STRATEGY AND COMPETITIVE ADVANTAGE

Strategy of an organization is the roadmap towards attainment of its long-term goals and objectives.

Competitive Advantage is the measure of a firm’s competencies and performance against the factors
prevailing in the firm’s external environment. It refers to the use of information to gain leverage in the
marketplace.

COMPETITIVE STRATEGIES THAT CAN BE USED TO CONFRONT COMPETITIVE FORCES:

Cost Strategies – using IT to help you become a low-cost producer, lower your customers or suppliers
cost, or increase the cost your customers must pay to remain in the industry.

Differentiation Strategies – developing ways to use IT to differentiate your company’s products or

services from your competitors so your customers perceive your products or services unique features or
benefits.

Innovation Strategies – introducing unique products or services that include IT components.

REENGINEERING BUSINESS PROCESS

One of the most important competitive strategies today is business process reengineering (BPR), most
often called reengineering.

The fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements, such as cost, quality, service, and speed.

It focuses on how and why of a business process, so major changes can be made in how work is
accomplished.

HOW IT CAN HELP REENGINEERING BUSINESS PROCESSES

New Rule

 Decision making is part of everyone’s job.

 A generalist can do the work of an expert.
 Information can appear simultaneously in as many places as needed.
 Field personnel can send and receive information wherever they are.

One of the best way to reduce the cost of a product or service is to eliminate the intermediary, usually
the person or people who sell the products or services to the consumers.

It is imperative that we take full advantage of the opportunities that new and emerging information
processing technology will offer as over the next few years.

Systems and communication are strategic weapons, not “cost centers”.

Streamlining Operations through integration. The integration of computers and manufacturing is called
computer-integrated manufacturing (CIM). In computer- integrated manufacturing computer is used at
every stage of the manufacturing process.
The POS system of retailers that use information system as the strategic weapon are on-line to a
centralized computer system. This direct links gave salespersons greater capability to serve the customer
and gives market researches to the information that they need to develop strategy to maximum sales.

Computer – Aided – Design (CAD). The use of computer and advanced graphics to provide interactive
design for engineering. The design specifications are produced and stored on a magnetic disk.

END – USER COMPUTING

Is an emerging multi-discipline that looks at the impact of information technology on society.

It looks both back into the past to explore how technology evolve, are deployed, and are used for
forwarded into the future to shape this evolution in the hope that we might craft a more habitable,
enriching, an empowering information ecology.

End User Computing is the study and development of deployable environments that integrate research
technologies and put them in the hands of ordinary people from all walks of life.

END USER DEVELOPMENT

In an end user development, IS professionals play a consulting rule well you do your own application
development. Sometimes a staff of user consultants may be available to help you and other end users
with the application development efforts.

For instance, user services group or information center may provide assistance for both mainframe and
microcomputer applications development.

This may include training in the use of application packages, selection of hardware and software,
assistance in gaining access to organization databases, assistance in analysis, and implementing
applications.

MANAGING INFORMATION RESOURCES AND TECHNOLOGIES

What is the solution to problems of poor performance in the information system functions?

The experiences of successful organizations reveal that extensive and meaningful managerial and end-
user involvement is the key ingredient of high-quality information systems performance.

Involving business managers in the governance of the IS functions and end-users in the development of
IS applications should thus shape the response of management to the challenges of improving the
business value of information technology.

Major Levels of Management Involvement and Governance of Information Technology

Executive IT Committee. Top management which the strategic information system planning, develops
and coordinates long-range plans.

IT Steering Committee. Business unit managers oversee the progress of major systems development
project.

End User Management. Direct end user management of information technology in business units and
workgroups, including participation in developing key information system.
 BASIC COMPONENTS OF AN ORGANIZATION

People. Managers and knowledge workers are individuals with a variety of references for information
and diverse capabilities for effectively using information provided to them.

Tasks. The task of many organizations has become quite complex and inefficient overtime. This can
eliminate many manual tasks and required procedures, and significantly improve communication and
strategic cooperation between organizations.

Technology. The technology of computer-based information systems continues to grow more

sophisticated and complex.

Culture. Organizations and their sub units have a culture that is shared by managers and other
employees.

Structure. Organization structure that includes their management, employees, and job task into a variety
of organizational sub units.

INFORMATION RESOURCE MANAGEMENT (IRM)

Is an IS management concept that organizes the management and mission of the information systems
functions into five major dimensions.

