Research Korner: Information Technology

IT in Organizations

Technologies that Impact on Organizations Overview In order to function well, each organization must be able to effectively manage their human capital with respect to the emergence of information technologies. Human capital is well-recognized as the most important asset of any organization (Elkin, & Sharma, 2007). However, due to some internal and external factors, organizations are not able to achieve their organizational objectives and mission.The challenge of every business, in whatever context it operate, is to effectively manage resources such as labour, financial, information, raw materials and so on. Companies must be able to acquire and carry the fundamentals of business management and its dimensions including Human Resource Management (HRM) into action. In every business particularly its HRM sector, the information technology plays significant roles. One of the roles of technology in HRM was its effectiveness in communication.   Discussion It is said that the philosophy of human resource management is based on the simple belief that human resources are the most important asset in achieving and sustained business success (Evans, Pucik, & Barsoux, 2002). This realisation became the driving force behind the creation of human resource management resulting in organisations taking a strategic approach to the management of their people.     The true worth of human resource management is becoming more widely understood as human resource management steadily interweaves all aspects of people management and development within the company (Cross, 2000).   At the turn of the century, human resources managers will have to face new challenges (Kanungo, 2006). The economy and markets are different from those of a decade ago. As paradigms have changed, the characteristics affecting human resources management must also be revised such as organisational structure and functions in order to keep up to pace with relevance, latest trends and strategies (Kanungo, 2006). While every organisation seems to invest in technology, there are other aspects that should be considered in attaining a holistic performance of their respective organisation (Kanungo, 2006). One aspect that needs as much, if not more attention and investment than technology is human capital management. An organisation’s human capital management philosophy must value the workforce as a key asset that will define an organisation’s character and performance capacity (Sims, 2002).  “In fact, human capital is a critical factor that would either lead the organisation to success or to failure,” as stated by Sims, (2002). In every business, people must be recognised as important assets of the organisation and fuels of productivity. A more appropriate HRM strategy is bounded on the recognition of the benefits of diversity. It is suggested that in order to respond on local HR concerns of subsidiaries, organisations should integrate the idea of diversity on its current HR policies and practices in accordance to the use of technology (Peltonen, 2006). In a diverse business setting, the customs, beliefs, and practices where the organisation has set up its business, are significant contributory factors in the development of a stronger corporate culture. With respect to information technology, there are many ways in which businesses can communicate and promote diversity to a level of advantage within the company’s subsidiaries Peltonen, 2006). These are also among the practical justifications of the benefits of suggesting diversity as the enhancing factor of the present HRM strategy. In general, information technology in HRM must serve as the common denominator in understanding employee relations across geographic and cultural borders. Relativity in HR policies and practices and diversity and multiculturalism must be understood by all HR Managers particularly those who works outside the boundaries of the mother company. When this happens, the ability of the organisation to perform very well in the industry and niche market it belongs is progressive in pattern. The employers, in their goal to improve and develop aggressive and competitive business organization, may exhaust the potential of their human resources for the benefit of the company relative to total work output by enhancing their respective information technology. This will also promote the positive working relationship and good communication channeling among the personnel in the establishment whether between the supervisor and the subordinates or employee to peers and colleagues. The employees, on the other hand, should avail of the opportunities of developing their skills further and enriching their knowledge through the training programs and exercises that their company invests on. This will ensure their competitiveness in the fast-paced and ever-changing description and scope of their work and may also sustain their personal desire of improving themselves as productive individuals. Minimum stress level could also be expected in the workplace atmosphere. In the evident advantages of information technology on the side of both the employers and employees, it is apparent that the business organization as a whole will in general gain from utilizing the said training and bonding practices. The smooth working business operations and transactions inside the company that resulted from the availed information technology in HRM will guarantee that the higher productivity level of the organization in general.   References: Cross, E (2000) Managing Diversity-The Courage to Lead, Quorum Books, Westpoint, CT Elkin, G and Sharma, R (2007) ‘People, organisations and management: lessons for the industrialised world from the rest of the world’, Global Business and Economics Review, 9: 4, 395-416 Evans, P, Pucik, V, and Barsoux, JL (2002) The Global Challenge. Frameworks for International Human Resource Management, McGraw-Hill/Irwin, New York Kanungo, RP (2006) ‘Cross culture and business practice: are they coterminous or cross-verging?’ Cross Cultural Management: An International Journal, 13: 1, 23-31 Peltonen, T (2006) ‘Critical theoretical perspectives on international human resource management’ in Stahl, G. K. and Björkman, I. (eds), Handbook of Research in International Human Resource Management, Edward Elgar, Cheltenham, pp. 523–535 Sims, RR (2002) Organizational Success through Effective Human Resources Management, Quorum Books, Westport, CT

IT in Organizations

Technologies that Impact on Organizations Overview In order to function well, each organization must be able to effectively manage thei...

