Knowledge Management and Information Systems: Freakomon Analysis
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AI Summary
This report examines the principles of knowledge management and information systems within the context of the gaming company, Freakomon. It begins with an executive summary and then delves into the importance of relationship management, emphasizing stakeholder engagement and the significance of a well-defined management structure. The report then applies Porter's Five Forces model to analyze Freakomon's competitive environment, evaluating rivalry, buyer and supplier power, the threat of new entrants, and the threat of substitution. Furthermore, the report explores the impact of information systems on Freakomon, highlighting their strategic significance for achieving a competitive advantage, and provides recommendations centered on the value chain and strategic approaches such as cost leadership and differentiation.

Knowledge
Management and
Information Systems
Management and
Information Systems
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
EXECUTIVE SUMMARY.............................................................................................................3
B.............................................................................................................................................3
C.............................................................................................................................................1
D.............................................................................................................................................3
PART 2 ...........................................................................................................................................5
A.............................................................................................................................................5
B.............................................................................................................................................5
C............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENVCES..............................................................................................................................9
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
EXECUTIVE SUMMARY.............................................................................................................3
B.............................................................................................................................................3
C.............................................................................................................................................1
D.............................................................................................................................................3
PART 2 ...........................................................................................................................................5
A.............................................................................................................................................5
B.............................................................................................................................................5
C............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENVCES..............................................................................................................................9

INTRODUCTION
The system or the mechanism used for sharing, creating, using and managing the
knowledge and information and database of the business organization and this concept can be
utilised in the attainment of the organizational objectives and this also utilizes and makes the best
use of the information and this process and methods can be named as a multi-disciplinary
approach (Wasko and Faraj, 2005). The above stated mechanism can be used by the business
managements and administration and information systems in the firms, schools, library's etc. The
efforts made by this system are mainly focused on the organizational objectives such as
innovation, competitive advantage, improved performance etc. The present scenario is analysed
on Freakomon which a well established brand name and a developer of an unconventional
gaming console. The below carried out analysis is focused on the evaluation of the competitive
environment and further ways in the improvements the company's strategic position (Ko, Kirsch
and King, 2005). Moreover the use of cloud computing in the expansion and making the business
organization larger in comparison.
The system or the mechanism used for sharing, creating, using and managing the
knowledge and information and database of the business organization and this concept can be
utilised in the attainment of the organizational objectives and this also utilizes and makes the best
use of the information and this process and methods can be named as a multi-disciplinary
approach (Wasko and Faraj, 2005). The above stated mechanism can be used by the business
managements and administration and information systems in the firms, schools, library's etc. The
efforts made by this system are mainly focused on the organizational objectives such as
innovation, competitive advantage, improved performance etc. The present scenario is analysed
on Freakomon which a well established brand name and a developer of an unconventional
gaming console. The below carried out analysis is focused on the evaluation of the competitive
environment and further ways in the improvements the company's strategic position (Ko, Kirsch
and King, 2005). Moreover the use of cloud computing in the expansion and making the business
organization larger in comparison.
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PART 1
EXECUTIVE SUMMARY
From the above discussion made in the project I have observed that it is very important
for any company who has been entering into the market of business to analysis all the important
aspects of marketing. In the above project, a remarkable discussion has been made on Koter's 5
force which will include the power of a supplier and the power of a buyer. These two forces are
considered as the most important essential element in a company. To understand knowledge
management better a very fine example of Freakomon has been given which is a company deal
with graphics and sound of video system. The example had created a better understanding about
various market forces. As per the case scenario the Ryotaro Kurosawa who is the president of
The Freakomon company he was tremendously excited with what his engineers had just
demonstrated a video game controller that was not a variation of the joystick. Expanding the
gaming industry’s customer base was key to Kurosawa’s vision of a next generation console.
B
The relationships are to be considered as the asset for the business organizations and by
making an effectively the relationship with the increasing opportunities minimizing the risks
which ascertained with each of the relationships, the overall valuation of the business activities
an the organization can be increased by the enhancement of the intangible asset of the company
(Levina and Vaast, 2005). Maintaining and managing the relationship of the stakeholders is a
crucial task and it is an important one and can be done by the implementation of the following
principles such as integrity, authenticity and engagement. For instance the consumers wants,
demands and deserve higher level of consumer experience and also it is defined by them only.
