ASSIGNMENT

Module II: Information Systems in the Enterprise

1. Try to know the Information Systems in any one of the company’s existing in Marketing
or Manufacturing. Find out their advantages and Disadvantages?
Answer:

Information technology is often valued in the business sector because of the immediate
rewards it offers users. It is nice to search for the meaning of a word or phrase and get the
answer to your question within a matter of seconds. It is equally fulfilling to have the ability to
connect with so many people at once regardless of where you are in the world. There are more
benefits to IT than what one may see at the surface level, though.
The advantages of information and communication technology are numerous and
revolutionary in nature especially when it comes to business and company growth.
5 Advantages and Disadvantages of Information and Communication Technology in Business
Read on to learn about the 5 advantages of information and communication technology in
business!
1. IT Improves Communication
Emails changed the way that employees interacted with one another during the 90s.
Many flocked to America Online to convey messages and found that responses to digital
communication were much faster than that of sending someone a letter. The only thing
that surpassed the old days of email communication was that of a telephone call. Now,
thanks to smartphones and social media, an employee can get a response from
colleagues within a matter of seconds if they use the right means. Information
technology has also given birth to cloud computing, which lets employees access
important information when they are not in the office. There is no need to connect to a
hard drive when you are using cloud storage. The world of IT, then, cuts through the
extra steps to make communication faster.
Efficient communication is key to the success of a company, and IT helps to streamline
communication. In a rapidly connected and vast business landscape, hiring, leveraging,
and retaining employees requires continuous communication and collaborative efforts.
A crucial benefit of IT is in its ability to streamline communication both externally and
internally. For instance, video conferencing and online meeting platforms such as Go To
Meeting, Zoom and Skype offer businesses the work remotely in real-time, greatly
reducing costs that come with having clients on-site or interacting with employees who
work remotely. Thanks to IT, businesses are able to connect and communicate almost
effortlessly with international consumers and suppliers.

2. IT Cuts Costs
Of course, when you talk about eliminating steps in business, there is the possibility of
saving money. One of the major 5 advantages of information technology is its ability to
keep money in your company’s bank account. Some people are scared off by the notion
of IT because of the upfront costs that sometimes feel overwhelming. The truth,
 though, is that an updated system pays for itself within a matter of weeks. Improved
communication alone leads to more productivity and, thus, increased earnings.
Information technology is an investment that all business owners should pursue. While
it may initially appear expensive to implement IT, in the long run, it will however
become significantly cost-effective by streamlining an organization’s managerial and
operational processes. Basically, implementing information and communication
technology in business allows businesses to achieve more with less, without
compromising value or quality.

3. IT Encourages Strategic Thinking

Better communication leads to more critical thinking. Employees are less concerned
with how to get into contact with co-workers when they know that they can relay
information through the cloud. Thus, with the stress of figuring out how to
communicate lifted, workers can take in the information shared and create better
strategies for improvement. One of the advantages of data communication is,
therefore, more time, which leads to more effective planning.
IT can help an organization to enhance their competitive edge in the marketplace, by
encouraging knowledge transfer and strategic thinking. For instance, by leveraging
subscription databases and social networks, companies are enabled to organize,
interpret and transmit data like never before. This has provided enterprises with
unmatched access to consumers and customers, assisting companies to deliver better
and innovative products.

4. IT Protects Information
There will always be a place for traditional files in the corporate sector. Leaving a paper
trail, however, may not be the best idea when it comes to sensitive information.
Identity thieves have a way of taking the simplest information, such as a name or
birthdate and transforming it into a weapon that victimizes unsuspecting individuals. It
is best, then to invest in information technology with encryptions and other security
measures that keep unauthorized eyes from viewing classified information. In
protecting classified information, information technology works to ward off lawsuits.
Victims of identity theft often track down the source where thieves were able to steal
information. It is not uncommon for such persons to sue companies responsible for
damages related to the crime. Your decision to keep up-to-date with the latest
technologies can essentially keep legal fees for negligence at bay.
5. IT Cuts through Cultural Barriers
Diversity is something that corporations continue to strive for despite laws in the United
States that prohibit discrimination based on race, gender, sexual orientation, age and
other factors that make a person uniquely different. The good thing about the IT world
is artificial intelligence, which does not automatically come with the same filters of
which humans are accustomed.
A computer does not care if a person is a man or a woman if the potential candidate’s
resume meets the predetermined qualifications for the job. Information technology,
 therefore, can contribute to diversity by design of operating systems.

