Chapter 1

What is the difference between IS AND CS ? OR if I have a company

why I will take IS not the CS ?
CS → they focus mostly for the programmer and it is related for
hardware ,
software , development , functionality of the system of the application.
but with
IS → they know a little bit of programming but with a lot of
information with the businesses and focusing for the company,
enterprise, entrepreneurship [ with doing an alignment between the
business and the technology of CS].

What is the difference between IT & IS?

IS
IT
Business
* Technical focus *

* social environment
* HW
*
people
* sw

d- networks
* Human part of Information systems

*
management
* process

the
*
Chang management manage acceptance
to with the change of
of people new
systems ,

the environment 8 needs

What do I mean when I say the alignment?

Make the IT works in purpose of businesses goals / or make the
technology and the businesses in the same line or the needs of the
technology is the same line with the needs of the business.
 Why do we use IS?

Information
Competitive (
Dealing with abstract work
N
with little details * specification

Advantage •

Longterm
Planing
Top

management
strategic
Effectillness
+ controlling the work at
Middle
ROA low level management .

Management
( Return assets )
•
SDLC → User needs Tactical
management
on

• Mid level Planing

Example → HRM Dss ,
, Technology
Systems

Lower Level
Efficiency Daily work Trey
+
,
cost Management
services ]→ short Operation level
1201

[
term
planing [ Tps )

Decision

Notes

* After the 90s, the IS entered the top managment

* As the IS is changing from the efficiency (in low level

management) to Strategic ( in top management), we should have
a strategic plan made by the IS people
Why the information different from data?

Data is a raw but the information is collection of data .

- [so in low management I will have data and then I will give it to
middle
management as enrolment , transcript , classless ]

- In top management I am dealing mostly with knowledge or decision

[ I don’t need information her – my outcome always knowledge or
decision ] , because I am planning for long term I will not benefit
anything from information .

What is the different between efficient and effective?

[ In the low – IS always in low management .. WHY? – because IS just
for efficiently for automation]
Efficient: minimum the usage of my resources to achieve the objective
Effective: I am not jest looking for the resources, I want to enhance the
productivity

COMPLETE ON HAYAT NOTES

strategic
Level

planing

/
business strategic
Planing planing
* Competitive advantage is a Business goal & IS linked to the business
goals

What the different between when we taking the user needs and the
business needs?

Like for example a business want to increase their market share by

20% → so they want to understand their customer (this is the business)
then they talk with the IS for how can we achieve or understand
l

customers [alignment] . so, IS people we can use CRM which will help
us to collect information from the customers, analyze this information,
using data science , using business intelligence and identify the
behavior customers . so then I [the CIO] will take this CRM to the
developer (CS people) . the developer will decide how to create the
CRM , what the functionality and what type of data we will collect [in this
case they will talk with the user – maybe the customer service ,
promotions , people on the loan or others which is depend on the
people that generating or creating a data from the customers ]
[ as brief at the first the top management explain what he want and then
decide the system for the IS to do – in this point we finish the business
needs - then from
our needs(users) they will help the developers to achieve the goals ]

Information Systems has helped in:

* The change of way of doing business

* But Security is the Main challenge
Information Systems Advantages:

1. Globalization:
* It has security risks
* It has Reliability Challenges
- The risks of hackers hacking the system
-The connection risks, which can stop the business run when it
stops
-Trust issues that is by the users

Information systems Opportunities:

1. Reduce costs of operation
2. Reachability which the customers can reach to the company
more easily
3. Having more customers

LOOK AT WAVES OF IT AT HAYAT NOTES

We have many types of computers from the beginning:

1.Institution (Dump PC)

2.Individual (Personal PC)
3.Connectivity (Start to have network)
4.Content
-Web Wen (only reading information without contribution)
-Web 2 (Reading and adding content)
Notes

- Investment in the IS in these days has increased, while the costs of

IS has decreased in turn.