It treats information as a valuable resource that should be managed accordingly, just like money,
materials, and people.

Strategic Management. Information technology must be managed to contribute to a firm’s strategic

objectives and competitive advantages, not just for operational efficiency or decision support.

THE CHIEF INFORMATION OFFICER (CIO)

The top leader in an organization, to whom a small group of executive reports.

The highest ranking IS officer in the organization, usually a vice president, who oversees the planning,
development and implementation of IS and serves as a leader to all IS professionals in the organization.

The CIO concentrate on long-term planning and strategy. They also work with other top executives to
develop strategic uses of information technology that help make the firm more competitive in the
marketplace.

Operational Management. Information technology and information system can be managed by

functional and process-based organizational structures and managerial techniques commonly used
throughout other business units.

Resource Management. Data and information, hardware and software, telecommunications network,
and IS personal are vital organizational resources that must be managed like other business assets.

Technology Management. All technologies that process, store, and communicate data and information
throughout the enterprise should be managed as integrated systems of organizational resources.
Distributed Management. Managing the use of information technology and information systems
resources in business units or workgroups is a key responsibilities of their managers, no matter what
their function or level in organization.

CENTRALIZATION VS DECENTRALIZATION

Centralized computer facilities connected to all parts of an organization by telecommunications networks

could allow top management to centralized decision-making formerly done by lower levels of
management. It could also promotes centralization of operations, which reduces the number of branch
offices, manufacturing plants, and other worksites needed by the firm.

On the other hand, intranets and distributed client/server networks of PCs and served at multiple work
sites allow top management to delegate more decision making to the managers of business units.
Managers could also decentralize operations by increasing the number of branch offices while still having
access to the information and communication capabilities they need to control the overall direction of
the organization.

The Global Company. A global company is a business that is driven by a global strategy, which enables it
to plan and treat all of its activities in the context of a whole world system, and therefore serve its local
and global customers with excellence.

Information Specialist. Describe any of a firm’s employees who have full-time responsibility for
developing and maintaining computer -based system. There are five main categories of information
specialist – system analyst, database administrators, network specialists, programmers, and operators.

Network Specialist. Work with systems analyst and users in establishing the data communications
network that ties together widespread computing resources.

Information Service Management. It performs that traditional management functions, planning,

organizing, staffing, directing, and controlling.

WHO MANAGES THE INFORMATION RESOURCES

Chief Information Officer (CIO) – is the manager of information services who contributes managerial
skills in solving problems relating not only to the information resources but also to other areas of the
firm operations.

System Analyst – analyzes, designs and implements information system. He works closely with people in
the user areas to design information systems that meet their data processing and information needs.
This problem solves are assigned a variety of tasks which might include feasibility studies, system review,
security assessments, long range planning and hardware/software selection.

Programmers – translates analyst prepared system and input/output specification into programs.
Programmers design the logic, then code, debug, test and document the programs. Programmers write
the programs for a certain application such as market analysis or inventory management. A person
holding a programmer/analyst position performs the functions of both a programmer and a system
analyst.

Systems Programmers – develop and maintain system software.

Data Communication Specialist – designs and maintains computer networks that link computers and
workstations for data communication.

a) Computer Operators
b) Scheduler
c) Data Control Clerk
d) Data Entry Operators
e) EDP Librarian

INFORMATION CENTER RESOURCES

The typical information center makes a plethora of hardware and software resources available to end –
users. The hardware or computing resources and an information center includes:

1. Workstations – that enable users to interact directly with a business central computer system
and integrated corporate database.
2. Microcomputers – for “personal” or stand along computing
3. Printers – for hard copy or printed output
4. Plotters – for the preparation of presentation graphics
5. Desktop publishing – equipment
6. Desktop fil recorder – that reproduce a high-resolution graphics image on 35- millimeter film.
7. Screen image projectors – that project computing - generated graphic images to a large screen
for viewing by a group of people.

