ISM Assignment

Group No- 20
Roll No. from 96 to 101

Students Under this group:

1. Sachin Sharma
2. Deepali
3. Sarbjeet Kaur
4. Harshita Rawat
5. Shivam
6. Nikhil Kapoor
7. Keshav
Q.17 Explain Competitive Forces Model for IT infrastructure Investment?
Ans. The competitive forces model can be used to determine how much to spend
on IT infrastructure and where to make strategic infrastructure investments,
starting out new infrastructure initiatives with small experimental pilot projects and
establishing the total cost of ownership of information technology assets. This
model has six components:

1.Market Demand for Your Firm’s Services:

Make an inventory of the services you currently provide to customers, suppliers,
and employees. Survey each group, or hold focus groups to find out if the services
you currently offer are meeting the needs of each group. Are employees
complaining about the difficulty of finding the right information for their jobs? Are
suppliers complaining about the difficulties of discovering your production
requirements?
2. Your Firm’s Business Strategy:
Analyse your firm’s five-year business strategy, and try to assess what new
services and capabilities will be required to achieve strategic goals.
3. Your Firm’s Information Technology (IT) Strategy, Infrastructure, and Cost:
Examine your firm’s information technology plans for the next five years, and
assess its alignment with the firm’s business plans. Determine total IT
infrastructure costs. You will want to perform a total cost of ownership analysis.
4. Information Technology Assessment:
Is your firm behind the technology curve or at the bleeding edge of information
technology? Both situations are to be avoided. It is usually not desirable to spend
resources on advanced technologies that are still experimental, often expensive,
and sometimes unreliable.

5. Competitor Firms’ IT Services:

Try to assess what technology services competitors offer to customers, suppliers,
and employees. Establish quantitative and qualitative measures to compare them to
those of your firm. If your firm’s service levels fall short, your company is at a
competitive disadvantage. Look for ways your firm can excel at service levels.

6. Competitor Firm IT Infrastructure Investments:

Benchmark your expenditures for IT infrastructure against your competitors. Many
companies are quite public about their innovative expenditures on IT. If competing
firms try to keep IT expenditures secret, you may be able to find IT investment
information in public companies’ annual reports to the federal government when
those expenditures impact a firm’s financial results.

Q.36 Contrast and compare the following:

Ans. A) SDLC, Prototyping and Spiral approach:
SDLC Prototype model: Software development life cycle prototype model is based
on building software applications prototypes. These application prototypes display
the functional behaviour of the product under development but in actual procedure
it does not hold the exact logic of the original software product.
The basic idea behind the working behaviour of prototype model is that in
this SDLC model instead of freezing of customer requirements before a design or
coding phase (likewise waterfall model) can proceed. A throwaway or a temporary
prototype is built to understand the customer product requirements. This prototype
model is developed under the current requirements of the product. By the use of
these prototypes the customer can get “a real behaviour” of developed product. In
this model of SDLC the customer interactions with prototype can enable the
customer to better understand the requirements of the desired system. Customer
involvement and provide a valuable feedback about the functional behaviour of the
software product helps to software developer and designers to better understand the
problem and overcome the problem with continuously working.
A prototyping model is a systems development method in which a prototype (an
initial approximation of a final system or product) is built, tested and then
reworked as necessary until an acceptable prototype is finally achieved from which
the complete system or product can now be developed.

Prototyping model works very much well in cases whereby all the details of
requirements are not known well in advance. It is majorly a trial-and-error process
which works in an iterative manner. Prototype model is used:

1. In online systems and web interfaces that normally have a high amount of
interaction with end users.
2. When desired system requires having a lot of interaction with end users.
3. When the system feedback is required from end users.

Spiral model is a risk-driven software development process model. Based on the

unique risk patterns of a given project, the spiral model guides a team to adopt
elements of one or more process models such as incremental, waterfall or
evolutionary prototyping. Each phase in spiral model begins with a design goal and
ends with the client reviewing the progress.

Spiral Model is used in the following circumstances:

• In cases where the software requires continuous risk assessment or evaluation.

• When the project is huge.