Strategic Role of IS in business today

1. Operational Excellence
IT means that i improve the efficiency of my company, that will
increase my profitability.

Examples:
1. Helps in the inventory management, for example, that when the
inventory stock reaches 40 i have to reorder more stock.

2. New products, services and business models

Means that IT provides new products, services and business
models.

Examples:
1. Like the emergence of new technologies as iPhone, iPods,
networks and cloud computing. iPhone is (new product), the use of
tablets to take orders (new service) and the benefit pay (business
model) while Netflix is (business model) too.

3. Customer and supplier intimacy

Is the link with customers and suppliers. Like the instagram shops
where the buyers show what they offer on a page were the customers
can connect and contact with them by many ways, like whats app or
direct massages.
 EDI: Electronic Data Interchange
it is the process of exchanging information between different types of
users using the internet technologies

There are many types of networks used in most if organizations:

Extranet: the connection between a company and another external
company
Intranet: a local or restricted communications network, especially a
private network created using World Wide Web software.
Internet: a global computer network providing a variety of
information and communication facilities, consisting of interconnected
networks using standardized communication protocols.

4. Improved decision making

the IT helps the top management to take decisions, providing them
with unique knowledge and information, understanding the future of the
company, understanding the company competitive and the behavior of
the customers, forecasting demands, how to expand the market and
where they can go.

REFER TO HAYAT NOTES PAGE 7-8 FOR MORE

DETAILS
‫?‪What is the difference between Efficiency and Effectiveness‬‬

‫يعني مو مهم اللي اسويه صح او غلط ‪Efficient -> “Doing the things right” -‬‬
‫اهم شي اني قاعدة اسوي الشغلة‬
‫‪ -‬هذا ممكن يبطئ من عملية تنفيذ الشغلة الن ممكن اني موقاعدة اخذ عامل الوقت او حتى‬
‫عدم اهدار املوارد بعني االعتبار< هذا ممكن يأدي الى تعطيل العمل ونفاذ املوارد‬

‫هني الزم أتأكد اني قاعدة اسوي ‪Effective -> “Doing the right things" -‬‬
‫الشغلة املطلوبة وبالطريقة املطلوبة والصح بحيث تكون ذات كفاءة عالية واراعي فيها الشروط‬
‫‪.‬واملوارد املتوفرة‬

‫‪FOR DETAILS ABOUT THE COMPETITIVE ADVANTAGE IN‬‬

‫‪BUSINESS, REFER TO PAGE 5 IN HAYAT NOTES‬‬
 Nature of the technology

→ We now have networks

net -

* Data is not distributed

work
network
*
they are all on one

§§ [ Integrated
* "°
ʳᵈ°^ᵈ"ⁿY
+
networked ]

→ accurate data
+
Competitive
has
Distributed → each process their own client-server
Interconnected
[ client-server → Distributed → Interconnected]

#
↳
.

we are
the date
main frame exchanging
which done automatically § sending it , unlike the
is
^
What is manually
interconnected
[ EDI ]
? data
I can add the data, but I can't update it redun
effectiveness
no
integration dang
→

Has
big computes [ mainframe, have a
way
a
→

Fragmented specific operation

system -

D. [ Main Frame →
Fragmented ]
•

1 efficiency ↳ Each headquarter

- or each branch will have a
big
computer & it is
fragmented .

there
What is
fragmented ?
is no connection between them
There
.

* is no end user
* User is
accessing TPS or main terminal
by dump
computer .
 Chapter 1 Exam Q

Why company need SISP ?

159 strategic Playing a role As it should be

aligned with business goals ✗ directions
- it should have a
long term
planing .

What is the IT
Impact of on
organization ?
or

to
How IT can
help organization achene competitive

advantage ?
-

Roles of 15 ?

① Operational excellence

② New Business
, parakeets ✗ Service ,

③ link with C 8s

⑨ Dss

Explain Mls
why ,
era consider as User driven ?

All the applications is drilled created based the User

on
requirements
-
are

-
Interconnected ! no connection between technologies )

-
it is used for competitiveness

-
Business driven , why ?