Frekomon has proved by providing a better graphics experience to the consumers at a very
reasonable range. Moreover the employees are being appreciated regularly by the management
team and the seniors and many welfare and incentive schemes have been planned by the
organization.
EXECUTIVE SUMMARY
From the above discussion made in the project I have observed that it is very important
for any company who has been entering into the market of business to analysis all the important
aspects of marketing. In the above project, a remarkable discussion has been made on Koter's 5
force which will include the power of a supplier and the power of a buyer. These two forces are
considered as the most important essential element in a company. To understand knowledge
management better a very fine example of Freakomon has been given which is a company deal
with graphics and sound of video system. The example had created a better understanding about
various market forces. As per the case scenario the Ryotaro Kurosawa who is the president of
The Freakomon company he was tremendously excited with what his engineers had just
demonstrated a video game controller that was not a variation of the joystick. Expanding the
gaming industry’s customer base was key to Kurosawa’s vision of a next generation console.
B
The relationships are to be considered as the asset for the business organizations and by
making an effectively the relationship with the increasing opportunities minimizing the risks
which ascertained with each of the relationships, the overall valuation of the business activities
an the organization can be increased by the enhancement of the intangible asset of the company
(Levina and Vaast, 2005). Maintaining and managing the relationship of the stakeholders is a
crucial task and it is an important one and can be done by the implementation of the following
principles such as integrity, authenticity and engagement. For instance the consumers wants,
demands and deserve higher level of consumer experience and also it is defined by them only.
Frekomon has proved by providing a better graphics experience to the consumers at a very
reasonable range. Moreover the employees are being appreciated regularly by the management
team and the seniors and many welfare and incentive schemes have been planned by the
organization.
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If there is not proper implementation of the task and the allotted work then it is the doubt
on the management. So it is necessary and essential for the organization to have a proper
management or the Board management as stated above in the diagram. The following are the
components or the factors of the management structure and also the relationship of the
stakeholders. Contextual stakeholders comprises of the government media, activists,
communities, and the agencies. Supply stakeholders contains the employees, suppliers and the
contractors. Demand stakeholders are the consumers and the distributors and last are the
financial stakeholders such as shareholders.
C
The concept of porter's five force is a structural framework which helps and aids in
analysing the level or pace of competition within an organization and business strategy
development. By making the use of this model, competitor analysis takes place by understanding
how the threats of new entrants, the bargaining powers of buyers, bargaining power of supplier,
the threat of substitute products and the rivalry among the competing firms will effect the
competitors in the industry (Borghoff and Pareschi, 2013). These five force have a direct effect
on the strategies of Frekomon competitiveness. They provide creative and innovative games for
their customers. Because the organisation existing product was successful. Apart form that they
have different suppliers which are supplying the various components to them. It is a cost
on the management. So it is necessary and essential for the organization to have a proper
management or the Board management as stated above in the diagram. The following are the
components or the factors of the management structure and also the relationship of the
stakeholders. Contextual stakeholders comprises of the government media, activists,
communities, and the agencies. Supply stakeholders contains the employees, suppliers and the
contractors. Demand stakeholders are the consumers and the distributors and last are the
financial stakeholders such as shareholders.
C
The concept of porter's five force is a structural framework which helps and aids in
analysing the level or pace of competition within an organization and business strategy
development. By making the use of this model, competitor analysis takes place by understanding
how the threats of new entrants, the bargaining powers of buyers, bargaining power of supplier,
the threat of substitute products and the rivalry among the competing firms will effect the
competitors in the industry (Borghoff and Pareschi, 2013). These five force have a direct effect
on the strategies of Frekomon competitiveness. They provide creative and innovative games for
their customers. Because the organisation existing product was successful. Apart form that they
have different suppliers which are supplying the various components to them. It is a cost

effective method because if they manufacture the gaming components in their company it can
increase the cost of production. On the other hand the entry in this industry is not easy for a
company. And there are few company like Sony and Microsoft. But their platforms are different
from Freakomon. To analyses the competitive advantage of the company. The Porter's five force
model can be used. There are the explanation about this approach in the context of this company:
Rivalry with Existing competitors – The concept is concerned with the number and
capability of the company. In this term the above stated company need to position its image as a
cost leader . And if the competitors provide or offer equally attractive products and services and
schemes then there is a chance of going buyers and suppliers will go elsewhere if they don't get a
good deal from the company. On the other hand, if no-one else can do what Frekomon is doing,
then the business organization can often have tremendous strength (Haux, 2006).