•The project requirements are complex and require continuous clarification.
• In case where releases are required to be frequent.
• Where software requires significant changes.
• Where there is too much time to collect and analyse end-user experience.

B) Database and knowledge base:

First of all a database is a concrete technical solution to store and organize data - it
is mostly also limited on just these functionality. In contrast to that, a knowledge
bas is a technology to store "knowledge". For this purpose it can use a database,
but it is not limited on these functions. A knowledge base can use many databases
or can combine or enrich it with information from public data sources. So, a
knowledge base is more or less big and a heterogeneous source for many kinds of
information.
A knowledge base is a particular kind of database. From a knowledge base we
require that it stores and evaluates information in a similar way a human would
perceive a domain, however normally bound to binary logic. That means that
"tables" correspond to classes which can be identified with categories in the user
domain and relationships that are related as a user would perceive it. More
technically, we require class and relationship assumption (a "dog" is a "mammal",
"reading a book" is "using a book"). Currently, RDFS and OWL provide the most
popular data models for knowledge bases, but using them does not prevent
someone to represent knowledge in a wrong way. The test (with the user) is the
"ontological commitment" of the classes and properties used.

C) Data warehouse and Data Mart:

1. Data warehouse is application independent whereas data mart is specific to

decision support system application.
2. The data is stored in a single, centralised repository in a data warehouse. As
against, data mart stores data decent rally in the user area.
3. Data warehouse contains a detailed form of data. In contrast, data mart
contains summarized and selected data.
4. The data in a data warehouse is slightly demoralised while in case of Data mart
it is highly demoralised.
5. The construction of data warehouse involves top-down approach. Conversely,
while constructing a data mart the bottom-up approach is used.
6. Data warehouse is flexible, information-oriented and long time existing nature.
On the contrary, a data mart is restrictive, project-oriented and has a shorter
existence.

D) Transaction Processing Systems (TPS):

A transaction process system (TPS) is an information processing system for
business transactions involving the collection, modification and retrieval of all
transaction data. Characteristics of a TPS include performance, reliability and
consistency.
TPS is also known as transaction processing or real-time processing
transaction process system and transaction processing are often contrasted with a
batch process system and batch processing, where many requests are all executed
at one time. The former requires the interaction of a user, whereas batch processing
does not require user involvement. In batch processing the results of each
transaction are not immediately available. Additionally, there is a delay while the
many requests are being organized, stored and eventually executed. In transaction
processing there is no delay and the results of each transaction are immediately
available. During the delay time for batch processing, errors can occur. Although
errors can occur in transaction processing, they are infrequent and tolerated, but do
not warrant shutting down the entire system.
To achieve performance, reliability and consistency, data must be readily
accessible in a data warehouse, backup procedures must be in place and the
recovery process must be in place to deal with system failure, human failure,
computer viruses, software applications or natural disasters.

E) Management Information Systems (MIS):

A management information system (MIS) is a computer system consisting of
hardware and software that serves as the backbone of an organization’s operations.
An MIS gathers data from multiple online systems, analyses the information, and
reports data to aid in management decision-making.
 MIS is also the study of how such systems work.

Improved Decision-Making: The purpose of an MIS is improved decision-

making, by providing up-to-date, accurate data on a variety of organizational
assets, including:

 Financials
 Inventory
 Personnel
 Project timelines
 Manufacturing
 Real estate
 Marketing
 Raw materials
 R&D
The MIS collects the data, stores it, and makes it accessible to managers who want
to analyse the data by running reports.

Central Information System: The goal of an MIS is to be able to correlate

multiple data points in order to strategize ways to improve operations. For
example, being able to compare sales this month to sales a year ago by looking at
staffing levels may point to ways to boost revenue. Or being able to compare
marketing expenditures by geographic location and link them to sales can also
improve decision-making. But the only way this level of analysis is possible is due
to data that is compiled through an MIS.

Running reports that pull together disparate data points is an MIS’ key
contribution. That feature, however, comes with a significant cost. MIS
implementation is an expensive investment that includes the hardware and
software purchases, as well as the integration with existing systems and training of
all employees.

