1 Answer 1a: (Word Count 351)
Cloud computing is a modern day internet technology that can be applied to vast range of purposes. However, the main purpose is to store massive amounts of information on virtual and internet based servers that can be accessed on demand by clients. Cloud computing services emerged in the year 2000 and have grown by leaps and bounds since then. According to Valquero et al., cloud computing is ‘a large pool of easily usable and accessible virtualized resources such as hardware, development platforms and/ or services. These resources can be dynamically reconfigured to adjust to a variable load (scale), allowing also for an optimum resource utilization. This pool of resources is typically exploited by a pay-per-use model in which guarantees are offered by the Infrastructure Provider by means of customized Service Level Agreements’ . The role of cloud computing in modern businesses, specifically ICT has evolved based on the growing demanding of consumers and the changing nature of this demand.
On demand: Cloud computing is often provided as Infrastructure as a Service (IaaS) model which enables IT teams to use our state of the art IT infrastructure as a service which is available on demand. With no procurement time, no expenditure on purchase, organizations can use added infrastructure and pay for the duration they use it for.
In Control: Clouds give organizations the freedom to control the how and when of usage with instant deployment of servers for new applications or meeting fluctuating traffic loads and still save up to 40% on orthodox server and hosting costs.
High Elasticity: The huge server space of Clouds enables organizations to upscale or downscale within minutes so that usage is always in tune with demand.
Optimum Reliability: Most Cloud services come with guaranteed SLAs with round the clock NOC and helpdesk.
Anywhere Accessibility: IT hosted with Cloud gives organizations the freedom to access it from any place with a network connection, across branches, states, countries and continents.
1.1 Answer 1b: (Word Count 305)
The problem faced by the person in this example is not out of the ordinary. In most organizations, the decision of applying new technology to pre-existing processes rests in the hands of managers. While ICT is known to add efficiency and effectiveness to an organization, allowing it to innovate its processes, it relies heavily in the readiness of managers who control several aspects of the organization. Managers often fail to fully utilize or even realize the full potential of implementing and accepting new technologies.
As such, with their limited and often skewed knowledge of the technologies available, their uses and their implications, managers are often not able to properly articulate what exactly they are looking for through ICT. They may not even know that several of their manual tasks can be reduced through automation and streamlining of processes. On the other hand, actual users have a clear idea on what they need to improve their performance levels and efficiencies.
2 Answer 2A) (Word Count 396)
The notion of ‘productivity paradox’ emerged on the edge of 1980’s and 1990’s to observe computer-assisted collaboration with other business process analysis. It was therefore proved that due to introduction of cutting edge information technologies overall worker productivity declines . It was Robert Solow who initially proved the misuse of computers the productivity statistics. In particular, he stated that information and computer technologies did not affect productivity. At that, he proved the relationship between slowdown of productivity growth with the increase of investments flown in IT sector. Paradoxically therefore information technologies have no affect on productivity.
Previously the popular opinion was that digitalization could potentially lead to productivity improvement, as well as considerably affect macro-economic productivity statistics. Thus, since 1990s computers have significantly contributed to productivity indicators as well as firm-level output . Though, at that time such effects were industry-limited. Nowadays, however, mass digitalization has indulged 21st century economy and potentially supersedes the effects of the 20th century mechanization. This is the positive outcome of network effect due to the mass application of smart cards, Internet, and broadband telecommunications etc on both private and corporate levels. Since new applications are developed the more users befit from more value. Therefore, ‘productivity paradox’ will be soon substituted by wage and productivity boom under the conditions of rapid e-commerce development.
Post the year 2000, organizations became increasingly virtualized. As IT gained a stronger hold on the overall operation of a company, it became increasingly difficult to strike a balance between fast paced technological evolution and maintaining a strict IT budget. Outsourcing of backend operations and processes to developing countries, primarily India and China became popular during the late 1990s and early 2000s. Organizations are deemed genuinely virtual as long as they are able to outsource key components of their production processes. Companies establish virtual forms to reap benefits from acquiring goods and services from specialized producers capable to make such inputs in the most efficient manner. Furthermore, telecommunications networks software and hardware considerably decrease the otherwise required costs for coordination, which enables companies to attain the desired production benefits excluding the incurring higher transaction costs conventionally related to buying from external suppliers. Cloud computing and virtualization are the latest and most influential developments in the ICT field, allowing organizations to store massive amounts of data on virtual servers, access them remotely and on demand.
