Higher Nationals
Internal verification of assessment decisions – BTEC (RQF)
INTERNAL VERIFICATION – ASSESSMENT DECISIONS
Programme title
BTEC Higher National Diploma in Computing
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Unit(s)
Assignment title
Student’s name
Internal Verifier
Unit 07: Strategic Information Systems
Identifying and evaluating SIS for a chosen organization
W A S L Wickramaarachchi
List which assessment criteria
the Assessor has awarded.
Pass
Merit
Distinction
INTERNAL VERIFIER CHECKLIST
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justified by the assessor’s comments on the
student work?
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improved performance?
• Agreeing actions?
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Y/N
Y/N
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amending?
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Strategic Information Systems
Higher Nationals - Summative Assignment Feedback Form
Student Name/ID
Unit Title
Unit 07: Strategic Information Systems
Assignment Number
1
Assessor
Submission Date
Date Received
1st submission
Re-submission Date
Date Received 2nd
submission
Assessor Feedback:
LO1 Analyse the information requirements of organisations
Pass, Merit & Distinction
Descripts
P1
P2
M1
D1
LO2 Discuss the types of information systems that are used within all levels of an organisation
Pass, Merit & Distinction
Descripts
P3
P4
M2
D2
LO3 Demonstrate the use of an information system to produce management information
Pass, Merit & Distinction
Descripts
P5
P6
M3
D3
LO4 Evaluate the effectiveness of strategic information systems
Pass, Merit & Distinction
Descripts
Grade:
P7
M4
D4
Assessor Signature:
Date:
Resubmission Feedback:
Grade:
Assessor Signature:
Date:
Internal Verifier’s Comments:
Signature & Date:
* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and
grades decisions have been agreed at the assessment board.
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Pearson Higher Nationals in
Computing
Unit 07: Strategic Information Systems
Assignment 01
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General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and make sure all the details are accurately filled.
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reduced to A REFERRAL or at worst you could be expelled from the course
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Student Declaration
I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present
it as my own without attributing the sources in the correct form. I further understand what it means
to copy another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
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sandhillakvindhu@gmail.com
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01/12/2022
Date:
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Higher National Diploma in Computing
Assignment Brief
Student Name /ID Number
W A S L Wickramaarachchi/E157729
Unit Number and Title
Unit 7: Strategic Information Systems
Academic Year
2021/2022
Unit Tutor
Assignment Title
Identifying and evaluating SIS for a chosen organisation
Issue Date
Submission Date
IV Name & Date
Submission format
Report: The submission should be in the form of an individual written report. This should
be written in a concise, formal business style using 1.5 line spacing and font size 12. You
are required to make use of headings, paragraphs and subsections as appropriate, and all
work must be supported with research and referenced. Provide in-text citations and the
reference list using Harvard referencing system. The recommended word limit is 4000
words, although you will not be penalised for exceeding the total word limit.
Unit Learning Outcomes:
LO1: Analyse the information requirements of organisations.
LO2: Discuss the types of information systems that are used within all levels of an
organisation.
LO3: Demonstrate the use of an information system to produce management
information.
LO4: Evaluate the effectiveness of strategic information systems.
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Assignment Brief and Guidance:
Scenario
The success of any organisation is depends on the how data and information is
captured, processed, utilised and output. Information generated within the
organisation can be used to gain oraganisational efficiency, productivity and improved
business decision making. Modern organisations are heavily rely on use of Business
information systems to generate and disseminate desired information throughout the
organisation.
Assume that you have been recruited as the associate business analyst for the
organisation and you have been asked to prepare a management report to the top
management by highlighting the importance of using information systems to generate
productive results.
The organisation could be based on your own work environment or an organisation
that you have a knowledge and understanding about.
In this report you are required present the profile of the organization indicating the
vision, mission, objectives and organizational chart.
Activity 01

Discuss the information needs of the main functional departments of the
selected organisation and compare different processing activities that happen
within the functional departments. your answers should be supported with the
examples taken from the selected organizational context.

