RIFTY VALLEY UNIVERSITY

COLLEGE OF BUSINESS ECOMOICS

GRADUATE DEPARTMENT OF BUSINESS ADMINISTRATION

Assignment on Management Information system of Hamaressa Edible Oil Share Company

Submitted by: Bedri

October, 2020
 Harar, Ethiopia
1. INTRODUCTION.......................................................................................................................1
1.1. Back ground of the Company...............................................................................................1
1.3. Data Resource Management.................................................................................................2
1.4. IS Security Management.......................................................................................................3
A.ROLE OF TOP MANAGEMENT......................................................................................4
SECURITY POLICIES, TRAINING AND AWARENESS...................................................4
ROLE OF EMPLOYEES........................................................................................................4
1.5. Network Management..........................................................................................................5
1.6. E-Business system development...........................................................................................6
1.7. Database management and enterprises.................................................................................8
1.8. E-Commerce System..........................................................................................................10
1.9. Software..............................................................................................................................13
1.10. Using Information Technology for Strategic Advantage.................................................17
1.11. Transaction Processing Systems.......................................................................................18
1.12. Hardware...........................................................................................................................20
1.13. Conclusion and Recommendation....................................................................................21
2 References...................................................................................................................................25

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 1. INTRODUCTION
1.1. Back ground of the Company

Hamaressa Edible Oil Share Company is one of the largest oil producers in Ethiopia. Hamaressa
is the name of the village where the factory is found. It is only 6 Kilometers from the historic
town of Harar. The factory which has become operational since May, 1998 lies over an area of
47650 m². It was erected at the place where, once, the former Hamaressa Flour mill and oil
factory stood. It did not evolve as an expansion project; it was, rather, a replacement. This new
industrial complex is equipped with modern machinery capable of producing high quality edible
oil from different types of oil seeds.

The feasibility study which was completed in 1988 took into consideration the relatively large oil
demand in the eastern region; and the availability of suitable land for oil seed farming in the
neighboring areas. Large cotton farming projects which were intended to be implemented in The
Ogaden region, and Peanut (Groundnut), which is widely grown in the lowlands of Harargeh,
were assumed to fulfill the future raw material demand of the factory.

The planned completion time of the project was 2 years. But it was not until May 1998 that the
erection work was over and commissioning began. The delay was mainly due to loss of some
items at Assab port during the occupation of the port by Eritrean forces and frequent interruption
of the civil work by the contractor. According to the feasibility study, the project cost was Br.
55.6 million. In preparation for privatization, the assets of the factory have been revalued in
September 2000, and the paid-up capital was adjusted to Br. 81,490,000.

During the 10 years period of its construction, rapid changes, that have affected the fate of the
factory, took place in the country. In the new free market economy, state enterprises were
expected to run by themselves and not by special fund from the government. Therefore HEOSC,
unlike its predecessors, did not get any initial working capital from the government. Loan from
banks was the only alternative source of fund. Edible oil which was a scarce commodity at the
inception of the project, turned out to be the most abundant 10 years later. By the time the
factory was about to enter full operation, the consumer market was flooded by different brands of
cheap oil.

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Since the commencement of operation, the company has succeeded in producing high quality oil.
All the products are in full conformity with international standards of pure refined edible oil. The
major product being peanut oil, other oil types like Sesame, Niger seed, Cotton seed, Rape seed
and Linseed are also produced. The Oil cake (by product) has proven itself suitable for animal
fattening and dairy.

1.3. Data Resource Management

For more than a decade, data base management systems (DBMSs) have been proclaimed as the
panacea for data integration and redundancy problems. Are organizations reaping the benefits of
data base technology? What specific data resource management task have they failed to address
effectively? A study of 276 organizations seeks to address these questions and to describe and
diagnose the data resource management problems that corporations face today. These tasks are
primarily concerned with logical and physical design aspects of data bases. Subsumed within this
category are data base tuning and capacity planning. The fact that effective efforts are being
made to maintain the accuracy, integrity, and security of data explains the higher realization of
related data base tasks. Category B tasks are performed somewhat less effectively than those in
category A and include the selection of hardware and software, the training of IS personnel, and
data dictionary activities. The relatively high score (3.62) for hardware and software selection
suggests that, despite the proliferation of data base hardware and software products, corporations
experience few problems with this aspect of DRM. Category C tasks are performed significantly
less effectively than those in category A. These tasks primarily center around data base planning:
policies of data control and ownership, strategic data base plans, procedures for data retention,
opportunities for data sharing, and controlling data redundancy. Category D tasks, which were
judged to be performed least effectively, involve organizational-level data planning (e.g.,
developing an organizational model for data and conducting organizational data requirements
planning). In addition to being complex in terms of their components and interrelationship with
other systems, data base systems must meet the continually changing needs of users during the
1990s. Long-range data planning and an organizational-level framework or model are therefore
essential for organizations wanting to implement a variety of systems. The overall informational
model ensures consistency with organizational goals and objectives and can be translated into
conceptual systems models from which consistent development plans can emerge. The poorer
performance of today's organizations in such strategic aspects of DRM bodes ill for focused,
accelerated growth of data resources in the near future. DRM EFFECTIVENESS FACTORS
The 16 DRM tasks listed in Exhibit 2 were analyzed using a statistical technique called factor
analysis. A factor can be defined as an internally consistent group of measures that tend to move
together (i.e., if one measure is higher, the others tend to be higher). Many measures can usually
be grouped into a few factors that can be interpreted and assigned descriptive labels. Several
factor analysis techniques can be used. For this study, the most commonly employed method,
called varimax, was chosen because it attempts to come up with distinct, independent factors.
Five factors were extracted for the factor analysis, and they are listed in Exhibit 3. Labels given
to the factors represent their primary content. Factor 1 consists of redundancy control, which
almost invariably involves the effective use of a data dictionary. Factor 2, data base design and
operation, represents the technical core of responsibilities for data resource management. Logical
and physical data base design are naturally correlated; the ability to tune data base performance

