Chapter 2: Information Systems: Concepts and Management

1.What is the difference between an application and a computer based information systems?
An application is a computer program which is used to support a specific task or business process. A Computer-based Information System is an information system that uses computer technology to perform a task or tasks. They are interrelated as they are both applications designed for specofoc purpose eg: MYOB for accounting and financing processes, Word for general business usage and Excel for data entry and collection. It is also a support tool that helps the intentions of the business/organisation.

2. What are strategic Information Systems?
A strategic Information system is a system that allows an organisation to gain a competitive advantage by supporting its gaols, plans and objectives which inherently increases productivity.

3. According to Porter, What are the five forces that could endanger a firms position in its industry or marketplace?
Porter's model demonstrates the importance of IT in the operation of the business to maintain a competitive advantage. The 5 competive forces that could endanger the firms position include the following:
1. the threat of new competitor's entering the market
2. the bargaining power of suppliers
3. the bargaining powers of the customers
4. the threat of substitute products or services
5. rivalries among exisiting firms in the industry.

4. In relation to Porter's value chain model, what is meant by primary activities and supportactivites, and how does IT support these activities?
Porter's value chain model identifies strategies to provide specific activities a company/ business can use to gain a competitive adavantage through the impact of the organisations IT.
Primary Activities: are those which specifically realte to the production and distribution of a good. these include:
1. Inputs
2. Operations eg: manufacturing and testing the product for suitability and quality
3. Storage and distribution
4. Marketing and sales
5. Services
Support activites do not add value to the product but contributes to the competitive advantage through supporting the primary activites and include:
1. Infrastructure
2. HR Management
3. R&D
4. Procurement

5. Discuss the logic of building information systems in accordance with the organisational structure.
McKinsey's strategy of building information system in accordance with the organisational structure which include the following:
a) Strategy- what will the business do?
b) Structure-Who is going to do a particular task?
c) Systems- What system will be used?
d) Skills- What knowledge, skills and experience will be needed?
e) Staff- Who will be suitable for operating and supporting the business.

6. How has the internet affected each of the five forces in Porter's competitive forces model
Porter's competitive forces include:
* cost leadership strategy in which the organisation aims to produce products at the lowest cost possible in the market
*differentiation strategy exploits the organisations uniqueness about its products and services. As such this differentiation can lead to a competitive advantage.
*Innovation strategy allows for new designs, features, products that set the business to have a competitive advantage.
*Operational effectiveness strategy is an internal strategy which establishes a new way of doing business eg: a new operating procedure that produces higher productivity.
*Customer-Orientation Strategy establishes ways in which to appraised the needs and demands of the customer eg: B2C marketing and relationships.