Porter Five Force Model Issues - Assignment Example

1. It is seen that data, information and knowledge are used interchangeably but instead one leads to the other as seen from the diagram It thereby shows data leads towards information and then towards knowledge. Data is thereby the information which may be facts, figures or numbers which are obtained from some experiments or calculation. Information on the other hand is retrieving or gaining vital inputs from the data that has been provided and communicates about a particular subject and provides the required direction. Knowledge on the other hand is the awareness and possession of information which is true and correct and will help to simplify facts and is based on truth. An example in this direction is the raw numbers which are collected regarding population ages. Drawing information and finding out of it which can be used for future reference is the information and verifying the same and having actual truth and facts transforms into knowledge. Thus it is a series of step which leads from one step to the other. When we consider it from the point of view of operational database systems and data warehouses it is seen that the information is stored in the form of data. When a command or a program is executed it results in creating an algorithm through which the data is processed and important information is retrieved. This information transforms into useful knowledge which can be used in the future and helps to provide the required direction and path through which useful decisions are made. The data thereby stored in operational database systems and data warehouses is usually in the form of bits and bytes which is the raw data which gets converted into valuable information and knowledge when a command is executed to perform a function. 2. An information system is defined as an arrangement where the different elements helps to gather the useful information through which proper decisions can be taken and help to bring a degree of control to some of the functions within the organization. An example in the direction is that information about the demand will help to determine the production schedule accordingly and will help to reduce the up and downs that the system faces. This is thereby dependent on strategic, tactical and operational levels at which the functions are carried out. The strategic level looks towards identifying the mission and vision of the organization and looks towards taking strategic decisions which will determine the long term working potential of the organization. Some of the major strategic decisions which an information system leads towards are the place where the equipments will be set, change in technology and so on. Tactical level decisions are the ones which are taken by middle level managers and are taken with the purpose of ensuring that the strategic objectives which have been decided can be achieved. At this level the managers break down the objectives into smaller ones and pass on the objective to the different employees and managers by providing the required authority so that they can act and achieve the objective. Example in this direction includes product pricing The operational level is the bottom level position in the organization where they are entrusted with the responsibility of carrying out the activities that have been decided and looks towards working towards a purpose so that the strategic objectives which have been decided can be achieved. The information system process thereby looks towards following a series of interrelated steps through which the overall objectives are achieved and the process follows one step after the other. 3. There exist differences between ERP, SCM, CRM & KMS system as each concept is used in a different direction and looks towards ensuring that the overall efficiency and development of the business takes place. ERP is known an enterprise resource planning which looks towards integrating the different functions of the business like finance, manufacturing, operation, marketing and others together so that the organization is able to develop strategies based on it. This looks towards ensuring that a wide range of functions which looks towards covering all the different aspect of the business are integrated so that better decisions can be taken. SCM is known as supply chain management which looks towards using different tools and strategies based on which the business is able to gain efficiency in supply chain. This looks towards developing a process through which the business is able to identify the manner in which aspects have to be considered so that the business is able to supply the required materials and ensure proper mechanism to have the required inventories at the desired level. CRM is known as customer relationship management which looks towards building long term relationship with the customers. This looks towards ensuring that the business is able to find out the needs and requirements of the customers and based on it develops strategies through which the customers can be retained for a longer period of time and ensured maximum satisfaction. KMS is knowledge management system which looks towards developing the required framework through which knowledge spreads within the organization. This helps in the development of the employees which will provide an opportunity through which the business can plan for succession planning. This helps to ensure proper measures through which employees understand the different concepts better and are able to develop their skills towards the betterment of the organization. 4. Supply Chain for a business is largely dependent on the manner the business is able to ensure efficiency in procuring the raw materials and transferring them into finished products at the correct and appropriate time. This requires that the business is able to develop overall strategies which are aimed at improving the manner in which the business is done. Information system and information technology can support a long way in ensuring that the goal is achieved as the use of technology will permit and provide the required dimensions through which efficiency can be achieved. Using the IS/IT framework the organizations can monitor the manner in which the business looks towards using the different raw materials that they have. This will help to keep track of the supplied and will provide the time period and ordering level based on which the order will be generated. This will also ensure that the business only keeps the required raw material and doesn’t have to look towards investing heavily in areas which could lead towards reducing the financial capacity of the business. The IS/IT framework will enable the company to reduce the bottlenecks that is present in the supply chain as it will look towards improving monitoring. This will help the business to plan better and will ensure that they are able to deal with the different requirements of supply chain in a better way. This will thereby ensure that maximum efficiency is generated in the supply chain model through which the business will be able to plan and execute their goals and requirements in the most efficient manner. Thus, the overall supply chain model will be developed which will help to ensure that operational efficiency is gained and the business is able to sustain the long term growth potential in a better way. 5. The strategic level looks towards identifying the mission and vision of the organization and looks towards