IS planed based busine 's

•
apps developed , on needs & goals .

• Dp IT decide What app to use

-
Hardware limitation →
my Printer is limited 131W CHIW limit )
only
ex to
.

print

Technology limitation is the order to print the colored papers

- Software limitation → Because the system is based on the User

requirements 9 needs ,
but

the software the blamed

is
always .
 Types of knowledge ?

- Tacit knowledge →
my own enperiences 4
way of solving problems -

Unique (cone competencies)

Explicit knowledge the

- → available
knowledge to
everyone
Know
CE
How Cone '
→ - → competence + i-D .

FOR DETAILS REFER TO PAGE 14 IN HAYAT NOTES

Competitive Advantage

REFER TO THE SLIDE''S AND HAYAT NOTES PAGE 15

Identify the following based on the generic startic that they

are perused?

1.Macdonald - Cost Leadership (Global)

2.Walmart - Cost Leadership
3.Roserize - Differentiation
4.Ramiz - Cost Focus (Only in Bahrain & KSA & Thailand)
5.CK - differentiation
6.Al Hawaj - Differentiation Focus (it sells global brands but in
Bahrain) Creating branding, distinguished features in their
products
7.Jasmis - Cost Leadership
8-Mothercare - Cost Diffferentation ( Because they are only for
women and kids)
1.Differentation:
2. Cost Leadership: They are making their operations effective and
efficient, that will reduce the price. Along with the economies of
scale that will make them able to produce in large quantities that
will help in reducing the price

Technical: It will lower the cost of production when I produce more

Quantity
Financial: I will get a better loan as it will be cheaper, as i am a big
company
Container Principle:

How the company provide the best price?

By Effecient, Effective & Economies of scale.
What is the difference btween Rivalry among existing and the
Threat of new interants?

How can i know that opening the business is threatening me?

- If to does not need time to be opened, like Karak tea shops, i have a
threat or challenge to open
-But opening a university will be taking more time

What is the switching cost?

-it might be skills, knowledge and features
-like switching form Batelco & STC, if you have contract with one of
them it will be very tough
-The university can’t switch from BB to Teams, as BB has many
liecensce and they will lose the material and data that are putting them
on BB
-If Carrrefoure have dilevery and LuLu don’t, and i switch to LuLu then I
will lose the delivery service.
 Why I don’t feel threatened from the new internet’s when I have a
private hospital?
-They need time to open
-they need specialist
-the people cannot easily switch as the medical data can’t be
transferred easily
-The governmental agencies laws and regulation are though so not
easily open new hospital

*But opening a fashion shop is easy and threatening me, as I don’t have
to have specialists so it is easily oppened.

What is the features upon the YouTube and Video?

1. No Ads
2.No need for internet

Bargaining power of buyers?

- I want to make the customer less powerful
Ex. The company has many customers -> they are less powerful
- Zehra is buying more than kareema-> Zehra is more powerful cust
-price sensitivity -> ‫مقاصص السعر‬
-ability to substitute ->
-More cost of change -> Cust Less power, Less cost of change-> Cust mor
powerful
-Me as a company that i have many suppliers-> I am more
powerful
-Me as a company i have only one supplier -> I am less powerful

Being a unique supplier it is powerful

Switching cost for supplier will make him powerful
Ex. UOB switching form MS?
UOB will lose the Liecene & data

Cost of leaving the market

- Karak shops are easy to close
-If a big company want to close, they have inventory, they need
to make clearance, they wil lose a lot. If they can’t close, they will
stay but the competition will be very high for them.

How to be safe in the market in each of the forces?

-Providing a burrier
-Having a differentiation and a special feature
-Having a cost of changing by engaging the customers

REFER TO HAYAT NOTES IN PAGE 18 - 19

CORE COMPETINCIES

The core Competincy = VIRO

Ex. Zain Company has a unique advertising (core competency)

Google - they have an excellent algorithm making them the best
searching engine.
IKEA - they consider each corner they best utilize the places.
Netflix - they have an AI algorithm

In Exam - What is the core competencies of Honda?