Bargaining power of buyers - This is one of the most influencing factor in this concept
and these are the main characters who are liable and capable in driving the prices of the products
and services. These buyers can reduce the cost leader prices but nor pass the level of the closest
competitor. This ensures that Frekomon will continue to earn the profit at above average return
to its closest competitor. Moreover the bargaining powers are considered as the and also
described as the market outputs and this ability of the consumers to make the company
pressurize and also effects the sensitivity of the buyers to the changes in the prices. The company
have to reduces the price of their products. To reduces this force company follows various
strategies and tactics to maintain their profitability (Yew Wong and Aspinwall, 2005). The
company main strategy is to launch hardware of the games at lower cost and selling the software
at a higher price do that they can maintain their profitability level. It also helps to reduces the
bargaining power of the customers. This force affects the company al the lower scale.
Bargaining power of the suppliers – The Suppliers are also to be considered as an
another powerful factor in influencing the the business activities of the stated organization.
Frekomon could hold the suppliers cost down and it could make a profit even when competitors
are making only average return. Market inputs are considered as the bargaining powers of the
suppliers Suppliers of raw materials, components, labour, and services such as expertise to the
firm can be a source of power over the firm when there are few substitutes. The suppliers in this
company are the manufacturers of the computers, spare-parts and the other essentials required in
developing a game (Kulkarni, Ravindran and Freeze, 2006). And if there is a poor
increase the cost of production. On the other hand the entry in this industry is not easy for a
company. And there are few company like Sony and Microsoft. But their platforms are different
from Freakomon. To analyses the competitive advantage of the company. The Porter's five force
model can be used. There are the explanation about this approach in the context of this company:
Rivalry with Existing competitors – The concept is concerned with the number and
capability of the company. In this term the above stated company need to position its image as a
cost leader . And if the competitors provide or offer equally attractive products and services and
schemes then there is a chance of going buyers and suppliers will go elsewhere if they don't get a
good deal from the company. On the other hand, if no-one else can do what Frekomon is doing,
then the business organization can often have tremendous strength (Haux, 2006).
Bargaining power of buyers - This is one of the most influencing factor in this concept
and these are the main characters who are liable and capable in driving the prices of the products
and services. These buyers can reduce the cost leader prices but nor pass the level of the closest
competitor. This ensures that Frekomon will continue to earn the profit at above average return
to its closest competitor. Moreover the bargaining powers are considered as the and also
described as the market outputs and this ability of the consumers to make the company
pressurize and also effects the sensitivity of the buyers to the changes in the prices. The company
have to reduces the price of their products. To reduces this force company follows various
strategies and tactics to maintain their profitability (Yew Wong and Aspinwall, 2005). The
company main strategy is to launch hardware of the games at lower cost and selling the software
at a higher price do that they can maintain their profitability level. It also helps to reduces the
bargaining power of the customers. This force affects the company al the lower scale.
Bargaining power of the suppliers – The Suppliers are also to be considered as an
another powerful factor in influencing the the business activities of the stated organization.
Frekomon could hold the suppliers cost down and it could make a profit even when competitors
are making only average return. Market inputs are considered as the bargaining powers of the
suppliers Suppliers of raw materials, components, labour, and services such as expertise to the
firm can be a source of power over the firm when there are few substitutes. The suppliers in this
company are the manufacturers of the computers, spare-parts and the other essentials required in
developing a game (Kulkarni, Ravindran and Freeze, 2006). And if there is a poor
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communication and loose connection in the relationship with the company then there can be
chances of improper supply. They can increase the goods price accordingly. On the other hand if
there are more suppliers in the industry. It means the bargaining power of the suppliers are
limited. So that they can not change the price of the products accordingly. In this gaming
industry it is a type of monopoly industry there are limited manufacturer. But the big giant firms
like Sony and Microsoft they have large amount of capital are not affected by this force. Because
they manufacturing all their gaming component in the company only. But of the company like
Freakomon they supplied their gaming materials from various suppliers. And there are limited
suppliers are avail in the market. Therefore the bargaining power of suppliers are more and they
are easily control the price of the gaming components.