Disadvantages of information and communication technology in business

1. Reduction in available job opportunities for humans

Organizations consider technology a better “employee” when it’s utilized in the
production processes of the business. Not only can work be finished on time, but also
certain processes can be automated for ease of operation. Hence, software tools have
the capacity to perform tasks that are meant for human employees. The implication of
this is that they have become a competition for humans as companies don’t see the
need to hire as many individuals for jobs that can be carried out by fewer employees
and a smart software. While this decrease in the demand for human labour may be
good news to business employers, it is however not advantageous to human workers.
When technology is employed instead of humans, business ventures see no essence of
hiring them. Consequently, the rate of unemployment increases and the society has
more people who are struggling to feed their household and pay their bills. It is thus
important that companies understand how to employ human workers instead of simply
laying them off as a result of technological advancements. For instance, it’s better if
business enterprises can retrain their workers, and after the training, the employees
should be reassigned to execute other roles and occupy new positions that machines
cannot. Moreover, it’s pertinent to remember that technological devices will only
function optimally when they are operated by skilled human employees.

2. Advancement in technology has made employees anti-social

Technology has introduced channels for individuals to communicate with each other
without necessarily having to be within the same region. This is possible thanks to
several communication tools such as Skype. As a result, business colleagues can hold
conference meetings from different parts of the world.
As wonderful as this is, the problem is that the bulk of human communication has
moved online. Meanwhile, employees who have adopted the use of technological
devices for the vast majority of their communications experience a deterioration in their
social skills. There’s been a change in individual behaviors because they are used to
spending most of their time using technological devices like laptops and mobile phones.
But there is something businesses can do to resolve the issue. Not all conferences and
communications should be carried out online. Business owners should organize
particular periods in the year when their employees can meet physically and interact.

3. Excessive dependence on technological devices

As we all know, technological devices are useful in the automation of complicated
enterprise processes. This is great for your company. However, all machines can
breakdown at any point due to several factors. When that happens, production
operations are suddenly halted and this can throw your business into a state of panic.
When work is automated, people tend to depend too much on technological devices. As
 a result, they feel it is unnecessary to understand how these processes can be carried
out manually. The entire business operation comes to a halt whenever there’s a
problem with the technological devices. This is why as a business owner, you should not
allow your operations to be solely dependent on technological applications. Train your
workers so they know what to do whenever the technological applications are
malfunctioning. In addition, you should have full manuals that specify what should be
done to get the company and business operations ruining in the unforeseen case of a
device failure.

4. Costs of implementation and regulatory compliance

It takes time and money to get new solutions implemented. Typically, business services
become interrupted as new phases of the operations are implemented. Extra employee
training is needed and customers may have to endure a decline in the quality of service
during the process of the implementation.
Organizations typically hire external contractors to execute the implementation of new
hardware and software solutions. While Information Technology solutions have become
less expensive with the improvements in technology, organizations that have extensive
compliance requirements must ensure that they adhere by all regulations or they will
stand the risk of legal actions and penalties.

5. More and more data regulations

In the modern world, information is huge business. This is why data protection and
ethical usage of it are of paramount significance to regulatory authorities and
lawmakers. Enterprise owners can not afford to be ignorant of what is involved in client
data protection. Some sectors have much higher regulations than others, such as the
financial services and healthcare industries, because in their day-to-day business
operations, these businesses accumulate private and sensitive information from
patients and clients. Nonetheless, just because you own a fashion store doesn’t mean
you are free of regulations. The way you handle email lists; the process of confirming
the age of the individuals you gather information on; and how you manage credit card
data, is all regulated. Having preparation and adopting standard protocol is key to
protecting your company and your clients.

