Five qualities of good information are:

1. Accuracy: Good information should be free from errors and should reflect the true state of affairs.

2. Completeness: Good information should provide all necessary details and should not leave out any
important information.

3. Relevance: Good information should be pertinent to the decision-making task at hand and should not
include irrelevant details.

4. Timeliness: Good information should be available when it is needed and should not be delayed.

5. Accessibility: Good information should be easily accessible to the intended users and should not be
difficult to obtain.

Three levels of organizational planning are:

1. Strategic planning: This level of planning involves setting long-term goals and objectives for the
organization and determining the overall direction of the organization.

2. Tactical planning: This level of planning involves developing specific plans to achieve the strategic
goals and objectives of the organization.

3. Operational planning: This level of planning involves developing detailed plans for the day-to-day
operations of the organization.

Each of these levels of planning impacts the information availed for planning in different ways. At the
strategic level, the information required is broad and long-term in nature, and may include market
trends, competitive intelligence, and financial projections. At the tactical level, the information required
is more specific and focused on implementing the strategic plans, and may include resource allocation,
project plans, and performance metrics. At the operational level, the information required is detailed
and focused on the day-to-day operations of the organization, and may include production schedules,
inventory levels, and quality control data.

The benefits of buying an integrated package (or a suite of packages) rather than making
package by package decisions include:

1. **Cost savings**: An integrated package can often be less expensive than purchasing multiple
individual packages.
2. **Efficiency**: An integrated package can improve the efficiency of the organization by reducing the
need for manual data entry and integration.

3. **Consistency**: An integrated package can ensure consistency in data and processes across the
organization.

4. **Scalability**: An integrated package can be more scalable than individual packages, allowing the
organization to grow and adapt more easily.

5. **Integration**: An integrated package can provide a more seamless integration of data and
processes across the organization.

Potential risks associated with the loss of information system elements include:

1. **Hardware**: The loss of hardware can result in the loss of data and the inability to access critical
systems and applications.

2. **Data and information**: The loss of data and information can result in the inability to make
informed decisions, and can also lead to compliance issues and legal liabilities.

3. **Software**: The loss of software can result in the inability to access critical systems and
applications, and can also lead to compatibility issues with other systems and applications.

4. **Staff**: The loss of staff can result in the loss of knowledge and expertise, and can also lead to
disruptions in operations and services.

### Question Two

#### Business Process Re-engineering (BPR)

Business Process Re-engineering (BPR) is a fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical areas such as cost, quality, service, and speed. It
involves the analysis and redesign of workflows within and between enterprises to optimize end-to-end
processes and achieve significant enhancements in performance.

#### Opportunities Enabled by BPR

1. **Operational Efficiency**: BPR allows organizations to streamline processes, eliminate redundant

tasks, and improve overall efficiency.

2. **Enhanced Customer Service**: By re-engineering processes, organizations can better meet

customer needs, leading to improved customer satisfaction and loyalty.

3. **Cost Reduction**: BPR helps in identifying and eliminating unnecessary costs, leading to improved
financial performance.
4. **Competitive Advantage**: Through BPR, organizations can gain a competitive edge by being more
agile, responsive, and innovative in their operations.

5. **Quality Improvement**: BPR focuses on enhancing quality by redefining processes to ensure better
outcomes and reduced errors.

#### Reasons for High Failure Rate in BPR Projects

1. **Resistance to Change**: Employees may resist the radical changes brought about by BPR, leading
to implementation challenges.

2. **Lack of Top Management Support**: Without strong leadership backing, BPR initiatives may lack
direction and fail to achieve desired outcomes.

3. **Poor Communication**: Inadequate communication about the goals and benefits of BPR can lead
to confusion and resistance among employees.

4. **Overlooking Cultural Factors**: Neglecting the organizational culture and employee morale can
hinder the successful implementation of BPR.

5. **Inadequate Training**: Insufficient training and support for employees transitioning to new
processes can impede the effectiveness of BPR initiatives.

### Question Three

#### An Information Systems Strategy

An Information Systems Strategy is a comprehensive plan that outlines how an organization will utilize
information technology to achieve its business objectives. It involves aligning IT capabilities with the
overall strategic goals of the organization to enhance efficiency, effectiveness, and competitive
advantage.

#### Tangible and Intangible Benefits of Information Systems

- **Tangible Benefits**: These are quantifiable benefits that can be directly measured, such as cost
savings, revenue growth, and productivity improvements.

- **Intangible Benefits**: These are benefits that are difficult to quantify but are equally valuable, such
as improved decision-making, enhanced customer satisfaction, and increased innovation capabilities.

