RW249/111
DUBLIN INSTITUTE OF TECHNOLOGY
KEVIN STREET, DUBLIN 8.
_____________
Year 1
______________
______________
NFORMATION
YSTEMS IN
RGANISATIONS
WITH
Question 1
(a) List five functional areas or processes of an organisation.
Solution:
Any five if the Organisation Functional Areas/Processes:
 Accounts (including billing, collection, payment, payroll)



Personnel (including recruitment, professional development, etcetera.)
Sales (and Marketing)
Purchasing


Inventory / stock control
Production
(5 x 1 marks)
(5 marks)
(b) Give examples of three Information Technology Systems that might be used by senior executives.
Solution:
Senior management information systems:
1

 Management Information System (MIS) - computer system that provides management information;
◦
A user will normally have to access one or more databases to get the information required.
(2 marks)
 Decision Support System (DSS) supports decision making i.e. provides information on demand (ad hoc) and as simply as possible.
(1 mark)
 Executive Information Systems (EIS) are integrated systems to suit senior management;
◦ senior management historically have been resistant to systems - but this has changed a lot in recent years – out of necessity.
(2 marks)
(5 marks)
(c)
Compare the terms, ‘data’, ‘information’ and ‘knowledge’.
Solution:
Strategic level management is responsible for overall strategy and direction -
Data are streams of raw facts representing events occurring in an organisation or its environment before they are arranged in a form that people understand and use.
Information is data that has been shaped into a format that is meaningful and useful to human beings.
Data Converted to Information
(3 marks)
Knowledge
–
New knowledge may be created from existing knowledge using logical inference.
•
Information = Data + Meaning
•
Knowledge = Information + Processing
(2 marks)
(5 marks)
(d) Describe Information Technology in terms of organisational strategy.
Solution:
Information Technology (IT) will have its own strategies that either follow the organisation’s structure or will restructure the organisation because of those technological strategies
(2 marks)
Future organisational plans should be incorporated in re-evaluation. For example, do executives plan on keeping tight managerial control on organisational activities or will they allow divisions with autonomous control - i.e. is there an emphasis on centralised or
2

decentralised control? Which organisational framework is most conducive to envisioned goals and strategies? If making structural changes, what would the restructure cost in terms of people and equipment?
The 1990's and this decade have seen the realisation of an information economy and a
‘post-industrial society’ where information processing activities and knowledge skills are critical to industry.
(6 marks)
In this context Information Technology (IT) is already being used by organisations for strategic advantage. In this case strategic change is important to organisations.
(2 marks)
(10 marks)
Question 2
(a) What are the uses of technology as applications for Customer Relationship
Management (CRM), Contract and Account Management, Sales and marketing?
Solution:
Customer Relationship Management (CRM) uses technology to
–
Create a cross-functional enterprise system that integrates and automates many of the processes in sales, marketing and customer service that interact with customers and to
–
Create a framework of web-enabled software and databases that integrate these processes with the rest of the company’s processes.
Contract and Account Management;
– Helps sales, marketing and service professionals capture and track data about past/planned contacts with customers/prospects
Sales
–
Provides Sales Representatives (reps) with the software tools and data they need to support and manage sales activities
– ‘Cross-selling’ is trying to sell a customer of one product with a related product
– ‘Up-selling’ is trying to sell customer a better product than they are currently seeking
Marketing and Fulfillment help marketing professionals accomplish direct marketing campaigns by tasks such as
–
Qualifying leads for targeted marketing and scheduling and tracking direct marketing mailings.
(10 marks)
(10 marks)
3