Produce an Input/out diagram to represent the data and information
requirements of each functional department of the chosen organization and
evaluate integration of data and information by considering input, output and
processing activities of the organization,s departments/functions.
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Activity 02

Identify and describe information systems that can be implemented to the
chosen organization with an explanation to the functionalities of each. You
also are required to differentiate the identified information systems between
management levels and functional areas of the organization based on their
functions and purpose. Illustrate your answer with examples.

Discuss the information needs required at operational, tactical and strategic
level of the organization with an analysis on how the effectiveness of each
management level can be improved with the support of the information
systems suggested by you.
Activity 03

“Availability of current, valid, accurate data and information is absolutely
important to an organization”
Discuss the above statement with relevant to the context of the chosen
organization and critically evaluate with examples, how such information can
be used for effective decision making and forecasting in the organization.

Demonstrate the use of an information system for management reporting
purposes and analyze the constraints that the organization may face when
gathering data and information for management reporting.
Activity 04

Identify and explain different models that can be applied to strategic
information systems and evaluate and justify how the chosen organization can
use strategic information systems to gain a competitive advantage in the global
market using the models identified. You are also required to evaluate how
strategic information systems can contribute to the competitiveness of
organisations. Support your answer with relevant examples, illustrations and
explanations.
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Grading Criteria
Achieved
Feedback
LO1: Analyse the information requirements of organisations.
P1 Discuss the information needs and requirements for the
functional departments of an organisation.
P2 Produce an input/output (I/O) diagram to represent the
data and information requirements of a functional
department.
M1 Compare and contrast different processing activities that
occur within functional departments within an organisation.
D1 Evaluate the inputs, outputs and processing activities of
a selected organisation.
LO2: Discuss the types of information systems that are used within all levels of an
organisation.
P3 Describe the function of different information systems.
P4 Discuss the information needs required at differing levels
within an organisation.
M2 Analyse the effectiveness of information systems at the
operational, tactical and strategic levels within an
organisation.
D2 Differentiate between the function and purpose of
information systems at different levels within an
organisation.
LO3: Demonstrate the use of an information system to produce management
information
P5 Demonstrate the use of an information system for
management reporting purposes.
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P6 Discuss the importance of an organisation having data
and information that is current, valid and accurate.
M3 Analyse the constraints that an organisation can face
when gathering data and information.
D3 Critique with examples, how a given organisation can use
information for effective decision-making and forecasting.
LO4: Evaluate the effectiveness of strategic information systems
P7 Identify different models that can be applied to strategic
information systems.
M4 Justify the ways in which an organisation can obtain
competitive advantage within a global market.
D4 Evaluate how strategic information systems can
contribute to the competitiveness of organisations.
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Table of Contents
Activity 01................................................................................................................................ 13
Background details of the organization ............................................................................... 13
Functional departments house the organizational functional areas and their information
requirements for evaluating various processing operations. Use an appropriate (I/O)
diagram to illustrate the data and information needs of the functional department in your
report. ................................................................................................................................... 16
Human Resource Department .................................................................................................. 17
IT Department .......................................................................................................................... 18
Finance Department ................................................................................................................. 19
Legal Department ..................................................................................................................... 20
Security Department ................................................................................................................ 21
Customer Experience Department ........................................................................................... 22
Research and Development Department .................................................................................. 23
Accounts Department ............................................................................................................... 24
Foreign Department ................................................................................................................. 25
Marketing Department ............................................................................................................. 26
Comparison of different department functional activities ....................................................... 27
Accounting department VS Finance department ................................................................. 27
ICT department VS HR department..................................................................................... 27
Activity 02................................................................................................................................ 28
Information needs to be required at different levels of your organization ........................... 28
Strategic level nature and its information required according to BOC ............................ 28
Middle-level nature and its information required according to BOC .............................. 29
Operational level nature and its information required according to BOC ....................... 29
The functions and purpose of different information systems types and their need in
different levels of the organization ...................................................................................... 30
Transaction processing system (TPS) .............................................................................. 30
Management information system (MIS) .......................................................................... 31
Decision support system (DSS) ....................................................................................... 31
Executive support system (ESS) ...................................................................................... 32
Why function and purpose are different in information systems according to the
organizational level? ............................................................................................................ 33
Activity 03................................................................................................................................ 36
Decision Making Process ..................................................................................................... 36
Use of an information system for management reporting purposes .................................... 37
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Activity 04................................................................................................................................ 38
Different models can be applied to strategic information systems. ..................................... 38
Porter’s Five force model ..................................................................................................... 38
Porter’s Generic Strategies................................................................................................... 39
Cost Leadership Strategy ................................................................................................. 39
Differentiation Strategy.................................................................................................... 39
Focus Strategy .................................................................................................................. 39
Porter’s Value Chain Model ................................................................................................ 40
Wiseman’s Strategic Planning Process ................................................................................ 42
The strategies your company might use to gain a competitive edge in a global market ..... 43
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Activity 01
Background details of the organization
I was selected by the reputed bank to study their information system and how data and
information they use to provide their facilities and services, that selected bank is the Bank
Of Ceylon.
Figure 1
Sir Ernest de Silva served as the first chairman of the Bank of Ceylon (BOC) when it was
established in 1939. On August 1, when Ceylon was still a British colony, the bank was
formally inaugurated by Sir Andrew Caldecott, the governor at the time. The banking
division was established by the British government for its government-oriented enterprises.
BoC began to grow outside of Colombo two years after that, in 1941. In Kandy, it
established its first branch. After afterward, BOC opened branches in significant cities like
Panadura, Jaffna, Kurunegala, Trincomalee, Badulla, and Galle.
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Vision
To be the nation's preferred bank with a strong global presence providing customer centric
innovative financial solutions.
Mission
To provide highly efficient, customer-focused, technologically sophisticated, resilient and
innovative financial services to the nation with global access, empowering employees and
enhancing value to the stakeholders.
Corporate Values
In achieving our vision to be the Nation's preferred bank with a strong global presence
providing customer-centric innovative financial solutions, we are committed to upholding
our core five values as follows,