Investigative Techniques: Use of Technology in Forensic Accounting Investigation

Investigative Techniques Use of Technology in Forensic Accounting Investigation               Forensic accounting, rather than being lenient with answering questions of interest to a legal system, could be described simply as an accounting analysis that is suitable to the court and which will form as the basis for discussion, debate and ultimately dispute resolution. Also known as forensic investigation or forensic auditing, forensic accounting encompasses both litigation support and investigative accounting. On the other end of the spectrum, technological capabilities are increasingly becoming significant for financial capacity and output and for the purpose of determining the soundness of financial decisions. The use of technology, however, is not confined with financial developments within a company or organization. Information technology (IT) is also used to evaluate the financial reality of a certain situation hence technology is integrated in accounting, auditing and investigative schemes of forensic accounting. In this paper, how technology plays a role – either constructive or destructive – in forensic accounting will be discussed. Forensic accounting and technology             According to Hinders (2009), forensic accounting is a field that combines accounting with IT. One of the reasons is because forensic accountants, as the practitioners in the field, make use of sophisticated computer programs to analyze financial data and find evidence which would be legally valid during a court proceeding. Notably, objective verification is the primary goal of forensic accounting and is also the reason why forensic accountants are asked to testify in court cases as expert witnesses. Working on both civil and criminal court case, forensic accounting professionals may be asked to calculate economic damages or to present evidence of offenses. Informations need to be accurate because these are used to distinguish about how much something is worth. Today, information are mostly stored in the computers especially that businesses make use of IT at some level thus it is a duty of forensic accountants to understand and explain how IT plays a role in offenses and likewise how IT could pinpoint what particular components of information gathered plays a role in accumulating the offense.             One of the key areas that IT can definitely support forensic accounting is database knowledge and an understanding of how the database system works (Parizo, 2009). As such, forensic accountants may understand all the informations but not all the systems involved with these informations. Looking at an offense scenario from a fraud-awareness perspective, forensic data analysis would be simply with the aid of IT and, at times, IT experts in examining organizational data in order that patterns of fraud profile could be identified. These data/informations could be logical and/or numerical and statistical. Neural-net and other data mining technologies, for instance, could be utilized for the purpose of developing models of fraud detection, prediction and prevention where known fraud patterns are lacking or obscure. Developing an offense scenario, translating this scenario into an offense profile and applying appropriate investigative techniques to corporate databases would be convenient using different technologies.      Technological products for forensic accountants             Computer hardware and software could be both use in committing an offense but software manipulation proved to be more apparent. Operating systems software consists of programs which keep computers running as automatically as possible whereas applications software consists of computer programs that apply the computer to the user’s needs through carrying out a task the user wants performed, both of which present challenges for forensic accountants to uncover fraud and other offenses. These software tools require forensic accountants to use state-of-the-art facilities and software tools to equal the capacity of the two (Nunn et al, 2006). Iwata (2003) related that most of the criminals behind offenses use sophisticated technology and accounting tricks.             For the forensic accountants, there is the necessity then to dig deeper into a company’s computer system. Bigler (2001) assert that without the proper equipment such a process could be difficult for forensic accountants. Forensic accountants can use specialized software and computer hardware to facilitate the preservation, collection, analysis and documentation of evidence. There are many new technologies that aid and allow investigators to recover deleted files, crack encryption or codes and extract and sort data. One among the newly developed software program is that of KPMG Forensic Accounting which helps in determining how fraud was penetrated. This is through the preparation of TRACE or Transactional Representation of Assets and Court Evidence diagram. TRACE diagram provides a computer-generated graphical and concise summary of a series of transactions. This diagram also presents informations on events or structures in an easy-read format for the purpose of mapping the flow of funds through the penetrator’s private companies/accounts while also identifying the parties involved. Sing (1999) also stressed that the diagram is useful in providing litigation support to the civil and criminal proceedings.   Another software program is called Gargoyle which can detect steganography, a process by which data can be hidden within other files. With the use of steganography stolen data could be hidden and would not be detectable until Gargoyle. Gargoyle software was released by WetStone Technologies in May 2003 and was developed to work with the National Software Reference Library (NSRL). NSRL housed a collection of digital file signatures known as hashes that are developed from thousands of common software programs. Such hashes allow investigators to check if any alterations have occurred. Piazza (2003) emphasized that in addition to steganography Gargoyle is also equipped with 550 Trojan horse toolkits, 94 wireless war driving software tools, 455 encryption programs and hundreds of key-logging and password-cracking applications. Satov (2003) mention that a Houston-based company named ChurchStreet Technology also introduced a software which could be useful for forensic accountants and other crime-fighting agencies. The software developed enables the reconstructuring of shredded documents electronically, offering a speedier alternative to the laborious task of searching, matching and pasting strips manually. Such process uses proprietary digitizing techniques to scan shredded paper and then matches them with specialized software. This software can also reconstruct documents that have been cross-shred or cut into two directions into tiny pieces.       Advantages and pitfalls of computerized forensic investigation             According to Golden et al (2006, p. 387), the utilization of software applications and understanding their capabilities from basic to advanced can bring rapid and powerful results to the successive phases of an investigation. To tap its efficiency, users must know how and why to employ such tools, making it difficult to assess whether forensic accountants – experienced or otherwise – are skilled users of these software as investigative tools. Forensic accountants must thereby understand that being aware of advanced software tools could bring added value and quality to the investigation itself. One of the benefits to forensic accountants of computerized investigation is that they will be able to analyze a large number of transactions, identifying trends, spotting documents that need further review and gaining initial insights while drawing away from the constraints of time and cost as the process does not require the accountant to wait for the cumbersome process of collecting documents by traditional means and therefore devote the time to more important things like analysis.             