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BBA 2018-21
SEMESTER-2

MODULE CODE: ITM101-02

INTRODUCTION TO INFORMATION

SYSTEMS AND COMPUTERS

ASSESSMENT

SUBMITTED BY: VIVEK LINESWALA

(BBA 2018-21 SEC-B)
SUBMITTED TO: MR. SUNIL KUMAR
(FACULTY OF SCHOOL OF IT)
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QUESTIONS
Q1. What are the major capabilities of information systems?

Q2. Describe Porter’s competitive forces model and Porter’s Value Chain model?

Q3 List the various electronic payment mechanisms. Which of these mechanisms are most often used for
B2B payments?

[Link] is M-commerce? How it’s different from E-Commerce. Discuss some M-commerce applications in
finance and shopping.

[Link] the followings with example:

i) Benefits of E-Commerce
ii) Benefits of Information systems.
iii) Wi-Fi, Cellular services and Wi-Max.

Q6. Explain the following:

i. Cloud computing ii. Data Mart. iii. Business Intelligence

Q7. Explain Data Warehouse and Data Mining with its characteristics and Applications.

[Link] many types of search facilities available on the Web? Write down how to

refine search on the web.

[Link] are the difference between system software and application software? Explain with suitable example.

Q.10. Explain the following:

i) Legal issues to E-commerce.
ii) Data, information and Knowledge.
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1. What are the major capabilities of information systems?

Information systems offer a set of capabilities that can be exploited to

achieve business results. The principal capabilities of information systems
are:

• Fast and accurate data processing, with large-capacity storage and

rapid communication between sites.
• Instantaneous access to information.
• Means of coordination
• Boundary spanning (systems through which an organization
receives intelligence about its environment and provides
computerized information for its customers, suppliers, and the public
at large).
• Support for decision making.
• Supporting organizational memory and learning
• Differentiation of products and services.
• Modelling (a simplified representation of a real object or
phenomenon that helps to understand or develop the modelled
object).
• Automation
• Enables efficient operations of a small business or a large
corporation.
• Makes possible effective management.
• Supports the search for competitive advantage in the marketplace.
• Enables economic growth by moving to newer and more advanced
technologies.
• Enables the globalization of businesses and enables global
competition.
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2. Describe Porter’s competitive forces model and

Porter’s Value Chain model?

PORTER’S COMPETITIVE FORCE MODEL

It is an analysis tool that uses five industry forces to determine the intensity of
competition in an industry and its profitability level. These forces determine an
industry structure and the level of competition in that industry. The stronger
competitive forces in the industry are the less profitable it is. An industry with
low barriers to enter, having few buyers and suppliers but many substitute
products and competitors will be seen as very competitive and thus, not so
attractive due to its low profitability.

THREAT OF NEW ENTRANTS.

This force determines how easy it is to enter a particular industry. If an industry is profitable
and there are few barriers to enter, rivalry soon intensifies. When more organizations
compete for the same market share, profits start to fall. It is essential for existing
organizations to create high barriers to enter to deter new entrants. Threat of new entrants
is high when:
• Low amount of capital is required to enter a market.
• Existing companies can do little to retaliate.
• Existing firms do not possess patents, trademarks or do not have established
• brand reputation.
• There is no government regulation.
• Customer switching costs are low.
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• There is low customer loyalty.

• Products are nearly identical.
• Economies of scale can be easily achieved.

BARGAINING POWER OF SUPPLIERS

Strong bargaining power allows suppliers to sell
higher priced or low-quality raw materials to their buyers. This directly affects the buying
firms’ profits because it has to pay more for materials. Suppliers have strong bargaining
power when:
• There are few suppliers but many buyers.
• Suppliers are large and threaten to forward integrate.
• Few substitute raw materials exist.
• Suppliers hold scarce resources.
• Cost of switching raw materials is especially high.

