Information Systems Essay Example | Topics and Well Written Essays - 2000 words - 2

Information Systems - Essay Example It makes switching cost or consideration of an alternative costly that it discourages customers to switch to another system. The classic example we can cite is SAP procurement system. The program is being used by many big businesses across the globe that includes industry leaders such as BMW, Ericsson, BASF Corp., Audi, Burger King, just to name a few. SAP markets its product to its customers by stating that it could â€Å"boost contract spending and and enforce compliance with procurement guidelines† (SAP, 2012). The â€Å"contract boost spending† just meant that its potential customers will have more business because it will lock in their clients to their business and will make it extremely costly for them to find an alternative because the present system (using SAP) reduces procurement cost by â€Å"automating, simplifying and accelerate the business’ procure to pay process for goods and services (SAP, 2012). It thus emphasize operational efficiency that the consideration of an alternative would be prohibitive in terms of cost, human resource and time spent looking for another supplier because SAP will already streamline the purchase of goods and services. In other words, the system (SAP) will make the products and services exchanged between suppliers and customers to be cost effective or cheap as long as the customer will buy solely from the supplier that uses SAP. To further simplify how informational technology lock in the relationship between the supplier of goods, services or information and its customer, we can further cite the popular computer tablet of Amazon which is the Kindle Fire. Kindle Fire makes a good case of how a supplier locks in or lures its customer it uses this to differentiate itself from its dominant competitor, iPad of Apple. Amazon knows that it has the advantage of deep informational database over Apple which is its online bookstore Amazon and would like to capitalize on this advantage to take away Apple iPadà ¢â‚¬â„¢s market share on the computer tablet business. Instead of offering numerous apps and competing with the technical features of iPad which Amazon knows it cannot measure up, Amazon instead offered numerous books and magazines for free with their Kindle Fire and will sell the same if a customer will purchase them using the iPad. It is short of saying that many books and magazines are free if you buy Kindle Fire and it will cost you a lot if you buy iPad. In addition, Amazon also offer their Kindle Fire way cheaper than Apple’s iPad and market it more as a book and magazine reader to differentiate from iPad. Above all, Amazon also offers unlimited cloud storage for books and magazines for free that was procured from Amazon. In the same vein, the same services of cloud storage will cost a lot if customers will buy it from their iPads because they have to buy the books at premium prices from Amazon which were free with Kindle and they have to pay again if they want to save it in Amazon’s cloud storage. In the examples stated, it showed that informational technology is not just used to make business efficient, but also made as a tool to keep existing customers and make the alternative costly for them. Information technology will not only make switching costs expensive but could also be used as a strategic capability that would serve as a barrier to new entrants into its markets. The classic example we can use to illustrate how companies make

Optical systems Essay Example | Topics and Well Written Essays - 3750 words

Optical systems - Essay Example This report also discusses the future prospects of this technology. As shown in figure 1, plastic optical fiber is huge central step-index fiber and its diameter is equal to 1 mm (millimeter). Hence, its huge size allows it to easily combine lots of light coming from various connectors and sources with less precision. In this scenario, the prices of standard connector are between 10% and 20% for glass fibers as well as closure is also as easy as cutting with a razor blade. In view of the fact that it is coated with the plastic so it makes it easy and rugged to install and connect deprived of fear of loss or damage. (The FOA, 2008; Paschotta, 2014) However, one of the major drawback of this media is that its performance is much lower than glass fiber. Additionally, its bandwidth is limited as well as it has a connection loss of approximately 0.15-0.2 dB per meter at 650 nm. On the other hand, it works fine when it is used for running short connection, for instance within a place for desktop connections up to 50 meters or inside of instruments. In this scenario, its most excellent usage is seen in automobile industry in which it has expanded a position with the innovative Flexray and MOST networks (The FOA, 2008; Paschotta, 2014). Its proven effectiveness for small distance connections make it an excellent choice for desktop LAN connections. For such connections, it can be installed in a few minutes with negligible training and tools. In future, it can be expected that its bandwidth will exceed to considerable level. However, its cost is reasonable as compared to copper. In fact, standards groups are currently looking at various choices for plastic fiber optics. It is believed that POF can be the following practical desktop connection (The FOA, 2008). Normally, the transmission is carried through fiber optic systems in the digital format. In other words, this transmission is sent and