Date Received:.....................

Date Returned:.....................

Programme
Module Name

Bachelor of Commerce
Special Assignment
Business Information Systems

Surname

Paulus

First Name(s)

Selma

Student Number

CIBM2120381

Date Submitted
Postal Address

04/10/13
P.O. Box 63375
Namibia

Email Address

Selampaulus43@yahoo.com

Contact Numbers

Cell: +264 81 286 8445

Alternate Contact:

Lukas Shinana
Husband
+264 81 376 0146

I hereby confirm that the assignment submitted herein is my own original work.

Signature of Student:Selma Paulus....................Date: 04/10/13.

Table of Contents
Question One .................................................................................................................. 3
1.1 Difference between a LAN & a WAN and how WIMAX can help improve
networking ................................................................................................................... 3
1.2 The five information functions ................................................................................ 4
1.3 The concept of software bundles or suites and the advantages software suites
offer as compared to standalone software ................................................................... 4
Question Two .................................................................................................................. 6
2.1 Primary Value chain activities ................................................................................ 6
2.2 Facebook: Electronic Bulletin Board ...................................................................... 6
2.3 Electronic Funds Transfer ...................................................................................... 7
Question Three ............................................................................................................... 8
3.1 E-commerce business models ............................................................................... 8
3.2 Three types of extranets ........................................................................................ 8
3.3 Modelling tools to provide a graphic presentation of a system .............................. 8
3.4 The Systems Development Life Cycle ................................................................... 9
References .................................................................................................................... 13

Question One
1.1 Difference between a LAN & a WAN and how WIMAX can help improve
networking
LAN (Local Area Network) is a computer network covering a small geographic area, like
a home, office, school, or group of buildings whereas WAN (Wide Area Network) is a
computer network that covers a broad area (e.g., any network whose communications
links cross metropolitan, regional, or national boundaries over a long distance).

LAN tends to use certain connectivity technologies, primarily Ethernet and Token
Ring while WANs tend to use technologies like MPLS, ATM, Frame Relay and
X.25 for connectivity over longer distances.

In terms of connection, one LAN can be connected to other LANs over any
distance via telephone lines and radio waves. Computers connected to a widearea network are often connected through public networks, such as the
telephone system. They can also be connected through leased lines or satellites.

LANs tend to have fewer problems associated with them, as there are smaller
numbers of systems to deal with whereas WANs tend to be less fault tolerant as
they consist of large number of systems.

There are a number of advantages on use WiMAX; moreover the most important is the
combination of low cost and flexibility. WiMAX broadband networks can be quickly built
at relatively low cost by installing few wireless base stations providing coverage to the
surrounding area with multifunctional application: high-speed Internet, telephone
service, voice and data transfer, and video applications.
WiMAX enables high-speed voice and data transfer over long distances in remote and
scarcely populated areas, as well as in densely populated areas. The wireless
connectivity is not affected by the weather conditions and does not need direct line in
order to work; it allows real access to end users through its own infrastructure.

1.2 The five information functions

Acquisition: Acquisition is a process of capturing data about an event that is important
to the organisation. Capturing is done by the people component.
Processing: Is a computer activity that manipulates and organises information in ways
that are understandable to the end users. Processing can take raw data and manipulate
it into useful arranged information. Processing depends on the hardware quality of the
organisation's computer infrastructure.
Storage and retrieval: Information needs to be stored temporarily or permanently.
Temporary storage is usually done during processing where information accumulates
and gets used until all data is captured. Permanent storage is done on computer hard
disks so that it can be retrieved in the future for other future uses.
Presentation: This is a way of showing information to the end user in a format that is
organised. Presentations can be created using different program software like Microsoft
PowerPoint.
Transmission: Information may need to be shares be it within the company or with
suppliers and customers. The transmission function enables information to be sent to
various locations intended by the organisation. This can be via email, intranet, extranets
etc.
1.3 The concept of software bundles or suites and the advantages software suites
offer as compared to standalone software
A software suite is a collection of computer programs, which shares a common user
interface and one with the ability to share data with each other. One of the most
common software suites is Microsoft office.
The main benefit of software suites is in the integration of some data sets between the
programs. While most software will be able to cut and paste different sets of data fairly
easily, software suites take it a step further. Often, the data will retain any other
information, such as formatting and any other embedded information. While it may not

be guaranteed to carry over, it will in most cases. This may be harder to accomplish, if
not impossible, among completely non-related programs.
The other benefit of software suites is the cost savings that often come with purchasing
the programs in a bundle. To purchase each program individually would likely cost
much more. Depending on which suite is used, the programs included can be anywhere
from two programs to more than five.
It should be noted that while purchasing the software titles bundled in a suite is a much
more cost effective method than purchasing them standalone, they may not all be
needed. In most cases, all titles in a software suite are usually available separately.