Final Thoughts
The explanations above are just some of the advantages and disadvantages of using ICT in
business. The good news is that there are procedures and policies that you can implement as a
business owner in order to remedy the cons. In all, as your company embraces the use of
information and communication technology in business, get ready to tackle the negative effects
as well.
2. Elucidate the impact of IT on decision making

Answer:

With the advent of advanced technology, the reliance of businesses on IT/tech products for better
decision-making is growing exponentially. Businesses are using different technological tools such
as consumer analytics, data-driven technology, and artificial intelligence to make informed and
better business decisions. Integrating technology for better decision-making can provide
numerous benefits and tremendously reduce the chances of making wrong decisions.

The main benefits are

1. Data processing Capabilities
Information technology provides an immense amount of data to make your business decisions
more informed and accurate. Advanced tools such as data analytics, data mining, etc.
automatically process the consumer data and make a computerized decision based on such data.
Today, with the help of IT business decisions are not made based on intuition or taking advice
from a friend. Business decisions are purely made based on data.

Faster decision-making process

With the help of information technology, a large amount of data is processed and summarized
within a few seconds. It provides correct data at the right place at the right time, making the
business decision process much faster and more effective. As a decision-maker or business owner,
you should know the usage of the data and how to process the data to make the right decision.

Sharing is caring
Today the world is interconnected with the help of technology. Whenever you need anything it’s
just a click away. The same is the case with business problems, excess to entrepreneurs, seniors
and mentors have been very easy. You can easily join an online course, or conference and seek
advice from business experts regarding your business problem.

Isn’t it amazing how technology has completely revolutionized the business decision-making
process? It surely is! So what are you waiting for
For your business to run smoothly, you have to make decisions, whether simple or complex.
And every decision you make can affect the success of the company in the long term.
As an executive, you have to ensure continued operation and growth of the business, and this can
be significantly more straightforward by using technology.

The use of tech in business operations and activities nowadays is indispensable. Technology avails
information to all decision-makers, helps speed up processes, and increases efficiency.
Furthermore, technology allows department heads to better collaborate with their teams in order
to execute decisions while also affording the opportunity to update employees on how to carry
out tasks that will benefit the company.
Information Gathering
People tasked with making business decisions require access to information to prepare and justify
their choices. Data can be obtained from customer records, financial records, market trends,
competitor profiles, and other corporate details.

To access such large amounts of data, a company can make use of a robust data management
system that can store information in a central location accessible through a secure network.

Data Collection
Technology can speed up data collection to help company managers make decisions faster and
more efficiently. By offering network links between consumers and the company’s central
database, the company will collect current data on sales and can make decisions based on the
new information.

Supply chain managers can also gather and share production and market data to make
appropriate decisions on stock levels and production.

Processing Tools
Before a decision is made or implemented, it has to undergo various stages, including
preparation, structuring, making, and management.

The data requirements for each stage vary. If your organization invests in business intelligence
software, they’ll be able to select, analyze, and manipulate data however they want and decide
what’s best for the company.

Collaboration
For many companies, decision-making is a process involving departments or a group of
stakeholders. Through technological collaboration tools, they can converge to discuss and decide
on a new project, such as new product development or marketing campaign.
3. What do you think Executive Support System (ESS) make some effect on the
organization?

