Information Systems: Knowledge Management and Competitive Advantage

This report comprehensively analyzes various aspects of information systems. It begins by examining the Facebook Business Social Influencer program and its benefits for companies like Samsung, highlighting the importance of reaching a wide audience and maximizing content impact. The report then applies Porter's Five Forces model to the car rental industry, evaluating entry barriers, buyer and supplier power, threats from substitutes, and industry rivalry. Organizational strategy is discussed, emphasizing the alignment of information systems with business goals to achieve competitive advantage. The report also delves into information system security threats, including malware, rogue software, Trojan horses, computer worms, outdated security software, and third-party application vulnerabilities. Design thinking is explored, with a focus on its human-centered approach. The report concludes by examining strategic alliances, specifically Cisco's alliances, and how cloud platforms can facilitate these partnerships. Additionally, the role of knowledge management in decision-making, the benefits of knowledge management systems for companies like Acme, and the importance of intranets for internal communication are analyzed. The report also covers the objectives of Acme's knowledge management strategy and factors to consider when outsourcing or insourcing a new knowledge management system.

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INFORMATION SYSTEM
Student’s Name
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Lecturer
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Part 1
Question 1
Facebook Business Social Influencer program is a marketing strategy in which brands
collaborate with Facebook influencers to reach out consumers. Through Facebook Business
Social Influencer Program, CEO of Samsung can gain various benefits. By joining this program,
the CEO can increase the exposure of the company. Given the fact that Facebook is the largest
social platform in the world, the CEO can reach a wide audience and enhance brand awareness.
The platform also has cross promotional capabilities which can give the CEO access to a diverse
audiences (Qualman, 2010). By developing social media content on Facebook for influencer
marketing campaigns, the CEO can maximize the impact of promoted brand content and
encourage viewers to take action such as visiting the company’s website (Evans, 2010).
However, the CEO faces a major challenge in developing a comprehensive Facebook influencer
marketing campaign as the target audience may use different languages.
Question 2
Porter’s Five Force Model
The entry barrier in the car rental industry is high due to the large capital investments required to
start the business. However, since carnextdoor has increased awareness of the rental system, new
entrants have much less risks.
The bargaining power of buyers is medium. Due to the increasing demand of the service,
carnextdooor can influence the cost of the service. On the other hand, carnextdoor’s customers
can control quality and price by sharing their experience of using the service.

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Due the large number of suppliers available in the country, the bargaining power of suppliers is
low.
Carnextdoor faces threast from several substitutes such as taxi, public transport, and personal
cars. Taxi are as convenient as carnextdoor and do not charge membership fees. Public transport
is cheaper than carnextdoor and personal car is cheaper, convenient, and quicker than the
company’s services (Redman, 2013).
Industry rivalry: There are several competitors in the industry that offer a similar service. Rivals
such as Zipcar operate under peer-to-peer business model and have online-based car rental
services (Shaheen, 2013). Thus, Carnextdoor does not hold any competitive advantage.
Question 3
An organizational strategy defines how a firm should change in order to provide a plan of
making transformation. This requires an analysis of the business to compare current state to
expected stage and identify gap and capabilities to implement the changes. Effective
organizational strategy incorporates business strategy which is concerned with the
competitiveness of the business in order to make a change that enables it to gain a competitive
advantage and achieve high performance (Teece, 2010). Information systems provide
competitive advantage as business success is largely determined by technology used. Thus,
through strategic IT planning, technology can be properly aligned with business goals.
Business strategy focuses on how a firm competes in a market is concerned with the strategic
decisions about product choice, gaining competitive edge, exploiting new opportunities, etc. The
strategy not only outlines business goals but also is concerned with future (Zheng, 2010). Thus,
if a company such as Facebook does not use business strategy as a driver of its organization

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strategy, the business may fail as it lacks preparedness in tackling challenges that may emerge in
the future.
Question 4
There are several sources of information systems security threats which include:
Malware is a malicious program such as a computer virus which infects a computer system. CIH
is an example of a malware which overwrites PC chips interrupting computer systems.
Rogue security software is created to lure people into downloading malicious programs. For
example, pop-up windows advertising security alert ask users to remove a ‘malicious software’ it
has detected. Users end up downloading and installing the rogue software which infects their
computers.
Trojan horse is a malicious software that is thought to be legitimate. Once installed, it can collect
user details such as passwords or hijack webcam and record users’ movement.
Computer worm is a malicious program that copies itself to propagate to other computers. The
Blaster worm is an example of a computer worm which exploited security loop holes in
Microsoft’s website and launched a denial of service attack.
Outdated security software such as obsolete antimalware programs creates security loopholes
which implies malicious programs can easily infect computer systems without being detected.
Third party applications connected to websites such as plugins can be compromised and used to
target firms using stolen credentials.