TYPES OF INFORMATION RESOURCES

 Computer hardware.
 Computer Software
 Information Specialist
 Users
 Facilities
 The database
 Information

The Information Center would also make a variety of software packages available for use. Software that
would be considered standard in an information center includes:

 Word Processing permits the user to enter, store, manipulate and print text.
 On-line thesaurus
 Electronic dictionary and spelling checker
 Mail merge provides the facility to merge the text generated by word processing with data from
base.
 Desktop publishing provides the capability to produce near typeset quality copy for newsletters,
etc.
 Electronic spreadsheet
 Data Management or database software permits user to create and maintain a database and to
extract information from the database.
  Presentation graphics permit users to create charts and line drawing that graphically portray the
data and an electronic spreadsheet or database.
 Idea processer help user to organize and document their thoughts and ideas.
 Communication permits user to send and receive transmission to/from remote computers, anta
process to store the data as well.
 Expert System shell and enables users to create their own expert systems.

USER LIAISON

The User Liaison is given a variety of titles such as “Internal consultant”, “functional specialist”, and
“account executive”.

The user liaison is a “live-in” computer specialist who coordinates all computer – related activities within
a particular functional area.

CONNECTIVITY &DATA COMMUNICATION

Telecommunications- It is an electronic transmission of information over distances by electronic means

and refers to all types of voice, data and video transmission.

BENEFITS OF TELECOMMUNICATIONS

 Cost saving
 Time saving
 Team collaboration
 Information transmission
 Customer support
 Marketing and advertising
 Business reporting

COMPUTER NETWORKS

 INTERNET- Public network accessible to anyone

 INTRANET- Private networks accessible only to authorize users within the organizations.
 EXTRANET- Private networks that allow external parties to access certain parts of an
organization’s intranet.

BUSINESS APPLICATIONS OF TELECOM

Data Communication – Is a more specific term that describes the transmitting and receiving of data
over communication links between one or more computer systems and a variety of Input /output
terminals.

 Enterprise Collaboration System– Applications use of telecommunication network to

support communication, coordination and collaboration among the members of business
teams and work groups.
 Electronic Commerce System- Application support the buying and selling of products,
services and information over the internet and other computer network.
  Internal business System – Application of telecom depend on a variety of computer network
to support a company’s business operation.

MAJOR TRENDS IN TELECOM

INDUSTRY TREND

 Towards a greater number of competitive vendors, carriers, alliances and network services
accelerated by deregulation and the growth of the internet.

TECHNOLOGY TRENDS

 Towards the use of the internet and other open and interconnected local and global digital
network for voice data, images and video with heavy use of high speed fiber optic lines and
satellites channels to form a global informative superhighways.

APPLICATION TREND

 Towards that pervasiveness use of the internet and enterprise intranet and inter organizational
extranet to support electronic commerce, enterprise collaboration, online business organization
and strategic advantage in local and global market.

ENTERPRISE COLLABORATION SYSTEM

 Electronic Mail
 Voice Mail
 Discussion Forums
 Data Conferencing
 Voice Conferencing

ELECTRONIC COMMERCE SYSTEM

 Online Point of Sale Trans Web Retailing & Wholesaling

 Electronic Data
 Electronic Funds Transfer
 Electronic Bankers
 Interactive Marketing
 Supply Chain Management

INTERNAL BUSINESS SYSTEM

 Internet Transaction Process

 Inquiry Processing
 Intranet Web Publishing
 Workflow System
 Process Control
 Management Support System
OPEN SYSTEM

 Information that used common standards for hardware, software, application and networking.
 Any open system architecture also provides a high degree of network interoperability.

E-COMMERCE

 E-commerce (electronic commerce) is the buying and selling of goods and services, or the
transmitting of funds or data, over an electronic network, primarily the internet.

USES OF INTERNET

Internet, Computer based global information system.

-It composed of many interconnected computer networks.

Made it possible for people over the world to communicate with one another effectively and
expensively. Unlike the traditional broadcasting media such as radio and television the internet does not
have a centralized distribution system.

DEVELOPMENT OF THE INTERNET

Before the internet was created, the US military developed and deployed communications network
including a network known as Advanced Research Projects Agency Network (ARPANET).

Uses of the networks were restricted to military personnel and the researchers who developed the
technology.

At the universities, only a handful of researchers working on internet research had an accessed.

In the 1980s, NSF (National Science Foundation) developed an “Acceptable use policy “however they
prohibited all commercial uses in the internet.

1995, NSF ceased its administration of the internet. Internet was privatized and commercials are
permitted. This move coincided with the growth in popularity of the World Wide Web (WWW), which
was developed by British physicist and computer scientist Timothy Berners-Lee.