(b)
Expand on the term of ‘Business Process Reengineering’.
Solution:
Business Process Reengineering (known to many as BPR) is a fancy term for changing the organisation radically
(1 mark) by, for example;
– Reducing the ‘cycle time’ (CT) for production, customer service, etcetera.
(1 mark)
– Taking a ‘customer-focused approach’
(1 mark)
–
The empowering of employees (giving them more autonomy)
(1 mark)
–
Restructuring the organisation or departments with, for example, a teambased structure
(1 mark)
(5 marks)
(c) List some of the general software selection guidelines, as associated with software procurement.
Solution:
Software - general selection guidelines:
Software, not hardware, should drive almost all Information Systems selection decisions.
The organisational (business?) need is generally to have an Information System made up of system software, hardware, application software
(3 marks)
• Software generally has a longer life than the hardware on which it runs. Data has even greater longevity.
•
The Information System function should not be migrated to a new architecture without a very good reason - so compatibility with the current architecture should score highly.
•
If using software from more than one vendor, connecting components from one or more vendors is generally difficult.
• Because of the view of hardware being the first aspect of the new system to ‘wear out’, followed by software and, eventually, the data, the choice of architecture is important.
• The architecture should allow for the inclusion of new hardware in 2 – 5 years, software in 2 – 7 years and the reformatting of data in 5, 10, 20… years.
(Representing a fairly typical Information System in a medium-size organisation.)
• Connecting applications from different vendors is usually technically feasible - whether it is desirable or not depends on a trade-off between benefits and complexity.
4

•
Information requirements can never be fully defined in advance, so the selected system or subsystems must be capable of adaptation and growth.
(7 marks)
(10 marks)
Question 3
(a) What are the tasks that a systems analyst might carry out?
Solution:
Systems analysts bridge the gap between the various stakeholders to accurately define technical requirements and define the Information Systems scope.
The systems analyst is skilled at working with end-users to determine what their computational needs are.
The systems analyst has some organisational experience which is useful in determining if a user's requests are feasible – but, really, their perspective is mainly that of the
technology.
(4 marks)
What a systems analyst does
•
Conducts feasibility studies (with alternatives)
•
Liaises with users and determines requirements
• Finds out facts important to the design of the proposed system
•
Determines human and computer procedures that will make up the new system
•
Designs data storage (files) and interfaces
•
Writes program specifications
•
Tests programs and systems
•
Designs implementation procedures
•
Documents the system
• Plans, monitors and controls the systems development
•
Reviews how successful the project was
•
Oversees the maintenance of the system
(6 marks)
(10 marks)
(b) Give an account of Supply Chain Management – to include the goals of this type of management and the causes of potential problems when Supply Chain
Management is used by an organisation.
Solution:
Supply Chain Management is a cross-functional inter-enterprise system to help support and manage the links between a company’s key business processes and those of its suppliers, customers and business partners.
Supply Chain Management (SCM) can be viewed as an application to match strategic objectives for many firms -
5

–
The right products
–
The right place
– The right time
–
In the proper quantity
–
At an acceptable cost
(5 marks)
SCM Software helps organisations reengineer and integrate the functional SCM processes
The goals of SCM is to establish fast, efficient, low-cost network of business relationships or a supply chain to get a company’s products from concept to market.
A supply chain is made up of interrelationships with suppliers, customers, distributors, and other businesses that are needed to design, build and sell a product.
Causes of problems with SCM:
•
Lack of proper demand-planning knowledge, tools and guidelines
• Inaccurate or over-optimistic demand forecasts
•
Inaccurate production, inventory and other data
•
Lack of adequate collaboration within the company and between partners
•
SCM software considered immature, incomplete and hard to implement
(5 marks)
(10 marks)
(c) What are the goals of an Enterprise Collaboration System?
Solution:
Enterprise Collaboration Systems goals are to:
•
Communicate - share information with teams and work groups
(2 marks)
•
Coordinate - coordinate individual work efforts and use of resources with teams and work groups
(2 marks)
•
Collaborate - work together cooperatively on joint projects and assignments
(1 mark)
(5 marks)
Question 4
(a) List the benefits and problems associated with outsourcing?
Solution:
Any ten of the following points:
Benefits of outsourcing
6