BARGAINING POWER OF BUYERS

Buyers have the power to demand lower price or higher product quality from industry
producers when their bargaining power is strong. Lower price means lower revenues for the
producer, while higher quality products usually raise production costs. Both scenarios result
in lower profits for producers Buyers exert strong bargaining power when:
• Buying in large quantities or control many access points to the final customer.
• Only few buyers exist.
• Switching costs to other supplier are low.
• They threaten to backward integrate.
• There are many substitutes.
• Buyers are price sensitive.

THREAT OF SUBSTITUTES.
This force is especially threatening when buyers can easily find substitute products with
attractive prices or better quality and when buyers can switch from one product or service to
another with little cost. For example, to switch from coffee to tea doesn’t cost anything,
unlike switching from car to bicycle. Rivalry among existing competitors. This force is the
major determinant on how competitive and profitable an industry is. In competitive industry,
firms have to compete aggressively for a market share, which results in low profits. Rivalry
among competitors is intense when:
• There are many competitors;
• Exit barriers are high;
• Industry of growth is slow or negative;
• Products are not differentiated and can be easily substituted;
• Competitors are of equal size;
• Low customer loyalty.
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PORTER’S VALUE CHAIN MODEL

PRIMARY ACTIVITIES
Primary activities relate directly to the physical creation, sale, maintenance and support of a
product or service. They consist of the following:

• Inbound logistics – These are all the processes related to receiving, storing, and
distributing inputs internally. Your supplier relationships are a key factor in creating
value here.
• Operations – These are the transformation activities that change inputs into outputs
that are sold to customers. Here, your operational systems create value.
• Outbound logistics – These activities deliver your product or service to your customer.
These are things like collection, storage, and distribution systems, and they may be
internal or external to your organization.
• Marketing and sales – These are the processes you use to persuade clients to purchase
from you instead of your competitors. The benefits you offer, and how well you
communicate them, are sources of value here.
• Service – These are the activities related to maintaining the value of your product or
service to your customers, once it's been purchased.
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SUPPORT ACTIVITIES

These activities support the primary functions above. In our diagram, the dotted lines show
that each support, or secondary, activity can play a role in each primary activity. For
example, procurement supports operations with certain activities, but it also supports
marketing and sales with other activities.

• Procurement (purchasing) – This is what the organization does to get the resources it
needs to operate. This includes finding vendors and negotiating best prices.
• Human resource management – This is how well a company recruits, hires, trains,
motivates, rewards, and retains its workers. People are a significant source of value, so
businesses can create a clear advantage with good HR practices.
• Technological development – These activities relate to managing and processing
information, as well as protecting a company's knowledge base. Minimizing information
technology costs, staying current with technological advances, and maintaining technical
excellence are sources of value creation.
• Infrastructure – These are a company's support systems, and the functions that allow it
to maintain daily operations. Accounting, legal, administrative, and general management
are examples of necessary infrastructure that businesses can use to their advantage.
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3. List the various electronic payment mechanisms.

Which of these mechanisms are most often used for
B2B payments?

When you purchase goods and services online, you pay for them using an electronic medium.
This mode of payment, without using cash or cheque, is called an e-commerce payment
system and is also known as online or electronic payment systems. The different types of e-
commerce payments in use today are:
• Electronic Checks
• Electronic Credit Cards
• Purchasing Cards
• Electronic Cash
• Electronic Bill Presentment and Payments
• Paying Bills at ATMs.

The five main ways to receive and make B2B payments include checks, ACH transfers, credit
cards, electronic funds transfers, and online payment platforms. While they all offer
advantages, there are also disadvantages to each B2B payment methods that you will need
to consider before you select which payment methods will work best for your company

Checks are the first type of B2B payment. They are simple and relatively cheap with a long
float. They do not have setup costs or a complex system to learn. However, they can be lost
or stolen in transit and actually end up being pretty expensive. When used, your accounting
process becomes quite laborious.

