BIS Regent

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Programme Bachelor of Commerce

Module NameSpecial AssignmentBusiness Information Systems

Surname Paulus

First Name(s) Selma

Student Number CIBM2120381

Date Submitted 04/10/13Postal Address

P.O. Box 63375

Namibia

Email [email protected]

Contact NumbersCell: +264 81 286 8445

Alternate Contact: Lukas Shinana

Husband

+264 81 376 0146

I hereby confirm that the assignment submitted herein is my own original work.

Signature of Student:Selma Paulus....................Date: 04/10/13.

Date Received:.....................

Date Returned:.....................


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Table of Contents

Question One .................................................................................................................. 3

1.1 Difference between a LAN & a WAN and how WIMAX can help improve

networking ................................................................................................................... 3

1.2 The five information functions ................................................................................ 4

1.3 The concept of software bundles or suites and the advantages software suites

offer as compared to standalone software ................................................................... 4

Question Two .................................................................................................................. 6

2.1 Primary Value chain activities ................................................................................ 6

2.2 Facebook: Electronic Bulletin Board ...................................................................... 6

2.3 Electronic Funds Transfer ...................................................................................... 7

Question Three ............................................................................................................... 8

3.1 E-commerce business models ............................................................................... 8

3.2 Three types of extranets ........................................................................................ 8

3.3 Modelling tools to provide a graphic presentation of a system .............................. 8

3.4 The Systems Development Life Cycle ................................................................... 9

References .................................................................................................................... 13


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Question One

1.1 Difference between a LAN & a WAN and how WIMAX can help improve

networking

LAN (Local Area Network) is a computer network covering a small geographic area, like

a home, office, school, or group of buildings whereas WAN (Wide Area Network) is a

computer network that covers a broad area (e.g., any network whose communications

links cross metropolitan, regional, or national boundaries over a long distance).

LAN tends to use certain connectivity technologies, primarily Ethernet and Token

Ring while WANs tend to use technologies like MPLS, ATM, Frame Relay and

X.25 for connectivity over longer distances.

In terms of connection, one LAN can be connected to other LANs over any

distance via telephone lines and radio waves. Computers connected to a wide-

area network are often connected through public networks, such as the

telephone system. They can also be connected through leased lines or satellites.

LANs tend to have fewer problems associated with them, as there are smaller

numbers of systems to deal with whereas WANs tend to be less fault tolerant as

they consist of large number of systems.

There are a number of advantages on use WiMAX; moreover the most important is the

combination of low cost and flexibility. WiMAX broadband networks can be quickly built

at relatively low cost by installing few wireless base stations providing coverage to the

surrounding area with multifunctional application: high-speed Internet, telephone

service, voice and data transfer, and video applications.

WiMAX enables high-speed voice and data transfer over long distances in remote and

scarcely populated areas, as well as in densely populated areas. The wireless

connectivity is not affected by the weather conditions and does not need direct line in

order to work; it allows real access to end users through its own infrastructure.


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1.2 The five information functions

Acquisition:Acquisition is a process of capturing data about an event that is important

to the organisation. Capturing is done by the people component.

Processing:Is a computer activity that manipulates and organises information in ways

that are understandable to the end users. Processing can take raw data and manipulate

it into useful arranged information. Processing depends on the hardware quality of the

organisation's computer infrastructure.

Storage and retrieval: Information needs to be stored temporarily or permanently.

Temporary storage is usually done during processing where information accumulates

and gets used until all data is captured. Permanent storage is done on computer hard

disks so that it can be retrieved in the future for other future uses.

Presentation:This is a way of showing information to the end user in a format that is

organised. Presentations can be created using different program software like Microsoft

PowerPoint.

Transmission: Information may need to be shares be it within the company or with

suppliers and customers. The transmission function enables information to be sent to

various locations intended by the organisation. This can be via email, intranet, extranets

etc.

1.3 The concept of software bundles or suites and the advantages software suites

offer as compared to standalone software

A software suite is a collection of computer programs, which shares a common user

interface and one with the ability to share data with each other. One of the most

common software suites is Microsoft office.

