinder implementation as observed by several authors: Shamlin, Mick, and Sullivan, discussed in the section entitled "Pitfalls in System Development."

Mick's second comment is that good documentation is important. However, for the purposes of this study, the selected program should be easy enough to use that extensive studying of a manual is not necessary. Furthermore, software writers often include documentation internal to the application program so that it may be consulted while the application is running. Even more advanced internal documentation methodologies include "context-sensitive" documentation in which a request for help results in documentation that is specific to the function currently being performed by the user.

Another disagreement with one of Mick's assertions is that the software house must be reliable. The reliability of the software house is not so important as the reliability of the software itself. Since many software houses go out of business, are purchased by another company, or drop product lines, it would be difficult to guarantee continued support for the product over a period of more than a few years, if that long. It is important to consider what situation the company would be in if the software house were unable to provide support. Could the company's application continue to function? This answer is difficult to answer. The approach to software selection should be to test the program enough to show that it is basically sound and will provide the same functionality as the manual system being replaced.

Mick's third point reviewed here is the suggestion that other users of the application be consulted regarding their problems and solutions. Discussions with other users is sometimes possible, especially with more popular software systems. Although some small businesses may be reluctant to discuss their software for fear of divulging competitive secrets, an attempt at finding out what works and what doesn't is important when selecting a package. Sometimes a software vendor may have a list of customers who can be contacted to discuss their experience with the software. A list of customers provided by the software vendor should be viewed with reservation because it may represent only satisfied customers and not a cross section.

The suggestion Mick makes for measuring and selecting software is for the purchaser to try it out. That activity is most important because not only does it provide verification of capabilities of the software, but it gives the employee who will ultimately use it the chance to determine how well it will replace the manual system.

Nixon's (1990) review of the development of farm-related software from a company called Farmplan is an interesting study in problems faced by uninitiated farmers when they convert from manual to computer systems to help them run their businesses.

Nixon notes that there is a wide gulf between the farmer and the software writer. The farmer has a general feel for his information needs but has no idea of how software should be written to meet them. The software writer knows how to provide an information system but does not have a good understanding of the farmer's problems.

Previous to Farmplan's software, farmers in the UK who could afford it, purchased time on mainframe computers and used computer service bureaus. The drawbacks to this approach were that the farmers had to entrust their data to an outside company and that these methods are expensive.

The advent of the personal computer enabled farmers to employ spreadsheets to track critical data. Some farm-specific programs became available in the 1980s, but they were too sophisticated and complex for the average farmer to successfully use.

Nixon describes how Farmplan was formed to solve these problems through the following approaches:

1. Provide software training to farmers to build their confidence in the programs.


2. Set up an advice hotline to address bookkeeping and accounting problems presented by farmers.


3. Periodically update the software to keep it timely and improve it.


4. Provide a hardware problem-solving service.

The Farmplan software was successful because of the provision of these concepts.

Nixon says the general characteristics of successful software are that it is menu-driven, and has data entry and report sections, input error checking, utility routines, and online help information.

These attributes can be easily verified during program testing. Nixon explains that the four criteria for program evaluation are its ease of data entry, the usefulness of its output, the effectiveness of error handling routines, and the quality of the documentation.

These items present a good guide for evaluation. The average user who tests a system should compare its functionality with that of the manual system with which he is familiar and draw conclusions from his experience running the program without specifically addressing each of these points.

In his section on evaluating computer software, Sachs (1984) says that choosing software is more difficult than selecting hardware because of the variety of software packages available and the multiplicity of features in each of them. His selection criteria are in question format:

1. Will the package solve the problem?


2. Will the program fit the current operational habits of the organization?


3. Is the program compatible with the hardware?


4. Is it compatible with the computer's operating system?


5. Does it have the capability to pass data to other programs?


6. Is the software house reputable?


7. Is it easy to use?


8. Is it reliable?


9. Is it flexible?


10. Is the user manual sufficient?


11. Is there manufacturer support for the package?


12. Is there a toll-free support number provided?


13. Is training available?


14. Is it part of a family of software?

Concerns one, two, seven, and nine ("will the package solve the problem?," "will the program fit the current operational habits of the organization?," "is it easy to use?," and "is it flexible?") can be identified by the user when testing begins. Either the program will work the way the user understands and considers acceptable; or it will do the job, but in a different way that may or may not be acceptable to the user; or it will not provide the desired functionality. Depending on the user's attitude toward the package, it may be accepted or rejected.

