Sunday, October 19, 2008
Chapter 10: Acquiring Infomration Systems & Applications
Placing a dolar value on the cost of IT investments may not be as simple as it sounds.
One of the major challanges that companies face is to allocate fixed costs among different IT projects. Fixed costs are those coss tah tremain teh same regardless of any change in teh activity level.
For IT, fixed costs include infrastructure cost, cost of IT services, and IT management cost. For e.g. teh salary of the IT director is fixed, and afdding one ore application will not change it.
Another complication is taht the cost of a system does not end when the system is installed. Costs for maintaining, debugging, and improving the system can accumulate over many years. In some caes, the company does not even anticipate them when it makes the investment. E.g. is the cost of the year 2000 (Y2K) reprogramming projects that cost organisations worldwide billions of dollars at the end of the 2oth century.
2. What difficulties accompany the intangible benefits from IT?
-benefits may be harder to quantidy, especially becasue many of them are intangible (e.g. improved customr or partner relations or iproved decision making.
-The fac tthat org's use IT for several purposes further complicates benefit analysis.
- In addition, to obtain a return from an IT investment, the company must implement the technology successfully.
- In reality, many systems are not implemented on time, wihtin budget, or with all the features originally envisioned for them.
- Finally, the proposed system may be "cutting edge." In these cases there may be no previous evidence of what sort of financial payback the company can expect.
3. Define NPV and ROI, and business case approaches.
Net Present Value: calculations for cost-benefit analyses. Using the NPV method, analysts convert future values of benefits to their present-value equivalent by "discounting" them at the organisation's cost of funds. They can then compare the present value of the future benefits to the cost required to achieve those benefits and determine whether the benefits exceed the costs.
ROI: measures managements effectiveness in generating profits with its available assets. It is a percenatge, and the higher the percentage return the better.
4. What type of companies provide outsourcing service?
Small/medium sized companies with few IT staff and limited budgets are best served by outside contractors. Acquiring IT applications from outside contractors or external organisations is called outsourcing.
Several types of vendors offer services for creating and operating IT systems inclusing e-commerce applications. Amnay softeare companies, from IBm to Oracle, offer a range of outsourcing services for developing, operating, and maintaining IT applications. IT outsourcers such as EDS, offer a variety of services.
5. Define ASPs and list their advantages to companies using them
Application Service Provider (ASP) is an agent or a vendor whoasssmebles teh software needed by enterprises and packages the software with services such as developemnt, operations, and maintenance. The custoerm then accesses these applciations via the internet.
-using hosting vendors is particualrly desirable option for SME businesses.
-developing and opearting IT applications in-house can be time-consuming and expensive for these entities.
6. List some disadvantages of ASPs.
Leasing from ASP's offers such compaies several advantages.
- It saves various expenses (labour costs) in the initial developement stage.
- Helps reduce the costs of software maintenance and upgrading and user training over the long run.
- the companycan select another software product from the vendor to meet its chamging needs.
- This oppostion savse the comapny the costs of upgrading the existign software.
- Makes teh company more competitive by enhancing teh comapy's ability to adapt to the changing market conditions.
7. List the major steps of selection of a vendor and a software package.
Step 1. Identify Potential Vendors through software catalogues, technical and trade journals, consultants and industry analysts, web searches.
Step 2. Determine the evaluation criteria.
-characteristsics of the vendor
-functional requirements of the sysetm
- technical requirements tah tthe software must satisfy
- amount and quality of documentation provided
- vendor support of the package
Step 3. Evaluate Vendors and Packages
Often the gives the vendors and packages an overall score:
- assigning an importnace weight to each of the criteria
- ranking the vendors on each of the weighted criteria (1 to 10)
- and then multiplying the ranks by the associated weights
Step 4. Choose the vendor and package
Once teh company has shortened the list of potential suppliers, it can begin negotiations with these vendors to determine how their packages might be modified to remove any discrepancies with teh companys IT needs.
Step 5. Negotiate a contract.
It specifies both the price of the software and the type and amount to support that the vendor agrees to provide. The contarct will be the only recourse if ither the system or the vendor does not performa s expected.
step 6. Establish a Service Level Agreement
SLA's are foraml agreemnts that specify how woerk is to be divided between the company and its vendors.They describe how quality checks will be made and what is to be done inc ase of dsiputes.
8. Describe a request for proposal (RFP).
is a document that is sent to potential vendors inviting them to submit a prposal taht describes their software package and expalins how it would meet the companys needs. The RFP provides the vendors with information abou tt eh objectives and requiremnts of the system. Specifically, it describes the enviroenmtn in which the system will be used, the geanearl criteria tah tthe comapny will use to evaluate the proposals and the conditions for submitting the proposals.
9. Describe SLAs.
SLA's are foraml agreemnts that specify how woerk is to be divided between the company and its vendors.They describe how quality checks will be made and what is to be done in case of dsiputes.
Accompish tehse goals:
1. definign the responsibilities of both partners
2. providing a framework for designing support services
3. allowing the company to retain as much control as possible over its own systems.
Sunday, October 12, 2008
Ch 9: Managerial Support Systems
Simon (1977) described the process as composed of three major phrases: intelligence, design and choice. A fourth phrase, implementation was added later.
- The decision making process starts with the intelligence phrase, in which mnagers examine a situation and identify and define the problem.
- In the design phase, decision makers construct a model that simplifies the problem. They do this by making assumptions that simpify reality and by expressing te relationships among all the relevant variables. Managers than validate the model by using test data. Finally, decision makers set criteria for evaluating all potential solutions that are proposed.
- The choice phrase involves selecting a solution, which is tested "on paper".
- Once this proposed solution seems to be feasible, decision making enters the last phase - implementation. Implementation is successful if the proposed solution actually resolvesd the problem. Failure leasds to a return to the rpevious phases. Computer based decison support attempts to automate several tsks in the decision making process, in which modeling is the core.
2. Why do managers need IT support?
- the number of alternatives to br considered is constantly incresing due to innovations in technology, improved communications, the developemnt of global markets, an the use of the internet and e-business. The more alternatives that exist, the more copmputer-assisted search and comoarisons are needed.
- the decisions must be made under time pressure. Frequently, it is not possible to process informationmanually fast enough to be effective.
- Due to increased uncertainty in teh decison environment, decisions are becoming more complex. It is useually necessary to conduct a sophisticated analysisi in order to make a good decision. such analysisi requies the use of modeling.
- It is often necessary to access remote informaion rapidly, consult with experts, or conbduct a group decision-making session, all without incurring large expenses. Decision makers can be in different locations, as can the information. Bringing nthem all togethr quickly and inexpensively may be a difficult task.
3. Describe the decision matrix.
The three primary classes of problem structure and the three broad categories of the nature of decisions can be combined in a decsion support matrix taht consists of nine cells. Lower-level managers usually peform the structured and operational control-oriented tasks (cells 1, 2 and 4). The tasks in cells m3, 5, and 7 are usually the responsibility of middle managers and professionalstaff. Finally, tasks in cells 6, 8 and 9 are generally the responsibility of senior executives.