F) Decision Support Systems:

A decision support system (DSS) is a computerized program used to support
determinations, judgments, and courses of action in an organization or a business.
A DSS sifts through and analyses massive amounts of data, compiling
comprehensive information that can be used to solve problems and in decision
making.

Typical information used by a DSS includes target or projected revenue, sales

figures or past ones from different time periods, and other inventory- or operations-
related data.

A decision support system gathers and analyses data, synthesizing it to produce

comprehensive information reports. In this way, as an informational application, a
DSS differs from an ordinary operations application, whose function is just to
collect data.

G) Information and Knowledge:

The points given below are important, so far as the difference between information
and knowledge is concerned:

1. Information denotes the organised data about someone or something

obtained from various sources such as newspaper, internet, television,
discussions, etc. Knowledge refers to the awareness or understanding on the
subject acquired from education or experience of a person.
2. Information is nothing but the refined form of data, which is helpful to
understand the meaning. On the other hand, knowledge is the relevant and
objective information that helps in drawing conclusions.
3. Data compiled in the meaningful context provides information. Conversely,
when information is combined with experience and intuition, it results in
knowledge.
4. Processing improves the representation, thus ensures easy interpretation of
the information. As against this, processing results in increased
consciousness, thus enhances subject knowledge.
5. Information brings on comprehension of the facts and figures. Unlike,
knowledge which leads to the understanding of the subject.
6. The transfer of information is easy through different means, i.e. verbal or
non-verbal signals. Conversely, the transfer of knowledge is a bit difficult,
because it requires learning on the part of the receiver.
 7. Information can be reproduced in low cost. However, exactly similar
reproduction of knowledge is not possible because it is based on experiential
or individual values, perceptions, etc.
8. Information alone is not sufficient to make generalisation or predictions
about someone or something. On the contrary, knowledge has the ability to
predict or make inferences.
9. Every information is not necessarily a knowledge, but all knowledge is an
information.

H) Data warehousing and Data Mining:

It is the process of finding patterns and correlations within large data sets to
identify relationships between data. Data mining tools allow a business
organization to predict customer behaviour. Data mining tools are used to build
risk models and detect fraud. Data mining is used in market analysis and
management, fraud detection, corporate analysis and risk management.
Comparison between data mining and data warehousing:

Data Warehousing Data Mining

A data warehouse is database system which is

Data mining is the process of
designed for analytical analysis instead of
analysing data patterns.
transactional work.

Data is stored periodically. Data is analysed regularly.

Data mining is the use of pattern

Data warehousing is the process of extracting
recognition logic to identify
and storing data to allow easier reporting.
patterns

Data warehousing is solely carried out by Data mining is carried by business

engineers. users with the help of engineers.

Data mining is considered as a

Data warehousing is the process of pooling all
process of extracting data from
relevant data together.
large data sets.
I)Management Information System and decision support system:
Difference between Management Information System (MIS) and Decision
Support System (DSS):

MIS(MANAGEMENT DSS(DECISION
PARAMETER
INFORMATION SYSTEM) SUPPORT SYSTEM)

Identifies information Develop certain tools for

1. Main task
requirement. using decision process.

Main stress is on
2. Main stress Main stress is on efficiency.
effectiveness.

3. Type of database
Uses corporate database. Uses special database.
used

Data storage is of great Main emphasis is on data

4. Data related task
importance manipulation

Very much dependent on dependent on

5. Dependency on
computer management judgement.

Indirect access of data by Management enjoys

6. Access to data
provided direct access

Principal use is planning,

7. Principal use Principal use is control
staffing, decision making.

8.Created/developed Constructed by vendors or Created by users alone or

by information specialists with specialists.