Further, data mining proves to be cost-effective as well aside from being a more comprehensive approach than the hard-copy document review. Murphy (2009) notes that data mining is an art of analyzing large amounts of data in a manner that detects obscure facts, trends or inconsistencies in a complete and efficient manner utilizing intelligent computer applications. Data mining therefore benefits forensic accountant to proactively detect frauds and other offenses at the same time. In cases where hardcopy of documents may be incomplete, computerized information can assist in providing reasonableness of findings (Golden et al, 2006). Computerized information enables forensic accountants to investigate the entity of the offense be it corporate disputes, fraud, business economic losses and professional negligence among others by depending on computer records. Electronic data on its financial transactions are immense that is why forensic accountants are not limited to discreet number of records to base their findings from. With this, it would be also convenient for forensic accountants to present data in courts accurately and with supporting evidences.             On the other hand, forensic accountants must also understand the pitfalls inherent with computerized information. Manning (2005, p. 194) state that for one, data mining is just a component of the investigation process where computer and the amount of accounting-related information available could not be treated as a substitute for rational judgment and experience. Computerized information cannot replace document reviews, interviews and follow-up steps. Inherent to computerized information also is the risk of compromising data due to the fact that these are subjected to human manipulation. Likewise, these informations require double checking for accuracy and completeness. The rationale behind this is that an incorrect and incomplete data may contribute to premature and incorrect conclusions and findings. Carmichael and Graham (2009, p. 298) asset that limitations of software tools could also impede with the development of the investigation since there are certain data mining tools which may not be appropriate to certain tasks. The complexity of the tools used should be commensurate with the size and complexity of what it is being observed.             Computerized investigation could breed an atmosphere of complacency because the tendency is for forensic accountants to rely too much on the tool itself. So that the operational and financial benefits of data mining could be maintained, forensic accountants must bear in mind that skilled technical use of the tools must be combined with sound analysis and judgment. Forensic accountants must be also careful when it comes to copying a computer file because certain elements can be altered if not executed correctly (Singleton et al, 2006, p. 159). Proper computer forensic techniques should be used to avoid inadvertently altering evidence. Compliance with legal entities should be also considered particularly because not all environments are the same. Mohay et al (2003, p. 175) also commented that before commencing data collection, planned procedures must be allowed from a legal perspective and that any evidence gathered maybe used for legal purposes if required. Nonetheless, forensic accountant must be also aware of specific regulations applied to export of data/information and privacy regulations attached to it. Proper legal advice must be sought in this case.     Computerized forensic analysis as evidence             Mohay et al (2003p. 122) contend that a unique feature of computer forensics is the requirement that the application of the technology must be carried out with due regard to the requirements of the law. Failure to comply can result in digital evidence being ruled as inadmissible or as tainted. The court recognizes that the forensics technology and the evidences produced through such must embrace the legal requirements including admissible, authentic, complete, reliable and believable. Computer evidences to be successful in court must conform to certain legal rules before it can be put to a jury, must be possible to positively tie evidentiary material to the incident, must tell the whole story and not a just a particular perspective, must be nothing about how the evidence was collected and subsequently handled which causes doubt about its authenticity and veracity and must be readily available and understandable to members of a jury.               Amongst the mentioned legal requirements, admissibility is the most important as this relates with the conformity with common law and legislative rules. Vacca (2005, pp. 20-21) added that another requirement of the jury is that computer evidences should be free from interference and contamination to be regarded as real or testimonial evidence. A forensic accountant is obliged to determine whether computer evidences are of acceptable levels as a result of forensic investigation and other post-event handling (Solomon et al, 2004, p. 2). Certain elements must be present with computer evidences to be admissible before the jury which include well-defined procedures, an anticipation of likely criticism, the possibility of repeat test to be carried out, checklist to support methods used, anticipation of any problems in formal legal tests of admissibility and acceptance that any methods now described would almost certainly be subject to later modification.   Future of computerized forensic evidence             In the very near future, the computerized forensic or forensic technology will demand the necessity of a multidisciplinary approach for the purpose of further legitimizing evidences (Rogers and Seigfried, 2004). Because computer evidences pass through a process of identifying, preserving, analyzing and presenting in a fashion acceptable in a legal proceeding, the jury could require the collaboration with legitimate IT specialists other roles involve like computer technicians as expert witnesses as well as auditors, legal counsels and legal representatives among others. Computerized evidences also requires that forensic accountants of comprehensive understanding of laws affecting these evidences. Locating the desired evidence could also mean that forensic accountants to determine the vulnerability to data fishing or dredging. Acquisition and protection of computerized evidences could also give birth to new legal requirements of preserving or destruction of such.             References Bigler, M 2001, ‘Computer Forensics Gear,’ The Internal Auditor, August, p 27. Carmichael, D R & Graham, L 2009, Accountant’s Handbook 2009, John Wiley and Sons, New York. Golden, T W, Skalak, S L & Clayton, M M 2006, A guide to forensic accounting investigation, John Wiley and Sons, New York. Hinders, D 2009, ‘What is Forensic Accounting?’ retrieved on 4 June 2009, from http://www.wisegeek.com. Iwata, E 2003, ‘Accounting Detectives in Demand,’ USA Today, 27 February. Manning, G A 2005, Financial investigation and forensic accounting, CRC Press. Mohay, G M, Anderson, A, Collie, B, de Vel, O & McKemmish, R 2003, Computer and intrusion forensics, Artech House, London, UK. Murphy, R 2009, ‘The DNA of a forensic accountant,’ PricewaterhouseCoopers, retrieved on 4 June 2009, from http://www.pwc.com. Nunn, L, McGuire, B L, Whitcomb, C & Jost, E 2006, ‘Forensic Accountants: Financial Investigations,’ Journal of Business & Economic Research, vol. 4, no. 2, pp. 1-6. Pariso, E B 2009, ‘Forensic accounting success depends on information security support,’ SearchFinancialSecurity.com, retrieved on 4 June 2009, from http://searchfinancialsecurity.techtarget.com. Piazza, P 2003, ‘Now You See It,’ Security Management, December 2003, p 26. Rogers, M K & Seigfried, K 2004, ‘The future of computer forensics: a needs analysis survey,’ Computers & Security, vol. 23, pp. 12-16. Satov, T 2003, ‘Back from the Shred,’ CA Magazine, November, p 10. Sing, A 1992, ‘Forensic Accounting: Looking for Clues.’  Australian CPA, March, p 42. Singleton, T, Singleton, A, Bologna, J & Lindquist, R J 2006, Fraud auditing and forensic accounting, John Wiley and Sons, New York. Solomon, M G, Barrett, D & Broom, N 2004, Computer forensics jumpstart, John Wiley and Sons, New York. Vacca, J R 2005, Computer forensics: computer crime scene investigation, Cengage Learning.