2.2 Answer 2B) (Word count 245 + Image)
The process of allocating resources to support chosen business strategies is known as Strategy Implementation. However, the process itself constitutes all the management functions such as planning, controlling, organizing, motivating, leading, directing, communicating as well as innovating. When firms adopt similar business strategies in different lines of business, they have adopted what we might term a generic business strategy across all their businesses.One of the most prominent strategies used by corporations the world over is Michael Porter’s Generic Strategies. According to Porter, any organization’s key strengths fall under two segments, namely: a) Cost advantage, and b) Differentiation. When an organization employs these strengths across its businesses, three generic strategies arise, namely: a) Cost Leadership, b) Differentiation, and c) Focus. These strategies can be applied at the business unit level, across firms and industry, as they are generic in nature. The strategies can be further explained as follows:
Cost Leadership Strategy: This strategy advocates the firm being the producer of the lowest priced product at a set quality level.
Differentiation Strategy: This strategy advocated the uniqueness of a product that will be valued by consumers and will develop a repute of being better than rival products.
Focus Strategy: This strategy requires the business to focus its strategy on a narrow segment of the market to attain either a cost or differentiation advantage.
The following table illustrates how the three strategies fare against industry forces that an organization faces on the oath to success:
3 Answer 3A, i) (Word count 289)
Tangible benefits are calculated based on the dollar value placed on the gains. They are measured in currency, unlike intangible benefits that are cannot be measured monetarily. Tangible benefits could include:
Overtime reduced due to a fresh scheduling system.
Improvement in service levels and reduction in manual labour achieved through an online package tracking system.
Elimination of over stocking and delays in production by implementing a warehouse management system of WMS.
There are several methods of evaluating the tangible benefits of an information systems projects, such as: a) return on investment, b) cost-benefit analysis, c) return on management, and d) information economics. The most popular and prevalent of these is the cost-benefit analysis. In this method, the benefits arising from a project are quantified and are compared to the costs arising from it. If the benefits outweigh the costs, then the project is deemed to be feasible and even profitable.
The effectiveness of cost benefit analysis has been debated in several sectors and industries. This specially applies to those industries that mainly have non-tangible benefits of introducing information systems. These industries include healthcare, non-profit organizations, charities and on. However, in most profit making industries, cost benefit analysis of a project proves to be quite effective. To begin with, most of the benefits arising out of the implementation of such systems is generally tangible Time saved by automation of manual tasks, minimization of the risk of human error or the loss of data are some of the examples of tangible benefits of implementing information systems. Hence, analysing the cost benefit of such projects is more likely to be accurate, giving the organization a clearer picture of the profitability and worth of taking on an information systems project.
3.2 Answer 3A, ii) (Word count 300)
Network design and software is a complex subject. It has taken the corporate world some time to realize the importance of having a good network configuration with well balanced packages and services. Yet, there are many managers who do not realize that effective network management is not a job that can be performed by consultants or common carriers, it requires in-depth understanding and knowledge of both, the organizations network requirements as well as the solutions available that would be a best fit to meet these needs. It not enough to have a network that functions, it is crucial to have a network that functions optimally.
Network optimization can be a nightmare for network managers. Optimization does not only entail streamlining current network set up but also takes into account future requirements. However, non-IT senior management often treat the term ‘optimization’ as cutting costs and so may not be able to understand that, in order to optimize the current set up, they may actually have to make further investments. Hence, a network manager needs to approach the issue of expenditure on new networks tactfully.
3.3 Answer 3B) (Word count 151)
The implementation of new information systems is not an easy task. It requires a great deal of planning, controlling and testing. To begin with, determining whether a given system is actually a worthwhile requirement from an organizational point of view needs in depth analysis of existing IT systems as well as user requirements. Data collection at this point needs to be accurate so that the information that will form the basis of the information system. Once the designing phase is completed, it should be validated through a series of checks that ensure that all the objectives of creating the system have been addressed. The building phase of the system requires several rounds of testing to make sure that the system functions seamlessly. Once the system has been built, a final test using a target group of future users is to be conducted to make sure the system is functioning as intended.