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Question 5
a. Design thinking is a human-oriented approach to innovation that incorporates people’s needs,
capabilities of technology, and business requirements.
b. I disagree with the statement as design thinking in web design companies involves aligning the
design process with the needs of the people to deliver a specific product design that satisfied all
stakeholders involved. However, the design process involves coordination with stakeholders to
ensure a satisfactory deliverable is produced (Martin, 2009).
Question 6
a. A strategic alliance is an agreement between companies to focus on specific objectives
together but maintain the independence of the organizations.
b. Cisco stands to benefit from its strategic alliance with manufacturers, suppliers, and
distributors. First, circuit boards can be delivered when order us made which reduces the
inventory that the company has to maintain. Since the company is linked to component suppliers,
its inventories for components can be maintained for several days. Distributors can also be
informed when an order is processes which enhances delivery of products. The strategic alliance
not only makes the whole supply chain process efficient but also reduces costs.
c. A cloud platform can play a key role in maintaining the strategic alliance between Cisco and
other stakeholders. With the cloud, the firms can collaborate and engage with each other in order
to enhance the sufficiency of the supply chain. The cloud can enable Cisco to send orders to
suppliers and manufacturers which is key in maintaining sufficient levels of the inventory.
Collaboration with distributors over the cloud can enable Cisco to receive and process orders in
real time resulting in increased speed of order delivery. As a result, the company will have

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capability to increase the speed of manufacturing and distribution as well as reducing supply
chain costs (Marston, 2011).
Part 2
Question 1
a. Knowledge plays a critical role in making high-quality decisions. With knowledge,
management and IS consulting firms can improve decision-making process based on the insight
obtained. Knowledge gives the firms an opportunity to identify failures and successes which
allow them to streamline their business processes and make them competitive. Organizational
knowledge also is key in stimulating innovation in the firms. It helps managers to adopt change
and encourage ideas which support innovation (Dalkir, 2011).
b. Knowledge management system can be crucial in enhancing the productivity and
competitiveness of Acme. The system enables the firm to process large amounts of data to obtain
key insight and information on the market and business operations. The capability of Acme to
tap into the wisdom obtained from the system gives a competitive edge in the market as it can
identify challenges that need to be resolved and opportunities that should be grabbed. Also, the
system increases productivity of the staff as they have access to knowledge which is helpful at a
time of need.
Question 2
a. An intranet is a private network that can only be accessed within an organization. Intranet
improves internal communication within an organization and provides a secure way of sending
confidential information (Masrek, 2009).

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b. The key problem with the intranet was crowding. Since the intranet portal supported several
users, content build up made it hard to find relevant content. Without a way of accessing relevant
content, consultants struggled to provide key insight that could help clients. Also, the intranet
was not as usable as the consultant expected.
Question 3
Competitive advantage is an edge that a business has over its rivals. This involves providing
better value that makes customers consider the firm to be better than the rest. With a knowledge
management strategy, Acme can be effective in leveraging wisdom from knowledge
management systems to make informed decisions that enhance its competitiveness and
streamline its operations.
Question 4
The objectives of Acme’s knowledge management strategy are:
Transform knowledge to improve business processes and operations and provide a competitive
advantage to the business.
Support knowledge sharing culture in the firm. The strategy aims ate improving collaboration
and knowledge sharing among employees and external stakeholders as well share information on
best practices that should be adopted to enhance efficiency of business operations.
Provide actionable information that accelerate innovation and development within the company.
Acme obtains knowledge strategic to its operations which can be used to boost product
innovation.

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Facilitate organizational learning by providing knowledge that enhances the skills of employees
and improves their productivity.
Question 5
Several factors that Acme should be considered when deciding whether to outsource or insource
the new knowledge management system. These factors include:
Cost: Acme should assess which option is cost effective. Outsourcing companies may provide
cost reductions. On the other hand, insourcing the project may cost less.
Technology Level: If the knowledge management system incorporates the latest software
technologies, outsourcing should not be considered. However, if it is a non-core software, it can
be outsourced.
Intellectual property content: The firm should consider local outsourcing alternatives that are
manageable with non-disclosure agreements in order to protect intellectual property.
Control of core competency: If the system is the company’s core competency, it should not be
outsourced. If the system is not ancillary to the company’s mission, it can be outsourced.

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References
Dalkir, K. and Liebowitz, J., 2011. Knowledge management in theory and practice. MIT press.
Evans, D., 2010. Social media marketing: the next generation of business engagement. John
Wiley & Sons.
Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J. and Ghalsasi, A., 2011. Cloud computing—
The business perspective. Decision support systems, 51(1), pp.176-189.
Martin, R.L., 2009. The design of business: Why design thinking is the next competitive
advantage. Harvard Business Press.
Masrek, M.N. and Jusoff, K., 2009. The effect of information technology infrastructure
flexibility on intranet effectiveness. Computer and Information Science, 2(2), p.57.
Redman, L., Friman, M., Gärling, T. and Hartig, T., 2013. Quality attributes of public transport
that attract car users: A research review. Transport Policy, 25, pp.119-127.
Shaheen, S.A. and Cohen, A.P., 2013. Carsharing and personal vehicle services: worldwide
market developments and emerging trends. International Journal of Sustainable
Transportation, 7(1), pp.5-34.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range
planning, 43(2), pp.172-194.
Qualman, E., 2010. Socialnomics: How social media transforms the way we live and do
business. John Wiley & Sons.

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Zheng, W., Yang, B. and McLean, G.N., 2010. Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of
Business research, 63(7), pp.763-771.