Answer:

Executive support systems are intended to be used by the senior managers directly to
provide support to non-programmed decisions in strategic management.
These information are often external, unstructured and even uncertain. Exact scope and
context of such information is often not known beforehand.
This information is intelligence based −
Market intelligence
Investment intelligence
Technology intelligence

Examples of Intelligent Information

Following are some examples of intelligent information, which is often the source of an
ESS −
External databases
Technology reports like patent records etc.
Technical reports from consultants
Market reports
Confidential information about competitors
Speculative information like market conditions
Government policies
Financial reports and information
Features of Executive Information System
Advantages of ESS
• Easy for upper level executive to use
• Ability to analyze trends
• Augmentation of managers' leadership capabilities
• Enhance personal thinking and decision-making
• Contribution to strategic control flexibility
• Enhance organizational competitiveness in the market place
• Instruments of change
• Increased executive time horizons.
• Better reporting system
• Improved mental model of business executive
• Help improve consensus building and communication
• Improve office automation
• Reduce time for finding information
• Early identification of company performance
• Detail examination of critical success factor
• Better understanding
• Time management
• Increased communication capacity and quality

Disadvantage of ESS
• Functions are limited
• Hard to quantify benefits
• Executive may encounter information overload
• System may become slow
• Difficult to keep current data
• May lead to less reliable and insecure data
• Excessive cost for small company
 4. Make distinction between the various interactive components of decision support
system?
Answer:

Decision support system (DSS) is a specific class of MIS system that helps the manager at all stages
of decision-making like problem identification, selection of relevant data, picking up the right
approach and examining alternatives. Decision support system is a mixture of computer
applications and human component which can go through large amount of data and come up with
solutions. Many companies have adopted DSS as a part of their daily operations activities instant of
considering it is as a specialised part of business. Many companies are constantly download and
analysis data, budget sheet and forecasts to constantly update their strategy. This decision support
system is static in business but it's result are dynamic or constantly changing. A system which
supports the process of decision making is known as decision support system (DSS). This helps in
supporting only and not automating the process of decision making. With the help of decision
support system, decision maker can retrieve the information and find the alternate solutions in the
process of problem solving. DSS aids in quality decision based on model data. Correct decision
making in business is usually dependent on quality and analysis of data and is used to find trends,
which helps in creating solutions and strategies.
Example of DSS : 1) Logistic System, 2) Financial Planning System, 3) Group Decision Support
System (GDSS), 4) Computer Supported Co-operative Work (CSCW)

Definition of Decision Support Systems

According to Scott Morton :"Decision support system (DSS) is interactive computer based system,
which helped decision-makers utilize data and models to solve unstructured problems".
Components of Decision Support Systems

The components of decision support system are as follows :

1. Data Management Sub-System -
Data management sub-system comprises of a database that contains appropriate data related to
the situation and is managed by the database management system (DBMS) software. The data
management sub-system can be connected to this corporate data warehouse. A corporate data
warehouse refers to the library of corporate relevant decision-making data. The data is stored and
accessed by database web server. The element of data management sub-system are as follows :
i) Database management system, ii) Query facility, iii) DSS database, iv) Data directory

2. User Interface Sub-System -

The intensive interaction between the computer and decision maker has led to unique
contribution of DSS. This sub-system helps the user to communicate with the DSS. A user friendly
reliable graphical user interface structure is offered by the web browser for most of the DSS.

3. Model Management Sub-System -

Model management sub-system includes modelling languages that are used for building custom
models. It can be related to corporate or external storage of models. Model base management
system refers to a software package that includes statistical, financial, management science or
other quantitative models that offer the analytical capabilities of system and suitable software
management. It can be related to corporate or external storage models. MBMS solution is
implemented and run on application servers.
Model management sub-system comprises of the following elements :
i) Model directory, ii) Model base, iii) Model base management system, iv) Modelling language
v) Model execution, integration and command processor

4. Knowledge Based Management Sub-System -

This sub-system easily integrates with the other DSS components. Knowledge based management
sub-system can act as a independent component or can provide support to any other sub-system.
It enhances the decision-makers intelligence. The knowledge is provided via web browsers. It can
be inter-related with the organisation knowledge base which is a part of the knowledge
management system.
Functions / Activities of Decision Support Systems

1. Model Building -
DSS aids in the decision-making process by identifying the most appropriate model for solving
problems. It considers the input variables, inter relationship among the variables, problem
assumption and constraints to design a suitable model.
For example : A television manufacturing company has given the responsibility to its marketing
manager to develop a sales forecasting model is for colour TV sets.

