1. In traditional system life cycle, feasibility study is an essential part of it.

Describe the
various types of feasibility study.
Answer
Feasibility studies refers to the preliminary studies that investigate the information needs,
objectives, resource require and availability, constraints, cost, benefit as well as the feasibility of
the proposed information system. Below are some of the various types of feasibility studies
i. Technical feasibility assesses the current resources (such as hardware and software)
and technology, which are required to accomplish user requirements in the software of
the proposed information system within the allocated time and budget. For this reason,
the software development team ascertains whether the current resources and
technology can be upgraded or added in the software to accomplish specified user
requirements or develop the proposed system. Technical feasibility also performs the
following tasks.
 Analyzes the technical skills and capabilities of the software development team
members
 Determines whether the relevant technology is stable and established for the
development of the proposed system.
 Ascertains that the technology chosen for software development has a large number
of users so that they can be consulted when problems arise or improvements are
required.

ii. Operational feasibility assesses the willingness and ability of users and management
to operate, use, and support the proposed team as well as the extent to which the
required software performs a series of steps to solve business problems and user
requirements. This feasibility is dependent on human resources and involves
visualizing whether the software will operate after it is developed and be operative once
it is installed. Operational feasibility also performs the following tasks.
 Determines whether the problems anticipated in user requirements are of high priority
 Determines whether the solution suggested by the software development team is
acceptable
 Analyzes whether users will adapt to a new software
 Determines whether the organization is satisfied by the alternative solutions proposed by
the software development team.

iii. Economic feasibility determines whether the required software is capable of

generating financial gains for an organization. It involves the cost incurred on the
software development team, estimated cost of hardware and software, cost of
performing feasibility study, and so on. For this, it is essential to consider expenses
made on purchases (such as hardware purchase) and activities required to carry out
software development. In addition, it is necessary to consider the benefits that can be
achieved by developing the software. It considers also whether the firm has the needed
sources to be able to develop the proposed system. Software is said to be economically
feasible if it focuses on the issues listed below.
  Cost incurred on software development to produce long-term gains for an organization
 Cost required to conduct full software investigation (such as requirements elicitation and
requirements analysis)
 Cost of hardware, software, development team, and training.
iv. Organizational feasibility investigates how well the proposed information system
supports the objectives of the organization’s strategic plan for information system
It focuses on the following purpose
 Is conducted to determine whether a proposed business has sufficient management
expertise, organizational competence, and resources to successfully launch a business.
 Focuses on non-financial resources.

2. How will you convert an old system to a new system developed?

Ans:
i. The Parallel Strategy
In a parallel strategy both the old system and its potential replacement are run together for a time until
everyone is assured that the new one functions correctly. This is the safest conversion approach
because, in the event of errors or processing disruptions, the old system can still be used as a backup.
However, this approach is very expensive, and additional staff or resources may be required to run the
extra system.
ii. The Direct Cutover Strategy
The direct cutover strategy replaces the old system entirely with the new system becomes
operational on an appointed day. It is a very risky approach that can potentially be more costly
than running two systems in parallel if serious problems with the new system are found. There is
no other system to fall back on. Dislocations, disruptions and the cause of correction maybe
enormous
ii. The Pilot Approach Strategy
The pilot study strategy introduces the new system to only a limited area of the organization, such
as a single department or operating unit. When this pilot version is complete and working
smoothly, it is installed throughout the rest of the organization either simultaneously or in stages.
It is a combination of the direct cutover and parallel operation method. It is reduced the risk of the
failure of the system compare to the direct cut over. Operating both the system on the pilot basis
is less expensive than the parallel operation. But it is an expensive than the direct cutover method.

iii. The Phased Approach Strategy

The phased approach strategy introduces the new system in stages, either by functions or by
organizational units. If, for example, the system is introduced by functions, a new payroll system
might begin with hourly workers who are paid weekly, followed six months later by adding
salaried employees (who are paid monthly) to the system. If the system is introduced by
organizational units, corporate headquarters might be converted first, followed by outlying
operating units four months later.