Credit cards are another B2B payment method. They make it easy to access credit and are
convenient. They tend to be fairly secure, and if there is a dispute, then the credit card
company will step in and help you. However, they can be an expensive payment method with
numerous costs and fees attached to each transaction.

ACH is a third B2B payment option, and it offers the advantages of fast payments, no float,
and the requirement that all funds must be in the account before a transaction can be
completed. Disadvantages with ACH include complex set-up, numerous forms, hidden details,
and the ease at which payments can be reversed, leaving you with losses.

Electronic funds transfer is the fourth B2B payment option. The funds are available almost
immediately. It’s a simple process with no float and no real information requirements. The
disadvantage is that you can only do these by phone. There is no remittance information and
it can get expensive. Also, the changes can’t be reversed even if there is a dispute.
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Lastly, the fifth B2B payment method is online payments, which is an easy and convenient
way to conduct transactions. It offers detailed remittance information for good record
keeping. However, each online payments platform has different criteria, charges, and
formatting for information, which makes it confusing to know which to use for your business.

4. What is M-commerce? How it’s different from

[Link] some M-commerce applications
in finance and shopping.
Mobile commerce refers to e-commerce transactions that are conducted in a wireless
environment, especially via the internet. These wireless devices interact with computer
networks that have the ability to conduct online merchandise purchases.

BASIS FOR COMPARISON E-COMMERCE M-COMMERCE

MEANING Any kind of commercial transaction M-commerce refers to the

that is concluded, over the internet commercial activities which are
using electronic system is known as transacted with the help of
e-commerce. wireless computing devices such as
cell phone or laptops.

WHICH DEVICE IS USED? Computers and Laptops Mobiles, tablets, PDA's, iPad etc.

DEVELOPED In 1970's In 1990's

WHAT IS IT? Superset Subset

EASE OF CARRYING DEVICE No Yes

USE OF INTERNET Mandatory Not mandatory

REACH Narrow i.e. it is available only in Broad due

those places where there is
internet along with electricity.
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M-COMMERCE APPLICATION IN FINANCE & SHOPPING

1) Wireless Electronic Payment Systems

• Wireless bill payments

• Closing the digital divide
• Mobile Shopping, Advertising, and Content Provision

2) Wireless Shopping

• Mobile portal
• Mobile Enterprise and Supply Chain
• Mobile Office
• Sales force Mobilization and Automation
• Support in Operations
• Maintenance and Repair at remote sites

3) Supporting other types of network

• Customer and partner support

• Mobile consumer services
• Mobile entertainment
• Mobile games
• Location Based M-Commerce
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5. Define the followings with example:

i) Benefits to E-commerce
ii) Benefits of Information systems.
iii) Wi-Fi, Cellular services and Wi-Max.

i) BENEFITS OF E-COMMERCE

Benefits to organisations
• Expands a company’s marketplace to national and international markets.
• Enables companies to procure material and services from other companies, rapidly and at
low costs.
• Shortens or even eliminates marketing distribution channels, making products cheaper and
vendor’s profits higher.
• Lowers telecommunication costs because the internet is much cheaper than value-added
networks (VAN).
• Enables very specialised niche markets.
• Decreases the cost of creating, processing, distributing, storing, and retrieving information
by digitizing the process.

Benefits to Customers
• Makes possible electronic auctions.
• Makes it possible for people to work and study at home.
• Enables the customers to get customized products.
• Delivers relevant and detailed information in seconds.
• Enables customers to shop or make other transactions 24hrs a day, from almost any
location.
• Gives consumers more choices then they could easily locate otherwise.

Benefits to Society
• Allows some merchandise to be sold at lower price, thereby increasing people’s standard of
living.
• Enables individual to work at home and to do less travelling, resulting in less road traffic and
lower air pollution.
• Enables people in developing countries and rural areas to enjoy products and services that
are otherwise not available.
• Facilities delivery of public services, reducing the cost of distribution and increasing the
quality of social services, police work, health care, and education.
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ii) BENEFITS OF INFORMATION SYSTEM

The primary benefit of information systems is their ability to provide a user with the
information needed to do any task effectively and efficiently.