Investigative Techniques: Use of Technology in Forensic Accounting Investigation

Investigative Techniques Use of Technology in Forensic Accounting Investigation Forensic accounting, rather than ...

INFORMATION TECHNOLOGY MANAGEMENT

Contents 1.      Introduction 2.      Dell Computer Corporation Company Background 3.      IBM Company Background 4.      Reasons for choosing the two manufacturers 5.      Comparison of the products the two company has 6.      The best choice among the two 7.      Conclusion 8.      References                             Introduction For businesses, information technology is only a means to an end which is the use of knowledge to make and implement commercial decisions. Efficient organizations require established systems to enable them to make the best possible decisions in the situations they are likely to meet. Thus an organizational information system should collect data, analyze and present this as useful information that can be retrieved as the basis of expert knowledge at the point of decision. Once decisions are made they must be passed on to those who implement them, carried out, and the success or failure of the operation monitored. Increasingly decisions can be automatically implemented using the technology, thus enabling organizational objectives to be achieved with maximum efficiency. Information is the major resource of modern businesses. In many cases businesses could even profit from having their physical plant destroyed, but could never recover from losing their information resources ( 2002).    This was graphically illustrated in post-Second World War Germany/Japan when bombed industries recovered dramatically with new plant and inherited know-how. Hence some economists argue that information is a fourth major factor of production in addition to land, labor and capital, which is of increasing importance. However, an important point not so far stressed, is that the business information we have been describing is not just a series of isolated lists but is all interrelated. If one piece of information alters particularly the specification of a product then many other items will be affected such as how to produce it, suppliers required, potential customers, etc. In other words a business’s information is a system and should be organized accordingly ( 2002).   A related, but not identical, point is that it is misleading to think of business information as a static list of useful things to know; rather, it should be considered as a dynamic flow. Thus information will be acquired by one department and used. This then creates new information, which is vital for a second department. Computer people usually talk in terms of data input, processing and output, to describe what goes on within a department or part of the work process. In these terms what people are saying is that one man’s output is the next woman’s input. The quality of an information system will thus depend not only upon the excellence of the hardware and the subtlety of the software employed, but also on the accuracy and relevance of the data collected, plus the quality of the human professionals who use the system, This, in turn depends upon the extent to which the organization succeeds in coordinating and motivating employees to achieve corporate objectives (2002).   Over thirty-five years have passed since academics began speculating on the impact that information technology (IT) would have on organizational structure. The debate is still on-going, and both researchers and managers continue to explore the relationship between IT and organizational structure. This relationship is becoming increasingly complicated by both the rapidly changing nature of IT and the increasing environmental turbulence faced by many organizations. As organizations need to process more information under these uncertain conditions, IT is one possible way for organizations to increase their information processing capability. However, other, more organizational tools are also at their disposal for processing more information. These include task forces, lateral relationships, self-contained work groups, and slack resources. Thus, the relationship between IT and organizational structures is not a simple one ( 1998).   It is commonly acknowledged and understood that information technology (IT) is having a dramatic effect on both our personal and professional lives. IT is also changing the nature of our organizations by providing opportunities to make fundamental changes in the way they do business. Many of the opportunities are recognized and understood. Yet a tremendous number of issues and consequences are only vaguely perceived while other questions are just now being raised ( 1996). The technology is changing rapidly, with computing speeds and the number of transistor equivalents available in a given area of a microprocessor chips both doubling approximately every 18 months.   Organizations are acquiring more and more technology systems to assist in everything from manufacturing to the management of information to the provision and improvement of customer service. Harnessing and coordinating this computing power is the challenge. New tools and innovative perspectives with which to examine, interpret, and comprehend this rapidly evolving environment is always needed and sought ( 1996). The paper will select two manufacturers and compare products they have. The paper will also discuss the reason for choosing the two manufacturers. Moreover the paper will choose which among the two can create a computer system that works well with less cost. The information acquired will then be used to create proper conclusion regarding the paper.   Dell Computer Corporation Company Background Dell Computer Corporation is a major manufacturer of personal computers, computer peripherals, and software. Among the leading producers of computers in the world, Dell sells its products directly to customers through the Internet and mail-order catalogs rather than through retail outlets. The company is based in Round Rock, Texas. At Dell Computers, customers are brought into the product planning and manufacturing processes, with all employees encouraged to have contact with customers. Through effective collaboration across boundaries, ideas can be shared about product designs and value propositions. The result is faster and more customer-focused product and service innovation. To produce the capacity for this, considerable attention must be placed on organizational structures, processes, skills and culture. Such elements that may need a radical overhaul in established companies ( 2002). Dell was founded in 1984 by . In 1983, during his freshman year at the University of Texas, he bought excess inventory of RAM chips and disk drives for IBM personal computers from local dealers. He resold the components through newspaper advertisements at prices far below retail cost. By 1984 his sales totaled about $80,000 a month. In April 1984 Dell dropped out of school to launch his company (, 2003).The new company soon began manufacturing its own IBM-compatible computers under the name PCs Limited. Because Dell sold computers directly to users through advertisements in magazines and catalogs, the company could price its machines lower than those sold through retail stores. Sales reached nearly $6 million during the company’s first year, climbing to $34 million the following year. By 1987 Dell was the leading mail-order computer company in the United States. That year it created a sales force to target large corporations and began adding international offices to capture the direct-mail market outside the United States ( 2003).   While the company continued to grow rapidly; Dell experienced a series of setbacks that hurt profits. In 1990 the company began selling computers through retail stores, an effort it abandoned in 1994. In 1991 Dell launched a line of notebook computers, but quality problems and inadequate production planning forced the company to stop selling them for a year. In 1994 Dell launched a new line of notebook computers and expanded efforts to increase overseas sales. Dell also began focusing on the market for servers, which are computers used to run local area networks. By the late 1990s, Dell was firmly in place as the world’s number one direct seller of computers. More than 50 percent of the company’s computer sales transactions took place via its website, which generated worldwide sales in excess of $40 million a day (, 2003).   IBM company background As late as 1960 IBM was still primarily a punched-card machine supplier. It was not until 1962 that computer sales equaled those of its traditional punched-card products. But by the end of the decade, its punched-card machine sales were essentially vestigial. While IBM was making this transformation in its product line in the 1960s, it was also growing at the rapid rate of 15 to 20 percent a year and soon achieved a domination of the computer market that was historically unparalleled in any other major industry. From annual sales of $1.8 billion and a head count of 104,000 in 1960, it had rocketed to sales of $7.2 billion and 259,000 employees by the end of the decade. Its market share was over 70 percent in 1960, a position it was able to sustain and even exceed throughout the decade. IBM's success was creating a difficult environment for its competitors. By 1960 the mainframe computer industry had already been whittled down to just IBM and seven others. Of all the mainframe suppliers,  had suffered the biggest reverse, consolidating a decline that had begun well before the launch of the 1401. Despite being the pioneer of the industry, it had never made a profit in computers and was gaining a reputation bordering on derision ( 1996).   For many years IBM's domination of the computer industry was attributed to a variety of factors: its managerial competence; its technological excellence; its formidable marketing organization; its monopolistic and antitrust business practices; and the leadership exerted by the Watsons. Yet when IBM fell into a decline, very little had changed. Its technology and marketing were as good in the 1990s as at any time in its past; and while it had only a 20 percent market share, it exceeded its nearest competitor in size by a factor of five; and even though the Watsons were no longer at the helm of the company, IBM's leaders were still among the most respected in the world. This suggests that there was something in the environment beyond IBM that was responsible for its rise and fall. IBM was blessed with a unique combination of organizational capabilities that equipped it perfectly for the mainframe computer market. While it fit this environmental niche, IBM prospered wonderfully; but once that niche changed, IBM's strategies were no longer appropriate ( 1996).     