"Flexibility" is a vague term that doesn't have much significance in a discussion of software unless it addresses specific issues. Examples include the ability of the software to print to a dot matrix printer as well as a laser printer and, the ability to use pre-printed forms, the capability to use blank paper. Flexibility should be determined during the testing phase as program capabilities are investigated.

The third and fourth questions ("is the program compatible with the hardware?" and "is it compatible with the computer's operating system?") can be investigated prior to purchase by reading the program description which should provide a list of minimum system requirements. If the hardware lacks the necessary capabilities, either the software package should be rejected or the hardware upgraded to provide the needed power. Some software vendors, notably Software Etc., provide a money-back warranty on their software. A purchaser may return software purchased at Software Etc. within thirty days if unsatisfied for any reason.

If the software is loaded onto the system and fails to run, even after checking to determine that the correct procedures have been followed, if the user has had no problems testing other packages, perhaps it is a poor package in the first place or it is so complex that it requires expert knowledge that is absent in most small businesses. In any case, software that acts poorly during installation or start-up probably should be discarded unless there are other internal company reasons that it is needed (such as it interfaces with a currently-used package that runs well).

The sixth question ("does it have the capability to pass data to other programs?") probably isn't a concern because nearly all software packages lack this capability unless they are part of a group of applications from the same software house. There may be exceptions, but they are very rare. Data stored by package "X" is almost never capable of being fed directly to package "Y" of a different software manufacturer. For example, the accounts receivable information from an invoicing package called "Invoice-It" can't be fed directly to Medlin's accounting package. However, the invoicing data in Peachtree's invoicing system may be fed directly into Peachtree's accounting package because they have been designed to do that, and when a change is made to the data configuration in the invoicing program, the same change is made to the accounting package to insure compatibility.

Compatibility between the software systems of competing software houses is nearly non-existent. It would be like trying to fit a windshield made for a Ford into a Chevrolet. The designs are different, and they probably always will be. If a user wants inter-system compatibility, then an integrated system such as Peachtree should be selected, but that raises the problem of complexity.

Software house reputability, as raised by question six, is a moot concern because, as observed above, the continuous turnover and shake out in the software industry indicates that stability is not an attribute to be expected. If a package performs well and the user learns to understand and use it, that is more important than the viability of the software house. In the early phase of software testing and implementation there may be times when the software house would be consulted, but the company should realize that the software house may cease to exist at any time in the future and take that possibility into account when selecting a package. This is a negative point for very complex packages that might require a significant degree of assistance from the software house.

The reliability issue presented by question eight is difficult because unreliability in a program may show up immediately or later on. The term "software reliability" can have many meanings, but the primary concern is how the software treats the integrity of the data and if it operates in a consistent manner. For example, if a program tends to "lock up" the computer, making it necessary to restart the computer, it is unreliable. If data is somehow lost or corrupted, the program may be unreliable. These problems may not be the fault of the program. It may be incompatible with the hardware, there may be power surges that cause the computer to fail, there may be a hardware component that is operating intermittently, or the operator may be operating the system improperly (such as turning off the computer in the middle of a data entry session). If this software is set aside and a different package fails in the same manner, then the hardware or the operator may be suspect. However, if the new package works fine, then the failing package that was set aside may be the culprit and probably should be rejected.

A serious situation exists if the reliability problems occur infrequently. In such a case, it is more difficult to pin down the source of the problem. To prove reliability of a package, Sullivan (1991) suggests that the manual system should be run along with the new software for six months before stopping the manual one. Unfortunately, it is usually unreasonable for most small companies to run two systems in parallel for that length of time because they lack the manpower.