4. Describe the capabilities of data mining.
-Reatiling and Sales. Predicting sales, preventing theft and fraud, and determining correct inventory levels and districution sceduales among outlets.
- Banking. Forecasting levels of bad loans and fraudulent credit card use, predicting credit card spending by new customers, and determining whichc kinds of customers will best respond to (and qualify for) new loan offers.
- Manufacturing and Production. Predicting machinery failures and finding key factors that help optimize manufacuring capacity.
-insurance. Forescaring claim amounts and medical coverage costs, classifying the most important elemnets that affect medical coverage, and predicting which custoemrs will buy new insurance policies.
- Policework. Tracking crime patterns, locations, and criminal behaviour; identifying attributes to assist in solving criminal cases.
- Healthcare. Correlating the demographics of patients with critical illness and developing better insights on how to identify and treat symptoms and their causes.
- Marketing. Classifying customer demographics taht can be used to predict which customers will respond to a mailing or buy a particular product.
5. What are some of the capabilities of digital dashboards?
- Drill-down. Ability to go to details, at several levels; can be done by a series of menus or by direct quries (using intelligent agents and natural language processing).
- Critical Success Factors (CSF). The factors most critical for the success of business. These can be organisational, industry departmental, etc.
- Key Performance Indicators (KPI's). The specific measures of CSFs.
- Status Access. The latest data available on KPI or some other metric, ideally in real time.
- Trend Analysis. Short, medium and long term trend of KPIs or metrics, which are projected using forcasting methods.
- Ad-hoc analysis. Analyses made any time, upon demnads and with any desired factors and relationships.
-Exception reporting. Reports that highlight deviations larger than certain thresholds. Reports may include only deviations.
Monday, October 6, 2008
Chapter 8: Organisational Information Systems
TPSs monitor, collect, store, and process data generated from all bsuiness transactions. These data are inputs to the organisation's database. Theye are also inputs to teh functional information systems, decison support systems, customer relationship management, knowledge management, and e-commerce. TPSs have to handle high volume and large variations in volume. (e.g. during peak times) efficently, avoid errors and downtime, record results accureltly and securely, and maintain privacy ajnd security.
First data is collected by people or sensors and are enterd into the computer via any input device. Next, teh system processes data in one of 2 basic ways: batch processing (palcing data into groups). The system then prepares and processes the batches periodically (e.g every night).
Section 8.2 - Before You Go On…
1. What is a functional area information system? List its major characteristics.
FAISs provide information mainly to lower and middle level managers in teh functional areas. They use this information to help them plan, organisae and control opeartions. The information is provided in a variety of reports. E.g comparitive reports compare, for e.g., the peformances of different business units or time periods.
2. How does an FAIS support management by exception? How does it support on-demand reports?
1. Define ERP and describe its functionalities.
Enterprise Resource Planning Systems integrate the planning, managemnt, and use of all of an organisations resources. The major objectives of ERP stsrems are to tightly integrate the functional areas of the organisation and to enable information to flow seamlessly across the functional areas. Tight integration means that chjamnges in one functional area are immediately reflkected in all other pertinent funcational areas.
ERP provide the information necessary to vcontrol the business processes of the orgnaistaion. A business process is a set of relkated steps or preocedures designed to produce a specific outcome. Business processes can be located entirely within one functional area, such as approving a credit card application or hiring a enw employee.
ERP software included a set of interdependednt software modules, linekd o a common database, taht provide support for the internal business processes in the following functional areas: finance & marketing, sales & marketing, manufacturing & production.
2. List some drawbacks of ERP software.
- expensive
- extremely complex
- time consuming to implement.
- Companies may need to changeeisting busines processes to fit the predefined business processes of the software.
1. Define a supply chain and supply chain management (SCM).
Supply Chain: refers to the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end custoemr. A supply chain also includes the organisations and processes taht create and deliver products, infomation, and services to end customers.
SCMs: function is to plan, organise, optimise the supply chains activities. Like other functional areas, SCM utilises information systems. The gola of SCM systems is to reduce friction along the supply chain. mFriction can invlve increased time, costs, and inventories as well as decreased customer satisfaction. SCM systems, then, reduce uncertainty and risks by decresing inventorylevels and cycle time and improving business processes ans customer service. All these benefits contribute to increased profitability and competitiveness.
2. List the major components of supply chains.
Involves 3 segments:
1. Upstream: where sourcing or procurement from external supplers occurs (orders, info, payments, returns)
2. Internal: where packaging, assembly, or manufacturing takes place.
3. Downstream: where distribution takes place, frequently by external distributors (products, services, info).
INTERNAL
Tier 3 Tier 2 Tier 1 <----------> Distributor or
Suppliers <->Suppliers<-> Suppliers<->manufacturer<-> Wholesaler<->Reatiler<->Customer
There are 3 flows in teh supply chain:
- Material Flows: are the physical products, raw materials, supplies, asn so forth that flow along the chain. Also incude reverse flows (returned products)
- Information Flows: consist of data taht are related to demand, shipments, orders, returns,l and scheduales, as well as chanegs in any of tehse data.
- Financial Flows: involve money transfers, payments, credit card information and authorisation, payment schedules, e-payments, credit-related data.
3. What is the bullwhip effect?
refers to erratic shifts in orders up and down the supply chain. Basically, customer demand variables can become magnified when they are viewd through the eyes of managers at each link in teh supply chain. If each distinct entiry that makes ordering and the inventory decisions palces its own interests above those oif the chain, then stockpiling can occur at as many as seven or eight locations along the suppy chain.
4. What are some solutions to supply chain problems?
1. Define EDI and list its major benefits and limitations
Electronic Data Interchange is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically. EDI formats these documents according to agreed upon standards and then transmits message susing a converter, called a translator. The message travels over either a value added network (VAN) or the internet.
Benefits:
-minimizes data entry errors becsue each entry is checked b ythe computer.
-the length of the message can be shorter, and the emssgaes are secured.
-reduces cycle time
- increases productivity
-enhances customer service
minimises paer usgae and storage.
Limitations:
-implementing a EDI system involves a significant initial investment
-ongoing operation costs are high due to use of expensive, private VANs.
traditional EDI systems is inflexible. E,g it is difficult to make qucik changes, such as adding business partners.
- requires a long start up period
-business processes must sometimes be restructured to fit EDI requirements
2. Define an extranet and explain its infrastructure (in relation to Internet technologies).
The main goal of extranets is to foster collaboration betweena nd among bsuiness partners. An extranet is open to selected B2B suppliers, custoemr snad other busienss partners. These indiciduals access the internet through teh internet. Extranets enable people who are located outside a company to work together with the comapny's internally located emmployees. An extranet also enables external business partners to enter the corportate intranet, via the internet, to access data, palce orders, check status, communciate and collaborate. It also enables partners to perform self-service activities sucha s checking the status of orders or inventory levels.