Question Two
2.1 Primary Value chain activities
The value chain model highlights specific activities in the business where competitive
strategies can best be applied (Laudon & Laudon, 2010) and where information
systems are most likely to have a strategic impact. This model identifies specific, critical
leverage points where a firm can use information technology most effectively to
enhance its competitive position. The value chain model views the firm as a series or
chain of basic activities that add a margin of value to a firms products or services.
These activities can be categorized as either primary activities or support activities.
Primary activities are most directly related to the production and distribution of the firms
products and services, which create value for the customer. Primary activities include
inbound logistics, operations, outbound logistics, sales and marketing, and service.
Inbound logistics includes receiving and storing materials for distribution to production.
Operations transforms inputs into finished products. Outbound logistics entails storing
and distributing finished products. Sales and marketing includes promoting and selling
the firms products. The service activity includes maintenance and repair of the firms
goods and services
Information systems can be used at each stage of the value chain to improve
operational efficiency, lower costs, improve profit margins, and forge a closer
relationship with customers and suppliers. Organizations can use information systems
to help examine how value-adding activities are performed at each stage of the value
chain. Information systems can improve the relationship with customers (customer
relationship management systems) and with suppliers (supply chain management
systems) who may be outside the value chain but belong to an extended value chain.
Information systems can help businesses track benchmarks in the organization and
identify best practices of their particular industries.
2.2 Facebook: Electronic Bulletin Board
Electronic bulletin boards (also known as message boards or computer forums) are
communication systems online where one can share, request, or discuss information on
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just about any topic. For example on Facebook any message posted on one's "WALL"
can be read (and responded to) by anyone else in the world who has access to the
Internet or the particular online service that is providing the message board.
Electronic bulletin boards operate in a very simple manner. On Facebook, any person
can start a discussion on a particular topic and then wait for replies. These lines of
discussion are known as threads. Some threads can go on endlessly, while other posts
run the risk of getting no replies at all. The longer threads tend to find people
responding to not only the original post, but to the subsequent replies as well. This can
often lead to some confusion, since later posts in longer threads often have nothing to
do with the original subject.
2.3 Electronic Funds Transfer
Electronic Funds Transfer (EFT) is a system of transferring money from one bank
account directly to another without any paper money changing hands. Transactions are
processed by the bank through the Automated Clearing House (ACH) network, the
secure transfer system that connects all financial institutions. For payments, funds are
transferred electronically from one bank account to the billing company's bank, usually
less than a day after the scheduled payment date. It is used for both credit transfers,
such as payroll payments, and for debit transfers, such as mortgage payments.

Question Three
3.1 E-commerce business models
Business-to-consumer (B2C) electronic commerce involves retailing products and
services to individual shoppers. BarnesandNoble.com, which sells books, software, and
music to individual consumers, is an example of B2C e-commerce
Business-to-business (B2B) electronic commerce involves sales of goods and services
among businesses. ChemConnects Web site for buying and selling chemicals and
plastics is an example of B2B e-commerce.
Consumer-to-consumer (C2C) electronic commerce involves consumers selling directly
to consumers. For example, eBay, the giant Web auction site, enables people to sell
their goods to other consumers by auctioning their merchandise off to the highest
bidder, or for a fixed price.
3.2 Three types of extranets
Virtual private network (VPN): A secure, encrypted, private network that has been
configured within a public network to take advantage of the economies of scale and
management facilities of large networks, such as the Internet.
Secure Private Networks: An extranet can also be set up as SPN by physically
attaching the intranets with private, leased telephone lines.
Public Network: By using a public communications network such as a public utility
telecommunication network or the internet, an extranet may be set up.
3.3 Modelling tools to provide a graphic presentation of a system
Data flow Diagram
The primary tool for representing a systems component processes and the flow of data
between them is the data flow diagram (DFD). The data flow diagram offers a logical
graphic model of information flow, partitioning a system into modules that show
manageable levels of detail. It rigorously specifies the processes or transformations that
occur within each module and the interfaces that exist between them.
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System flowchart
A flowchart is a type of diagram that represents an algorithm or process, showing the
steps as boxes of various kinds, and their order by connecting them with arrows. This
diagrammatic representation illustrates a solution to a given problem.
Data dictionary
A data dictionary, or metadata repository, is a centralized repository of information
about data such as meaning, relationships to other data, origin, usage, and format.
Decision tables
Decision tables are a precise yet compact way to model complicated logic. Decision
tables associate conditions with actions to perform, but in many cases do so in a more
elegant way. Each decision corresponds to a variable, relation or predicate whose
possible values are listed among the condition alternatives. Each action is a procedure
or operation to perform, and the entries specify whether (or in what order) the action is
to be performed for the set of condition alternatives the entry corresponds to.
Computer-aided software engineering (CASE)
Provides software tools to automate the methodologies we have just described to
reduce the amount of repetitive work the developer needs to do.
3.4 The Systems Development Life Cycle
The systems development lifecycle (SDLC) illustrates the process of system
development broken down into key phases. The key phases identified in REGENT
(2006: 133) include investigation, analysis, design, development, implementation,
maintenance and retirement.
Investigation
The investigation phase is about finding out the unknown. A problem should exist to
prompt the need for systems development. The problem is defined by examining the
current system and compare against company requirements, any discrepancy between
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desired and current system need to be addressed. However, it should be feasible to