Question ten ("is the user manual sufficient?") also applies to on-line documentation because software houses are providing fewer manuals and more computer-based help information. This reduces the cost of printing manuals which, in general, are expensive to produce and keep updated compared to documentation that resides in the software itself. This question should be answered during the user testing phase.

In some cases, software is written to be so self-evident that reference to a manual or an on-line help facility is almost never necessary. The user will probably need to refer to some sort of printed instructions to get the program installed and to start it. From that point, most of the information should be on the screen or accessible from it. The usual help screen trigger in programs written for IBM-compatibles is the F1 (function one) key on the keyboard.

The chairman of IBM, Louis Gerstner, contends that the computer industry is very "unfriendly" from the viewpoint of easy-to-use software and hardware. He says, "This is an ego-driven industry that is in love with its own technology," a surprising statement coming from the top man at IBM ("IBM's chief," 1995). Competitive pressures are forcing software houses to improve their software so that it can be implemented, maintained, and run more easily by lay users.

In his chapter entitled "User Friendly - Buzzword or Breakthrough?," Glass (1991) says, "software engineers have begin to ‘think user'." He cites Xerox's Palo Alto Research Center (PARC) that developed the graphical user interface (GUI), first used in the Apple Macintosh and later in Microsoft's "Windows" program written for IBM and IBM-compatible computers. "Graphical user interface" is a big name for little pictures (icons) displayed on the screen. To start a program or a function, the user merely positions the mouse so that the pointer on the screen is touching the appropriate picture, then presses a button on the mouse. This replaces the earlier need to type a text command to start a function.

Questions eleven, twelve, and thirteen ("is there manufacturer support for the package?," "is there a toll-free support number provided?," and "is training available?" are similar questions that have been addressed, above, in the discussion of software house viability. Manufacturer support is nice to have in the beginning. If there is none, then the software should be very easy to use and the user doing the testing should have no problems implementing and running the package.

However, if no vendor support exists and the user has difficulty running the package, one of two situations may exist: either the user has little ability to run an office computer, or the package is not written well enough to provide operational answers within itself. If the user has had success testing another package, then he is probably capable enough to test any but the most complex program, and, as observed above, complex packages should be avoided for an initial conversion unless specific circumstances mandate their use.

The existence of a toll-free support number usually isn't an important issue in itself. First, if heavy support is required, either the user is incapable of running office equipment or the package is complex and deficient in easily available documentation. If the user's ability is the problem, that becomes a personnel concern of the company. Modern software packages are being written to be run by nearly anyone who can turn on a computer and is willing to learn. However, if the software is complex and difficult to understand, it should be rejected. Small companies usually don't have the fiscal resources to hire experts to run their software.

As for a toll-free number, the software purchaser pays for user support in one way or another. A software house cannot afford to provide free support. That cost is usually passed on to buyers of their products as a higher purchase price for the software or an annual support charge. The existence of a toll-free phone number with no per-minute charge for calls usually means that the costs of such support have been paid for by some other means. Like most businesses, software houses must keep their prices competitive and, at the same time, derive enough income to keep themselves financially viable.

Training is normally only necessary for the most complex packages. If a complex package must be acquired, then the availability of training is a concern. For software packages that address only one common business functions such as inventory control, invoicing, accounts receivable, accounts payable, general ledger, fixed assets, tax accounting, or point of sale, to name a few, training shouldn't be needed for a user who is familiar with the operation of the manual system being replaced.

Sachs' fourteenth question, "is it part of a family of software?" is a decision the company must make regarding the type of package it wants to install. In most cases, especially for the first or second package installed by a company, the package should be "stand-alone" software that is designed to address only one reporting issue. Later on, after a company has developed extensive expertise running several stand-alone packages, a complicated, integrated family of software may be considered.