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is an important consideration in physical data base design. Performance tuning and maintaining
the accuracy, integrity, and security of data are both critical aspects of daily data base operations.
Factor 3, administrative control and management, includes the establishment and enforcement of
administrative procedures as well as the managerial decisions involved in selecting hardware and
software. Factor 4, data base planning and implementation, involves preparing the plans and the
associated activities in actually implementing them. The implementation efforts entail scouting
for data sharing opportunities as well as training users and IS personnel to facilitate the
introduction of innovative approaches based on data bases. Factor 5 pertains to broad-scoped
data resource planning and policies at the organizational level. This factor naturally involves the
development of data architecture and policies for data ownership and access control for the entire
organization.
The five factors in Exhibit 3 constitute a general definition of DRM; specific tasks associated
with each are identified. Interestingly, the first two factors are related to the technical aspects of
data base operation, whereas the last two are almost exclusively concerned with managerial
issues in data resources strategy and policy. The middle factor, factor 3, addresses middle-level
management functions in control and monitoring. Therefore, an empirically derived profile of the
DRM function emerges in the form of a typical managerial pyramid, as shown in Exhibit 4.
However, the results of the study also indicate that most of the technical activities are performed
more effectively than the managerial responsibilities. Clearly, the diverse nature of DRM, which
spans a managerial and technical continuum, must be organizationally resolved. To accomplish
this, some organizations are distinguishing between data administration and data base
administration. When this distinction is made, data administration represents a senior
management function responsible for developing and administering plans and policies for the
overall organization, protection, and use of information. Data base administration can then report
within the IS department to handle the technical and operational aspects of data base systems.
This separation of functions is usually successful, especially if clear reporting relationships
between the two groups are defined. However, also emerging is the concept of user managers
acting as data stewards, who are responsible for bridging the gap between the data administrator
and data base administrator by managing an organizational data resource. Such intermediate
personnel can promote organizational data sharing, a task that, as indicated by the survey
findings, is being poorly performed by organizations.
1.4. IS Security Management
Information Security Management Internet and online businesses have brought new avenues for
organizations for expansion and progress. However, the most critical asset of an organization i.e.
information, becomes vulnerable in such systems. Information security management thus comes
into the scenario. Likewise, the design of information security policies and its compliance also
becomes significant in organizations. There have been researchers working on this part and
proposing new technologies, security mechanisms and policies which are being followed by
organizations world-wide. Though a lot of work has been done in the technology advancement
context, but a little focus has been given to the human aspect of information security. Managers
or employees are the ones who deal with the information on everyday basis. They need to play
closely with the information security management mechanism. Their roles, practices and its
significance have been considered in this paper. It will provide an insight into the suggestions
given by various researchers in this perspective. In online businesses, security is the biggest
concern as the number of security breaches and thefts are increasing day-by-day. Such breaches

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result in huge financial as well as goodwill losses for the organizations. Credit card information
as well as other personal data is compromised in case of poor security policies. This brings about
loss of customer’s trust in such businesses and influences the business in a negative manner.
Malicious intent of the insiders was equally responsible for data breaches. Violation of access
policies also contributes to weak security of the organization. Hence, it is observed that the
human link is the weakest one in the system of information security. Therefore, the organizations
must have rigid security policies and need to inculcate the information security culture and
awareness in the employees.
THE HUMAN PERSPECTIVE Looking at Information security from the human perspective
reveals interesting facts and figures. The role played by top managers and employees along with
the training programs is discussed in the section below.
A.ROLE OF TOP MANAGEMENT
Many policies and technical approaches have been developed and adopted by various
organizations, but this has not been enough in order to secure the information assets. The
information security is not just the technical part but how the technical part is used by the human
counter-part. This is the baseline of this paper and many other researches being done in this field.
The actual implementation of policies is on the employees of the organization. This is what
technology is for, to make the human’s task easier. It needs the support of humans in order to
work. Earlier, the information security was considered from the technical context. However,
studies by Chang and Ho, Knapp et al., Ezingeard and Bowen-Schrire, Ma et al., Hu et al.,
Whitman and Mattord, Philips, Nader et al. suggests the role of managers in maintaining the
information security of organizations. The studies have been summarized in Figure 1. Top
management takes all the important decisions regarding formulating security policies and
mechanisms which in turn depend on the nature of the organization. Apart from this, they are
also responsible for the implementation of these policies. This involves training, motivation and
support systems for the employees. Management’s attitude and behavior affects the behavior of
low level employees. Their commitment and attachment to the organization’s faith goes a long
way in shaping the employees’ activities and roles.
SECURITY POLICIES, TRAINING AND AWARENESS
Managerial practices play a significant role in information security process. These practices are
policy formulation and training of employees regarding awareness and policy compliance. The
security policies remain futile unless the training and awareness programs are implemented by
the management in order to make the employees aware of the security culture framework. A
more holistic approach towards security will bring huge benefits to the organization. A security
policy is needed so that the employees should know the importance of security of information
assets. A training program will facilitate this implementation as the employees will know how to
carry out the policy. Training changes the attitude and behavior of employees towards
compliance of security policies. It also warns them of the various consequences of policy
violations.
ROLE OF EMPLOYEES
The humans in an organization play a significant part in its progress. Quintessentially, they can
shape the direction in which the organization will move. If the employees are sincere and loyal,
they will conform to all security policies and trainings in order to safeguard the information of
their organization. Adversely, if the employees have a malicious intent and steal information or

