Acct 504 Week 1 Quiz
CGA-CANADA
MANAGEMENT INFORMATION SYSTEMS 2 EXAMINATION
June 2005
Marks
20
Time: 4 Hours
Question 1
Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations.
Note:
2 marks each
a.
Which of the following statements is true in describing how IS supports business transformation?
1) Reengineering is a benefit that organizations can derive from the implementation of enterprise-wide information …show more content…
systems, such as SAP and Oracle.
2) Information systems achieve competitive advantage for organizations by automating all tasks that need to be done.
3) In an IS supported value chain, human resources management is considered to be the primary activity. 4) Expert systems are used in the value chain to replace human decision-making.
b. Which statement is true in describing successful systems development projects?
1)
2)
3)
4)
c.
They allow for flexible results and goals.
They do not allow conflicting goals and objectives among project team members and end users.
They encourage user involvement, not management involvement.
They set a definitive timeline.
Which of the following is true in describing systems implementation?
1) Any change or improvement to the IT infrastructure should be completed before implementation starts. 2) Phased conversion is considered to be the least risky conversion approach.
3) Programming and coding are considered part of the implementation process.
4) Regardless of which conversion approach is adopted, all necessary hardware and software should be in place before the conversion starts.
d. Which of the following is a benefit of an ERP system?
1)
2)
3)
4)
e.
It may reduce the required level of inventory.
It increases the financial closing cycle.
It reduces the information visibility.
It increases the IT costs in the long run.
Which of the following is a correct statement about m-commerce?
1) The wireless web supporting the m-commerce is a mobile version of the wired Internet.
2) WML stands for wireless markup language, which is based on XML and optimized for tiny displays. 3) Currently, most wireless networks are an extension of an extranet.
4) PDAs are not an example of wireless computing devices.
Continued...
EMS2J05
©CGA-Canada, 2005
Page 1 of 6
f.
Which of the following statements is correct in describing user authorizations?
1) The inclusion approach implies all users start with access to everything; in other words, all users are inclusive.
2) Data access rules should be determined by end users because only they know what type of data they need in order to perform their tasks.
3) Authorization includes defining user access to different application software.
4) The exclusion approach is highly recommended because it is less expensive to implement.
g. Which of the following statements is correct in describing different types of expectations one might have toward the development of a new system?
1)
2)
3)
4)
The ideal expectation outlines the critical features of a new system.
The desired expectation is less important than the ideal expectation.
The minimally required expectation lists the basic requirements of a new system.
Normative expectation describes one’s opinion of what the new system should do.
h. E-commerce and e-business are supported by many technologies. Which of the following is a correct statement about these technologies?
1)
2)
3)
4)
i.
Which of the following statements is correct in describing e-business and e-commerce?
1)
2)
3)
4)
j.
All e-business must use EDI for data interchange.
Electronic funds transfer is a subset of EDI.
Internet commerce is a subset of e-commerce.
E-service stands for selling services rather than goods on the Internet.
Developing an IT strategic plan involves which of the following activities?
1)
2)
3)
4)
EMS2J05
E-commerce server software is designed to support B2C only.
Webhousing is used to store data collected about web site visitors.
Collaborative filtering software supports collaborations between several online customers.
Web performance monitor tools are used to monitor the performance of merchandise sold online.
Determine which tool or methodology will be used to structure the planning process.
Outline a detailed IT infrastructure with systems design.
Prepare process and data models.
Identify applications to be implemented.
©CGA-Canada, 2005
Page 2 of 6
8
Question 2
The company that you work for employs a large number of local sales people in various cities across the country. The company is considering buying a wireless laptop computer for each sales person. The sales department has argued strongly that funds should be made available for the sales people to buy their preferred brand and model, especially because many of them have already been using laptop computers.
The IT department agrees that it is a workable strategy and is ready to make the recommendation to the
VP-Finance.
Required
Write a memo on behalf of the IT manager to the VP-Finance, with a copy to the manager of the sales department. Explain the factors that should be considered in making a hardware purchase and the role of setting standards in IT implementation.
Restrict your memo to approximately 300 words. The memo should be professionally composed without using jargon. Make sure that your real name is not shown in any part of the memo.
12
Question 3
You work for a consulting firm that specializes in implementing enterprise systems. Your role on the team is to explain to the clients the importance of change management in this process.
Required
Prepare a slide presentation that addresses the following points:
i)
ii) iii) iv)
Why change management is important
The change process
Potential resistance to change
Successful change management
Using the format below, prepare up to 6 presentation slides, including title and summary slides and related speaker’s notes.
Slide #
Speaker’s notes related to each slide
Slide content
10
Question 4
In the following parts, state whether you agree or disagree with the statement and provide an explanation to support your position. Answer each part independently.
Required
a.
In negotiating a contract with a computer hardware or software vendor, it is not desirable to have an arbitration clause because arbitration only contains general rules and lacks legal rigor.
b. Many online content providers adopt the advertising pricing model because the advertising model is very effective for most vendors, and readers prefer this mode of advertising.
c.
Groupware technologies play an important role in knowledge management.
d. Outsourcing IT operations to firms specializing in systems development and design allows a company to enjoy very flexible systems that are quickly developed.
EMS2J05
©CGA-Canada, 2005
Page 3 of 6
10
Question 5
Sunny Travel is a Vancouver-based travel agency. Its main business is selling packaged tours to travellers in Canada. For each package sold, the process is as follows.
The customer either calls or visits Sunny Travel to inquire about available packages. Sunny Travel provides the information with a quotation to the customer. When a customer decides to purchase a package, the customer completes a booking form with personal information and pre-pays the package.
Upon receipt of the completed booking form, Sunny Travel either deposits the cheque or obtains approval from the credit card company. Sunny Travel sends a booking confirmation to the customer when the payment is cleared. Five days before departure, Sunny Travel contacts the destination sites and hotels to inform them of the names of the tourists. The hotels confirm the reservations with Sunny Travel.
Required
40
6
a.
Construct a level 0 context diagram for this scenario.
4
b. Suppose you want to create an information system to track the customer’s preference of various packages. Create 2 entities with at least 3 attributes for each entity and show their relationship in an
ER diagram.
Question 6
Flexible Solutions is a company that provides temporary staff to large corporations, small businesses, and individuals. It started 15 years ago when Heather, a stay-home mom with two young children, was asked to help out at a retail store in her neighbourhood during holiday seasons. Being kept busy by her children,
Heather referred her best friend to the store owner instead. One thing led to another, and 15 years later,
Heather owns an employment agency with more than 30 staff, a pool of hundreds of people with various qualifications available for part-time work at flexible hours (known as associates), and a long list of companies and individuals (known as clients) hiring temporary workers through Flexible Solutions.
Heather believes that her success can be best explained by three key concepts: quality, flexibility, and variety. Flexible Solutions always aims to provide the best services in a wide variety of areas to meet its clients’ needs.
The Organization
The operations at Flexible Solutions are divided into functional departments: accounting, marketing, and administration. Heather manages the entire company and is in charge of all HR decisions.
There are 5 staff members in the accounting department.
One person handles internal accounts, including staff payroll. Three staff members handle collections from the clients and payments to the associates based on the submitted time sheets. The manager oversees the operations and reports to Heather.
The marketing department has 4 people. Their main responsibilities are recruiting new associates to be added to the pool and maintaining good relationships with the clients. They are also responsible for analyzing the trends in the industry and forecasting future needs of their clients so that Flexible Solutions is better prepared for the market.