As part of the strategy and strategic planing, How the company:
1. Add a barrier for the new interants
a.make high standards of my business
b.more efficient processes by taking advantage of economies of scale

2.Bargaining power of buyers (lowering the power)

a.Differentiating my business products
b.If the customer is sensitive i will lower the cost

Q3. What is the power of the following Porter Five Forces on the
company strategic position:

1.there is a government regulation -> the government will add a barrier,

so new interants will not threaten me (must have three columns to answer)
Impact of porter fine forces Impact

Government
policy / TNG /Put barrier
for new intrants

2.supplier has a high switching cost -> the supplier will be powerful, he
will impact my service and profit. I have to lower the power of supplier

Supplier
supplier high
suiting 13ps power
cost

3.High No. of customer s -> the customer have lower power, they can’t
impact my business.
Barrier for
TNE → add
new internists
Buyeo switching Rc →
low army Intense
cost
BPB → Buyer Lees
4.Company providing unique service -> power
a.Bargaining power of buyer, that will make the buyer less powerful.
b.Lower intense of competition.
Value chain analysis : mean that visually analize company
activites (we have primary activity and support activity )

Strategy: A direction (where i have to go)

Direction
Resources
Objective
I have the direction (guidance) to use the resources to
Achieve the objectives.

The difference between vision and Mission?

REFER TO HAYAT NOTES PAGE 22

REFER TO HAYAT NOTES THE TABLE IN PAGE 24

Goal: To maximize the reliability of all products through rigorous quality
control (long term but cannot be measured)

Objective: To increase the reliability parameters (such as

MTBF) of all products at least by 10% by the end of the year.
(SMART) [ I can set objectives to measure my goal]

What is the difference between goal and objectives?

We use the goals to achieve the objectives
Value: is something that the company believes it will offer by their
services

What is the difference between the value and the vision?

GPIC -> they are lowering their production, because the value of them
is to save the environment and lower the pollution
TOYS R S-> They don’t believe in the online, they have a value that
they believe in were is that the kids need to cooperate and play to
gather and have the chance to sense tangible things.

Some value examples:

-Cooperation
-Creativity

Exam Q: Is this a vision, mission, value, objective?

IS Strategy: We use a guidance or a direction to maximize the return on IT
and business with a sustainable value for the organization.

IT strategy is only for WHAT [tangible things (part of the

IS strategy ) → hardware , Software , Network ,
Communication ]

Types of IS Strategy:
➔ IS strategy is for WHAT [ IT strategy) + HOW (PROCEDURE,
POLICIES, CHANGE Management)+ WHO – Who will involve
the IS or with who he will communicate (IT , CIO, TOP
MANAGEMNT) ]

REFER TO HAYAT NOTES PAGE 26

REFER TO SLIDES NO 49 & 50 & 51

GENERIC IS STRATEGY
REFER TO HAYAT NOTES PAGE 27 & 28 & 29

Why the top management are IT knowledgeable?

1. because they believe
that IS can be help in achiving their compatotve advantage
To adapt a centrally planned we need an IT knowledgeable top
management?
1.They should perceive the starategic role of IS
2.they are involved in the planning of the IS and in any issue in the IS.
3-Identify the IS Opprtunity

The top management will plan -> and send to middle managment to
control and monitoring to achieve the plan objective ( the order is by the
top management)
Explain Why:
- In an organization that adopted centerally planned IS Strategy, Top
managment should be IT knowledege
REFER to Page 27 (same)

-Identify four of the organization strategic resources that can be

exploit to achieve the compatitive advantage. Use VRIO.

1- Knowledge : Patent, tacit knowledege, ex

Plan centerlization-> i will do the plan for whole organization and i each
department there is is controlling (no centerlised controlling) and the
department cannot plan for MIS.

Why the top management & user are opportunity spotter?

