Business Information Systems Essay

Q1. Describe the different departments in a company and why they must work together to achieve success, and discuss how information systems can improve each departments business operations.

Q2. Explain systems thinking and discuss how management information systems (MIS) enables business communications.

Q3. Describe Porters Five Forces Model and explain each of the five forces, giving an example of each.


Q1. Discuss the three (3) benefits and three (3) challenges of a connected world.

Q2. Differentiate between disruptive and sustaining technologies, and describe three (3) potential disruptive technologies that the McKinsey Report: “12 Disruptive Technologies by 2025” suggests could deliver significant economic impacts to the global economy.

Q3. Describe, giving an example of how each is used, the four (4) common characteristics of Web 2.0.


Q1. Compare and contrast, giving an example for each, the four (4) categories of e-business models.

Q2. Discuss, giving an example of each, the five (5) challenges facing e-businesses.

Q3. Discuss, giving an example of each, five (5) of the six (6) benefits of business mobility.

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Business Information Systems

Q1. Describe the different departments in a company and why they must work together to achieve success, and discuss how information systems can improve each department’s business operations.

Departments in an organization are interdependent, and they must work together to create a holistic and synergistic structure with an increased productivity. The commonunits in a typical organization include accounting, finance, sales, human resource, operations management, and management information systems (Baltzan, Lynch and Fisher p. 15). The accounting department deals with the quantitative data about the finances of an enterprise. The finance department is involved with the strategic financial issues regarding increasing the business value. Sales department sells goods and services with the aim ofexpanding the company’s revenue.A human resource deals with employee management. Operations management is the planning of resources that change resources into useful products. Lastly, management information systems is a discipline that involves theapplication of people, technologies, and processes to solve business problems. The information systems are significant as they link up these departments to enable sharing of the information, thus allowing theunits to perform the business operations more effectively and efficiently.

Q2. Explain systems thinking and discuss how management information systems (MIS) enables business communications.

Systems thinking is a process of checking the whole system by observing different inputs in the process to give outputs while continually collecting feedback on each section (Baltzan, Lynch and Fisher p. 16).Systems thinking offer an end-to-end perspective of how activities are undertaken to come up with a product or service.Management information systems are essential in thefacilitation of communications since they allow implementation of solutions that consider the entire procedure, not just one element. Therefore, MIS play an essential function of deploying operations and enabling exchange and improving business intelligence.

Q3. Describe Porter’s Five Forces Model and explain each of the five forces, giving an example of each.

Businesses implement the Porter’s Five Forces Model to gain competitive intelligence and combat competition in the industry. The model is used to determine the industrial attractiveness. The model consists the following (Baltzan, Lynch and Fisher p. 28):

  1. Buyer power: the buyer power is high when there are many sellers in the market, and it is minimal when their choices are limited to few sellers. For example, when buyers can easily switch between the sellers, then their power is considered to be high.
  2. Supplier power: there is a relationship between a company (buyer) and the supplier when a company buys raw materials. With high power, a supplier can influence the industry by increasing the prices of the inputs or shifting the cost to other industry partakers.
  3. The threat of substitute products or services: the threat of alternatives is high when there are many substitutes for a product or provision, and minimal when only a fewother options exist. For example, the smartphone dealers face the threat of their customers switching to the many alternative devices in the market
  4. The threat of new entrants: when it is easy for new competitors to enter in a market, the risk of new entrant is high, but the threat is minimal when there are notable hindrances to market entry. For instance, in the banking industry, a bank that offers mobile banking will enjoy acompetitive advantage for some time but will face stiff competition because the technology is available for new banks as well.
  5. Rivalry among the existing competitors: the rivalry among the current parties is high when there is a fierce rivalry in the market and low when there is complacency in competition.For example, there is a stiff competition in the Australian grocery market between Coles and Woolworths.

Q1. Discuss the three (3) benefits and three (3) challenges of a connected world.

The benefits include sharing resources, providing opportunities, and minimizing travel (Baltzan, Lynch and Fisher p. 46). Sharing of resources avails all applications, tools, and data on the network, irrespective of the physical location of the resource or the person. Again, connecting businesses avail opportunities to producers that procure parts from different dealers. Also, networks give efficient means of exchange between companies regardless of location or distance.

On the other hand, the challenges include security, legal issues, and social, moral, and political challenges (Baltzan, Lynch and Fisher p. 47). First, networks are apossible target for security breach and fraud. Second, there is a possibility of breaching privacy, intellectual property and copyright by sharing resources over systems, like theinternet.Third,a business might be in social, ethical, and political wrangles, which can jeopardize its used for the operations.

Q2. Differentiate between disruptive and sustaining technologies, and describe three (3) potential disruptive technologies that the McKinsey Report: “12 Disruptive Technologies by 2025” suggests could deliver significant economic impacts to the global economy.

