Q 1 (a) Just providing a computer and Internet connection may not be

enough. What other help does a developing country need to close the digital
gap with wealthier nations?

Answer

1. A digital divide is an economic inequality between groups, broadly construed,
in terms of access to, use of, or knowledge of information and communication
technologies. The divide between countries is referred to as the global digital divide,
i.e. the gap between developing and developed countries. Access to information and
communications technologies (ICT) meets significant challenges that stem from
income restrictions.

2. Overcoming the digital divide.

(a) Lower the costs of ICT, use of low cost technologies and shared
access through Telecentres.

(b) Public awareness of information technology and computer
literacy. Using Internet for mass education purposes and for reaching
isolated and rural communities, and community access centers mobile
Internet units, Internet cafes, email kiosks, Internet posts are now increasingly
being used for distance learning purposes.

(c) The United Nations is raising awareness of the divide by setting up the
Information and Communications Technology (ICT) Task Force.

(d) Use of Social Media Websites. such as Facebook and Myspace or
Word Press and Tumblr serve as both manifestations of and means by which
to combat the digital divide.

(e) NGOs Involvement. Community Informatics (CI) an NGO
focusses on issues of "use" rather than simply "access". It is ensuring that the
opportunity is not only for ICT access at the community level but also, the
means for the "effective use" of ICTs for community betterment and
empowerment are available. Close the Gap an NGO collects
decommissioned computers from companies and provides them to
developing countries. It also builds partnerships with organisations worldwide
in order to deliver comprehensive software and hardware solutions to its
recipients.

(f) Investment In The Expansion Of Telecommunication Networks.
Reducing state monopolies in this sector and liberalizing the
telecommunications market. Access to telecommunications technologies,
including the Internet, is a significant step in bridging the digital divide. They
can create powerful social and economic networks, which in turn provide the
basis for major advances in development.

(g) Development of Software Applications in Native Language. 63.5%

of global Internet users are from non-English speaking regions, reflecting the
reality that 92% of the world's populations are not native English speakers.
Lack of development of software applications relevant to developing
countries, deters national populations from accessing the Internet, and
engaging in e-commerce, education and training.

(h) Improvements in Communication Systems, Particularly of Mobile
Networks. The Internet offers developing countries enhanced opportunities
for accelerated integration into the global economy. Improvements in
communication systems, particularly of mobile networks, to access new
markets and reduce administration costs, while avoiding the traditional
limitations of restricted access to information, high market-entry costs, and
isolation from their potential markets.

(i) Training and Skills Development. Focus on high technology,
investing in human resources through training and skills development, and
implementing national policies and laws that establish intellectual property
protection for its domestic and international endeavors. Developing countries
need to "unleash" the creativity and intellectual capacity of their people.

Q 1 (b) How can knowledge be considered a competitive advantage?
What kind of knowledge provides an advantage?

Answer

1. Knowledge : A Competitive Advantage. Business organizations are coming
to view knowledge as their most valuable and strategic resource, and bringing that
knowledge to bear on problems and opportunities as their most important capability.
They are realizing that to remain competitive they must explicitly manage their
intellectual resources and capabilities. To this end, many organizations have initiated
a range of knowledge management projects and programs. All businesses have
access to an extensive pool of knowledge - whether this is their understanding of
customers' needs and the business environment or the skills and experience of staff.
The way a business gathers shares and exploits this knowledge can be central to its
ability to develop successfully. The types of knowledge that provides advantage is
given as under:-

(a) The Skills and Experience of Employees. Having staff who are
knowledgeable can be invaluable in setting you apart from competitors.

(b) Storage. Files of documents (whether held digitally, on paper or
both).

(c) Perspective Planning. For future activities, such as ideas for new
products or services. The challenge is harnessing this knowledge in a
coherent and productive way.

(d) Market knowledge. watch developments in your sector. How are your
competitors performing? How much are they charging? Are there any new
entrants to the market? Have any significant new products been launched?