Potential entrants - Frekomon must continue to reduce the cost below that of
competitors. The organization can help to make the entrance into the industry to its potential
competitors by maintaining the level of high efficiency. Power is also affected by the ability of
people to enter your market (Power, Sharda and Burstein, 2015). If it costs little in time or
money to enter the market and compete effectively, if there are few economies of scale in place,
or if they have little protection for the key technologies, then new competitors can quickly enter
the present market and weaken the company's position. There are various sectors where a new
company can easily enter on the other hand there are various market which have monopoly in the
market. There are various entry barriers which are create problem to the company. These market
requires a large amount of capital, technological expertise and experience. Therefore a new
company can not easily enter in these markets. In the console gaming industry it is not easy for a
new firms to inter in the market. Freakomon is one of the leading and more experienced
company in this sector
Threat of Substitution: The business organization faces a low threat of product
substitutes. Substitute to be produced at a lower rate by the use of the economy of scale, their
buying power and their absorption of temporary price increases that come from the supplier that
do not need to be passed to the consumer. This is affected by the ability of the customers to find
a different way of doing what the company do, for example, if the supply a unique software
product that automates an important process, people may substitute by doing the process
manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens
the organizational power (Kim and Lee, 2006).
chances of improper supply. They can increase the goods price accordingly. On the other hand if
there are more suppliers in the industry. It means the bargaining power of the suppliers are
limited. So that they can not change the price of the products accordingly. In this gaming
industry it is a type of monopoly industry there are limited manufacturer. But the big giant firms
like Sony and Microsoft they have large amount of capital are not affected by this force. Because
they manufacturing all their gaming component in the company only. But of the company like
Freakomon they supplied their gaming materials from various suppliers. And there are limited
suppliers are avail in the market. Therefore the bargaining power of suppliers are more and they
are easily control the price of the gaming components.
Potential entrants - Frekomon must continue to reduce the cost below that of
competitors. The organization can help to make the entrance into the industry to its potential
competitors by maintaining the level of high efficiency. Power is also affected by the ability of
people to enter your market (Power, Sharda and Burstein, 2015). If it costs little in time or
money to enter the market and compete effectively, if there are few economies of scale in place,
or if they have little protection for the key technologies, then new competitors can quickly enter
the present market and weaken the company's position. There are various sectors where a new
company can easily enter on the other hand there are various market which have monopoly in the
market. There are various entry barriers which are create problem to the company. These market
requires a large amount of capital, technological expertise and experience. Therefore a new
company can not easily enter in these markets. In the console gaming industry it is not easy for a
new firms to inter in the market. Freakomon is one of the leading and more experienced
company in this sector
Threat of Substitution: The business organization faces a low threat of product
substitutes. Substitute to be produced at a lower rate by the use of the economy of scale, their
buying power and their absorption of temporary price increases that come from the supplier that
do not need to be passed to the consumer. This is affected by the ability of the customers to find
a different way of doing what the company do, for example, if the supply a unique software
product that automates an important process, people may substitute by doing the process
manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens
the organizational power (Kim and Lee, 2006).
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D
The information transformation and revolution is change the working concept in the
companies. No one company escape this efforts. There are various advantage of information
system in the company. It involves reduction in the cost of production, processing and
transferring the products and services to the end users. If a company can use effectively a
information system it can leads to the competitive advantage to them. It not just a computer, it is
more than that. It helps to data and information recognition, communication technology,
automation in the production process and other hardware and software. An information system
and technology are the strategic significance for Freakomon (Power, Sharda and Burstein,
2015). It can create and develop a competitive superiority over their competitors. It is changing
the way where the company operate. It is influence the overall process of the company. Form
producing a product to the end customers. The recommendation which can helps to the company
so that it can get the competitiveness in the market. Value chain is important for the company. In
this approach company divides their activities in the technological ans economical activities.