taking strategic decisions which will determine the long term working potential of the organization. Some of the major strategic decisions which an information system leads towards are the place where the equipments will be set, change in technology and so on. Business level decisions are the ones which are taken by middle level managers and are taken with the purpose of ensuring that the strategic objectives which have been decided can be achieved. At this level the managers break down the objectives into smaller ones and pass on the objective to the different employees and managers by providing the required authority so that they can act and achieve the objective. Example in this direction includes product pricing The operational level is the bottom level position in the organization where they are entrusted with the responsibility of carrying out the activities that have been decided and looks towards working towards a purpose so that the strategic objectives which have been decided can be achieved. The information system process thereby looks towards following a series of interrelated steps through which the overall objectives are achieved and the process follows one step after the other. The IS/IT system will help to achieve their objectives in a better way because technology will ensure that the resources are used in the best possible manner. It will allow the business to monitor the performance and will provide a direction through which all the different functions can be compiled and developed in such a manner that one leads to the other. This will increase the chance of achieving the objective and plan the required resources through which the goals at the different level will be achieved. 6. PESTEL & Porter Five Force Model present the external environmental for a business and determine the manner in which the external environment influences the business and its decision making. External environment has an effect on business decision making and being able to identify the different factors and their relevance on decision making will prepare the business better and will here help to ensure that policies are developed through which the business is able to take better decisions. The importance of the decision making can be increased by using the IS/IT system as using technology will ensure that the business is able to look at different factors in a better way. This will help in the evaluation of the different factors and will help to understand the manner the decision making gets affected. Technology will permit to gauge the changes that the external environment is undergoing and will help to develop the required fundamentals through which better decisions can be arrived at. The process will take care of the fact that the business is able to simplify the external environment in a better way. The fact that PESTEL & Porter Five Force Model deals with the different aspect of external environment and using technology along with it will help to find better findings and areas which would otherwise would have been ignored. This will ensure that the findings are more relevant and support the external environment analysis. This will also help to find out new ways through which the external environment will be dealt in a better way and ensure efficiency in carrying out the operations. This will thereby benefit the organization is decision making and will help to develop the required framework through which the business is able to coordinate better and achieve its purpose. 7. The business world is continuously encountering changes making it imperative that organizations change accordingly. These changes can be seen in the process of doing things, moving to a new location, improving the present system in which work is carried out, or major structural changes. Organizations are unable to deliver successful projects because of the fact that it doesn’t include areas like; project management process, shared leadership, and management of risks, utilizing data management instruments, preserving core capabilities, performance management structure and involving the public. They are imperative in the success of an organization and being unable to replicate those makes it difficult for the business to deliver successful projects. The toughest part for an organization looking towards implementing a new project is that it can be totally different from what the business had used previously. This might result in no relation with the previous elements or structures making execution of the project difficult. This situation requires that organizations looks towards specialized person having knowledge in this field like project managers who can provide the required direction and guidance based on which the organization can work. This will increase the chances of ensuring that the project is completed on time and efficiently. The IS/IT framework provides the required help as using technology enables to ensure that projects can be delivered in a better way. IS/IT enables to ensure that the changes are done with the objective of attaining the business objectives. To ensure effective change organizations have to continuously develop new projects and use the resources in a manner that helps to attain the predefined objectives. The new projects might raise difficulties but being able to deal with those and ensure the best use of the resources will help to increase the chance of delivering the project successfully. This thereby ensures that the project is completed successfully. 8. The system development lifecycle looks towards following a series of steps which leads ensuring that process of creating a system is complete. It encompasses different steps where one leads to the others and ensures that the business through the process is able to develop a system which will help to provide maximum efficiency. The steps which are involved in the system development lifecycle are as Analysis which looks towards evaluating the situation carrying out a preliminary analysis and helps to provide some inputs regarding the cost and benefit and the manner the complete analysis will go through. This thereby is the starting point and provides a direction to work on. Next is the designing step which looks towards developing a design or a prototype so that the research can be carried forward. This leads towards the implementation stage where the research which has been generated is implemented. During the implementation phase various testing are done and finally the entire process is evaluated to identify the whether the research can be implemented and the manner in which it will benefit the overall research. This system has an advantage as following the steps will direct the management regarding the areas which are critical and needs to be worked on. This will also help to understand the manner in which the development will affect and changes can be made at the appropriate time so that the entire process when completed helps to fetch the desired results. Since, the process looks towards testing and then analyzing and incorporating the changes it reduces the chances of failure if the management or the business is able to act correctly at the appropriate time and make the required changes through which maximum benefit can be reaped. This will ensure that the system provides the desired benefit and helps the organization over a longer period of time. 9. Managing the process of change requires that the business is able to identify the model and structure