Being customer-centric

Respecting all forms of diversity

Committing towards high level of ethics, governance, and professionalism

Focusing towards agile and innovation

Being accountable for all our actions
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What Is Information?
Information is the final result of interpreted, and arranged data (Meleen, 2021).
Functional areas of an organization.
Organizations are designed around a set of tasks, each of which supports the business's
activities. Each functional department helps an organization achieve its goals by serving a
certain purpose. Below are the functional areas of an organization that are most typical. An
individual's or a group's desire to find and obtain information to fulfill a conscious or
unconscious need is known as an information need. Information needs are interconnected
with needs in an unbreakable way. Information requirements and needs are similar but not
the same.
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Functional departments house the organizational functional areas and their
information requirements for evaluating various processing operations. Use an
appropriate (I/O) diagram to illustrate the data and information needs of the
functional department in your report.
Functional areas are specialized departments within an organization that is set up,
developed, and maintained for a particular mission. Organizations have one, two, or more
functional areas where their activities are organized. To ensure effective operation, every
business and organization must maintain its functional areas.
In order to organize their daily tasks and other work-related activities, BOC Bank
additionally has a few other functional categories. Functional areas of BOC Bank are listed
below.
1. Human Resource Department
2. IT Department
3. Finance Department
4. Legal Department
5. Security Department
6. Customer Experience Department
7. Research and Development Department
8. Accounts Department
9. Foreign Department
10. Marketing Department
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Human Resource Department
The human resources department performs numerous tasks connected to the employees. The
HR department manages and keeps an eye on employees' performance.
These are the department's operational activities and information requirements.
Figure 2
Human Resources functions of the company

