Question 1
Describe the most important properties that a database system should have in order to be
successful. (10 marks)
Question 2
The R company is about to implement a new management information system. This MIS will replace an existing system, although this provides little more than a daily summary of the information maintained on the transaction processing system. The new MIS will still access the TPS data, but will provide more comprehensive analysis including historical sta-tistics and limited comparison to prices charged by competitors.
The system will be implemented by direct changeover, because the network servers have insuffi cient capacity to maintain both systems on the hard disks. The installation will also take place over a weekend to minimise disruption to managers. The system developers believe that the new MIS is so intuitive that managers will be able to use it straight away.
Requirement
Identify and discuss the risks with the implementation of the new MIS. (10 marks)
Question 3
3.1 Local area networking is used for:
(A) communication between computers within a limited geographical area (B) structuring an organisation within a division or business unit
(C) exchange of information through a trade association or region
(D) managing a complex operational issue by global interface with trade associations
and professional bodies. (2 marks)
3.2 Many large organisations have established a computer Intranet for the purpose of:
(A) providing quick, effective and improved communication amongst staff using chat rooms
(B) providing quick, effective and improved communication to staff (C) providing quick, effective and improved communication to customers (D) providing quick, effective and improved ordering procedures in real time.
(2 marks)
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INFORMATION SYSTEMS
3.3 The main advantages of a database management system include:
(A) the development of separate data sources (B) unlimited access and open communication
(C) end user fl exibility and a devolution of responsibility
(D) data integrity and elimination of duplication. (2 marks) 3.4 An expert system describes:
(A) a database built upon past knowledge and experience (B) a powerful off-the-shelf software solution
(C) an online library of operating advice and handy hints
(D) an electronic version of working papers assembled by the research and
develop-ment departdevelop-ment. (2 marks)
Each of the sub-questions below require a brief written response and are worth 4 marks each. This response can be in note form and should not exceed 50 words.
3.5 Explain why a phased system change-over for a computer development might help employees cope better with technological change. (4 marks) 3.6 Describe the main benefi ts of in-house developed information systems. (4 marks)
Question 4
TF7 is a progressive manufacturing company, which is open to new approaches and will-ing to learn from good ideas wherever they are practiced. One of the fi rst within its indus-try to invest heavily in new technology, TF7 runs its database over offi ce-wide networks and links employees’ computers by wireless local area network (LAN) connections.
TF7 has, in the past, only dealt with wholesalers but, thanks to e-mail links from a new Internet home page, it now receives a substantial number of enquiries from ultimate con-sumers of its products. TF7 feels that this will represent the majority of its business in the future.
In response to employees spending more time communicating with potential custom-ers by e-mail, TF7 is considering expanding its technology, including the connection of its database to a web server. This would enable potential customers to search for product specifi cations, availability, and delivery and price information for themselves. It would also allow customers to place orders and view shopping cart items through a browser facility.
Before making such an investment, TF7 has commissioned management consultants to conduct an organisational review.
The consultants have produced a draft report in which they outline a number of interim fi ndings, including the following:
● TF7 should gain signifi cant benefi ts over its rivals through its existing database operations.
● TF7 should consider developing further the interconnection of applications so long as contingency plans are made for the potential of systems failure.
● Although there has been considerable expenditure on hardware, TF7 now needs to invest in software applications.
● TF7’s management information systems and executive information systems are undevel-oped to the detriment of the company both operationally and strategically.
REVISION QUESTIONS E1
71 ENTERPRISE OPERATIONS
INFORMATION SYSTEMS
You work in TF7’s technical department and report directly to the Chief Executive, who has asked for a series of brief notes so that he is prepared when discussing the draft report with the management consultants.
Requirements
Provide appropriate briefi ng notes for the Chief Executive for each of the following issues:
(a) Describe the benefi ts TF7 should be enjoying as part of its current database
operations. (5 marks)
(b) Explain the value of good management information systems and executive
informa-tion systems. (5 marks)
Question 5
K1S is a fast growing chain of hair and beauty salons (shops) located throughout the pros-perous north of the country. The company is due to expand from 30 to 35 salons within the next year. K1S’s policy is to buy existing salons in fashionable city centre shopping malls which it believes are ‘underperforming’ by offering too limited a range of treatments and charging too low prices. (All K1S’s salons charge ‘top’ prices but provide excellent cus-tomer care. In addition to hairdressing services, K1S offer pedicures and manicures, teeth whitening, neck and facial massages, botox treatment and lip enhancements). K1S also plan to sell own-brand hair styling products and treatments at premium prices from its premises. K1S’s managing director (MD) sees training as critical to ‘keeping our service sophisticated, slick and professional: with a distinctive K1S style’. K1S now operates its own hairdressing training academy from purpose built premises.
The MD has however identifi ed a number of areas which need to be addressed if K1S is to continue to prosper.
● The opportunities for the use of information technology (IT) needs to grasped, particu-larly in the implementation and running of the information system network and in sup-port of management operations.
● Information systems (IS) need to be developed primarily based upon the needs of the company as a whole but also mindful of the need to support salon management opera-tions locally.
● The threat posed by competitors who are copying K1S’s approach.
The MD has appointed a management consultancy team to conduct a complete organi-sational review. Their report identifi es a number of issues, some of which are highlighted below.
● Systems are generally weak and the benefi ts of modern software applications lacking. The accuracy and completeness of information received from branches needs to improve, and there needs to be better coordination of activities. Several different systems are used and some are very ineffi cient. (For example over 40% of salon receptionist/administrators time is spent manually analysing and searching for information). Through its acquisition policy K1S has ‘inherited’ a series of salons operating independent systems of varying sophistication and effectiveness. Some still use manual systems, others use stand-alone computers, but none take full advantage of software capabilities and most only use basic software functions. It seems that the more complex a system a salon has the more the staff resistance to its full use seems to be. Internet possibilities are being missed and there
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is no virtual network. Common computerised stock records will also be required when hair styling products and treatments are sold.
● Brand development and management is crucial to competing successfully. A more recog-nisable K1S brand should be supported by consistent shop style, uniforms, paperwork, etc. and a user-friendly website needs to be developed.
● There is a need to strengthen management locally. Salons are currently managed by sen-ior stylists who have much industry knowledge but little management training or experi-ence. These senior stylists are assisted by a receptionist/administrator. Each salon keeps its own set of accounts and makes its own staffi ng arrangements including recruitment, selection, rotas, holiday cover and remuneration, etc. Managers should be appointed with responsibility for a few salons each (so leaving senior stylists to concentrate full-time on hairdressing) and a centralised HR and Finance function should be established to support salons. Staff fl exibility between salons would also lead to more effi cient operations.
You are part of the management consultancy team responsible for the report and have been asked to prepare for a discussion with the MD a series of notes on key themes.
(a) Explain how information systems (IS) should be developed to serve K1S’s manage-ment operations both centrally and within salons. (5 marks) (b) Explain how KIS’s operations can be improved through the use of information tech-nology generally and a wide area network (WAN) specifi cally. (5 marks) (c) Discuss the likely training implications associated with the installation of a new
com-puter system for K1S. (5 marks)
REVISION QUESTIONS E1