ISYS104 Tutorial week 2

Review Questions
1. How are information systems transforming business and what is their relationshi to globali!ation" #es$ribe how information systems ha%e $hanged the way businesses o erate and their rodu$ts and ser%i$es. Wireless communications, including computers, cell phones, and PDAs, are keeping managers, employees, customers, suppliers, and business partners connected in every way possible. E-mail, online conferencing, the Web, and the nternet, are providing new and diverse lines of communication for all businesses, large and small. !hrough increased communication channels and decreased costs of the communications, customers are demanding more of businesses in terms of service and product, at lower costs. Ecommerce is changing the way businesses must attract and respond to customers. Identify three ma&or new information system trends. !able "-", page #, outlines new $ % changes and their impact on business. !he table is organi&ed by the three dimensions of information systems' technology, management, and organi&ations. #es$ribe the $hara$teristi$s of a digital firm. %ignificant business relationships with customers, suppliers, and employees are digitally enabled and mediated. (ore business processes are accomplished through digital networks spanning the entire organi&ation or linking multiple organi&ations. )ey corporate assets * intellectual property, core competencies, and financial and human assets * are managed through digital means. !hey sense and respond to their environments far more rapidly than traditional firms. !hey offer e+traordinary opportunities for more fle+ible global organi&ation and management, practicing time-shifting and space-shifting. ortunities of globali!ation in a 'flattened( world.

#es$ribe the $hallenges and o

(ustomers no longer need to rely on local businesses for products and services. !hey can shop ,-.# for virtually anything and have it delivered to their door or desktop. (ompanies can operate ,-.# from any geographic location around the world. /obs can 0ust as easily move across the state or across the ocean. Employees must continually develop high-level skills through education and on-the-0ob e+perience that cannot be outsourced. 1usiness must avoid markets for goods and serves that can be produced offshore much cheaper. !he emergence of the nternet into a full-blown international communications

system has drastically reduced the costs of operating and transacting business on a global scale. 2. )hy are information systems so essential for running and managing a business today" *ist and des$ribe si+ reasons why information systems are so im ortant for business today. %i+ reasons why information systems are so important for business today include' 2"3 4perational e+cellence 2,3 5ew products, services, and business models 263 (ustomer and supplier intimacy 2-3 mproved decision making 273 (ompetitive advantage 283 %urvival nformation systems are the foundation for conducting business today. n many industries, survival and even e+istence without e+tensive use of ! is inconceivable, and ! plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organi&ation and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage. 2. )hat e+a$tly is an information system" How does it work" )hat are its management, organi!ation and te$hnology $om onents" #efine an information system and des$ribe the a$ti%ities it erforms. An information system is a set of interrelated components that work together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visuali&ation in an organi&ation. n addition to supporting decision making, information systems may also help managers and workers analy&e problems, visuali&e comple+ sub0ects, and create new products. *ist and des$ribe the organi!ational, management, and te$hnology dimensions of information systems. 4rgani&ation' !he organi&ation dimension of information systems involves issues such as the organi&ation9s hierarchy, functional specialties, business processes, culture, and political interest groups. $anagement' !he management dimension of information systems involves setting organi&ational strategies, allocating human and financial resources, creating new products and services and re-creating the organi&ation if necessary. !echnology' !he technology dimension consists of computer hardware, software, data management technology, and networking.telecommunications technology.

#istinguish between data and information and between information systems litera$y and $om uter litera$y.

Data are streams of raw facts representing events occurring in organi&ations or the physical environment before they have been organi&ed and arranged into a form that people can understand and use. nformation is data that have been shaped into a form that is meaningful and useful to human beings. nformation systems literacy is a broad-based understanding of information systems. t includes a behavioral as well as a technical approach to studying information systems. n contrast, computer literacy focuses primarily on knowledge of information technology. t is limited to understanding how computer hardware and software works.

-+ lain how the Internet and the )orld )ide )eb are related to the other te$hnology $om onents of information systems. !he nternet and World Wide Web have had a tremendous impact on the role information systems play in organi&ations. !hese two tools are responsible for the increased connectivity and collaboration within and outside the organi&ation. !he nternet, World Wide Web, and other technologies have led to the redesign and reshaping of organi&ations. !hey have helped transform the organi&ation9s structure, scope of operations, reporting and control mechanisms, work practices, work flows, and products and services. .. )hat are $om lementary assets" )hy are $om lementary assets essential for ensuring that information systems ro%ide genuine %alue for an organi!ation" #efine $om lementary assets and des$ribe their relationshi to information te$hnology. (omplementary assets are those assets re:uired to derive value from a primary investment. ;irms must rely on supportive values, structures, and behavior patterns to obtain a greater value from their ! investments. <alue must be added through complementary assets such as new business processes, management behavior, organi&ational culture, and training. #es$ribe the $om lementary so$ial, managerial, and organi!ational assets re/uired to o timi!e returns from information te$hnology in%estments. !able "-6 2page ,#3 lists the complementary social, managerial, and organi&ation assets re:uired to optimi&e returns from information technology investments. =ere are a few of them' 4rgani&ational assets' %upportive culture that values efficiency and effectiveness Appropriate business model Efficient business processes Decentrali&ed authority $anagerial assets'

%trong senior management support for technology investment and change ncentives for management innovation !eamwork and collaborative work environments

%ocial assets' !he nternet and telecommunications infrastructure !-enriched educational programs raising labor force computer literacy %tandards 2both government and private sector3 4. )hat a$ademi$ dis$i lines are used to study information systems" How does ea$h $ontribute to an understanding of information systems" )hat is a so$iote$hni$al systems ers e$ti%e" *ist and des$ribe ea$h dis$i line that $ontributes to a te$hni$al a information systems. roa$h to