Advertising vacancies

Receiving and recoding job applicants and arranging interviews

Checking health and safety

Arranging staff trainings

Recording leaves

Monitoring the terms and conditions of employments
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IT Department
All tasks involving information and technology are handled by the information technology
department. They focus mostly on the issues with banking systems. There are sections for
networking development and maintenance.
These are the department's operational activities and information requirements.
Figure 3
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Finance Department
The financial function in a business entails obtaining and using the money required for
effective operations. Without it, corporate operations would not be successful. Finance is
the lifeblood of business. It is the primary source of funding for every organization because
it both generates and gives funding. Information on finances is useful for starting and
running a firm as well as for expanding, modernizing, diversifying, and buying assets.
Figure 4
Finance functions of the company

Producing invoices for the product

Recording the received money

Paying the chemical suppliers

Paying the staff

Monitoring departmental budgets
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Legal Department
The legal department handles all legal tasks associated with banking services, including
loan granting, leasing of vehicles, accounts, card use, and other legal matters.
These are the department's operational activities and information requirements.
Figure 5
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Security Department
The security department handles and maintains bank security. Bank-haired security services
for bank security. And also, the bank is insured with a bank insurance security policy.
These are the functional activities and information needs in this department.
Figure 6
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Customer Experience Department
Customer problems and issues are gathered and supported by the customer experience
section. They report the items they have gathered to the appropriate department for
management and future use.
These are the department's operational activities and information requirements.
Figure 7
Customer service functions of the company

Answering customer inquiries about the product

Solving customer problems

Providing specialist information to customers

Analyzing records of customer complaints

Using customer feedback to improve customer service
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Research and Development Department
By giving market insights and creating new goods or upgrading existing ones in response,
an R&D department's job is to keep a corporation competitive. The R&D department will
play a significant role in the company's future expansion.
Figure 8
Research and Development functions of the company

Existing Product Updates

Quality Control Checks

Innovation and Staying Ahead of Treads
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Accounts Department
Account departments manage tasks and activities connected to accounts. By adhering to the
guidelines of the Central Bank, they maintain account standards. in addition to introducing
different accounts to the intended client base.
These are the department's operational activities and information requirements.
Figure 9
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Foreign Department
The foreign section manages foreign currency exchangers, rates, and accounts. They also
deal with trade finance and foreign remittances.
Figure 10
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Marketing Department
The marketing function is a role that aids the business in locating potentially successful
products for the market they serve and then promoting those products by setting them apart
from competing goods. It is essential to any business.
Figure 11
Marketing functions of the company