#### Unique Features Qualifying Organizations as Systems

1. Interconnectedness: Organizations are composed of interconnected parts that work together to
achieve common goals.

2. Feedback Mechanisms: Systems have feedback loops that allow them to monitor and adjust their
performance based on internal and external inputs.

3. Goal Orientation: Organizations operate with specific objectives in mind, working towards achieving
desired outcomes.

4. Adaptability: Systems can adapt to changes in their environment, adjusting their processes and
strategies to remain effective.

5. Hierarchy: Organizations have hierarchical structures that define roles, responsibilities, and
communication channels within the system.

Question Four

Essential Requirements of a Successful CRM

1. Integration: A successful CRM should integrate all customer-facing functions, such as marketing,
sales, and customer service, to provide a single view of the customer.

2. Personalization: A successful CRM should allow for personalized interactions with customers, tailoring
communications and offers to individual customer preferences and needs.

3. Automation: A successful CRM should automate routine tasks, such as lead tracking and follow-up, to
free up time for more strategic activities.

Impact of Failure or Absence of CRM Requirements

For example, if a CRM lacks integration, an organization may struggle to provide a consistent customer
experience across different touch points, leading to confusion and dissatisfaction among customers. This
can result in lost sales, reduced customer loyalty, and damage to the organization's reputation.

Key Steps in Corporate Strategic Planning

1. Mission and Vision Statement: Defining the organization's purpose and long-term aspirations.

2. SWOT Analysis: Identifying the organization's strengths, weaknesses, opportunities, and threats.

3. Goal Setting: Establishing specific, measurable, achievable, relevant, and time-bound (SMART) goals.

4. Strategy Formulation: Developing strategies to achieve the organization's goals, such as market
penetration, product development, or diversification.

5. Implementation and Control: Executing the strategies and monitoring progress towards the goals.
#### Strategic Planning Techniques

1. **PESTEL Analysis**: Analyzing the political, economic, social, technological, environmental, and legal
factors impacting the organization.

2. **Porter's Five Forces**: Analyzing the competitive forces in the organization's industry, such as
rivalry, bargaining power of suppliers and buyers, threat of new entrants, and threat of substitute
products or services.

3. **Balanced Scorecard**: Monitoring the organization's performance across four perspectives:

financial, customer, internal processes, and learning and growth.

Question Five

ERP Data Repository vs Data Mart

**Similarities**: Both are databases that store organizational data.

**Differences**: An ERP data repository stores data from across the organization, while a data mart
stores data for a specific business unit or function.

DSS vs GDSS

**Similarities**: Both are decision support tools that help users make informed decisions.

**Differences**: A DSS is designed for individual decision-making, while a GDSS is designed for group
decision-making.

Data Mining Tool vs OLAP Tool

Similarities: Both are analytical tools that help users extract insights from data.

Differences: A data mining tool is used for discovering patterns and relationships in large datasets, while
an OLAP tool is used for analyzing multidimensional data, such as sales data by product, region, and time
period.

SaaS vs Virtual Organization

Similarities: Both involve using technology to enable remote work and collaboration.

Differences: SaaS is a software delivery model where applications are hosted in the cloud and accessed
over the internet, while a virtual organization is a business model where the organization operates
primarily through digital channels, with minimal physical infrastructure.
When a firm expands abroad how can they structure the subsidiary? Provide one

advantage/disadvantage of each structure choice (12 points)

CHAPTER 8

Exporting

Lowest cost, little control

Licensing

Low cost, cannot coordinate moves

Franchising

Low cost quick expansion, lack of quality control

Joint venture

More control, higher costs

Wholly owned

Most expensive, highest level of control

2. Why is the mission statement the first step in the strategic management process?

How does it relate to the other parts of the strategic management process and to a

firm’s business and corporate strategy? (28 points)

Chapter 1 Plus Chapters 2, 3, 5, 6, 8, 9, & 10.

The mission statement is the starting point because we need to know what a firm

wants to do and be before we can determine if the current strategy is correct or

whether another strategy is better.

Also SWOT can only be identified in relationship to the mission of the firm. The

mission helps define what external factors might have an impact on the firm (In

reaching its goals) and what factors internal to the firm provide a strength or

weakness in achieving these goals.

Based on its mission a firm identifies the building blocks of efficiency, quality,

innovation and customer responsiveness which will help it achieve its goals and

which it can build (have) a strength in.

Finally the mission is related to Corporate and business strategy. Firms choose a
corporate strategy to pursue based on their mission; the strategy that best helps the

firm achieve its mission. The mission also helps in business strategy the mission

helps define the way in which the firm will compete.

