Impacts ### Challenges Posed by Strategic Information

### Economic Impacts Systems

Strategic information systems (SIS) are critical for

Information technology (IT) alters the relative costs of capital
gaining competitive advantages, but they pose several
and information. IT acts as a production factor that can challenges:
replace traditional capital and labor. As IT costs decrease, it1. **Alignment with Business Goals:**
substitutes for labor, traditionally a rising cost, leading to a - Ensuring SIS align with overall business strategies is
crucial but challenging due to the dynamic nature of
reduction in middle managers and clerical workers (Laudon, both IT and business environments.
1990). IT also replaces other expensive capital forms, such as 2. **Security Risks:**
buildings and machinery, prompting increased investments in - Strategic systems often handle sensitive data,
IT over time. making them targets for cyber-attacks. Protecting this
information is paramount.
3. **High Costs and Resource Allocation:**
IT reduces transaction costs, the expenses involved in market - Developing and maintaining SIS can be expensive,
transactions, making firms contract in size. According to requiring significant financial and human resources.
transaction cost theory, firms economize on transaction 4. **Change Management:**
costs, traditionally mitigated by vertical integration. IT, - Implementing SIS often necessitates changes in
especially through networks, lowers market participation business processes, which can face resistance from
employees.
costs, encouraging firms to outsource rather than internalize 5. **Data Management:**
functions. For example, Chrysler sources over 70% of its parts - Integrating, managing, and analyzing large volumes
externally due to IT efficiencies. of data from various sources can be complex.

As transaction costs decline, firm size (employee numbers) 6. **Scalability and Flexibility:**
- Ensuring SIS can scale with business growth and
shrinks, even as revenues grow. For instance, Eastman adapt to new technological developments is a
Chemical increased revenue from $3.3 billion with 24,000 persistent challenge.
employees in 1994 to over $5 billion with only 10,000
employees in 2009. IT also reduces internal management 7. **Interoperability:**
costs. Agency theory views firms as collections of contracts - SIS need to work seamlessly with existing systems
and across different departments and external
needing supervision. IT lowers these supervision costs, partners.
allowing managers to oversee more employees efficiently
and reducing the need for middle managers and clerical 8. **Regulatory Compliance:**
workers. Consequently, firms can increase revenues while - Navigating and adhering to industry-specific
reducing management layers. regulations and data protection laws can be complex
and burdensome.
### Organizational and Behavioral Impacts 9. **Innovation and Upgradation:**
- Keeping SIS up-to-date with the latest technological
Sociological theories on complex organizations explain advancements to maintain competitive edge requires
changes due to new IT applications. continuous innovation.

### Addressing the Challenge

**IT Flattens Organizations:** 1. **Strategic Alignment:**
Large, pre-computer-age bureaucratic organizations are - Conduct regular reviews to ensure SIS objectives
often inefficient and slow to adapt. Many have downsized, align with business goals. Involve both IT and business
reducing employee numbers and organizational layers. leaders in planning and decision-making.
2. **Enhanced Security Measures:**
Behavioral researchers suggest IT flattens hierarchies by - Implement robust cybersecurity protocols, including
distributing information broadly, empowering lower-level encryption, multi-factor authentication, and regular
employees and enhancing management efficiency. IT shifts security audits. Train employees on best security
decision-making to lower levels by providing necessary practices.
information, reducing the need for supervision. Improved 3. **Cost Management and ROI Analysis:**
- Perform cost-benefit analyses to prioritize
education levels among employees also facilitate this investments. Explore flexible financing options like
empowerment. As managers receive timely, accurate cloud solutions to manage costs.
information, decision-making speeds up, reducing the 4. **Effective Change Management:**
number of managers needed and lowering management - Develop a comprehensive change management
costs relative to revenues. plan. Communicate the benefits of SIS to employees
and provide training and support to facilitate adoption.
t
Porter’s Competitive Forces Model helps companies develop How do information systems uses synergies, core
competitive strategies using information systems (IS) by competencies and network based strategies to achieve
analyzing the key forces that shape competition within an competitive advantages?