A disruptive technology offers on a new method of performing operations that at first does not meet the needs of the existing clientsby erasing the currentmarkets and establishing new ones (Baltzan, Lynch and Fisher p. 52). On the other hand, sustaining technology offers an improved product that consumers need to buy, such an improved car model. Some of the disruptive technologies that could result in significant economic impact include mobile internet, automation of knowledge work, and the internet of things. As projected, the mobile web will likely have aneconomicimpact of an annual of between $3.7 to 10.8 trillion annually; the automation of knowledge work of between $5.2 to 6.7 trillion; and the Internet of Things of between $2.7 to 6.2 trillion yearly (p 53).

Q3. Describe, giving an example of how each is used, the four (4) common characteristics of Web 2.0.

Generally, Web 2.0 is characterized by new features such as alliance and sharing.The specific characteristics include (Baltzan, Lynch and Fisher p. 55):

  1. Content sharing through open sourcing: Web 2.0 has an open system that consists a non-proprietary hardware and software founded on publicly known policies that permit third parties to make add-on items to plug in to interoperate with the system. For example, use of smartphone applications which are developed by third-party developers.
  2. User-generated content: masses post web content for other masses.The user-generated information is written and updated by many users for others. For instance, Wikipedia moves the management of online content from the hands of the leaders to the hands of users.
  3. Third, collaboration within the company, whichis supported by the collective knowledge that allows tapping into the core knowledge of all employees and clients. For instance, this could be achieved through knowledge management system, which allows capturing, management and distribution of information throughout the organization.
  4. Lastly, collective knowledge outside a business (crowdsourcing), which means getting knowledge from the public.For instance, the belief that better ideas come from the top by continually using the abilities of Web 2.0 to use crowdsourcing by allowing people from outside to take part in solving a business problem, with thelikelihood of getting diversified and better results.

Q1. Compare and contrast, giving an example for each, the four (4) categories of e-business models.

The business models include business-to-customer, business-to-business, customer-to-customer, and customer-to-business(Baltzan, Lynch and Fisher p. 63). For a business-to-business (B2B) model, the e-business makes sales direct to the online customers. For instance, Amazon is an example of an e-commerce company that sells products to the online community. For the business-to-business (B2B) e-commerce model, enterprises use the web to carry out transactions with one another. An example of a B2B e-business is an enterprise that is paid to carry out a business operation for another business enterprise. Customer-to-customer (C2C) is an e-commerce model that allows customers to behave like buyers and sellers at the same time. Bidding commerce site like eBay is an example of a C2C e-business model. Finally, in customer-to-business model, the consumers sell their product over the internet to businesses. An example of an enterprise with such a model is Priceline Company.

Q2. Discuss, giving an example of each, the five (5) challenges facing e-businesses.

The e-commerce faces several challenges including (Baltzan, Lynch and Fisher p. 66):

  1. Lack of verification measures: sometimes it is hard to verify the credibility of a registered customer. For example, an e-commerce company is unable to know whether the customer will honor the pledge of pay on delivery.
  2. Product returns and refunds: when this happens, it might have a big blow to the shipment cost and well as company’s reputation. For instance, a customer might return the product if he or she is not satisfied or the wrong product is delivered.
  3. Lack of integration: lack of proper integration of various departments within an organization might frustrate the customer expectations and satisfaction. For example, failure to integrate sales, order management, and dispatch systems might lead to delayed deliveries.
  4. Disregarding customer needs: failure to consider the complaints and concerns from customers might negatively affect the customers regard for the business, which can lead to them switching sellers. For example, when a customer’s complaint goes ignored, it will compromise the quality of the business, which destroys the company’s reputation.
  5. Customer loyalty: with the cost of switching being insignificant in the e-business industry, it is vital that businesses keep their products at a better quality than its rivals, providing reward systems, and proper marketing strategies. For example, an e-commerce business that does not perform regular advertisement, marketing and promotion is likely to be overtaken by its rivals.

Q3. Discuss, giving an example of each, five (5) of the six (6) benefits of business mobility.

Business mobility implies that businesses are employing the use of mobile technologies. There are several benefits which a companyenjoys this move. They include (Baltzan, Lynch and Fisher p. 74):

  1. Allows immediate data access; with mobility, it is possible to access data pervasively and remotely. For example, a manager can receive monthly reports while traveling on his mobile device.
  2. Improves workflow: with improved coordination, the workflow is improved, which increases the company’s profitability.
  3. Provides more opportunities: mobility offers a chance to reach new markets and get new suppliers. For example, with movement, a company can allow staff to work from home, and thus save the cost of renting extra office space.
  4. Enhances mobility: mobility challenges the traditional method of stay in the office the entire time, for example, allows movement while still performing business operations.
  5. Improves location and monitoring ability: with theimplementation of proper information systems, a business can monitor its operations and employees with much ease and accuracy and accurately. For example, a manager can easily track its delivery van while on the way to customer’s home.

Works Cited

Baltzan, Lynch and Fisher. Business-Driven Information Systems. n.d. Print.

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