Downloaded by Joshua Mercy (mercyjoshu0@gmail.com)

lOMoARcPSD|19230851

3. What are cognitive biases and how can they be resolved in the strategy-making process?

(20 points)

Chapter 1

Cognitive biases are systematic errors in human decision making that arise from

the way people process information. Examples of these biases include prior

hypothesis, escalation of commitment, reasoning by analogy, representativeness,

and illusion of control.

Several techniques can be used to deal with biases, Devil’s advocacy, Dialectic

inquiry, the outside view, group decision making.

4. What are the four generic business strategies? Give one advantage and one disadvantage

of each (20 points).

Chapters 5&6

Differentiation

ADV: Can change a higher price for the product/service

DIS: Hard to know what differences will be attractive to customers and

not easily copied by competitors

Cost-leadership

ADV: Protected from industry competitors because it has a lower cost

structure.

DIS: Dangerous when competitors are able to develop new strategies that

lower their cost structure and beat the cost leader at its game

Focus differentiation

ADV: Permits a company to stay close to its customers and respond to

their changing needs

DIS: Differentiators may compete for a focuser’s niche by offering a

product that can satisfy the demands of the focuser’s customers

Focus cost-leadership

ADV: Protected in the niche area because of low cost structure. Provide an

opportunity to develop efficiency based strengthens that might lead to

general cost leadership.

DIS: Production costs often exceed those of a general low-cost company.

This can create a problem if the general cost leader enters the niche

market.

a. Disruptive Utility: Cloud Computing

Cloud computing has revolutionized the way organizations consume IT resources by offering on-demand
access to computing power, storage, and applications over the internet. It has introduced a pay-as-you-
go model, allowing businesses to scale their IT infrastructure based on their needs and significantly
reducing capital expenditures.

b. Disruptive Process: Agile Software Development

Agile software development is a disruptive process that has changed the way software is developed and
delivered. It emphasizes iterative development, continuous feedback, and rapid adaptation to changing
requirements. Agile methodologies, such as Scrum and Kanban, promote cross-functional teams,
collaboration, and flexible planning, resulting in faster time-to-market, higher quality products, and
improved customer satisfaction.

c. Disruptive Service: Software as a Service (SaaS)

SaaS is a disruptive service model that delivers software applications over the internet, eliminating the
need for local installations and maintenance. It has introduced a new way of consuming software, where
users pay for subscriptions rather than purchasing licenses. SaaS has made software more accessible,
scalable, and cost-effective, enabling businesses to adopt advanced technologies without significant
upfront investments.

d. Disruptive Product: Smartphones

Smartphones are disruptive products that have transformed the way people communicate, access
information, and entertain themselves. They have integrated various functionalities, such as computing,
telecommunications, and multimedia, into a single device, making them indispensable tools for both
personal and professional use. Smartphones have introduced new business models, such as app stores
and mobile advertising, and have created opportunities for innovation in areas like mobile payments,
augmented reality, and the Internet of Things.

e. Disruptive Implementation: Microservices Architecture

Microservices architecture is a disruptive implementation approach that breaks down monolithic

applications into smaller, independent components called microservices. Each microservice performs a
specific function and communicates with other microservices through APIs. This approach offers several
benefits, such as improved scalability, resilience, and agility, making it easier for organizations to adopt
new technologies and respond to changing market demands.

f. Benefits of Disruptive Technologies:

i. Cloud Computing: Cost savings, scalability, flexibility, and improved disaster recovery.

ii. Agile Software Development: Faster time-to-market, higher quality products, improved customer
satisfaction, and increased collaboration.

g. Disruptive Innovations Leading to Inventions:

i. Cloud Computing: Virtualization, service-oriented architecture, and grid computing.

ii. Agile Software Development: Rapid application development, iterative development, and extreme
programming.

iii. Smartphones: Touchscreens, mobile operating systems, and mobile applications.

iv. Microservices Architecture: Containerization, DevOps, and continuous delivery.

h. Impact of Convergence of Computing and Telecommunications:

The convergence of computing and telecommunications has led to the emergence of new technologies,
such as 5G, IoT, and edge computing, which have revolutionized business operations and social
economics. These technologies have enabled real-time data processing, improved connectivity, and
enhanced collaboration, leading to increased productivity, innovation, and competitiveness.

i. Impact of Mobile Platforms on Business Strategies:

The introduction of mobile platforms has forced businesses to rethink their strategies to leverage the
opportunities offered by mobile devices. Companies have adopted mobile-first approaches, developed
mobile applications, and integrated mobile payments to reach customers, improve customer
engagement, and enhance operational efficiency.
j. Management by Objectives (MBO):

MBO is a goal-setting approach where managers and employees work together to set specific,
measurable, achievable, relevant, and time-bound (SMART) objectives. It promotes clear
communication, accountability, and performance measurement, leading to improved organizational
performance and employee motivation.