An information system provides each user the information he needs to make decisions or
take action.
• Added value to products (Goods & Services).
• Better safety.
• Better services.
• Competitive advantages.
• Fewer errors.
• Greater accuracy.
• Higher quality products.
• Improved communication.
• Increased efficiency.
• Increased productivity.
• Efficient administration.
• More opportunities.
• Reduce labour requirements.
• Reduce costs of production.
• Superior of financial decision making.
• Superior control over operations
• Superior managerial decision making.

iii) WI-FI, CELLULAR SERVICES & WI-MAX.

• WI-FI
Wi-Fi is defined as an abbreviation for wireless fidelity, meaning you can access or
connect to a network using radio waves, without needing to use wires. An example
of Wi-Fi is when you go to Starbucks and can join on their network to get on the
Internet without having to connect your computer to any wires.

• CELLULAR SERVICES
A cellular network or mobile network is a communication network where the last link
is wireless. The network is distributed over land areas called cells, each served by at
least one fixed-location transceiver, but more normally three cell sites or base
transceiver stations.
FOR EXAMPLE:
iPad with Cellular means the iPad has a SIM slot like a phone and can connect to
the cellular data network, like your phone.

• WI-MAX
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Wi-MAX is a wireless communications standard designed

for creating metropolitan area networks (MANs). It is
similar to the Wi-Fi standard, but supports a far greater
range of coverage. Wi-MAX is also known by its technical
name, "IEEE 802.16,.

6. EXPLAIN THE FOLLOWING:

i.)CLOUD COMPUTING II.) DATA MART. III.)BUSINESS INTELLIGENCE

CLOUD COMPUTING
Cloud computing is the delivery of different services through the internet. These resources
include tools and applications like data storage, servers, databases, networking, and software.

Rather than keeping files on a proprietary hard drive or local storage device, cloud-based
storage makes it possible to save them to a remote database. As long as an electronic device
has access to the web, it has access to the data and the software programs to run it.

Cloud computing is a popular option for people and businesses for a number of reasons
including cost savings, increased productivity, speed and efficiency, performance, and
security.

DATA MART

A data mart is a subject-oriented archive that stores data and uses the retrieved set of
information to assist and support the requirements involved within a particular business
function or department. Data marts exist within a single organizational data warehouse
repository.

BUSINESS INTELLIGENCE

The term Business Intelligence (BI) refers to technologies, applications and practices for the
collection, integration, analysis, and presentation of business information. The purpose of
Business Intelligence is to support better business decision making. Essentially, Business
Intelligence systems are data-driven Decision Support Systems (DSS). Business Intelligence is
sometimes used interchangeably with briefing books, report and query tools and executive
information systems.
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7. Explain Data Warehouse and Data Mining with its

characteristics and Applications.
DATA WAREHOUSE
A repository for subject-oriented historical data that are organized to be accessible in a
form readily acceptable for analytical processing. Data warehouses facilitates business
intelligence activities.
The data warehouse provides an enterprise wide, consistent, and comprehensive view
of the company. The warehouse reconciles the various departmental perspectives into
single, integrated corporate perspective.

CHARACTERISTICS OF DATA WAREHOUSE

i) Organised by business dimension or subject : Data are organised by subject and contain
information relevant for decision support and data analysis.

ii) Consistent: Data in different databases may be encoded differently. In the data warehouse,
though, all data must be coded in a consistent manner.

iii) Historical: The data are kept for many years so that they can be used for trends,
forecasting, and making comparisons over time.

iv) Non-volatile: Data are not updated after they are into the warehouse.

v) Multidimensional:Data warehouses store are data in more than two dimensions. The data
are said to be stored in a multidimensional structure.