The main benefit of software suites is in the integration of some data sets between the

programs. While most software will be able to cut and paste different sets of data fairly

easily, software suites take it a step further. Often, the data will retain any other

information, such as formatting and any other embedded information. While it may not


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be guaranteed to carry over, it will in most cases. This may be harder to accomplish, if

not impossible, among completely non-related programs.

The other benefit of software suites is the cost savings that often come with purchasing

the programs in a bundle. To purchase each program individually would likely cost

much more. Depending on which suite is used, the programs included can be anywhere

from two programs to more than five.

It should be noted that while purchasing the software titles bundled in a suite is a much

more cost effective method than purchasing them standalone, they may not all be

needed. In most cases, all titles in a software suite are usually available separately.


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Question Two

2.1 Primary Value chain activities

The value chain model highlights specific activities in the business where competitive

strategies can best be applied (Laudon & Laudon, 2010) and where information

systems are most likely to have a strategic impact. This model identifies specific, critical

leverage points where a firm can use information technology most effectively to

enhance its competitive position. The value chain model views the firm as a series or

chain of basic activities that add a margin of value to a firms products or services.

These activities can be categorized as either primary activities or support activities.

Primary activities are most directly related to the production and distribution of the firms

products and services, which create value for the customer. Primary activities include

inbound logistics, operations, outbound logistics, sales and marketing, and service.

Inbound logistics includes receiving and storing materials for distribution to production.

Operations transforms inputs into finished products. Outbound logistics entails storing

and distributing finished products. Sales and marketing includes promoting and selling

the firms products. The service activity includes maintenance and repair of the firms

goods and services

Information systems can be used at each stage of the value chain to improve

operational efficiency, lower costs, improve profit margins, and forge a closer

relationship with customers and suppliers. Organizations can use information systems

to help examine how value-adding activities are performed at each stage of the value

chain. Information systems can improve the relationship with customers (customer

relationship management systems) and with suppliers (supply chain management

systems) who may be outside the value chain but belong to an extended value chain.

Information systems can help businesses track benchmarks in the organization andidentify best practices of their particular industries.

2.2 Facebook: Electronic Bulletin Board

Electronic bulletin boards (also known as message boards or computer forums) are

communication systems online where one can share, request, or discuss information on


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Question Three

3.1 E-commerce business models

Business-to-consumer (B2C) electronic commerce involves retailing products and

services to individual shoppers. BarnesandNoble.com, which sells books, software, and

music to individual consumers, is an example of B2C e-commerce

Business-to-business (B2B) electronic commerce involves sales of goods and services

among businesses. ChemConnects Web site for buying and selling chemicals and

plastics is an example of B2B e-commerce.

Consumer-to-consumer (C2C) electronic commerce involves consumers selling directly

to consumers. For example, eBay, the giant Web auction site, enables people to sell

their goods to other consumers by auctioning their merchandise off to the highest

bidder, or for a fixed price.

3.2 Three types of extranets

Virtual private network (VPN): A secure, encrypted, private network that has been

configured within a public network to take advantage of the economies of scale and

management facilities of large networks, such as the Internet.

Secure Private Networks: An extranet can also be set up as SPN by physically

attaching the intranets with private, leased telephone lines.

Public Network: By using a public communications network such as a public utility

telecommunication network or the internet, an extranet may be set up.

3.3 Modelling tools to provide a graphic presentation of a system

Data flow Diagram

The primary tool for representing a systems component processes and the flow of data

between them is the data flow diagram (DFD). The data flow diagram offers a logical

graphic model of information flow, partitioning a system into modules that show

manageable levels of detail. It rigorously specifies the processes or transformations that

occur within each module and the interfaces that exist between them.


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System flowchart

A flowchart is a type of diagram that represents an algorithm or process, showing the

steps as boxes of various kinds, and their order by connecting them with arrows. This

diagrammatic representation illustrates a solution to a given problem.

Data dictionary

A data dictionary, or metadata repository, is a centralized repository of information

about data such as meaning, relationships to other data, origin, usage, and format.

Decision tables

Decision tables are a precise yet compact way to model complicated logic. Decision

tables associate conditions with actions to perform, but in many cases do so in a more

elegant way. Each decision corresponds to a variable, relation or predicate whose

possible values are listed among the condition alternatives. Each action is a procedure

or operation to perform, and the entries specify whether (or in what order) the action is

to be performed for the set of condition alternatives the entry corresponds to.

