Technology Diffusion in a Software Organization - Assignment Example

Title: Survey of IS Theory Course Code: COIS11011 Course Name: Foundation of Business Computing Tutor: Ming Wong Assignment Number: Item 2 Due Date: 20/05/10 Student Name: Mei Mei Choong Student Number: S0014583 Assessment Item 2 – Survey of IS theory Student Name: Mei Mei Choong Student Number: S0014583 Foundation of Business Computing COIS11011 Due: 20/05/2010 I certify that this assignment is my own work, based on my personal study and/ or research, and that I have acknowledged all material and sources used in the preparation of this assignment whether they be books, articles, reports, lecture notes, and any other kind of document, electronic or personal communication. I also certify that the assignment has not previously been submitted for assessment in any other course or at any other time in this course, unless by negotiation, and that I have not copied in part or whole or otherwise plagiarised the work of other students and/ or persons. I have read the CQU policy on plagiarism and understand its implication. I can produce a hard copy of this assignment within 24 hours if requested. TABLE OF CONTENTS 1. Define and contrast technology, information technology and information system. Technology is a broad concept and it encompasses anything that involves practical application of sciences (Wise 1985, p.230). Usually, it is related to the machination and automation of work based on established scientific principles to ease the burden of doing the work for economic and commercial gains. Recent technical developments, particularly the digital revolution, gave birth to Information Technology (IT) and Information Systems (IS). Information system is the collective design, development, and implementation of software and hardware applications necessary to support the function and operations of an automated system like in a robot (Valacich & Schneider 2010, p.38). Information Technology on the other hand is more focused on the design and/or development of a technology using computer information (Valacich & Schneider 2010, p.37). It is easy to identify that Information System is composed of numerous systems which can be a combination of mechanical systems, electrical systems, computer systems, and information technologies working together to create a homogeneous system that achieve common sets of goals. 2. List and define three technical knowledge and/or skills core competencies. Valacich & Schneider (2010, p. 43) outlines a list of the technical knowledge and/or technical core competencies in IS. Three of them are: A) Technical Knowledge and Skills – This consists of deep knowledge and understanding of the purpose and functions as well as the operations of specific hardware, software, and network technologies. Strong technical competence allows organizations to optimize the features of technology. B) Business Knowledge and Skills – This competence refers to the understanding of the overall business process including the nature of operations of the business and the functions of the departments comprising the organization. This also involves technical and managerial understanding of everything within the business (Paul et al 2006, p.4). A strong competence in this area allows a relatively easy integration of the technical competence into the areas of the businesses that would need technical support in IT and IS developments. C) System Knowledge and Skills – This core competency refers to the ability to integrate both technical and business knowledge and skills into the development process of information infrastructures. This involves critical thinking and problem solving capabilities. 3. Describe why databases have become so important to modern organisations. In the simplest sense, a database is a storage location of all data and information (Landers & Rosenberg 1982, p.13). Databases function as storage locations for large volume of data and information, usually derived from different business transactions. Modern organizations are driven by the need to efficiently and effectively use data and information in order to aid them in their decision-making process. The more accurate and timely their information is, the more likely it is that the organization will be able to make successful strategic decisions. But sifting through voluminous data and information to choose which are necessary takes tremendous amount of time and effort. More often than not, organizations do not have the luxury of time to handle voluminous workload of going to the archives and pulling files out that have been stored many years before. With the aid of information databases, decision-making becomes more accurate, relevant, and timely (Valacich & Schneider 2010, p.49). This is because all the information required by the organization is stored in one single location and can be easily retrieved anytime. 4. Describe why companies would choose to implement open-source software over fully licensed software. Business organizations prefer open-source software programs over fully licensed software for two main reasons – cost and flexibility. Business organizations typically want to stretch their budgets and would rather spend less on systems or processes that yield the same result for half the price, or lesser. Open-source software programs are typically made available at low cost compared to fully licensed software programs (Rothwell 2008). Open source software programs are cheaper compared to licensed software programs because open-source programs are somewhat incomplete and invite collaborative completion, based on the internal configurations of the system using it. This flexibility means that open-source programs are incomplete but are ready enough to handle the bulk of programming needs. In simpler terms, open-source software programs can be molded by the business organization to suit its computing requirements. Because anyone can alter the program codes for open-source software, it is relatively easy for a business to develop a complete software program based on its specific information needs and business requirements (Valacich & Schneider 2010, p. 84). 