Performing market research

Making marketing plan

Market development

Distribution for sale

Pricing
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Comparison of different department functional activities
Accounting department VS Finance department
Individuals within a company or organization use managerial accounting most frequently.
Reports can be created daily, weekly, or monthly, depending on how much time you have
available. Reports are seen by individuals within the corporation as being "future-looking"
and having predictive value.
ICT department VS HR department
Information and communication technology (ICT), such as the internet, mobile
communication, new media, and similar in the hour will considerably contribute to the
fulfillment of personnel policies of the company, according to popular wisdom. The hour
department of a company will be greatly impacted by technological innovation. It enables the
corporation to improve its internal operations, core competencies, pertinent markets, and
overall organizational structure.
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Activity 02
Information needs to be required at different levels of your organization
The line of a statement between various social control roles in a firm is referred to as the
levels of management. When the size of the business and the workforce grow, the number of
management levels will too, or vice versa. Any social control position's rank, number of
authorities, and chain of command are all determined by the amount of management. Three
major categories are used to categorize the amount of management.
Figure 12
Strategic level nature and its information required according to BOC
The highest level in an organization is the strategic level. This level is handled by top-level
executives and directors, who take into account the overall organization's goals, strategies,
and policies as well as track the organization's strategic performance. This level also takes
the overall direction of the political, economic, and business environments into account. At
this level, there is an unstructured decision-making process, a summary of all the
information, and long-term plans.
Directors, the Board of Directors, and top executives make up the BOC's strategic level.
According to the long-term plan and goal, they oversee and manage the bank. In order to
accomplish their goals, which included anticipated government policies, overall profitability
and profitability of the divisions, competitive analysis, future market prospects, total
deposits needed, capital equipment needed, and more information, they used a variety of
information sources.
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Middle-level nature and its information required according to BOC
The middle level of an organization is the tactical level. Managers and executives from the
middle class handle this level. The middle management is responsible for defining,
categorizing, and turning company goals into strategic plans. They think about how to set up
and manage the budget and plan in accordance with the organizational plan. As a result, they
provide schedules, short-term plans, and many other things for the organization. Between the
operational level and the strategic level, this level serves as a bridge. The decision-making
process is semi-structured at this level.
In BOC, regional managers and executives make up the tactical level. Each district and
province is served by a regional office of BOC. They manage BOC targets as a result of using
their management strategy. In selecting their regional area, they separated goals and budgets
according to the capacity and profitability of each branch. Information such as productivity
measurements, branch capacity, cash flow predictions, budgetary control reports, stock
turnover, personnel countability, and more are therefore needed at the tactical level.
Operational level nature and its information required according to BOC
Operations management is the control of business procedures to achieve the highest level of
productivity within an organization. In order to increase a company's profit, means turning
materials and labor into products and services as quickly as possible.
For the highest possible net operating profit, operations management teams plan to balance
prices and revenue.
Branch managers and branch workers make up the operational level at BOC. BOC has
numerous locations on the island. They deal with bank clients, keep track of donation goals,
manage daily operations, and much more. They require information, such as time spent on
each task individually, working hours, customer behaviors, target and budget limitations,
policy regulation and circulars, knowledge of daily systems, etc., for this work at the
operational level.
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The functions and purpose of different information systems types and their need in
different levels of the organization
What is the information system?
An information system is a comprehensive group of parts used to gather, store, and process
data as well as to deliver knowledge, information, and digital goods. What the information
system is and what it does within the organization are detailed here.
Why organizations used different information systems and what are they?
As noted in the paragraphs above, organizations must cooperate with various management
and business levels. Therefore, organizations must maintain various information systems for
jobs that are relevant. Because information systems are so helpful for company organizations,
they also include the analysis and organizing of corporate information using technology.
From a constituency perceptive, we can identify systems in terms of the major organizational
groups that they serve. These information systems are following.
1. Transaction processing system (TPS)
2. Management information systems (MIS)
3. Decision support systems (DSS)
4. Executive support systems (ESS)
Transaction processing system (TPS)
Basic business systems called transaction processing systems serve the operational level of
an organization by keeping track of daily activities. As an illustration, consider pricing
systems, quantity control systems, payroll systems, financial transaction systems, and many
others.
Functions of TPS: Data editing, Data correction, Data manipulation, Data recording, Basic
data processing, Input and output, Data storage, increase labor efficiency.
Purpose of TPS: Handle day to day transections and other day routine activities.
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Management information system (MIS)
By providing current and historical performance data to aid in planning, controlling, and
decision-making at the operational and occasionally tactical management level,
management information systems support managers' interests. Organizations developed
MIS in response to their own need.
Functions of MIS: Generating reporting, Monitoring transections, Creating charts, Allow
user to develop their own customer report,
Purpose of MIS: Getting summaries information through the TPS.
Decision support system (DSS)
The tactical level management makes use of a decision support system. This system has the
ability to forecast some variables quickly. Managers and executives at the tactical level might
thus obtain a vision for the future. While this DSS contributes external data and information
for DSS analysis, the previous two information systems only rely on internal data. It can
