Chapter 2 - Information Systems: Concepts & Management

Q1. What is the difference between an 'application' and a computer-based information systems?

Application are computer programs that support a specific task, a business process or another application program e.g. support a specific task.

Computer-based Information are composed of hardware, software, database, networks - including communications devices, procedures and people.

Q2. What are strategic information systems?

Information systems collect, process, store, analyze, and disseminate information for a specific purpose. The breadth of these systems;

• Functional area IS ‐ support particular functional areas in an organization.
• ERP systems ‐ integrate the functional area IS via a common database.
• Transaction processing systems ‐ support the monitoring, collection, storage, and processing of data from basic business transactions.
• Inter‐organizational information systems ‐connect two or more organizations.

Q3. According to Porter, what are the five forces that could endanger a firm’s position in its industry or marketplaces?

According to Porter's value chain model the barriers to entry follow; Threats of New Entrants, Supplier Power (Bargaining Power of Supplies), Threats of Substitute Products or Services, Buyer Power (Bargaining Power of Buyers) and a Barrier to Entry.

Diagram

Q4. In relation to Porter's value chain model, what is meant by primary activities and support activities, and how does IT support these activities?

In terms of primary activities in relates to five broad groups; Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Customer Service. Support Activities aid these primary activities group, examples include Administration & Management, Legal/Finance, Human Resource Management and Product & Technology Development. In turn primary activities support and add value to a firm.

Diagram

Q5. Discuss the logic of building information systems in accordance with the organizational hierarchical structure.

Building Information systems in line with a corporations structure is critical in the success and development of companies IT procedures. A company such as St.George Bank builds and develops systems and information points across all levels of employment to enable the effective process of the company. Example includes Teller's operation for basic systems through to management use an overall sales and KPI system. The logic is needed to ensure corporations have effective and efficient procedures across the corporate ladder.

Q6. How has the Internet affected each of the five forces in Porter’s competitive forces model.

The internet affects the five forces according to Porter's competitive force mode. The internet generally increases the threat that new competitors will enter a market. Overall the internet adds to competitiveness i.e. competitors can see your information and data of your products and services. Also it adds to five forces an added rivalry between companies.