(e) Market Research. Can be dovetailed with market knowledge to target
particular customers with specific types of product or service.

(f) Customer knowledge. Understanding of what customers want,
combined with employees' know-how, can be regarded as knowledge base.
Using this knowledge in the right way can help you run the business more
efficiently, decrease business risks and exploit opportunities to the full. This is
known as the knowledge advantage.

(g) Employee and Supplier Relationships. seek the opinions of your
employees and your suppliers - they'll have their own impressions of how
you're performing. You can use formal surveys to gather this knowledge or
ask for their views on a more informal basis.

(h) Knowledge of The Business Environment. A business can be
affected by numerous outside factors. Developments in politics, the economy,
technology, society and the environment could all affect your business'
development, so you need to keep yourself informed. You could consider
setting up a team of employees to monitor and report on changes in the
business world.

(i) Professional associations and trade bodies - their publications,
academic publications, government publications, reports from research
bodies, trade and technical magazines.

(j) Trade Exhibitions and Conferences. These can provide an easy way
of finding out what the competitors are doing and to see the latest innovations
in your sector.

(k) Product Research and Development. Scientific and technical
research and development can be a vital source of knowledge that can help to
create innovative new products - retaining the competitive edge.

(l) Organisational Memory. be careful not to lose the skills or experience
your business has built up. You need to find formal ways of sharing your
employees' knowledge about the best ways of doing things. For example, you
might create procedural guidance based on your employees' best practice.
See the page in this guide: create a knowledge strategy for your business.

(m) Non-Executive Directors. these can be a good way for you to bring
on board specialised industry experience and benefit from ready-made
contracts.

Q 1 (c) How can a firm protect its knowledge and keep it from
competitors?

Answer

1. Ownership/Control of Intellectual Property. As part of knowledge
management, it should be ensured that any intellectual property that a business
holds is protected. This means that one has the right to stop competitors from
copying it - and also allows a firm to profit by licensing its business knowledge. There
are a number of steps an organisation can take to manage and protect their
knowledge capital. These range from the implementation of basic, practical systems
and procedures to more technical, legal measures. A few measures are given as
under:-

(a) Data protection. Protecting and exploiting knowledge base by
developing efficient systems for storing and retrieving information.

(b) Data encryption

(c) Non-Disclosure Agreements/Confidentiality Clauses. Keep
knowledge confidential. A firms employment policies play a central role in
this. Staff should sign non-disclosure agreements (also known as
confidentiality agreements) when they join the business as this ensures that
they understand the importance of confidentiality from day one. Employment
contracts can be written to reasonably limit the employees' freedom to quit
and work immediately for one of your rivals (restraint of trade clauses) or set
up a competing business to yours in the vicinity (restrictive covenants).

(d) Restraints of Trade. Restraints of trade limit the post-employment
activities of a worker.

(e) Garden Leave. Restricting a departing employees activities by having
an extended notice period (say 3 months) and to put them on garden leave
during that period before the employment ends.

Q 1(e) What is core competence? How is core competence related to the
resource-based model or strategy?

Answer

1. A core competency is a concept in management theory. A core competency is
a specific factor that a business sees as central to the way the company or its
employees work. It fulfills three key criteria:-

(a) It is not easy for competitors to imitate.
(b) It can be reused widely for many products and markets.

(c) It must contribute to the end consumer's experienced benefits and the
value of the product or service to its customers.

2. A core competency can take various forms, including technical/subject matter
knowhow, a reliable process and/or close relationships with customers and

suppliers.[1] It may also include product development or culture, such as employee

dedication, best Human Resource Management (HRM), good market coverage, etc.

3. Core competencies are particular strengths relative to other organizations in
the industry, which provide the fundamental basis for the provision of added value.
Core competencies reflect the collective learning of an organization and involve
coordinating diverse production skills and integrating multiple streams of
technologies. It includes communication, involvement and a deep commitment to
working across organizational boundaries.[vague] Few companies are likely to build
world leadership in more than five or six fundamental competencies.