1.they are knowledgeable
2.they believed that the strategic role of IS

2. LEADING EDGE (Leading the market)

We are leading the market by the new technologies that we offer, and we
are leading by the technology not the business that is the main source of
achieving competitive advantage
Example:
-Apple (they create the new technology and other companies imitate them)
-Samsung (they have a whole city to innovate, because they depend on it)

The people who take this Stratigy

- risk taker-> they believe that they will have a payback for the risk they
take
-openings to change ( accepting the new ideas to go to better things)
-believe in innovation
-Ability to commit to large amount of budget for the IT (they give
anything and any amount of money to bring experts or i will send my people
to get new skills provide labs that are for experiment and innovation that is
the R&D or to change or add something on the infrustructure)
Why innovation lab?
To experiment the new technology, to provide the innovative environment.

What is my Role as IT Specialist?

1- to experiment the new technology on the company
EX. I will experiment the online banking then promote it to the Top
managment, as they are knowledgeable of the technology
2-promoter for the company it self.
 MKT

13M¥ -
HE

¥
/
•n /
pro

➔Centrally planning but decentral controlled [it is centrilzed and

strategic planning → because it is done by the top mangmant
which work in parallel with the bussniss strategic planning ]

➔Also it is Decentralized as each department also manages its

own IT

FREE MARKET
☒

13M¥\ /
YA

on / Fit
pro
-Each Department takes its own decision without referent to the
centerlized IT in the company
Ex. The company will give me 500BD and tell me to go to any shop to
buy the laptop, then it is my responsibility to buy it.
-Managemnet should be IT Knowledgable & Accountable & Responsible

Q. Why Budget is high in free market?

Because the duplication on the resources, experts and infrastructure is
accepted, as there is no integration between the departments as each
department is responsible, like federal.

Q. What is the role of IT in the free market?

They are generating profit bey promoting the technologies to people,
internally and externally , as they are competing by it making a
competitive business unit.

IT people Role -> Competing Business unit

Users-> Negotiating on the products
Budget-> High
Control & Planning-> Decenterlized

4.MONOPOLY
REFER TO HAYAT NOTES PAGE 34
Why the monopoly is the opposite of free market?
-IS is based on our needs, not in the top Managment, as they are in the
middle management
-single sourcing policies, take it from the IT center that makes it have
one standard. (Monopolized)

Q.What is the role of IS?

IS Provide high quality service based on the users need, they are
reactive ( what ever you ask them they do, they do not plan for the
future)
Q. What is the role business people?
They work as negotiation, for sharing resources , changes new systems
or having more features

Budget-> very tight (monopolized in one center)

Planning & Controling -> Centerlized (not in top managment, in the
middle managment)
Users -> Negotation for better services, they have a single sourcing
(they are not knowledgable, so they are not responsible for buying the
IT resources)

5. SCARCE RESOURCES
- you should provide a justification for any resources that you will
request.
-IS have a negative impact on the company
 Why the monopoly is the opposite of free market? PUT THIS IN THE
EXAM ( 2- 3 POINTS OF IT ENOGH) tree

Q. Why i need strong technical skills?

To be able to experiment the new technologies and they are promoter of
them.

they plan
~
From
Hayat
What is the myurity? The IS stages

Know in which stage I’m in the IS

STAGES OF GROWTH 71 , 119 % µ

REFER TO SLIDE 67

STAGE 1: INITIATION
Why do we use IT?
- with the huge amount of documents & Transactions
-Many complicated computations are in need

Key Points:
-IT used only for automation
-IT is used only on accounting
-Lack of managment interest
IT available on operation?
They did not care about management
-people are hand off the technology (they don’t want to use the PC,
they are not interested)
-IT specialist are trying to learn more about IT (any problem that they
can handle it by the mainframe)
-there is no planing, there is a control on the operational level
-IT used for only one function, not whole organization
-no budget or planing for IT
-no perception of the value of IT
STAGE 2: CONTAGION

What do i want to reach?