Computer-aided software engineering (CASE)

Provides software tools to automate the methodologies we have just described to

reduce the amount of repetitive work the developer needs to do.

3.4 The Systems Development Life Cycle

The systems development lifecycle (SDLC) illustrates the process of system

development broken down into key phases. The key phases identified in REGENT

(2006: 133) include investigation, analysis, design, development, implementation,

maintenance and retirement.

Investigation

The investigation phase is about finding out the unknown. A problem should exist to

prompt the need for systems development. The problem is defined by examining the

current system and compare against company requirements, any discrepancy between


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desired and current system need to be addressed. However, it should be feasible to

improve or replace the current system thus the systems analyst checks for technical,

economic, operational and organisational feasibility of the envisaged development.

Analysis

The aim of the systems analysis process is to create an information model derived from

evidence from the requirements stage on which the information design can be based,

meeting the needs of both the business and the end-user. Fisher (2003) outlines the

process of creating an information model moving from less well defined information

requirements to a rationalized and optimized definition of these needs. The

requirements of each subsystem of the proposed system like input/output, processing,

storage and control requirements.

Design

The design phase is a complex and critical step in determining which system design,

based on systems engineering and technology analysis, meets the user and system

requirements. For non-technical solutions, the design may simply be a support process

to be implemented over time. The design may be presented as several options with

trade-off analysis or a specific configuration, and may consist of Commercial-off-the-

shelf (COTS) products (preferred approach) or customized development. Procurement

options and cost information should be identified as determined by resource

requirements and the design. The most significant milestone in this phase is the

recommendation of what to do or buy in order to meet the user and system

requirements.

Development

The development phase is the execution of the approved design and in some cases

may blend into the implementation phase. A smaller test system is sometimes a good

idea in order to get a proof-of-concept validation prior to committing funds for large

scale fielding of a system without knowing if it really works as intended by the user. The

validation, verification, and testing plan should drive the system testing and be


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conducted against the system/data and technical requirements to ensure the system is

built to specification. System testing should also be conducted against the user

requirements to ensure the system is operationally satisfactory. The prototype or pilot

concept also allows for refinements or adjustments based on user feedback prior to a

larger scale implementation. The key output of this phase is validation of the design

prior to full commitment.

Implementation

Implementation includes all necessary activity to procure, receive, configure, and install

the new or revised system. For non-technical solutions, implementation may be limited

to a new support process requiring a change in the business process. A transition or

cut-over plan, including any required data conversion, will also be required to ensure a

smooth transition to the new system without interrupting services. The development of

appropriate documentation, such as manuals for operations and maintenance, are

required for successful transition. The impact of running old and new systems

simultaneously should also be analyzed to determine if there would be excessive

burden in operating expenses or personnel support. The key output of this phase is a

successful transition to the new system with uninterrupted service.

Maintenance

The maintenance phase is a dedicated effort to keep the system operating at an

optimum level by conducting maintenance and enhancements as determined by

periodic reviews. For non-technical solutions, maintenance may be the continuation of a

support process. Maintenance may also include changes to the system based on

technology advancement and can be addressed through system enhancements or

redesign initiatives.

Retirement

This phase comes when the system cannot be readjusted or maintained anymore. At

that point a new system needs to be developed and a new cycle begins. This is where

the system has become obsolete. Whatever the reason, putting the system to bed


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involves more than just shutting off the server. Often, the system may be kept going due

to regulatory issues or because there are still projects using it. Even if the system will be

shut down due to the development of a better system, retirement needs planning.


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References

Faulconbridge, R. I. and Ryan, M.J. (2003). Managing Complex Technical Projects: A

Systems Engineering Approach. London: Artech House.

Heagny, J. (2012). Fundamentals of Information systems. 4th

Edition. New York:

American Management Association.

REGENT (2006). Business Information Sytems. Study Guide. Durban: Management

College of Southern Africa.

Porter, P (1985). A guide to the generic strategies. New York: McGraw Hill

Schwalbe, K. (2009). Introduction to Accounting Information systems. 2nd Edition.

Boston: Cengage Learning

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