industry. This model identifies five forces that influence Information systems help achieve competitive
competitive intensity and attractiveness, and it guides advantages through synergies, core competencies, and
businesses in leveraging IS to create strategic advantages. network-based strategies in the following ways:
Here’s how the model can be applied:
Synergies: Information systems can integrate and
1. Threat of New Entrants: IS can create barriers to entry by coordinate different business units, allowing them to
enabling economies of scale and lowering operational costs share information and resources efficiently. This
through automation and optimization. Companies can use integration can lead to cost savings, improved
customer relationship management (CRM) systems to performance, and better decision-making. For example,
enhance customer satisfaction and loyalty, making it harder a company with multiple divisions can use a centralized
for new entrants to attract customers. IS can help firms information system to manage inventory, finances, and
comply with industry regulations more efficiently, creating customer data, leading to more efficient operations and
another hurdle for new entrants. enhanced overall performance.
2. Bargaining Power of Suppliers: IS can facilitate better Core Competencies: Information systems enable
integration with suppliers through supply chain management companies to leverage their unique strengths and
(SCM) systems, improving coordination and reducing costs. capabilities more effectively. By automating routine
Information systems can help identify and evaluate tasks and providing tools for data analysis and decision
alternative suppliers globally, reducing dependency on any support, information systems free up resources for
single supplier. Data analytics can provide insights into focusing on core activities. This helps companies
supplier performance and market conditions, strengthening innovate, improve product quality, and deliver superior
the company’s position in negotiations. customer service. For instance, a firm specializing in
3. Bargaining Power of Buyers: IS enables mass advanced manufacturing can use information systems
customization and personalization of products and services, to optimize production processes and ensure high-
increasing customer satisfaction and reducing buyer power. quality output.
CRM systems can improve customer service and support,
fostering stronger relationships and increasing switching Network-Based Strategies: Information systems
costs for buyers. Business intelligence (BI) tools can analyze facilitate the creation and management of networks,
customer data to better understand customer needs and such as supply chains, customer relationships, and
preferences, allowing companies to tailor their offerings partnerships. These networks enhance collaboration,
effectively. increase market reach, and enable faster responses to
4. Threat of Substitute Products or Services: IS supports the market changes. For example, e-commerce platforms
development of new products and services, helping use information systems to connect buyers and sellers
companies innovate and differentiate themselves from globally, providing a competitive advantage through a
substitutes. Continuous monitoring and feedback systems vast and efficient marketplace. Social media and
can enhance product quality, making substitutes less customer relationship management systems help build
attractive. IS can streamline operations and reduce costs, and maintain strong customer networks, leading to
allowing firms to offer competitive pricing against increased loyalty and repeat business.
substitutes.
5. Rivalry Among Existing Competitors: Enterprise resource By using information systems to create synergies,
planning (ERP) systems can optimize business processes, enhance core competencies, and develop network-
reducing costs and improving efficiency to better compete based strategies, companies can achieve significant
on price. Competitive intelligence systems can track competitive advantages in their respective markets.
competitors’ actions and market trends, enabling proactive
and informed strategic decisions. Digital marketing and social
media platforms allow for more effective engagement with
customers, fostering brand loyalty and differentiation.
Examples of IS Applications in Competitive Strategies: Cost
Leadership: Use of robotics and automation systems to
reduce labor costs. Implementing data analytics to optimize
supply chain and inventory management, reducing waste
and costs.
Differentiation: Leveraging IS for research and development
to create unique products. Using virtual reality (VR) and
augmented reality (AR) to enhance the customer experience.
Focus Strategy: Utilizing BI tools to identify niche markets
and tailor products/services to these segments. Employing
precision marketing techniques based on detailed customer
data. opportunities, and enhance their market position.
 Platform as a Service (PaaS): Provides a platform and
ERAS environment for developers to build, deploy, and
The eras in IT infrastructure evolution and their distinguishing manage applications without dealing with the
characteristics are: underlying infrastructure. PaaS includes development
tools, databases, middleware, and operating systems.
1. Mainframe Era (1950s-1970s): Characterized by large, Examples include Google App Engine, Microsoft Azure
centralized computers that handled all processing tasks. App Services, and Heroku.
Mainframes were expensive, required specialized
environments, and were operated by skilled personnel. They Software as a Service (SaaS): Delivers software
were used primarily by large organizations for batch applications over the internet on a subscription basis.
processing and critical applications. Users can access these applications via web browsers
without needing to install or maintain them locally.