Converting to a full-featured system can be a challenge because the individual programs often require one or more of the other programs to be functioning. For example, if the company purchases a fully-integrated package that consists of invoicing, accounts receivable, accounts payable, and general ledger, bringing up the accounts receivable part of the system may require the general ledger part to be brought up at the same time because accounts receivable transactions will be sent to it to keep all of the modules in balance with each other. So, the company may have to bring up several applications within the group, simultaneously.

This is a larger project than that of converting one manual system to a computer, and it is outside the scope of this study. However, with experience, a company should be able to pull off conversion to an integrated reporting system.

Referring to a May 1984 article in "Harvard Business Review" written by F. W. McFarlan and entitled "Information Technology Changes the Way You Compete," Sharland (1991) has developed four categories of software applications.

1. "Strategic" applications are those that enable a company to compete better. He says these are custom packages, traditionally developed internally. Examples of applications that fall into this category are material requirements planning (MRP), sales forecasting, and applications written to interface with suppliers.


2. "High potential" applications are less specific to the company, but normally not available from an outside source, so they are written in-house. Sharland cites manpower planning and decision support as examples.


3. "Factory" applications support common business functions such as accounts receivable, accounts payable, inventory management, and invoicing. These are commonly available off-the-shelf from software houses.


4. "Support" applications are not critical to businesses, Sharland says, but improve performance. Examples he gives are payroll, word processing, and database systems.

Sharland indicates that, of the above types of application software, only factory and support applications are candidates for consideration of being obtained from outside the company. These two types of packages are the subject of this study because they are easily purchased. However, they must be thoroughly evaluated to determine if they meet minimum acceptance criteria.

Sharland's analysis continues by describing four methods of package evaluation that would apply to "factory" and "support" applications.

1. The picture comparison method uses pictures from sales brochures, advertisements, technical manuals, and other literature. The pictures are assembled on story boards to illustrate the features of the product.


2. A detailed evaluation is based on questions about candidate packages written on an evaluation sheet. Weights are placed on the response of each question, then the answers to the questions are collected and the weighted calculations for each package compared to the others to make a selection of the best one. Software suppliers can be evaluated using the same method, according to Sharland.


3. An implemented evaluation is used for low-cost packages whereby the package is acquired and tested to determine if it is acceptable by creating and evaluating a list of deficiencies. Sharland makes some key observations regarding this method. He says testing must be done by those who will ultimately use the system because they know what the required functions are, and many of these may not be written, but, instead, a part of user knowledge. Sharland observes that the primary difficulty with low-cost packages for common applications is that there is a large number from which to choose.


4. The last method is package led evaluation, used when user knowledge of the business area for which the package is developed is limited. This evaluation uses a list of as many requirements that the users can generate, although it will certainly be incomplete in the beginning and may have to be enhanced as more is learned about the needs of the business area. The abbreviated requirements list is used to identify potential packages. Advice from software suppliers can be requested and site visits can be made at other companies using the package or to the software house to see demonstrations of the product. If the package can be acquired, at least on a provisional basis, experiments can be made with it to see how it meets the requirements.

Since this study will focus on converting a manual application that the users know, and the application to be converted will solve a single business problem, Sharland's "implemented evaluation" will be the method of choice. His 1991 book, "Package Evaluation," sums up this procedure that best fits small companies. This approach calls for the organization to obtain a likely software package and allow the users to test it to develop a list of deficiencies. Based on tests of several packages, the best one is selected.

A comment regarding the picture comparison method is that it seems unlikely that such a process would result in the collection of sufficient information to enable a company to choose one without the additional use of one of the other evaluation methods.

Another writer says the trend in software information representation on the screen is away from text-based data that requires the user to respond to text displayed on the screen by entering text to instruct the program (Dickinson, 1992). His view is that text is being replaced by graphical user interface (GUI) displays of pull-down "windows," "buttons," "icons," and other presentation devices that enable the user to navigate though an application using the on-screen pointer provided by a mouse, for example. He states that the trend is away from DOS-based applications which usually use text toward Windows-based applications which conform to the graphical user interface methodology. His contention is that the GUI format provides easier use of a product.

