assignement _hb_2

8/8/2019 Assignement _HB_2

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ASSIGNMENT Q. NO:2 SUB:CADP

S U B M I T T E D B Y : T O N M O Y B O R A H Page 1

Business organizations are increasingly relying on and are dependent on

information systems for their functioning and staying ahead of competition."

In the context of the statement, discuss how

Information Systems can give competitive advantage and operationalefficiency to business houses.

An Information system (IS) is any combination of information technology and people'sactivities using that technology to supportoperations, management, and decision-making. Ina very broad sense, the term information systemisfrequently used to refer to the interaction betweenpeople, algorithmic processes, data andtechnology. In this sense, the term is used to refernot only to the information and communication

technology (ICT) an organization uses, but also tothe way in which people interact with thistechnology in support of business processes

Information systems contain information aboutsignificant people, places, and things within the

organization or in the environment surrounding it. Data is streams of raw faces representingevents occurring in organization or the physical environment before they have beenorganized and arranged into a form that people can understand and use.

Three activities in an information system produce the information that organizations need tomake decisions, control operations, analyze problems, and create new products or services.

These activities are input, processing, and output. Input is the capture or collection of rawdata from within the organization or from its external environment for processing in aninformation system. Processing is the conversion, manipulation, and analysis of raw inputinto a form that is more meaningful to humans. Output is the distribution of processedinformation to the people who will use it or to the activities for which it will be used.Information systems also require feedback, which is output that is returned to theappropriate members of the organization to help them evaluate or correct input.

Fig1:Functionsofaninformationsystem.
http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Algorithmichttp://en.wikipedia.org/wiki/Information_and_communication_technologyhttp://en.wikipedia.org/wiki/Information_and_communication_technologyhttp://en.wikipedia.org/wiki/Information_and_communication_technologyhttp://en.wikipedia.org/wiki/Information_and_communication_technologyhttp://en.wikipedia.org/wiki/Algorithmichttp://en.wikipedia.org/wiki/Information_technology


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An information system contains information about an organization and its surroundingenvironment.

The interest in formal, organizational computer based information systems(CBIS) isinformation systems that rely on computer hardware and software for processing anddisseminating information. Formal system is system resting on accepted and fixeddefinitions of data and procedures, operating with predefined rules.A Business Perspective on Information Systems

Broad based understanding of information system that includes behavioral knowledge aboutorganizations and individuals using information systems as well as technical knowledgeabout computers, as information system literacy. Computer literacy, in contrast, focus onknowledge about information technology, focusing on understanding of how computer basedtechnology work.

Fig.2 Usinginformationsystemseffectivelyrequiresanunderstandingoftheorganization,management,andinformationtechnologyshapingthesystems.

Organization

Information systems are an integral part of organizations. The key elements of anorganization are its people, structure, operating procedures, politics, and culture. The majorbusiness functions, consist of specialized task performed in a business organization,including manufacturing and production, sales and marketing, finance, accounting, andhuman resources. Standard Operating Procedures (SOPs) are formal rules for

accomplishing task that have been developed to cope with expected situations.


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Organizations require many difference kinds of skills and people. In addition to manager,knowledge workers are people, such as engineers or architects, who design products orservice and create knowledge for the organization. Data workers are people, such assecretaries or bookkeepers, who process the organizations paperwork. And production orservice workers are people who actually produce the products or services of theorganization.

Management

Information technology con play a powerful roles in redirecting and redesigning theorganization. It is important to note that managerial roles and decisions vary at differentlevels of the organization. Senior managers are people occupying the topmost hierarchy inan organization who are responsible for making long rang decisions. Middle managers arepeople in the middle of the organizational hierarchy who are responsible for carrying out theplans and goals of senior management. Operational managers are people who monitor theday-to-day activities of the organization.

Technology

Information technology is one of many tools managers use to cope with change. Computerhardware is physical equipment used for input, processing, and output activities in aninformation system. Computer software consists of detailed, preprogrammed instructionthat control and coordinate the work of computer hardware components in an informationsystem. Storage technology includes both physical media and software governing thestorage and organization of data for use in an information system. Communicationstechnology consist both physical device and software that link various computer hardwarecomponents and transfer data from one physical location to another. A network is the link oftwo or more computers to share data or resources, such as a printer.

An information system can also be considered a semi-formal language whichsupports human decision making and action.Information systems are the primaryfocus of study for the information systems discipline and for organisationalinformatics.

E-business and associated technologies continue to have a major impact on the wayorganizations conduct business. However, in the current environment which isconducive for imitative behavior, organizations find it increasingly difficult to createcompetitive advantage by simply implementing pervasive e-business solutions.Results show that e-business applications are considered to be an enabling

mechanism that enhances organizational competencies, thereby allowingorganizations to deliver traditional and new services more effectively and efficiently.The manner in which e-business systems are used constitutes a source ofadvantage. It was also found that in an industry where intensive interaction isrequired among organizations, standardization of e-business systems andcollaboration with partners and competitors constitutes a source of advantage.

The exponential growth and rapid changes of e-business technologies bring bothnew opportunities and challenges to businesses. The underlying technologies ofbasic e-business functions such as data storage, processing, and transport arebecoming increasingly indistinguishable among different organizations. This is
http://en.wikipedia.org/wiki/Decision_makinghttp://en.wikipedia.org/wiki/Information_systems_%28discipline%29http://en.wikipedia.org/wiki/Organisational_informaticshttp://en.wikipedia.org/wiki/Organisational_informaticshttp://en.wikipedia.org/wiki/Organisational_informaticshttp://en.wikipedia.org/wiki/Organisational_informaticshttp://en.wikipedia.org/wiki/Information_systems_%28discipline%29http://en.wikipedia.org/wiki/Decision_making


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because they are easily imitable and have become homogenized and are availableand affordable to all

Figure 3. E-Business Advantage Framework Components

E-business involves all commercial activities, a dynamic set of technologies,applications, and business processes performed across computer platforms that linkorganizations to their customers, suppliers, and other business partners throughelectronic exchange.

It not only provides new opportunities to sell goods and services, but also adds valuethrough improvements in supply chain efficiency and effectiveness. However, valuewill be added only when ebusiness investments are used as enablers fororganizations to realize their objectives. Thus, gaining competitive advantagedepends on the extent to which e-business applications can be harnessed to achieve

organizational goals more effectively and efficiently than competitors.

Based on extant literature, key factors relating to how e-business can generatecompetitive advantage for an organization can be identified. These factors are drawnfrom both the resource-based view and transaction cost theories. The proposedframework postulates that competitive advantage can be generated and depends onthe degree of internal and external integration within and between its e-businessprocesses and e-business systems and those of its business partners. Factors thatmay be integrated to create competitive advantage are complementary to eachother. These are summarized in Figure 3.

Ref: www.wikipedia.com, www. authorstream.com etc.

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