These all activities are known as value activities (Melville, 2010). If the value chain of the
company is more effective it helps to develop the competitive advantage of the company. To
make an effective value chain it is important for the company to make and implement their
strategies accordingly. So that they can achieve their goals and objectives in a more attractive
manner. There are various strategies which helps to take competitive advantage over their
competitors. These strategies involves low cost strategy, differentiation, and and focus. It is also
important that to required appropriate information so that they can make their decisions (Riege,
2005).
Marketing and promotional activities are also important to promote their products more
effective. Information technology help to make these promotional strategies more effective in
terms of attractiveness and cost. To collecting these information a company can use online
market survey of there target market. Freakomon requires that design their products according to
their needs of their customers. Once a product is ready for the test marketing the company can
use the different promotional tools. So that the customer can aware about their products. The
social media is an important platform which can be used by the company to promote their
products. The social media involves Facebook, You Tube, Instagram, Twitter and other
The information transformation and revolution is change the working concept in the
companies. No one company escape this efforts. There are various advantage of information
system in the company. It involves reduction in the cost of production, processing and
transferring the products and services to the end users. If a company can use effectively a
information system it can leads to the competitive advantage to them. It not just a computer, it is
more than that. It helps to data and information recognition, communication technology,
automation in the production process and other hardware and software. An information system
and technology are the strategic significance for Freakomon (Power, Sharda and Burstein,
2015). It can create and develop a competitive superiority over their competitors. It is changing
the way where the company operate. It is influence the overall process of the company. Form
producing a product to the end customers. The recommendation which can helps to the company
so that it can get the competitiveness in the market. Value chain is important for the company. In
this approach company divides their activities in the technological ans economical activities.
These all activities are known as value activities (Melville, 2010). If the value chain of the
company is more effective it helps to develop the competitive advantage of the company. To
make an effective value chain it is important for the company to make and implement their
strategies accordingly. So that they can achieve their goals and objectives in a more attractive
manner. There are various strategies which helps to take competitive advantage over their
competitors. These strategies involves low cost strategy, differentiation, and and focus. It is also
important that to required appropriate information so that they can make their decisions (Riege,
2005).
Marketing and promotional activities are also important to promote their products more
effective. Information technology help to make these promotional strategies more effective in
terms of attractiveness and cost. To collecting these information a company can use online
market survey of there target market. Freakomon requires that design their products according to
their needs of their customers. Once a product is ready for the test marketing the company can
use the different promotional tools. So that the customer can aware about their products. The
social media is an important platform which can be used by the company to promote their
products. The social media involves Facebook, You Tube, Instagram, Twitter and other

platforms (Lee, Lee and Kang, 2005). These all platforms are more appropriate and cost effective
for the company.
PART 2
A
CLOUD COMPUTING
Cloud computing is the practice of using the networks so that the employees of
Freakomon can remote the servers which can be hosted on the internet to store, manage and
process data rather than the local server or the personal computer (Petter, Straub and Rai, 2007).
The concept is concerned with storing or assessing the data or information over the internet of
the hard drive of the computers. The company members have to make the flowcharts and the
presentation so that they represent the server farm infrastructure which helps in accepting the
connections and also doling out the data as it flows. There are lines between the local computing
and the cloud computing as the cloud is the part of everything on the computers which are
having a local piece of software (Ruggles, 2009). Appynation is the large firm who develops the
games in UK. This company provides innovative and advance technology which have also
provides the platforms for the games to their consumers. This task defines the key challenges for
introducing better system for Consumer relationship system. Along with this the manger should
respond so that the impact of the challenges can be reduced and should be discussed and have to
use the assumptions and strength so that the challenges can be reduces which is to be discussed
(Black, Clemmensen and Skov, 2010). Moreover the Cloud computing is probably the most cost
efficient method to use, maintain and upgrade. This software has minimised the IT expenses of
Freakomon to a great extent. There are many options available for example one-time-payment,
pay-as-you-go and other scalable options are also available, which makes it very reasonable for
the business company.
B
KEY CHALLENGES FOR INTRODUCTION OF CLOUD COMPUTING
Appynation have to use the three key challenges so that they can introduce the cloud
based to Customer Relationship System (Staab and Studer, 2013). Along with this the challenges
can occur in the various aspects that are the management, technology etc.
for the company.