4 Answer 4 A) (Word count 303)
IT has grown to become one of the vital organs of any organization. With growing markets and co petition, organizations are hard pressed to optimally utilize their IT budgets while gaining maximum benefit at the same time. This applies all the more to organizations whose main business is IT itself. Such organizations need constant analysing and fine tuning of their IT as this affects their business directly. On corporate level, companies are using ICT applications to advance document workflow, management capacity and input rates. Under the conditions of today’s technological growth for information and technology, information technologies are important in developing and implementing business strategies. According to the expert data provided by The Organization for Economic Co-operation and Development IT sector evidenced 6% growth in 2006. Pursuant to the report, “the growth areas included internet-related investments, Linux servers, digital storage, personal digital assistants, and new portable consumer products” According to U.S. Bureau of Labor Statistics in the USA alone, IT information technologies comprise the fastest growing economic sector with 68% increase in output increase within 2002-2012. Business/IT alignment primarily ensures that every action of IT individuals provides a focus on creation and delivery of stakeholder and/or shareholder value by achieving business goals and/or supporting business operations.
IT became an essential part of corporate business strategy. The vast and rapid development of Information technologies should therefore be regarded as an initial and core prerequisite of corporate business/IT alignment. This assumption includes the role played by e-business opportunities in the corporate strategic developments. Though, initially it was Internet as a driver that changed the state of alignment in the 1990s when information technology gained the status of an advantageous competitive tool recognized by the majority of CEOs. Thus, the alignment reflects the company’s need to progress and makes CEOs reconsider the importance of back-office functions.
4.2 Answer 4 B) (Word count 429)
IT business agenda is a sustainable framework that ensures considerable profitability and productivity benefits. Thus attainment of proper alignment often seems complicated due to various opposing viewpoints expressed by corporate executives regarding the role of IT in business. At that, sufficient alignment initially depends on the role of IT in business. In spite of the fact that alignment is considered of utmost importance, IT executives’ efforts to attain the appropriate level are hardly productive. At that overwhelming majority of stress on the assumption that evident impact can be attained whenever IT strategy serves the corporate strategy. Notwithstanding the positive implications of IT alignment with business, most businesses are actually failing to get to the top. Overall, IT alignment benefits only mere 10% of IT leaders.
IT should be reckoned as a critical capability applied for business operations to enhance the company’s competitive advantages, as well as increase current revenues. Most importantly, proper alignment provides sufficient basis to build up IT value. The overwhelming majority of IT experts (96%) recognize that a “significant positive bottom-line effect can be attained by a company providing that IT strategy is particularly designated to fulfil the objectives corporate strategy. Furthermore, 90% of IT experts claim that positive bottom-line effect can be attained under the condition that IT operational goals match corporate business goals. Another 89% state that significant positive effect can be attained by a company due to the alignment of IT operations and a company to a definite corporate strategy. These figures indicate overall high awareness of IT executives regarding the importance of involvement of IT needs in business needs and business planning as well as IT planning. Thus, both business management and IT management are synchronized regarding IT role in business.
4.3 Answer 4 C) (Word count 59)
Strategic Systems are a corporate initiative aimed at giving a company a competitive edge. This is accomplished by delivering a low cost service that is unique, targets a specific market segment or is an innovation. Strategic Information Systems or SIS are information systems that are created for the purposes of implementing business strategies devised to optimize a company’s operations.
Bibliography
Brynjolfsson, E., & Hitt, L. (1998). “Beyond the Productivity Paradox: Computers Are the Catalyst For Bigger Changes. Communications of the ACM, Vol. 41, No. 8 , 48-55.
Landauer, T. (1995). The trouble with computers: Usefulness, usability and productivity. Cambridge, MA: MIT Press.
Martin, J., & Martin, F. (2010). Organizational Behaviour & Management, 4th Edition. Hampshire: South Western Cengage Learning.
Valquero, L. M., Rodero-Merino, L., Caceres, J., & Lindner, M. (2009). A break in the clouds, towards a cloud definition. Computer Communications Review, Vol. 39, No. 1 , 50-55.
