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Contents

Introduction

1. Answer to Question 1

2. Answer to Question 2

3. Answer to Question 3

4. Answer to Question 4

15

5. Bibliography

17

6. Marking Scheme and Comments

19

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Introduction
The digital age is already with us and it serves us, as professionals working in various
industries in Sri Lanka, to study about the importance of Information Systems for
Management Professionals. In fact, as continuously learning and improving students, we
have to be in touch with the world around us and have to be aware of the changes that
take place in the cyber landscape. Moreover, it serves us well if we study in a rigorous
manner how it helps us to make our business processes easier and also to find more
ways in which we can use it in our day-to-day business activities.
This collection of writings consists of answers to the Take-Home Assignment of the
module MCP1601 Management Information Systems of the CEMBA course. This is a
part of assignments for Cohort No. 10.

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1.

Answer to Question 1

Introduction
Business Pressures are the changes in a businesss social, technological, legal,
economic, physical and political environments that creates the requirement to change
the strategies or business processes that the particular business uses or otherwise face
the unpleasing scenarios of losing market share, customers and eventually the very
existence of the business itself. Business pressures are numerous in our modern
business world and every company should adapt to these situations, or these drives
that mandate change. In response to these driving forces, businesses implement
measures that can be reactive or, if planned and implemented before-hand, proactive.
These are known as Critical Response Activities. These will be responses like adopting
new

strategic

management

principles,

implementing

unique

customer-focused

processes, adopting continuous improvement methodologies or adopting new modes of


conducting business such as E-Commerce. In the following sections we will identify the
business pressures that were the driving forces behind the critical response activities
that were implemented by Le Saunda Holding Company (Hong Kong) and the The
Dallas Mavericks (U.S.A).
Le Saunda Holding Company (Hong Kong)
Le Saundas critical response activities fall under the categories of Stretegic
Management and Systems and Restructuring Business Processes.
The major business pressure on Le Saunda is more internal than external. The growing
size of the company meant that the financial and logistics divisions had to handle huge
amounts of data. As such, it becomes difficult to manage such vast amounts of data
without the ability to number-crunch or analyze and present useful information from
them. That is the reason that they, in response, adopted a new sophisticated accounting
software package. This gave them advantages such as being able to expedite
accounting processes and the functional managers in turn being able to make better,
quicker and more informed decisions. So the major business pressure was Information
Overload driven by the rapid growth of the company.

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The secondary business pressure was the

Need for Real-Time operations.

Implementation of the accounting software package gave the benefit for the functional
managers and top-level management to obtain data very quickly, at most, within the
course of a day.
The Dallas Mavericks (U.S.A)
The major Business Pressure behind the Mavericks implementation of their many critical
response activities was Market pressure. In other words, they wanted to fill seats. The
NBA has a big fan-base, but if all the fans decided to stay at home and watch the games
on television, that meant a loss for the stadium or the game venue organizers. This is the
reason why they implemented internet access for the processing facility to facilitate
availing refreshments with a lot of convenience for the fans. In brief, they needed to
attract the fans to watch the game live at the venue itself.
Other Business Pressures were the Need for Real-Time operations and Technological
Innovation. The Mavericks managed the former by implementing the method of using
handheld computing devices to track the referees behavioral patterns and inform the
players of any bias or favored decisions. They managed the latter, of technological
innovation by implementing web streaming of their games and the digital Content
Management System for the use of the coaches.

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2.

Answer to Question 2

Report on the transformation of a Traditional Business to an e-Business as


compared to the approach of Siemens AG Lessons to be learned
Introduction
In the global economy of the present digital age, competition among peer businesses is
fierce, almost suicidal (pun intended), so much so that giant companies like Kodak and
Blockbuster Video eventually had to file for bankruptcy (Miles, T., 2014). This was
because of the simple reason that they failed to change their business processes to suit
the changing market place, which was rapidly becoming all digital and offered many of
their customers services via the Web, such as streaming in this case for Blockbuster
Video. In this wake, Siemens AGs transformation to an e-business was timely and
effective for the company. Therefore, analyzing this transformation serves as a guideline
for assessing the feasibility of such a transformation for a traditional company and also to
enumerate its pros and cons.
Siemens AG, being a multi-national Engineering and Electronics group of companies,
has had a lot of competition, even from the whole of the last century. Companies like
General Electric, ABB, Mitsubishi, Alstom, Schneider and Areva have been its major
competitors for many years and have almost had major shares in all the industry market
areas that Siemens was engaged with. However, the early 1990s brought an even
playing ground to this market with the advent of electronic commerce. This was the time
when Siemens decided that it had to catch on with the rest of the world and ride along
with the new digital age of doing business.
Siemens Strategies and Lessons to Learn
Siemens went through a lot of business competition. The following sections will describe
what they did to counteract them and the lessons that we can learn from them.