Middle level, lower level, Analysts, professionals,

9. Types of users
sometimes senior executive managers.

Focuses on information Focuses on decision

10. Main focus
processing. support, analysis.

J) Knowledge Management systems vs expert systems:

A knowledge-based system (KBS) is a computer program that reasons and uses a
knowledge base to solve complex problems. The term is broad and is used to refer
to many different kinds of systems. The one common theme that unites all
knowledge based systems is an attempt to represent knowledge explicitly via tools
such as ontologies and rules rather than implicitly via code the way a conventional
computer program does. A knowledge based system has two types of sub-systems:
a knowledge base and an inference engine. The knowledge base represents facts
about the world, often in some form of consumption ontology. The inference
engine represents logical assertions and conditions about the world, usually
represented via IF-THEN rules.
An expert system is a computer system that emulates the decision-making ability
of a human expert. Expert systems are designed to solve complex problems by
reasoning about knowledge, represented primarily as if–then rules rather than
through conventional procedural code. An expert system is divided into two sub-
systems: the inference engine and the knowledge base. The knowledge base
represents facts and rules. The inference engine applies the rules to the known facts
to deduce new facts. Inference engines can also include explanation and debugging
capabilities.

K) Programmable vs Non-programmable decisions:

Programmed Decision Non-Programmed Decision

Used for frequent situations of Used for unique and ill-

the organization; both structured situations of the
internal and external. organization; both internal and
external.

Mostly Lower level managers Mostly Upper-level managers

are making these decisions. are making these decisions.
Follows structured and non- Takes an outside of the box
creative patterns. unstructured, logical and
creative approach.

Programmed decisions usually relate to structured problems while non-

programmed decisions are taken to solve unstructured problems.

It is also to be noted that the programmed decisions are taken at the lowest level
whereas the non-programmed decisions are taken at the highest level of the
organization hierarchy.

L) Intranets and Extranets:

Intranets and extranets both provide businesses with a central place to store and
share information that’s critical to business organization and operation such as
project information, documents, group calendars and accounting. Both also
permit users to collaborate more effectively across the company whether it’s
employees in one branch speaking to another or human resources personnel
giving out important information.

The differences between intranet and extranet are more subtle to an average user.
An intranet is only accessible through an in-house server – in other words, an
employee has to be onsite to gain access to the company intranet. An extranet is
accessible to employees or other authorized users anywhere in the world as long
as they have a user ID and password or another secure method to access the
intranet portal. Extranet users usually access the company portal via a virtual
private network (VPN). A VPN creates a secure, encrypted way for the company
and its authorized users to share data even though users are accessing the extranet
from the public internet.

M) Competitive Advantage and Strategic Advantage using suitable examples:

In its simplest form, strategic management is the process of managing a business
with the goal of fulfilling its mission, vision and objectives. The strategic
management process includes the following:

1. Goal setting: Goal setting involves looking at where the organization is

and deciding where you want it to be, then communicating these goals with
 everyone in your organization. It is easier for individuals, teams,
departments and your entire company to excel when they know what they
ought to be aiming for.

2. External and internal analysis: Once you know what your goals are,
gathering data is vital to your success. Analyse what is happening inside of
your company, outside your company and with the competition. This
information will inform how you proceed and help you make wise choices.

3. Creating strategies: Use your goals and data to come up with a strategy
for meeting your organization's goals. For instance, your strategy for
increasing the sales of home fragrance might involve packaging and more.

4. Implementation: Implementation is when each person involved in your

strategy walks out their own part in helping your business succeed.
Excellent communication and a team that is on board with the vision is key
to successfully implementing strategies.

5. Evaluation: Strategies often need to be adjusted as you go, so keep tabs on

how all the moving parts of your strategy are performing. It is okay to
tweak things in order to reach your projections. Evaluation after project
completion can help you see what went well and what you might change
next time.

The relationship between strategic management and competitive advantage lies in

your management's strategies being vehicles that increase your edge over the
competition. Competitive advantage is when one company produces a product or
service that meets the customer's needs in a way that their competitors cannot.
Consider the following:

 Price: When two companies offer comparable products but one company can sell
it at a lower price and still make a profit, they might gain a competitive
advantage. When faced with two nearly identical products, customers are likely to
choose the lower-priced option. For instance, if superstore A and superstore B
sell the same quality paper plates for your next big cookout, customers might
choose to purchase from superstore A, which consistently offers a lower price on
most things.

