Week 2 - Information Systems in business

Explain information technology’s role in business?

Information technology is everywhere in business. I.T. is a support function of business so therefore it makes business easier to conduct as the information is easily accessible within a business framework, whilst also being a valuable tool in organising business information. I.T. is also an enabler of business which means that it allows the business organisation to conduct work with I.T., allowing it to become more efficient.

What are Efficiency and Effectiveness Metrics? Provide some examples of each.

The Efficiency IT metric is used to measure the performance of an IT system including the throughput, speed and availability of the system. It is used so that the business or organisation using the IT system can get the most out of each of its resources.

The effectiveness IT metric is used when measuring the impact that IT has on business processes and activities that includes customer satisfaction, conversion rates and sell through increases. This then enables the business to set the right goals and to see how they are accomplished. The effectiveness I.T model allows for easier useability.

Source: google.com

What does Porter’s Five Forces Model attempt to explain? How does the internet affect the model?

Porter’s five forces model was created in the 1980’s. The Porter’s five forces model attempts to explain the attractiveness of an industry and the powers that the buyers and suppliers have within that industry. As a result of the five forces model, industries become more competitive and therefore giving more power to consumer buyers through the internet.

Describe the relationship between business processes and value chains?

A business process is a “standardised set of activities that accomplish a specific task” whilst a value chain “views and organisation as a series of processes, each of which adds value to the product or service.” The relationship between a business process and a value chains is that they both allow for the creation of value if they are effective.

Source: http://www.themanager.org/models/valuechain.htm