A key difference between IBM and its competitors persisted right into the computer age. Thus, when a company used equipment from one of IBM's office machine competitors, it was all too likely to acquire a problem rather than a solution. Often the computer and its software were no more than a set of tools with which to fashion a solution, instead of the solution itself. Only IBM guaranteed a complete solution to business problems, and an IBM salesman was all too likely to remind a data processing manager that no one ever got fired by hiring from IBM. This was a patronizing attitude that came close to condescension, and often resulted in a love-hate relationship between IBM and its customers.    In the mid-1970s a great change began to occur in the computer industry, which was fully realized in the 1980s; 1973 marked the first year that more than 100,000 computers were in use worldwide. But the growth slowed, and in 1978 there were only 7,000 more computers in use than there had been five years earlier. The mainframe had matured and become a commodity, while IBM's expertise in systems integration was increasingly taken over by software. As a result, computer users had far less need of IBM to hold their hand, and it was inevitable that they would begin to drift to other, less intimidating and less expensive suppliers ( 1996).   Diagram of a computer system *taken from The diagram showed the interconnection of computer systems. The diagram showed which part of the computer system is vital and related to another part.  The said diagram also showed how important each part is to the others. The two manufacturers tend to provide the different parts needed in the computer systems. One of the two manufacturers that can provide a system that is good internally at the same time provides satisfaction to its user.                                                                                                                                                                                                                                            Reasons for choosing the two manufacturers It is perhaps not difficult to imagine that new products take markets from existing products, making redundant the services of the workers who are engaged in that production and rendering obsolete the capital which is similarly engaged. In the same way, new processes of production undercut existing technologies used by rival firms, causing them to make losses, to lay off workers and close down capital, and ultimately driving the marginal ones out of business. But because all of these effects are indirect, it is less easy to see the connection between the deployment of new technology in a particular plant, and the destruction of capital and of job opportunities elsewhere ( 1987). The more specific the capital, the more radical the nature of the new technology, and the more rapid the rate of change, then the greater will be the consequent dislocation. It will affect not only the producers of existing products and the users of existing processes. They will lose markets and find their costs of production undercut; it will also affect the unsuccessful competitors in the process of innovation. It has been estimated that it took 30 years from the start of the computer industry in the late 1940s for that industry to reach break-even point. Until the early 1980s the profits of the few successful computer manufacturers were more than offset by the enormous losses suffered by the rest, principally the large international electrical companies, such as GE, Westinghouse, RCA, GEC, Plessey, Ferranti, Siemens, AEG and Philips, all of whom ultimately failed in their attempt to remain major computer manufacturers ( 1987).   What happened in the growth of the computer industry differed only in detail from what happened earlier in the introduction of new technology in other industries in the western world. A similar pattern of competitive innovation can be discerned in the growth of railways in the early nineteenth century, and in the expansion of the electrical appliance industry in the 1920s. In each of these earlier waves of innovation there is a clear pattern of cause and effect from which we can learn. The present wave of innovation is however taking place in a very different social and political environment from that which has gone before, and therefore we should expect to find differences as well as similarities in the effects of the introduction of new technology today ( 1987).   There are other manufacturers that focus on computers and IT related functions but these two are chosen for different reasons that will be discussed accordingly. The two manufacturers are competitive and place well in the computer manufacturing industry. They can be considered the best in the industry and they do well against competitors.  These two manufacturers were chosen because they already have an established name and a good reputation it must protect. This gives an assurance that they offer the best kind of product and service. They cannot afford to have a negative image to their clients. The two also have been in the industry for so long.   Comparison of the products both companies have One of the best products of Dell is its hard drive. The company makes use of excellent technologies in creating the different hard drives they offer to clients. These hard drives are easily adaptable and compatible to every clients needs. The hard drive determines how much space is still available for a client to use for his files. A manufacturer can easily create hard rives without considering a clients need. But Dell makes sure that the clients and their needs are given attention in creating a product. Another product that Dell creates well is its monitor. Its monitor gives the best graphics possible. It offers optimum satisfaction to the clients and removes any problems encountered when using the monitor.   On the other hand IBM’s best product is its processors. The company makes sure that its processors are of good value. It makes sure that the processors pass the standards they have and that the processors can give benefits to the clients. Another product that IBM creates well is also its monitors. Its monitors are not only high quality but price is reachable. The monitors produce exceptional performance and this gives it advantage over other monitors. A software that IBM creates well is the rational functional tester v 6.1 that gives simplification of product testing without sacrificing the versatility of project teams. Another software that IBM creates well is the Workplace services express v2.6. This software offers portal collaboration and solutions development platform that is best for a business enterprise.    Cost and Licensing of the products of the manufacturers Different things are needed in a business. These things include computers, office supplies, office equipment and other things needed in the office. To have this equipment a thing put into consideration is the cost the company has to make.  In any business the cost of the things they purchase and use are important. Companies don’t want to incur high cost. They tend to do everything they can so that the cost will be minimized. The hardware and software of the two companies can give a person major costs. Among the two companies the Dell’s products cost higher. This is due to the different expenses done by Dell to manufacture its products.     License is a permit granting permission to engage in an activity that would otherwise be illegal. The main purpose of a license is to protect the public interest. A license issued by a government agency is required in order to pursue certain occupations, run certain businesses, and enjoy certain privileges. In the U.S., for example, a person must have a license to practice medicine and law; brokerage firms and restaurants are two types of businesses that require licenses; and one must have a driver's license to operate an automobile on public roads. Fees for licenses are a source of revenue for the government. The licensing of the manufacturers software and hardware was already done ( 1993). Licensing was done to make sure that the company will not be branded of doing something illegal. This also gives additional assurances that the manufacturers offer products that are within standards since license are acquired if the products pass the standard.   The best choice among the two manufacturers In creating a computer system a thing given attention is the cost that will be incurred in creating a computer system. The cost that will be incurred is important because a high cost cannot be beneficial to a person or a company. On the other hand a very low cost can also cause problems to the individual or the company since the parts of the system may not be of good qualities thus additional costs will be made for repairs to the system.  Another thing that is given attention is the reputation of the manufacturer.  The manufacturer should not only be known well but has no bad track record. The reputation determines how the manufacturer is liked by the clients and how well the company treats its clients. Among the two the best choice is IBM.IBM has already had an established name and its products cost lesser than Dell. IBM also has been in industry for a longer time thus it already has different techniques in manufacturing products that is different against techniques used by dell. Lastly IBM offers products that cost lesser but of good quality. The products offered by IBM although lower in price are of good quality. These products are well made and its prices are adjusted according to the needs of the public.   Conclusion Information technology is only a means to an end which is the use of knowledge to make and implement commercial decisions. Efficient organizations require established systems to enable them to make the best possible decisions in the situations they are likely to meet. These two manufacturers were chosen because they already have an established name and a good reputation it must protect. This gives an assurance that they offer the best kind of product and service. They cannot afford to have a negative image to their clients.  A key difference between IBM and its competitors persisted right into the computer age. Thus, when a company used equipment from one of IBM's office machine competitors, it was all too likely to acquire a problem rather than a solution. One of the best products of Dell is its hard drive. Another product that Dell creates well is its monitor.   On the other hand IBM’s best product is its processors. Another product that IBM creates well is also its monitors. The software that IBM creates well is the rational functional tester v6.1 that gives simplification of product testing without sacrificing the versatility of project teams. Software that IBM creates well is the Workplace services express v2.6. This software offers portal collaboration and solutions development platform that is best for a business enterprise.  In creating a computer system a thing given attention is the cost that will be incurred in creating a computer system. Among the two the best choice is IBM.IBM has already had an established name and its products cost lesser than Dell. IBM also has been in industry for a longer time thus it already has different techniques in manufacturing products that is different against techniques used by dell.   References