Although his premise has general merit, the ease of use depends more on the way a package is written and not the method of display. There are many examples of GUI software that is not easy to use for the uninitiated, for example, the database program FoxPro. A graphic presentation on the screen looks nice, but it is no guarantee that the average employee will be able to run it successfully without specific, in-depth training.

Smith and Tweney (1992) have some suggestions for general operation of invoicing software. It should have the ability for the user to add customers on the fly, while creating an invoice, instead of requiring that the invoice function be closed and then the customer add function be entered.

In addition, they recommend a package have the ability to print a message on the invoice such as "We appreciate your business." The configuration set up of the software should have built-in printer drivers to allow for the use of various printers, including a Hewlett Packard laser printer which is a de facto standard in the industry for laser printers. Most laser printers will print if the information they receive is formatted for an HP laser.

Smith and Tweney also mention that many invoicing systems will print only on pre-printed forms, often only available from the software house. Their advice is to look for a system that will print on plain paper which is much cheaper than printed forms.

Finally, the writers advise looking for software that provides for various statistical reports. Since the information will reside in the database, it would be convenient if it could be shown in various ways.

From the literature, the best suggestions regarding software selection are to buy, not to write; choose a manual application to convert that is well-organized and understood and is a relatively simple concept as opposed to an integrated family of interdependent modules; determine the acceptability of a package based upon the results of user testing; look for a package that can update other files on the fly, such as a customer file; seek one that will print on various printers and can use plain paper; and one that provides a selection of useful reports.

Determination of Common Themes
The primary common themes presented by authors that apply to small companies considering converting a manual system to a computer system are two. First, the purchase of a software package, instead of having a custom system written, was a consideration. Second, involving the users in the entire software selection and implementation process was presented by several authors. A third theme that is discounted by this study is the need for training, discussed later.

Shamlin (1989), Sharland (1991), and Mick (1984) each assert that, for a small organization, there are advantages to purchasing software as opposed to having the software written in-house by one or more employee-programmers, or having it written by outside consultants. Shamlin points out that purchased software is likely to be much less expensive, be thoroughly tested, may have a broad range of features in order to meet the needs of a wide group of clientele, is already in use by other businesses who might be sources of information about the product, and may have an on-going product enhancement program.

For the objectives of this study, in a small business, if an inexpensive package can be found that achieves the necessary functionality provided by a manual system, then implementation of it may yield positive results in the form of better customer service, more timely reports, a savings in labor, and better overall operating efficiency.

As for involvement of users, several authors held this concept to be of great importance to the success of a computer system implementation, specifically, Seymour, Chorafas, Feynman, Sharland, Shamlin, and Breslin.

Although his situation was unusual, Feynman (1985) illustrates that the success of his project hinged on the involvement of the staff. In this case, it was solving the complex calculations supporting the development of the atomic bomb during the mid 1940s. After he took over the computer center at Los Alamos, New Mexico and arranged for the workers to be told top secret information about what they were doing, their problem solution rate soared.

Shamlin, Chorafas, Sharland, Seymour, and Breslin are in agreement with the concept of involving users from the beginning of a conversion project. Each of them note that the success of the project may depend on user involvement.

No author discredited the idea of involving the user, but Bentley (1984) recognizes that a new package results in human problems attributed to change. He suggests there are three primary effects to humans when they are faced with change, and for a project to be successful, they must be addressed.

1. Physical (relocating work areas)


2. Psychological (concerns regarding layoffs, over-time work, responsibilities)


3. Social (the framework of an individual's relationship with others)

Although Bentley's three effects may carry importance in a large organization, for the purposes of this study of a small company, such concerns would probably be solved in an ad-hoc, informal manner.

Nixon (1990) and the book entitled "Management Evaluation of Software Packages" (1985), consider that proper user training is the key to the successful implementation of software. These sources do not address the possibility of user involvement in a project. For the purposes of this study, training is not considered a paramount requirement for successful package implementation.