4. Resource Based Modeling. In the resource-based view, the resources and
capabilities of an organization are seen as the leverage for developing the core
competencies, which are the key to create and sustain its competitive advantage. To
quote an old sage: "No measurement, no management." Measuring the core
competencies of service businesses is vital to the competitive advantages of
organizations around the world. Resource Based Modeling is used to measure and
improve the core competencies of service businesses, with various indexes of the
resources and capabilities.


SECTION-B


Q 2. Write short notes on:

(a) Operating System. Operating System is software that works as an
interface between a user and the computer hardware. The primary objective
of an operating system is to make computer system convenient to use and to
utilize computer hardware in an efficient manner. The operating system
performs the basic tasks such as receiving input from the keyboard,
processing instructions and sending output to the screen. Operating systems
can be classified as follows:-

(i) Multi-User. Allows two or more users to run programs at the
same time. Some operating systems permit hundreds or even
thousands of concurrent users.

(ii) Multiprocessing. Supports the running of a program on more
than one CPU.

(iii) Multitasking. Allows more than one program to run
concurrently.

(iv) Multithreading. Allows different parts of a single program to run
concurrently.

(v) Real Time. Responds to input instantly. General-purpose

(b) Databases. A database is an organized collection of data. The data

are typically organized to model relevant aspects of reality in a way that
supports processes requiring this information. Formally, the term "database"
refers to the data itself and supporting data structures. Databases are created
to operate large quantities of information by inputting, storing, retrieving, and
managing that information. Databases are set up so that one set of software
programs provides all users with access to all the data. A general-purpose
database management system (DBMS) is a software system designed to
allow the definition, creation, querying, update, and administration of
databases. Well-known DBMSs include MySQL, Postgre SQL, SQLite,
Microsoft SQL Server, Microsoft Access, Oracle, SAP, dBASE, FoxPro, IBM
DB2, Libre Office Base and FileMaker Pro. A database is not generally
portable across different DBMS, but different DBMSs can inter-operate by
using standards such as SQL and ODBC or J DBC to allow a single
application to work with more than one database.

(c) Different kinds of Auctions. There are six different basic types
of online auctions:-

(i) English auction. In live terms, English auctions are where
bids are announced by either an auctioneer or by the bidders and
winners pay what they bid to receive the object. English auctions are
claimed to be the most common form of third-party on-line auction
format used and is deemed to appear the most simplistic of all the
forms. The common operational method of the format is that it is an
ascending bid auction in which bids are open for all to see. The winner
is the highest bidder and the price is the highest bid. The popularity of
the English auction is due to the fact that it uses a mechanism that
people find familiar and intuitive and therefore reduces transaction
costs. It also transcends the boundaries of a traditional English auction
where physical presence is required by the bidders, making it
increasingly popular even though there is a susceptibility to various
forms of cheating.

(ii) Dutch auctions, Dutch auctions are the reverse of English
auctions whereby the price begins high and is systematically lowered
until a buyer accepts the price. Sites that offer Dutch auction services
are usually misleading and the term 'Dutch' tends to have become
common usage for the use of a uniform-price rule in a single unit
auction as opposed to how it is originally intended for that of a declining
price auction. However, with actual on-line Dutch auctions where the
price is descending, it was found that auctions have on average a 30%
higher ending price than first-price auctions with speculation pointing to
bidder impatience or the effect of endogenous entry on the Dutch
auction.

(iii) First-price sealed-bid. First-price sealed-bid auctions are
when a single bid is made by all bidding parties and the single highest
bidder wins, and pays what they bid. The main difference between this

and English auctions is that bids are not openly viewable or announced
as apposed to the competitive nature which is generated by public
bids. From the game-theoretic point of view, the first-price sealed-bid
auction is strategically equivalent to the Dutch auction; that is, in both
auctions the players will be using the same bidding strategies.