Extranets uses virtual private betwork (VPN) technology to make communication over the internet more secure. The intenet-based extranet is far less costlythen propreitory networks.
The major benefits of extranets are:
- faster processes and informtion flow
-improved order entry and custoemr service
- lower costs (communciation, travel, administartive overhead)
-overall improvement in business effectiveness.
3. List and briefly define the major types of extranets.
-A Company and Its Dealers, Customer or Suppliers: such as extranet is centred arounbd one company. E.g FedEx extranet that allows custoemr sto track the status of a package.
-An Industry Extranet: The major palyers in an industry may team up to create an extranet taht will benefit all of them. E.g. ANXeBusiness nables comapnies to collaborte effectiveky through a network that provides a secure global medium for B2B informaytion exchange.
- Joint Ventures and Other Business Partnerships: partners in a joint venture use the extranet as a vehicle for communication and collaboraqtion. An example is Bank of America's extranet for commercial loans. The partners involved in making such loans include a lender, a loan broker, an escrow company and a title company. The extranet connects lenders, loan applicants, and the loan organisaer, bank of America.
Chapter 7: Wireless, Mobile Computing and Mobile Commerce
- The Wireless Application Protocol (WAP) - is the standard that enables wireless devices with tiny display screens, low-bandwidth connections, and minimal memory to access Web-based information and services.
E.g. pagers, e0mail handhelds, personal digital assisstants (PDAs) and mobile phones. The capabilities of tehse devices include: bluetooth, Wi-Fi, a digital camera, address book, access to email, instant messaging, MP3 player, internet access -The Blackberry 8800.
2. Describe the various types and general characteristics of wireless transmission media/technologies - microwave, satellite, infrared and radio waves.
-Microwave transmission systems are widely used for high volume, long distance, line-of-sight communication (transmitter and reciever must be in view of each other). Therefore, microwve toweres cant be spaced more than 30 miles apart as world is curved not flat. Susceptible to environmental interference during sever weather such as heavy rain/snow storms. Being replaced by staellite communication systems.
- Satelllite Transmission systems: make use of communication satelittes. currently, there are three types of satellites around the earth: geostationary (GEO), medium earth orbit (MEO), and low earth orbit (LEO). Geo fartherst for the eart and LEO the closest. As with microwave transmission, satellites must recieve and transmit data via line of sight. It overcomes the limitations of microwave data relay stations becsue the hight the satellite orbits, the larger the footprint. In contrast to line of sight transmission with microwave, satellites use broascast transmission, whcih sends signals to many recievers at one time. So, even though satellites are line-of-sight like microwave, they are high enough for broadcast transmission, this overcoming the limitations of microwave.
- radio transmisson: uses radio-wave frequencies to send data directly between transmitters abd recievers. radio transmission has several advanatages: radio waves travel through normal office walls, inexpensive and easy to install, transmit data at high speeds. Therefore, being used to connect computers to LAN and peripheral equiptment.
- Infrared Transmission: Infrared light is a red light that is not commonly visible to human eyes. Common applications include: remote cotrols for tv, VCRs, DVDs and CD players. Used for short -distance connections between computers and peripheral equiptment and LAN.
3. What is bluetooth/how is it used?
Is a industry specification used to create small personal area networks (a computer netwrok used for communication amongcomputer devices clsoe to one person). A bluetooth is a chip technology that enables short-range connection (data and vocie) between wireless devices. E.g mobile phones.
4. What are WLAN's, Wi-Fi, WWAN's, WiMax?
- Wireless Local Areda Network (WLAN): A computer network in a limited geograpical area taht used wireless transmission for communication.
- Wireless Fidelity (Wi-Fi): is a medium range WLAN, which is basically a wired LAN but without cables
- Wireless Wide Area Networks (WWANs) :Wireless WANs, which can bridge branch offices of a company, cover a much more extensive area than wireless LANs. Unlike WLANs, which offer limited user mobility and instead are generally used to enable the mobility of the entire network, WWANs facilitate connectivity for mobile users such as the traveling businessman. In general, WWANs allow users to maintain access to work-related applications and information while away from their office.
- Wireless Broadband or WiMax: has a wireless access range of up to 31 miles, compared to 300 feet for Wi-Fi and 30 feet for bluetooth. It is a secure system, and it offers features such as voicve and video.
WiMAX, a contraction of Worldwide Interoperability for Microwave Access, is a telecommunications technology that provides for the wireless transmission of data in a variety of ways, ranging from point-to-point links to full mobile cellular-type access. The technology provides broadband speed without the need for cables.
5. What are the drivers of mobile computing and m0bile commerce
Mobile commputing: refers to a real-time, wireless connection between a mobile device and othercomputing environments, such as internet/intranet. 2 characteristics that differentiate it from other forms of computing: mobility and broad breach. Mobility is based on the fact that users carry a mobile device with them and can initiate a real-time contract with other systems from wherever tehyhappent o be. Broad rech refers to the fact taht when users carry an open mobile device they can be reached instantly.
Mobile Commerce: Electronic commerce transactions that are conducted in a wireless environment, especially via the internet.
The developemnt of m-commerce is driven by the following factors:
- Widespread availability of mobile devices.
- No need for a PC. Access internet via a smart phone or another wireless device.
- The "cellphone culture": widespread use of mobile phones.
- Declining prices: price of wiireless devices is declining and will continue to decline.
Bandwidth improvement: to conduct m-commerce you need sufficeint bandwidth for transmitting text, voice, video and multimedia. Wi-Fi, 3G cellular technology, and WiMax provide the neccessary bandwidth.
6. Be able to explain how mobile technologies can be applied to business solutions
7. Explain the nature of RFID
Radio Frequency Identification Technology: A wireless system that allows manufacturers to attach tags with antennas and computer chips on goods and then track their movement through radio signals. Was developed to replace barcodes. An RFID tag is an object that can be applied to or incorporated into a product, animal, or person for the purpose of identification and tracking using radio waves. Some tags can be read from several meters away and beyond the line of sight of the reader. Tags remain expensive so not used in low-priced items.
8. Identify the 4 main security threats that arise from the use of mobile technologies
The 4 major threats to wireless networks are rogue access points, war driving, eavesdropping, and radio frequency jamming.
-A rogue access point is an unauthorised access point to a wireless network.
-war driving is the act of locating WLANs while driving (or walking) around. To war drive all you need is a Wi-Fi detector and a wireless enabled computer.
-Eavesdropping refers to efforts by unauthorised users to access data taht are travelling over wireles networks.
-Radio Frequency jamming a person or a device intentionally or unintentioanlly interferes with your wiureless network transmissions.
Friday, September 19, 2008
Breakout Session
Business Strategies:
1. Custom T-Shits at low prices ordered online and shipped internationally.
2. Purchase appropraite equiptment.
3. Make a Website
4. To use a low rent industrial premises as well as manufacturing and shipping centre.
Company Vision:
The aim of the company is to make the most original and fun T-shirts.