Although training is important in some situations, only minor familiarization with the use of a computer is necessary to get a simple package up and running. In fact, users of the manual system are usually knowledgeable of its functions and its relationship to other areas within the company. They will be the best qualified to evaluate a computer package to take its place. This is why the concept of user involvement is considered one of the most important themes provided by the authors studied here.

For the small company, where one or two people can make or break a conversion project, it seems to be very important that the staff be involved from the beginning. This study will investigate the value of involving the employees in the project from its inception.

Hardware Historical Perspectives
This is an overview of the evolution of computers to illustrate the technological changes that have resulted in an inexpensive computer that small businesses use to solve many of their data processing and reporting requirements.

During the 1940s computers were developed primarily for research purposes in universities. A few private companies, such as IBM, did research and development too, but computers were so expensive to build that very few private persons or small companies could afford to own a computer until the late 1960s.

The military was one of the largest customers for computers, especially during World War II. One major application for military computers was calculation of fire control solutions for radar directed guns (Feynman, 1985).

There are two basic types of computers: analog and digital. Analog computers became popular in the late 1930s, followed by the digital computer in the late 1940s. Analog computers are mechanical, most often using servo motors to do addition and subtraction to achieve the desired solution. A mechanical input to a servo motor shaft (for example, turning it by hand), that causes it to rotate two tenths of one rotation, results in an electrical output representing that much rotation. If a second servo shaft is rotated three tenths of one full rotation, and its output signal is sent to a third servo along with that of the first servo, the sum of these two inputs causes the third servo to rotate five tenths of a full rotation. The result may be mechanically displayed by an odometer-type mechanical readout. A negative number may be represented by reverse rotation. In the above example, if the value from the first servo represented a rotation of minus two tenths of a rotation, the sum of its output and that of the second servo would result in the third servo turning only one tenth of a full rotation. In this manner, addition and subtraction are accomplished, and multiplication and division are simply a string of additions and subtractions, respectively.

Analog computers have survived only in very specialized applications because they are not accurate, require a lot of maintenance and periodic realignment, are very bulky, and are relatively slow (Forkner & McLeod, 1973).

Although there were experimental mechanical digital computers using ganged electrical switches in the early Twentieth Century, they did little useful work. In the early 1940s IBM built punch card tabulating machines that were used to solve a single mathematical function at a time, such as multiplying numbers on two punch cards and creating a third card with the result. IBM machines like this were used to do calculations required to develop the first atomic bomb at Los Alamos, New Mexico (Feynman, 1985).

With funding provided by IBM, Harvard developed the Mark I computer, a step beyond the punch card tabulator technology, and considered the first real computer, even though it was based on existing electromechanical technology.

It was in 1946 that two University of Pennsylvania engineers, Mauchly and Eckert, built the first vacuum tube computer, ENIAC (Electrical Numerical Integrator And Computer), considered the first electronic computer (Bentley, 1984). It used 19,000 vacuum tubes (called "valves" by the British who invented them), weighed thirty tons, and was housed in a large room (Forkner & McLeod, 1973). Even though it was crude by today's standards, ENIAC was one thousand times faster than any calculating device before that time (Bentley, 1984).

Vacuum tubes in computers operated in one of two states: either "on" or "off," to represent "one" or "zero," respectively. Transistors in computer chips work the same way. Strings of ones and zeros are numbers in base two and can be mathematically manipulated to achieve great accuracy. Vacuum tube computers provided a vast improvement in accuracy over analog computers, but tubes were prone to burning out, much the same as a light bulb, requiring replacement. A 1940s vintage vacuum tube computer had much less power than a modern calculator and was much more bulky.

In 1949 The University of Cambridge developed a computer called EDSAC (Electrical Delay Storage Automatic Calculator). The University of Pennsylvania followed with EDVAC (Electrical Discrete Variable Automatic Computer). EDSAC and EDVAC were unique in that they were the first computers capable of storing instructions and data and to use modifiable instructions (Bentley, 1984).

