EVALUATING INFORMATION SYSTEM CONCEPTS
Q. How can information technology support a company’s business processes and decision making, and give it a competitive advantage?
A. Information technology has wide range of effect on the performance of a company. The procedures applied in the production of a product are influenced by information technology. The procedure applied in the production and alteration of the product is affected by information technology, it consequently adds value to a product (Porter & Miller, 1985). The value chain, an important factor in information technology, tends to break down the processes of a company’s business into subdivisions. These activities are termed to as value activities. The value that is attributed to a company is achieved by the quantity that buyers are willing to purchase for a good or a service. The higher the value achieved in comparison to the amount used to undertake the value activities. For one to acquire a competitive advantage over the competitors he or she has to perform the value activities at lower price than them, another way to increase competitively is to perform them in a manner that will lead to a premium price or differentiation or even both.
The activities performed by a company are classified into several groups. There are primary activities which are involved in building of the good or product, the marketing process and the transit to the customer as well as after sale services. There are also support activities which their main task is the provision of the necessary variables and structures for the primary activities to be performed better. These two activities cannot be undertaken without the assistance of the human effort, input requirements as well as the technology that supports it. The chain is hence a compilation of several factors (hainu, 2010). These activities will perform the business process depending on their type. A case in instance is services such as installation repair and inventory management.
An example of value chain management is a collaborated work in systems that depend on the internet, which are able to increase communication and cohesion which is necessary for the advancement of the managed coordination and support duties e.g. in career development the supporting activities are used to issue training programs for the support staff for their self advancement, engineering services that are assisted using computers and external networks allow an enterprise as well as its partners in business activities to jointly design goods and activities and there are also external networks that are able to improve the processes of an enterprise through the acquisition of an e-commerce web site for the suppliers.
A company can similarly apply information technology to minimize the cost of doing the business processes as mentioned earlier on. This will allow for the acquisition of a competitive advantage in comparison to its customers. Information technology can similarly be applied in the lowering of the costs used by the clients and suppliers, the products supplied to your company undergo a series of charges before it reaches the company where if they are reduced it will increase the opportunity of doing business. The strategy that one may apply is called the cost leadership strategy whereby one can lower the cost of doing business with the suppliers, the customers and increasing the cost for the competitors.
In differentiation strategy one can find alternate ways to differentiate the product and service from the competing enterprises as well as minimizing the differentiation benefits of the competitors. There is also the innovation strategy where one can get new and better ways of doing business which may include; the advancement of unique goods and services, undertaking businesses in unique markets, creating business alliances, the establishment of other ways of doing business, establishing methods of distributing the goods produced.
A company can also be able to create a competitive advantage in its processes and decisions made with the application of a knowledge-creating company otherwise known as learning organizations. This when expounded further is the creation of knowledge and distributing it throughout the company and thereafter creating a new form of knowledge for the goods and services. The forms of technology-based knowledge that are applied are; explicit knowledge where data, documents among other things are kept in the computer. There is also the tacit knowledge which is mostly tasked with the “how-tos” more so for the staff. A better knowledge based management system is supposed to ways and mean that the employees are able to share their ideas as well as enhance the knowledge acquired.
Most companies are putting into place the knowledge management systems measures to enable them form, arrange and their application. This involves several things such as process, criteria as well as fixes. Examples of information technology used are video conferencing, data mining, groupware as well internal networks and external networks.
Knowledge Management System
Q. Give examples to illustrate your answer. How does the use of the Internet, intranets and extranets by companies today support their business processes?
A. Internet is forum that is accessible by everyone provided they have the necessary facilities to do so. They are mostly used for marketing, in commercial businesses, the issuance of a technical background to businesses and data needed to be in contact with a person. It is a larger network that has enhanced the computing and telecommunication services, one is able to acquire relevant information and be entertained from the internet. Its main aim is to enable an efficient connection with the business pros and clients, similarly offer an efficient connection to the internet and extranet. It does not have a centrally organized centre.
On the other hand, intranet is similar to the internet though the services accrued to it are not accessible by everyone only a selected few mat be within a company. This aims to block personal information from the public, such as the memos, handbooks and databases belonging to an organization. One is able to access these documents with the help of a password (Virginia & Brigid, 1995). The intranet uses several technologies such as the web browsers, servers, TCP/IP protocol and databases. It is kept in a safe manner with the use of several security measures such as, passwords, encrypting data and firewalls, therefore only certain users are able to access the information. Important business applications are advanced as well to uphold various business operations and support decision making in an organization. The intranet is able to standardize the network protocol, increase productivity among other activities.