INFORMATION TECHNOLOGY MANAGEMENT

Contents 1. Introduction 2. Dell Computer Corporation Company Background 3. IBM Company Background 4. Reas...

Business Information Systems :Case Study of Catatech Industries

Business Information Systems Case Study of Catatech Industries             Table of Contents   Question1: Discuss how IT has changed value propositions and business models in e-Commerce. 3   Question 2: 5   2.1 Discuss the impact of competition on the e-Commerce strategic information systems plan of the company. 5   2.2 Discuss how this can be neutralised. 6   Question 3: Discuss the impact of e-Commerce on ethical, social and political issues?. 7   Question 4: Discuss the lessons South African businesses can learn from this case study. 9   Question 5: What management issues are raised by knowledge management systems in e-Commerce? Use examples to discuss this in detail. 10   References. 12       Question1: Discuss how IT has changed value propositions and business models in e-Commerce.               Intensifying competition in the global market supports the key role of information technology (IT) in driving organisational change (Porter 2001). Competitive advantage emerges from the ability to draw a wider market, especially with the saturation of local markets and increasing global demand. Business firms aiming to take a share of the global market have to adhere to change by adopting and integrating IT into business models and processes. (Leonardi 2007) Catatech Industries has been in operation for nearly a century but it continues to grow. To realise the opportunity of widening its global market reach, it needs to develop its IT capabilities not only at the business unit level but also at the corporate level to influence change in organisational culture. However, this is not an easy task and the CIO has to contend with the competing of retaining the business models of the company or the traditional way of doing things that allowed the company to grow or to rally for culture change biased towards IT to propel the company as a global market player. This dilemma and the likely resistance of stakeholders (Markus 2004), especially the board could be alleviated by focusing on the role of IT in revolutionising value propositions and business models in e-commerce. The positive impact on the firm together with the alignment of the company with e-commerce models could ease the change process in the company.             IT acts as catalyst for change and driver for competitive advantage. IT creates change by supporting innovative processes that in turn directs the organisation towards culture change. With IT processes in place, strategic changes emerge. The outcome of IT driven change could encompass restructuring, IT and other innovative competencies, and shifts in management practices. All these create and enhance value proposition for consumers. The benefits of IT to the organisation also redound to the benefit of consumers. (Markus 2004; Leonardi 2007)             IT benefits business firms in two major ways. First is by enhancing performance and productivity by enabling linkages across and within teams or working groups, departments, business units, and corporate headquarters through IT (Carlson 1999). Linkages via communication and information or knowledge sharing develop organisational streamlining that improves product and service features, product distribution, service delivery, and customer service. In the context of global business firms, such as Catatech Industries, streamlining of business processes supports the creation and reinforcement of a strong value proposition for its customers worldwide. Although there are certain unique value propositions in the different business units depending on the demand or needs of the local market, a sufficient degree of alignment across the business units is imperative to the enhancement of a consistent, strong and uniform value proposition. IT makes streamlining and alignment possible. In the case of Catatech Industries, the business units can retain autonomy in the specific means of reinforcing the organisation-wide value proposition.             Second is improvement in business processes. IT helped to develop various e-commerce models that allow business firms to improve internal processes to address stakeholder needs (Orlikowski 2000). E-commerce refers to the system that converts sourcing, selling, and buying into electronic processes. Engaging e-commerce means establishing models and relations that support effective procurement, production, retailing and promoting mechanisms. The core idea of e-commerce is optimising available and appropriate technology to enhance ways of communicating value proposition and meeting demand. IT has created a number of e-commerce models particularly business-to-consumers (B2C) such as online advertising, emails, website information sharing and retailing, and website customer service and feedback system. IT also created business-to-business-to-consumer (B2B2C) models such as retailing through distributors such as eBay and other auction sites, advertising through websites, forums, blogs, and other electronic venues, and electronic logistics by linking the ordering system of the company with logistics partners in shipping products to consumers. Engaging in IT would allow firms to establish electronic points of sales and customer service that enhances its value proposition. (Orlikowski 2000; Lee 2001) Catatech has a potential to expand its global operations as well as maintain and develop its competitive advantage especially with competitors capitalising on first mover advantage in the virtual market. However, to do this, the company needs to realise the importance of IT in creating, enhancing and reinforcing value propositions to reach out to the market as well as in building e-commerce models to support the electronic process or system competencies and needs of the company to operate globally.             Thus, IT improves business processes and organisational competencies and provides electronic systems and venues of reaching out to customers to create and enhance value proposition for customers in support of the goal of achieving competitive advantage.  Question 2: 2.1 Discuss the impact of competition on the e-Commerce strategic information systems plan of the company.               Competition is the context for the e-commerce strategic information systems plan of Catatech Industries. Knowledge of its closest competitors in terms of market share, potential for expansion, and relative positioning would comprise the bases of plans for information systems adoption. Competition also redirects or shifts information systems planning.             Strategic planning for the adoption of information systems contributes in enhancing managerial understanding and assessment of organisational development and factors for success (Laartz, Monnoyer & Scherdin 2003). This process assists in the achievement of timely decisions and development of viable strategic plans. (Henry & Lau 2000) However, decisions on the e-commerce adoption depends on the business firm’s knowledge of its competitive environment in terms of relative positioning, performance, market base, market share, products and services, and other determinants of competitiveness. This is because the adoption of e-commerce targets competitive advantage. (Ward & Peppard 2002) As such, the importance of e-commerce adoption and the immediacy of developing the strategic information systems plan depend on the assessment and interpretation of competition. In the case of Catatech Industries, its awareness of competitors and evaluation of the relative competitiveness of industry players including the company would determine the decision of top executives to support the development of the strategic information systems plan. If the board perceives competition in e-commerce as inconsequential then they would likely scrap the plan but if they view e-commerce competition in the industry as strong, then top executives are likely to support the plan. It is up to the CIO to present an accurate and comprehensive analysis of e-commerce competition in the industry to gain support for the plan.             