PART 2
A
CLOUD COMPUTING
Cloud computing is the practice of using the networks so that the employees of
Freakomon can remote the servers which can be hosted on the internet to store, manage and
process data rather than the local server or the personal computer (Petter, Straub and Rai, 2007).
The concept is concerned with storing or assessing the data or information over the internet of
the hard drive of the computers. The company members have to make the flowcharts and the
presentation so that they represent the server farm infrastructure which helps in accepting the
connections and also doling out the data as it flows. There are lines between the local computing
and the cloud computing as the cloud is the part of everything on the computers which are
having a local piece of software (Ruggles, 2009). Appynation is the large firm who develops the
games in UK. This company provides innovative and advance technology which have also
provides the platforms for the games to their consumers. This task defines the key challenges for
introducing better system for Consumer relationship system. Along with this the manger should
respond so that the impact of the challenges can be reduced and should be discussed and have to
use the assumptions and strength so that the challenges can be reduces which is to be discussed
(Black, Clemmensen and Skov, 2010). Moreover the Cloud computing is probably the most cost
efficient method to use, maintain and upgrade. This software has minimised the IT expenses of
Freakomon to a great extent. There are many options available for example one-time-payment,
pay-as-you-go and other scalable options are also available, which makes it very reasonable for
the business company.
B
KEY CHALLENGES FOR INTRODUCTION OF CLOUD COMPUTING
Appynation have to use the three key challenges so that they can introduce the cloud
based to Customer Relationship System (Staab and Studer, 2013). Along with this the challenges
can occur in the various aspects that are the management, technology etc.
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One of the biggest challenge for the organization is that they includes the lack of trust or
the confidence in the security of the data and the information. Along with this they have to make
the privacy by the users in the organisational inertia, loss of governance and the uncertain
compliance to the providers. Trust is the main factor in which resistance that they are having the
many consumers so that they have the cloud. Cultural resistance is to be used so that they can
share the data and also have to change the traditional ways so that they can do the proper work
and this is the most common management challenge so that Appynation have to adopt the cloud
computing. The company have to make the agreement that they not give the offer to make a
commitment so that they can allow the client in auditing the data and information. In this
consumer services can not be used for example :- credit card transactions. The service quality
can be considered as one of the most significant factors that businesses consider as a reason for
not moving their business applications to this concept. Moreover the business corporations feel
as though the SLAs provided by the cloud providers today are not adequate to assure the
requirements for running a production application on the cloud, especially those related to
availability, performance and scalability.
(Ruggles, 2009).
In the company some technical issues can be found which is related to the use of cloud
computing which includes the resource exhaustion, unpredictability of the performance etc. there
re two features of the cloud computing which is related to the demand that is low cost and
computing resources. The market is full of crowd with the large providers as they having the
high competition so that many clouds provide the overcommit computing resources so that they
can attract the consumers (Tanriverdi, 2005). Appynation members have to maintain the profit
and for that they have to cut the corners in the value delivery system. In the technical aspect data
lock is also the important challenge. In this users of the cloud have to move the data or the
services to the another provider because they have to cease the business operations and the
functions. Infrastructure of the cloud provides the capability of the data, application and the
service interoperability. The consumers have to mitigate from one provider to another and also
have to move the data or the services so that they can create the better environment and also
resolve the problems by using the cloud computing.
In the data Appybnation having the risk of the security in the use of information
technology which includes the network breaks, natural disasters, public management interface.
the confidence in the security of the data and the information. Along with this they have to make
the privacy by the users in the organisational inertia, loss of governance and the uncertain
compliance to the providers. Trust is the main factor in which resistance that they are having the
many consumers so that they have the cloud. Cultural resistance is to be used so that they can
share the data and also have to change the traditional ways so that they can do the proper work
and this is the most common management challenge so that Appynation have to adopt the cloud
computing. The company have to make the agreement that they not give the offer to make a
commitment so that they can allow the client in auditing the data and information. In this
consumer services can not be used for example :- credit card transactions. The service quality
can be considered as one of the most significant factors that businesses consider as a reason for
not moving their business applications to this concept. Moreover the business corporations feel
as though the SLAs provided by the cloud providers today are not adequate to assure the
requirements for running a production application on the cloud, especially those related to
availability, performance and scalability.
(Ruggles, 2009).