APPLICATIONS OF DATA WAREHOUSE

• Telephone Transportation
• Government Education
• Banking and finance Insurance
• Hospitality Healthcare
• Manufacturing and Distribution
• Retailers Services
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DATA MINING
Data mining is the process of sorting through large data sets to identify patterns and
establish relationships to solve problems through data analysis. Data mining uses machine-
learning and statistical models to uncover the hidden patterns in a large volume of data.

CHARACTERISTICS OF DATA MINING

1. Increased quantities of data : In earlier days, the data mining system can be determined
with the help of their clients and customers, but in today’s date, one can acquire any
number of information without the help of those clients. With the help of these information
technology, one can acquire a large number of information without any extra burden or
trouble.

2. Provides incomplete data: People ignore the value of their information and that is why
they provide incomplete information about themselves in those surveys conducted for the
benefit of the mining systems. Moreover, these mining systems changed the perspective of
people and because of that, people fear the exchange of their personal information.

3. Complicated data structure: Data mining is a form wherein which all the information is
gathered and incorporated with the help of information collection techniques. These
information collecting techniques are more of manual and rest are technological.

APPLICATIONS OF DATA MINING

1. Market Analysis and Management: The following mentioned are the various fields of
market where the data mining process is effectively used,

• Customer Profiling
• Finding customer requirements
• Cross-market analysis
• Target marketing
• Determining customer purchasing pattern
• Provides summary information

2. Corporate Analysis and Risk Management: The following mentioned are the various
fields of the corporate sector where the data mining process is effectively used,

• Finance Planning
• Asset Evaluation
• Resource Planning
• Competition
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3. Fraud Detection

Frauds and malware is one of the most dangerous threats on the internet. It is almost a kind
of crime that is increasing day after day. The fraud detection process can be mainly used
through credit card services and telecommunication.

8. HOW MANY TYPES OF SEARCH FACILITIES

AVAILABLE ON THE WEB? WRITE DOWN HOW TO
REFINE SEARCH ON THE WEB.

E-MAIL
E-mail, the Internet equivalent of postal mail, is the most widely used facility on the
Internet. E-mail messages routed across the Internet can reach an overseas destination in
seconds. You never receive a busy signal and you never play “telephone tag.” A variety of e-
mail programs offer features allowing you to print, forward, save, and/or reply to another's
message. Some include advanced features allowing you to attach a word processing
document, spreadsheet, software program, video, or image file.

LIST SERVERS
The list server facility allows for the creation of discussion groups to share information
about common interests. LISTSERV, the most common list server program, copies incoming
messages sent to the list and forwards them to everyone whose e-mail address is on the list
(the subscribers). Only subscribers can submit messages to the group, which is monitored by
the list manager. A user (the initiator) typically joins a list by sending it an appropriately
worded e-mail message, which automatically prompts the LISTSERV program to extract the
initiator's e-mail address, add it to the list, and send the initiator an e-mail message of
confirmation and information regarding use of the list.

USNET/NEWSGROUPS
Internet newsgroup servers generally provide access to groups that are much less selective
than those provided by list servers. Free and unrestricted access to thousands of topic-
based newsgroups can be obtained by using specific newsreader software to contact a local
computer that acts asa news server. This software allows users to post messages or articles
to any newsgroup for other users to read and possibly attach their comments.

FILE TRANSFER PROTOCOL

Using the File Transfer Protocol facility, Internet users can transfer software programs,
product upgrades, and other types of computer files between computer systems connected
to the Internet.
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INTERNET RELAY CHAT

With Internet Relay Chat, small numbers of users meet in on-line chat groups and “talk” to
each other by typing messages on their keyboards.

GOPHER
The Gopher facility, created at the University of Minnesota and named after its golden
gopher mascot, is one of the first “user-friendly” Internet facilities for obtaining information
over the network. Using Gopher, users can connect to thousands of different computers,
known as information servers or “gopher holes,” via a menu-driven “point and click”
program. Hierarchically organized information is stored at each gopher hole. Users click on a
descending list of individual topics to retrieve information, which might include text, sound,
or images.