The administration department is the largest department. It assigns associates to clients, completes worksheets, and conducts training workshops. The department is further divided into areas based on types of services provided: manufacturing for labour-intensive jobs, retail for in-store sales, office administration for clerical support, technology for IT-related jobs, skilled trade for certified trades, and domestic services for household and office cleaning. In addition, 3 staff members are responsible for interviewing potential associates and training registered associates in the …show more content…
pool.
Continued...
EMS2J05
©CGA-Canada, 2005
Page 4 of 6
The Processes
The process at Flexible Solutions can be described as simple in principle, but complicated in practice.
When a request from a client is received either by e-mail or by phone, the person who answered the phone or checked the e-mail determines to which area the request should be transferred. An administration staff member matches the qualifications and the availability of the associates to the client’s request. The matching process has two steps. First, key words are used to search the associate file to find possible matches. Then, the employee manually selects the most suitable person who is available for the job. The associates are required to complete a timesheet upon completion of an assignment and submit it to the office. The timesheets are input into the accounting system and payments are issued on a bi-weekly basis.
Flexible Solutions relies heavily on the judgment, knowledge, and experience of its office staff in finding a good match and assigning associates in a most efficient and effective manner.
Associate recruiting involves aggressive advertising in the public media to invite people to register with
Flexible Solutions, searching on the Internet for resumes, and through word of mouth. Skilled workers need to pass a relevant test before being added to the pool. All associates are required to attend an orientation workshop when they first register with Flexible Solutions. Those who are interested can sign up for additional workshops on different topics by paying a nominal fee.
Information Technology
Similar to many companies, there is no IT strategy at Flexible Solutions although computers are used extensively to support most office functions. One technical person supports and maintains all systems.
Each employee has a desktop computer connected to a local area network (LAN) for file and printer sharing. The LAN runs on a Microsoft Windows 2000 platform. Microsoft Office Suite is installed on the server. All employees have access to the Internet. E-mail is set up for communications internally and with the associates and clients.
The accounting department uses AccPac for all accounting and payroll functions. The vendor customized
AccPac to meet Flexible Solutions’ need in entering the time sheet information and generating payments to the associates. Time sheets are input as a batch job on a weekly basis.
A database using Microsoft Access was created by Flexible Solutions to store information about the associates’ qualifications, availability, and work history.
All employees can access and update the database. For example, the interviewing and training member usually creates a record for each new person recruited and updates the additional training information, while the administrative staff will record the assignments of each individual.
In addition to the database, hard copies of applicants’ forms and resumes are stored in a massive file cabinet. Similarly, a hard copy of information pertaining to past, present, and possible clients is also kept.
Client information is saved in an Excel spreadsheet file. This file was first created many years ago as file-merging information kept by marketing, accounting, and administrative staff. As the client list has grown, the file has become extremely large with much duplicated, out-dated, and inaccurate information.
All employees have access to this file but no one is responsible for keeping it up-to-date and accurate.
Many employees cut and paste from the master file and create their own files containing up-to-date information about the companies that they deal with frequently. Heather realizes that something has to
be done about this file. However, with many companies and individual clients who either no longer exist or have moved and changed ownership, it is almost impossible to bring the file completely up-to-date.
Besides, Heather believes that according to the “80/20 rule”, 80% of the company’s business is being provided by the 20% of the clients that they are keeping good records of.
Continued...
EMS2J05
©CGA-Canada, 2005
Page 5 of 6
The Challenges and Opportunities
Opportunities increase for Flexible Solutions as more and more companies either outsource aspects of their operations or opt to hire short-term contractual workers. The marketing department is predicting at least a 15% growth rate in the next 2 years. Heather knows that this will present an additional load on her staff already operating at their extreme capacities. Upon reviewing the processes and the technology currently used at Flexible Solutions, Heather wonders if the processes could be re-engineered for better efficiency to cope with the predicted growth.
Required
As an IT consultant, you are asked by Heather to prepare a report outlining possible IT strategies for
Flexible Solutions to support its future growth.
Your report should follow the standard case analysis format, with the following section headings:
5
2
5
15
5
3
5
1.
2.
3.
4.
5.
6.
Executive Summary
Introduction
Problem Identification
Alternatives and Analysis
Recommendations
Conclusion
Note:
You should provide clear and compelling evidence for any arguments presented in the analyses and the recommendation. 5 marks are allotted for proper presentation and layout, correct grammar and spelling, as well as professionalism in the writing.
END OF EXAMINATION
100
EMS2J05
©CGA-Canada, 2005
Page 6 of 6
MANAGEMENT INFORMATION SYSTEMS 2 [MS2]
EXAMINATION
Before starting to write the examination, make sure that it is complete and that there are no printing defects. This examination consists of 6 pages. There are 6 questions for a total of
100 marks.
READ THE QUESTIONS CAREFULLY AND ANSWER WHAT IS ASKED.
To assist you in answering the examination questions, CGA-Canada includes the following glossary of terms.
Glossary
From David Palmer, Study Guide: Developing Effective Study Methods (Vancouver: CGA-Canada, 1996).
Copyright David Palmer.
Compare
Contrast
Criticize
Define
Describe
Diagram
Discuss
Evaluate
Explain
Examine qualities or characteristics that resemble each other. Emphasize similarities, although differences may be mentioned.
Compare by observing differences. Stress the dissimilarities of qualities or characteristics. (Also Distinguish between)
Express your own judgment concerning the topic or viewpoint in question. Discuss both pros and cons.
Clearly state the meaning of the word or term. Relate the meaning specifically to the way it is used in the subject area under discussion. Perhaps also show how the item defined differs from items in other classes.
Tell the whole story in narrative form.
Give a drawing, chart, plan or graphic answer. Usually you should label a diagram.
In some cases, add a brief explanation or description. This calls for the most complete and detailed answer. Examine and analyze carefully and present both pros and cons. To discuss briefly requires you to state in a few sentences the critical factors.
This requires making an informed judgment.
Your judgment must be shown to be based on knowledge and information about the subject. (Just stating your own ideas is not sufficient.) Cite authorities. Cite advantages and limitations.
In explanatory answers you must clarify the cause(s), or reasons(s). State the “how” and
“why” of the subject. Give reasons for differences of opinions or of results.
Illustrate
Indicate
Interpret
Justify
List
Outline
Prove
Relate
Review
State
Summarize
Trace
Make clear by giving an example, e.g., a figure, diagram or concrete example.
Provide a short explanation.
Translate, give examples of, solve, or comment on a subject, usually making a judgment on it.
Prove or give reasons for decisions or conclusions. Present an itemized series or tabulation.
Be concise. Point form is often acceptable. (Also Enumerate or Identify)
This is an organized description. Give a general overview, stating main and supporting ideas. Use headings and sub-headings, usually in point form. Omit minor details.
Establish that something is true by citing evidence or giving clear logical reasons.
Show how things are connected with each other or how one causes another, correlates with another, or is like another.
Examine a subject critically, analyzing and commenting on the important statements to be made about it.
Present the main points in brief, clear sequence, usually omitting details, illustrations, or examples.
Give the main points or facts in condensed form, like the summary of a chapter, omitting details and illustrations.
In narrative form, describe progress, development, or historical events from some point of origin.