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Employees Coordination and Knowledge Sharing


Siemens implemented network technology to connect their employees via a company
intranet. This enabled better coordination between individuals and teams, timely
dissemination of instructions and data, and better knowledge sharing. Furthermore, its
implementation of a central corporate knowledge base meant that their employees did
not have to re-invent the wheel every time a new project or problem crept up. So it is
obvious that networking your employees and creating a resource / knowledge sharing
medium is actually good for any company.
Collaboration with Suppliers and Customers
Siemens used SAP R/3 and other related software products to manage the problem of
their supply chain and handling its suppliers and customers. Enterprise Application
Software systems such as SAP (now in its later versions such as SAP ERP 6.0)
definitely help large companies organize and manage their supply chains better by being
able to handle raw material, logistics, and being able to connect with the companys
supply chain partners.
Siemens also implemented Web-based systems and e-commerce applications to
connect with its suppliers and customers to make procurements online and to take in
purchase orders online as well. This is definitely a cost effective and time saving
approach to reach out to a companys stakeholders. Any business is sure to benefit by
implementing Web-based systems to interconnect. However, for a large company or a
conglomerate, it seems even mandatory in this age.
Reduction of Overhead and Process Costs
Migrating to an e-commerce infrastructure directly reduces overhead costs and is
particularly advisable to a large organization. Siemenss implementation has proven this.
Siemens also used Business Process Standardization to re-engineer their business
processes so that there were little inter-process-variables among its many business
processes. This permitted the migration of its e-commerce applications among its
business processes easy. This also reduces material/labor wastage as they can be
reused across business processes as they have standard requirements and practices.
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Standardization is also a mandatory business practice that should be done by all


businesses.
Increasing Customer Service
For a business, it is very important that you keep the existing customer base while
expanding it. Siemens reached out to its customers through the Web. This provided easy
access to Siemens services and Siemens could also easily reach its customers. In fact,
implementing communications between an organization and its customers, particularly
via Web-Based methods and Extra-nets is a very efficient solution for a large business to
reach out to its customers. Siemens has implemented this well. It is advisable for all
large businesses to follow suit.
Conclusion
What Siemens did, to describe it in a few words, is to totally transform itself into an ebusiness. For a large company like Siemens it is the only way to survive in this very
competitive digital age. Whats more, its competitors such as GE, Schneider and others
have done the same. Since we can see that even though the cost of implementation is
somewhat high for a migration as such, its pros definitely outweigh its cost. Anyway, a
company or conglomerate of that scale and competing in Siemens Engineering market
will not survive long if it did not.

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3.

Answer to Question 3

3.1

Answer to Question 3 (a)

