Week 2

Week 2


1. What is the difference between an 'application' and a computer-based information systems?
Applications are one or more pieces of computer-based information software morphed together.

Computer based information system is a broader term relating to software hardware which performs intended tasks

2. What are strategic information systems?
Any system that helps an organisation gain a competitive advantage or diminishes a competitive disadvantage. Strategic information systems attempt to provide this advantage by guiding the organisation to implementing its strategic goals and therefore increase its performance and productivity.

3. According to Porter, what are the five forces that could endanger a firm’s position in its industry or marketplaces?
Michael porters competitive forces model includes:
Threat of new competitors
Bargaining power of customers and suppliers
Threat of substituted services and products
Rivalry of existing firms in industry

Shown in diagram below

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?

According to Porter’s value chain model, the activities conducted in any organisation can be divided into two categories primary and support activities.

Primary activities are those business activities that relate to the production and distribution of the firms products and services, thus creating value for which customers are willing to pay. Primary activities involve purchasing materials, processing materials into products, and delivering products to customers.

Unlike primary activities, support activities contribute to the firm’s competitive advantage by supporting the primary activities.
Support activities consist of: The firm’s infrastructure, Human resources management and research and development

5. Discuss the logic of building information systems in accordance with the organizational hierarchical structure.
Once the company forms its hierarchical structure it then forms systems for each of these structures. They are then interconnected. Specialisation and customisation then takes place in each division, the business focuses on what types of software and hardware are necessary for each division for each of there specialised tasks. For example; graphic editing software and hardware for marketing division of a business

6. How has the Internet affected each of the five forces in Porter’s competitive forces model.
The larger market has meant:
Threat of new competitors much higher because worldwide businesses are included through e-business.
Bargaining power of suppliers has diminished due to the variety of suppliers available
Bargaining power of customers has now increased due to more competitors in global market
Substitute products is really high due to ease to replicate products