LEVERAGING INFORMATION TECHNOLOGY IN GLOBAL BUSINESS

Q1: Information systems can add great value to businesses what are the benefits of
information systems in business? Why are information systems important?
Information systems are transforming business and the visible results of this include the
increased use of cell phones and wireless telecommunications devices, a massive shift toward
online news and information, booming e-commerce and Internet advertising, and new federal
security and accounting laws that address issues raised by the exponential growth of digital
information. The Internet has also drastically reduced the costs of businesses operating on a
global scale.
These changes have led to the emergence of the digital firm, a firm in which:

Most of the firm's significant business relationships with customers, suppliers, and
employees are digitally enabled and mediated.

Core business processes, or logically related business tasks, are accomplished through
digital networks.

Key corporate assets (intellectual property, core competencies, and financial and human
assets) are managed through digital means

Business responses to changes in their environment are enhanced through digital

communications, allowing for time shifting (business being conducted 24x7) and space
shifting (business being conducted globally or beyond traditional geographic
boundaries).

Information systems are essential for conducting day-to-day business in most of the advanced
countries, as well as achieving strategic business objectives. Some firms, such as Amazon and
E*Trade, would be nonexistent without information systems. Some service industries, such as
finance, insurance, and real estate industries, could not operate without information systems. The
ability of a firm to use IT is becoming intertwined with the firm's ability to implement corporate
strategy.
Q2: ABB Corporation is a company, which has implemented an information system to
improve its operational performance. What according to you would be the activities the
information system would perform?
Information system would improve efficiency, productivity and improved changes in business
practices and management behavior.
Information systems and technologies create opportunities for products, services and new ways
to engage in business

Improved communication with and service to customers raises revenues, and improved
communication with suppliers lowers costs.
Implementing effective and efficient information systems can allow a company to charge less for
superior products adding up to higher sales and profits.
Improved decision making.
Q3: What are the types of Business Information Systems? Explain only the functional
perspective.
(i) A Functional Perspective
(ii) A Constituency Perspective

FUNCTIONAL PERSPECTIVE
Identifying systems by their major business function. There are four main types of information
systems that serve different functional systems which are:
1. deal with the planning, development, and production of products and sSales and
marketing information systems help the firm with marketing business processes
(identifying customers for the firm's products or services, developing products and
services to meet their needs, promoting products and services) and sales processes
(selling the products and services, taking orders, contacting customers, and providing
customer support).
2. Manufacturing and production information systemservices, and controlling the flow
of production.This system provides information about the number of items available in
inventory to support manufacturing and production activities.
3. Finance and accounting information systems keep track of the firm's financial assets
and fund flows.
4. Human resources information systems maintain employee records, track employee
skills, job performance and training, and support planning for employee compensation
and career development.

Q4: EXPLAIN PORTERS COMPETITIVE MODELS

Firms with a competitive advantage over others typically have access to special resources that
others do not or are able to use resources more efficiently, resulting in higher revenue growth,
profitability, or productivity growth (efficiency), all of which ultimately in the long run translate
into higher stock market valuations than their competitors.
Michael Porter's competitive forces model describes five competitive forces that shape the fate
of the firm.
1. Traditional competitors: Existing firms that share a firm's market space
2. New market entrants: New companies have certain advantages, such as not being
locked into old equipment and high motivation, as well as disadvantages, such as less
expertise and little brand recognition. Some industries have lower barriers to entry, ie:
cost less for a new company to enter the field.
3. Substitute products and services: These are substitutes that your customers might use if
your prices become too high. For example, Internet telephone service can substitute for
traditional telephone service. The more substitute products and services in your industry,
the less you can control pricing and raise your profit margins.
4. Customers: The power of customers grows if they can easily switch to a competitor's
products and services, or if they can force a business and its competitors to compete on
price alone in a transparent marketplace where there is little product differentiation and
all prices are known instantly (such as on the Internet).
5. Suppliers: The more different suppliers a firm has, the greater control it can exercise
over suppliers in terms of price, quality, and delivery schedules.
Q5: Briefly explain the database approach to database management
Database technology eliminates many of the problems of traditional file organization by
organizing data:
Centralizing data and controlling redundant data, and serve many applications and different
groups at the same time
A database management system is software that

Acts as an interface between application programs and the data files.

Separates the logical view of the database (how the data perceived by end users) and the
physical view (how the data is actually organized on storage media). It also allows
different logical views for different users.

Helps to reduce data redundancy and eliminate data inconsistency by allowing a central,
shared data source.

ASSIGNMENT B
Q1: What is Artificial Intelligence?
The AI shell is the programming environment of an expert system.

What is the need of an AI in todays world?

Computers are fundamentally well suited to performing mechanical computations, using fixed
programmed rules. This allows artificial machines to perform simple monotonous tasks
efficiently and reliably, which humans are ill suited to.

AI aims to improve machine behavior in tackling such complex tasks. Together with this, much
of AI research is allowing us to understand our intelligent behavior. Humans have an interesting
approach to problem solving, based on abstract thought, high level deliberative reasoning and
pattern recognition. AI can help us understand this process by recreating it, then potentially
enabling us to enhance it beyond our correct capabilities.

Q2: Ethnical Dimensions of AI are often neglected, which lead to complications in

businesses.
Explain in brief, the ethical and social dimensions of IT
Ethics are the principles of right and wrong individuals, acting as free moral agents, use to make
choices to guide their behavior. Information systems raise new ethical questions for both
individuals and societies because they create opportunities for intense social change.
Ethical, social and political issues are closely linked. Introduction of new technology has a ripple
effect in the current equilibrium, creating new ethical, social and political issues that must be
dealt with on individual, social and political levels. Both social and political institutions require
time before developing new behaviors, rules and laws.
There are five main moral dimensions that tie together ethical, social and political issues in an
information society.

These moral dimensions are:

Information rights and obligations

Property rights and obligations

Accountability and control

System quality

Quality of life

Q3: Briefly explain who a hacker is and what the activities of a hacker are?
A hacker is an individual who intends to gain unauthorized access to a computer system. The
term cracker is typically used for hackers with criminal intent. Hackers spoof, or misrepresent
themselves, by using fake email addresses or masquerading as someone else.
Hacker activities includes:

Theft of goods and services

Systems damage

Cyber vandalism

Spoofing

Theft of proprietary information

ASSIGNMENT C
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