In real business application, strategic information systems planning could have components including strategic prerequisites, directions and other elements (Henry & Lau 2000). As in other areas of strategic planning, this begins with the identification of needs or issues requiring resolution. These needs could encompass the level of transaction processing or the level of information and support systems. The success of the strategic information systems plan depends on the extent that it meets needs. (Ward & Peppard 2002) Even in this early stage of planning, competition is already an influential force because this determines the present and future needs of the company and the issues that it needs to address. This means that before even commencing with planning per se, Catatech Industries should have assessed competition and identified the needs it has to address. Again, since the top executives are conservative in making radical decisions, the responsibility to translate e-commerce competition into needs falls in the hands of the CIO. After determining needs, the next step is the identification and prioritization of objectives, resource planning, implementation procedures, and assessment measures (Ward & Peppard 2002). All these depend on the needs being met by the plan that are in turn based on the assessment of e-commerce competition. In addition, understanding of competition is a continuous process so that the company may have to readjust its plans with a changing competitive environment. 2.2 Discuss how this can be neutralised.             Competition impact the strategic information systems plan in two ways. One is by influencing needs and the other is by signalling possible changes in the plan. Counteracting the impact of competition on the strategic information systems plan requires an understanding of competition and the flexibility to changes in the competitive environment. Gaining an understanding of competition could be through competitive intelligence by gaining vital information on competitors and analysing these to draw conclusions in support of strategies for competitive advantage (Ward & Peppard 2002). Another is by using models such as the five forces model that considers barriers to entry in the e-commerce market, rivalry or impact of competitors, impact of suppliers, changing demands of customers, and existence and impact of substitutes (Porter 1998). Other models are also available especially for global operations that consider political, economic, social, technological, legal, and environmental factors of the competitive environment (Ward & Peppard 2002). By thoroughly understanding competition, the company can enhance the success of its strategic information systems plan. Developing adjustability to the changing impact of competition necessarily involves culture change (Sims 2002) to support appreciation of IT and e-commerce in business processes and work completion. By realising the importance of IT in supporting competitive advantage, members of the organisation are sure to develop awareness of developments in competition and analytical competencies in determining the impact of these changes on its information systems or e-commerce initiative. Question 3: Discuss the impact of e-Commerce on ethical, social and political issues?             E-commerce revolutionised business by creating a virtual market and widening the reach of firms but created ethical, social and political issues that co-occurs with it. This means that engagement of business firms, such as Catatech Industries, in e-commerce necessitates the consideration of these ethical, social and political issues in decision-making and planning to ensure success. Four general issues encompass the impact of e-commerce on ethical, social and political factors.             First is information management relative to protection of privacy because of widely available information in the Internet. Information management is an ethical issue because it involves the dilemma of the gathering, sharing and utilising information on competitors (Camp 2000). In the case of emails spamming evolved as an ethical issue under information management. Business firms with websites requiring registration and with online payment systems are likely to gain data on the names, emails, contact number or even address of individuals engaging these electronic processes. Decisions of firms to use information and emailing for advertising and promotions led to spamming that often inconvenience customers. The constant barrage of unwanted emails only developed negative attitudes on the part of consumers. As such, most providers of email service established anti-spamming features.             Second is exercise of property rights. The Internet, which is the foundation of e-commerce, is very fluid in providing access to information, products and services, and anything in demand. Due to limited controls, this makes it difficult to exercise property rights. The concept of property is that the owner holds exclusive right to the appropriation of that property, whether this are material products, services, ideas and systems, or anything subject to ownership. However, e-commerce can weaken property rights with the Internet providing opportunities to circumvent these rights. (Camp 2000) This is an ethical issue because it involves the decision on whether to obtain and use other people’s property for personal gain without getting the permission from the owner or gaining from its use. This is also a legal issue expressed in cyber crimes and piracy of property covered by intellectual property rights.             Third is regulation of e-commerce as a means of addressing cyber crimes and violation of intellectual property rights (Hall 2001). This is a political issue involving the decision of lawmakers on whether to subject e-commerce to statutory regulations, the scope and limits of regulation, the processes of implementation, and the judicial body with jurisdiction. Laws regulating e-commerce continue to change reflecting efforts to determine the place of regulation in the Internet. These changes affect how business firms engage in e-commerce.             Fourth is public safety or welfare, which comprises a social issue in e-commerce. The wide market reach of the Internet supported the entry even of small business firms including those that pose a threat of safety and security (Hall 2001). While e-commerce enabled networking, which is an important business tool, through chatting, messaging, emailing and websites hopping, these have also supported the proliferation of activities that pose a threat of public safety. Many websites on pornography and cyber prostitution emerged and these even get high ratings in terms of traffic and links. Recruitment of terrorists and solicitation of terrorist funds happen through the e-commerce tools. Question 4: Discuss the lessons South African businesses can learn from this case study.               South African business firms can learn a number of things from the case study. These lessons focus on defining the place of IT and e-commerce in business success and strategies in the effective engagement in e-commerce.             