CGA-CANADA
MANAGEMENT INFORMATION SYSTEMS 2 EXAMINATION
June 2005
SUGGESTED SOLUTIONS
Marks
20
Time: 4 Hours
Question 1
Note:
2 marks each
Sources:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
8
1)
4)
3)
1)
2)
3)
4)
2)
3)
1)
Topic 1.3 (Level 1)
Topic 3.1 (Level 1)
Topic 5.1 (Level 1)
Topic 5.7 (Level 1)
Topic 8.6 (Level 1)
Topic 9.3 (Level 1)
Topic 10.4 (Level 1)
Topic 6.2 (Level 1)
Topic 7.1 (Level 1)
Topic 2.6 (Level 1)
Question 2
Source: Topic 2.2 (Level 1)
MEMO
To:
From:
Date:
Cc.:
VP-Finance
Manager, IT Department
August 2004
Manager, Sales Department
Subject: Considerations for Laptop Computer Purchases
I commend the company’s recent decision to embrace IT technologies by providing our field sales people with laptop computers. This move should give our sales force a substantial competitive edge in the industry. I would like to take this opportunity to point out a few factors to be considered in making hardware purchase decisions and the role of standards in setting IT strategies.
In choosing a laptop, regardless of whether it’s a centralized decision or the individual choice of the end users, in addition to the quality of the product, it is important to evaluate the upgradeability, expandability, and connectivity of the equipment. It is also important to evaluate the support, the warranty, and the costs associated with repair and downtime due to machine breakdown. It would be useful for the
IT department to establish a benchmark for evaluating these factors.
Continued...
SMS2J05
©CGA-Canada, 2005
Page 1 of 9
Some people might argue that setting company standards might impose restrictions on individual needs.
However, having standards to limit the range of technologies in use and to set minimum system requirements at the organization generally results in lower costs to the organization, better integration of applications, greater ease in providing technical support, and fewer problems in ensuring adequate performance. In the long run, many companies have found it less expensive and easier to manage to have the same applications and hardware technologies across the board.
I understand that you will soon make a decision on the recommendation to implement this initiative. I will be more than happy to offer my expertise should you wish to discuss these points further.
Note:
Assign 6 marks for the content, 1 mark for professionalism, and 1 mark for format.
12
Question 3
Source: Topic 10.2 (Level 1)
Slide #1
Embracing the change
•
•
•
•
•
Importance of change management
The change process
Potential resistance to change
Successful change management
Summary
Congratulations on making a very important decision to implement an ERP system.
Today, I will address different aspects of how to manage the change in order to reduce its negative impact on the organization.
Slide #2
Importance of change management
•
•
•
•
•
Processes re-engineered
Organizational structure modified
Working relations altered
Skills requirements changed
Change management affects the success of an IT project
Implementation of a new IT project requires significant changes on the part of people whose tasks are often altered due to new IT implementation. It is important to address the changes introduced to the organization, its processes, and its people. Poor change management often leads to the failure of an
IT implementation.
Slide #3
The change process
•
The Lewin-Schein Model
Unfreeze
Change
Refreeze
The Leonard-Barton Model
Change as a continuing set of cycles of adaptation of the technology and the user
{
{
{
•
{
Based on the Lewin-Schein Model, it is imperative to recognize the importance of convincing people of the need to do things differently,
i.e., why the change is necessary. It is also useful to note that technology could be modified by people during the change process. According to the Leonard-Barton Model, both people and technology can be adapted to reach final alignment. Continued...
SMS2J05
©CGA-Canada, 2005
Page 2 of 9
Slide #4
One reason for resistance to change could simply be that staff are used to how things were done in the past. Sometimes they don’t have the ability to deal with changes. The resistance could also stem from the fact that people are losing power, especially those who will lose power due to shared information. Perhaps people don’t think the change is worth the trouble. Various forms of resistance might include public debate, benign neglect, resource diversions, inappropriate staffing, problem expansion, and sabotage.
Potential resistance to change
•
•
•
•
Social inertia
Ability to change
Change of power structure
Change not valuable
Slide #5
Open communication involving users at an early stage of the project is crucial to the success of an
IT implementation. This could be done through meetings, newsletters, and parties. Education focuses on the conceptual level of the system while training emphasizes how to use the system.
It is important to identify a champion who actively and enthusiastically promotes the project.
Finally, change management often becomes a learning process for the individuals and the organization as a whole.
Successful change management
•
•
•
•
Communication
Education and training
Championship
Learning process
Slide #6
Summary
•
•
•
•
Recognize the importance of change management Understand the change process
Identify resistance to change
Implement change management
To summarize, I would like to stress that we will work with your organization closely to help you understand the change process, identify the sources of resistance, develop a strategy for change management, and help you implement the strategy step by step.
Note:
Assign 2 marks for each slide. 1 mark for content of the slide, 1 mark for speaker’s notes.
SMS2J05
©CGA-Canada, 2005
Page 3 of 9
10
Question 4
a. Source: Topic 3.5 (Level 2)
Disagree. An arbitration clause specifies the mechanics of the arbitration process and includes a specific reference to the applicable arbitration rules. An arbitration clause can prevent unnecessary litigation arising from contract disputes. Therefore, it is desirable to have an arbitration clause in a contract. b. Source: Topic 7.4 (Level 1)
Disagree. The reason many online content providers adopt the advertising model is neither because it is an effective mode of advertising nor that it is welcome by the consumer. It is because most readers are reluctant to pay for the free content online. Therefore, the content providers are forced to sell online advertising to other vendors.
c.
Source: Topic 6.3 (Level 1)
Agree. Knowledge management involves activities to code, store, and share the knowledge that employees have and use in their jobs. Groupware technologies can help create repositories for knowledge and provide directories to access the knowledge. It can also provide a map of people in the organization to help identify who has the specific knowledge of a particular problem.
d. Source: Topic 9.1 (Level 1)
Disagree. It might be true that outsourcers could develop a system much faster due to their expertise.
However, the systems are often designed to meet many companies’ specific needs and, hence, the lack of flexibility.
Note:
1
/2 mark for agree/disagree and 2 marks for supportive argument.
SMS2J05
©CGA-Canada, 2005
Page 4 of 9
10
6
Question 5
a. Source: Topic 4.3 (Level 1)
Level 0 Context Diagram for Sunny Travel
Booking Information
Customer
Clearance
Bank
Inquiry
Deposit
Quotation
Sunny Travel
Booking Confirmation
Approval Request
Credit Card
Company
Tourist information
Approval
Reservation
Confirmation
Sites and Hotels
Note:
1 mark for showing Sunny Travel at the center of the context diagram, 1/2 mark for each external entity and 1/2 mark for each data flow, to a maximum of 6 marks.
4
b. Source: Topic 4.4 (Level 1)
ER Diagram for the CUSTOMER and PACKAGE entities:
Purchase
PACKAGE
CUSTOMER
M
Key: Customer_ID
Customer_Name
Customer_Address
M
Key: Package_Code
Package_Date
Package_Price
Note:
1 mark for each entity, 1 mark for the relationship, and 1 mark for the attributes, to a maximum of 4 marks.
SMS2J05
©CGA-Canada, 2005
Page 5 of 9
40
5
Question 6
Executive Summary
The objective of the report, the key problems, and the recommendations should be outlined in the executive summary. It is very important to note that the executive summary is written and submitted to the company, not to the examiner.
2
Introduction
A brief summary of how this report is structured and what approach is taken to address the issues should be included in the introduction.