Enhance the awareness of the users of the importance of IT

Key Points:
-The applications are distributed on each department on the
organization(because i want them to use it)
-People are enthusiastic to use the IT technology
-Management control more relaxed, having more budget (I don’t
purchase the IS upon a need)
Why i increased budget?
- i purchase It without planing or control
-they purchase IT for all the organization to distributed
- i hired experts that will train the employees to use the technology
-there is a rapid growth
-they treat the technologies as any machine ( they have low
perception of IT)
-rapid of computer use (People are trying to use it)
-computer use is plunge crisis after crisis

Why?
- no control, no planing, i gave them privileges without identifying
the needs

They still perceive IT low, only on operation level

STAGE 3: CONTROL
What i want to do?
A reaction of the high and unwanted expenditures of the operational
level

Characteristics of the stage:

-we are controling the managment projects

Why the IT became in the Middle management?

-shift from the management of computers to managing data
resources (hoe to start to achieve some the users needs)
-programming documentation and standards (standardization on the
operation)
-project based planing

Key Points:
- There is no reduction in computer use
- IT is more important IT start to be in the middle managment
-centralized control of the IT usage
-Application are often incompatible or inedaqute?
Why?
beacause each department has its own operational system, that might
conflict. And inadequate because it does not enough to do the work i
want
-no control and not specific to the needs

-
STAGE 4: INTEGRATION
The stage were i will integrate the IT all over the organization & i
want to have the online like for communication

Key Points:
- there is a rise of control by the users
- large data processing budget growth exists
Why?
- we want to have new technology to integrate the IT
-i want to use online database and applications

- data processing worked as a computer utility

-formal planing for the project (SDLC)
-Users are more accountable for their application ( everything they
want in any part of the organization they can see on the
organization)
- Use of Steering committee, application of financial planing
becomes (I don’t have only IS people, i have the finance and IS
people) Why? To plan the IS application to plan for how much it
will cost me to make the application, how much finance i need?

better management control and standard and database

STAGE 5: DATA ADMINISTRATION

Key points
which is bigger and more important to management, data or
database?
Data is more important, Because the data it is between all the
organization, when i manage the database: manage the app but not
manage the data and how it will go with the whole organization

-I recognize the need and value of the data that is coming form the
different operations and department in the organization. Perceive
the value added form the data that is from the cross functional
process.
-set a relationship between the process to increase the value
perceived.
-start to have the application

What is the application portfolio?

It has all the content of the application.
What business value it will offer
-what is the porpuse of thee app

- am key difference is the use of term IT/IS rather than data

processing.
STAGE 6: MATURITY

Aim: set alignment between business and IS

- it is opportunistic, it will give me

Key points:
-system reflects the real information need of the organization
-Start to have SISP
-Steering come tee that have all the stakeholders and they react for
their own needs
-start to have the CIO to set at the same level of CEO and it is
considered as a competitive advantage

ALL THE STAGES IN TABLE

recogniee the
value of
Cross functional
data

sleep

ntoudget high budget

In the middle level

↑
Start to

have CIO
is
which
a
competitive
advantage
BUSINESS AND IT ALIGNMENT

REFER TO SLIDE 69

"%É?,g
here d "
not
in "
?
if thisneed
Wnt to go
where
l
* *
a-
a.
- no
y
a.

market
develop had
it is direction
be
a -

→ ↳ aguirre
to
grind the org customer
must
wit
by reacting
'

to the ,,
dynamic resources
µ OPP

which Chagres
we are

expecting ?

a. µ,

?
why
→ depends on the needs of the business needed APPS :
Which app has more per iority
-

demand 4- the application ( which app in

eel depending
the
on the need ]

help in ditteneaciatm
products it will
-
to design items as
building $ ,

the customer
← help in
understanding
to deliver it
I want someone

activities to create the apps

sat
Ex activities needed to make CRM ?
. Which

REFER TO HAYAT NOTES PAGE 53

-
Explain why IS strategy is demand orient while IT strategy is
business oriented?

Demand of application is based on the business needs, supply oriented is

based on the IT needs and the architecture that is there