One important lesson is building knowledge and trust at various levels to develop appreciation of the importance of e-commerce in the business success of international firms. Catatech Industries operates as a conservative company relative to IT and e-commerce. Although it has engaged in e-commerce, this was only at the level of the business units. This could be subject to interpretation as the hesitance of headquarters in Madrid to engage fully in e-commerce at the corporate level. The company’s CIO has trouble in obtaining board approval for IT initiatives. This could be explained by the concerns of the company on the impact of IT initiatives at the corporate level largely due to a limited knowledge of e-commerce and the impact on work and continuity of employment. The company was not even aware of the emergence of competitors in the virtual market that affects the global expansion of the company. Another explanation is the lack of trust in automated transactions, especially since the company sold products through knowledgeable sales personnel. Many South African firms experience the same thing. These firms express interest in IT and e-commerce but hesitate in the actualisation stage (Molla & Licker 2004). By enriching the knowledge and experience of South  African business firms on e-commerce and reinforcing trust on the part of personnel as well as consumers through secure online systems and ethical practice, the success of information systems.             Another lesson is the important role of leaders in signalling direction towards e-commerce. The perspective of leaders over IT reflects in the policies applied in the company. The leaders of Catatech Industries are adamant or unconcerned about industry trends in e-commerce with the business unit in the United States expressing active involvement in e-commerce. If Catatech Industries want to expand in the global market, it has to pay proper recognition to the role of e-commerce. Similarly, many leaders of business firms in South Africa also exhibit a similar relaxed attitude towards e-commerce even if these firms have the capital to invest in IT. Even if a number of firms engaged in e-commerce the benefit to consumers are limited. E-commerce efforts need to be linked to competitive goals and integrated in strategic planning.             A last lesson is the importance of e-commerce guidelines to guide engagement of firms in a manner that ensures customer satisfaction and welfare. Being part of the European Union supported the engagement of Spain in adoption and development of policies on e-commerce to guide business firms in engaging in IT to support business processes (Sebastian, Rodriguez & Mateos 2001). However, the fact that Catatech Industries has not considered e-commerce at the corporate level despite being an international company could be because of limited guidelines from industry standards and best practices or from regulatory bodies. South Africa also needs to develop e-commerce policies to increase security in electronic transactions and protect consumers in order to help build IT capabilities of business firms (Molla & Licker 2004). South African business firms engaging in IT play an important role in advocating policy development. Question 5: What management issues are raised by knowledge management systems in e-Commerce? Use examples to discuss this in detail.               Knowledge management systems in e-commerce give rise to a number of management issues. These issues revolve around the management and utilisation of information. To succeed in e-commerce initiatives, business firms need to address these issues.             One issue relates to the need for skills and tools for effective knowledge management encompassing data collection, data processing, interpretation of information, and dissemination. There is a difference between data, information and knowledge requiring different levels of skills and tools. Business firms should be able to develop competencies for these to achieve effective knowledge management systems able to support e-commerce. Data is the raw form, information has been analysed and interpreted, and knowledge is information able to cause change by either providing the area and means for change or changing perspectives to influence indirectly action. (Malhotra 2000) In the case of Catatech Industries, knowing that there are already direct competitors already involved in e-commerce is not enough. However, if personnel do not have enough skills to transform data into skills using models (five forces, PESTLE, etc.) and software, then it will never turn to knowledge that supports strategic action.             Another issue is streamlining the system of information sharing across the levels of the organisation. One purpose of e-commerce is the enrichment of the knowledge of the company over its status and position at the business unit and corporate levels through information sharing, and knowledge management support this. Nevertheless, for global firms, knowledge management systems should be uniform. (Malhotra 2000) An example is a single website for Catatech Industries but including links to the pages for the different business units in different countries. There would also be a centralised ordering, payment and feedback system accessible to the various business units. This would allow the company to consider gain knowledge at the corporate and business unit levels.             Last issue is building effective communications. Knowledge spurs action only if properly communicated. (Malhotra 2000) An example is the different modes of communication for top executives and business unit managers. On one hand, top executives require information at the strategic level so that communication should be in terms of the overall performance of the company and the different business units, competitors, changes in demand and the issues linked to the information that requires decision-making. On the other hand, business unit managers require information that supports what they have to do, how to do it, when and where to do it, and how to measure success. The CIO or the information departments needs to keep track of the flow and transfer of what information to who and how.   References   Camp, L.J., 2000. Trust and risk in Internet commerce. Cambridge: MIT Press.   Carlson, P., 1999. Information technology and organizational change. ACM Special Interest Group for Design of Communication. Proceedings of the 17th annual international conference on Computer documentation. New Orleans, Louisiana, United States.   Hall, R.E., 2001. Digital dealing: How e-markets are transforming the economy. New York: W.W. Norton. Henry, C.W. & Lau, K.F., 2000. Assimilation of a strategic information system to gain competitiveness: a neutral format approach. Logistics Information Management, 13(5), 312 – 320. Laartz, J., Monnoyer, E. & Scherdin, A., 2003. Designing IT for business. The McKinsey Quarterly, 3, pp. 76–87. Lee, C.S., 2001. An analytical framework for evaluating e-commerce business models and strategies. Internet Research, 11(4), pp.349 – 359. Leonardi, P.M., 2007. Activating the informational capabilities of information technology for organizational change. Organization Science, 18(5), pp.813-831.   Malhotra, Y., 2000. Knowledge management for e-business performance: advancing information strategy to internet time. The Executive’s Journal, 8(4), pp.5-16.             Markus, M.L., 2004. Technochange management: using IT to drive organizational change. Journal of Information Technology, 19, pp. 4–20.   Molla, A. & Licker, P., 2004, Maturation stage of ecommerce in developing countries: a survey of South African companies. MIT Press Journals, 2(1), pp.89-98.   Orlikowski, W.J., 2000. Using technology and constituting structures: A practice lens for studying technology in organizations. Organization Science, 11, pp.404-428. Porter, M.E., 1998. Competitive strategy. New York: Free Press. Porter, M.E., 2001. Strategy and the Internet. Harvard Business Review. March 2001, pp.62-78.   Sebastían, M.C., Rodríguez, E.M. & Mateos, D.R., 2001. Information policies in Spain: towards the new “information society”. Libri, 51, pp. 49–60.   Sims, R.R., 2002. Managing organizational behavior. Westport, CT: Quorum Books.   Ward, J. & Peppard, J., 2002. Strategic planning for information systems. 3rd ed. New York: John Wiley & Sons.

Business Information Systems :Case Study of Catatech Industries

Business Information Systems Case Study of Catatech Industries Table of Contents Question1: D...