that will fit them and based on it looks towards selecting the best method through which the changes are implemented. The changes that an organization aims at can be either small or large ones. The small changes or the minor changes are usually accompanied by changes in the staff which can be easily made. Structural or major changes usually aim at changes in strategies and require a lot of inputs and changes in different directions so that maximum benefit can be achieved. To ensure maximum benefit and implementing changes organization thereby look towards specialist who can contribute and ensure that the changes are achieved systematically. Change specialists are person with specialized knowledge who can contribute immensely towards the goal and using their skills the organization will be able to ensure the changes easily. This will help to find out the relevant areas and will help to select the change model which will ensure that the change that the system has to undergo is appropriate. This will also help in the development of a system through which the changes will be done in the most efficient manner. Organization look towards implementing changes as it helps to improve the focus on the objectives and provides the necessary push through which better services can be achieved. Thus the model adopted by the business should be such that it helps to gain efficiency and ensures that the process of change in the system helps to reduce cost and brings in better efficiency. This will thereby help to deal with the different issues that the system might present and ensure that the overall management and maintenance of the system is better and is aimed towards better results. 10. The importance of cloud computing has been growing in different fields due to the different relevant information that cloud computing provides. The use of cloud computing in the different fields have increased the dependence on cloud computing and has been used by different organization in different fields to be able to gain effectiveness and efficiency in their services. It has been looked by different researchers in different way and has looked towards developing a model which used a pool of shared configurable computing resources to gather maximum benefit. This has simplified the manner in which businesses is able to conduct their daily affairs and looks towards presenting the different information differently. Cloud computing is considered as one of the greenest method of controlling carbon footprints and is widely adopted by organizations. This has made more and more organization look towards integrating it in their work environment. Studies have shown that data collection centers contribute around 0.5% of the total electricity that is produced and releases carbons which results in an increase in carbon footprints. Despite it organizations are looking towards developing a virtual server in their data place where they look to pass on the data collection work to other companies through outsourcing and look towards reducing their own carbon footprint. This will increase the role of business as looking towards finding a method through which organizations look towards building data centers will help to provide the required efficiency and will thereby guide in reducing carbons. This has made organizations look towards virtualization as the benefit of cloud computing in the field of carbon emission can be identified and gathered from those sources which have increased the role of data center. 11. There are different models which have been identified based on the IS requirements and the different models look towards improving the present condition and helps the business to gain overall efficiency. Organizations have to look towards identifying the benefits and the cost that will be incurred while implementing the changes so that business is able to identify the manner in which the growth can be facilitated for the business. Since change management involves different steps and directions it is important that the process, system, work force and design is such that it looks finding out the manner in which the cost and benefit will be evaluated. Organizations that are able to ensure that they look towards using the framework in the correct direction will be able to garner larger benefits and ensure that the cost is low. Some of the underlying models which make a business look towards changes are as Change in strategy of the manner the business looks towards conducting its business as the old methods have become outdated and is not providing the same benefits When a certain part in the entire process is acting as a hindrance and requires some changes for maximum benefit To develop a training and motivational program which is aimed at making the employee deal with the organizational changes and ensure effectiveness in rendering services Equipment or technology which was used has become obsolete and require changes to ensure that the productivity of the organization improves A merger or an amalgamation which has changed the functional sharing and requires major changes to ensure effectiveness Change in the organizational structure which require changes to be made elsewhere so that the overall process is able to understand the process of change and make alterations at the different areas to get maximum benefit External condition like changes in government policies, tax structure and aspect which are beyond the control of the business has made it mandatory to implement the required changes Thus, the above are few of the underlying reasons which could vary depending on the organization and the purpose which will be achieved through whose changes. 12. There are different problems which a business has to deal with while dealing with people who are different and it is imperative that their differences are removed and all of them work together so that better efficiency can be achieved. Dealing with diversity in workforce is a vital issue for management as being unable to deal with it could de-motivate the employees and would make it difficult for the employees to accomplish the task in hand. To ensure that the problem is dealt and understood by the employees it is important to make them understand the manner in which workforce diversity will benefit them. The organization has people with different personality traits and the incompatibility that exists between the leaders to achieve the task in hand. To ensure that the staff understands the important of having en effective workplace where there is cultural integration and a procedure for customer satisfaction it is important to clearly demonstrate the same to the employees. The foremost important thing here is to make the employees understand the manner in which the changes will benefit them both in personal and professional life. Along with it the management has to ensure that they effectively depict the employees the manner in which the changes will facilitate them for advancement in carrier and will also brighten their future prospects for tougher roles This thereby ensures that having a cultural diversified workforce ensures that the business is able to make changes easily and develop strategies based on which the organization will be able to perform better. This provides the required direction and platform through which overall efficiency within the organization is improved and the organization is able to ensure that the workplace contributes positively towards the organizational culture and helps to achieve the goals. 