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violate the policies, then they pose the biggest threat to an organization’s information security.
This is the job of the management to tap the potential of its employees and train them towards
achieving a more secure environment in the organization.
1.5. Network Management
The network management approach is based on two assumptions: the assumption of limits of
human rationality and the assumption of bounded human morality. The assumption of bounded
rationality means that individuals in their decision making are not able to evaluate all possible
alternatives for those decisions, foresee their consequences, and choose the most optimal
alternative promising the best results. Bounded rationality is conditioned by limitations of human
mental abilities to process information, to focus attention, to memorize, by habits and frames of
thought (Simon 1997; Kahneman and Tversky 1979). Limits of human rationality are widely
researched in cognitive psychology, experimental economics, the assumption of bounded
rationality as an alternative to the neoclassical 4 concept of the rational individual is widely used
in organization theory, theory of social choice, public administration and public policy studies.
The network management perspective implies that business organizations as any other
individuals or organizations operating in networks raise objectives and tasks, deliberate on
measures to achieve them, take decisions and act in accordance with their specific frame of
thinking and the information available, which means that their decisions and actions are not
necessarily the best way possible. Due to bounded rationality network actors do not realize and
do not see many opportunities for their action, thus it could be claimed that the potential of
networks is not fully used. This does not mean necessarily that there are better ways of operating
than those chosen by participants in the network, but the attitude based on the assumption of
bounded rationality encourages the search of alternative ways of thinking and action and the
openness to change and improvement. This approach also enables the deliberation on ways how
to increase the rationality of network participants. The assumption of bounded morality is no less
important for the network management approach. It should not be identified with the assumption
of moral oportunism, which states that individuals pursue their own interests with guile,
involving some kind of deliberate deceit and the absence of moral restraint, the assumption
important for transaction cost economics (Williamson 1975). Bounded morality implies that
individuals obtain the moral sense and the ability to act according to moral obligations and
responsibility, but such moral motives are limited by natural selfishness, bad habits, the
weakness of will (akrasia), and ignorance (the failure to anticipate the negative consequences of
certain behavior, frames of thought, distorting the understanding of moral values and norms).
The approach that human morality is limited opens opportunities for the search of means such as
moral education or the development of circumstances favorable for moral behavior by which
human beings could be encouraged to act morally in different situations. Moral behavior in the
network management perspective is defined as behavior opposite to selfish behavior, when one’s
action is motivated by the common goal, common good or by obligations to principles, values,
norms or agreements. Human relations and joint action are often conditioned by formal or
informal agreements, commitments or common goals. Therefore, it can be claimed that networks
provide a framework for the moral behavior and human morality is directly related to his or her
involvement in various social networks – the human being in deciding to enter a social network,
commits himself or herself to certain common goals and agreements at the expense of his or her
personal interests. Networks which essential feature is the mutual trust would be impossible
without the moral commitment of their participants. Business organizations, from small
enterprises to big corporations, are embedded in various social networks involving public, non-

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governmental and private organizations; they take part in various associations, clusters, and
partnerships. Business organizations develop long-term relationships with suppliers and clients
and are involved in various charity activities. It would not be exaggerating to say that the
network embeddedness is a reality of each business organization. Each business organization has
to take this reality seriously if it wants to be successful in its business. The network
embeddedness creates challenges, risks Managing Networks in Business Organizations and
opportunities to management of business organizations. Different network relationships have to
be managed. The network management approach is developed on the basis of recognition that
there is a need to manage external relationships of business organizations. The theoretical basis
for 5 the network management approach is elaborated from the Simon’s theory of administrative
behavior (Simon 1997). This approach could be compared with other theories explaining
external relationships of business organizations such as the open system theory (Katz and 8 Kahn
1966). The open system theory examines organizations as open systems interacting with their
environment. There are three basic differences between the open system theory and the network
management approach. First, the open system theory is a theory explaining organizations, while
the network management approach is prescriptive. Second, the organizational environment is
understood broadly from the perspective of the open system theory while the network
management approach focuses only on those elements of organizational environment which
include individuals and organizations. Third, the network management approach, unlike the
holistic open system theory, is elaborated on the basis of behavioral assumptions of bounded
rationality and morality. The network management approach could also be compared with the
stakeholder theory (Freeman 1984). From the perspective of the stakeholder theory stakeholders
are those who have stake in the organizations, they are already present and business
organizations do not have an opportunity to freely choose their stakeholders. Stakeholders are
organizations or individuals to whom the business organizations have moral obligations. The
network management approach implies that business organizations could choose many of their
partners voluntarily. Business organizations could enter or leave existing networks, change them,
or create new networks. Thus moral responsibility is mutual because there are expectations that
network partners also will be responsible. In the stakeholder theory stakeholders bound business
organizations with moral obligations, however, this theory does not take into account the issues
of moral responsibility of stakeholders themselves.
1.6. E-Business system development

In the first thing which comes to the mind in case of e-business system development is the
requirements of an e-business system development and it benefits (Carmen Timofte, 2004). Once
these two things are decided, then the next thing is e-business system development
technical expertise for e-commerce development to implement it in the real world. Sub sections
mentioned under are focusing on these points. Requirements of an e-business For a corporate e
business system can be required due to blow mentioned reasons:- An e-business system
development provides value by organizing and streamlining operations, maximizing revenue
opportunities and providing competitive advantage, An organization can maximize its return on

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investment (ROI) by choosing an e-business system development partner and service provider,
The e-business system brings exceptional value to clients through reduced cost of e- business
system development via the development center, and outstanding reliability, quality and
customer service. Benefits of e-business system development A good e-business system can
benefit an organization in the following ways: A good e-business system developer provides
value to clients due to the expertise in e-business system development, proven project
management processes, quality management procedure, excellent technical resources and speed
in customer response.

• Its e-business system development services are built on open, industry standard architectures
made possible by enterprise component technologies like Java, and Microsoft. Net Framework,
document oriented technologies like XML, and integration technologies such as messaging tools
and middleware.

• It commits to providing clients with state-of-the-art e-business system development services by

integrating technology, innovation and strategy with their business processes.

• It provides e-business system development services that engage customers, suppliers,

distributors, employees and partners in a broader communications and web, allowing them to
interact, collaborate, exchange data and conduct business online in a safe and efficient manner.

• It must believe that the hallmark is quality. Its resources and processes must be dedicated to
ensuring that the e-business system development services are of the highest quality and
scalability.

• Its e-business system development methodology allows spreading the development services
across time zones, which allows customers to benefit from a 24-hour development cycle.
Technical expertise for e-business development currently the technical expertise for e-business
development should include the following:

• Development: Java Server Pages (JSP), J2EE, Java, Active Server Pages (ASP), Visual Basic,
COM/DCOM, PHP Scripting, XML, WAP (WML/WSL), DHTML, C++, PowerBuilder,
Informix/4GL

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• Databases: Microsoft SQL Server, Oracle, MySQL, Microsoft Access 2000, Sybase, Informix,
DB2

• Web/Application servers: Microsoft Commerce Server, WebLogic, Allaire JRun, IBM

WebSphere, Microsoft Internet Information Server

• Integration Platforms: Microsoft BizTalk Server, Microsoft Host Integration Server,

DataJunction Adapters, EAI, WebMethods E-business systems development methodology
E-business Systems must be having an easily attracted Development Methodology (Heydenrych
& Cloete, 2007). To choose a methodology one has to check its systematic arrangement, its
appropriate reasons to use and compatibility with the characteristics of ebusiness system.
Why Use Systematic Development Methodologies? The following reasons are found to justify
the use of systematic development methodologies:

• They are easier to understand systems by making a separation in between conceptual design,
logical design, and physical design

• They design systems so that they are extendable and easily maintained
• They move toward automated design tools and dynamic page generation
• They are easier to manage development in the form of costs, time, task allocation, deliverables,
etc.
• They overcome reliance on designers who constructed the system
• They are used to reduce risks associated with shortcuts and mistakes
• They are used to produce documentation that is consistent from one project to the next

1.7. Database management and enterprises

Innovative digital tools and services, offer huge opportunities for all to progress and benefit and
new prospects exist for economic growth, better service delivery, social and cultural advances
(Andreopoulou, 2013). Within that concept, a database can be a valuable asset and act as a tool
for achieving the marketing objectives of an enterprise as it can bring together all the necessary
marketing information (Tzoulis et.al., 2013). Data Base Management Systems (DBMS) have

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recently emerged as a standard part of any business while sales and marketing would be
impractical without quality database systems (Lloyd, 2007).

A database is defined as a collection of organized data that serves multiple applications with
enhanced functions as the organization of data in a database results in program data
independence, data redundancy, enhanced data consistency, improved data sharing, increased
productivity, better data accessibility and responsiveness and reduced program maintenance
(Elmasri & Navathe, 2004). It is highly acknowledged that organizations depend on the amount
of their information (Andreopoulou, 2009) whereas data properly stored in databases can be
accessed and retrieved effortlessly and quickly, and they can be processed in various ways from
end-users (Andreopoulou, 2007). The total approach of data entry in a database has two further
advantages, such as reduction in duplicate record and creation data accuracy because of
automatic data update (Mc Fadden et al., 1999). Each user can access and use the same data for
different purposes at the same time (Andreopoulou et.al, 2012). The essential feature of database
technology is that it provides an internal representation (model) of the external world of interest
(Jeffery, 2008). Two of the most important concepts in a relational model are entities and
relationships (Fleming and von Halle 1989). An entity is a real-world object or concept. The
relational model represents a database as a collection of relations (Elmasri and Navathe 1994). A
relation is an association among two or more entities.
According to Fleming and von Halle (1989), there are three steps to design a relational database:
logical data modeling (LDM), translation of the logical data model to a relational database, and
tuning of the relational database. Fleming and von Halle (1989) recommended a comprehensive
LDM including 12 phases. It starts from identifying major entities and ends with analyzing for
stability and growth. Elmasri and Navathe (1994) divided a medium or large database application
system into eight phases, starting from system definition and ending with DBMS monitoring and
maintenance. So, a temporal database maintains past, present and future data (Tansel,
2009).Database Management Systems (DBMS) is a necessity for any database system towards
proper file organization. DBMS provides a practical approach to relational database systems,
with an emphasis on practical topics such as indexing methods, SQL, and database design
(Ramakrishnan and Gehrke, 2000). Thus, a database becomes an effective tool for management,
as data are characterized by logical structure especially when a powerful DBMS is used
(Andreopoulou et.al., 2012).. DBMSs also offer multi-processor support, support for parallel

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queries and clustering. The data stored in a DBMS package can be accessed by multiple users
and by multiple application programs like SQL Server, Oracle and Ms-Access. To facilitate the
effective dialogue of end-users with the database a powerful, full-functioned DBMS is used with
automated common action facilities, that is a GUI (graphical user interface) with the ‘point and
click’ method that is easier to use, initiates tasks for users relying on buttons and are further
translated by the software into commands (O’ Brien, 2001, Andreopoulou and Κokkinakis,
2009).

1.8. E-Commerce System

Innovations and changes in products and technologies have resulted in new type of business,
modern ways to bring buyers and seller’s together and new ways of creating and using marketing
information (Baldwin and Clark, 2000). A major feature of the global economy during this time
has been the liberalization of emerging economies and their integration into the worldwide
economy (Aulakh and Kotabe, 2008; Kiss et al., 2012, Vatis, 2013).

Therefore, the adoption of new technologic solutions and innovative managerial practices are
needed, which will offer flexibility, immediate feedback and short decision-making capacity
(Andreopoulou et al., 2012). Advances in information and communication technologies have
been identified as enablers of entrepreneurship (Reuber and Fischer, 2011). The emergence of
the term entrepreneurship in many cases describes a series of activities that a trader does, from
the foundation up to the company’s management (Cunningham and Lischeron, 1991). At a first
stage, the meaning of entrepreneurship can be defined as an attempt to convert the initiative into
result\ with the ultimate aim of producing an economic profit (Cunningham and Lischeron,
1991). It has to be pointed out that the entrepreneurship, based on social and economic studies, is
characterized as a complete process and not as a measurable economic value. Therefore,
entrepreneurship is a dynamic process, in which individuals constantly spot economic
opportunities and exploit them through the development, the production and the selling of goods
and services. Under these circumstances, all the innovative ideas change into economic
opportunities, a fact that is the cornerstone of entrepreneurship (Global Entepreneurship Monitor,
2009). At a second stage, according to the Harvard Business School, entrepreneurship is a
process of creating, or the conception of an opportunity and the pursuit of its exploitation,
regardless of the control or the possession of the means of its implementation (Timmons and

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Spinelli, 2007). Characteristically, P. Drucker stated that “entrepreneurship is neither science nor
art. It is the practicum in which knowledge is the means for achieving its purpose. It is an attitude
rather than a personality trait” (Drucker, 2003). Concerning the role of entrepreneurship, several
academics and politicians agree that entrepreneurship is a crucial factor for the development and
the prosperity of the society, as the entrepreneurs create opening jobs and lead to innovation and
acceleration of structural changes in economy (Tsekouropoulos et all, 2012). It contributes
indirectly to productivity by introducing new competition. Entrepreneurship is the catalyst for
the economic growth and the national competitiveness (Kelley et al. 2010)

In recent years, businesses have oriented towards a customer-centric marketing. Many

entrepreneurs have accepted the marketing concept by using segmentation techniques, specifying
marketing strategies, and establishing dedicated marketing departments either staff or line
(Leeflang 2011). It includes both direct response marketing and indirect marketing elements, and
uses a range of technologies to help connect businesses to their customers (Tsekouropoulos et al,
2013). Marketing is considered as a core activity (Basahel & Irani, 2009). Business Marketing as
a research domain can be conceived of comprising several interrelated or nested layers (Chandler
and Vargo, 2011; Moeller et al., 2009; Moeller 2013).