 Differentiation: Sometimes, a company can charge more for a product than their
competition and still get more business, resulting in a competitive advantage.
This is because something about their brand, product or service is more attractive
to their target audience. For instance, iPhones are not the least expensive
smartphones on the market, but the brand is known for being innovative, sleek
and user-friendly, so they have gained a competitive advantage that is hard to
beat.

N) Structured decisions and unstructured decisions:

1. Structured decisions are the decisions which are made under the established
situations for example hiring a new employee while unstructured decisions are
made under the emergent situation, for example fire breakout.
2. Structured decisions are the programmable decisions and they are replanted for
example the payroll for employees while unstructured decisions are creative and
they are not replanted for example if fire break there and then manager can make
decision unplanned.
3. Structured decisions are made in the situations which are fully understood while
in unstructured decisions the situations are uncertain and unclear.
4. Structured decisions are generally made for routine tasks, for instance the hiring
of new IT specialists in a firm while unstructured decisions are made for a sudden
one-shot kind of situations, for instance, dealing with a labour strike in a factory.
5. Structured decisions are made for specified processes like specialized
manufacturing processes while unstructured decisions are made for general
processes.
6. Structured decisions have a well defined methodology for finding a solution and
have the data to reach a decisions. They are usually straight forward and made on a
regular basis, an example of a structured decision in my company is whether or not
to withdraw funds from an international account depending on the current
exchange rate while Unstructured decision rely on knowledge and/or expertise and
often require data and models to solve, an example of an unstructured decision in
my company is what types of new content should be created and what market
should be targeted.

O) Tacit knowledge and explicit knowledge:

Tacit knowledge is the knowing of things without knowing how you know; explicit
knowledge is the knowing of things that you can explain. For example, most
people can speak grammatically without being able to explain the rules of
grammar. This is Tacit knowledge.
Tacit Knowledge is the knowledge your [co-worker or neighbour or associate]
knows, but isn’t codified or written down; while Explicit Knowledge deals with
knowledge that is written down and structured. For example, your co-worker
knows how to fix Word when it chokes on an important document; but she is the
only one. This is the Tacit Knowledge that Project Management tries to root out
and codify. Once that knowledge is written down and saved somewhere it becomes
explicit.

Q13. A) Explain E-commerce in terms of business and technology.

B) Why are computer system so vulnerable? Describe the most
common threats against contemporary information systems?

Ans. A) Electronic commerce, commonly known as E-commerce or e-commerce,

is trading in products or services conducted via computer networks such as the
Internet. Electronic commerce draws on technologies such as mobile commerce,
electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management
systems, and automated data collection systems. Modern electronic commerce
typically uses the World Wide Web at least at one point in the transaction's life-
cycle, although it may encompass a wider range of technologies such as e-mail,
mobile devices, social media, and telephones as well.
There are several ways of looking at e-commerce which is given below:
Communication: It is the ability to deliver products, services, information, or
payments via networks like the internet.
Interface: E-commerce means information and transaction exchange: (Business to
business, Business to consumer, Consumer to consumer, and business to
government.)
Business process: E-Commerce means activities that support commerce
electronically by networked connections. For Example business processes like
manufacturing and inventory etc.
Online: E commerce is an electronic environment that allows sellers to buy and
sell products, services, and information on the internet. The Products may be
physical like Cars, Computers, Books or services like news or consulting.
Structure: Ecommerce deals with various media: data, text, video, web pages, and
internet telephony.
Market: E-commerce is a worldwide network. A local store can open a web
storefront and find the world at doorstep- customers, suppliers, competitors, and
payments services, Of course, an advertising presence is essential.

Ans. B) Computer security vulnerability can harm five kinds of system securities
that include: Reliability, confidentiality, entirety, usability, and undeniableness.

 Reliability: This refers to reducing incorrect false alarm in the operation of

a computer system and enhancing the efficiency of a computer system.
 Confidentiality: This refers to protecting users’ information from disclosure
and getting by unauthorized third party.
 Entirety: This system security requires that information or programs should
not be forged, tampered, deleted or inserted deliberately in the process of
storing, operation and communication. In other words, information or
programs cannot be lost or destroyed.
 Usability: This ensures that users can enjoy the services offered by
computers and information networks.
 Undeniableness: This security refers to guaranteeing information actors to
be responsible for their behaviour.