2. Minicomputer Era (1960s-1980s): Marked by smaller, less SaaS covers a wide range of applications, including
expensive computers compared to mainframes, making email, customer relationship management (CRM), and
computing accessible to smaller organizations and office productivity tools. Examples include Google
departments within larger companies. Minicomputers Workspace, Microsoft Office 365, and Salesforce.
supported time-sharing and interactive computing.
Storage as a Service (StaaS): Provides scalable and
3. Personal Computer (PC) Era (1980s-present): Defined by the secure cloud storage solutions for data backup,
proliferation of personal computers that brought computing archiving, and disaster recovery. Users can store and
power to individuals and small businesses. PCs were access their data over the internet, paying only for the
affordable, user-friendly, and supported a wide range of storage they use. Examples include Amazon S3, Google
applications, leading to decentralized computing. Cloud Storage, and Microsoft Azure Blob Storage.
4. Client/Server Era (1980s-2000s): Involved networked Database as a Service (DBaaS): Offers database
computers where servers provided resources and services to management systems that are hosted and managed by
client machines. This architecture allowed for more efficient cloud providers. This service allows users to set up,
resource sharing and distributed computing, supporting operate, and scale databases without dealing with
enterprise applications and databases. physical hardware or database administration tasks.
Examples include Amazon RDS, Google Cloud SQL, and
5. Enterprise Internet Era (1990s-present): Characterized by Microsoft Azure SQL Database.
widespread use of the Internet for communication and
commerce. Organizations leveraged web technologies for Functions as a Service (FaaS): Also known as serverless
internal operations (intranets) and external interactions computing, this service allows users to execute code in
(extranets), enabling e-commerce and global connectivity. response to events without provisioning or managing
servers. Users pay only for the compute time
6. Cloud Computing Era (2000s-present): Marked by the shift consumed by their code. Examples include AWS
to cloud-based services, where computing resources, storage, Lambda, Google Cloud Functions, and Microsoft Azure
and applications are delivered over the Internet. Cloud Functions.
computing offers scalability, flexibility, and cost-efficiency,
allowing organizations to outsource their IT infrastructure. These cloud computing services enable organizations
to reduce IT costs, increase scalability, improve
7. Mobile Computing Era (2010s-present): Defined by the accessibility, and focus on core business activities by
widespread use of smartphones, tablets, and other mobile outsourcing their IT infrastructure and services to cloud
devices. Mobile computing supports ubiquitous access to providers.
information and services, enabling remote work, real-time
communication, and mobile applications. Advantages of Grid Computing:
- Enhanced Processing Power: Grid computing
Each era represents a significant shift in how computing harnesses the combined processing power of multiple
resources are deployed, managed, and utilized, reflecting computers, enabling complex computations and data
advancements in technology and changes in organizational processing tasks to be completed more quickly.
needs. - Cost Efficiency: By utilizing existing resources across
multiple machines, organizations can achieve cost
Cloud computing provides several major types of services, savings compared to investing in dedicated high-
including: performance hardware.
- Improved Resource Utilization: Grid computing
1. Infrastructure as a Service (IaaS): Offers virtualized optimizes resource allocation by distributing tasks
computing resources over the internet, such as virtual across available machines, maximizing utilization and
machines, storage, and networks. Users can rent these reducing idle time.
resources on a pay-as-you-go basis, allowing for scalable - Scalability: Grid systems can easily scale up or down
and flexible IT infrastructure without the need for physical to accommodate changing workload demands,
hardware. Examples include Amazon Web Services (AWS) ensuring efficient resource allocation.
EC2, Google Compute Engine, and Microsoft Azure. - Increased Reliability: Grid computing enhances fault
tolerance and reliability by distributing tasks across
multiple nodes, reducing the risk of system failures.