Introduction
After the introduction of the World Wide Web to the world by CERN computer scientist
Tim Berners-Lee at the start of the last decade of the 20 th century, web technology has
grown so much that it has gradually become an integral part of our lives. The web
browser has become the de-facto interface to network with our peers around the world
and also as a news portal and a versatile research tool. The Web has also become a
very important tool in modern corporate organizations. We will see in the following
sections, by examining five examples in the corporate world, the role of the Web in this
integration of the Web and organizational activities and what benefits it has for the
organizations.
Case 1
We will first focus on a report where Business Wire (2014a) reported that Nevadas
Center for Entrepreneurship and Technology (NCET) had awarded a small-business
insurance company called EMPLOYERS as its software company of the year. They
were recognized with this award for its web based product EACCESS, an industry-first
of its kind, for being an online portal, which streamlines and automates the processes
independent insurance agents use to generate insurance quotes and manage their
clients accounts (Business Wire, 2014a). It uses the latest web-based and also mobile
based technologies to ease the workload of its insurance agents. The web-based
services provide a fully automated agent-less insurance scheme quoting procedure by
also providing a dashboard with all the possible options for customizing and tailoring the
scheme to suit the applicant. The agents can access all this information from its
centralized and cloud-based Content Management System (CRM). As the CRM is cloudbased, the agents can access the content from anywhere with a laptop over its web
interface or with a smart phone with its mobile application.
The remarkable thing about EACCESS is that at its inception it helped the organization
so much in sharing knowledge and collaboration so well that more than a technology
roll-out, it became a major driver of new collaborations and internal partnerships that
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have bolstered EMPLOYERS organizational culture (Business Wire, 2014a). Since the
company deployed the product initially among its own employees they were able to
reduce and improve on the software development cycle time by getting rapid feedback
from its own employees and being able to assess their prototype(s) in a production
environment that was inside their own organization. As the insurance agent does not
have to be available in person with the insurance applicant, it directly improves the
productivity of the agent by availing him or her of more time to attend to other activities.
As for the client, it gives a lot of flexibility by being able to gauge the benefits of the
scheme against the premium by selecting different options of the scheme from the webdashboard and being able to generate quotes online and almost instantly. Remarkably,
internationalization of their web portal greatly benefits the process by being availing the
use of the portal to many non-native speakers of English. This reduces mistakes that can
be made by the interaction of an English-only speaking agent and a non-native speakers
of English providing a quality, albeit an automated assessment of the clients needs. In
effect this provides a greater opportunity for this portal to be used without restrictions of
language and geography.
Case 2
The second case we will focus on is a report by the same online press release
distribution site Business Wire (2014b) which details on a web-based product that the
judiciary courts can use to let self-represented litigants (or in other words, litigants who
have no lawyers but represent themselves at a court case) complete court forms and file
cases online. The web-based Guide & File application by software company Tyler
Technologies which specializes in providing software solutions to local governments,
enables courts to take all of the courts information systems, databases, knowledge,
statutes, rules and more, and put it in a format that people unfamiliar with the court
system can understand (Business Wire, 2014b). Not only this, but court systems all
around the states of the U.S. where they have embraced this technology can now share
their knowledge-base in a distributed fashion enabling timely access to all resources. It
also reduces the time a self-representing litigant needs to file the case and also provides
him/her with timely access and research material to find precedents and familiar cases
applicable to the case in question.