13. The importance of knowledge management is seen in business in the field of quality control, business process engineering needs to look forwards towards knowledge management due to the wide contribution this field has on operations, IT, finance and human resource. This has made it important that business looks at knowledge management deeply and takes steps to develop it. Improving the share of knowledge management in business will ensure that the business is able to reduce turnover rates, ensure reduced time to train workers, and ensure innovation in all directions which helps to improve the business performance. This thereby increases the relevance of knowledge management and ensures that through this process the business is able to develop new business opportunities. This has been due to knowledge management which has provided the management with the understanding of the market which has helped them to innovate with new things and products. This element has been reflected as the new product which they have developed looks towards providing proper services to the customer by providing them an opportunity to wash their cars without water at the same time ensuring that the paint is not damaged. This has been possible due to innovation and the ability of the employee to use it shows the presence of training programs which has helped them to gain efficiency. This further showed that knowledge management has a positive effect on innovation as the different tools and transformation of knowledge through the asset base helps to improve the overall stature of the business and provides an opportunity to test something new. An organization not using knowledge management thereby faces difficulty in ensuring the required changes as they are unable to find out the most effective ways in which changes can be implemented which thereby has an effect on the performance of the organization and makes it difficult to achieve efficiency. 14. The manner in which the environment for an organization is changing it has become imperative that the organization looks towards having a proper mix of people from different culture, sex, ethnic and races so that there is proper diversity in the workforce. Attaining a balance within the workforce helps to ensure that any decisions that are taken by the business are supported by all and helps the business to implement those easily. Ensuring a proper mix further helps to improve the brand image of the organization as it ensures that the outsiders and the society is able to witness the fact that the organization hasn’t differentiated between people and have chosen people entirely based on merit. The IS/IT system helps in the development of culture, power structure, and communication as technology ensures that a proper mix is ensured through which the organization is able to gain maximum efficiency. An organization which has been able to develop a multicultural environment with people from diverse background has been able to develop an environment where there is maximum productivity. The productivity ensures that people working in the organization will be able to take better decisions and work together as a unit. The factor which played a role here is the manner in which the different factors were brought together and ensured uniformity in decision making. The only risk for the business is the vulnerability that the IS/IT system presents because of human error. Ensuring that the business looks towards dealing with the human and organizational factor by ensuring that the gap which existed is removed will help to work uniformly. This will provide a basic framework through which the decisions will be verified and the chances of human error will be totally controlled. 15. It is imperative that organization make use of the IS/IT system and look towards sharing information which will help to improve the performance and will provide an opportunity through which better developments can take place. Implementing the information sharing system will raise different problems for the business which has to be handled in the best possible manner. One of the major problems the business for the business is that implementing the new system will require some hardware tools which have to be procured. This will result in increased cost for the businesses as they will have to look towards procuring it which will thereby have an impact on the overall business arena. In addition to it the changes will also require person with specialized knowledge to be able to perform the required skills and should be in a position through which they are able to handle the different responsibilities in the most proficient manner. This will thereby translate into increased difficulties both associated with cost and manpower. In addition to it convincing the work force regarding the merits of changes will be a difficult proposition and will require that the organization looks towards highlighting the manner in which it will simplify their role and ensure better business opportunities for the business. This will thereby require that the workforce understands the major ramifications and based on it looks towards identifying the different areas through which overall efficiency is gained within the system. The other concern for while implementing the information sharing system is that it will raise problems during the working of the system and will require that proper strategies are developed through which better developments take place. This will require that the areas which are an area of concern are dealt in the best possible manner and thereby require ways through which proper development can take place. 16. Electronic commerce has seen a growth due to which business has been able to handle the different resources in the most efficient manner. This has helped to identify mainly five type of model which the e-commerce industry faces. Some of the major forms of electronic commerce model are business to business, business to consumer, consumer to consumer, peer to peer, and m-commerce. The different forms of electronic commerce rely on the different functions and looks towards improving the opportunity for the business through the use of the different models. The major problem that business faces while looking towards moving into e-commerce is the new system will require some hardware tools which have to be procured. This will result in increased cost for the businesses as they will have to look towards procuring it which will thereby have an impact on the overall business arena. In addition to it the changes will also require person with specialized knowledge to be able to perform the required skills and should be in a position through which they are able to handle the different responsibilities in the most proficient manner. This will thereby translate into increased difficulties both associated with cost and manpower. In addition to it the other problem that the model creates is the appropriateness of selecting the correct model so that the business is able to garner maximum efficiency through it and are able to ensure that they are able to cover the different areas through which overall efficiency for the business improves. This will thereby result in increasing difficulty for the business as implementing the model will require that the business understands the model and based on their requirements decide the model which will suit their business. This will help to gain overall efficiency. Read More