Programme Name: ________BCs.(Hons.

)_______________________

Course Code: ___ISYS 2400_______

Course Name: __________Management Information System_____________

Assignment / Lab Sheet / Project / Case Study No: _1__

Date of Submission: _______2021/07/13______________________

Submitted By: Submitted To:

Student Name: Reshma Oli Faculty Name: Satyam Paudel

IUKL ID: 041902900054 Department: P.O.

Semester: 4th

Intake: September
 1. Information system, an integrated set of components for collecting, storing, and
processing data and for providing information and digital products.Discuss the
components of the information system.

Ans:-

Information system, an integrated set of components for collecting, storing, and

processing data and for providing information and digital products.

Fig:- Components of Information System

Components of the information system are as follows:

1. Hardware Resources:

Physical equipment used for input, output and processing. The hardware structure depends upon
the type and size of the organisation.

It consists of an input and an output device, operating system, processor, and media devices. This
also includes computer peripheral devices.

Computers, keyboards, disk drives, iPads, and flash drives are all examples of information
systems hardware.
2. Software Resources:

The programs/ application program used to control and coordinate the hardware components. It
is used for analysing and processing of the data. These programs include a set of instructions
used for processing information.

Software is further classified into 3 types:

1. System Software
2. Application Software
3. Procedures

Examples of operating systems include Microsoft Windows on a personal computer and

Google’s Android on a mobile phone. Examples of application software are Microsoft Excel and
Angry Birds.

3. Database Resources:

Data are the raw facts and figures that are unorganised that are and later processed to generate
information. Softwares is used for organising and serving data to the user, managing physical
storage of media and virtual resources. As the hardware can’t work without software the same as
software needs data for processing. Data is managed using a Database management system.

Database software is used for efficient access for required data, and to manage knowledge bases.

For example, your street address, the city you live in, and your phone number are all pieces of
data.

4. Network Resources:

Networks resources refer to the telecommunication networks like the intranet, extranet and the
internet.

These resources facilitate the flow of information in the organisation.

Networks consist of both the physical devices such as networks cards, routers, hubs and cables
and software such as operating systems, web servers, data servers and application servers.

Telecommunications networks consist of computers, communications processors, and other

devices interconnected by communications media and controlled by software.

Networks include communication media, and Network Support.

5. People Resources:
It is associated with the manpower required to run and manage the system. People are the end
user of the information system, end-users use information produced for their own purpose, the
main purpose of the information system is to benefit the end user.

The end user can be accountants, engineers, salespersons, customers, clerks, or managers etc. P

People are also responsible for developing and operating information systems. They include
systems analysts, computer operators, programmers, and other clerical IS personnel, and
managerial techniques.

For example:- Functional Manager, ERP Management, CIO etc.

2. A company can survive and succeed in the long run only if it successfully develops
strategies to confront five competitive forces that shape the structure of competition in its
industry. Explain the competitive forces model of IT infrastructure to a business.

Ans:-

Five competitive forces are:-

Fig:- Porter’s Five competitive Forces

Rivalry Among Existing Competitors

What is important here is the number and capability of our competitors. If we have many
competitors, and they offer equally attractive products and services, then we’ll most likely have
little power in the situation, because suppliers and buyers will go elsewhere if they don’t get a
good deal from us.
On the other hand, if no-one else can do what you do, then we can often have tremendous
strength.

There are multiple factors that can impact the intensity of rivalry within an industry.

● Concentration of rivals – the more competitors, the more intense the rivalry
● Product homogeneity – industries selling very similar products are likely to be more
competitive
● Consumer switching costs – if it costs consumers a lot to switch from one company’s
product to a competitor’s, the company is likely to face less competition
● Excess production capacity – when there is excess production capacity available in an
industry, there is a higher chance of increased rivalry as companies find the industry more
attractive to enter
● Brand loyalty – rivalry is high when customers have low brand loyalty
● Network effects – refers to the positive effect on the value of a product when there is an
additional user of the product. When a network effect exists, the value of a product or
service increases as more people are using it.

Threat of New Entrants

Power is also affected by the ability of people to enter your market. If it costs little in time or
money to enter our market and compete effectively, if there are few economies of scale in place,
or if we have little protection for your key technologies, then new competitors can quickly enter
our market and weaken our position.

If we have strong and durable barriers to entry, then we can preserve a favorable position and
take fair advantage of it.

The threat of potential entrants is impacted by things such as:

● Brand loyalty
● Cost advantage or economies of scale – The threat of potential entrants tends to be higher
when companies can realize economies of scale by mass production
● Switching costs
● Network effects
● Excess production capacity
● Government regulation – industries with strict government regulation pose a higher
barrier to potential new entrants
 ● Barriers to exit – when exiting an industry requires high costs, companies are less likely
to enter the industry in the first place
● Investment in specialist equipment – companies also consider the amount of capital that
needs to be invested in specialist equipment when entering an industry
● High fixed costs – things such as specialist equipment, properties, and land are examples
of high fixed costs
● Specialized skills – when entering an industry requiring specialized skills or techniques,
there is a higher barrier to entry for potential entrants

Bargaining Power of Customers

This is driven by the number of buyers, the importance of each individual buyer to our business,
the cost to them of switching from our products and services to those of someone else, and so on.
If we deal with few, powerful buyers, then they are often able to dictate terms to us.