improve or replace the current system thus the systems analyst checks for technical,
economic, operational and organisational feasibility of the envisaged development.
Analysis
The aim of the systems analysis process is to create an information model derived from
evidence from the requirements stage on which the information design can be based,
meeting the needs of both the business and the end-user. Fisher (2003) outlines the
process of creating an information model moving from less well defined information
requirements to a rationalized and optimized definition of these needs. The
requirements of each subsystem of the proposed system like input/output, processing,
storage and control requirements.
Design
The design phase is a complex and critical step in determining which system design,
based on systems engineering and technology analysis, meets the user and system
requirements. For non-technical solutions, the design may simply be a support process
to be implemented over time. The design may be presented as several options with
trade-off analysis or a specific configuration, and may consist of Commercial-off-theshelf (COTS) products (preferred approach) or customized development. Procurement
options and cost information should be identified as determined by resource
requirements and the design. The most significant milestone in this phase is the
recommendation of what to do or buy in order to meet the user and system
requirements.
Development
The development phase is the execution of the approved design and in some cases
may blend into the implementation phase. A smaller test system is sometimes a good
idea in order to get a proof-of-concept validation prior to committing funds for large
scale fielding of a system without knowing if it really works as intended by the user. The
validation, verification, and testing plan should drive the system testing and be
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conducted against the system/data and technical requirements to ensure the system is
built to specification. System testing should also be conducted against the user
requirements to ensure the system is operationally satisfactory. The prototype or pilot
concept also allows for refinements or adjustments based on user feedback prior to a
larger scale implementation. The key output of this phase is validation of the design
prior to full commitment.
Implementation
Implementation includes all necessary activity to procure, receive, configure, and install
the new or revised system. For non-technical solutions, implementation may be limited
to a new support process requiring a change in the business process. A transition or
cut-over plan, including any required data conversion, will also be required to ensure a
smooth transition to the new system without interrupting services. The development of
appropriate documentation, such as manuals for operations and maintenance, are
required for successful transition. The impact of running old and new systems
simultaneously should also be analyzed to determine if there would be excessive
burden in operating expenses or personnel support. The key output of this phase is a
successful transition to the new system with uninterrupted service.
Maintenance
The maintenance phase is a dedicated effort to keep the system operating at an
optimum level by conducting maintenance and enhancements as determined by
periodic reviews. For non-technical solutions, maintenance may be the continuation of a
support process. Maintenance may also include changes to the system based on
technology advancement and can be addressed through system enhancements or
redesign initiatives.
Retirement
This phase comes when the system cannot be readjusted or maintained anymore. At
that point a new system needs to be developed and a new cycle begins. This is where
the system has become obsolete. Whatever the reason, putting the system to bed
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involves more than just shutting off the server. Often, the system may be kept going due
to regulatory issues or because there are still projects using it. Even if the system will be
shut down due to the development of a better system, retirement needs planning.

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References
Faulconbridge, R. I. and Ryan, M.J. (2003). Managing Complex Technical Projects: A
Systems Engineering Approach. London: Artech House.
Heagny, J. (2012). Fundamentals of Information systems. 4th Edition. New York:
American Management Association.
REGENT (2006). Business Information Sytems. Study Guide. Durban: Management
College of Southern Africa.
Porter, P (1985). A guide to the generic strategies. New York: McGraw Hill
Schwalbe, K. (2009). Introduction to Accounting Information systems. 2nd Edition.
Boston: Cengage Learning

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