The other one is the extranet which is accessible by certain individuals outside the company, hence the word external. It may be summed up as a connection of several intranets of several companies. It aims to connect suppliers, customers and businesses. The connection established allows the access of an enterprise’s database as well as its legacy systems. Collaboration between a business and its customers is achieved, development of new applications and interaction. It makes it easier for the clients to acquire relevant information from the business in an efficient manner.
The internet is helpful in solving issues related to the customer as well as creating closer working ties with them, this achieved by creating an effective sales department. The internet is involved in making right the sales process and tries to do away with order-processing information for the clients and the retailers. The internet is therefore more so tasked with upholding efforts put forward by the sales team. The application of customer relationship management systems (CRM) the sales department is able to handle issues related to the customer as well as do away with a competitors challenge. There are several organizations that have made it possible to join the internet and the business strategy in relation to selling. The sales persons are able to transact their online activities with the compensation given to them by the businesses. The marketing duties of a business ate undertaken with the help of the internet which is used as communication equipment.
The internet has also provided services for hosting; the internet is also able to minimize the transaction costs, combine the activities of the supply chain, access relevant information. The provision of information capability of the internet mentioned is a necessary strategic importance for the business sector; it similarly applies to the intranet and the extranet. The information acquired is received and broken down from the server in respect to various aspects presented to it. A case in instance is that one is able to fill an interest profile or documents which enable one to gain access to certain levels of the web site.
The internet, intranet and extranet makes it possible for people to information that is shared among other resources available e.g. a project document on the web site is made possible to be accessed by others using the web browser. The businesses processes are consequently are cohesively done in strong teams with business partners hence the addition of value to the enterprise.
Electronic commerce is a technological application that comes to play in the business. The internet, intranet as well as extranet provide connection to enterprises which are able to connect to their clients and suppliers. This process of collaboration leads to what is known as an electronic market; new markets are hence established with the composition of new goods and services.
The networks that help to form the organization’s business processes are joined with other externally networked activities. That is an organization’s websites are connected to extranets for the purpose of choosing databases that are working on the intranet servers. Information that is acquired is updated, detailed and can be used in electronic commerce procedures. Intranets also support cross functional processes in a business enterprise.
The main importance of the internet is to enable the acquisition of the clients trust and loyalty an in addition to predicting their future needs. The continued communication between the client and the business; using the internet, intranet and extranet, keeps the business alive. There is hence the efficient processing of relevant data for the benefit of the customer, business partners, suppliers and more so the business itself.
The intranet
Q. How could a business leverage its investment in information technology to build strategic IT capabilities that serve as a barrier to entry by entrants into its markets?
A. For a company to leverage its products and services it would be necessary for the company to be in possession of a strong IT infrastructure. Information technology should be placed as a component of the organization. A case in instance is the airline operations which are now expounded to involve communication, which is ICT (Information and Communication Technology). In this industry, the Global Distribution Systems (GDSs) which is an electronic technology that is used to provide connectivity to several suppliers in the industry; tour operators, car hiring services among others and several retailers.
The airline enterprise went further ahead to provide a stronger position for itself in the market industry by investing in the technology that was applied in the operation of the GDS which was an oligopoly market structure. This went ahead to effectively put in place barriers to other new entrants like the Amadeus mainframe centre whose database was quite huge. This effectively translated to a marketing and distribution systems that laid out satisfactory provisions through the advancement of competition.
The threat of a new entrant is in relation to the simplicity around which a new product from a new enterprise can join in a market. New entrants into a market provide strong competition to the players already in place, hence taking most of the clients (Hart & Speh, 2009). To hinder this new force from acquiring a place in the market there are several factors that are put in place to prevent this from happening, they may include capital for the business considered, the relevant knowledge or skill needed to undertake the business effectively.
As mentioned above, IT can provide this barrier by carefully investing in this business like investing in the EDI, otherwise, new entrants into a market with an already advanced technology create an opportunity to other entrants hence the risk of competing with the players in the market that is a banking service that is offered on online basis needs no building to be erected as earlier required, they only need the online services.
The Porters Model is a model that is used to enable an organization to notice the threats surrounding their business that offer a potential competition to a company’s statue in the market (Torgeir, Tore, & Nils, 2010). The model helps firms to develop new IT as well as electronic commerce to sustain and prevention any invading of their position.