2. Risk Analysis -
DSS especially helpful while taking medium or high risks decision. Decision can be low, medium or
high risks. DSS helps in assessment of risks of various alternatives by managers in a business
enterprise which helps in making decisions.

3. Goal Oriented -
This activity refers to the procedure of determining the value of input that is required to succeed a
particular goal.For example : While deciding to buy a house, a person first calculate the equated
monthly installments that she or he can afford and for how long.

4. Graphical Analysis -
It provides large volume of data in graphical format to visualise it easily and quickly. Managers can
also view the impact of various courses of action. The use of graph is recommended when :
i) Forecasting, ii) Detecting Trends over time ,iii) A quick summary of data is required
iv) Composing points and patterns at different variables

5. What-if Analysis -
If this activity, an end user will make changes to variables or relationship among them to notice the
resulting changes in other variables.
For example : If advertising cost is cut by 10% what would be the corresponding impact on sales ?

Characteristics of Decision Support Systems :

1. Performs Complex, Sophisticated Analysis and Comparisons Using Advanced Software Packages -
There are several programs (part of DSS) used by various methods that analyse the raw data.

For example : A market research survey can be analysed by different standalone analytical
programs associated with DSS. It is DSS which then integrates these programs to come up with
comparative studies.

2. Provides Report and Presentation Flexibility -

This information gathered with the help of DSS may be displayed on the computer screen or can be
printed according to the need of the decision makers. Managers get access to different kinds of
reports in formats that fit to their requirement.

3. Provides Rapid Access to Information -

Continuous and Rapid access of information is offered by DSS.
For example : The metres on the dashboard of a vehicle are used to keep a watch on how the
vehicle is running.

4. Supports Drill-Down Analysis -

DSS helps the manager in going through details of the project by drilling down through data.
For example : When reviewing the total project cost, the manager can easily break it down to
estimate the cost for each phase, activity or task.

5. Handles Large Amounts of Data from Different Sources -

DSS has the ability to accumulated data from different databases which are stored on different
computer systems or networks. It can also source data from the internet.

6. Offers both Textual and Graphical Orientation -

DSS can produce information in a wide variety of text and graphics such as plain texts, tables, Pie
Charts, Trends Lines, line drawings etc. All of these provide a better understanding of a situation to
managers and help them to communicate the same to others.

Advantages of Decision Support Systems

1. Facilitating Communication -
DSS helps in indicating when a particular action should be adopted in future or why a particular
action was acceptable in the past. The DSS facilitates interpersonal communication and hence it is
used as a tool for benefit of business.

2. Increasing Organisational Control -

DSS control this information, which is in turn used by the managers in assessing the productivity of
an individual in the quantity and quality of their decision making ability. Some DSS can evaluate the
individual's decision making skills.

3. Improving Personal Efficiency -

DSS aids in improving personal efficiency. Although it does not do any work in actual but it aids in
doing any work a bit faster and with greater efficiency.
For example : Budgets where earlier prepared manually before spread sheets software was
discovered but DSS helps to make work faster with less changes of error.

4. Promoting Learning or Training -

DSS helps people to learn more about computer and software packages that are present in it.
Although, this was never the motive of DSS but it promotes learning as well.

5. Improving Problem Solving -

DSS helps a personal or a group of people in solving problem at a much faster pace with accuracy.
When probably applied, it increases the efficiency of a task. It aids in solving the problem as a
whole.

Disadvantages of Decision Support Systems

1. Limited Storage Capability -
DSS has computation limitations because of its small memory and limited storage capacities.

2. Difficult -
It is difficult to understand inter-dependency of functions within the system. Monitoring of
consequences of DSS function usage in relation to decision scenerio and integrity of database is
complex.

3. Slow -
The speed of DSS is much slower than large mainframes.

4. Limited Information Sharing -

Decision support system's are mostly designed for individual use but when they are designed for
multiple accesses by several computers, DSS provides only limited sharing of it's information.

