Weekly Question (Chapter Two)

Chapter 2

Q1.What is the difference between an “application” and a “computer-based information systems”?
An application program is a computer program designed to support a specific task or business process, and a computer-based information system is a system that uses a computer technology to perform some of all of its’ intended tasks. The basic components of information system are, hardware, software, database and network like wireline/wireless

Q2.What is an information system?
An information system is a combination of components such as; hardware, software, databases, networks (both external and internal), procedures and people.

Q3.According to Porter, what are the five forces that could endanger a firm’s position in its industry or marketplaces?
1) The danger of entry of new competitor
2) The bargaining power of supplier (supplier power is high when buyers have few choices from whom to buy and low when buyers have many choices)
3) The bargaining power of costumer (Buyer power is high when buyer have many choices from whom to buy and low when buyer have few choice)
4) The threat of substitute products or services (changing in product and services, substitution danger is high)
5) The rivalry among existing firm in the industry

Q4.In relation to Porter’s value chain model, what is meant by primary activities and support activities, and how does IT support activities?
Primary activities are activities related to the production and distribution of the firms products and services and creating values of which costumer are willing to pay. They are divided in five primary activities as:
1. Inbound logistics (inputs)
2. Operation (manufacturing and testing)
3. Outbound logistics (storage and distribution)
4. Marketing and sales
5. Services
Support activities instead do not add value directly to firm’s product and services. They contribute to the firms by supporting the primary activities and it is consisted by:
1. The firm infrastructure (accounting, finance, and management)
2. Human resource management
3. Product and technology development (P&D)
4. Procurement

Q5. Discuss the logic of building information systems in accordance with the organizational hierarchical structure.
Well the logic of building information systems in accordance with the organisational structure is because it helps the business to collect, process, store, analyse, and disseminate information, with high-speed and volume.
Businesses, thanks to the information system are able to communicate and collaborate among other organisations, they have a huge amount of information available and helps as they work in a worldwide environment.

Q6. How has the Internet affected each of the five forces in Porter’s competitive force model?
The Internet has changed the nature of competition. Over all impact of Internet is to increase competition, which has a negative impact on profitability.