 Reduces costs as a result of economies of scale.
◦
Vendor consolidates activities for a number of clients.
◦
The client avoids large capital investment.
 Enables a strategic business focus.
◦
The organisation can concentrate efforts on a manageable number of activities.
◦
Improve financial predictability and reduce uncertainty associated with
IT.
 Facilitates technology ‘leapfrogging’ or ‘catch-up’.
 Enables leveraging of IT expertise.
◦
Internal IT staff to focus on higher priority activities.
◦
IT staff can give greater attention to key business issues.
 It offers a way for an organisation to receive the benefits of the latest hardware and software - without making all the purchases themselves by, for example, leasing software.
Problems related to outsourcing
 Some loss of strategic flexibility.
 Potential irreversibility if problems occur.
 Organisations choosing outsourcing without negotiating a detailed contract may also encounter hidden costs or dramatic increases upon renewal.
 The outsourced vendor often fails to support the organisation’s business needs.
 Internal improvements could be neglected.
 Human Resources effects – the new applications may not suit some employees.
 It may change the role of internal IT staff to maintenance staff.
(10 x 1 mark)
(10 marks)
(b) As a Project Manager, how might you identify the scope of a project?
Solution:
Issues in Project Management:
Establish the Scope of the Project
This usually means making a statement on:
–
Key deliverables
–
Timescales and budgets
–
Performance standards
– Documentation standards
–
Verification, validation and testing
– Keeping strictly within the agreed scope to avoid ‘scope creep’
(5 marks)
(5 marks)
(c) Outline five factors and considerations that might be related to the task of acquiring hardware.
7

Solution:
Hardware – evaluated with a view to selection will have the following factors examined
(any five if the following six):
–
Performance
• Speed, capacity, throughput
–
Cost
•
Lease or purchase price
•
Cost of operations and maintenance
–
Reliability
•
Any risk of malfunction and maintenance requirements will be identifued
• Error control and diagnostic features will be specified
–
Compatibility
•
With existing hardware and software?
• With hardware and software provided by alternative vendors?
–
Future proof’?
•
What is the speculated product life cycle?
•
Does it use a new, untested technology?
• Does it run the risk of obsolescence?
–
Ergonomics
• Is the equipment “human factors engineered”?
• Is the hardware user-friendly?
•
Is the hardware safe, comfortable and easy to use?
(5 x 2 marks)
(10 marks)
Question 5
(a) What is involved in software licensing when a software supplier provides software to an organisation?
Solution:
Usually, the software supplier is not selling ownership of software to an organisation but the permission to use it as they wish. This leaves the supplier able to provide copies of the software to other people or organisations.
(2 marks)
Usually a contract is drawn up – called the licence agreement.
There are variations in such agreements based on clients’ needs for software and its use
– for example, there may be distribution restrictions established by the supplier.
(3 marks)
(5 marks)
8

(b) In the context of corporate law, describe a legal contract and give one example of a contract for a technical product or service.
Solution:
Contracts are legal documents defining the legal implications of buying, selling or becoming involved with products and services of – in this MIS context – hardware and software systems and the issues surrounding them.
Contracts can take many forms – what follows is a general, basic description of a contract.
•
The structure of a contract in our context is, generally:
–
The date on which the contract was entered into
–
The names and addresses of those entering the contract
– A description of what the contract is about – having titles such as
‘Background’, ‘Recitals’ or ‘Whereas’
–
Definitions of terms used in the contract
– Provisions made by one party (e.g. Supplier)
–
What must be paid to the provider (supplier)
Buying hardware, software and/or services (for support and maintenance, very often) often involves a contract – a contract for procurement or a contract of procurement.
(5 marks)
Example;
The details for a hardware procurement contract might include:
– A description of the hardware
–
A warranty for the quality of the hardware
–
Delivery dates
–
Price
–
Acceptance testing (description)
–
Future maintenance description
–
Training
(5 marks)
(10 marks)
(c) Outline why a system security programme might be established by an
Information Systems Department.
Solution:
Integrated security and privacy requirements are critical to IT management and protecting an organisation’s information An organisation may be required by organisational policy or compliance to the law to have an information security programme in place. A security programme may be put in place to insure against identified problems or risks. A security programme may be managed by named individuals in Management positions in any part of the organisation.
(5 marks)
9

In this context information security is cited with the IT Department through the proper implementation of information systems. The goal of a security programme is to provide assurance that there exists security to:
•
Provide for timely and reliable availability of information and systems
•
Preserve confidentiality of data
• Safeguard integrity of data
A security control is a specific action or procedure provided to protect confidentiality, integrity and availability of information/systems.
(5 marks)
(10 marks)
10