analyze bigger data sets.
Functions of DSS: Provide reports, Analyses Data, Presenting prediction results, Identify
Organization’s future risks, support drill-down analysis. Offer both textual
and graphical orientation.
Purpose of DSS: Analyses and report data for tactical level management
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Executive support system (ESS)
Specialized systems are used by senior executives and board members of companies to help
them make strategic decisions. Because organizations want to know how to accomplish
their goals in society, this system, which can handle internal and external data with great
efficiency, relies heavily on external data. ESS has a lot of unique features for handling
data. This system is capable of providing a broad perspective, strategic planning and
organization, strategic control, and crisis management.
Functions of ESS: strategic planning and organizing, crisis management, providing future
orientation, providing very user-friendly interface and graphical context.
Purpose of ESS: Maintain and control organization goals and its vision and mission.
According to organizational expectations and needs, some organizations utilize expert
systems, office information systems, enterprise resource planning systems, enterprise
systems, global information systems, data warehouse systems, and integrated information
systems. Each of these information systems has a certain purpose.
The illustration below demonstrates how an organization's level needs an information system
for the organizational development process in relation to TPS, MIS, DSS, and ESS.
Figure 13
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Why function and purpose are different in information systems according to the
organizational level?
Organizations have three levels: strategic, tactical, and operational. Therefore, when levels
change, so do their functions and goals. Information systems, such as transaction processing
systems (TPS) and management information systems (MIS), are used at the operational level
and primarily focus on daily transactions as well as additional daily, weekly, or monthly (at
most) reports. More analytical data are not required at the operational level. However, lowlevel managers may require reports for managing their workforce, which is why MIS is more
practical than TPS. Organizations utilize DSS at the tactical level because middle managers
and executers require more analytical information and information summaries for their tasks.
The use of ESS and data warehouse at the strategic level follows because top-level managers
and directors require a strategic planning system. That can be produced for them by ESS.
Because of this, the function and purpose of information systems vary depending on the
organizational levels.
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Discuss the information requirements at the operational, tactical, and strategic levels of
the company. Include an analysis of how the information systems you recommend can
help each management level's effectiveness.
Levels of information
Different layers of an organization's structure are responsible for planning, controlling, and
making decisions. There is a direct correlation between the prominence of individuals and
groups within an organization and the amount of information that is communicated at the three
levels of strategic, tactical, and operational usage of information.
Operational information
Operational planning is based on tactical plans, which is the lowest level of planning. The
lowest tier of management in a company is responsible for carrying out operational plans. Shop
assistants, waiters, and kitchen staff, among others, may be division heads or foremen in a
major company, or they may be shop assistants, waiters, and kitchen staff, among others, in
smaller businesses without a managerial layer. The timeframe is usually relatively brief,
ranging from right away to once a day to at most a week or a month. The tactical planners
routinely receive operational activity outcomes so they can examine their plans.
The operational level staff can manage their limited time by employing TPS information
systems. Through effective time management, individuals can become more productive and
have a positive effect on the firm by achieving short-term goals.
supplies for transaction processing systems,
 Point of Sale Systems.
 Payroll systems.
 Stock Control systems
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Strategic information
At the highest echelons of an organization's management, strategic information is utilized.
These leading executives or directors would decide on the long term. Strategic information
will incorporate data from both internal and external sources and has a wide range of use.
Timeframes might vary from one to five years or even longer, depending on the project. The
amount of depth in strategic plans will be kept to a minimum, while plans with a greater level
of detail will be prepared at a lower level of management. A solid strategic plan will be
simpler to understand on a more fundamental level than one that is bad or unclear Likewise,
extensive and well-designed plans will be simpler to implement than those that are not.
At the highest echelons of an organization's management, strategic information is utilized.
These leading executives or directors would decide on the long term. Strategic information will
incorporate data from both internal and external sources and has a wide range of use.
Timeframes might vary from one to five years or even longer, depending on the project. The
amount of depth in strategic plans will be kept to a minimum, while plans with greater level of
detail will be prepared at a lower level of management. A solid strategic plan will be simpler
to understand on a more fundamental level than one that is
bad or unclear Likewise, extensive and well-designed plans will be simpler to implement than
those that are not.
Executive Support Systems supplies,
 Trend analysis.
 Material resource planning.
 Inventory control systems.
 Production scheduling and planning.
 Sales profit ratio analysis
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Activity 03
Data is important. Information has processing importance, making it more valuable than
data. But above all else, current, valid, and correct facts and information are beneficial
because they reflect the present moment, have their own internal validation, and are errorfree. Therefore, these kinds of information and data are crucial to every organization.
However, no data or information wants to be organized for upcoming planning or decisionmaking. Some information and data are historical. Because of this, an organization won't
need certain data or information in the future if it belongs to the past. Therefore, all
information and data must be updated. If so, the business can proceed without incident. For
their work, organizations demand data and information that is current, accurate, and valid.
Decision Making Process
Figure 15
Figure 14
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Use of an information system for management reporting purposes
Every manager and other authorized officer needs a management report for management
purposes. That is why reporting is a feature of MIS, DSS, and ESS. Organizations occasionally
develop specialized data systems for reporting services. Very top level, which means directors
