Chapter 10: Effectiveness of ICT

Question 1

What are these 5 informations systems? [5]
TPS, MIS, DSS, EIS, ES

Answer 1

1. TPS: routine trx proessing like bookkeeping, sales order processing
2. MIS: providing info (of routine nature) to management for planning and controlling
3. DSS: helping managers to make decisions on complex and unstructured matters. Decision models (forecasting,
   statistical analysis, linear programming models.
4. Executive information system: Gives executive summary information about issues and has drill down options (for more details)
5. Expert systems: provides information, advice, and recommendation on matters related to a specific area of expertise (PwC viewpoint: Accounting)

Question 2

IT and its effect [5]

Answer 2

1. New products and improvements in existing products (New Apps, you can video call people now(improvement))
2. Altered methods of communication (discord, zoom, facetime, email etc.)
3. Internet is a major source of easily accessible informaiton
4. Commercial transaction processing has become quick due to e-commerce automation
5. changes in IT will need to be considered when creating business strategy

Question 3

IT and IS changes affecting the organizational structure [4]

Answer 3

• Flatter hierarchy with fewer middle managers (due to improved comm channels)
• Decision making either central or local
• No need to work in office
• Virtual organizations have come into being

Question 4

What is e-commerce

Answer 4

E-commerce: transmission of funds or data and buying/selling of goods and services over an electronic network (primarily the internet)

Question 5

What is e-business

Answer 5

Definition: E-business includes all aspects of e-commerce, but it goes beyond just buying and selling online.

What It Encompasses:

External: E-business involves interactions with customers, suppliers, and other stakeholders.

Internal: It also covers workflows and information movement within an organization (between departments or functions).
Key Point: Modern businesses use e-business methods both internally and externally.

Question 6

Implications of e-business for performance managemen [5]

Answer 6

1. Increased Competitiveness and Efficiency by leveraging digital technologies.
2. E-business requires rethinking and redesigning business processes to align with digital capabilities.
3. E-business can alter an organization’s strategic position and provide different strategic options.
4. Changing Marketplaces and Relationships
5. Expanded Information Access

Question 7

Impact of internet on porter’s five forces

Answer 7

1. Competitive
   rivalry: Increase as more info will result more people to copy you and as supply increases, prices will decrease
2. Threat of new entrant: High
3. Power of supplier: Access to customers is increased hence supplier would have higher bargaining power
4. Power of customer: Access to other businesses will be increased resulting in higher bargaining ppower to customers
5. Threat of substitution: High due to access to information

Question 8

E-commerce and the globalization of business [5]

Answer 8

1. Reduced Geographical Barriers: E-commerce enables communication between suppliers and customers across distances.
2. Comparisons and Advertising: Customers can compare products and services online, and suppliers can advertise globally.
3. Market Size Expansion: E-commerce has made markets more international, increasing competition.
4. Efficiency Depends on Information: Global market efficiency relies on information and communication.
5. Management Control via IT/IS Systems: International groups use computer networks for management control