(iv) Vickrey Auction. A Vickrey auction, sometimes known as
a Second-price sealed-bid auction, uses very much the same principle
as a first-price sealed bid. However, the highest bidder and winner will
only pay what the second highest bidder had bid. Online auctions
where bidders utilize a proxy bidding system is a close resemblance to
that of a Vickrey design for single item auctions, however due to the
fact that the bidder is able to change their bid at a later date means it is
not a true representation of the Vickrey auction. The Vickrey auction is
suggested to prevent the incentive for buyers to bid strategically, due to
the fact it requires them to speak the truth by giving their true value of
the item.

(v) Reverse auction. Reverse auctions are where the roles of
buyer and seller are reversed. Multiple sellers compete to obtain the
buyer's business and prices typically decrease over time as new offers
are made. They do not follow the typical auction format in that the
buyer can see all the offers and may choose which they would prefer.
Reverse auctions are used predominantly in a business context for
Procurement. The term reverse auction is often confused with Unique
bid auctions, which are more akin to traditional auctions as there is only
one seller and multiple buyers. However, they follow a similar price
reduction concept except the lowest unique bid always wins, and each
bid is confidential.

(vi) Bidding fee auction. A Bidding fee auction (also known as
a penny auction) requires customers to pay for bids, which they can
increment an auction price one unit of currency at a time. On English
auctions for example, the price goes up in 1 pence (0.01 GBP)
increments. There has been criticism that compares this type of auction
to gambling, as users can spend a considerable amount of money
without receiving anything in return (other than the spent bids trying to
acquire the item). The auction owner (typically the owner of the
website) makes money in two ways, the purchasing of bids and the
actual amount made from the final cost of the item.

(d) Organizational Transformations with IT. Organizational change
is about changing the way of doing business in some way. Transforming the
organization refers to any significant change made to an organization such as,
restructuring an organization or reengineering an organization and/or there is
a significant change in the way business is done. The question is, of course,
what is significant relative to a given organization. Successful uses of
information technology (IT) involve substantial changes in business
processes, organizational structure, worker skills, product innovation and

services delivered. Computers have made a contribution to business

performance and economic growth that is not only large, but also
disproportionate to the size of computer hardware investment alone.
Following advantages are accrued by successful use of IT:-

(i) The most important benefits of using IT are convenience,
customer service, quality, and variety.

(ii) The output contributions of IT exceed their measured input
shares. This due to the existence of unmeasured complementary
inputs which include substantial changes in specific business
processes and worker skills.

(iii) Organisational transformation using IT involves employing a
cluster of practices involving skilled workers, delegated decision-
making and team-based production leading to large profits.

(iv) Firms which combine IT investments with organizational
changes appear to have higher productivity levels and stock market
valuations than firms which invest in IT without the corresponding
organizational changes or vice versa.

(e) Components of a Computer. Hardware components are often
categorised as being either input, output, storage or processing components.
Devices which are not an integral part of the CPU are referred to as being
peripherals. Peripherals are usually used for either input, storage or output
(such as a hard disk, keyboard or printer). A device does not necessarily have
to be outside the same physical box as the CPU. The best example of this is
the hard disk, which is a peripheral even though it is not usually housed within
the main case.

Fig 1: The main hardware components of a computer system

Input devices are hardware devices which take information from the user of
the computer system, convert it into electrical signals and transmit it to the
processor. The primary function of input devices is to allow humans to interact
with the computer system. For instance a mouse allows the user to control the
movement of the pointer (a common element in user interface design).

Output devices take data from the computer system and convert it to a form
that can be interpreted by humans. For instance a monitor creates a visual
electronic display to output information created by the processor to the user.

Processing devices are the components responsible for the processing of
information within the computer system. This includes devices such as the
CPU, memory and motherboard.

Storage devices are components which allow data to be stored within a
computer system. This includes devices such as hard disk drives
and compact disk drives.