5
Problem Identification
Challenges in this case include:
•
•
•
•
•
15
data integrity lack of systems integration need for new databases and better management of data data security and confidentiality issues need for IT strategy to support business growth
Alternatives and Analysis
Possible alternatives in the following areas:
•
•
•
•
5
IT strategy planning
Systems integration
Database development
Internet applications
Recommendations
Make a recommendation with justification.
3
Conclusion
Conclude the report by stating the limitations of the recommendation and possible future improvements.
5
Note:
5 marks for proper presentation (including short intro/purpose of report, headings/general layout, conclusions and recommendations), supporting evidence, correct grammar and spelling, and professionalism in the writing.
A sample solution is provided for studying purpose. Please note that this suggested solution is more of an outline than a complete solution, and that each section can be expended to make it more complete and comprehensive. Continued...
SMS2J05
©CGA-Canada, 2005
Page 6 of 9
Flexible Solutions
a.
Executive Summary
Flexible Solutions needs to operate more efficiently and effectively to handle the projected 15% growth in the next 2 years. Although its current IT infrastructure appears to be adequate in supporting the operations, several practices in data handling present serious problems in the area of operational efficiency, data integrity, and privacy of information.
The objectives of this report are to identify the problems of Flexible Solutions’ current IT practice, to outline changes that could be introduced to correct these problems, and to make recommendations in short- and long-term action plans.
The first priority for Flexible Solutions is to develop a database to integrate information for its clients and associates. This will eliminate the problem of data integrity. In addition, security and authorization should be built into the database to ensure only authorized personnel are given access to the database. A user manual should be developed to explain the procedure in accessing the database.
With the development of the database, Flexible Solutions can then further examine applications to integrate its business processes, such as automating the client-associate matching process, the associate-payment generation, trend analysis, and workshop scheduling, to name a few.
Web-based technology can streamline the business processes at Flexible Solutions. Some of the applications might include online registration of associates, online request for clients, and online job assignments. It is recommended that Flexible Solutions form an IT steering committee to work with an external consultant and to outsource the database development due to its limited IT resources. It is also important to recognize the impacts on the organization due to potential changes in business processes and job descriptions. Getting the employees’ buy-in and providing them with proper training will be key factors for the success of this initiative.
b. Introduction
This report will first summarize several major problems faced by Flexible Solutions in its IT practices.
It will then identify several options viable to the company. The recommendation will outline an
IT strategy plan with three implementation phases. The report concludes with an emphasis on the importance of change management if the recommendations were to be adopted.
c.
Problem Identification
1. Data integrity — Employees cut and paste part of the client spreadsheet for local updates and manipulations. This creates a major problem in data consistency and in keeping the master database up-to-date.
2. Data accuracy — All employees can input data into the database. There is no mechanism to ensure accurate data is recorded.
3. Data security and privacy — There is no procedure in place to restrict access to the database.
Most of the information about the client and the associates should be treated as confidential information. 4. System integration — There is no system integration, that is, the associate database, client spreadsheet, accounting, and sales are all conducted separately. There is a lot of duplication of information and re-entering of data, which creates problems in data accuracy and operational efficiency. 5. Lack of IT planning — It appears that Flexible Solutions has tackled its IT development based on needs and convenience. There is no IT strategy and planning.
6. Ability to deal with growth — It is unclear if Flexible Solutions’ current IT resources are adequate to meet the needs of projected business growth. However, it is clear that its current business processes are not efficient and staff’s workload is at its maximum capacity.
Continued...
SMS2J05
©CGA-Canada, 2005
Page 7 of 9
d. Alternatives and Analysis
To address the problems identified in the previous sections, Flexible Solutions can take several actions: 1. Do nothing — Flexible Solutions may choose to keep the status quo.
Pros: The company doesn’t have to deal with changes.
Cons: All the problems continue to exist.
2. Develop a database to deal with problems 1), 2), and 3).
Pros: This will reduce the problems of data management, and improve operational efficiency to some extent.
Cons: Developing a database is time-consuming and costly. There will be some training involved.
Without developing an overall IT strategy first, the database design might not fit the future
IT requirements.
3. Develop an IT strategic plan to guide the development of database and business process integration. Pros: The IT strategic plan will support business strategies and operations, and guide the development of IT infrastructure and applications.
Cons: This involves long-term planning and implementation. It might not meet
Flexible Solutions’ immediate needs.
e.
Recommendations
It is recommended that Flexible Solutions should adopt alternatives 2) and 3) and take the following actions: In 3-6 weeks:
•
•
•
Set up an IT steering committee to work with an external consultant to identify and prioritize
IT needs.
Examine business processes to identify redundancy and efficiencies.
Implement a procedure to temporarily enforce data security and privacy before a long-term solution is developed.
In 2-6 months:
•
•
•
Define new business processes in conjunction with identifying necessary IT support.
Complete the database design and implementation of the client module.
Involve users in the process and start training early.
In 6-12 months:
•
•
Start systems integration by developing and implementing modules in different functional areas.
Develop web-based applications to streamline business processes.
Continued...
SMS2J05
©CGA-Canada, 2005
Page 8 of 9
f.
Conclusion
This report has identified that the main challenges facing Flexible Solutions are poor data management, inefficient business processes, and lack of IT strategic planning. A phased approach is recommended for Flexible Solutions to address these problems. It is important to point out that the recommended changes will affect current practices at the management, technological, organizational, and cultural level. Hence, change management should be an integral part of this exercise.
Note:
Other reasonable issues, alternatives, recommendations, and conclusions are acceptable, provided they are properly justified and supported by the case.
END OF SOLUTIONS
100
SMS2J05
©CGA-Canada, 2005
Page 9 of 9
CGA-CANADA
MANAGEMENT INFORMATION SYSTEMS 2 EXAMINATION
June 2005
EXAMINER’S COMMENTS
General comments
Overall performance was satisfactory. Most candidates demonstrated a comprehensive understanding of the course material and demonstrated good communication and analytical skills in the case question.
However, memo writing was relatively weak. Candidates would benefit from more practice on concise and professional writing.
Specific comments
Question 1 Multiple choice (Levels 1 and 2)
Overall, the performance on this question was unsatisfactory; however, no particular pattern of errors was noted. Question 2 Hardware purchases and standards (Level 1)
Performance on this question was unsatisfactory. Many candidates did not address the issues concerning setting standards for hardware purchase. Instead, they discussed whether the decision to purchase laptop computers should be supported. In addition to the content of the memo, marks were also given for format and professional writing.
Question 3 Change management (Level 1)
Performance on this question was excellent. Most candidates constructed the presentation slides and speaker’s notes clearly, presenting a logical flow of ideas from one slide to the next. The suggested solution illustrates the level of detail expected for the presentation slides.
Question 4 Systems development (Levels 1 and 2)
Overall, performance on this question was excellent. Many candidates received full marks for parts (b),
(c), and (d). Performance on part (a) was weaker.
Question 5 Data flow diagram and E/R diagram (Level 1)
Performance on this question was poor. In part (a), many candidates constructed a level-one data flow diagram instead of a context diagram. In part (b), many candidates did not know the format of an E/R diagram. Question 6 MIS case (Level 1)
Performance on this question was satisfactory. In general, all candidates followed the suggested format, demonstrated good analytical skills in identifying the problems, and made recommendations consistent with the analysis. However, candidates need to develop better skills in writing concise and well-organized reports. ©CGA-Canada, 2005
MANAGEMENT INFORMATION SYSTEMS 2 EXAMINATION
June 2005
Marks
20
Time: 4 Hours
Question 1
Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations.