What the company does:
To sell T-shirts that are both pre-designed motifs and custom designed. Our webiste would allow you to design your own. Write slogans; choose from a few pre-designed logos to accompany it, the colours of your choice and placing of your personalised design.
The departments the company has:
- Marketing/Advertising Department
- Finance Department
- Manufacturing Department
- Human Resouce Department
- Shipping Department
- Website Design and Upkeep
- Network management
- Network and application monitoring
- Provide 2nd and 3rd level technical support through the IT Service Desk
- Architecture and design for infrastructure and networks
- Construction and development of IT infrastructure and voice and data networks
- Server support and system administration
- Database administration
- Network engineering
- Services and Support
Finance Department: Medium specs for standard application, Number Pads, Swipe Cards Entry, High Security, Biometrics -PC.
Software to be used in each department of the business:
Marketing Department:
Aprimo – resource management (http://aprimo.com/)
Adobe Creative Suit – graphic and web design (http://adobe.com/products/creativesuit/)
ACT by Sage – Customer Contact Management (http://www.sagebusiness.com.au/)
Adapt SYSPRO – Customer Relationship Management (http://www.2020software.com/products/adaptcrm.asp)
Accounting Department:
Microsoft excel
MYOB (http://myob.com/)
Microsoft Dynamic GP – managing and integrating finance, e-commerce and project accounting (http://www.2020software.com/products/microsoft_dynamics_gp.asp)
Manufacturing Department:
Microsoft Dynamics AX – resource planning and collaborating trading partners (http://www.2020software.com/products/microsoft_dynamics_ax_manufacturing.asp
Human Resource:
Ultimate Software’s Ultipro – payroll, recruitment, web-portal (http://www.2020software.com/products/ultimate_software_ultipro.asp)
Logistics:
JAIX – deliveries in freight, transport, courier and warehousing (http://www.jaix.com.au/)
Internet Security:
Norton Antivirus (http://www.norton.com/)
Code of Ethics:
1: Society
I will uphold the health, safety and welfare of wider society, future generations and the environment.
2: Organisations
I will serve my employers and clients honestly, competently and diligently.
3: Peers
I will respect and support the legitimate needs, interests and aspirations of all my colleagues and peers.
4: Staff
I will encourage and assist those I supervise both to fulfil their responsibilities and to
develop their full potential.
5: Profession
I will strive to be a fit representative of my profession and to promote the vision of the Institute.
6: Self
I will be honest in representing myself and will continually strive to enhance both my
professional competence and my ethical understanding.
Security Threats:
Human Error – leaving computers un-attended when serving customers or choosing a password that can be easily hacked.
Malicious Activity – Failing to change a password after an employee has been terminated.
Natural disaster – blackouts, fires
Responses:
An initial response is to purchase a software package consisting of:
- Anti-virus
- Anti-spam
- Anti-spyware
- Phishing Filter
- Remote Management
Another response is to outsource data to external servers.
Disaster Recovery Plan:
One to avoid losing all the data is to store the information into external servers in a different area.
Data we will store about customers and products:
· Sales Data – customers, sales and contacts
· Inventory Data – orders, stock, delivery.
Store about a customer and also a particular product.
1. Customer Name
2. Customer Identification Number
3. Phone Number
4. Customer Address
5. Order Description
6. Order Date
7. Delivery Date
The Primary Key:
Customer Identification Number. This will be a unique number for each individual customer.
Who will access the data and how:
Marketing department (CRM) and system administration will only be able to access data. To ensure that only authorized employees access the data, we would need to deploy an authorization declaration for permission to access personal information. To monitor that this information and protect customers, system administration would need to access this information without notifying the authorized user.
Chapter 6: Electronic Business & Electronic Commerce
E-Commerce describes the process of buying, selling, transfering or exchanging products, services, or information via computer networks, including the internet.
E-Business is a somehat broader concept. In additon to buying and selling of goods and services, e-business also refers to seviving customer, collaborating with business partners, and performing electronic transactions within an organisation.
2. Distinguish among B2C, B2B, C2C and B2E electronic commerce.
B2C: the sellers are organisations, and the buyers are indiciduals.
B2B: both the sellers and buyers are business oeganisations.
B2E: an organisation uses Ec internally to provide information and services to its employees.
3. List some benefits and limitations of e-commerce.
Benefits:
-Benefits organisations by making national and international markets more accessbile and by lowering the costs of processing, distributing, and retrieving iformation.
-Customers benefit by being able to access a vast number of products and services, around the lock.
-The major benefit to society is the ability to easily and convieniently deliver information, services, and products to people in teh cities, rural areas,a nd developing countries.
Limitations:
-Technical limitations include the lack of universally accepted security standards, insufficient telecommunications bandwidth, end expecive accessibilty.
-Nontechnological limitations include the perceptions taht EC is insecure, has uresolved legal issues, and lacks a critical mass of sellers and buyers.
As time passes, the limitations, especially the technologiacl ones, will lesson or be overcome.
1. List the major issues relating to e-tailing.
Electronic retailing is the direct sale of products and sercices through electronic storefronts or electronic malls, usually designed around an electronic catalogue format.
2 major Inssues that can restrict their growth.
- Channel conflicts: clicks (onle portion of org) and mortar (tradition part of org, "bricks") companies may face a conflict with their regualr distributers when they sell dircetly to customers online. This can alientate the distributors. Channel conflict has forced some companies (Ford Moror Company: buy online but have to pick up car froma dealer) to avoid direct online sales. Also, logistics servuces provided by the offline activities to the online activities. E.g. how shouls a company handel returns of items brought online?
-Order Fulfillment: Any time a comoany sells directly to customers, it is involved in various order0fulfillment activities. It must performt he following activities.: quickly find the products to be shipped, pack them, speedy delivery, collect money (advance or by COD), handle return of unwanted of defective products. Difficult to accomplish both effectively and efficiently. Therefore, difficulties in supply chain.
2. What are spamming, permission marketing and viral marketing?
Spamming: is the indiscriminate distrubution of electronic ads without the permission of the reciever.
Permission Marketing: asks consumers to give their permission to voluntarily accept online advertising and email.
Virtual Marketring: refers to online "word of mouth" marketing. The idea behibnd thsi is to have people forward messages to friends.
1. List the various electronic payment mechanisms.
-Electronic checks
-Electronic credit Cards
-Purchasing cards
-Electronic Cash
-Digital Wallets
2. What are micropayments?
Small payments of a few dollars or less.
1. List some ethical issues in EC.
-Apply to E-business.
- By making it easier to store and transfer personal inforamtion, e-busienss presents some threats to privacy. Encryption provides protection.
-Another privacy issue tracking. Indiciduals activities on the Internet can be tracked by cookies. programs such as cookies raise privacy concerns. Tehy store your tracking history on your computers harddrive and anytime you revisit a a certain web site, the computer knows it.
-May elminate the need for some companys employees.