and senior executives review the management report to determine how the organization is
operating. ESS produces a strategic level management report that can show the status of the
overall management areas. Additionally, it may display information using graphs, tables, pie
charts, line charts, and bar charts that are customized to the user's preferences. Annual reports
are typically produced by ESS. The BOC annual report contains vital information.
Management has the authority to decide and plan additional commercial operations, according
to the annual report.
Using the DSS management report, you can accomplish the goals set by the strategic level.
Which branches are more profitable and which branches are less profitable can be determined
by the DSS management report. Organizations can divide targets and other facilities to the
proper destination, the research claims. MIS can produce daily management reports at a lower
level. Therefore, it aids in overseeing low-level operations as well as tracking the advancement
of branch activities. The information that the system generates is all more accurate. so that our
information system can be used to improve management reporting.
The constraints that your organization is facing when gathering data and information.
In the banking system, banks have systems and standards in place for collecting data or
information. Because of this, they can obtain pertinent information and encounter fewer
limitations when obtaining data and information. However, they encounter some challenges
while acquiring data and information due to various campaigns and other activity that is
unrelated to the banking environment. Instances of that.
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Activity 04
Different models can be applied to strategic information systems.
For business development, there are some models. These models can improve productivity
across the board. To show this, we can use Porter's concept of competitive advantage and
Wiseman's strategic planning methodology. These models allow organizations to determine
the aspects they must take into account as well as the ones they must keep up and improve
upon in order to accomplish their overall plans and objectives. Here are some examples of it
as a model.
Porter’s Five force model
Porter's Five Forces is a model that identifies and analyzes five competitive forces that
shape every industry and helps determine an industry's weaknesses and strengths. Five
Forces analysis is frequently used to identify an industry's structure to determine corporate
strategy.
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1.
Competition in the industry
2.
Potential of new entrants into the industry
3.
Power of suppliers
4.
Power of customers
5.
Threat of substitute products
Porter’s Generic Strategies
Porter’s Generic Strategy was introduced by Michael Porter in 1980. It’s comprised of three
basic strategies, namely the “Cost Leadership Strategy,” “Differentiation Strategy” and
“Focus Strategy.” Porter indicated that every company or organization should only pursue
one of these strategies or risk wasting company resources in a futile attempt to grow the
business fast.
Cost Leadership Strategy
The initial Porter's Generic strategy focuses on the business's pricing aspect. Customers who
care about costs are the strategy's target audience. With this strategy, the business offers a
product of comparable quality at a lower cost than its competitors.
Differentiation Strategy
The next technique seeks to highlight the distinction between your items and those of your
rivals. While some consumers are concerned with pricing, others are not, as long as they are
receiving high-quality goods. The Differentiation approach can be used in this situation. The
top features your product has are those that you offer. If you have a feature that the competing
products lack, this generic approach will work considerably better for you.
Focus Strategy
Focus strategies are the third and last technique. Specific consumers are included in the scope
of this strategy. This means that while it is not strongly advised for large firms, they can use
it in addition to either distinctiveness or cost-effective techniques. Companies can concentrate
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more on offering specific items that respond to the unique needs of a consumer segment by
using the Focus strategy. Because it attempts to offer distinctive and exclusive goods and
services, it is extremely relevant to smaller enterprises with less competition.
Porter’s Value Chain Model
A manufacturing (or service) organization is viewed as a system made up of subsystems,
each with inputs, transformation processes, and outputs. This idea is the foundation of the
value chain. Resource acquisition and consumption are involved in inputs, transformation
processes, and outputs. These resources include cash, labor, supplies, machinery, buildings,
land, and administrative and managerial services. Costs and profits are determined by how
value chain operations are performed.
The majority of organizations do hundreds or even thousands of activities in order to
transform inputs into outputs. These can be broadly categorized as primary or supporting
activities that are necessary for all businesses to perform in one way or another.
Porter (1985) lists the following as the primary activities:
1. Inbound Logistics - involves relationships with suppliers and includes all the
activities required to receive, store, and disseminate inputs.
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2. Operations - all the activities required to transform inputs into outputs.
3. Outbound Logistics - includes all the activities required to collect, store, and
distribute the output.
4. Marketing and Sales - activities inform buyers about products and services, induce
buyers to purchase them, and facilitate their purchase.
5. Service - includes all the activities required to keep the product or service working
effectively for the buyer after it is sold and delivered.
Secondary activities are:
1. Procurement - the acquisition of inputs, or resources, for the firm.
2. Human Resource Management - consists of all activities involved in recruiting,
hiring, training, developing, compensating, and (if necessary) dismissing or laying off
personnel.
3. Technological Development - pertains to the equipment, hardware, software,
procedures, and technical knowledge brought to bear in the firm's transformation of
inputs into outputs.
4. Infrastructure - serves the company's needs and ties its various parts together, it
consists of functions or departments such as accounting, legal, finance, planning,
public affairs, government relations, quality assurance and general management.
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Wiseman’s Strategic Planning Process
In order to gain a competitive edge, Wiseman's Framework is a five-phase strategic drive that
identifies and evaluates strategic information systems (SIS). The five thrusts are
differentiation, cost, innovation, growth, and alliance. The consumer, competitors, and
suppliers are three of the most crucial parties. Wiseman enjoys thinking of new possibilities
through brainstorming. The objective is to provide SIS choices, evaluate them, and select the
initiatives that will give the company the greatest competitive advantage. Introduce strategic
aims, strategic trust, mode, and direction in that regard. These are listed following.
Strategic targets