Note:
2 marks each
a.
Which of the following statements is true in describing how IS supports business transformation?
1) Reengineering is a benefit that organizations can derive from the implementation of enterprise-wide information …show more content…
systems, such as SAP and Oracle.
2) Information systems achieve competitive advantage for organizations by automating all tasks that need to be done.
3) In an IS supported value chain, human resources management is considered to be the primary activity. 4) Expert systems are used in the value chain to replace human decision-making.
b. Which statement is true in describing successful systems development projects?
1)
2)
3)
4)
c.
They allow for flexible results and goals.
They do not allow conflicting goals and objectives among project team members and end users.
They encourage user involvement, not management involvement.
They set a definitive timeline.
Which of the following is true in describing systems implementation?
1) Any change or improvement to the IT infrastructure should be completed before implementation starts. 2) Phased conversion is considered to be the least risky conversion approach.
3) Programming and coding are considered part of the implementation process.
4) Regardless of which conversion approach is adopted, all necessary hardware and software should be in place before the conversion starts.
d. Which of the following is a benefit of an ERP system?
1)
2)
3)
4)
e.
It may reduce the required level of inventory.
It increases the financial closing cycle.
It reduces the information visibility.
It increases the IT costs in the long run.
Which of the following is a correct statement about m-commerce?
1) The wireless web supporting the m-commerce is a mobile version of the wired Internet.
2) WML stands for wireless markup language, which is based on XML and optimized for tiny displays. 3) Currently, most wireless networks are an extension of an extranet.
4) PDAs are not an example of wireless computing devices.
Continued...
EMS2J05
©CGA-Canada, 2005
Page 1 of 6
f.
Which of the following statements is correct in describing user authorizations?
1) The inclusion approach implies all users start with access to everything; in other words, all users are inclusive.
2) Data access rules should be determined by end users because only they know what type of data they need in order to perform their tasks.
3) Authorization includes defining user access to different application software.
4) The exclusion approach is highly recommended because it is less expensive to implement.
g. Which of the following statements is correct in describing different types of expectations one might have toward the development of a new system?
1)
2)
3)
4)
The ideal expectation outlines the critical features of a new system.
The desired expectation is less important than the ideal expectation.
The minimally required expectation lists the basic requirements of a new system.
Normative expectation describes one’s opinion of what the new system should do.
h. E-commerce and e-business are supported by many technologies. Which of the following is a correct statement about these technologies?
1)
2)
3)
4)
i.
Which of the following statements is correct in describing e-business and e-commerce?
1)
2)
3)
4)
j.
All e-business must use EDI for data interchange.
Electronic funds transfer is a subset of EDI.
Internet commerce is a subset of e-commerce.
E-service stands for selling services rather than goods on the Internet.
Developing an IT strategic plan involves which of the following activities?
1)
2)
3)
4)
EMS2J05
E-commerce server software is designed to support B2C only.
Webhousing is used to store data collected about web site visitors.
Collaborative filtering software supports collaborations between several online customers.
Web performance monitor tools are used to monitor the performance of merchandise sold online.
Determine which tool or methodology will be used to structure the planning process.
Outline a detailed IT infrastructure with systems design.
Prepare process and data models.
Identify applications to be implemented.
©CGA-Canada, 2005
Page 2 of 6
8
Question 2
The company that you work for employs a large number of local sales people in various cities across the country. The company is considering buying a wireless laptop computer for each sales person. The sales department has argued strongly that funds should be made available for the sales people to buy their preferred brand and model, especially because many of them have already been using laptop computers.
The IT department agrees that it is a workable strategy and is ready to make the recommendation to the
VP-Finance.
Required
Write a memo on behalf of the IT manager to the VP-Finance, with a copy to the manager of the sales department. Explain the factors that should be considered in making a hardware purchase and the role of setting standards in IT implementation.
Restrict your memo to approximately 300 words. The memo should be professionally composed without using jargon. Make sure that your real name is not shown in any part of the memo.
12
Question 3
You work for a consulting firm that specializes in implementing enterprise systems. Your role on the team is to explain to the clients the importance of change management in this process.
Required
Prepare a slide presentation that addresses the following points:
i)
ii) iii) iv)
Why change management is important
The change process
Potential resistance to change
Successful change management
Using the format below, prepare up to 6 presentation slides, including title and summary slides and related speaker’s notes.
Slide #
Speaker’s notes related to each slide
Slide content
10
Question 4
In the following parts, state whether you agree or disagree with the statement and provide an explanation to support your position. Answer each part independently.
Required
a.
In negotiating a contract with a computer hardware or software vendor, it is not desirable to have an arbitration clause because arbitration only contains general rules and lacks legal rigor.
b. Many online content providers adopt the advertising pricing model because the advertising model is very effective for most vendors, and readers prefer this mode of advertising.
c.
Groupware technologies play an important role in knowledge management.
d. Outsourcing IT operations to firms specializing in systems development and design allows a company to enjoy very flexible systems that are quickly developed.
EMS2J05
©CGA-Canada, 2005
Page 3 of 6
10
Question 5
Sunny Travel is a Vancouver-based travel agency. Its main business is selling packaged tours to travellers in Canada. For each package sold, the process is as follows.
The customer either calls or visits Sunny Travel to inquire about available packages. Sunny Travel provides the information with a quotation to the customer. When a customer decides to purchase a package, the customer completes a booking form with personal information and pre-pays the package.
Upon receipt of the completed booking form, Sunny Travel either deposits the cheque or obtains approval from the credit card company. Sunny Travel sends a booking confirmation to the customer when the payment is cleared. Five days before departure, Sunny Travel contacts the destination sites and hotels to inform them of the names of the tourists. The hotels confirm the reservations with Sunny Travel.
Required
40
6
a.
Construct a level 0 context diagram for this scenario.
4
b. Suppose you want to create an information system to track the customer’s preference of various packages. Create 2 entities with at least 3 attributes for each entity and show their relationship in an
ER diagram.
Question 6
Flexible Solutions is a company that provides temporary staff to large corporations, small businesses, and individuals. It started 15 years ago when Heather, a stay-home mom with two young children, was asked to help out at a retail store in her neighbourhood during holiday seasons. Being kept busy by her children,
Heather referred her best friend to the store owner instead. One thing led to another, and 15 years later,
Heather owns an employment agency with more than 30 staff, a pool of hundreds of people with various qualifications available for part-time work at flexible hours (known as associates), and a long list of companies and individuals (known as clients) hiring temporary workers through Flexible Solutions.
Heather believes that her success can be best explained by three key concepts: quality, flexibility, and variety. Flexible Solutions always aims to provide the best services in a wide variety of areas to meet its clients’ needs.
The Organization
The operations at Flexible Solutions are divided into functional departments: accounting, marketing, and administration. Heather manages the entire company and is in charge of all HR decisions.
There are 5 staff members in the accounting department.
One person handles internal accounts, including staff payroll. Three staff members handle collections from the clients and payments to the associates based on the submitted time sheets. The manager oversees the operations and reports to Heather.
The marketing department has 4 people. Their main responsibilities are recruiting new associates to be added to the pool and maintaining good relationships with the clients. They are also responsible for analyzing the trends in the industry and forecasting future needs of their clients so that Flexible Solutions is better prepared for the market.