5. Describe the reasons why organisations are choosing to out-source business activities. The 4 most common reasons why companies opt to outsource a part of their normal operation are to reduce their control operating cost, share risk, accommodate peak loads, and develop further the internal staff (Meyer, 2007). Businesses aim to earn much without spending more than necessary in order to become more profitable (and probably satisfy the shareholders or business owners). This is the reason why businesses constantly innovates ways and processes that would give it more profits at a lesser cost. One of the recent innovations in business process is outsourcing. Outsourcing means part of or the whole business process is send to other companies who can work on them at a lesser price than when doing the same process in-house. Hence, it is easier for companies to outsource operations and business processes to other companies that offer the same quality of results for significantly lesser costs (Valacich & Schneider 2010, p. 50) than to perform the same operation at a significantly higher cost. 6. List and contrast three challenges of operating in the digital world. Valacich & Schneider (2010, p.139) listed three major challenges of operating in the digital world. These are governmental, geo-economic, and cultural challengesGovernmental challenges refer to the potential threats and concerns of any IS and IT projects due to the regulatory requirements or political structure and stability of a given government (Worldbank 1992, p.96). Geo-economic challenges on the other hand refer to the physical difficulties of operating digital systems as well as the prevalence of economic disparities between and among social strata which hinders successful development of IT and IS systems (World Bank 1992 p. 147). Cultural challenges pertain to the difficulties in establishing and operating IS and IT systems because of the cultural differences of the individuals involved in the operations. . If any of these issues are not satisfied, there is high likelihood that the any IT and IS projects undertaken in any country or locality would not be completely successful because of the potential threats that could stem from any of these factors. 7. What are the attributes of a “learning organisation”? The strong demands to compete in the tough market and to become more efficient drive organizations to outperform themselves as well as their competition. Most organizations take all the lessons they learned along the process for granted, owing to the fact that such learning comes often. However, some organizations utilize these new lessons and knowledge acquired in order to do better. These organizations are aptly termed as learning organizations. A “Learning Organization” is an organization that uses all relevant information obtained by the organization to continuously improve its overall processes (Valacich & Schneider 2010, p.168). Its main attributes include the acquisition of data and information and the transformation of the organization (whether structure or process) to address the flexible demands or nature of the information acquired. Its progress and development are usually influenced by the internal and external demands to become productive and cost-effective in its operations (O’Keefe 2002, p. 133). Peter Senge (Senge 1990, p.49) identifies five main features of learning organizations which are systems thinking, personal mastery, mental modes, shared vision, and team learning. 8. Why is successful application of innovative technologies and systems often difficult? Innovation is tempting for various reasons. First, innovative ideas open new opportunities. Second, innovation means long-term reduction of costs and expensive processes. While innovative technologies are promising, there is much uncertainty in them that makes it difficult for businesses to adapt or integrate them in the existing business processes (Byrd 2003, p.16). Valacich & Schneider (2010, p.191) argued that organizations experience difficulties in applying innovative technologies and systems because (a) innovation is fleeting, (b) innovation is often risky, (c) and choosing the right type of technical innovation can be difficult and daunting. Every organization has to accept the fact that not all innovative ideas would work so the risk is just too great even before changes are implemented. However, organizations still pushes the implementation of innovation because of the strong potential for rewards once they are able to successfully implement innovation. Companies like Toyota and Wal-Mart (lean management and strong focus on customer service, respectively) were able to lead the competition by introducing innovative ideas and making them work. 9. Explain the differences between the Internet, an intranet, and an extranet, and describe the common bond between all three. The technological progress of local area and wide area computer networking gave birth to newer, more advanced approach to computer networks – internet, intranet, and