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Case 3
The third case where web-technology has enabled an organization can be seen by the
report from The Wall Street Journal (2014). It details a software product known as
Energov by the same software company that we talked about in the second case in the
previous paragraph, Tyler Technologies. Energov is a Planning, Permitting & Licensing
Solution designed for local/state governments that will see the conversion of the state of
the states legacy planning solution by phasing-out and by eventually replacing it with the
new product Energov.
This web based automation solution streamlines permitting processes while improving
workflow management, business processes and customer service, and provides online
access to employees and citizens (The Wall Street Journal, 2014). It will feature a
centralized database which will be updated real-time and permits sharing knowledge
across all modules with appropriate access permissions. Energov integrated mobile
accessibility to this system through mobile applications permitting the city staff to access
the system in real-time while they will be working out in the field. The citizens will also be
able to access the services that the local government provides via mobile apps. This
makes the tedious manual work of queuing processes for permits to be obtained that are
customary for traditional public organizations obsolete. In essence, the permitting and
regulatory process that we can see in normal local government institutions such as the
local municipal or provincial councils can be automated and streamlined. Even the many
inter-departmental processes can be automated and the permitting and regulatory work
can be expedited because all the data will be accessible via a central database to all the
parties that need the data.
Case 4
Our fourth case study will focus on a report from the online portal of popular magazine
Business Week (2014). It reports of technology giant Sony Corporations plans of
deploying a web-based television service in the U.S. in 2014. The interesting thing here
is that Sony already has a considerable market share in their products from the Sony
PlayStation to their wide range of televisions. Since all their Playstations are webenabled giving them a potential installed-base for web-enabled Sony products of
approximately 70 million (Business Week, 2014), Sony is planning to deploy their new
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web-based television service on PlayStations at the onset. The special feature about
their television service that sets it apart from many other competitors is that it will let the
consumer choose between live TV streams and on-demand programs.
One can argue whether this holds any benefits to the Sony Corporation to function as an
organization as a whole. Sony already has its own network of cable TV streams. It also
has its own Sony Film and TV Studios. When this new web-based TV service comes into
operation, it gets the benefit of being able offer their digital entertainment content ondemand to the services subscribing customers generating extra revenue. The initial
target base of 70 million Sony PlayStation and web enabled smart device customers will
generate a further revenue by getting nominal subscriptions to their live television
streaming service. It will also integrate the Sony Computer Entertainment company as a
whole bringing its disparate divisions of cable TV services, film studios, PlayStation
network and smart phones and tablets together by offering an integrated entertainment
experience through this new digital Content Delivery mechanism which they are trying to
implement through their new web-based television service.
Case 5
Our fifth and final case for the role of the web in an organization will be based on a report
from Business Wire (2014c). It is about Printer Manufacturer and value-added Point-ofSale solution provider Epson delivering its new ePOS technology. The gist of this
technology can be learned from Business Wire (2014c):
Its ePOS technology can manage printing in any environment (mobile, web/cloudbased and legacy), while also enabling the Epson OmniLink smart devices to
serve as peripheral connectivity hubs for mobile and cloud/browser-based POS
.. with mobile applications, such as online ordering, mobile self-service, mobile
device management, and mobile POS all working seamlessly with Epsons
ePOS technology on a variety of Epson solutions.
At its launch at the National Retail Federations 103 rd Annual Convention and
Expo (Business Wire, 2014c), Epson partnered with six different suppliers and service
providers all offering diverse products and services. For example, partnering with
anyGuest.com food can be ordered by customers through the web page of
anyGuest.com via any web enabled mobile phone or PC and EPSONs ePOS solution
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will ensure that the order will be directly routed the kitchen where the ePOS enabled
terminal will be placed. In another case, Raymark uses its Mosaic POS system on an
Apple iPad 2 to directly send data over Bluetooth to EPSONs mobile receipt printers.
This integration provides specialty retailers with extensive POS functionality, including
sales, customer profiles, loyalty and promotions, discounts, voids, tendering, and the
ability to suspend and retrieve transactions on any mobile device or fixed workstation
(Business Wire, 2014c) all through web-based ePOS technology.
As we can see, this web-based ePOS technology brings Point-of-Sales technology to a
whole new level integrating services across the retail organization. A retail agent can, for
example, listen to a customers requirements, search their database online for the
products, accept payments via credit card and issue a receipt print directly to a printer all
the while working only on his tablet PC / iPad. In other words, EPSON and its partners
have made POS terminals mobile all the way.

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3.2

Answer to Question 3 (b)

As a person who is involved in the engineering and technical fields, my interests


business-wise lie mainly in electrical and networking businesses and suppliers. Due the
growing business pressures of the business environments in which these companies
exist, they have been forced to adopt new, radical, innovative and un-tested business
models. Often, we can see that they do indeed create many opportunities for businesses
as they provide a niche business model in the first place and gradually, the customers
get more and more attracted to these new ideas/models. The very nature of humans is to
seek change. Applying new business models to their businesses revolves around this
human trait to succeed.
For instance, ABB, an electrical-equipment manufacturing company based in Germany,
Switzerland and Sweden is now a key player in the Electric Vehicle (EV) market. We will
be referring to an online white-paper by Langezaal, M. and Bouman, C. (2011). Their
business model revolves around the EV charging value chain. ABB envisions the existing
infrastructure, that of generation and distribution of electricity as it already exists, coupled
with a two new elements the infrastructure owner and the charging system operator
(Langezaal, M. and Bouman, C., 2011, p. 3). The key element that will tie these players
together will be the use of Information Technology (IT). The use of IT lies in being able to
modularize the elements in the service chain and make the options configurable for the
consumer in that he/she can chose which operator to use based on the cost and type of
services that they offer. All this information will be readily available to the consumer as
well as the other stakeholders in this EV charging value change because of the enabling
factor of IT.
The stakeholders in this value chain will be able to negotiate prices and/or throttle their
outputs to control price/demand. This is necessitated by the fact that electricity prices
vary by time of usage and also by the quantity of usage. So this whole value chain
becomes a veritable eco-system of its own. The beauty of this business model by ABB is
that it supports a stable infrastructure and service chain for the EV consumers thus
creating a positive outlook for the potential buyers of this product. Not only does this
keep up the sales, but the consumers also benefit in the long run by being able to access
and find charging stations anywhere, just like normal petrol/diesel stations are so
ubiquitous today. It will also become evident that this method of performing business
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cannot be directly defined in terms of our traditional e-commerce business models.