The porter’s Model
An investment made in information technology to a business helps it to retain its customers as well as its suppliers, while on the other hand it hinders other competitors from accessing the markets potential. The strong bond formed by the suppliers and clients hinders them from leaving it for another competing company or making it offer less profitable business operation. In the past times, information technology was applied to enable in a business organization in the assistance of offering efficient services and products to its customers and suppliers. In the present times, information technology is being applied for a more innovative and efficient application to an enterprise.
Wal-Mart is a good example of an organization that has applied information technology to elevate its service provision. In 1983, it was able to invest in satellite network that provided connection to the selling terminals belonging to the stores. As years went by, Wal-Mart was able to advance and become a among the leading communication networks that provided connection to its several stores all over. The network terminals also incorporated its headquarters, its supplier and customers. The system innovation included an inventory control, which was a just-in-time processing system. The system works in a way that enables the supplier to be in possession of the knowledge of who has bought a certain product, so that in the next supply he or she would provide a replacement for it. This is accomplishes by once a product has been bought, a message is sent to the supplier for the necessary knowledge. This technology that has been provided enables the suppliers to act fast on the inventory requirement while similarly minimizing the inventory needed.
Additionally to this investment in IT, it was able to offer a cheap operating cost as result of the systems used. The quality of products used and services offered were quite up to standard. This advancement led it to be well differentiated from its competitors. Most companies have similarly started applying this form of technology and as in Wal-Mart’s case; it was able to lead to its business advancing in the market. The internet comes to play a major role in this to provide a connection to all the businesses available.
Barriers provided through this form of investment in information technology are necessary for an organization that needs to preserve its business position as well as advancing it to better heights. While it becomes necessary to use this method to keep the business as a great competitor in the market it at times becomes necessary to advance time and again the technology used. This is so because technology is fast advancing and necessary researches and applications are necessary to provide the necessary cushion against other competitors. The business will always be ahead of the game as well as being able to maintain its customers and suppliers. The Porter’s model mentioned above is a good example of how to provide a strategic advantage to the business. Any decisions that involve in information technology should be done by a similarly competitive leadership.
Q. What are the computer hardware and software developments that you expect to happen in the next 10 years? How will these affect the business use of computers?
A. with the advancement of technology will become apparent for one to apply new measure to be able to keep up with the technological changes available. The computer systems will go on moving to new heights for the sake of competition (Avdesh & Anurag, 2003). Some software and hardware will be exhausted and run out of use hence the need to focus to new levels in the future.
A business’s operations should be protected from external intrusion through the provision of a secure system for its components. The systems applied to an organization possess software and hardware that follow a specific set of instructions called programs. A device used if it strictly followed the laid down instructions it would not be attacked by intruders easily (Haughey, 2009). The attacks imposed on a device are more or less due to software that does not follow instruction carefully. With advancement in the hardware-based mechanisms the network within which the business operates will receive a secure protection from intruders or otherwise attacks.
The basis for this technology advancement is that, with a trusted code, it generates a result. The code incorporates verification at the input for the issuance of the result. The distribution systems will be greatly enhanced through this method, where the protocols of the network are kept safe (Boehm, 2005). This can also play a role in the future safe keeping of the wireless networks too. The hardware must however support the implementation of the TPMs. In such situations is where the software part of it comes to play, the SWATT and the Pioneer systems are cases in instance.
There is the incorporation of the Integrated Service Digital Network (ISDN) which is a standard that allows communication at sufficiently higher speeds and capacity. Today’s computers will be able to operate at higher speeds and create the capability of carrying higher data. New forms of services will be brought to the fore front of the market industry.
With the present disintegration of business components, businesses will in the future be forced to combine their skills and knowledge to enable them to provide the necessary level standard. A case in instance is the outsourcing of the necessary knowledge or hardware and software. A case in instance is the specialization of a company in database software or distributed software applications and another is good at the networking of the necessary software and hardware for the provision of a unified building block for both businesses.
The future also expects a change in the economies of scale. The quantity of supply attributed to the software will continue to advance as the software standards produce them this similarly for the hardware market. The revenue for the manufactures will set to improve with time. The software industry will hence only be limited to a selected few. The manufacturers will now be involved in joining the specific components created by the other companies. Computers will play a major role in this, the computers will be used to run these programs and execute the intended operation efficiently. The use of the computers in the business market will set to increase.
The management offered to computer applications will have to change. The present computers take up a lot of time and may at times not allow bigger documents to be allowed. This calls for a new change in the hardware and consequently the services provided. The future promises to bring into play a new generation of hardware, and software that will improve this situation (Khana, 2011). The development of a program office will coordinate the various sections of an organization. This will enables its application in to an environment for the provision of an efficient and well organized environment.