The bargaining power of buyers is high when:

● Buyers are large or concentrated, so their decisions to purchase a product/service have

bigger impacts on the company
● Buyers purchase a large percentage of volume
● Buyers have good information about the product, such as product pricing and demand

Customers are price-sensitive when:

● There are many industry competitors, giving the buyers more choices with lower prices
and better product attributes
● There are many substitutes available
● Switching costs are low, so buyers are indifferent between purchasing products from a
company or its rivals
● Product homogeneity is high

Bargaining Power of Suppliers

This is driven by the number of suppliers of each key input, the uniqueness of their product or
service, their strength and control over us, the cost of switching from one to another, and so on.
The fewer the supplier choices we have, and the more we need suppliers’ help, the more
powerful our suppliers are.

The bargaining power of suppliers is high when:

 ● Suppliers are large or concentrated
● Suppliers can credibly threaten forward integration in the industry
● Rivals purchase a small percentage of the suppliers’ products

Purchasers’ price elasticity is high when:

● There are few alternative suppliers available

● There are few substitute inputs available
● Switching costs are high for purchasers

Threat of Substitutes

This is affected by the ability of our customers to find a different way of doing what you do – for
example, if we supply a unique software product that automates an important process, people
may substitute by doing the process manually or by outsourcing it.

If substitution is easy and substitution is viable, then this weakens our power.

Companies are likely to experience a high threat of substitute goods/services when:

● Switching costs are low for customers

● Substitutes have superior pricing relative to the current products
● Substitutes have better attributes or performance characteristics

3. Explain how information technology supports a company’s business processes and

decision making and give it a competitive advantage with examples.

Ans:-

Information systems perform three vital roles in business firms. They support:

● Business processes and operations,

● Business decision making; and
● Strategic competitive advantage

Business processes and operations

The success of every business depends on certain factors. Some of which are accurate analysis,
choosing the right technology and the future vision. Research from the last two decades has
proved that those organisations that do invest in technology and choose the path of innovation
increase their market share, financial figures and overall competitiveness.

Information technology is the only technology that provides you the opportunity to analyse
specific data and plan your business journey accordingly. It also provides you with many tools
which can solve complex problems and plan the scalability (future growth) of your business.

In the modern age, it is proven that digital marketing is a great tool that lets you promote your
products or services to the global market while sitting in the comfort of your remote office or
home. And thanks to cloud computing and modern communication which enable you to form a
global organisation, manage and monitor its virtual offices all over the world.

For Example:- Most retail stores now use computer-based Information Systems to help them
record customer purchases, keep track of inventory , pay employers but buy new merchandise,
and evaluate sales trends , store operations would grind to a halt without the support of such
Information systems.

Decision Making

Speed and accuracy are at the heart of making the right decision for your business. Every
successful organisation has to go through a comprehensive market research process that enables
management to make the right decision.

Market research can be done in many ways through online surveys, forums, blogs, group
discussions using the World Wide Web and of course through in-person interviews as well.
Currently, Big data, Google Analytics and Microsoft CRM Dynamics are also great tools to
extract useful information which can impact decision making.

These online tools not only provide real-time responses from the potential audience but also
ensure the accuracy of data by minimising the risk of human errors.

For example:-Decisions on what lines of merchandise need to be added or discontinued or on

what kind of investing they require are typically made after an analysis provided by computer
-based information systems. This not only supports the decisions making of stores managers,
buyers and others but also helps them look for ways to gain an advantage over other retailers in
the competition for customers.

Competitive Advantage

A company gains competitive advantage by providing a product or service in a way that

customers gain more value than with a competitor. Higher level of customer satisfaction is the
key to success which cannot be achieved without a real-time customer support process.
Business success depends on knowing its customer needs, trends, behaviours and satisfaction
level. Effective communication is the best tool to understand the customer demands, problems
and their solutions.

Thanks to the Internet Technology that has enabled us to communicate with millions of potential
or existing customers in real-time. IT provides many channels to communicate with the customer
without going out in snow or rain.

Some of these channels are email, webinar, social media, member portals, online newsletters and
text or multimedia messaging through the smartphone. Enterprise organisations normally use
customer relationship management systems (CRM) to hold valuable data for understanding
customer behaviours and future needs.

For Example:- Store Management might make a decision To install touch screen kiosks in all
stores, with links to their e-commerce website for online shopping .This might attract new
customer and build customers loyalty because of the ease of shopping and buying merchandise
provide products and services That gives a business a comparative advantage over its
competitors.