WORLD WIDE WEB

The WWW is such an immensely popular Internet facility that for many users, it has become
synonymous with the Internet. Developed in 1992 at the European Laboratory for Particle
Physics at Cern, Switzerland, the WWW links users to Internet sites. The basic unit of WWW
communication is the page, similar to this printed page. Within a Web page are “links” on
which users can click and be automatically connected to related pages at the same or other
Internet Websites. With its ease of use and its multimedia ability to transmit text, graphics,
audio, and video to retrieve detailed information from anywhere in the world in seconds,
the WWW has quickly become the interface of choice for Internet users.
Refine web searches

You can use symbols or words in your search to make your search results more precise.

• Google Search usually ignores punctuation that isn’t part of a search operator.
• Don’t put spaces between the symbol or word and your search term. A search
for site:[Link] will work, but site: [Link] won
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9. What are the difference between system software and

application software? Explain with suitable example

SYSTEM SOFTWARE
System Software is the software that is written in a low-level language, like assembly
language. The main purpose of System Software is to manage and control the resources of
the system. It takes care of memory management, process management, protection and
security of the system.

APPLICATION SOFTWARE
Application Software is a software written in a high-level language like Java, VB, .net, etc.
Application Software is user specific and is design to meet the requirements of the user. It
may be a computing software, editing software, designing software, etc.

DIFFERENCE BETWEEN SYSTEM SOFTWARE AND APPLICATION SOFTWARE

[Link] System Software Application Software

1. System software is used for Application software is used by

operating computer hardware. user to perform specific task.

System software are installed on Application software are

the computer when operating installed according to user’s
2. system is installed. requirements.

In general, the user does not

interact with system software
because it works in the In general, the user interacts
3. background. with application software

System software can run Application software can’t run

independently. It provides independently. They can’t run
platform for running application without the presence of
4. software system software.

Some examples of application

Some examples of system software software are word processor,
5. are compiler, assembler, web browser, media player,
debugger, driver, etc. etc.
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10. Explain the following:

A. LEGAL ISSUES TO E-COMMERCE.
B. DATA, INFORMATION AND KNOWLEDGE.

A.) LEGAL ISSUES TO E-COMMERCE:

FRAUD ON THE INTERNET

Internet fraud has grown even faster than internet use itself. Stock promoters falsely
spread positive rumors about the prospects of the companies that touted in order to boost
the stock price. Auctions are especially conducive to fraud, by sellers and buyers.

DOMAIN NAMES
Companies that sell goods and services over the internet want customers to be able to find
them easily. Companies that sell goods and services want customers to be able to find them
easily. In general, the closer the domain name matches the company’s name.

CYBERSQUATTING
Refers to the practice of registering or using domain names for the purpose of profiting
from the goodwill or trademark belonging to someone else. Anti-Cybersquatting consumer
protection act (1999) lets trademark owners in the US sue for damages in such cases.

TAXES AND OTHER FEES

In offline sales, most states and local tax business transaction that are conducted within
their jurisdiction. Ex-Sales tax. Federal, state, and local authorities nowhere scrambling to
create some type of taxation policy for e-business.

COPYRIGHT
Intellectual property is protected by copyright laws and can’t be used freely.
Copying material from web sites without permission is a violation of copyright.
Protecting intellectual property rights in e-commerce is extremely difficult.

B.) DATA INFORMATION AND KNOWLEDGE

DATA
Data are the unprocessed simple facts and figures of information without any added
interpretation or analysis.

INFORMATION
When data are processed interpreted, organized, structured or presented so as to make
them meaningful, then they are called information.
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KNOWLEDGE
Information and skill acquired through experience or education or the theoretical or
practical understanding of a subject.

vivek lineswala