A technical approach to information systems emphasi&es mathematically-based models to study information systems and the physical technology and formal capabilities of information systems. %tudents should know the differences between computer science 2theories of computability, computation methods, and data storage and access methods3, management science 2development of models for decision making and managerial practice3, and operations research 2mathematical techni:ues for optimi&ing organi&ational parameters such as transportation, inventory control and transaction costs3. *ist and des$ribe ea$h dis$i line that $ontributes to a beha%ioral a information systems. roa$h to

A behavioral approach to information systems focuses on :uestions such as strategic business integration, behavioral problems of systems utili&ation, system design and implementation, social and organi&ational impacts of information systems, political impacts of information systems, and individual responses to information systems. %olutions to problems created by information technology are primarily changes in attitudes, management, organi&ational policy, and behavior. #es$ribe the so$iote$hni$al ers e$ti%e on information systems. A sociotechnical perspective combines the technical approach and behavior approach to achieve optimal organi&ational performance. !echnology must be changed and designed to fit organi&ational and individual needs and not the other way around. 4rgani&ations and individuals much also change through training, learning, and allowing technology to operate and prosper.

Case Study
a3. >o through the (ase %tudy on page 8#2All (ase %tudies are available in your te+tbook ?$anagement nformation %ystems@3.

b3. 4nce you have completed the case study please answer all :uestions relating to the case study, which are located at the end of each case study. 1. How $an Se$ond *ife ro%ide %alue to businesses that use it" %econd Aife can provide value to businesses that use it by providing a low-cost birthing ground for new industries and transform businesses, commerce, marketing and learning much the way the Web has done. t can help facilitate internal communications and help companies recruit tech-savvy employees. t may also serve as a new marketing tool. %econd Aife provides businesses with tools for online conferencing, online collaboration, knowledge management, and prototyping. (ompanies can test new products using %econd Aife9s 6-D rendering programs. !hey can e+periment with new marketing and advertising campaigns to see how people react. !hey can receive feedback on real-world products or services. 2. )hat kinds of businesses are most likely to benefit from a resen$e on Se$ond *ife" )hy" Betail businesses that are already used to doing business online may have an easier time of establishing a viable presence on %econd Aife. !hey are used to advertising and marketing to customers online and have the systems built for taking orders, accepting payments, and shipping products. 4ther companies, like 1$, that have established online collaboration systems and online knowledge management systems will probably have an easier time using %econd Aife as another outlet for these activities. .. 0onsidering what you ha%e learned about Se$ond *ife, how $ould you, as an indi%idual, $reate a modest start1u business on the 2rid" )hat goods would you sell" )hy would this be a good $hoi$e of rodu$t" )hat, in sim le terms, would your business lan be" )hy would it work" 4ne potential new business would be to sell furnishings for online spaces. People inherently want to furnish and decorate their private spaces. !he products could be bought and sold using Aindens. !he start-up costs could be low since there aren9t any inventory costs. Cou can create the furnishings as they9re ordered. A business plan would include advertising ideas, marketing ideas, how to deliver the products, customer follow-up ideas, and financial planning. 4. 3isit e4ay on the )eb and see what Se$ond *ife items you $an find listed for au$tion. How would you rate the a$ti%ity surrounding these items" 5re you sur rised by what you see" )hy or why not" 4bviously the information for this :uestion will fluctuate. As of this writing, e1ay offered ,"" items. !hey included how-to manuals for making money on %econd Aife, a guide to selling land, and business opportunities on the site. 4ne item in particular was a vending machine business package available for D-.EE. !he individual offering the item was an e1ay Power %eller with 8,-F6 feedback postings. =e was obviously an established e1ay seller. 4ther items for sale include a >ym Workout package for D-.EE and a macro that makes navigating the skies of %econd Aife easier. t sold for D",.EE. Answers to the last three :uestions will vary by student. !he point is to have them reali&e how advanced and pervasive sites like %econd Aife have become.

6. )hat obsta$les does Se$ond *ife ha%e to o%er$ome in order to be$ome a mainstream business tool" #oes it fa$e fewer or more obsta$les to be$ome a mainstream edu$ational tool" To what do you attribute the differen$e" %econd Aife needs to overcome the idea and perception that it9s ?0ust another game site.@ 4ther obstacles include ease-of-use, interoperability between pre-established business systems and %econd Aife9s proprietary system. t needs to create ways to import and e+port data between its system and e+ternal business systemsGdon9t re:uire data to be re-input into either system. %econd Aife faces more obstacles in trying to become a mainstream educational tool. Educators are inherently opposed to online, distance education because it supposedly lacks the face-to-face communication between teachers and students. =owever, as more education is carried online, %econd Aife has all the tools in place to make it easy to conduct classes, especially its online collaboration tools. 7. )ould you like to inter%iew for a &ob using Se$ond *ife" )hy or why not" 4bviously the answers to this :uestion will vary from student to student. %ome may prefer interviewing for a 0ob using %econd Aife since they may see face-to-face interviews as e+tremely nerve-wracking. 4ther may prefer a face-to-face interview rather than trying to create an avatar that ade:uately represents them. 8. Is Se$ond *ife a re$ursor of how business will be $ondu$ted in the future or a $or orate e+ eriment" 9ustify your answer. %econd Aife probably is a precursor of how business will be conducted in the future. 4nline presence and activity is increasing, not decreasing. 1usinesses are continually turning to online services to change the way they do business and move many of their offline activities to online ventures.