extranet. Internet, intranet, and extranet are all computer networks that have their intended functions (Valacich & Schneider 2010, p.224). The main similarityamong the three kinds of computer networks is they allow individuals from different locations access to a common database. Internet is a good vehicle for electronic commerce as the general public can access the internet anytime anywhere in the world. The intranet and the extranet are computer networks that allow access to select groups of individuals (Callaghan 2002, p.35). Intranet is very similar to internet except that access is granted to individuals within the organization that have the right access codes. Extranet is similar in function to the intranet but instead of allowing access to individuals within the organization, it gives the outside audience access to certain information if they have the appropriate access codes. 10. Describe m-commerce and explain how it is different from regular e-commerce. E-commerce is an evolved type of commerce where physical presence is no longer needed to perform any commercial activity. Individuals needing to perform their usual commercial activities like depositing money, purchasing goods and services, and transferring money no longer have to be at banks or in the market stalls to perform such activity; all they need to do is get online and remotely manage their commercial activities. E-commerce has been made possible with the technological advances of computer and telecommunications technologies. As mobile phones became capable of handling internet signals through Wifi and 3G capabilities, electronic commerce took another step ahead. M-commerce is a form of electronic commerce that is more personalized as it is directed individual mobile phones (Valacich & Schneider 2010, p.243). M-commerce became more popular with the development of 3G-enabled smart phones like iPod and Blackberry. Unlike the regular e-commerce that relies heavily on computer networks to reach a diverse target audience, m-commerce has a narrower target and thus more effective since almost everyone have phones whereas not everyone is online all the time (Tiwari & Buse 2007, p.8). 11. What are the advantages and disadvantages of Web-based collaboration tools? One of the most notable advantages of web-based collaboration tools is its ability to allow people to work on a common project even if they are not in one location (Valacich & Schneider 2010, p.264). Most individuals involved in a project are too busy or are located halfway around the world which makes it impossible for them to be present during meetings. With web-mediated workspace, virtually every individual working on the project, regardless of their physical location, are able to contribute their ideas and expertise as required. Another advantage in using web-based collaborative tools is it lowers the cost of bringing together individuals working on a certain project through the aid of internet and telecommunications technologies. There are two main disadvantages of web-based collaboration tools. First is the tools would be inaccessible (hence useless) until the members of the team gets online (Byrd 2003, p. 198). The second problem is that web-based collaboration tools deter social interaction since participants in group meetings no longer need to be present to interact with other members. 12. What is tagging, and how are organisations using it in their Websites? The worldwide web contains a large volume of data and information that can be related or not, depending on who deals with the data. In a way, it can be argued that there is too much chaos in the web that anyone can get lost in the process. This chaos is disadvantageous for business organizations that do their marketing online. With this much chaos, it becomes difficult for them to get their message across their selected targets. Thus, there is a need to streamline the data and information to be able to reach their target audiences. One of the best ways to streamline data and information on the web is through tagging. Tagging is the process of attributing meaning to web contents so that these contents become easily searchable (Valacich & Schneider 2010, p.274). Users typically assign keywords or tags to these items which can be a picture, a literary piece, or an online article to manage personal online resource. Organizations typically use tags to increase the site traffic as the keywords or tags points their website to online individuals that have used their tags (Lund et al 2005). 13. Explain the purpose of a model within a decision support system. The ability of the decision support system (DSS) to acquire, process, and provide the right and appropriate data to users relies heavily on the models followed by the DSS (Keen 1978, p. 43). This is because even though DSS integrate computer technology and information system in its functions, it is still the data framework or data model defined by human intelligence that would dictate the scope and extent of the capability of DSS (Valacich & Schneider 2010, p.315). Even if the data stored is comprehensive and the technology used is very much advance, decision support systems would still fail if the decision models embedded in its system are unable to capture what the organization wants it achieved. In other words, the data and information acquired and processed by the computer network would depend on the initial input outlined in the programming language, which is what the model encompasses. Hence, if the model used is wrong or inappropriate, the data and information that will be derived will also be inappropriate. 