Programme Name: BCS IT (Hons.

Course Code: ISYS 2400

Course Name: Web System and Technologies

Submitted By: Submitted To:

Student Name: Rakshya Nepali Faculty Name: Satyam Paudel

IUKL ID: 041902900050 Department: LMS

Semester: Fourth

Intake: Sep, 2019

1. Information system, an integrated set of components for collecting, storing, and
processing data and for providing information and digital products. Discuss the
components of the information system.
➢ As we know that Information system, an integrated set of components for collecting,
storing, and processing data and for providing information and digital products. The
components of the information system are given below:
a. People Resources
b. Hardware Resources
c. Telecommunications Networks
d. Software Resources
e. Data Resources

a. People Resources
People are required for the operation of all ISs. People resources include: End
Users. As mentioned, these people use the IS or the information it produces. IS
Specialists develops and operates the IS.

b. Hardware Resources.
These include all the physical devices and materials used in information
processing, including all machines and data media. Key components include:
Computer Systems. These are the CPUs and their related peripherals, such as
terminals and networked PCs. Computer Peripherals are input and output
devices like keyboards, monitors, and secondary storage.

c. Telecommunications
These are the computer systems interconnected by various
telecommunications media such as modems. This component connects the
hardware together to form a network. Connections can be through wires, such
as Ethernet cables or fibre optics, or wireless, such as through Wi-Fi.

d. Software Resources
These include all sets of information processing instructions. Software
resources include: System Software. This controls the computer. Application
Software. These are for a specific end user task, such as word-processing.
 These are the operating instructions for the people who use the IS.

e. Data Resources
Data is both the raw material of and among the most valuable organizational
resources in the IS. Data can be in alphanumeric, text, image and/or audio
form. Data are typically organized into either Databases - which hold
processed and organized data; or Knowledge bases which hold knowledge in a
variety of forms such as facts and rules of inference about a given subject.

2. A company can survive and succeed in the long run only if it successfully
develops strategies to confront five competitive forces that shape the structure of
competition in its industry. Explain the competitive forces model of IT
infrastructure to a business.
➢ IT is changing the rules of business and competition in three ways. Firstly, because of
new technology, business models are changing. This, in turn, is changing the industry
characteristics. Secondly, using IT, new strategies are being formulated to service not
only the customers, but also to meet objectives for all stakeholders. An early adoption
of technology helps the firm to maintain its competitive advantage and remains as a
top-of-mind recall for potential customers. This forces competitors to devise similar
technology-enabled strategies and become “me too” in the process. And lastly,
because of technology, new business models are being created, which would not have
been possible otherwise.
Now, let’s discuss the competitive forces model of IT infrastructure to a business:

a. IT and Buying Power

With IT these forces can be controlled and monitored, which can become a big
factor in maintaining industry characteristics. For example, with technology-
enabled systems, purchase orders can be automated, vendor selection can be
faster, and inventory management can be automated. These features along
with automated billing capability will help an organization engaged in
engineering projects such as Larsen & Toubro,9 to reduce lead time for
procurement, improve vendor relationship, and be able to meet service-level
agreements made with different stakeholders. Thus, the power of buyers has
increased tremendously.

b. IT and Entry Barrier

Financial Institutions provide online and mobile investment facilities for
customers, which allow them to take investment decisions from any part of the
world without physical presence in banks and FI offices. However, these
features require complex software and a high degree of computer networking
for cloud computing. All these need to be managed and maintained by skilled
personnel. Training the skilled personnel is a must as they need to constantly
update themselves with the latest in technology. Also the end users of these
online systems need to be trained so that they can use the systems and increase
their productivity. These require a heavy amount of investment in technology,
training, and human resources. The heavy investment has increased the barrier
to enter this industry.
 c. IT and Threat of Substitutes
In the automobile industry, there is a constant need to introduce new models
and better quality vehicles to meet the changing taste of customers.
Introduction of MPFI (Multi-Point Fuel Injection), CRDI (Common Rail
Diesel Injection) engines have increased product life cycles of many models.
Also, there is a constant need to upgrade features of existing products to
induce existing customers to upgrade their vehicles. These require rapid
changes in design, ability to manufacture new as well as modified vehicles as
per the changed design specifications. Traditional manufacturing systems will
not be able to cope with the demand for meeting high quality with reduction in
manufacturing cycle time. Introduction of a flexible manufacturing system
made design easier while shortening the manufacturing cycle. Thus, with the
help of technology the organizations can manufacture new products with
shorter lead time and reduce the threat of substitutes.