Thus, the purpose of marketing is to know and understand the customer and his needs that well,
so that the product or the service meets his needs and the selling of the product service follows as
a natural consequence (Kotler, 2000). To achieve the objective of customer satisfaction, it is
observed that businesses today have got the advantage of occupying powerful technologies of
understanding and interacting with the customer (Rust et al. 2010). Using the innovative
technology tools and services, such as databases and Internet provides the businesses with the
opportunity and the ability to promote their products and services to more customers around the
world (Andreopoulou et al. 2009). The approach to these customers and the encouragement of
their trust towards the company can be achieved through the quality, the comfort in the markets,
the competitiveness of the prices, and of course the offer of the right products and services
(Tsekouropoulos, 2009, Tsekouropoulos et al.2013). As it regards the results of a study of Vatis
et.al. (2013), concerning the current functions of marketing used by companies of food and
drinks, the majority of businesses use advertisement as a method of promotion. The advertising
is still the most widespread and effective means of promotion used by a business, in order to

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showcase its products and services Assimakopoulos et al. (2010) in their research on business
intelligence systems for virtual enterprises summarize that the modern business environment
requires fast, efficient and reliable management of vast amounts of information and diverse data.

Modern marketing techniques demand the use of a digital environment in relation to the
development of the supply chain with the corresponding new partners, geographical expansion
e.t.c. (Tsekouropoulos et.al., 2012a, Tsekouropoulos et al., 2012b). Companies, in order to
compete, should be shifted from the pushing of individual products, to building long-term
relationships with customers, always keeping the focus on the customer (Tsekouropoulos et al,
2013).

Over the last decade the focus of the information technology industry has moved towards
development for the World Wide Web (WWW). Information systems using WWW technology,
delivered by an Intranet or via the Internet, are now prevalent throughout world. Within a
country, a wide variety of organizations are deploying information systems onto the WWW,
including banks, government departments and other service providers.

They are using the WWW as a strategic business tool, supporting their existing operations or
providing a lowcost solution for delivering a new product or service line. Due to this, the
business on the Internet is growing with a great speed, which results in the form of e-commerce.

Types of e-commerce Business-to-Consumer (B2C): It describes activities of businesses serving

end consumers with products and/or services.

An example of a B2C transaction would be a person buying a pair of shoes from a retailer. The
transactions that led to the shoes being available for purchase, that is the purchase of the leather,
laces, rubber, etc. as well as the sale of the shoe from the shoemaker to the retailer would be
considered (B2B) transactions. Other examples of B2C e-commerce grouped as: 1) Pre-sale: It
includes Information seeking, marketing presence and On-line catalogue. 2) Sale execution: It
includes On-line catalogue and On-line ordering. 3) Sale settlement: It is related to On-line
payment. 4) After-sale: Customer relationship management (CRM) is the important part of
this stage. Business-to-Business (B2B): It is a term commonly used to describe commerce
transactions between businesses like the one between a manufacturer and a wholesaler or a

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wholesaler and a retailer i.e. both the buyer and the seller are business entity. This is unlike
business-to consumers (B2C) which involve a business entity and end consumer, or business-to
government (B2G) which involve a business entity and government.

The volume of B2B transactions is much higher than the volume of B2C transactions. The
primary reason for this is that in a typical supply chain there will be many B2B transactions
involving subcomponent or raw materials, and only one B2C transaction, specifically sale
of the finished product to the end customer. For example, an automobile manufacturer makes
several B2B transactions such as buying tires, glass for windshields, and rubber hoses for its
vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C)
transaction.
Consumer-to-Consumer (or C2C): It involves the electronically-facilitated transactions between
consumers through some third party. A common example is the online auction, in which a
consumer posts an item for sale and other consumers bid to purchase it; the third party generally
charges a flat fee or commission. The sites are only intermediaries, just there to match
consumers. They do not have to check quality of the products being offered.

Intra-business: E-commerce activities conducted within an organization in between a business

and its employees, in between units within the business or among employees in the same
business are known as intra-business. Its most popular form is business-toemployees (B2E)
which is an intra-business in which an organization delivers products or services to its employees
in any of the following form: Training and education provided over intranets, Electronically
order supplies and material needed for work, Buy discounted insurance, travel packages, etc., on
corporate intranet, Corporate stores sell company’s products at a discount and Businesses
disseminate information on the intranet.

1.9. Software
Software once a program has been written for a microcontroller, the program has to be entered
into the memory of the microcontroller. With the PIC16F84 this can be achieved using the
programmer module shown in Fig. 2. Details on the availability of this module and the
associated software can be found in [8]. The software supplied with the programmer module
enables programs written in BASIC on a PC (personal computer) to be quickly transferred to the
PIC microcontroller. Reference [8] provides a step-by-step guide to creating programs for the

13
PIC that become more advanced as the student’s experience grows. The short turn-around time
between program writing, installing the program in the EEPROM and testing the PIC in the
circuitry developed on the breadboard makes this amalgam of hardware and software particularly
effective as a learning tool.

Software once a program has been written for a microcontroller, the program has to be entered
into the memory of the microcontroller. With the PIC16F84 this can be achieved using the
programmer module shown in Fig. 2. Details on the availability of this module and the
associated software can be found in [8]. The software supplied with the programmer module
enables programs written in BASIC on a PC (personal computer) to be quickly transferred to the
PIC microcontroller. Reference [8] provides a step-by-step guide to creating programs for the
PIC that become more advanced as the student’s experience grows. The short turn-around time
between program writing, installing the program in the EEPROM and testing the PIC in the
circuitry developed on the breadboard makes this amalgam of hardware and software particularly
effective as a learning tool.

The growing organizational need to integrate functions and business processes to improve
control, coordination, and responsiveness by allowing data and information to flow freely
between different parts of the organization. Poorly integrated applications can create costly
inefficiencies or slow customer service that become competitive liabilities. Alternative software
solutions are available to promote enterprise integration.