Disadvantages of Grid Computing: Explain challenges to intellectual property rights

Complexity: Implementing and managing a grid computing Challenges to intellectual property rights stem from
infrastructure can be complex and require specialized various factors in today's digital age:
knowledge and skills. 1. Digital Piracy: The ease of replicating and
Security Concerns: Grid computing introduces security distributing digital content over the internet has led
challenges due to the distributed nature of resources and data, to rampant piracy. Movies, music, software, books,
requiring robust security measures to protect against and other digital works are frequently pirated,
unauthorized access and data breaches. resulting in significant financial losses for content
Interoperability Issues: Ensuring compatibility and creators and copyright holders.
interoperability between different hardware and software 2. File Sharing and Peer-to-Peer Networks: Peer-to-
components in a grid environment can be challenging. peer (P2P) networks allow users to share files directly
Performance Bottlenecks: Network latency and bandwidth with each other without central control. While P2P
limitations can impact the performance of grid computing technology has legitimate uses, it is often associated
systems, especially for applications that require high-speed data with illegal file sharing and copyright infringement.
transfer or low-latency communication.
Limited Support for Legacy Systems: Grid computing may not be 3. Online Streaming and Sharing Platforms: Platforms
compatible with legacy systems or applications, requiring that allow users to stream or share content, such as
organizations to invest in updates or workarounds to integrate video-sharing websites and social media platforms,
older technology with grid infrastructure. face challenges in preventing the unauthorized
distribution of copyrighted material. Despite efforts
Contemporary information system technology and the internet to implement copyright detection and takedown
pose challenges to the protection of individual privacy and mechanisms, infringing content can still proliferate.
intellectual property due to several factors:
4. Digital Rights Management (DRM) Limitations:
1. Proliferation of Data: Information systems and the internet DRM technologies aim to prevent unauthorized
facilitate the collection, storage, and sharing of vast amounts of copying and distribution of digital content. However,
personal data. This abundance of data increases the risk of DRM systems can be circumvented, leading to
privacy breaches and unauthorized access. debates about the balance between protecting
2. Global Connectivity: The internet enables global connectivity, intellectual property and preserving user rights, such
allowing data to be transmitted across borders with ease. as fair use and interoperability.
Different countries have varying privacy laws and regulations,
making it challenging to enforce consistent protection 5. Cross-Border Enforcement: Intellectual property
measures. infringement often occurs across international
3. Cybersecurity Threats: Information systems and the internet borders, making enforcement challenging.
are susceptible to cybersecurity threats such as hacking, Differences in legal systems, jurisdictional issues, and
malware, phishing, and ransomware attacks. These threats can varying levels of intellectual property protection
compromise both individual privacy and intellectual property among countries further complicate enforcement
rights. efforts.
4. Data Mining and Profiling: Information systems often employ
data mining and profiling techniques to analyze user behavior 6. Emerging Technologies: Advancements in
and preferences. While these practices can enhance user technology, such as 3D printing and artificial
experiences and targeted advertising, they also raise concerns intelligence, present new challenges to intellectual
about invasion of privacy and potential misuse of personal property rights. These technologies enable the
information. replication and creation of physical and digital goods
5. Cloud Computing: Cloud computing services store data on with unprecedented ease, raising concerns about
remote servers accessed via the internet. While cloud counterfeiting and infringement.
computing offers scalability and flexibility, it also introduces 7. Legal and Regulatory Issues: Intellectual property
security and privacy risks, as users may have limited control over laws and regulations must evolve to address
their data stored on third-party servers. emerging challenges in the digital environment.
6. Social Media and Online Platforms: Social media platforms However, developing effective legal frameworks that
and online services collect extensive user data for targeted balance the interests of content creators, consumers,
advertising and content personalization. However, the use of and technology providers can be complex and
this data raises privacy concerns, as users may not always be contentious.
aware of how their information is being used or shared.
7. Digital Piracy and Copyright Infringement: The internet Addressng these challenges requires collaboration
enables easy and widespread distribution of digital content, among stakeholders, including governments,
making it challenging to prevent piracy and enforce intellectual technology companies, content creators, and
property rights. Content creators face difficulties in protecting consumers. Efforts to combat intellectual property
their original works from unauthorized reproduction and infringement should focus on promoting legal
distribution. alternatives, enhancing enforcement mechanisms,
Addressing these challenges requires a multifaceted approach raising awareness about intellectual property rights,
involving technological innovations, robust cybersecurity and fostering international cooperation.
measures, effective regulatory frameworks
 Ad-Hoc Querying: BI systems support ad-hoc querying,
List and describe the five steps in an ethical analysis. allowing users to retrieve and analyze data in real-time
based on their specific requirements. Users can create
The five steps in an ethical analysis are: custom queries, filters, and parameters to explore data
and generate insights on the fly.