2. List the major legal issues of EC.
-Fraud on the Internet: could involve stock promotors falsely spreading positive rumors about the prospects of the companies they touted in order to boos the stock price.
-Domain Name: Competition over domain names. Domain names are assigned by central non-profit organisations that check for conflicts and possible infringement or trademarks.
-Cybersquatting: refers to the practice of registering or using domain names for the purpose of profitingh from the goodwill or trademark belongingt o someone else.
Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons
Chapter 5: Network Applications
1. Describe the three network applications that we discussed in this section and the tools and technologies that support each one.
- Discovery. By browsing and searching data sources on the web, users can apply the Internets discovery capability to areas ranging from education to governemtn services to entertainment to commerce.
Eg. Search Engine
Publication of Material in Foreign Languages
Portals
- Communication. Many types of communication, including email, call centres, electonic chat rooms,and voice communication.
- Collaboration. An important feature of modern organisations is taht people collaborate to perform work. It is efforts by 2 or more entities.
E.g Workflow technologies, groupware.
2. What are the business conditions that are leading to the increased importance of videoconferencing?
The latst version of videoconfrencing, called telepresence, enables participants to sealessly share data, voice, pictures, graphics and animation by electronic means. Conferees can also transmit data along with voice and video, ehich allows themn to work on documents together and to exchange computer files.
1. Describe the underlying technologies, applications and types of Web sites that comprise Web 2.0.
Web 2.0 is a loose collection of information technologies adn applications, and of the web sites taht use them. These web sites enrich the user experience by ensouraging user participation, social interaction, and collaboration.
-Ajax
- Tagging
- Blogs and Blogging
- Really Simple Syndication
- Podcasts and Videocasts
- Wikis
2. Describe the function of Web services.
Web services are applications, delivered over the internet, taht users can select and combine through almost any device, from personal computers to mobile phones. By using a aset standards, these applciuations permit differebnt systems to "talk" with one another - that is, to share data and service - eithout requiriung human beings to translate the conversations.
3. Describe the function of service-oriented architectures.
SOA is an IOT architecture that makes it possible to construt business applicarions using Web services. The Web services can be reused across an organisation in other applications. So, a Web service taht checks a consumer's credit could be used with a service that processes a mortgage application or a service taht processes a credit card application.
5.3 E-Learning & Distance Learning
1. What is the difference between e-learning and distance learning?
E-learning refers to learnign supported by the web. Distance Learning (DL) refers to any learnign situation in whichteachers and students do not meet face to face.
5.4 Telecommuting
1. What is telecommuting? A work arrangement whereby employees work at home, at the customer's premises, in special workplaces, or while traveling, usually using a computer linked to their place of employment.
2 What are the advantages and disadvantages of telecommuting from the viewpoint of the employee? From the viewpoint of the organization? Employee Advantages: reduced stress and imroved family life. Empyment opportunities for household people such as single parents and persons with disabilities. Employee Disadvantages: increased feelings of isolation, possible loss of fringe beenfits, lower pay (in some cases), no workplace visibility, the potential for slower promotions, and lack of socialisation. Organisation Advantages: increased productivity, the ability to retain skilled employees andt he ability to attract employees who dont live within commuting distance. Organisation Disadvantages: difficulties in supervising work, potential data security problems and training costs.
Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons
Thursday, September 11, 2008
Chapter 4: Data and Knowledge Management
- The amount of data increases exponentially with time
-Data are scattered throughout orgabisations and are collected by many individuals using various methods and devices. Data are frequently stored in numerous servers and locations and in different computing systems, databases, formats and human and computer languages.
-Data decays overtime. E.g. customer smove, new producrs aredeveloped.
Data security, quality and integrity are critical, yet easily jeopardized.
2. What are the various sources for data?
-Internal Data
-External Data
-Personal Data
3. What is a primary key and a secondary key?
Primary Key: the identifier field or attribute that uniquely identifies a record. E.g. Customer ID Number.
Secondary Key: an identifier field or attribute that has some identifying information, but typically does not identify the file with complete accuracy. E.g. a students major, if a user wnted to find all students in a particular major field of study.
4. What is an entity and a relationship?
Entity-relationship (ER) diagram: Document that shows data entities and attributesn and relationships among them.
Entity-relationship (ER) modeling: the preocess of designmng a database by organisaing data entities to be used and identifying the relationships among them.
5. What are the advantages and disadvantages of relational databases?
Advantages
- allow you to manage your data more efficently, avoid errors, and manipulate it easily.
-related tables can be joined when they contain common columns.
The uniqueness of the primary key tells the DBMS which records are joined with others in related tables. This feature allows users great flexibility in the variety of queries they can make.
Disadvantages
Because large-scale databases cn be composed of many interelated tabls, the overall design can be complex and therefore have slow search and access times.
6. What is knowledge management?
A process that helps organisations identify, select, organise, disseminate, transfer,a nd apply information and expertise that are part of the organisation's memory and taht typically reside within the organisation in an unstructured manner.
7. What is the difference between tacit knowledge and explicit knowledge?
Tacit Knowledge: The cumulative store of subjective or experiential learning; highly personal and hard to formanlize knowledge.
Explicit Knowledge: The more objective, rational, and technical types of knowledge.
Technology Guide 5: Basics of the Internet and the World Wide Web
1. Describe the various ways that you can connect to the Internet?
Connecting via an Online Service: Access the internet by opening an account with an Internet service provider. An Internet service provider (ISP) is a company that offers Internet connections for a fee. E.g. America Online, Juno and NetZero. Many telephone providers (Telstra, Optus) and cable companies sell Internet access, as do computer companies such as Microsoft.
Internet connection Methods
· Dial-up: used where broadband is not available
· ISDN: more expensive than broadband connections
· DSL: Broadband access via telephone companies.
· Cable Modem: Access over your cable TV coaxial cable. Can have degraded performance if
· Satellite: Access where cable and DSL are not available.
· Wireless: Very convenient, and WiMax will increase the use of broadband wireless.
· Fiber to the Home (FTTH): Expensive and usually only places in new housing developments.
2. Describe the parts of an Internet address.
Most computers also have names, which are easier for people to remember than IP addresses. These are called the domain name systems (DNS). They consist of multiple parts, separated by dots, which are read from right to left. E.g. the domain name software.ibm.com. The right part of an internet name is its top-level domain (TLD). The letters “com” in software.ibm.com indicates that this is a commercial site. Popular TLDs are:
com commercial sites
edu educational site
mil military government sites
gov civilian government sites
org organisations
“ibm” is the name of the company (IBM) and “software” is the name of the particular machine (computer) within the company to which the message is being sent.
Section TG 5.2 – The World Wide Web
1. What are the roles of browsers?
Users access the web primarily trough software applications called browsers. Browsers provide a graphical font end that enables users to point-and-click their way across the web, a process called surfing. Web browsers became a means of universal access because they deliver the same interface on any operating system under which they run. Leading browsers include Internet Explorer from Microsoft and Safari from Apple.