The future also promises a chip based computers that will allow the huge forms of data to be used. The height of performance of the organization will be advanced and allow connectivity to far and wide organizations. The AXP technology will process this large data and store them in digital format.
The use of the Order Information Clearinghouse (OIC) which is a technological aligned service that applies software to build applications. The software that will be used will enable its application allowing the entry of an order information services and produces as a result a billing system that is electronic. The application to be used has however to be build from the start in incorporation of an ordered-entry application (Gavriel & Smith, 2001). The technology will allow fast evaluation of the proprietary that is aligned to the computer manufacturers. For this future to be realized there will however be a consideration placed on the ending of the definition, specification and the creation of the software standards. The proprietary standards will first come to consideration.
Q. What are the major trends in software development and what mistakes are currently being made by developers and why?
A. in the past, the development of software was attributed to only the coding part only or the programming, where an experienced developer would be put in place to develop software that performed a specific task depending on the need (Dipankar & Mario, 2011). This method of creating software was suitable for smaller programs that did specific and little tasks. With the increased advancement of the computer systems there had grown a need to similarly develop software that performed much more advanced tasks concurrently. This has led to the phasing out for smaller programs with the latest, fast and much more advanced software.
The environment with which it operated changed from simple batch to much more complex devices. The relevant activities that are related to the development process are; acquiring and analyzing the relevant requirements, there is development of the design, its consequent implementation which may be done through programming (S., 2011). Once it is formed it is followed by testing, its verification as well as the validation for its use. The sequential task then is its installation to various computer systems to be used for the task intended.
Software has continued to advance to a much better and more efficient force for the business industry. This can be attributed to the developers who continually continue to advance this form of technology for the benefit of others as well as themselves. The new trends that have come to play in the industry is the machine code programming where the language used by the machines like computers to interpret a program is translated to a human understandable form through the use of an assembly language program (Leebaert, 1996). Several programming languages have been advanced by developers to try and create software that fits the human needs. The programming language lately developed are, the C, C++ and the C#. The programs developed by these languages are required to control the hardware; the level of abstraction attributed to this program is minimized.
In the windows era, the programs that are developed are attributed to the operating system, with an abstraction occurring to the hardware. The programming that is developed is rich in programming that is related to API. The current trend requires no coding to b applied like the Agentis, Skyway Builder.
Another development in the software industry is the advancement of the internet. The use of the internet has increased over time, and we can predict that in the future its use would be easily accessible by everyone everywhere. There are devices that have the capability to access the internet more simply and easily; laptops and mobile phones (Mills, 2003). The number of broadband users is steadily increasing with time and the bandwidth as well as the storage capacity is now accessible by users at a cheaper price.
There is application of software-as-a-service in the latest world, business are busy investing in this area to advance their level of competiveness. Online business activities have lately picked up due to the easy access of the internet, its fast speed and the capacity available. The main force behind the use of the internet growth in several parts of the world is the wide spread use of social media like face book, tweeter among others (Ochronous, 2010). These social sites allow the sharing of opinions, ideas as well as videos.
There is also the development of the cloud computing which allows the sharing of several devices and information in the internet. Such devices that are shared are the database, the application server, the Personal computer among others. Cloud computing presents a new model of software distribution- “X”aaS
The software integration of software engineering has improved with time. This has led to the creation of an independent process. The systems were initially created to perform configuration on hardware devices for translation into physical systems like railways or defense systems. The new trend in software engineering is influenced by the mathematical approach applied in the software components. There is also the reductionist approach which developed the software programs. There is also the idea that there are people who do not possess the knowledge hence the task to produce new software was destined to be in place. The process was to be a hard one though it was aimed at reducing the cost of storing data and to increase the speed with it was operating at.
The software that is currently in the market is a component of free, locally operated, heterogeneous components that are relevant for the provision of high tech services like the open source products and the APIs. The business sector has been influenced with the change in internet and the ecommerce.
The mistakes though currently being advanced in the development of the software is that when it comes to application of the software it is relevant that is simple for the user, rarely is it considered. In the process of developing software, the definition of a need for software is not clearly put across by the business of party concerned. The thought of achieving a solution reaches one’s mind to fast ahead of the development process, this leads to a creation of software not up to standard required. The developed is not tested by the developer as it is argued that it takes up a lot of time, it therefore considered as not a requirement that requires any importance.
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