3. Discuss Michael Porter’s five forces for competitive advantage

answer
i. Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is
driven by the: number of suppliers of each essential input; uniqueness of their product or service;
relative size and strength of the supplier; and cost of switching from one supplier to another.

ii. Buyer power. An assessment of how easy it is for buyers to drive prices down. This is driven
by the: number of buyers in the market; importance of each individual buyer to the organization
and cost to the buyer of switching from one supplier to another. If a business has just a few
powerful buyers, they are often able to dictate terms.

iii. Competitive rivalry. The main driver is the number and capability of competitors in the
market. Many competitors, offering undifferentiated products and services, will reduce market
attractiveness.

iv. Threat of substitution. Where close substitute products exist in a market, it increases the
likelihood of customers switching to alternatives in response to price increases. This reduces
both the power of suppliers and the attractiveness of the market.

v. Threat of new entry. Profitable markets attract new entrants, which erodes profitability.
Unless incumbents have strong and durable barriers to entry, for example, patents, economies of
scale, capital requirements or government policies, then profitability will decline to a competitive
rate.

4. There are three (3) main activities in an information system which provide the
information needed for decision making, outline and explain them

 input involves capturing and assembling elements that enters the system to be processed.
The raw materials such text, video, pictures etc, energy, data and human effort must be
secured and organized for processing.
  Processing involves transformation processes that converts input into output. These
include the manufacturing processes, the human breathing process or mathematical
calculations
 Output involves transferring elements that have been produced by a transformation
process to their final destination. For instance finished product, human service, and
management information must be transmitted to their appropriate end user.

4. Discuss the three (3) dimensions of information systems.

i. Organization
The key elements of an organization are its people, structure, business processes,
politics, and culture. An organization coordinates work through a structured
hierarchy and formal standard operating procedures. Managerial, professional,
and technical employees form the upper levels of the organization's hierarchy
while lower levels consist of operational personnel.

 Senior management make long -tern strategic decisions about products

and services as well as ensures financial performance of the firm.
 Middle management carries out the programs and plans of senior
management.
 Operational management is responsible for monitoring the daily
activities of the business.
 Knowledge workers design products or services and create new
knowledge for the firm.
 Production and service workers actually produce the product and
delivers the service.
 Data workers assist with scheduling and communications at all level of
the firm.
The major functions performed by business organization include:
  Sales and marketing which sells the organization’s product and
services to the customers
 Manufacturing and production produces products and service for
its customers.
 Finance takes charge of managing the firm’s financial records and
accounting for the flow of function.
 Human resources take charge of attracting, developing and
maintaining the firm’s labour force as well as employee records.

ii. Information Technology

Information systems are also a key component in the ability of management to make
sense of the challenges facing a company and in management's ability to create new
products and services, manage the company, and even re-create the organization from
time to time.

Information technology is one of the many tools used by management to cope with
change. A firm's information technology(IT) infrastructure is a technology platform
or foundation on which a firm can build its information systems. IT infrastructure
consists of:

 Computer hardware: The physical equipment and computing devices used

for input, storage, processing, output, and telecommunications
 Computer software: The detailed, preprogrammed instructions that control
and coordinate the computer hardware components
 Data management software: The software governing the organization of
data on physical storage media
 Networking and telecommunications technology: Hardware and
software used to link the various pieces of hardware and transfer data from
one physical location to another; a computer network links two or more
computers together to share data, such as files, images, sounds, video, or
share resources, such as a printer.

iii. Management
Management responsibility is to make sense out of the many situations faced by
organizations. They make decisions, formulates action plans to solve the organizational
problems, allocate financial resources to coordinate the activities of work and achieve
success. The managers perceived business challenges and design a set of strategies for
responding to those challenges. The create new product and services and even re-create
the organization from time to time. Information technology plays an influential role by
in helping managers design and deliver new products and services as well as
redesigning and redirecting their organizations.