One alternative, which is to replace isolated systems that cannot exchange data with enterprise
applications for customer relationship management, supply chain management, knowledge
management, and enterprise systems, that integrate multiple business processes.
Enterprise applications are one of many paths to achieving integration. There are also alternative
software solutions that allow firms to achieve some measure of integration from their existing
systems. Most firms cannot jettison all of their legacy systems and create enterprise-wide
integration from scratch. A legacy system is a system that has been in existence for a long time
and that continues to be used to avoid the high cost of replacing or redesigning it. Nor do all
firms want to get rid of their existing business processes underlying their legacy systems in order
to use the business processes defined by enterprise systems and other enterprise applications.
Many existing legacy mainframe applications are essential to daily operations and very risky to

14
change, and they can be made more useful if their information and business logic can be
integrated with other applications. One way to integrate various legacy applications is to use
special software called middleware to create an interface or bridge between two different
systems. Middleware is software that connects two otherwise separate applications, allowing
them to communicate with each other and to pass data between them. Middleware may consist of
custom software written in-house or a software package.

Instead of custom-writing software to connect one application to another, companies can now
purchase enterprise application integration (EAI) software to connect disparate applications
or application clusters. This software uses special middleware enabling multiple systems to
exchange data through a single software hub rather than building countless custom software
interfaces to link each system. There are a variety of commercial EAI software products, some
featuring tools to link applications together through business process modeling. The software
allows system builders to model their business processes graphically and define the rules that
applications should follow to make these processes work.

The software then generates the underlying program instructions to link existing applications to
each other so they can exchange data via messages governed by the rules of the business
processes. (An example of these rules might be “When an order has been placed, the order
application should tell the accounting system to send an invoice and should tell shipping to send
the order to the customer.”) WebMethods, Tibco, CrossWorlds, SeeBeyond, BEA, and Vitria are
leading enterprise application integration software vendors. Although EAI software does not
require as extensive organizational change or programming as the software for enterprise
systems, behavioral changes are still required to make this level of integration work properly
(Lee, Siau, and Hong, 2003).

Enterprise application integration software tools are product specific, meaning that they can only
work with certain pieces of application software and operating systems. For example, one EAI
tool to connect a specific piece of sales order entry software to manufacturing, shipping, and
billing applications might not work with another vendor’s order entry software.

Web services provide a standardized alternative for dealing with integration. Web services use
XML and other open software and communication standards for exchanging information
between two different systems, regardless of the operating systems or programming languages

15
on which they are based. They can be used to build open standard Web-based applications
linking systems of two different organizations, and they can also be used to create applications
that link disparate systems within a single company. Web services are not tied to any one
operating system or programming language and different applications can use them to
communicate with each other in a standard way without time-consuming custom coding.

For example, the health insurer Cigna Corporation created a special Web site called
MyCigna.com that enables users to track claims, order medications, compare drugs and hospitals
by cost, and change physicians’ online. Cigna uses Web services to pull out this information
from a number of different computer systems. Yellow Transportation, a trucking company based
in Overland, Kansas, uses Web services to provide shipping rates and schedules from its internal
systems to customers connected to the Internet (Salkever, 2003).

Middleware also plays an important role in the infrastructure typically used for e-commerce and
e-business between client and server and the client communicates directly with the server. This
had been a very popular architecture for distributed computing. However, e-commerce and e-
business require much more functionality, such as the ability to access and deliver Web pages, to
respond to user requests for data from a company’s product catalog, to take customer orders
using Web page interfaces, or even to adjust advertising on the user’s display screen based on the
user’s characteristics.

A multitiered architecture, which has additional middle layers between the user client layer and
the back-end layer housing data management services. In the middle layers are various pieces of
software for servicing requests for Web pages, for executing business logic, and for accessing
data. A Web server is the software for locating and managing stored Web pages. It locates the
Web pages requested by a user on the computer where they are stored and delivers the Web
pages to the user’s computer. An application server is middleware software that handles all
application operations between a user and an organization’s back-end business systems. In an
Internet/intranet environment, it can be used to link the Web server to back-end systems and data
repositories, supplying the business logic for handling all application operations, including
transaction processing and data access. The application server takes requests from the Web
server, runs the business logic to process transactions based on those requests, and provides
connectivity to the organization’s back-end systems. For example, such middleware would allow

16
users to request data (such as an order) from the actual transaction system (such as an order
processing system) housing the data using forms displayed on a Web browser, and it would
enable the Web server to return dynamic Web pages based on information users request. The
application server may reside on the same computer as the Web server or on its own dedicated
computer. Application servers eliminate much of the need for custom programming, saving
companies much time and cost in developing Web systems and in managing and updating them.
The Window on Technology provides some examples of companies using XML, Web services,
and middleware tools to integrate their existing applications.

1.10. Using Information Technology for Strategic Advantage

Due to the emergence and widespread use of information and communication technologies
(ICTs), organizations have faced many challenges that have led to several changes in their
business practices in recent times, particularly in the last two decades. In this time period,
organizations have invested large amount of time and money to the adoption of ICTs. This study
therefore seeks to discuss how such investments in information technology can help an
organization achieve a competitive advantage. The resource based view (RBV) is an appropriate
framework to guide this research due to its focus on resources and capabilities and also because
of its emphasis on sustainability of competitive advantage. The RBV argues that a firm’s source
of competitive advantage lies with the resources and capabilities it owns and controls and the
unique way in which a firm bundles them together (Barney, 1991).

The notion of differential benefits accruing from ICT investments has generated lots
of controversy. Recently, even more controversy, has been created by the assertions of Carr
(2003). He argues that ICT is pervasive, increasingly inexpensive, and accessible to all firms. As
such, it cannot provide differential advantage to anyone, because it is scarcity (not
pervasiveness) that creates the ability to generate supernormal rents. He notes that ICT is
following the pattern of railroads and telegraphs, where, as a mainly replicable, standardized
infrastructural technology, its benefits are accessible to all and cannot create competitive
advantage.

17
The implication of this position is dangerous, because it suggests that companies should reduce
their ICT investment and innovation, which in turn could have profound implications for ICT
governance. By not distinguishing between undifferentiated ICT assets like the infrastructure,
and the ability to manage these assets, Carr (2003) comes to the conclusion that firms cannot
gain competitive advantage and should therefore assume a defensive and utilitarian posture with
respect to ICT. Recently, some researchers (Bhatt & Grover, 2005; Chen & Tsou, 2007) have
framed the discussion in terms of ICT capabilities, and argue that managing ICT is a capability
that can create uniqueness and provide organizations a competitive advantage.