2. Describe the difference between the Internet and the World Wide Web?
World Wide Web (WWW): is a system of universally accepted standards for storing, retrieving and formatting and displaying information via client/server architecture; uses the transport functions of the internet. The web handles all types of digital information including text, sound and graphics.
Internet: is a global WAN that connects computer networks all over the world. The internet enables people to access data in other organisations and to communicate, collaborate and exchange information around the world, quickly and inexpensively.
Technology Guide 4: Telecommunications & Networks
1. Compare and contrast the three main wired communications channels?
Twisted-pair wire
· Inexpensive
· Widely Available
· Easy to work with
· Unobtrusive
Disadvantages
· Slow (low bandwidth)
· Subject to Interference
· Easily Tapped (low security)
Coaxial Cable
Advantages
· Higher bandwidth than twisted-pair
· Less susceptible to electromagnetic interference
Disadvantages
· Relatively expensive and inflexible
· Easily tapped (low-to-medium security)
· Somewhat difficult to work with
Fiber-optic Cable
Advantages
· Very high bandwidth
· Relatively inexpensive
· Difficult to tap (good security)
Disadvantages
· Difficult to work with (difficult to splice)
2. Describe the various telecommunications technologies that enable users to send high-volume data over any type of network.
Integrated Services Digital Network (ISDN): is and older international telephone standard of network access that uses existing telephone lines and allows users to transfer voice, video, image, and dada simultaneously.
Digital Subscriber Line (DSLs): provide high0-peed, digital data transmission from homes and businesses over existing telephone lines. Because the existing lines are analog and the transmission is digital, you need DSL modems.
Asynchronous Transfer Mode (ATM): ATM networks permit almost unlimited bandwidth on demand. ATM offers several advantages: it makes possible large increases in bandwidth; and it provides support for data, video and voice transmissions on a single communications line. ATM currently requires fiber-optic cable, but it can transmit up to 2.5 gigabits per second. On the downside, ATN is more expensive than ISDN and DSL.
T-Carrier System: is a digital transmission system that defines circuits that operate at different rates, all of which are multiples of the basic 64Kbps used to transport a single voice call. These circuits include T1 (1.544Mpbs, equivalent to 24 channels); T2 (6.312 Mbps, equivalent to 96 channels); T3 (44.736 Mbps, equivalent to 672 channels); ad T4 (274.176 Mbps, equivalent to 4032 channels),
TG 4.2 – Types of Networks
· A company network connects computers via communications media so that data can be transmitted along them.
· Firstly, Network computer systems enable organisations to be more flexible so tah ttheycan adapt to rapidly changing business comditions
· Secondly, Networks enable companies to share hardware, computer applications, and data across across the organisation and among organisations.
· Thirdly, networks make it possible for geographically dispersed employees and workgroups to share documents, idfeas, and creative insights. This sharing encourages teanwork, innovation, and more efficient and effective interactions.
2. What is the difference between LANs and WANs?
Local Area Network (LANs): connects two or more devices in a limited geographical region, usually within the same building, so that every device on the network can communicate with every other device.
Wide Area Networks (WANs): are networks that cover large geographic areas and typically connect multiple LANs. WANs generally are provided by common carriers such as telephone companies a d the international networks of global communications services providers. WANs have large capacity, and they typically combine multiple channels (e.g. Fiber-optic cables, microwave, and satellite). The internet is a n example of a WAN.
TG 4.3 – Network Fundamentals
1. What is a network protocol?
Network Protocol: computing devices that are connected to the network access and share the network to transmit ad receive data. These components are often referred to as “nodes” of the network. They work together by adhering to a common set of rules that enable them to communicate with one another. This set of rules and procedures that govern transmission across a network is a protocol.
Transmission Control Protocol/Internet Protocol (TCP/IP): is the protocol of the internet. A file transfer protocol that can send large files of information across sometimes unreliable networks with the assurance that the data will arrive uncorrupted.
Sunday, August 24, 2008
Chapter 3: Ethics and Security
1. Provide an IT example that relates to the ethical issues for the ideas of privacy, accuracy, property, and accessibility.
Privacy Issues: involves collectin, storing and disseminating information about individuals. E.g Electronic surveillance.
Accuracy Issues: involves the authenticity, fidelity, and accuracy of information that is collected and processed.
Property Issues: involvet he ownership and value of infomration.
Accessibility Issues: who should have access to the information and whether they should have to pay for the access.
· Unintentional Acts: those with no malicious intent, are of three types: human errors (most serious), deviations in the quality of service by service providers, and environmental hazards. E.g. Higher-level employees have access to corporate data, HR have access to sensitive personal information about employees.
· Natural Disasters: Floods, earthquakes, hurricanes, lightening and fire can cause loss of systems and data.
· Technical Failure: include problems with hardware and software. E.g. crash of a hard disk drive. Software errors are bugs – in computer programs.
· Management Failures: a lack of funding for information and security efforts and lack of interest in those efforts. Will cause the information security of the organisation to suffer.
· Deliberate Acts: trespass, software attacks, theft of equipment or information, sabotage or vandalism, cyber terrorism.
3. Describe/discuss three types of software attack and a problem that may result from them.
· Virus: segment of computer code that performs malicious actions by attaching to another computer program.
· Worm: segment of computer a=code that performs malicious actions that will replicate, or spread by itself (without requiring another computer program).
·Password/ Dictionary Attack: attacks that try combinations of letters and numbers that are most likely to succeed, such as all words from a dictionary.
· Physical Controls: prevent unauthorized individuals from gaining access to a company’s facilities. E.g. walls, fencing, locks, badges, guards and alarm systems.
· Access Controls: restrict unauthorized individuals from using information resources. These controls involve two major functions: authentication (determines the identity of the person requiring access) and authorization (which actions, rights or privileges the person has, based on verified identity). Organisation use many methods to identify authorized personnel: something the user is, something the user has, something the user does, and something the user knows.
· Communication controls: secure the movement of data across networks. Communication controls consist of firewalls (prevents specific info from moving between un-trusted networks), intrusion-detection systems (detect all types of malicious network traffic and computer usage that cannot be detected by firewall), encryption (converting a original message into a form that cannot be read by anyone except the intended receiver), and virtual private networking (VPN – a private network that uses the internet (public network) to connect users).
· Application Controls: security counter-measures that protect specific applications. Categories: input (edit input data for errors before it I processed), processing (match employee time cards with a master payroll file and report missing or duplicate time cards. Also balance the total number of transactions processed with the total number of transactions input or output) and output controls (documentation specifying that authorized recipients have received their reports, paychecks or other critical documents).
5. What is information system auditing?
An examination of information systems, their inputs, outputs and processing. Installing controls is necessary but not sufficient to provide adequate security.
· Authentication is a process that determines the identity of the person requiring access.
· Authorization is a process that determines which actions, rights or privileges the person has, based on verified identity.
They are important because they are a form of security to protect the organisation.