14. What is a knowledge management system, and what technologies make up a comprehensive system? Different Information Systems need to work together to perform or create a much broader scope of function and operation. Knowledge management system (KMS) is a collection of IT-based systems used in acquiring, storing, distributing, and managing data and information throughout a network or across networks (Valacich & Schneider 2010, p.326). This also pertains to the information management systems that acquire, store, process, or distribute data and information within its expected domains. Knowledge management systems are broader than information management systems in a way and it is more specific in its purpose. This is because knowledge management systems give more focus on the management of data and information whereas information systems are more comprehensive in dealing with data and information. Because of the complex, multi-level function required of knowledge management systems, they usually operate under different types of technology. The technologies comprising a comprehensive KMS is broad and encompass document-based technology, taxonomy-based, AI, network maps, social computing (Smuts 2009). 15. How does customer relationship management differ from supply chain management? The principles behind customer relationship management are not novel although the term is used fairly recently. Customer relationship management (CRM) sets the new definition of success in e-commerce. The increasing competition in the market and the growing threat for alternatives push business organizations to differentiate their products from the competition. One of the most effective methods in product differentiation is to establish a strong and lasting relationship with customers. CRM uses information systems and information technology to create and maintain strong relationship with the customers (Valacich & Schneider 2010, p. 362) through focusing the marketing, sales, and customer service efforts towards what customers like or desire thus eliminating the unnecessary expenses incurred in performing mass maketing. Unlike supply chain management that focuses solely on the improvement of the process of getting the product or service from point A to point B, CRM focuses on the feelings, perceptions, and the subjectivities of the internal and external customers in its processes (Corner & Hinton 2002, p.240) which aim to increase the affinity of the customers to the brand or the product. 16. What are the four options for system conversion, and how do they differ from each other? Organizations that have already used and implemented Information Systems may opt to use newer systems to complement their business processes. Transition of use from one system to the other, however, is not an easy feat especially if the old system and the new system are impossible to integrate; thus, the need to convert the old system to a new one. The four options for system conversion are parallel, direct, phased, and piloted (Valacich & Schneider 2010, p.409). The main difference among these four options for system conversion is the manner with which they are carried out. Parallel system conversion allows simultaneous use of the old and the new system whereas direct system conversion sets definite limit on the usage of the old system and the new system. Phased and piloted system conversions both allow transition stages to occur before the old system is replaced by the new system although they differ on the time frame involved in the transition process (Anderson & Hanson 2003, p. 29). 17. What is an information system security plan, and what are the five steps for developing such a plan? Information systems hold important and sensitive information that whoever owns them would rather keep them to use for their advantage. This is one among the many reasons why information systems must be secured and keep safe. The process of securing information systems is aptly called Information System security plan. In the simplest sense, IS security plan is the assessment of security risks of an Information system, the definition of the steps to secure the system, the implementation of these steps, and the continuous management involved in keeping these data and information secure (Valacich & Schneider 2010, p.463). The failure to produce a sound and reliable security plan, particularly those plans that invite unauthorized access to the system, may result to graver danger and wider damage (Wielm 2004, p. 221). Valacich & Schneider (2010, p.463) outlines five steps to secure information systems. These are risk analysis, establishment of policies and procedures, implementation, traning, and procedures. 18. Describe risk analysis as it relates to information systems security and explain three ways to approach systems security risk. Data and information are becoming very important for modern organizations. Because of their growing importance to business processes, it is necessary for business organizations to safeguard and protect the data they obtain and acquire in order to keep their competitive advantage. Organization’s data bases may contain sensitive and valuable information that must be kept from unwanted eyes and so they need to be secured at all times. There are various ways to approach systems security risk. Three of these approaches are risk analysis, responding to security breach, and disaster planning (Valacich & Schneider 2010, p.465). Risk analysis is the comprehensive analysis of the scope and extent of risks involved in keeping the data derived by the organization. This also pertains to the design and implementation of information security systems that would prevent unwanted individuals from obtaining these data and information. Responding to security breach refers to the action plan that must be carried out by the organization in the event of a breach of information security. Disaster planning on the other hand refers to the strategic steps that must be implemented when disasters pertaining to data and information occur (Brown & Vessey 1999, p.413). 