The administration department is the largest department. It assigns associates to clients, completes worksheets, and conducts training workshops. The department is further divided into areas based on types of services provided: manufacturing for labour-intensive jobs, retail for in-store sales, office administration for clerical support, technology for IT-related jobs, skilled trade for certified trades, and domestic services for household and office cleaning. In addition, 3 staff members are responsible for interviewing potential associates and training registered associates in the …show more content…
pool.
Continued...
EMS2J05
©CGA-Canada, 2005
Page 4 of 6
The Processes
The process at Flexible Solutions can be described as simple in principle, but complicated in practice.
When a request from a client is received either by e-mail or by phone, the person who answered the phone or checked the e-mail determines to which area the request should be transferred. An administration staff member matches the qualifications and the availability of the associates to the client’s request. The matching process has two steps. First, key words are used to search the associate file to find possible matches. Then, the employee manually selects the most suitable person who is available for the job. The associates are required to complete a timesheet upon completion of an assignment and submit it to the office. The timesheets are input into the accounting system and payments are issued on a bi-weekly basis.
Flexible Solutions relies heavily on the judgment, knowledge, and experience of its office staff in finding a good match and assigning associates in a most efficient and effective manner.
Associate recruiting involves aggressive advertising in the public media to invite people to register with
Flexible Solutions, searching on the Internet for resumes, and through word of mouth. Skilled workers need to pass a relevant test before being added to the pool. All associates are required to attend an orientation workshop when they first register with Flexible Solutions. Those who are interested can sign up for additional workshops on different topics by paying a nominal fee.
Information Technology
Similar to many companies, there is no IT strategy at Flexible Solutions although computers are used extensively to support most office functions. One technical person supports and maintains all systems.
Each employee has a desktop computer connected to a local area network (LAN) for file and printer sharing. The LAN runs on a Microsoft Windows 2000 platform. Microsoft Office Suite is installed on the server. All employees have access to the Internet. E-mail is set up for communications internally and with the associates and clients.
The accounting department uses AccPac for all accounting and payroll functions. The vendor customized
AccPac to meet Flexible Solutions’ need in entering the time sheet information and generating payments to the associates. Time sheets are input as a batch job on a weekly basis.
A database using Microsoft Access was created by Flexible Solutions to store information about the associates’ qualifications, availability, and work history.
All employees can access and update the database. For example, the interviewing and training member usually creates a record for each new person recruited and updates the additional training information, while the administrative staff will record the assignments of each individual.
In addition to the database, hard copies of applicants’ forms and resumes are stored in a massive file cabinet. Similarly, a hard copy of information pertaining to past, present, and possible clients is also kept.
Client information is saved in an Excel spreadsheet file. This file was first created many years ago as file-merging information kept by marketing, accounting, and administrative staff. As the client list has grown, the file has become extremely large with much duplicated, out-dated, and inaccurate information.
All employees have access to this file but no one is responsible for keeping it up-to-date and accurate.
Many employees cut and paste from the master file and create their own files containing up-to-date information about the companies that they deal with frequently. Heather realizes that something has to
be done about this file. However, with many companies and individual clients who either no longer exist or have moved and changed ownership, it is almost impossible to bring the file completely up-to-date.
Besides, Heather believes that according to the “80/20 rule”, 80% of the company’s business is being provided by the 20% of the clients that they are keeping good records of.
Continued...
EMS2J05
©CGA-Canada, 2005
Page 5 of 6
The Challenges and Opportunities
Opportunities increase for Flexible Solutions as more and more companies either outsource aspects of their operations or opt to hire short-term contractual workers. The marketing department is predicting at least a 15% growth rate in the next 2 years. Heather knows that this will present an additional load on her staff already operating at their extreme capacities. Upon reviewing the processes and the technology currently used at Flexible Solutions, Heather wonders if the processes could be re-engineered for better efficiency to cope with the predicted growth.
Required
As an IT consultant, you are asked by Heather to prepare a report outlining possible IT strategies for
Flexible Solutions to support its future growth.
Your report should follow the standard case analysis format, with the following section headings:
5
2
5
15
5
3
5
1.
2.
3.
4.
5.
6.
Executive Summary
Introduction
Problem Identification
Alternatives and Analysis
Recommendations
Conclusion
Note:
You should provide clear and compelling evidence for any arguments presented in the analyses and the recommendation. 5 marks are allotted for proper presentation and layout, correct grammar and spelling, as well as professionalism in the writing.
END OF EXAMINATION
100
EMS2J05
©CGA-Canada, 2005
Page 6 of 6
MANAGEMENT INFORMATION SYSTEMS 2 [MS2]
EXAMINATION
Before starting to write the examination, make sure that it is complete and that there are no printing defects. This examination consists of 6 pages. There are 6 questions for a total of
100 marks.
READ THE QUESTIONS CAREFULLY AND ANSWER WHAT IS ASKED.
To assist you in answering the examination questions, CGA-Canada includes the following glossary of terms.
Glossary
From David Palmer, Study Guide: Developing Effective Study Methods (Vancouver: CGA-Canada, 1996).
Copyright David Palmer.
Compare
Contrast
Criticize
Define
Describe
Diagram
Discuss
Evaluate
Explain
Examine qualities or characteristics that resemble each other. Emphasize similarities, although differences may be mentioned.
Compare by observing differences. Stress the dissimilarities of qualities or characteristics. (Also Distinguish between)
Express your own judgment concerning the topic or viewpoint in question. Discuss both pros and cons.
Clearly state the meaning of the word or term. Relate the meaning specifically to the way it is used in the subject area under discussion. Perhaps also show how the item defined differs from items in other classes.
Tell the whole story in narrative form.
Give a drawing, chart, plan or graphic answer. Usually you should label a diagram.
In some cases, add a brief explanation or description. This calls for the most complete and detailed answer. Examine and analyze carefully and present both pros and cons. To discuss briefly requires you to state in a few sentences the critical factors.
This requires making an informed judgment.
Your judgment must be shown to be based on knowledge and information about the subject. (Just stating your own ideas is not sufficient.) Cite authorities. Cite advantages and limitations.
In explanatory answers you must clarify the cause(s), or reasons(s). State the “how” and
“why” of the subject. Give reasons for differences of opinions or of results.
Illustrate
Indicate
Interpret
Justify
List
Outline
Prove
Relate
Review
State
Summarize
Trace
Make clear by giving an example, e.g., a figure, diagram or concrete example.
Provide a short explanation.
Translate, give examples of, solve, or comment on a subject, usually making a judgment on it.
Prove or give reasons for decisions or conclusions. Present an itemized series or tabulation.
Be concise. Point form is often acceptable. (Also Enumerate or Identify)
This is an organized description. Give a general overview, stating main and supporting ideas. Use headings and sub-headings, usually in point form. Omit minor details.
Establish that something is true by citing evidence or giving clear logical reasons.
Show how things are connected with each other or how one causes another, correlates with another, or is like another.
Examine a subject critically, analyzing and commenting on the important statements to be made about it.
Present the main points in brief, clear sequence, usually omitting details, illustrations, or examples.
Give the main points or facts in condensed form, like the summary of a chapter, omitting details and illustrations.
In narrative form, describe progress, development, or historical events from some point of origin.