The Web consists of programs running on many computers that allow a user to find and display
multimedia documents (documents that contain a combination of text, photographs, graphics, audio,
and video). Many analysts attribute the explosion in use and popularity of the Internet to the visual
nature of Web documents. By the end of 2000, Web traffic dominated the Internet-more than 80
percent of all traffic on the Internet came from the Web.

Companies, individuals, and institutions use the Internet in many ways. Companies use the Internet for
electronic commerce, also called e-commerce, including advertising, selling, buying, distributing
products, and providing customer service. In addition, companies use the Internet for business-to-
business transactions, such as exchanging financial information.

INTERNET ACCESS

The term Internet Access refers to the communication between a residence or a business and an ISP that
connects to the Internet.
THREE BROAD CATEGORIES

 Dedicated
 WIRELESS
 DIAL-UP

With dedicated access, a subscriber’s computer remains directly connected to the Internet at all times
through a permanent, physical connection.

Most large businesses have high-capacity dedicated connections small businesses or individuals that
desire dedicated access choose technologies such as digital subscriber line (DSL) or cable modems,
which both use existing wiring to lower cost. A DSL sends data across the same wires that telephone
service uses, and cable modems use the same wiring that cable television uses.

Another, less-popular option is Satellite Internet Access, in which a computer grabs an Internet signal
from orbiting satellites via an outdoor satellite dish. The user usually pays a fixed monthly fee for a
dedicated connection. In exchange, the company providing the connection agrees to relay data between
the user’s computer and the Internet.

DIAL UP LINE VS. DEDICATED LINE VS. WIRELESS

DIAL-UP LINE

A dial-up line is a temporary connection that uses one or more analog telephone lines for
communications. A dial-up connection is not permanent. Using a dial-up line to connect computers costs
no more than making a regular telephone call.

DEDICATED LINE

A dedicated line is a type of always-on connection that is established between two communications
devices (unlike a dial-up line where the connection is reestablished each time it is used). The quality and
consistency of the connection on a dedicated line are better than a dial-up line because dedicated lines
provide a constant connection.

WIRELESS

A wireless connection allows devices to connect to the internet or a network without using physical
cables, typically using Wi-Fi, Bluetooth, or cellular data.

NETWORK, NAMES AND ADDRESSES

To be connected to the internet a computer must be assigned a unique number known as its IP (Internet
Protocol Address).

Users encounter domain names when they use application such as world wide web. Each page of
information on the web is assigned a URL or Uniform Resource Locator that includes the domain names
of which page is located.
 EMAIL

Email (electronic mail) is the exchange of computer-stored messages from one user to one or more
recipients via the internet. Emails are a fast, inexpensive and accessible way to communicate for
business or personal use.

Documents appended to an email-messages are called attachments.

Multipurpose internet mail extensions (MIME) – the standard use for encoding attachment.

OTHER INTERNET APPLICATION

Telnet Application- enables a user to interactively access a remote computer.

File Transfer Protocol (FTP)- used to download files from an internet site to a user’s computer.

Network News discussion groups (newsgroups)- Messages to a newsgroup are not sent directly to a
user. Instead, an ordered list is disseminated to computers around the world that run news server
software.

Voice Over IP (VoIP)- Allows individuals and businesses to make phone calls over the internet.

BANDWIDTH

Bandwidth specifically refers to the capacity at which a network can transmit data.

Computers store all information as binary numbers. Binary number system uses two binary digits 0 and 1
called bits.

Bandwidth of the network- amount of data that a computer network can transfer in a certain amount of
time. It measured in kilobits per second (kbps) or megabits per second (Mbps).

Wide band or broadband- are used to characterize networks with high capacity such as DSL and cable,
and to distinguish them from narrowband networks, such as dial -up modems which have low capacity.

POPULAR USES OF THE INTERNET

World wide web- point or click your way to thousands of hyperlink websites.

E-mail – exchange electronic mail with millions of users.

Use net- participate in discussion forums or post messages.

Internet relay chat – hold real time text conversation with internet users around the world.

File transfer protocol – download data files, programs, reports to computer system

Telnet – log on and use thousands of internet computer system around the world.

Other uses- make long distance call, etc.

TELETYPE, TELEX AND FACSIMILE TRANSMISSION

These are all methods for transmitting text rather than sound.
This text delivery systems evolved from the telegraph.