In the company some technical issues can be found which is related to the use of cloud
computing which includes the resource exhaustion, unpredictability of the performance etc. there
re two features of the cloud computing which is related to the demand that is low cost and
computing resources. The market is full of crowd with the large providers as they having the
high competition so that many clouds provide the overcommit computing resources so that they
can attract the consumers (Tanriverdi, 2005). Appynation members have to maintain the profit
and for that they have to cut the corners in the value delivery system. In the technical aspect data
lock is also the important challenge. In this users of the cloud have to move the data or the
services to the another provider because they have to cease the business operations and the
functions. Infrastructure of the cloud provides the capability of the data, application and the
service interoperability. The consumers have to mitigate from one provider to another and also
have to move the data or the services so that they can create the better environment and also
resolve the problems by using the cloud computing.
In the data Appybnation having the risk of the security in the use of information
technology which includes the network breaks, natural disasters, public management interface.
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This is the specific risk which helps in cloud computing that is separation failure, public
management interface, key management of the poor encryption and privilege abuse. This cloud
computing is accessible to the different consumers (Tanriverdi, 2005). The providers of the
company fails to separate the resources so that they have to cause the various resources and also
cause the serious security risk. By the other consumers hardware resources are to be reused. It is
the core mechanism of strong encryption with the key management and for that they have to use
the system of cloud computing so that they can use to guard against the data which has been lost.
Appynation have to follow the procedure for the poor key management which is the disclosure of
the secret keys or passwords or unauthorized the use for the authentication (Ward and Peppard,
2016). The company have to use the cloud by which they can attain the targets for the criminal
organisation. If the system administrator also attain the privileged so that they can steal the
critical data. The cost of the cloud computing on CRM is another important challenges for the
company. These types of system are costly which is not affordable by each business. These are
various cost related issues involving in this system. These are the cost of hardware, cost of
software. Cost of regular up-gradation and other cost. The hardware cost are one time cost for the
company. But the software are more expensive. Small companies are not capable to buying these
software. Apart form that cloud computing requires the regular update and system up-gradation
which is also expensive. These system more risky and the operations are more complex (Wasko
and Faraj, 2005). These system are used by the large corporation.
Therefore it is important for the company to meet these challenges more effectively and
efficiently. For that the company can also take helps of IT experts. So that a company can
improve their performance and productivity and attain their goals and objectives.
C
REDUCTION OF THE CHALLENGES
It is important for the managers to meet the above challenges and reduces the impact of
these challenges. So that the organisation can work more efficiently. These challenges is required
to overcome as soon as possible. Because it directly impact on the performance and profitability
of the company. The security and privacy of the cloud computing essential for the managers.
These data and information can be hacked the rival firms and to be used for their purpose . It
effects the private information of the customers which is more important. There are various
policies and rules regarding the security of the system (AO'Brien and et.al., 2006). So that it is
management interface, key management of the poor encryption and privilege abuse. This cloud
computing is accessible to the different consumers (Tanriverdi, 2005). The providers of the
company fails to separate the resources so that they have to cause the various resources and also
cause the serious security risk. By the other consumers hardware resources are to be reused. It is
the core mechanism of strong encryption with the key management and for that they have to use
the system of cloud computing so that they can use to guard against the data which has been lost.
Appynation have to follow the procedure for the poor key management which is the disclosure of
the secret keys or passwords or unauthorized the use for the authentication (Ward and Peppard,
2016). The company have to use the cloud by which they can attain the targets for the criminal
organisation. If the system administrator also attain the privileged so that they can steal the
critical data. The cost of the cloud computing on CRM is another important challenges for the
company. These types of system are costly which is not affordable by each business. These are
various cost related issues involving in this system. These are the cost of hardware, cost of
software. Cost of regular up-gradation and other cost. The hardware cost are one time cost for the
company. But the software are more expensive. Small companies are not capable to buying these
software. Apart form that cloud computing requires the regular update and system up-gradation
which is also expensive. These system more risky and the operations are more complex (Wasko
and Faraj, 2005). These system are used by the large corporation.
Therefore it is important for the company to meet these challenges more effectively and
efficiently. For that the company can also take helps of IT experts. So that a company can
improve their performance and productivity and attain their goals and objectives.