According to O’Brien, & Marakas, information system (IS) can be any organized combination of
people, hardware, software, communications networks, data resources, and policies and
procedures that stores, retrieves, transforms, and disseminates information in an organization.
People rely on modern information systems to communicate with one another using a variety of
physical devices (hardware) , information processing instructions and procedures (software) ,
communications channels (networks) , and stored data (data resources) . According to
Patterson an information system is a group of interrelated components that work to carry out
input, processing, storage, output and control actions in order to convert data into information
that can be used to support forecasting, planning, control, coordination, decision making and
operational activities in an organization. Every business organization in this era needs an
information system (IS) to keep track of all business activities, right from business planning, till
the product delivery via manufacturing and quality cycles. An information system can be defined
technically as a set of interrelated components that collect (or retrieve), process, store, and
distribute information to support decision making, coordination and control in an organization. In
addition to supporting decision making, coordination, and control, information systems may also
help managers and workers analyze problems, visualize complex subjects, and create new
products. Information systems contain information about significant people, places, and things
within the organization or in the environment surrounding it. By information we mean data that
have been shaped into a form that is meaningful and useful to human beings. Data, in contrast,
are streams of raw facts representing events occurring in organizations or the physical
environment before they have been organized and arranged into a form that people can
understand and use. According to Shim an information system is a computerized system that
processes data (facts) and produces information. This process is defined as an information

18
processing cycle (IPC). The information processing cycle consists of four operations. They are
input, process, output, and storage.

1.11. Transaction Processing Systems

Transaction processing systems (TPS) are the basic business systems that serve the operational
level of the organization. A transaction processing system is a computerized system that
performs and records the daily routine transactions necessary to the conduct of the business. At
the lowest level of the organizational

What computer processing and storage capability does our organization need to handle its
information and business transactions?

Managers should understand the alternative computer hardware technologies available for
processing and storing information so that they can select the right technologies for their
businesses. Modern computer systems have six major components: a central processing unit
(CPU), primary storage, input devices, output devices, secondary storage, and communications
devices. All of these components need to work together to process information for the
organization. The CPU is the part of the computer where the manipulation of symbols, numbers,
and letters occurs.

The CPU has two components: an arithmetic-logic unit and a control unit. The CPU is closely
tied to primary memory, or primary storage, which stores data and program instructions
temporarily before and after processing. Several different kinds of semiconductor memory chips
are used with primary storage: RAM (random access memory) is used for short-term storage of
data and program instructions, and ROM (read-only memory) permanently stores important
program instructions.

Computer processing power depends in part on the speed of their microprocessors, which
integrate the computer’s logic and control on a single chip. Most conventional computers process
one instruction at time, but computers with parallel processing can process multiple
instructions simultaneously. The principal secondary storage technologies are magnetic disk,
optical disk, and magnetic tape. Optical disks can store vast amounts of data compactly. CD-

19
ROM disk systems can only be read from, but CD-RW (rewritable) optical disk systems are
now available.

The principal input devices are keyboards, computer mice, touch screens, magnetic ink and
optical character recognition devices, pen-based instruments, digital scanners, sensors, audio
input devices, and radiofrequency identification devices. The principal output devices are
cathode ray tube terminals, printers, and audio output devices. In batch processing, transactions
are accumulated and stored in a group until the time when it is efficient or necessary to process
them. In online processing, the user enters transactions into a device that is directly connected to
the computer system. The transactions are usually processed immediately. Multimedia integrates
two or more types of media, such as text, graphics, sound, voice, full-motion video, still video,
and/or animation into a computer-based application.

1.12. Hardware
Computer hardware and software technology can either enhance or impede organizational
performance. Both hardware and software are major organizational assets that must be carefully
managed. Electronic commerce and electronic business have put new strategic emphasis on
technologies that can store vast quantities of transaction data and make them immediately
available
online. Managers and information systems specialists need to pay special attention to hardware
capacity planning and scalability to ensure that the firm has enough computing power for its
current and future needs.

They also need to balance the costs and benefits of owning and maintaining their own hardware
and software versus renting these assets from external service providers. Online storage service
providers (SSPs) rent out storage space to subscribers over the Web, selling computer storage as
a pay-per-use utility. Application service providers (ASPs) rent out software applications and
computer services from remote computer centers to subscribers over the Internet or private
networks. In a utility computing model, companies pay technology service providers only for the
amount of computing power and services that they actually use. Calculating the total cost of
ownership (TCO) of the organization’s technology assets can help provide managers with the

20
information they need to manage these assets and decide whether to rent or own these assets.
The total cost of owning technology resources includes not only the original cost of computer
hardware and software but also costs for hardware and software upgrades, maintenance,
technical support, and training.

Hardware Microcontrollers contain the essential features of a computer on a single silicon chip –
CPU, memory, I/O ports, timing and control circuitry. They are frequently found in roles
befitting their name viz. controlling other devices such as VCR or DVD players and in motor
vehicles, trains and planes – where the tasks at hand require computer control but do not require
an extensive memory capacity. Some microcontrollers have additional circuitry such as an
analogue-to-digital (A/D) converter built in, which makes them particularly useful in certain
applications [9, 10]. The electrically erasable programmable read only memory (EEPROM) built
into the PIC16F84 is particularly useful in the classroom as it enables the PIC to be
reprogrammed many times over as students develop new programs. The computer-in-miniature
aspect of microcontrollers makes them an ideal aid for teaching and learning about computer
hardware and software principles. For example, the Harvard architecture of the PIC16F84
illustrates a computer architecture different from the von Neuman architecture commonly found
in larger computers.

