Week 2 Questions
Explain information technology’s role in business and describe how you measure success?
A business relies on information technologies to process and support the large amounts of information used within the organisation. It includes are the computer based tools associated with operating a business, and in the modern world it is vital that the business is up to speed and moving with the developments made in this area. Information technology can be categorised as either IT infrastructure, or IT architecture.
List and describe each of the forces in Porter’s Five Forces Model?
1. The threat of entry of new competitors- If the market is easy to enter then the threat of new competitors is high. These forces each business to improve their product and efficiency of business operations to compete.
2. The bargaining power of suppliers- When there are few suppliers buyers have less choice, this means that supplier bargaining is higher and the buyer has a weaker negotiation against the supplier.
3. The bargaining power of customers- When there are many products to choose from for customers have greater bargaining power, more choice allows for greater consumer power.
4. The threat of substitute products/ services- Substitute products can be dangerous for those businesses with an inferior good. Consumers can easily choose the alternate option in a market with many substitutes.
5. The rivalry among existing firms in industry- a competitive market is one where there are many firms competing offering a similar product.
Describe the relationship between business processes and value chains?
A value chain is used to show points where an organisation can use information technology to achieve competitor advantage. There is both primary activities that create value for which customers are willing to pay. Supporting activities are all other processes that support the distribution and production that the business conducts.
Compare Porter’s three generic strategies?
1. Cost leadership- The concept is to increase profit using the ‘cost’ variable. To gain market share a business may reduce the cost and be able to sell more. For a sustaining cost leadership strategy the quality should not be reduced.
2. Differentiation- This is when businesses make their product unique, or have some quality those other competitors does not.
3. Focus strategy- This is when the market is segmented and further narrowing of the segment becomes the focus of business strategy. This is usually done to achieve differentiation and cost leadership.
Week Three Questions
Define TPS & DSS, and explain how an organisation can use these systems to make decisions and gain competitive advantages.
TPS- Transaction Processing Systems; these include all transactions that are to do with the functioning of the business. When transaction processing systems are in order all other area of imformation technology can fall into place. A business can work more efficiently and be a more organised institution, which can help obtain a competitive advantage.
DSS- Decision Support Systems; This assists in the greater problems of a business. Most problems that are dealt with are known as unstructured decisions, that are more problematic.
Describe the three quantitative models typically used by decision support systems.
1. Sensitivity analysis - the study of the impact that changes in one (or more) parts of the model have on other parts of the model.
2. What-if analysis - checks the impact of a change in an assumption on the proposed solution.
3. Goal-seeking analysis - finds the inputs necessary to achieve a goal.
Describe a business processes and their importance to an organisation.
Business processes refer to the manner in which work is organised, coordinated and focussed to produce a valuable product or service. A business process is a standard set of activities that accomplish a specific task, such as processing a customer order or enrolling a student. This are all important to the general development and management of a business. To remain competitive these activities need to be done properly and efficiently.
Compare business process improvement and business process re-engineering.
Business Process Improvement requires taking a broad view of both information technology and business activity, and of the relationships between them. Business process re-engineering assumes there’s an issue with the current model of process improvement and attempts to restructure this area. It concerns itself with improving the experience for the company and often sets new standards for the industry.
Describe the importance of business process modelling (or mapping) and business process models.
Being able to visualise an organisation’s operation is often the beginning of identifying problems or new opportunities. Raw data and numbers are difficult to filter and interpret. Often a visualised concept of business activities allows for a greater assessment of re-engineering and problem solving.
The speed at which the web can function has grown and things can be done at cheaper costs. This attracts to all market players; consumers, suppliers, businesses and all other entrants.
Week Four Questions
Why has the web grown so dramatically?
In this day and age most people can afford and operate a computer, therefore there is more interest and requirement for online activities.
What is Web 2.0, how does it differ from 1.0?
Also known as Live Web, Web 2.0 allows for a collaborative platform were all people can share content online such as videos, photos and many other forms of media. In general web 1.0 is a simplier less complex version of the internet, were there is more reading, homepages and more company activity. Contrastingly, Web 2.0 is about writing, blog posts and community interaction.
How could a web 2.0 technology be used in business?
CEO’s using Blogs to enhance communication, build trust, supplement press releases and talk from the heart. A content rich blog can enhance the positive image of the company. The spread of ideas is easier between firms and withing businesses, communication options are easily accessible.What is eBusiness, how does it differ from eCommerce?
e-Business is the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners. Alternatively, e-Commerce is the buying and selling of goods and services over the Internet.
What is pure and partial eCommerce?
1. The product can be physical or digital.
2. The process can be physical or digital.
3. The delivery agent can be physical or digital.
List and describe the various eBusiness models?
Bricks and mortar: are purely physical organisations.
Clicks and mortar: are those that conduct some e-commerce activities.
List and describe the major B2B models?
Business to business is when both sellers and buyers are business organisations. Some of there models include;
· Sell-side marketplaces- This is when one business attempts to sell their product online to another business.
· Buy-side market places- This is when one business attempts to buy products from other businesses online.
· Electronic exchanges- This is when there are many buyers and sellers doing their transactions electronically.
Outline 2 opportunities and 2 challenges faced by companies doing business online?
Opportunities;
1. Broader market- online business activities allows businesses to expand there markets outside of Australia.
2. Faster activites- online transactions are done almost immediately at the click of a button saving time and money.
Challenges;
1. It’s easy to get lost in the technological advance advancements therefore greater education is needed among business staff.
2. Unethical behaviour- online business allows for great amount of fraud.
Week Five - Ethics and Security
Explain the ethical issues surrounding information technology.
There are many ethical issues surrounding information technology including issues with copyright, privacy issues, intellectual property theft, pirated software and much more. One challenge that the developments of information technology has created is the ease at which such activities can be administrated.
Describe a situation involving technology that is ethical but illegal.
Burning DVD’s to create awareness for 3rd world issues such as poverty is ethical hwoever the act of buring the DVD is in fact illegal as a form of piracy.
Describe and explain one of the computer use policies that a company might employee
Acceptable use policy (AUP) is a policy that a user must agree to follow in order to be provided access to a network or to the Internet. Also Microsoft internet explorer- this has an anti- competitive nature to it to reduce unethical practices.
What are the 5 main technology security risks?
- Human error
- Natural disaster
- Technical failure
- Deliberate Acts
- Management Failure
Outline one way to reduce each risk.
- Human error- better staff training.
- Natural disaster- preventative action such as fire alarms.
- Technical failure- back -up software.
- Deliberate Acts- security prevention; anti virus software.
- Management Failure- Better structure businesses.
What is a disaster recovery plan, what strategies might a firm employee?
A plan that is to be implemented in response to a disaster. Having passwords and other secure imformation kept in safe and protected areas.
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