1. Identify the Ethical Issue: Begin by clearly defining the
ethical issue or dilemma at hand. This involves identifying the OLAP (Online Analytical Processing): BI systems
relevant stakeholders, understanding their interests and incorporate OLAP functionality to analyze
concerns, and determining the specific actions or decisions multidimensional data sets, such as sales data by
that raise ethical questions. product, region, and time period. OLAP tools enable users
to slice, dice, drill down, and pivot data to gain deeper
2. Gather Relevant Information: Collect all relevant facts, data, insights and explore relationships between different
and information related to the ethical issue. This may involve dimensions.
conducting research, consulting relevant sources, and
gathering input from stakeholders affected by the issue. It is Data Mining and Predictive Analytics: BI systems include
essential to ensure that the information gathered is accurate, data mining and predictive analytics capabilities to
complete, and unbiased. identify patterns, correlations, and trends in historical
data and make predictions about future outcomes. These
3. Evaluate Alternative Courses of Action: Consider the various functionalities leverage advanced algorithms and
options or courses of action available to address the ethical statistical techniques to uncover hidden insights and
issue. Evaluate the potential consequences, both positive and forecast business performance.
negative, associated with each alternative. Assess how each
option aligns with ethical principles, values, and standards, Performance Management: BI systems support
such as fairness, honesty, integrity, and respect for human performance management functionalities to monitor and
dignity. track organizational performance against predefined
goals and objectives. Performance management tools
4. Make a Decision and Take Action: Based on the analysis of enable the creation of scorecards, KPI dashboards, and
alternative courses of action, make a decision on how to balanced scorecards to measure progress, identify areas
proceed. Choose the option that is most ethically justified and for improvement, and drive strategic decision-making.
likely to produce the best outcome overall. Consider the
potential impact of the decision on all stakeholders involved By providing these analytic functionalities, BI systems
and take appropriate action to implement the chosen course empower organizations to analyze large volumes of data,
of action. gain actionable insights, and drive informed decision-
making across all levels of the organization.
5. Reflect on the Outcome: After making a decision and taking
action, reflect on the outcome and evaluate its ethical Explore types of knowledge management systems
implications. Assess whether the decision was effective in
addressing the ethical issue and achieving the desired Types of knowledge management systems include:
outcome. Consider what lessons can be learned from the
experience and how similar situations can be handled more 1. Document Management Systems (DMS): Organize,
effectively in the future. store, and retrieve documents and files, facilitating
knowledge sharing and collaboration.
By following these five steps, individuals and organizations 2. Content Management Systems (CMS): Manage digital
can systematically analyze ethical issues, make informed content such as web pages, articles, and multimedia,
decisions, and act in a manner that upholds ethical principles enabling centralized content creation, publishing, and
and values. distribution.
3. Knowledge Repositories: Store and categorize explicit
List and describe the analytic functionalities provided by BI knowledge, such as documents, manuals, and best
systems.[6] practices, for easy access and retrieval by users.
4. Expert Systems: Capture and codify tacit knowledge
Business Intelligence (BI) systems provide several analytic from domain experts, providing automated decision
functionalities to help organizations make data-driven support and problem-solving capabilities.
decisions. Here are six key functionalities: 5. Collaboration Platforms: Facilitate communication,
collaboration, and knowledge sharing among users
Reporting: BI systems offer reporting capabilities to generate through features like discussion forums, wikis, and social
predefined or ad-hoc reports summarizing key performance networking tools.
indicators (KPIs) and other relevant metrics. Reports can be 6. Learning Management Systems (LMS): Deliver,
presented in various formats, such as tables, charts, graphs, manage, and track training and educational content to
and dashboards, to facilitate data visualization and analysis. support continuous learning and skill development within
an organization.