d. IT and Industry Rivalry

In service industries such as Airlines, Railways, Banking services, the pricing
strategies and service levels are almost similar. There is little to differentiate
between two service organizations and this makes competition in the industry
fierce to get the share of the pie. With technology adoption, each organization
has been trying consciously to reduce the operation time with respect to
servicing a customer request, delivering the service with service-level
agreement, and finally preparing an invoice. Each time a firm introduces
technology to get an edge with respect to its competitors other players
immediately invest in similar technologies to remain competitive. Thus,
technology has increased the level of competition among players in the same
industry to get a portion of the pie.

e. IT and Selling Power

Gone are the days, when suppliers and buyers were not well informed about a
firm’s products, services and its strategies. With the help of the Internet,
buyers, suppliers, financial analysts, and customers are able to know details
about the firm’s strategies and quality of products and services. Several blogs
sites and review sites are available to comment on the value delivered by the
firm. This not only makes the entire business process transparent to buyers and
sellers, but also has an impact on relationships with buyers and sellers as well
as with linkages throughout the supply channel. For example, for Maruti,10
introduction of ERP (enterprise resource planning) has changed relationships
with its buyers and suppliers. Earlier, even though there was enough trust, still
the buyers and suppliers did not have much insight into the production
planning process of Maruti. With ERP (Enterprise Resource Planning), Maruti
has become more transparent, which has helped buyers and sellers to plan
accordingly. As a result, Maruti could demand raw materials at a competitive
price and buyers could meet customer demands for new vehicles.

3. Explain how information technology supports a company’s business processes

and decision making and give it a competitive advantage with examples.
➢ Information technology supports a company’s business processes and decision
making and gives it a competitive advantage. The primary activities are the functions
that directly impact the creation of a product or service. The goal of the primary
activities is to add more value than they cost. The primary activities are:
a. Inbound logistics: These are the functions performed to bring in raw
materials and other needed inputs. Information technology can be used here to
make these processes more efficient, such as with supply-chain management
systems, which allow the suppliers to manage their own inventory.
b. Operations: Any part of a business that is involved in converting the raw
materials into the final products or services is part of operations. From
manufacturing to business process management (covered in chapter 8),
information technology can be used to provide more efficient processes and
increase innovation through flows of information.
c. Outbound logistics: These are the functions required to get the product out to
the customer. As with inbound logistics, IT can be used here to improve
processes, such as allowing for real-time inventory checks. IT can also be a
delivery mechanism itself.
d. Sales/Marketing: The functions that will entice buyers to purchase the
products are part of sales and marketing. Information technology is used in
almost all aspects of this activity. From online advertising to online surveys,
IT can be used to innovate product design and reach customers like never
before. The company website can be a sales channel itself.
e. Service: The functions a business performs after the product has been
purchased to maintain and enhance the product’s value are part of the service
activity. Service can be enhanced via technology as well, including support
services through websites and knowledge bases.

The support activities are the functions in an organization that support, and cut across,
all of the primary activities. The support activities are:

a. Firm infrastructure: This includes organizational functions such as finance,

accounting, and quality control, all of which depend on information
technology; the use of ERP systems (to be covered in chapter 9) is a good
example of the impact that IT can have on these functions.
b. Human resource management: This activity consists of recruiting, hiring,
and other services needed to attract and retain employees. Using the Internet,
HR departments can increase their reach when looking for candidates. There is
also the possibility of allowing employees to use technology for a more
flexible work environment.
c. Technology development: Here we have the technological advances and
innovations that support the primary activities. These advances are then
integrated across the firm or within one of the primary activities to add value.
Information technology would fall specifically under this activity.
d. Procurement: The activities involved in acquiring the raw materials used in
the creation of products and services are called procurement. Business-to-
business e-commerce can be used to improve the acquisition of materials.

This analysis of the value chain provides some insight into how information
technology can lead to competitive advantage.