However, it does seem to have some traits of a Business-to-Business (B2B) model, as
the parties involved in the electricity generation, distribution infrastructure owners and EV
charging center operators do have to perform business similar to a B2B model.
At the end, what does ABB really do in this value chain? They will mold their marketing
strategies to promote this new kind of business model. They will provide the necessary
IT model to the stakeholders involved and will also market their electrical equipment
necessary to make this model viable, i.e. charging terminals for the charging stations and
distribution automation solutions for the distribution infrastructure owners. In fact, ABB
stands to derive a huge benefit from this model at all points of operation of its
stakeholders as they all use ABB products indirectly.

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4.

Answer to Question 4

Report on the latest trends in the Digital Age


Introduction
The new digital age, the cyber realm of the present (as of 2014) can verily be identified
as the age of big-data. So many things revolve around being able collect and analyze
massive amounts of data. Google, Yahoo, Bloomberg and numerous other such big-data
companies are evidence for this. A brief overview can be gotten form Digital Enterprise
(2009a) on how Digital Markets are driven and enabled by big-data providers to
streamline their business processes. (However, it seems that the DigitalEnterprise.org
website has not been kept up-to-date, so we will be just using the concepts presented
therein and reference from updated sites on the Web). Another important item to discuss
will be Digital Automata as can be seen from Digital Enterprise (2009b) which discusses
the abililty to automate the things we do on the Internet and generally, on a computing
platform.
Big Data
To understand the power of this concept we must be able to appreciate this concept fully.
Quoting from Schnberger and Cukier (2013, p. 6),
because internet companies could collect vast troves of data and had a burning
financial incentive to make sense of them, they became the leading users of the
latest processing technologies, superseding offline companies that had, in some
cases, decades more experience.
Such is the power of data. Google with its pay-per-click and AdSense Google Analytics
concepts utilizes this approach to give marketers the profiles of its search engine users.
Facebook leverages the same power of big data and being able to profile their users via
their activities on their social interactive medium such as clicking Like on certain pages.
They too in turn market this information to online businesses. At the same time,
companies like IBM are making solutions for the businesses on how to leverage these
big data troves on its own (Fast Company, 2014).
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Digital Automata
Digital Automata revolves around making lives easier for businesses as well as the
online consumers by utilizing various technologies such as the Semantic Web and
Autonomic Computing.
Semantic Web
The Semantic Web uses the Resource Description Framework (RDF) to model data
interchange on the Web (W3, 2014). This allows to link data elements together by logical
meaning via a labeled graphing method. This allows search engines, for example, derive
meaning for a search term with more meaning rather than just relying on textual data
search methods which were the norm when search engines first came into existence.
The bigger picture is that in the end, data engineering can bring more meaning by letting
web pages be linked in a logical manner rather that only by direct web links, i.e. hypertext. The end result will make data easier to manage, data can be re-used effectively,
tasks involving data manipulation can be automated and above all, for a business, the
employees will become efficient and waste less of their time trying to find data manually.
Autonomic Computing
To learn about Autonomic Computing, perhaps the best place to start is with IBM as they
are the pioneers of this field. Autonomic Computing is about computing systems where
they require very low amounts of human interaction and own their own, have the abilities
of self-configuring, self-healing, self-optimizing, and self-protecting (IBM, 2002). As can
be readily discerned, the administrative costs and the overall IT management costs will
be very less as human intervention is minimal. This is not just a conceptual idea. IBM
have already implemented these concepts in their products, i.e. the DB2 family of
Database products (IBM, 2013). This system actually allows you to initially set the
parameters for continuous health monitoring of the system core components, self-tuning
its memory, automatic storage options, automatic storage, compression, automatic
database backups, automatic re-organization and even auto-configuration commands

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5.