Data Visualization: BI systems enable interactive data
visualization, allowing users to explore and analyze data These systems support different aspects of knowledge
visually. Visualization tools provide intuitive interfaces for management, helping organizations capture, organize,
creating charts, graphs, heatmaps, and other visualizations to disseminate, and leverage knowledge effectively.
uncover insights, trends, and patterns in data.
what are the components of information security and explainBorderless and Global: Bitcoin transactions can be
with example conducted across borders without the need for currency
The components of information security are: conversions or intermediaries, enabling seamless peer-to-
peer transactions on a global scale. This feature facilitates
1. Confidentiality: Ensuring that sensitive information is only financial inclusion and access to banking services for
accessible to authorized users. Example: Encrypting individuals in underserved regions.
confidential emails to prevent unauthorized access.
Lower Transaction Fees: Bitcoin transactions typically
2. Integrity: Safeguarding the accuracy and reliability of data involve lower fees compared to traditional financial
and systems. Example: Implementing checksums to detect andservices, especially for cross-border transactions. This cost-
prevent unauthorized alterations to files. effectiveness makes Bitcoin an attractive alternative for
remittances and international payments.
3. Availability: Ensuring that information and resources are
available and accessible to authorized users when needed. Limited Supply: Bitcoin's monetary policy is deflationary,
Example: Implementing redundant servers to prevent with a predetermined supply cap of 21 million coins. This
downtime and maintain service availability. scarcity feature prevents inflationary pressures and
maintains the purchasing power of Bitcoin over time,
4. Authentication: Verifying the identity of users and ensuring making it a potential hedge against fiat currency
that they are who they claim to be. Example: Using passwords,devaluation.
biometric authentication, or multi-factor authentication to
access a secure system. Overall, Bitcoin offers a decentralized, secure, and efficient
means of conducting financial transactions, providing
5. Authorization: Granting appropriate access rights and individuals with greater financial sovereignty and
permissions to users based on their roles and responsibilities. autonomy. Its innovative features have the potential to
Example: Limiting access to sensitive files or systems to only disrupt traditional financial systems and empower
authorized personnel. individuals worldwide

6. Non-repudiation: Preventing individuals from denying their what is block chain? Explain key elements of block chain?
actions or transactions. Example: Digital signatures on
contracts or documents to ensure accountability and prevent Blockchain is a distributed ledger technology that enables
disputes. secure and transparent record-keeping of transactions
across a network of computers. It consists of a chain of
Bitcoin: blocks, with each block containing a list of transactions and
Bitcoin is a decentralized digital currency that operates on a a reference to the previous block, creating a chronological
peer-to-peer network without the need for intermediaries like and immutable record of all transactions on the network.
banks or governments. It was invented in 2008 by an unknownKey elements of blockchain include:
person or group of people using the pseudonym Satoshi 1. Decentralization: Blockchain operates on a decentralized
Nakamoto. network of computers (nodes), where each node maintains
a copy of the entire blockchain ledger. This decentralization
Key features and benefits of Bitcoin include: ensures that no single entity has control over the network,
1. Decentralization: Bitcoin operates on a decentralized enhancing resilience and preventing single points of failure.
network called the blockchain, which is a distributed ledger 2. Consensus Mechanism: Blockchain uses a consensus
shared among all network participants. This decentralized mechanism to validate and agree on the validity of
nature eliminates the need for a central authority, providing transactions added to the blockchain. Different consensus
greater resilience against censorship and single points of algorithms, such as Proof of Work (PoW) and Proof of Stake
failure. (PoS), ensure that all network participants reach a
2. Security: Bitcoin transactions are secured through consensus on the state of the ledger without the need for a
cryptographic techniques, making it extremely difficult for central authority.
unauthorized parties to manipulate or counterfeit 3. Cryptographic Hashing: Each block in the blockchain
transactions. The blockchain's immutability ensures the contains a cryptographic hash of the previous block, linking
integrity and transparency of transaction history. all blocks together in a tamper-resistant chain. This hashing
3. Anonymity and Privacy: While Bitcoin transactions are mechanism ensures the integrity and immutability of the
recorded on the public blockchain, users can maintain a blockchain, as any attempt to alter a block would require
degree of anonymity by using pseudonymous addresses. This recalculating the hash of all subsequent blocks, making
privacy feature provides individuals with greater control over tampering practically infeasible.