Teletype and telex system still exist but they have been largely replaced by facsimile machines which are
inexpensive and better to operate over existing telephone network.

MAJOR COMPONENTS OF TELECOMMUNICATIONS NETWORK

Terminal- such as networked personal computers, network computers or video terminals. Any I/O
devices that uses telecommunications networks to transmit or receive data is terminal.

Telecommunications processors- support data transmission and reception between terminals and
computers. Example modems, switches, multiplexers internet work processors, and various devices.

Communication channel- over which data are transmitted and received. Telecom channels use
combinations of media, copper wires, coaxial cables, fiber optic cables, microwave system, cellular
phone system, communication satellites, etc.

Computers – of all sizes and types are interconnected by telecommunications network so that they can
carry out their information processing assignments.

Telecommunications control software, consists of programs that control telecommunication activities

and manage the functions of telecommunication network.

TELECOMMUNICATION PROCESSORS

Modems- most common type of communication processor. Convert digital signals from computer or
transmission terminal at one end of a communicator link.

Multiplexers – communication processors that allows a single communication channel to carry

simultaneous data transmission from many terminals.

Internet work processor – interconnected by special purpose communication process were called
internet work processor such as switchers, routers, hub and gateways.

Switch – communication processor that makes connections between telecommunication circuit in a

network swat telecommunication message can reach its intended destination.

Router – more intelligent processor that interconnects network based on different rules or protocols.

Gateway – network that use different communication architectures are interconnected by using
communication processor.

TELECOMMUNICATION MEDIA

Twisted pair wire – ordinary telephone wire or copper wire twister into pairs it is the most widely used
media of telecommunication.

Coaxial cable- consists of a sturdy copper or aluminum wire wrapped with spacers to insulate and
protect it. These high-quality lines can be placed underground and laid on floors of lakes and oceans.
Fiber optics- uses cables consisting of one or more hair thin filaments of glass fiber wrapped in a
protective jacket. It’s disadvantage optic fiber has been the difficulty of splicing the cable to make
connections.

Communication satellite – also use microwave radio as their telecommunication medium.

Cellular phone system- use several radio communication technologies.

Wireless LAN’S- wiring an office or building for a local area network is open a different and costly task.

TYPES OF TELECOMMUNICATION NETWORK

1. WIDE AREA NETWORK WAN) - This network is commonly used by large businesses to connect their
networks.

2. LOCAL AREA NETWORK (LAN) - Are computer network that connect devices within a limited are.

3. INTRANETS - Is a private network that is used with an organization.

4. EXTRANETS - A networks that can linked like customer, suppliers or business partners.

TELECOMMUNICATION SOFTWARE- Is a software refers to computer programs and application that

facilitate communication and exchange of information over various telecommunication network.

BASIC TYPE OF NETWORK TOPOLOGIES OR STRUCTURE

1. POINT TO POINT LINES- Each terminal is connected by its own line to computer system.

2. MULTI DROP LINES - several terminals share each data communications like to a computer.

3 BASIC TOPOLOGIES USED IN WAN AND LAN

1. STAR NETWORK - ties end user computers to a central computer.

2. RING NETWORK - ties local computer processes together in a ring on a more equal basis.

3. BUS NETWORK - This network local processes share the same bus or communication channel.

NETWORK ARCHITECTURES AND PROTOCOLS

NETWORK ARCHITECTURE - The goals is to promote an open simple flexible, and efficient to
telecommunication environment.

PROTOCOLS - This protocol is a set of rules and procedures for the control of communication in a
network.

FIVE LEVELs OF PROTOCOL OF TCP/ IP

1. APPLICATION OR PROCESS LAYER

2.HOST TO HOST TRANSFER LAYER

3.INTERNET PROTOCOL

4. NETWORK INTERFACE
5. PHYSICAL LAYER

BANDWIDTH - speed and capity of telecommunication network or a frequency range.

BPS - a data transmission rates and typically measured in bits per sound.

COMMON SOFTWARE FUNCTIONS

1. ACCESS CONTROL- connection between terminals and computer in a network.

2. TRANSMISSION CONTROL- allows the computer and terminal send and receive, command, manages
data and program.

3. NETWORK MANAGEMENT - manages communication in a telecommunication network.

4. ERROR CONTROL- involves detection and correction of transmission errors.

5. SECURITY MANAGEMENT - Protect a communication network from unauthorized access.