Bibliography

BUSINESS WEEK. (2014) Sony Plans Web-Based Television Service in U.S. This Year
(2). [Online] Available from: http://www.businessweek.com/news/2014-01-08/sony-plansweb-based-television-service-in-u-dot-s-dot-this-year-1 [Accessed: 19 th April 2014]
BUSINESS WIRE. (2014a) EMPLOYERS Named Software Company of the Year by
Nevadas Center for Entrepreneurship and Technology. [Online]

Available from:

http://www.businesswire.com/news/home/20140324005238/en/EMPLOYERS%C2%AENamed-Software-Company-Year-Nevada%E2%80%99s-Center
[Accessed: 12th April 2014]
BUSINESS WIRE. (2014b) Tyler Technologies Launches Odyssey Guide & File Solution.
[Online] Available from:
http://www.businesswire.com/news/home/20140409005329/en/Tyler-TechnologiesLaunches-Odyssey-Guide-File-Solution [Accessed: 16 th April 2014]
BUSINESS WIRE. (2014c) Epson Partners Showcase Mobile and Web-Based Printing
with Epsons ePOS Technology. [Online] Available from:
http://www.businesswire.com/news/home/20140113005193/en/Epson-PartnersShowcase-Mobile-Web-Based-Printing-Epson%E2%80%99s
[Accessed: 19th April 2014]
DIGITAL ENTERPRISE (2009a) Digital Markets. [Online] Available from:
http://digitalenterprise.org/markets/markets.html [Accessed: 21 st April 2014]
DIGITAL ENTERPRISE (2009b) Digital Automata. [Online] Available from:
http://digitalenterprise.org/automata/automata.html [Accessed: 21 st April 2014]
EMPLOYERS. (2014) EACCESS for Agents EMPLOYERS Insurance. [Online]
Available from: http://www.employers.com/agents/eAccess_Connect.aspx
[Accessed: 12th April 2014]
FAST COMPANY. (2014) The World's Top 10 Most Innovative Companies in Big Data
[Online] Available from: http://www.fastcompany.com/most-innovativecompanies/2014/industry/big-data [Accessed: 21 st April 2014]

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IBM. (2002) Autonomic Computing [Online] Available from:


http://www.ibm.com/developerworks/tivoli/autonomic.html [Accessed: 21 st April 2014]
IBM. (2013) IBM DB2 Version 10.5 Information Center [Online] Available from:
http://pic.dhe.ibm.com/infocenter/db2luw/v10r5/index.jsp?topic=
%2Fcom.ibm.db2.luw.welcome.doc%2Fdoc%2Fwelcome.html [Accessed: 21 st April
2014]
LANGEZAAL, M. AND BOUMAN, C (2011). Towards Winning Business Models for the
EV-Charging Industry - Who plays this game, what are the rules and why IT is one of the
most important competences in this industry. [Online] Available from:
http://www05.abb.com/global/scot/scot344.nsf/veritydisplay/472865366f28bfc9c1257990
003fbda2/$file/4evc200801-aren_towardswinningbusinessmodels.pdf
[Accessed: 22nd April 2014]
MILES, T. (2014) 3 Epic Fails From Giant Companies (And What We Can Learn From
Them). [Online] Available from: http://www.webbroi.com/blog/3-epic-fails-from-giantcompanies-and-what-we-can-learn-fromhtml [Accessed: 22 nd April 2014]
SCHNBERGER V. M. AND CUKIER K. (2013). Big Data: A Revolution That Will
Transform How We Live, Work, and Think. New York: Houghton Mifflin Harcourt
Publishing Company
WALL STREET JOURNAL. (2014) Kansas City, Mo., Signs $5.8 Million Contract with
Tyler Technologies for its EnerGov Planning, Permitting & Licensing Solution. [Online]
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http://www.w3.org/RDF/ [Accessed: 21st April 2014]

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6.

Marking Scheme and Comments

Learning Outcome/
Question

Maximum
Weightage

Question 1

25

Question 2

25

Question 3

30

Question 4

20

Total Marks

100%

First Marker

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Second
Marker

1st
Markers
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comments:

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Moderators
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comments:

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