C
REDUCTION OF THE CHALLENGES
It is important for the managers to meet the above challenges and reduces the impact of
these challenges. So that the organisation can work more efficiently. These challenges is required
to overcome as soon as possible. Because it directly impact on the performance and profitability
of the company. The security and privacy of the cloud computing essential for the managers.
These data and information can be hacked the rival firms and to be used for their purpose . It
effects the private information of the customers which is more important. There are various
policies and rules regarding the security of the system (AO'Brien and et.al., 2006). So that it is

responsibilities of the company they have to provide the enough and sufficient security to the
cloud system. There are various confidential information to be saved and stored. So that the
different department of the organisation like sales, finance, marketing, and other departments for
their operational and tactical decision making. These information involved Financial data, sales
data, marketing plan and other data which also include the background information about the
customers. If these information can be hacked or theft by the rival organisation it can be miss use
by them. Which is not good for them. Therefore it is significant for the company to make
appropriate security to these information (Yew Wong and Aspinwall, 2005). So that these are
stored and saved for the long time. Another important challenge is to maintaining and
supervision of the cloud system. In the customer relationship management the data is to be used
by the company in various ways. To identifying and analyses the needs and wants of their
customers. So that they can meet the needs of their customers. To maintaining and supervision of
these data the company requires to make a appropriate system for them. They can appoint a team
to effective supervision and maintaining the over all system. So that they can attain their target
on time. Cost is an important factor in cloud computing. Because there are various cost involved
to operating and maintaining this kind of system. These system are not operated by each and
every organisation. Small business unit are not affordable to these system (Ward and Peppard,
2016). Cloud system are to be used by the large organisation. In the small business unit there are
not large number of data on the other hand in multinational corporation have the large number of
data which is to managed, controlled and stored by these system. So that whenever is required a
member of the company can assess these information in the decision making. Therefore the
company have to make this system is more effective and efficient. So that a company can
achieve their organisational goals and objectives (Petter, DeLone and McLean, 2008).
RECOMMENDATIONS
It was suggested that company has to use porters five force model by which company
can analyse the market position. Along with by this model entity can find the competitors in the
market so that they can attain the success in the competition by providing the best products and
services. By this competitors model they can find out the suppliers and buyers and by that they
can produce the product on the basis of requirements of the consumers so that they can attain the
targets and expand the business in the existing market. Company have to use the proper system
and follow the proper structure so that they can attain the success. Along with this by doing the
cloud system. There are various confidential information to be saved and stored. So that the
different department of the organisation like sales, finance, marketing, and other departments for
their operational and tactical decision making. These information involved Financial data, sales
data, marketing plan and other data which also include the background information about the
customers. If these information can be hacked or theft by the rival organisation it can be miss use
by them. Which is not good for them. Therefore it is significant for the company to make
appropriate security to these information (Yew Wong and Aspinwall, 2005). So that these are
stored and saved for the long time. Another important challenge is to maintaining and
supervision of the cloud system. In the customer relationship management the data is to be used
by the company in various ways. To identifying and analyses the needs and wants of their
customers. So that they can meet the needs of their customers. To maintaining and supervision of
these data the company requires to make a appropriate system for them. They can appoint a team
to effective supervision and maintaining the over all system. So that they can attain their target
on time. Cost is an important factor in cloud computing. Because there are various cost involved
to operating and maintaining this kind of system. These system are not operated by each and
every organisation. Small business unit are not affordable to these system (Ward and Peppard,
2016). Cloud system are to be used by the large organisation. In the small business unit there are
not large number of data on the other hand in multinational corporation have the large number of
data which is to managed, controlled and stored by these system. So that whenever is required a
member of the company can assess these information in the decision making. Therefore the
company have to make this system is more effective and efficient. So that a company can
achieve their organisational goals and objectives (Petter, DeLone and McLean, 2008).
RECOMMENDATIONS
It was suggested that company has to use porters five force model by which company
can analyse the market position. Along with by this model entity can find the competitors in the
market so that they can attain the success in the competition by providing the best products and
services. By this competitors model they can find out the suppliers and buyers and by that they
can produce the product on the basis of requirements of the consumers so that they can attain the
targets and expand the business in the existing market. Company have to use the proper system
and follow the proper structure so that they can attain the success. Along with this by doing the
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