The most common threats against contemporary information systems are:

The multi-tier client/server computing environment: The vulnerabilities exist at

each layer and in the communication between the layers. The user often
unauthorized access and introduce errors.

The communications lines: The common threats are tapping, sniffing, message
alteration, theft and fraud and radiation.

The Corporate Servers: The most common threats are hacking, viruses and
worms, theft and fraud, vandalism and denial-of-service attacks.

The Corporate Systems: The most common threats are theft of data, copying
data, alteration of data, hardware failure and software failure.

Q.36 Contrast and compare the following:

13. Intranets and Extranets

Ans= First things first—what do each of these terms mean? Here’s a quick
overview:
Intranet: An intranet is essentially a software tool used for everything from your
office’s water cooler chats, product information sharing, filing cabinet and
noticeboard, just completely virtual and accessible from anywhere. Companies
typically use their intranet to enhance internal communication, increase staff
engagement, and encourage collaboration within teams.
Extranet: An extranet, on the other hand, is a tool used for collaboration between
your business and a third party. It allows for information and file sharing, rapid
communication and fluid collaboration. Typically, organizations will use an
extranet for gaining efficiencies and adding value to customer and supplier
relationships.
To boil things down regarding intranet vs extranet, an intranet is just for your
internal people to use, whereas an extranet is for your people to use, as well as
external people. Both have different key distinguishing features, which we look at
in more detail below.
 The first difference between all is a matter of availability. Internet is a global
network system and is available to all while Intranet and Extranet are
available to the limited inside and outside users of the organization.
 Intranet and Extranet are more secure than the Internet because having an
Intranet or Extranet network system means the organization has created a
firewall against outsiders. Accessing any information on the Internet is not
much difficult today.
 The general public is the use of the Internet so it can be called a public
network while business persons and organizations are the users of Intranet
and Extranet and can be called private networks.
 The Internet can be accessed without having a user account. While user
account is the first important condition in the case of Intranet and Extranet.
 The Internet has no hard and fast policies while there is a complete
organization policy behind the setup of the Intranet and Extranet.
 Both intranet and extranet or more secure as compared to the internet
because these are based according to the policies of the organizations. The
business of their own decision to grant access to the others in case of intranet
and extranet.
 The business and organizations are the only users of intranet and extranet
while the internet is the global communication system.
 The Internet is managed by the autonomous networks while extranet and
intranet are managed and maintained by the CIO, HR or communication
department of an organization.
 The Internet is economical as compared to the intranet and extranet because
these two require special set up the cost. Both of these required special
software, hardware and employee training cost to be familiar with the
special IT environment.
 If the intranet is derivate from the internet then extranet is derivate from the
intranet.
 The Internet works as a channel of communication and collaboration in the
internal environment of an organization only while extranet work as a
channel of communication and collaboration in both the internal and
external environment of an organization.
 An intranet is more secure as compared to internet and extranet because both
of these involve the number of users.
 14. Competitive Advantage and Strategic Advantage using suitable
examples

ANS = Competitive advantage is a favourable position a business holds in

the market which results in more customers and profits. It is what makes the
brand, product, or service to be perceived as superior to the other
competitors.
 A brand can create a competitive advantage if it is clear about these three
determinants:
 Target Market: The perfect knowledge of who buys from the brand, what
they desire from the brand, and who could start buying from the brand if
certain strategies are executed is essential for the business to create a
competitive advantage over the competitors.
 Competition: The business should have an answer to these two questions:
Who is the present competition and who could be a prospective competition
in the coming years? What are the production, pricing, marketing and
branding strategies they’re using to develop and market their products?
 USP: The unique selling proposition is usually the chief trigger of the
competitive advantage and separates the business from the competition. It is
the reason why the customers choose the concerned brand over others. The
USP should be clear to both the business and the customers in order for a
brand to create a competitive advantage.