k. History of IS Development:

The history of IS development can be traced back to the 1960s, with the emergence of structured
programming and the waterfall model. Over the years, various methodologies, such as rapid application
development, joint application development, and agile development, have been introduced to address
the challenges of traditional IS development approaches.

l. Nine DSDM Principles:

i. Focus on the business need.

ii. Deliver on time.

iii. Collaborate.

iv. Never compromise quality.

v. Build incrementally from firm foundations.

vi. Develop iteratively.

vii. Communicate continuously and clearly.

viii. Demonstrate control.

ix. Use proven practices.

m. Time-boxing vs. Extreme Programming:

Time-boxing is a technique used in agile development to allocate a fixed amount of time for each
development phase. Extreme Programming (XP) is an agile methodology that emphasizes frequent
releases, continuous feedback, and technical practices, such as pair programming and test-driven
development.

n. Ten Mechanisms for Innovation:

i. Encourage creativity.
ii. Foster a culture of experimentation.

iii. Provide resources and support.

iv. Collaborate with external partners.

v. Leverage diversity.

vi. Encourage risk-taking.

vii. Implement feedback mechanisms.

viii. Adopt new technologies.

ix. Establish innovation metrics.

x. Continuously improve processes.

Ecology of Management:

The ecology of management refers to the complex relationships between organizations and their
environment. It emphasizes the importance of understanding the external factors that influence
organizational performance, such as market trends, competition, and regulatory requirements, and
adapting to them to ensure long-term success.

What is strategic management?

Strategic management involves developing and implementing plans to help an organization achieve its
goals and objectives. This process can include formulating strategy, planning organizational structure
and resource allocation, leading change initiatives, and controlling processes and resources.

Strategic planning involves identifying business challenges, choosing the best strategy, monitoring
progress, and then making adjustments to the executed strategy to improve performance. Tools like
SWOT (strengths, weaknesses, opportunities, and threats) analysis are used to assess where
opportunities and threats lie between the organization, its competition, and the overall market.

Strategic management happens at broader levels like organization-wide leadership, but it can also be
implemented at a department or team level.

Approaches to strategic management

There are two main approaches to strategic management: prescriptive and descriptive. A prescriptive
approach to strategic management focuses on how strategies should be developed, while a descriptive
approach focuses on how strategies should be put into practice. The prescriptive model is more top-
down, based on SWOT analysis. The descriptive model is more guided by experimenting with different
methods to find solutions and learning from experience. It applies agile methodology to strategic
management.

Types of strategy
One way of thinking about strategic management is to classify the management focus into three types
of strategy:

• A business strategy is a high-level plan where you outline how your organization will achieve its
objectives.

• Operational strategies are much more specific plans where you detail what actions to take to achieve
the desired results.

• Transformational strategies involve making radical changes to your organization to achieve significant
improvements.

Benefits of strategic management

The strategic management process helps an organization's leadership plan for its future goals. Setting a
roadmap and actionable plan ensures that employees and leaders know where they're going and how to
get there in the most efficient, cost-effective manner. It is a work in progress, so strategic plans should
continuously be evaluated and adjusted as the market outlook changes.

Financial benefits:

 Increase market share and profitability.

 Prevent legal risk.

 Improve revenue and cash flow.

Non-financial benefits:

 Relieves the board of directors of responsibilities.

 Allows for an objective review and assessment.

 Enables an organization to measure progress throughout time.

 Provides a big-picture perspective of the organization's future.

5 steps of the strategic management process

It's common to view the strategic management process as a five-step process. The steps are
identification, analysis, formation, execution, and evaluation.

1. Define the direction.

Identifying the direction and specific goals is the initial stage of the strategic management process. This
step involves identifying goals and determining what needs to happen to achieve them.

2. Analyze the current situation.

The second step is analysis and research. Using tools like SWOT analysis and examining the
organization's resources, including budget, time, people (staff), and more, you'll gain a better
understanding of how to leverage what's working and get rid of what's not.

3. Outline the strategy and plan of action.

Next is formulating a strategy and plan of action based on situational analysis. This step involves crafting
a specific and realistic plan to help the organization achieve its goals.

4. Execute the plan.

Executing the plan is the fourth step in the strategic management process. This step involves putting the
plan into action and monitoring its progress. You may have to adjust the plan as circumstances change,
especially if you take a more descriptive approach to strategy.

5. Evaluate the plan.

Evaluation is the fifth and final step in the strategic management process. Here, you'll assess whether
the organization has achieved its goals. If not, you can adjust your plan and implement it in innovative
ways. Feedback and analysis are essential to evaluation and preparing for an optimal business future.