Week 2 Tutorial 1 Questions (Part II)

Chapter Two Questions

Question One. What is the difference between an 'application' and a computer-based information system?

A computer-based information system (CBIS) is an information system that uses computer technology to perform some or all of its intended tasks while an 'application' is a program designed to support a specific task or business process. Hence the ultimate difference is that a CBIS is designed to complete multiple tasks while an application is designed for a specific intended purpose.

Question Two. What are strategic information systems?

Strategic information systems are systems that provide a competitive advantage by helping an organisation implement its strategic goarls and increase its performance/productivity.

Question Three. According to Porter, what are the five forces that endanger a firm's position in its industry or marketplaces?

1. The threat of entry of new competitors

2. The bargaining power of suppliers

3. The bargaining power of customers (or buyers)

4. The threat of substitute products or services

5. The rivalry among existing firms in the industry

Question Four. In relation to Porter's value chain model, what is it meant by primary activities and support activities, and how does IT support these activities?

Primary Activities - activities that relate to the production and distribution of the firm;s products and services, creating value for which customers are willing to pay. including inbound logistics, operations, outbound logistics, marketing and sales and services.

Support Activities - do not add value directly to the firm's product or service, they contribute to the firms competitive advantage through the firms infrastructure, human resource management, product and technology development and procurement.


Question Five. Discuss the logic of building information systems in accordance with the organisational hierarchical structure

There is logic in a hierarchical structure because it establishes a clear order of channels in which people should follow. It provides a structure for queries to be dealt with in order of importance which is reflected by the level of the hierarchy.

Question Six. How has the Internet affected each of the five forces in Porter's competitive forces model?

The Internet has affected the five forces in Porter's forces model by developing a new market which allowed increased competitors, given suppliers and customers more buying/selling power because there are more options available, increased the number of products and services available particularly substitute products and has increased rivalry from between existing companies because it has introduced a new medium for them to compete within.