 Competitive Advantage Examples

 Google
 Google enjoys the competitive advantage of being the only effective search
engine over the internet. The company was able to reach this height because
of its size, innovation, market position, and the network effect.
 Also Read: What Is Social Marketing?
 Facebook
 With its biggest competitor, Google plus, not even being close to it,
Facebook surely enjoys a competitive advantage over its competitors. One of
the biggest reason is the network effect, but other reasons which led to this
success are constant innovation, the advertisement (free) business model,
and the personalized content.
  STRATEGIC ADVANTAGE
Strategic advantage is the most fundamental and persistent advantage that the
target companies possess over it's competitors over the very long term. These
advantages or disadvantages are generated by the companies actions.
For Example: Wal-Mart strategic advantage is their low prices. Their always have
the lowest prices, which puts any competitor at a disadvantage when compared
directly to Wal-Mart (aka: Kmart). Coca-Cola has their brand name, which always
them to charge higher prices for similar products.
An example of a strategic disadvantage is the travel brokerage industry after the
development of online travel services. Travel services are cheaper and more
convenient for most people; therefore, the traditional travel brokers were at a
strategic disadvantage to low cost online alternatives.
Short term advantages or disadvantages are not useful for a long-term investor.
Additionally, externally-generated advantages or disadvantages are better
categories as price triggers (opportunities or threats), because they can move the
stock price over the short-term, but not the long-term.

15. Structured decisions and unstructured decisions

ANS =Unstructured Decisions: At the other end of the continuum are unstructured
decisions. While these have the same components as structured ones—data,
process, and evaluation—there is little agreement on their nature. With
unstructured decisions, for example, each decision maker may use different data
and processes to reach a conclusion. In addition, because of the nature of the
decision, there may only a limited number of people within the organization
qualified to evaluate the decision.
Structured Decisions: Structured or Programmed decisions are the ones where the
organization has already faced such decisions. And the employees are used to
solving such problems. For instance the hiring of new IT specialists in a firm.
Many analysts categorize decisions according to the degree of structure involved in
the decision-making activity. Business analysts describe a structured decision as
one in which all three components of a decision – the data, process, and evaluation
are determined. Since structured decisions are made on a regular basis in business
environments, it makes sense to place a comparatively rigid framework around the
decision and the people making it.

16. Tacit knowledge and explicit knowledge

ANS = Tacit and explicit are two different types of knowledge. Knowing the
differences between these two different types of knowledge is a step in the
direction of knowledge management. This is because of the fact that you deal with
knowledge gained from a document in a different manner than the knowledge that
you gain by practical experience. There are differences between tacit and explicit
knowledge that will be outlined in this article.
Explicit Knowledge
Explicit knowledge is a knowledge that is obtained with the help of written
documents that have been codified. This type of knowledge can be easily stored
and transmitted from one place to another and from one person to another. This
knowledge is easy to retrieve from media and the encyclopedias present interesting
examples of this type of knowledge. The challenge with explicit knowledge lies in
storing and updating so that it is available to everyone whenever they need it.
Tacit Knowledge
Tacit knowledge is the opposite of formal or codified knowledge. One cannot
easily transfer it to another person by writing it down or by means of words. The
ability to make use of a difficult computer language or the ability to expertly use
complex machinery is a knowledge that is not written or codified. It is through
contact and interaction that tacit knowledge can be passed to other people. If you
know how to ride a bike or swim, you cannot tell in words another person how to
do these activities. It is only through physical coaching that you can make another
person learn how to ride a bicycle or to swim.
What is the difference between Tacit and Explicit Knowledge?
• Tacit knowledge is carried in mind, and it is difficult to be transferred to others
through spoken words or by writing.
• Explicit knowledge is a knowledge that is formal and codified or written to be
easily stored and transferred to other people.
• In explicit knowledge, there is a mechanism for transfer while there is no such
mechanism in tacit knowledge.
• Ability to swim or to ride a bicycle is an example of tacit knowledge that cannot
be taught or transferred through written words or by speaking.
• Documents, journals, procedures etc. are examples of explicit knowledge.