The first generation of machines considered true computers began in 1951 with the first commercial computer installation, and extended through 1958, when Sperry Rand announced the first transistorized computer, heralding the second computer generation, lasting until 1964. The third generation, beginning in 1964, featured a leap in computer power made possible by miniaturized transistor circuits, thin film memories, and the introduction of high-level languages such as Algol, Fortran, and Cobol (Bentley, 1984).

The milestones of subsequent computer generations are blurred because advancements were less revolution and more evolution (Forkner & McLeod, 1973).

Until the introduction of the minicomputer in the late 1960s, computers were of the "mainframe" variety. Minicomputers provide slightly less power with an excellent price/performance ratio, compared to mainframes.

As miniaturization continued, by the late 1970s, small "personal" computers, in kit form, were available for hobbyists to build and program. In the late 1970s Apple Computer began production of a complete, ready-to-run, personal computer that became popular with businesses, schools, and individuals. For the first time, the non-technical person could purchase and use a computer.

The computer industry giant, IBM, decided to meet Apple's personal computer challenge head-on by introducing its own entry, the IBM PC, into the personal computer marketplace in 1981 (Stagner, 1988). To motivate software developers to create programs to run on its computer, IBM elected to present its offering with "open architecture," meaning that the internal design was available to anyone so that software development would be easier. As a result of open architecture, availability of software to run on IBM exceeded that available for Apple computers.

However, the open architecture philosophy backfired on IBM as other manufacturers began building computers based on the IBM architecture. They are called "IBM compatibles" because they are designed to use the same software as IBM computers (Dodge, 1994). The resulting competition caused IBM-type computer prices to plummet. As performance increased and prices dropped, sales skyrocketed.

Traditionally, computer power has increased each year, and the price per unit of compute power keeps falling. That tradition continues today. The first IBM PC, introduced in 1981, cost $5,000 (Stagner, 1988). It was configured with one megabyte (MB) of random access memory (RAM), two floppy drives, a monochrome monitor, and a printer. Its oscillator speed, a measure of how fast a computer can execute instructions, was 4.77 megacycles (MHz). It had no hard drive because there were none commercially available for the PC at that time.

By comparison, in 1995, $2,500 would purchase a computer with 8 MB RAM, two floppy drives, a color monitor, a printer, a 540 MB hard drive, and a clock speed of 90 MHz.

The adaptation of a hard drive to the PC resulted in the PCXT, introduced in 1984 (Stagner, 1988). "XT" is an acronym for "Extended Technology." In 1985 the PCAT came out. "AT" stands for "Advanced Technology," and this machine was a departure from the earlier IBM design in that the logic circuits had been reworked to improve performance. The first model of the AT is also commonly referred to as the 286 because it uses the Intel CPU chip with the designation "80286." Subsequent models of IBM and IBM compatible computers are still referred to as "AT," even Pentiums, because they adhere to the basic architecture pioneered by the 80286.

It is this computer evolution that ultimately enabled small businesses to purchase computers to take over many of their reporting and operational tasks.

Software Historical Perspectives
In this study "software" refers to application programs, as opposed to system software that constitutes operating systems such as DOS and Windows.

The early software for PCs was text-based. Programs displayed instructions and information on the screen in text format. Screens were all monochrome, so programs didn't need to provide color displays. As programs became more sophisticated, they began using graphical displays. These were an improvement over text-based displays because they could be more easily understood through the use of icons providing information that pure text could not.

From a software perspective, improvements have kept up with hardware advancements. In fact, to some extent, software has pushed hardware development because more advanced programs require faster computers with more storage capacity.

The first stored computer programs were written in machine language, represented by ones and zeros. Machine languages continued to be used into the late 1950s when assembler languages were developed to make computer programming more efficient. One statement in assembler language can generate several machine language statements, improving programmer productivity. The problem with assembler languages is that they are specific to a manufacturer's equipment, a problem that was resolved with the advent of compiler languages which can run on a variety of computers. Programming efficiency was again improved since one compiler statement can generate many machine language statements, the equivalent of many assembler statements (Forkner & McLeod, 1973).