Sunday, August 17, 2008
Technology Guide 2: Comupter Software
1. What are main differences/distinction between system software and application software?
Systems software: is a set of instructions that serves primarily as a intermediary between computer hardware and application programs. Systems software provides important sef regulatory functions for computers, such as loading itself when the computer is first turned on and providing commonly used sets of instructions for all applications. Systems programming refers to both the creation and maintenance of systems software.
Application software: is a set of computer instructions that provide more specific functionality to a user. That functionality may be broad, such as general word processing, or narrow, such as an organisation’s payroll program. Essentially, an application program applies a computer to a certain need. Application programming refers to both the creation and modification and improvement of application software. Application software may be propriety or off-the-shelf.
2. What are the two main types of system software?
System Control Programs: control use of the hardware, software and data resources if a computer system. The main system control program is a operating system (OS). The OS supervises the overall operation of the computer. THE OS manages the program/s (also called jobs or tasks) running on the processor at a given time. OS systems provide various types of program management, such as multitasking, multithreading, and multiprocessing.
System Support Programs: support the operations, management, and users of a computer system by providing a variety of support services. E.g. system utility programs, performance monitors and security monitors.
3. What is the difference between proprietary and open source software? What considerations should be made when a business selects either software?
Propriety application software addresses a company’s specific or unique business need. This type of software may be developed in-house by the organisation’s information systems personnel, or it may be commissioned from a software vendor.
Open source software is software whose source code is available at no cost to developers or users.
4. What are some of the legal issues involved in acquiring and using software in most businesses/organizations?
-Software licensing is an issue for organisations. Copying software is illegal. As the number of desktop computers continues to increase and businesses continue to decentralise, it becomes more and more difficult for IS managers to supervise their software assets.
5. What is meant by SaaS? Name some examples of this software.
Software-as-a-Service (SaaS): is a method of delivering software in which a vendor hosts the applications. Customers access these applications over a network, typically the internet. Customers don’t own the software but pay for using it. E.g. Google Apps Premier Edition, which icludes Desktop, Docs and Speraadsheets, Base and Calander, is competing with Microsft Office in office productivity applications.
Thursday, August 14, 2008
Technology Guide 1: Computer Hardware
1. What is computer hardware and what are the major hardware components?
· A set of devices (for example, processor, monitor, keyboard, printer) that together accept data and information, process them, and display them.
· It can be described as the physical equipment used for the input, processing, output and storage activities of a computer system. E.g. mouse, monitor, printer, PC’s servers.
2. What is Moore's Law/what does it mean in relation to computers?
Innovations in chip designs are coming at a faster and faster rate as described by Moore’s Law. Moore predicted that microprocessor complexity would double approximately every two years.
Moore’s Law is a result of:
· Increasing miniaturization of transistors
· Making the physical layout of the c hip’s components as compact and efficient as possible
· Using materials for the chip that improve conductivity (flow) of electricity
· Targeting the amount of basic instructions programmed into the chip.
· From a business perspective this means that over time – price comes down but PC capability and speed goes up.
3. In basic terms, describe how a microprocessor functions.
The CPU performs the actual computation or “number crunching” inside any computer. The CPU is a microprocessor (commonly referred to as chips) is made up of millions of microscopic transistors embedded in a circuit on a silicon wafer chip.
Microprocessor has different parts which perform different functions:
· The control unit sequentially accesses program instructions, decodes them, and controls the flow of data to and from the ALU, registers the caches, primary storage, secondary storage, and various output devices.
· The Arithmetic-logic unit (ALU) performs the mathematic calculations and makes logical comparisons.
· The registers are high-speed storage areas that store very small amounts of data and instructions for short periods of time.
How the CPU works:
In the CPU, inputs enter and are stored until needed. When needed they re retrieved and processed, and the output is stored and then delivered somewhere.
· The inputs consist of data and brief instructions about what to do with the data. These instructions come from software in other parts of the computer (keyboard). The inputs are stored in registers until they are sent to the next step in the processing.
· The control units directs the flow of data and instructions within the chip
· The ALU receives the data and instructions from the registers and makes the desired computation. These data and instructions have been translated into binary form, which is only 0’s and 1’s. The CPU can process the binary data.
· The data in their original form and the instructions are sent back to storage registers and they are sent back to a storage place outside the chip such as the computer’s hard drive. Meanwhile, the transformed data go to another register and then on to other parts of the computer (to the monitor for display or to storage).
What factors determine the speed of the microprocessor?
4. What factors determine the speed of the microprocessor?
5. What are the four main types of primary storage?
Primary storage, or main memory, stores three types of information for brief periods of time;
1. Data processed by the CPU,
2. Instructions for the CPU as to how to process the data and
3. Operating system programs that manage various aspects of the computers operation.
Registers: are part of the CPU. They have the least capacity, storing extremely limited amounts of instructions and data only immediately before and after processing.
Random Access Memory (RAM): is the part of primary storage that holds a software program and small amounts of data for processing.
Cache Memory: is a type of high-speed memory that enables the computer to temporarily store blocks of data that are used more often and that a processor can access more rapidly than main memory (RAM).
Read-only memory: most of us have lost data due to a computer crash or power failure. What is lost is whatever is in RAM, cache or the registers at the time, because these types of memory are volatile. Therefore, we need greater security when we are storing some types of critical data or instructions. ROM is type of chip and is the place where certain critical instructions are safeguarded. ROM is nonvolatile, so it retains these instructions when the power to the computer is turned off.
6.What are the main types of secondary storage?
Secondary storage is designed to store very large amounts of data for extenede periods of time.
· Magnetic media: magnetic tape is kept on a large open reel or in a smaller cartridge or cassette. Magnetic disks (hard drives) are a form of secondary storage on magnetized disk that is divided into tracks and sectors that provide addresses for various pieces of data. More rapid access to data than magnetic tape.
· Optical Storage Devices: do not store data via magnetism. Rather, a laser reads the surface of a reflective plastic platter. Slower than magnetic hard drives. E.g. CD-ROM (compact disk read-only memory), DVD (digital video disk).
· Flash memory devices: is non volatile computer memory that can be electronically erased and reprogrammed. The technology can be built into a system or installed on a personal computer card. It is a electronic storage device that contain no moving parts and use 30 times less battery power than hard drives. Flash devices are also smaller and more durable than hard drives.
7. How does primary storage differ from secondary storage in terms of speed cost and capacity?
Secondary storage
· is cheaper than primary storage
· It can take place on a variety of media, each with its own technology.
· The overall trends in secondary storage are toward more direct access methods, higher capacity with lower costs, and increased portability
Primary Storage:
· Cost: more expensive
· Size: smaller
· Speed faster
8.What are enterprise storage systems?
· Is an independent, external system that includes two or more storage devices.
· Provide large amounts of storage, high performance data transfer, a high degree of availability, protection against loss and sophisticated management tools.
- Human Data Entry- devuces such as keyboard, mouse, touch screen and voice recognition.