CGA-CANADA
MANAGEMENT INFORMATION SYSTEMS 2 EXAMINATION
June 2005
SUGGESTED SOLUTIONS
Marks
20
Time: 4 Hours
Question 1
Note:
2 marks each
Sources:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
8
1)
4)
3)
1)
2)
3)
4)
2)
3)
1)
Topic 1.3 (Level 1)
Topic 3.1 (Level 1)
Topic 5.1 (Level 1)
Topic 5.7 (Level 1)
Topic 8.6 (Level 1)
Topic 9.3 (Level 1)
Topic 10.4 (Level 1)
Topic 6.2 (Level 1)
Topic 7.1 (Level 1)
Topic 2.6 (Level 1)
Question 2
Source: Topic 2.2 (Level 1)
MEMO
To:
From:
Date:
Cc.:
VP-Finance
Manager, IT Department
August 2004
Manager, Sales Department
Subject: Considerations for Laptop Computer Purchases
I commend the company’s recent decision to embrace IT technologies by providing our field sales people with laptop computers. This move should give our sales force a substantial competitive edge in the industry. I would like to take this opportunity to point out a few factors to be considered in making hardware purchase decisions and the role of standards in setting IT strategies.
In choosing a laptop, regardless of whether it’s a centralized decision or the individual choice of the end users, in addition to the quality of the product, it is important to evaluate the upgradeability, expandability, and connectivity of the equipment. It is also important to evaluate the support, the warranty, and the costs associated with repair and downtime due to machine breakdown. It would be useful for the
IT department to establish a benchmark for evaluating these factors.
Continued...
SMS2J05
©CGA-Canada, 2005
Page 1 of 9
Some people might argue that setting company standards might impose restrictions on individual needs.
However, having standards to limit the range of technologies in use and to set minimum system requirements at the organization generally results in lower costs to the organization, better integration of applications, greater ease in providing technical support, and fewer problems in ensuring adequate performance. In the long run, many companies have found it less expensive and easier to manage to have the same applications and hardware technologies across the board.
I understand that you will soon make a decision on the recommendation to implement this initiative. I will be more than happy to offer my expertise should you wish to discuss these points further.
Note:
Assign 6 marks for the content, 1 mark for professionalism, and 1 mark for format.
12
Question 3
Source: Topic 10.2 (Level 1)
Slide #1
Embracing the change
•
•
•
•
•
Importance of change management
The change process
Potential resistance to change
Successful change management
Summary
Congratulations on making a very important decision to implement an ERP system.
Today, I will address different aspects of how to manage the change in order to reduce its negative impact on the organization.
Slide #2
Importance of change management
•
•
•
•
•
Processes re-engineered
Organizational structure modified
Working relations altered
Skills requirements changed
Change management affects the success of an IT project
Implementation of a new IT project requires significant changes on the part of people whose tasks are often altered due to new IT implementation. It is important to address the changes introduced to the organization, its processes, and its people. Poor change management often leads to the failure of an
IT implementation.
Slide #3
The change process
•
The Lewin-Schein Model
Unfreeze
Change
Refreeze
The Leonard-Barton Model
Change as a continuing set of cycles of adaptation of the technology and the user
{
{
{
•
{
Based on the Lewin-Schein Model, it is imperative to recognize the importance of convincing people of the need to do things differently,
i.e., why the change is necessary. It is also useful to note that technology could be modified by people during the change process. According to the Leonard-Barton Model, both people and technology can be adapted to reach final alignment. Continued...
SMS2J05
©CGA-Canada, 2005
Page 2 of 9
Slide #4
One reason for resistance to change could simply be that staff are used to how things were done in the past. Sometimes they don’t have the ability to deal with changes. The resistance could also stem from the fact that people are losing power, especially those who will lose power due to shared information. Perhaps people don’t think the change is worth the trouble. Various forms of resistance might include public debate, benign neglect, resource diversions, inappropriate staffing, problem expansion, and sabotage.
Potential resistance to change
•
•
•
•
Social inertia
Ability to change
Change of power structure
Change not valuable
Slide #5
Open communication involving users at an early stage of the project is crucial to the success of an
IT implementation. This could be done through meetings, newsletters, and parties. Education focuses on the conceptual level of the system while training emphasizes how to use the system.
It is important to identify a champion who actively and enthusiastically promotes the project.
Finally, change management often becomes a learning process for the individuals and the organization as a whole.
Successful change management
•
•
•
•
Communication
Education and training
Championship
Learning process
Slide #6
Summary
•
•
•
•
Recognize the importance of change management Understand the change process
Identify resistance to change
Implement change management
To summarize, I would like to stress that we will work with your organization closely to help you understand the change process, identify the sources of resistance, develop a strategy for change management, and help you implement the strategy step by step.
Note:
Assign 2 marks for each slide. 1 mark for content of the slide, 1 mark for speaker’s notes.
SMS2J05
©CGA-Canada, 2005
Page 3 of 9
10
Question 4
a. Source: Topic 3.5 (Level 2)
Disagree. An arbitration clause specifies the mechanics of the arbitration process and includes a specific reference to the applicable arbitration rules. An arbitration clause can prevent unnecessary litigation arising from contract disputes. Therefore, it is desirable to have an arbitration clause in a contract. b. Source: Topic 7.4 (Level 1)
Disagree. The reason many online content providers adopt the advertising model is neither because it is an effective mode of advertising nor that it is welcome by the consumer. It is because most readers are reluctant to pay for the free content online. Therefore, the content providers are forced to sell online advertising to other vendors.
c.
Source: Topic 6.3 (Level 1)
Agree. Knowledge management involves activities to code, store, and share the knowledge that employees have and use in their jobs. Groupware technologies can help create repositories for knowledge and provide directories to access the knowledge. It can also provide a map of people in the organization to help identify who has the specific knowledge of a particular problem.
d. Source: Topic 9.1 (Level 1)
Disagree. It might be true that outsourcers could develop a system much faster due to their expertise.
However, the systems are often designed to meet many companies’ specific needs and, hence, the lack of flexibility.
Note:
1
/2 mark for agree/disagree and 2 marks for supportive argument.
SMS2J05
©CGA-Canada, 2005
Page 4 of 9
10
6
Question 5
a. Source: Topic 4.3 (Level 1)
Level 0 Context Diagram for Sunny Travel
Booking Information
Customer
Clearance
Bank
Inquiry
Deposit
Quotation
Sunny Travel
Booking Confirmation
Approval Request
Credit Card
Company
Tourist information
Approval
Reservation
Confirmation
Sites and Hotels
Note:
1 mark for showing Sunny Travel at the center of the context diagram, 1/2 mark for each external entity and 1/2 mark for each data flow, to a maximum of 6 marks.
4
b. Source: Topic 4.4 (Level 1)
ER Diagram for the CUSTOMER and PACKAGE entities:
Purchase
PACKAGE
CUSTOMER
M
Key: Customer_ID
Customer_Name
Customer_Address
M
Key: Package_Code
Package_Date
Package_Price
Note:
1 mark for each entity, 1 mark for the relationship, and 1 mark for the attributes, to a maximum of 4 marks.
SMS2J05
©CGA-Canada, 2005
Page 5 of 9
40
5
Question 6
Executive Summary
The objective of the report, the key problems, and the recommendations should be outlined in the executive summary. It is very important to note that the executive summary is written and submitted to the company, not to the examiner.
2
Introduction
A brief summary of how this report is structured and what approach is taken to address the issues should be included in the introduction.