1.13. Conclusion and Recommendation

The results of this study illustrate that there are many DRM issues to resolve before all the
proclaimed benefits of data bases can be realized. Among the DRM tasks, the technical and
operational aspects are being performed more effectively than the global and business-related
aspects. This lack of sophistication in DRM can be related to earlier findings about DBMS
benefits: strategic benefits (e.g., reduced applications development time) are realized to a much
lesser extent than operational benefits (e.g., file management and data integrity). In most
organizations, there are two functions prescribed for the management of data: the data base
administrator and the data administrator. The former generally has a more technical orientation,
whereas the data administrator provides the organizational framework within which data base
technology can be successfully employed.(n1) The results of this survey suggest that the time has
come to implement the data administration concept and enhance the strategic orientation of the
DRM function. Organizations hoping to effectively harness DBMS capabilities for global
business objectives should reassess their DRM practices.
Business organizations are embedded in many different network relationships (Granovetter
1983). Companies establish enduring relationships with their clients and suppliers, they
collaborate with other companies in order to increase their market power, save costs, improve
effectiveness, serve problems specific to customers, and develop new technologies and for many
other reasons (De Man 2004, 20). Business organizations are also involved in relationships with

21
government institutions and non-governmental organizations for various purposes, such as
lobbying, public-private partnerships, sharing of information or charity. There are certain
characteristics common to all types of the network relationships. First, they are oriented to some
common goal which is beneficial to the partners who are not able to achieve the goal by acting
alone. Thus the partners are supposed to comply with a formal or informal agreement on the
importance of this goal. Second, the network relationships imply commitments and
responsibilities of the partners involved to act according to the 19 agreement. Thus companies
taking part in various networks act not only for the sake of profit but they undertake certain
responsibilities. The article will discuss theoretical implications of the network management
approach based on two behavioral assumptions: bounded rationality and bounded morality.
Herbert’s Simon’s theory of administrative behavior (Simon 1997) will be extended in order to
explain principles, modes and mechanisms of network organization. Recommendations and
prescriptions for network managers of business organizations, including identification of various
types of business networks, network analysis, development of network management strategies,
integrating them with general organizational processes, will be developed. Information Security
is a major concern of all organizations, especially the online businesses. The focus of researchers
has been on the technological aspect of information security and many policies have been
suggested and adopted over time. However, the role of humans in the security model has been
neglected. Any policy can be rendered useless if it is not efficiently implemented by the
managers and employees of the organization. This paper highlights their role in the
organizational performance and progress. Human resource management is the job of top level
managers which need to train and divert their interests in the direction of organization’s growth.
Object-oriented programming tools and new programming languages such as Java, hypertext
markup language (HTML), and eXtensible Markup Language (XML), can help firms create
software rapidly and efficiently and produce applications based on the Internet or data in Web
sites. Object-oriented programming combines data and procedures into one object, which can act
as an independent software building block. Each object can be used in many different systems
without changing program code.
Java is an object-oriented programming language. It can deliver precisely the software
functionality needed for a particular task as a small applet that is downloaded from a network.
Java can run on any computer and operating system. HTML is a page description language for
creating
Web pages. XML is a language for creating structured documents in which data are tagged for
meanings. The tagged data in XML documents and Web pages can be manipulated and used by
other computer systems. XML can thus be used to exchange data between Web sites and
different legacy systems within a firm and between the systems of different partners in a supply
chain.
Enterprise application integration (EAI) software and Web services can be used to integrate
disparate applications. EAI software enables multiple systems to exchange data through a single

22
hub to support new business processes without extensive custom programming, but it works with
specific applications and operating systems.

Managers should understand the capabilities of various categories of computers and

arrangements of computer processing. The type of computer and arrangement of processing
power that should be used by the business depends on the nature of the organization and its
problems. Computers are categorized as mainframes, midrange computers, PCs, workstations, or
supercomputers. Mainframes are the largest computers; midrange computers can be
minicomputers used in factory, university, or research lab systems, or servers providing software
and other resources to computers on a network. PCs are desktop or laptop machines;
workstations are desktop machines with powerful mathematical and graphic capabilities; and
supercomputers are sophisticated, powerful computers that can perform massive and complex
computations rapidly. Because of continuing advances in microprocessor technology, the
distinctions between
these types of computers are constantly changing.

Computers can be networked together to distribute processing among different machines. In the
client/server model of computing, computer processing is split between “clients” and “servers”
connected via a network.

The exact division of tasks between client and server depends on the application. Network
computers are pared-down desktop machines with minimal or no local storage and processing
capacity. They obtain most or all of their software and data from a central network server.
Whereas network computers help organizations maintain central control over computing, peer-
to-peer computing puts processing power back on users’ desktops, linking individual PCs,
workstations, or other computers through the Internet or private networks to share data, disk
space,
and processing power for a variety of tasks. Grid computing is a form of peer-to-peer computing
that breaks down problems into small pieces that can run on many separate machines organized
into a computational grid.

Managers should understand the capabilities of various types of software so they can select
software technologies that provide the greatest benefit for their firms. There are two major types
of software: system software and application software. System software coordinates the various

23
parts of the computer system and mediates between application software and computer hardware.
Application software is used by application programmers and some end users to develop specific
business applications. The system software that manages and controls the activities of the
computer is called the operating system. The operating system acts as the chief manager of the
information system, allocating, assigning, and scheduling system resources, and monitoring the
use of the computer. Multiprogramming, multiprocessing, virtual storage, and time-sharing are
operating system capabilities that enable computer system resources to be used more
efficiently. Other system software includes computer language translation programs that convert
programming languages into machine language and utility programs that perform common
processing tasks.

PC operating systems have developed sophisticated capabilities such as multitasking and support
for multiple users on networks. Leading PC operating systems include Windows XP, Windows
98 and Windows Me, Windows Server 2003 and Windows 2000, Windows CE, UNIX, Linux,
the Macintosh operating system, and DOS. PC operating systems and many kinds of application
software now use graphical user interfaces.

The general trend in software is toward user-friendly, high-level languages that both increase
professional programmer productivity and make it possible for end users to work directly with
information systems. The principal programming languages used in business include COBOL, C,
C, and Visual Basic, and each is designed to solve specific types of problems. Fourth generation
languages are less procedural than conventional programming languages and enable end users to
perform many software tasks that previously required technical specialists. They include popular
PC software tools, such as word processing, spreadsheet, data management, presentation
graphics, and e-mail software, along with Web browsers and groupware. Enterprise software,
middleware, and enterprise application integration software are all software tools for promoting
enterprise wide integration of business processes and information system applications. Software
selection should be based on criteria such as efficiency, compatibility with the organization’s
technology platform, vendor support, and whether the software tool is appropriate for the
problems and tasks of the organization.

24
Web services use open standards to link disparate systems belonging to a single organization or
to multiple organizations and can be used with any type of application and operating system
software

25
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