7.0 Coursework(1) They are found in the three vital roles that information systems can performfor a business enterprise: Support of business processes and operations. Support of decision making by employees and managers. Support of strategies for competitive advantage.Figure 1.2 illustrates how the fundamental roles interact in a typical organization. At anymoment, information systems designed to support business processes and operations mayalso be providing data to, or accepting data from, systems focused on business decisionmaking or achieving competitive advantage. The same is true for the other twofundamental roles of IS. Today's organizations constantly are striving to achieveintegration of their systems to allow information to flow freely through them, which addseven greater flexibility and business support than any of the individual system roles couldprovide.Let's look at a typical retail store as a good example of how these roles of IS inbusiness can be implemented.

The Fundamental Roles of IS in Business:ExampleSupport of Business Processes and Operations. As a consumer, you regularlyencounter information systems that support the business processes and operations at themany retail stores where you shop. For example, most retail stores now use computerbasedinformation systems to help their employees record customer purchases, keep trackof inventory, pay employees, buy new merchandise, and evaluate sales trends. Storeoperations would grind to a halt without the support of such information systems.Support of Business Decision Making. Information systems also help store managersand other business professionals make better decisions. For example, decisions aboutwhat lines of merchandise need to be added or discontinued and what kind of investmentsthey require are typically made after an analysis provided by computer-based informationsystems. This function not only supports the decision making of store managers, buyers,and others but also helps them look for ways to gain an advantage over other retailers inthe competition for customers.Support of Strategies for Competitive Advantage. Gaining a strategic advantage overcompetitors requires the innovative application of information technologies. For example,store management might make a decision to install touchscreen kiosks in all stores, withlinks to the e-commerce Web site for online shopping. This offering might attract newcustomers and build customer loyalty because of the ease of shopping and buyingmerchandise provided by such information systems. Thus, strategic information systemscan help provide products and services that give a business a comparative advantage overits competitors.Information Technology Keeps the Boston Red Sox in the GameAn information storage system from EMC Corp. is scoring big points with the BostonRed Sox. The team is using high-density storage technologies to store several years ofplay footage and thus gain an edge in the highly competitive world of professionalbaseball."You may say, `What is a baseball team doing with EMC?' but we have an ownershipgroup and a baseball and business operation that's very committed to gaining acompetitive advantage in the marketplace," notes Theo Epstein, Red Sox generalmanager. He believes that information is key to maintaining a competitive edge. Epstein points out that the Red Sox essentially are in competition with 29 other organizations tomake better player decisions that revolve around access to and the use of information intheir decision-making process."So, when I'm sitting at my desk and need to make a decision about a player, I need atmy fingertips scouting reports, stats, medical information and contract information," saysEpstein.Epstein adds that he only has to be right 51% of the time in baseball "You can usethat information to get the smallest advantage, and in the end, you'll have a realcompetitive edge."Steve Conley, the director of IT for the Red Sox, describes the organization's two largestorage arrays: one used for services, including online editing of video for broadcast andnews media, statistical archives, and a digital video system for home games, and anotherfor the team's road games, which stores video of almost every at bat. This video is usuallyviewed before a series with a rival team to determine how they're going to pitch tosomeone, how often they bunt, and where they position their fielders.Manny Ramirez, a star player for the Red Sox, is often seen sitting in front of thecomputer, watching game footage stored on the EMC technology."There's many times I'll go up to a plate and hit the first pitch.... I study the video veryhard, and there are a lot of times where I can break the game wide open because I'm veryprepared against the opposing pitcher," Ramirez says.EMC's storage management software also has helped designated hitter David Ortizimprove his batting average, claims Epstein."He has the best progression of performance from his first to third at bat against thesame pitcher. He's the best hitter in the league, third time around with the same pitcher inthe same game, because of his ability to study and make adjustments," Epstein notes.The IT director Conley argues that success by the team depends on mining and usingdata and video and that EMC storage helps deliver that information quickly, efficiently,and securely.In addition to improving player's performances, an additional benefit is that it savestime, according to Epstein."That's key because those minutes and hours used up making phone calls, going backand getting files, waiting for an express packagethat's time that could be used on thenext decision, on gaining the next competitive advantage," he says.

(2) Businesses can counter the threats of competitive forces that they face by implementing five basic competitive strategies. Cost Leadership Strategy. Becoming a low-cost producer of products andservices in the industry or finding ways to help suppliers or customers reducetheir costs or increase the costs of competitors. Differentiation Strategy. Developing ways to differentiate a firm's products andservices from its competitors' or reduce the differentiation advantages ofcompetitors. This strategy may allow a firm to focus its products or services togive it an advantage in particular segments or niches of a market. Innovation Strategy. Finding new ways of doing business. This strategy mayinvolve developing unique products and services or entering unique markets ormarket niches. It may also involve making radical changes to the businessprocesses for producing or distributing products and services that are so differentfrom the way a business has been conducted that they alter the fundamentalstructure of an industry. Growth Strategies. Significantly expanding a company's capacity to producegoods and services, expanding into global markets, diversifying into new productsand services, or integrating into related products and services. Alliance Strategies. Establishing new business linkages and alliances withcustomers, suppliers, competitors, consultants, and other companies. Theselinkages may include mergers, acquisitions, joint ventures, forming of "virtualcompanies," or other marketing, manufacturing, or distribution agreementsbetween a business and its trading partners.

(3)We can group system software into two major categories: System management programs. Programs that manage the hardware, software,network, and data resources of computer systems during the execution of the variousinformation processing jobs of users. Examples of important system managementprograms are operating systems, network management programs, databasemanagement systems, and system utilities. System development programs. Programs that help users develop informationsystem programs and procedures and prepare user programs for computer processing.Major software development programs are programming language translators andeditors, and a variety of CASE (computer-aided software engineering) and otherprogramming tools. We will take a closer look at CASE tools later in this chapter.Page 1 of 7