their financial information and reduces the risk of identity 4. Distributed Ledger: The blockchain ledger is distributed across
multiple nodes in the network, with each node maintaining a
theft. copy of the entire ledger. This distributed nature ensures
4. Transparency: Despite being pseudonymous, Bitcoin transparency and redundancy, as the integrity of the ledger is
transactions are transparent and publicly verifiable on the verified by consensus among network participants rather than a
blockchain. This transparency promotes trust and single central authority.
accountability within the Bitcoin ecosystem, as anyone can Overall, blockchain technology provides a secure, transparent,
audit transaction history in real-time. and decentralized framework for recording and verifying
transactions, offering numerous applications across industries
such as finance, supply chain, healthcare, and beyond.
a) Dimensions that influenced the level of project risk Improved Strategic Alignment: Information systems align
include: business processes, goals, and strategies, ensuring
coherence and alignment across the organization, from
1. Project Complexity: The level of complexity inherent in the top management to frontline operations.
project, including the number of tasks, dependencies, and Increased Agility: Information systems enable
interrelationships, influences the risk level. Complex projects organizations to adapt quickly to changing market
are more prone to uncertainties and potential disruptions. conditions, customer demands, and competitive
pressures, enhancing agility and responsiveness.
2. Technical Challenges: The complexity and novelty of the Enhanced Organizational Learning: Information systems
technology or techniques used in the project impact the risk support continuous learning, skill development, and
level. Projects that involve cutting-edge technologies or knowledge management, enabling organizations to
unfamiliar methodologies may face higher technical risks. leverage their intellectual capital and adapt to evolving
business challenges.
3. Stakeholder Involvement: The number and diversity of
stakeholders involved in the project, including clients, end- b) Information system planning is closely intertwined
users, suppliers, and regulatory bodies, influence the risk with business planning, as it aligns IT strategies and
level. Managing conflicting interests and expectations initiatives with overall organizational goals and
among stakeholders adds to project risk. objectives. Here are six aspects of their relationship:
4. Resource Availability: The availability and adequacy of 1. Strategic Alignment: Information system planning
resources, including human resources, funding, equipment, ensures that IT initiatives and investments are aligned
and infrastructure, affect the risk level. Inadequate or with the strategic priorities and objectives of the
misallocated resources can lead to delays, cost overruns, business. By understanding the organization's goals,
and quality issues. challenges, and competitive landscape, IT planners can
develop technology strategies that support business
5. External Factors: External factors such as economic growth and innovation.
conditions, market dynamics, regulatory changes, and
geopolitical events impact project risk. These factors are 2. Needs Assessment: Business planning identifies the
often beyond the control of the project team but can organization's current and future needs, including
significantly affect project outcomes. operational requirements, market demands, and
regulatory compliance. Information system planning
6. Project Duration: The duration of the project, including its involves assessing these needs from an IT perspective to
timeline and schedule constraints, affects the risk level. determine the technology solutions and capabilities
Longer projects are exposed to a higher risk of schedule required to address them effectively.
delays, scope changes, and cost overruns, increasing overall
project risk. 3. Resource Allocation: Business planning involves
budgeting and resource allocation to support key
c) Tangible and intangible benefits of Information Systems initiatives and projects. Information system planning
include: determines the IT resources, investments, and
infrastructure needed to support business operations,
Tangible Benefits: ensuring alignment with budgetary constraints and
1. Cost Reduction: Information systems can streamline strategic priorities.
processes, automate tasks, and optimize resource allocation, 4. Risk Management: Business planning identifies risks
resulting in reduced operational costs. and uncertainties that may impact the organization's
2. Increased Efficiency: Information systems improve success. Information system planning assesses IT risks,
workflow, collaboration, and decision-making, leading to such as cybersecurity threats, technology obsolescence,
higher productivity and operational efficiency. and data breaches, and develops mitigation strategies to
3. Improved Accuracy: Automated data entry, processing, protect critical assets and ensure business continuity.
and analysis minimize errors and inconsistencies, enhancing
data accuracy and reliability. 5. Change Management: Business planning involves
4. Enhanced Customer Service: Information systems enable managing organizational change, including process
personalized interactions, faster response times, and better improvements, organizational restructuring, and cultural
access to information, resulting in improved customer transformation. Information system planning supports
satisfaction and loyalty. change management efforts by implementing technology
5. Competitive Advantage: Information systems provide solutions and systems that enable and facilitate change
access to real-time data, market insights, and strategic initiatives.