5
Problem Identification
Challenges in this case include:
•
•
•
•
•
15
data integrity lack of systems integration need for new databases and better management of data data security and confidentiality issues need for IT strategy to support business growth
Alternatives and Analysis
Possible alternatives in the following areas:
•
•
•
•
5
IT strategy planning
Systems integration
Database development
Internet applications
Recommendations
Make a recommendation with justification.
3
Conclusion
Conclude the report by stating the limitations of the recommendation and possible future improvements.
5
Note:
5 marks for proper presentation (including short intro/purpose of report, headings/general layout, conclusions and recommendations), supporting evidence, correct grammar and spelling, and professionalism in the writing.
A sample solution is provided for studying purpose. Please note that this suggested solution is more of an outline than a complete solution, and that each section can be expended to make it more complete and comprehensive. Continued...
SMS2J05
©CGA-Canada, 2005
Page 6 of 9
Flexible Solutions
a.
Executive Summary
Flexible Solutions needs to operate more efficiently and effectively to handle the projected 15% growth in the next 2 years. Although its current IT infrastructure appears to be adequate in supporting the operations, several practices in data handling present serious problems in the area of operational efficiency, data integrity, and privacy of information.
The objectives of this report are to identify the problems of Flexible Solutions’ current IT practice, to outline changes that could be introduced to correct these problems, and to make recommendations in short- and long-term action plans.
The first priority for Flexible Solutions is to develop a database to integrate information for its clients and associates. This will eliminate the problem of data integrity. In addition, security and authorization should be built into the database to ensure only authorized personnel are given access to the database. A user manual should be developed to explain the procedure in accessing the database.
With the development of the database, Flexible Solutions can then further examine applications to integrate its business processes, such as automating the client-associate matching process, the associate-payment generation, trend analysis, and workshop scheduling, to name a few.
Web-based technology can streamline the business processes at Flexible Solutions. Some of the applications might include online registration of associates, online request for clients, and online job assignments. It is recommended that Flexible Solutions form an IT steering committee to work with an external consultant and to outsource the database development due to its limited IT resources. It is also important to recognize the impacts on the organization due to potential changes in business processes and job descriptions. Getting the employees’ buy-in and providing them with proper training will be key factors for the success of this initiative.
b. Introduction
This report will first summarize several major problems faced by Flexible Solutions in its IT practices.
It will then identify several options viable to the company. The recommendation will outline an
IT strategy plan with three implementation phases. The report concludes with an emphasis on the importance of change management if the recommendations were to be adopted.
c.
Problem Identification
1. Data integrity — Employees cut and paste part of the client spreadsheet for local updates and manipulations. This creates a major problem in data consistency and in keeping the master database up-to-date.
2. Data accuracy — All employees can input data into the database. There is no mechanism to ensure accurate data is recorded.
3. Data security and privacy — There is no procedure in place to restrict access to the database.
Most of the information about the client and the associates should be treated as confidential information. 4. System integration — There is no system integration, that is, the associate database, client spreadsheet, accounting, and sales are all conducted separately. There is a lot of duplication of information and re-entering of data, which creates problems in data accuracy and operational efficiency. 5. Lack of IT planning — It appears that Flexible Solutions has tackled its IT development based on needs and convenience. There is no IT strategy and planning.
6. Ability to deal with growth — It is unclear if Flexible Solutions’ current IT resources are adequate to meet the needs of projected business growth. However, it is clear that its current business processes are not efficient and staff’s workload is at its maximum capacity.
Continued...
SMS2J05
©CGA-Canada, 2005
Page 7 of 9
d. Alternatives and Analysis
To address the problems identified in the previous sections, Flexible Solutions can take several actions: 1. Do nothing — Flexible Solutions may choose to keep the status quo.
Pros: The company doesn’t have to deal with changes.
Cons: All the problems continue to exist.
2. Develop a database to deal with problems 1), 2), and 3).
Pros: This will reduce the problems of data management, and improve operational efficiency to some extent.
Cons: Developing a database is time-consuming and costly. There will be some training involved.
Without developing an overall IT strategy first, the database design might not fit the future
IT requirements.
3. Develop an IT strategic plan to guide the development of database and business process integration. Pros: The IT strategic plan will support business strategies and operations, and guide the development of IT infrastructure and applications.
Cons: This involves long-term planning and implementation. It might not meet
Flexible Solutions’ immediate needs.
e.
Recommendations
It is recommended that Flexible Solutions should adopt alternatives 2) and 3) and take the following actions: In 3-6 weeks:
•
•
•
Set up an IT steering committee to work with an external consultant to identify and prioritize
IT needs.
Examine business processes to identify redundancy and efficiencies.
Implement a procedure to temporarily enforce data security and privacy before a long-term solution is developed.
In 2-6 months:
•
•
•
Define new business processes in conjunction with identifying necessary IT support.
Complete the database design and implementation of the client module.
Involve users in the process and start training early.
In 6-12 months:
•
•
Start systems integration by developing and implementing modules in different functional areas.
Develop web-based applications to streamline business processes.
Continued...
SMS2J05
©CGA-Canada, 2005
Page 8 of 9
f.
Conclusion
This report has identified that the main challenges facing Flexible Solutions are poor data management, inefficient business processes, and lack of IT strategic planning. A phased approach is recommended for Flexible Solutions to address these problems. It is important to point out that the recommended changes will affect current practices at the management, technological, organizational, and cultural level. Hence, change management should be an integral part of this exercise.
Note:
Other reasonable issues, alternatives, recommendations, and conclusions are acceptable, provided they are properly justified and supported by the case.
END OF SOLUTIONS
100
SMS2J05
©CGA-Canada, 2005
Page 9 of 9
CGA-CANADA
MANAGEMENT INFORMATION SYSTEMS 2 EXAMINATION
June 2005
EXAMINER’S COMMENTS
General comments
Overall performance was satisfactory. Most candidates demonstrated a comprehensive understanding of the course material and demonstrated good communication and analytical skills in the case question.
However, memo writing was relatively weak. Candidates would benefit from more practice on concise and professional writing.
Specific comments
Question 1 Multiple choice (Levels 1 and 2)
Overall, the performance on this question was unsatisfactory; however, no particular pattern of errors was noted. Question 2 Hardware purchases and standards (Level 1)
Performance on this question was unsatisfactory. Many candidates did not address the issues concerning setting standards for hardware purchase. Instead, they discussed whether the decision to purchase laptop computers should be supported. In addition to the content of the memo, marks were also given for format and professional writing.
Question 3 Change management (Level 1)
Performance on this question was excellent. Most candidates constructed the presentation slides and speaker’s notes clearly, presenting a logical flow of ideas from one slide to the next. The suggested solution illustrates the level of detail expected for the presentation slides.
Question 4 Systems development (Levels 1 and 2)
Overall, performance on this question was excellent. Many candidates received full marks for parts (b),
(c), and (d). Performance on part (a) was weaker.
Question 5 Data flow diagram and E/R diagram (Level 1)
Performance on this question was poor. In part (a), many candidates constructed a level-one data flow diagram instead of a context diagram. In part (b), many candidates did not know the format of an E/R diagram. Question 6 MIS case (Level 1)
Performance on this question was satisfactory. In general, all candidates followed the suggested format, demonstrated good analytical skills in identifying the problems, and made recommendations consistent with the analysis. However, candidates need to develop better skills in writing concise and well-organized reports. ©CGA-Canada, 2005