Business Capabilities

Question 1 (10 marks)

In March 2016, there were almost 3.3 billion people worldwide who had access to the Internet at home (i.e., Internet users). Since its inception, the number of users has seen tremendous growth, from only around 14 million users in 1993 to 1 billion users in 2005, 2 billion users in 2010, and 3 billion users in 2014. Having grown exponentially in the early years, the growth in user numbers has slowed to less than 10 percent per year, as worldwide Internet penetration has surpassed 35 percent. In 2016, almost 10 percent of the world’s Internet users were located in the United States, with an Internet penetration of 84 percent. However, other countries are catching up. In 2013, China, with an Internet penetration of 46 percent (and much room to grow), accounted for over 23 percent of worldwide Internet users; similarly, only 16 percent of India’s population had access to the Internet, accounting for 7 percent of worldwide Internet users.

Search the Web for the most up-to-date statistics, then answer the following questions:

1. Compare and interpret these numbers in relation to the above mentioned numbers. (2 marks)
2. Discuss what the new numbers’ change mean for globalization and possible arising opportunities, taking into account Porter’s 5 competitive forces and 3 competitive strategies. (8 marks)

Question 2(10 marks)

Suppose your company has an e-commerce Website for selling different types of goods and services. Discuss the followings:

1. Ethical concerns associated with storing and analysing user data? (2 marks)
2. Security threats, challenges and vulnerabilities that face this Web site and how to minimize them.

(8 marks)

Question 3 (10 marks-2.5 each)

Answer the following questions:

1. Explain the benefits of online analytical processing (OLAP) for business.
2. Discuss Cloud Computing in terms of fuelling open innovation.
3. Distinguish between the traditional File Organisation (or Flat files) and DBMS.
4. Explain the connection between the Firm, its IT Infrastructure and Business Capabilities