5. Translation Problems -
The translation problems can occur at the time when users interact with DSS databases because
these databases in turn are made up to different data models, which may face translation
problems while interfacing with one another.

6. Confliction -
As users have to constantly work on several decision scenarios at the same time, they have to
simultaneously monitor the decisions taken.

7. Require Extensive Knowledge -There are applications which need extensive technical knowledge.
5. Describe how strategic information system is different from other information systems.

Answer:
Strategic information system provides a connection between demands of organization and latest
information technology. This tactic helps an organization to get hold of the market by utilizing
Information tech to meet its challenging requirements to the continuous variation in the
corporate environment. Helps them evolve their business strategy, helps with knowledge
management and operations management.

Information system strategy is a critical aspect of an organization’s management decision for its
growth, expansion and supply chain management. Information technology and competitive
intelligence can work wonders for a business. The integration of the data system and its function
within the organization can be handled easily by enabling open access and use of management
systems. Besides that, it also enables the classification of different opportunities for the use of
information systems for different strategies. It gives the surety that only useful resources or the
use of resources which are less are allocated to the applications and to use the scarce resources
in a sustainable way and have a better impact factor. With the System Information Strategy, it
ensures that the Information system functions accordingly and supports the business goals and
objectives of the organization at the different levels.

There are several instances of strategic planning which have helped the organizations to help
create and sustain the resources in this competitive market over the past years and has allocated
several effective benefits and simply continued to provide for the survival of these organizations
which have used these systems. These systems are often termed as ‘strategic concepts of the
organization.’ To give the maximum performance of the firms financially in a fluctuating market,
the correlation between Strategic Management and Information System is significant
fundamentally. Understanding of management information system is equally helpful & an asset
to the organisation.

In additional to the reduction in product related cost, it also helps in increasing market share,
streamline business process, provide a better business environment, diversify functional areas,
and deliver high quality product and services.

Strategic Information Systems are computer systems that are used at every level of the
organization that change operational objectives, service products and environmental
relationships to help organizations gain competitive advantage.
Importance of Strategic information system

Strategic information system provides a connection between demands of organization and latest
information technology. This tactic helps an organization to get hold of the market by utilizing
Information tech to meet its challenging requirements to the continuous variation in the
corporate environment.
Types of Information System strategic:
1. Operation support system
The primary purpose of this system is to keep a check on transactions, operations, control, chain
supply, and management. It also helps to facilitate internal and external talks, and it updates the
central main database of the organization.

2. Management Support System

These systems facilitate and provide precise information and data to the manager for easy
routines, decision-making processes. Decision support system which helps to solve particular
issues related problems.
Uses of Strategic information system:
1. Cost Leadership Strategy
Information systems are said to support this strategy if the company able to reach a position
lowest costs in the industry, by way of business process engineering, lowering costs from
suppliers, and reduce costs to customers. For the example most of retail company who create
promotion of the retail product to attract customers to buy the product cheaper than the other
companies.
2. Differentiation Strategy
Information systems are said to support this strategy if they can provide products or services
unique and able to provide more value to customers compared to other competitors, namely by
way of: utilizing information technology to create products or services that are different, and
reduce the advantages of differentiation from competitors.
3. Focus Strategy
Information systems are said to support this strategy if they can help the company focusing on
specific products or services within the organization.
4. Innovation Strategy
Information systems are said to support this strategy if they can find specific ways in doing
business is by providing products or services with the latest innovations. For the example Apple
Product that offers a lot of features and high qualities software in their smartphone, smartwatch,
or laptop. Even the price is more expensive than similar products, but the people are willing to
buy because of the high quality and the innovation.
5. Alliance Strategy
Information systems are said to support this strategy if they can create cooperative relationships
which benefits both suppliers and other companies even with competitors.
6. Growth Strategy
Information systems are said to support this strategy if they able to develop and diversify market.
7. Quality Strategy
Information systems are said to support this strategy if they able to help improve the quality of
the product or service.