analysis, enabling organizations to gain a competitive edge
through innovation, differentiation, and faster time-to- Overall, information system planning and business
market. planning are interconnected processes that work
Intangible Benefits: together to drive organizational success. By aligning IT
1. Better Decision-Making: Information systems provide strategies with business priorities, organizations can
timely and relevant information, analytics, and reporting leverage technology to achieve their goals, enhance
tools, empowering decision-makers with insights and competitiveness, and deliver value to stakeholders.
foresight to make informed decisions.
 i) Virtualization: Virtualization is the process of
List and explain the activities in Knowledge Business Value creating a virtual representation of computing
Chain. resources, such as servers, storage devices, or
networks, to abstract physical hardware and
The Knowledge Business Value Chain consists of the following maximize resource utilization. It enables multiple
activities: virtual instances to run on a single physical server,
allowing for efficient use of computing resources,
1. Knowledge Acquisition: Involves gathering information and flexibility, and scalability. Virtualization enhances IT
knowledge from various internal and external sources, such infrastructure management, reduces hardware costs,
as research, data collection, and market analysis. and facilitates disaster recovery and business
continuity.
2. Knowledge Storage: Refers to organizing and storing
acquired knowledge in accessible and retrievable formats, ii) Consumerization of IT & BYOD: The
such as databases, document repositories, and knowledge consumerization of IT refers to the trend where
bases. consumer technologies, such as smartphones, tablets,
and cloud services, permeate the workplace,
3. Knowledge Sharing: Involves disseminating knowledge influencing IT decision-making and user expectations.
throughout the organization, promoting collaboration, Bring Your Own Device (BYOD) is a related concept
communication, and information exchange among that allows employees to use their personal devices
employees and stakeholders. for work purposes. Both trends pose challenges and
opportunities for organizations, balancing security
4. Knowledge Application: Refers to applying knowledge and concerns with employee flexibility and productivity.
insights to solve problems, make decisions, and innovate BYOD can improve employee satisfaction and mobility
processes, products, and services. but requires robust security measures to protect
corporate data and networks from potential risks.
5. Knowledge Creation: Involves generating new knowledge
through research, experimentation, analysis, and synthesis, List and describe the variables addressed by project
leading to innovation and intellectual property development. management.

6. Knowledge Evaluation: Refers to assessing the quality,

relevance, and effectiveness of knowledge assets and Project management addresses various variables to
activities, ensuring continuous improvement and value ensure successful project execution:
creation.
1. Scope: Defines project objectives, deliverables, and
These activities form a continuous cycle of knowledge boundaries.
management, driving organizational learning, innovation, and
competitive advantage. 2. Time: Involves scheduling tasks, milestones, and
deadlines.
Distinguish between an structured and unstructured
decision. 3. Cost: Budgeting and managing project resources
effectively.
Structured decisions are repetitive, routine decisions with
well-defined procedures and predetermined criteria for 4. Quality: Ensures deliverables meet or exceed
decision-making. These decisions are typically stakeholder expectations.
straightforward and involve known variables, allowing for a
systematic and logical approach to problem-solving. 5. Risk: Identifies, assesses, and manages potential
Examples of structured decisions include inventory project uncertainties.
management, budget allocation, and routine operational
tasks. 6. Resources: Manages human, financial, and material
resources.
Unstructured decisions, on the other hand, are complex, non-
routine decisions characterized by ambiguity, uncertainty, 7. Communication: Facilitates information exchange
and a lack of predefined criteria. These decisions often among stakeholders.
involve novel situations, incomplete information, and
multiple possible outcomes, requiring judgment, intuition, 8. Stakeholders: Engages individuals or groups with an
and creativity from decision-makers. Examples of interest in the project.
unstructured decisions include strategic planning, crisis
management, and new product development. Addressing these variables helps project managers
achieve project goals efficiently and effectively.
In summary, structured decisions are repetitive and routine,
with well-defined procedures and criteria, while unstructured
decisions are complex and non-routine, involving ambiguity
and uncertainty.