19. Compare and contrast information accuracy, information privacy and information property. Information property is the principle that determines the ownership of certain information within the database (Valacich & Schneider 2010, p.489). Like any physical property, ownership of digital information stored in databases requires pass keys in order to access them and to ward off unwanted individuals prying on the information these data contain. Information privacy is the principle that restricts unauthorized access to information owned by individuals or organizations that do not wish to share them to other individuals or groups. Hence, information property and information privacy are related to each other since the other defines which data and information are owned by which individuals whereas the other determines the individual owning them (Andersson & Hanson 2003, p.79). Information accuracy refers to the integrity of the information stored and derived from the information system. Accuracy in this sense refers to the degree of the substance or context of the original information is left after being stored in the data base. Information accuracy is not related to information privacy and information property (Andersson & Hanson 2003, p. 77). 20. What is the difference between the digital divide and computer literacy? The progress and development of computer and internet technologies have created a fine line separating individuals who are capable of using both technologies to individuals that could not comprehend how such technology operates. With this progress, national and individual identities are redefined into something that any computer literati could comprehend. Computer literacy refers to the knowledge and understanding of how a computer operates * Valacich & Schneider 2010, p.482). Digital divide on the other hand is the gap in the number of people who are computer literate and those who are computer illiterate (Valacich & Schneider 2010, p483). The main difference between the two terms is the context of their uses. Computer literacy is a description of an individual’s capability to operate a computer whereas digital divide refer to the numerical or descriptive value that separates the computer literate from the computer illiterate (Weilm 2004, p. 28). Thus said, a person who has not operated any computer machine is called a computer illiterate and is classified on one side of the digital divide. List of References References Andersson, I. & Hanson, K. (2003). Technology diffusion in a software organization, Licentiate Thesis in applied Information Technology, University of Goteborg Brown, C.V. & Vessey, I. (1999). ERP Implementation Approaches: Toward a Contingency Framework, Proceedings of the 20th International Conference on Information Systems, Charlotte, NC, December 13-15, 411-416. Byrd, J. (2003). The Innovation Equation – Building Creativity & Risk Taking in your Organization. San Francisco, CA: Jossey-Bass/Pfeiffe Callaghan, J. (2002), Inside Intranets & Extranets: Knowledge Management and the Struggle for Power, Palgrave Macmillan,  Corner, I. and Hinton, M. (2002) Customer relationship management systems: implementation risks and relationship dynamics, Qualitative Market Research: An Int. Journal, 5, 4, 239-251. Keen, P. G. W. (1978). Decision support systems: an organizational perspective. Reading, Mass., Addison-Wesley Pub. Co. Landers, T & R. L. Rosenberg. (1982). "An overview of multibase," in Distributed Databases, H. J. Schneider, Ed. Amsterdam, The Netherlands: North-Holland, Lund, B., Hammond, T., Flack, M., & Hannay, T. (2005). “Social Bookmarking Tools (II): A Case Study – Connotea,” D-Lib Magazine, 11(4) Retrieved online on May 17, 2010 from http://www.dlib.org/dlib/april05/lund/04lund.htm Meyer, D. (2007). 4 Advantages to Outsourcing. NDMA IncRetrieved online on May 17, 2010 from  http://www.sourcingmag.com/content/c051011a.asp   O’Keeffe, T. 2002. Organizational Learning: a new perspective. Journal of European Industrial Training, 26 (2), pp. 130-141 Paul, D., Yeates, D., & Hindle, K. (2006). Business Analysis.. British Computer Society. Rothwell, R. (8/5/2008). Creating Wealth with Free Software. Free Software Magazine. Retrieved online on May 17, 2010 from http://www.freesoftwaremagazine.com/community_posts/creating_wealth_free_software Senge, P.M. 1990. The Fifth Discipline. London: Century Business. Smuts,H., Van der Merwe, A., Loock, M. (2009), Key characteristics in selecting software tools for Knowledge Management, 11th International Conference on Enterprise Information Systems, Milan Italy  Tiwari, R. and Buse, S. (2007): The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector, Hamburg: Hamburg University Press Valacich, J & Schneider, C 2010, Information Systems Today- managing in the digital world, Fourth Edition, Pearson, Upper Saddle River.  Wielm, A. (2004). Digital Nation: Towards an inclusive information society, MIT Press. Wise, G.(1985), "Science and Technology", Osiris (2nd Series) 1: 229–246. World Bank (1992), Governance and Development, World Bank W Read More