Supplier

Customer

Competitor
Strategic trust

Differentiation thrust

Cost thrust

Growth thrust

Alliance thrust
Strategic mode

Offensive

Defensive
Strategic direction

Use

Provide
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The strategies your company might use to gain a competitive edge in a global market
BoC is the largest bank in Sri Lanka as measured by assets, deposits, loans and advances, and
earnings. The Bank's competitive edge is underpinned by its established track record of over
eight decades, its extensive branch reach, and attributes of trust and stability associated with
the BoC brand. As of the end of December 2020, the Bank accounted for over 20% of the
industry's assets, loans and advances, and deposits.
Bank of Ceylon is the undisputed leader in Sri Lanka's financial services sector, accounting
for the banking industry's largest asset, deposit, and advances portfolio, a most extensive
network of customer contact points, and a customer penetration rate of 64%. As a fully-state
owned, Domestic Systemically Important Bank widely regarded as 'Bankers to the Nation'
BoC is a vital element of the country's financial, economic, and social landscape and has
played an unparalleled role in driving Sri Lanka's economic growth, financial inclusion, and
socio-economic empowerment. The Bank has expanded to overseas locations through three
branches in India, Maldives and Seychelles, a limited service branch in Hulhumale and a fully
owned subsidiary in London, UK.
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