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Information Processing and Management Assignment
Information Processing and Management Assignment
Department of Management
Master of Business Administration
Course Title: Information Processing and Management
Individual Assignment
By:- Lielti Aymut Abrha
ID No:- MBA0239/23
E-mail: lieltim19@gmail.com
Submitted to: MEHARI HAILE (PHD)
E-mail: haileg2003@gmail.com
Date: - 04/04/2024 G.C
Maichew, Tigraiy
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1. Explain why knowledge of information systems is important for business professionals,
and identify five areas of information systems knowledge that they need.
1. Decision-making: Information systems offer valued data and analysis tools that
can inform strategic decision-making within an organization. Business
professionals must be able to comprehend and understand this data to make
knowledgeable choices that will benefit the business.
2. Customer Relationship Management (CRM): CRM systems are important for
handling and constructing relationships with customers. Business professionals
need to comprehend how CRM systems work and how to leverage them to
recover customer gratification and drive sales.
3. Enterprise Resource Planning (ERP): ERP systems mix key business purposes
such as finance, HR, and supply chain management into a single system.
Business professionals need to understand how ERP systems work and how they
can rationalize business operations and recover efficiency.
4. Cyber security: Cyber security is a major concern for businesses in the digital
age. Business professionals need to understand basic cyber security principles
and best practices to protect their organization’s data and systems from cyber
threats.
5. Business Intelligence: Business intelligence systems gather and examine data to
provide visions that can help drive business decisions. Business professionals
need to comprehend how to use these systems to collect valued information about
market trends, customer behaviour, and other key factors affecting their business.
2. Give examples to illustrate how the business applications of information systems can
support a firm’s business processes, managerial decision making, and strategies for
competitive advantage.
Surely! Here are examples demonstrating how the business applications of information
systems can support different aspects of a firm’s operations:
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Example: A manufacturing company implements an Enterprise Resource
Planning (ERP) system to streamline its production processes. The ERP system
integrates data from various departments like inventory, sales, and production,
enabling real-time tracking of inventory levels, production schedules, and
customer orders. This leads to better coordination, reduced lead times, and
improved efficiency in the manufacturing process.
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Example: A tech start up adopts cloud computing services to enhance its
scalability and agility. By leveraging cloud-based infrastructure and platforms,
the start up can quickly deploy new applications, scale resources based on
demand, and collaborate easily with remote teams. This flexibility enables the
firm to innovate rapidly, respond to market changes swiftly, and adapt to
customer needs effectively, positioning it ahead of competitors.
3. Identify several basic competitive strategies and explain how they use information
technologies to confront the competitive forces faced by a business.
1. Cost Leadership: This strategy contains becoming the lowest-cost producer in the
industry. Businesses can leverage information technologies to streamline
operations, reduce production costs, and improve efficiency. For example,
implementing Enterprise Resource Planning (ERP) systems can help automate
processes, reduce labour costs, and optimize inventory management.
2. Differentiation: Differentiation strategy focuses on offering unique products or
services that are perceived as valuable by customers. Businesses can use
information technologies to gather customer insights, conduct market research, and
tailor products or services to meet customer needs. Customer Relationship
Management (CRM) systems can help businesses track customer preferences,
personalize offerings, and enhance the overall customer experience.
3. Focus: Focus strategy involves targeting a specific market segment and tailoring
products or services to meet their needs. Information technologies can help
businesses identify and segment target markets, track consumer behaviour, and
customize marketing efforts. Digital marketing tools such as social media
marketing email campaigns, and targeted online advertising can help businesses
reach their target audience more effectively.
4. Innovation: Innovation strategy involves developing new products, services, or
processes to stay ahead of the competition. Businesses can use information
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technologies to facilitate research and development, collaborate with partners, and
bring innovative ideas to market. Project management tools, collaboration
platforms, and data analytics can help businesses identify market trends,
brainstorm new ideas, and streamline the innovation process.
5. Strategic Alliances: Strategic alliances involve collaborating with other
companies to gain competitive advantage. Information technologies play a crucial
role in managing communication, sharing resources, and coordinating activities
between alliance partners. Cloud-based collaboration tools, data sharing platforms,
and virtual project management software can facilitate effective partnerships and
help businesses leverage collective strengths to confront competitive forces.
4. Explain how knowledge management systems can help a business gain strategic
advantage.
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5. Competitive advantage: By leveraging KMS to harness and utilize
organizational knowledge effectively, businesses can gain a competitive
advantage. KMS helps businesses stay agile, adapt to changes in the market, and
make strategic decisions based on data-driven insights, ultimately leading to
sustainable competitive advantage in the long run.
5. What is the role of a database management system in a business information system?
6. What are the advantages of a database management approach to the file processing
approach? Give examples to illustrate your answer.
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Advantages of a database management approach over a file processing approach include:
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When acquiring or recommending computer systems and peripherals for a business, it is
essential to consider the specific needs and requirements of the organization. For a software
development company, for example, the following computer systems and peripherals would
be recommended:
The selection of these computer systems and peripherals is based on the specific
requirements of a software development business. These recommendations aim to
provide developers with the tools and resources necessary to streamline the
development process, optimize productivity, and ensure efficient collaboration
within the organization.
8. Identify several challenges that a business manager might face in managing the
successful and ethical development and use of information technology in a business.
Several challenges that a business manager might face in managing the successful and
ethical development and use of information technology in a business include:
1. Security and privacy concerns: Ensuring the security of sensitive data and
protecting customer privacy are critical issues that managers must address. Data
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breaches, cyber-attacks, and unauthorized access to information can have serious
consequences for a business.
2. Compliance with regulations: Businesses must comply with various laws and
regulations related to data protection, privacy, and cyber security. Staying abreast of
changing regulations and ensuring that the business is in compliance can be a
challenge for managers.
3. Managing technology risks: Implementing new technologies or upgrading existing
systems can introduce risks such as system failures, data loss, and disruptions to
business operations. Managers must effectively manage these risks to ensure the
smooth functioning of the business.
4. Balancing innovation and cost: Investing in new technologies can drive innovation
and improve business processes, but it also comes with significant costs. Managers
must strike a balance between investing in technology and managing costs to ensure
a positive return on investment.
5. Ethical considerations: Using information technology ethically and responsibly is
crucial for maintaining trust with customers, employees, and other stakeholders.
Managers must navigate complex ethical issues such as data privacy, intellectual
property rights, and the impact of technology on society.
9. Explain how database management software helps business professionals and supports
the operations and management of a business.
Database management software plays a vital role in supporting the operations and
management of a business by efficiently and effectively organizing, storing, and managing
data. Here are some ways in which database management software helps business
professionals:
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enforcing data validation rules, constraints, and ensuring that only accurate and
consistent data is entered into the system. This helps in maintaining the
reliability and validity of the data stored in the database.
4. Data Analysis: Database management software provides tools for querying and
analysing data, making it easier for business professionals to extract valuable
insights and trends from their data. This helps in making informed decisions
and developing strategic business plans.
5. Streamlined Operations: Database management software facilitates the
seamless integration of data across different departments and functions of the
organization. This integration streamlines business operations, enhances
collaboration, and improves overall efficiency.