Technology produced the color terminal, which enabled additional information to be made available to the user. For example, warning message might be shown in red letters to attract attention. In response to Apple's graphical user interface (GUI), Microsoft developed a GUI for IBM computers and called it "Windows." Early versions are not true operating systems, but a collection of graphics displays that allow the computer to launch programs. Windows programs are characterized by "pull-down windows" that are information boxes allowing complex selections and decisions to be easily made by the user. The easiest method of interfacing with Windows is by a pointing device, such as a mouse or track ball. By manipulating the cursor around the screen, the user can point to the selection that he wishes to activate.

Programs written for IBM and IBM compatible computers are of one of two types: DOS or Windows. A DOS program runs using the DOS operating system and does not need Windows. A Windows program requires Windows to be running before it can be started. A program that runs only with DOS will run faster than the same program that is written for Windows because Windows is an additional series of programs that must be run, requiring additional hardware resources.

Faster, more powerful computers have accommodated larger, more complex programs that older computers built a few years ago cannot run.

If a program is well written, it doesn't matter whether it runs under DOS or under Windows. It should be easy to use and provide the necessary information in a clear manner. For this study, an easy-to-use, highly functional software package was sought, regardless of whether it was DOS-based or required Windows.

Pitfalls in Conversion Projects
Shamlin (1989) observes that if the users aren't involved in the project, they won't take ownership of the system to insure its success. When an individual is invited to participate in testing and implementing a software product, he becomes an integral part of the process. When that person helps select and test the system, it is hoped that he will become a supporter of it and take a certain amount of pride and ownership in it. This ownership attitude motivates the user to try to overcome system deficiencies, causing him to find ways to work around problems that would frustrate and alienate someone who has not developed a sense of "ownership" of the project. If this attitude can be instilled in key users of the system, they will do all they can to insure that the system works.

Feynman's (1985) experience running the computer center at Los Alamos during World War II is probably the first recorded example of a computer room staff doing as little as possible until given "ownership" and a sense that they were an important part of the project.

Feynman took over the computer center after the first manager got sidetracked investigating the computer's capabilities instead of using it to solve the complex mathematical problems the scientists needed to build the first atomic bomb. The group of people running the computer had only solved three problems in nine months. Feynman describes the situation when he took over:

. . . although they had done only three problems in nine months, I had a very good group. The real trouble was that no one had ever told these fellows anything. The army had selected them from all over the country for a thing called Special Engineer Detachment - clever boys from high school who had engineering ability. They sent them up to Los Alamos. They put them in barracks. And they would tell them nothing. (p. 110).

The staff came to work each day, punched numbers into cards, and ran them through the IBM computers, but for what purpose, they didn't know. Feynman's approach was to have Oppenheimer get permission from the security people for Feynman to give the men a lecture on what the Los Alamos project was all about and the significance of the computations they were doing.

After the lecture, the men were very excited. They felt involved. Now they understood that they, too, were helping win the war and their work was of utmost importance to national security. Their efforts in the computer lab rose considerably, and they began to invent ways of doing the computations better. They began working three shifts, and they didn't need supervision. In fact, they invented some additional programs to supplement those that the scientists, like Feynman, had developed. During the next three months they solved nine problems, a productivity increase by a factor of nine!

Converting a manual system to a computer should only be done if the manual application operates well (Bentley, 1984). The basis for this assertion is that automating a poorly running system won't make it better. It may actually cause a degradation in performance. In a small-company environment, the solution would be to choose a different system to be converted or take the time to iron out the problems in the manual system before attempting to migrate it to a computer.

As mentioned previously, in the section entitled "Selection of Software," Shamlin states that only a manual system that is well understood should be converted to a computer.

Computers can be a boon to small businesses, but they have weaknesses that have to be considered (Bentley, 1984). Computers, small or large, are hardware devices that are susceptible to failure. Although it is uncommon, they are essentially electromechanical devices, and, as such