10. What is one new technology that will change how we do things?
'Presence' technology allows you to be found on the 'network' - computer, mobile phone, etc. In its current form, presence technology refers simply to instant messaging applications. In 5 years mobile devices will have the ability to continually learn about, and adapt to, your preferences and needs as you commute, work, and travel. For example, your mobile phone will use new IM technology that will ping you about special sales at your favorite department store as you're driving by the store or strolling through the mall. In a work setting, if you enter a meeting room with several people, the mobile phone will automatically divert to voice mail.
Wednesday, August 6, 2008
Chapter 2: Information Systems
A computer-based information systems (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks. Although not all information systems are computerized, today most are.
An Application is a computer program designed to support a specific task or business process. Each functional area or department within a business organization uses dozens of application programs. E.g. the HR department sometimes uses one application for screening job applicants and another for monitoring employee turnover.
2. What are strategic information systems?
A Strategic Information System (SIS) provides a competitive advantage by helping an organisation implement its strategic goals and increase its performance and productivity. Any information system that helps an organisation gain a competitive advantage, or reduce
Strategic information system is different from other systems as: -
- they change the way the firm competes.
- they have an external (outward looking) focus.
- they are associated with higher project risk.
- they are innovative (and not easily copied).
3. According to Porter, what are the five forces that could endanger/enhance a firm’s position in its industry or marketplaces?
- The threat of entry of new competitor’s. Threat is high when easy to enter your market and low when significant barriers exist.
- The bargaining power of suppliers. Supplier power is high when buyers have few choices of whom to buy and low when buyers have many choices. Therefore, organizations would rather have more potential suppliers to be able to better negotiate price, quality, and delivery terms.
- The bargaining power of customers (buyers). Buyer power is high when buyers have many choices from whom to buy and low when few choices.
- The threat of substitute products or services. If there are many substitutes, then the threat of substitutes is high. Today technologies create substitute products very rapidly.
- The rivalry among existing firms in the industry. Threat from rivalry high when intense competition among firms in an industry.
4. In relation to Porter's value chain model, what is meant by primary activities and support activities, and how does IT support these activities?
Primary activities are those business activities that relate to the production and and distribution of the firm’s products and services, thus creating value for which customers are willing to pay. Involve purchasing materials, processing materials into products, and delivering products to customers.
There are 5 primary activities:
1. Inbound logistics (inputs)
2. Operations (manufacturing and testing)
3. Outbound logistics (storage and distribution)
4. Marketing and sales
5. Services
Support activities don’t add value directly to the firms products or services. Rather, they contribute to the firm’s competitive advantage by supporting the primary activities.
Support activities consist of:
1. The firms infrastructure (accounting, finance, management)
2. Human resources management
3. product and technology development (R&D)
4. Procurement
5. Discuss the logic of building information systems in accordance with the organizational hierarchical structure.
The Mckinsey Strategy
- Strategy - what are we going to do?
- Structure - who is going to do it?
- Systems - whats systems will be used?
- Skills - what core knowledge is required?
- Staff - what people will we hire, what money will be spent on training?
6. How has the Internet affected each of the five forces in Porter’s competitive forces model.
- The threat of new competitors. Reduce traditional barriers to entry, such as the need for sales force or a physical storefront to sell goods and services. Today, competitors need only to set up a Web site.
- Bargaining power of suppliers. Buyers can find alternative suppliers and compare prices more easily, reducing the suppliers bargaining power. Companies also use the internet to integrate their supply chains, and prosper by locking in customers.
- The threat of substitute products or services. Any industry in which digitalized information can replace material goods (books, music, software) must view the internet as a threat because the internet can convey this information efficiently at a low cost.
- The rivalry among existing firms in the industry. Competition is affected by the low variable cost of digital products. The costs in physical (CD, DVD) distribution channel are much higher than the costs involved in delivering the songs over the internet in digital form.
The internet has changed the nature of competition. Porter concludes that the overall impact of the internet is to increase competition, which has a negative impact on profitability.
Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons
Chapter 1: The Modern Organisation
- 24/7 open anytime, anywhere.
2. What is meant by a web-based, global platform, what does it provide, and how has it affected business?
- Spans the world and is best represented by the internet and the functionality of the World Wide Web. - The platform enables individuals to connect, compute, communicate, collaborate, and compete everywhere and anywhere, anytime and all the time; to access limitless amounts of information, services and entertainment; to exchange knowledge; and to produce and sell goods and services
- Operates without regard to geography, time distance, and even language barriers.
This platform enables globalization (the integration and interdependence of economic, social, cultural, and ecological facets of life, enables by rapid advances in information technology).
3. What are the main pressures that characterize the modern global business environment?
Business pressures. The business environment is the combination of social, legal, economic, physical, and political factors that affect business activities.
3 types of business pressures:
Market Pressures. Generated by the global economy and strong competition, the changing nature of the workforce, and powerful customers.
- global economy and strong competition
- the changing nature of the workforce
- powerful customers
Technology pressures. Two major technology-related pressures are technological innovation and information overload.
- technological innovation and obsolescence
- information overload
Societal/Political/Legal Pressures. Social responsibility, government regulation,/deregulation, spending for social programs, spending to protect against terrorism, and ethics.
- social responsibility
- compliance with government regulations and deregulation
4. What are the common IT oriented organizational responses to these pressures?
- Strategic Systems. Provide organizations with advantages that enable them to increase their market share and/or profits, to better negotiate with suppliers, or to prevent competitors from entering their markets.
- Customer focus. Organisational attempts to provide superb customer service can make the difference between attracting and keeping customers on the one hand and losing them to competitors on the other hand. E.g. Amazon.
- Make-to-order and mass Customisation. Make-to-Order is a strategy of produving customized products and services. The business problem is how to manufacture customized goods efficiently and at a reasonably low cost. In mass production, a company produces a large quantity of identical items. In mass customization, it also produces a large quantity of items, but it customuizes themt o fit the desires of each customer.
- E-Business and E-Commerce. Doing business electronically is essential strategy for companies competing in today’s business environment.
5. How are IT architecture and IT infrastructure are interrelated.
IT Architecture is a high level map or plan of the information assets in an organization. It is both a guide for current operations and a blueprint for future directions.
IT Infrastructure consists of the physical facilities, IT components, IT service, and IT personnel that support the entire organization.
The IT architecture integrates the entire organization’s business needs for information, the IT infrastructure, and all applications.
They provide the basis for all information systems in the organization.
6. Is the Internet an infrastructure, an architecture, or an application program? or something else. Why?
- The Internet is an infrastructure because it provides connectivity between resources or services and the users of such facilities.
- It is architecture becasue it is a general plan of how IT will be used within the organisation.
- It is an application program becasue it has computer programs that support a specific task e.g MYOB, MS Office.
Rainer, R. & Turban, E. (2009). Introduction to Information Systems: Supporting and Transforming Business. 2 Ed. John Wiley & Sons