1. What are some problems associated with assessing the costs of IT?
Some of the problems that are associated with assessing the cost of IT include the following:
- It is hard to determine the dollar value of IT investments.
- In particular it is difficult to allocate fixed costs among the many IT projects that are needed by the firm in the development, research and collection of data phases of the firm.
- The costs are ongoing and continue well beyond the installation process of the information system. Costs need to be given to accommodate for the maintenance and improving the system as new technology emerges.
2. What difficulties accompany the intangible benefits from IT?
The difficulties that accompany the tangible benefits from IT include:
- Improve customer or firm partner relations
- Improve decision making with more information and data available
- The usage of IT differs in the many ways that it is used. It is hard to quantify why its improved business performance.
- IT support systems and applications can provide strategic benefits through the implementation and upkeep of the firm’s IT infrastructure.
- The proposed systems must be cutting edge but there may not be any returns or value the company can receive from it.
3. Define NPV and ROI, and business case approaches.
NVP is net present value which is a calculation for cost benefit analysis. It allows personnel to convert future values of benefits to their present value equivalent by discounting them. This is a comparative analysis highlighting the future benefits compared to the cost of acquiring those benefits.
ROI is return on investment which is a method of analysing management effectiveness in generating profits with available business assets. This return is calculated by dividing the net income by average assets invested. The greater the value shown, the greater improvement the firm can receive.
Business cases approach is a written document that managers use to justify funding of one or more specific application processes. It evaluates how it can be done, what method would improve and the failure of prior plans or strategies.
4. What type of companies provide outsourcing service?
The types of companies provide outsourcing services include:
- Vendor’s like IBM, Oracle provide services for creating and maintain IT applications to the firm.
- An application services providers as ASP
- Outsourcing can be done by any external organisation or outside contractor in which the firm needs to maintain or acquire IT services.
5. Define ASPs and list their advantages to companies using them.
ASP is an Application Service Provider who is an agent or vendor who assembles the software needed by enterprises and packages them with outsourced development, operations, maintenance and other services.
The advantages of ASP include:
- Saves costs
- Reduce software maintenance and upgrades
- Reduce user training make the company more competitive by reducing time-to-market and enhance the company’s ability to adapt to changing market conditions
6. List some disadvantages of ASPs.
The disadvantages of ASP’s include:
- ASP’s might not offer adequate security protection
- Software might not be a perfect fit for the desired application
- Company must make certain that the speed of the Internet connection between the customer and the ASP is adequate to handle the requirement of the application.
7. List the major steps of selection of a vendor and a software package.
The main steps of selection of a vendor and a software package include:
1. Identify potential vendors: companies can identify potential software applications through things like, software catalogues, technical and trade journals and peer in other companies. The firm needs to establish some kind of criteria to eliminate the ones that are not suitable for the firm.
2. Determine the evaluation criteria: the firm must select a detailed set of evaluation criteria which should include characteristics of the vendor, functional requirements and quality of the vendor package. All of the criteria should be placed in the RFP which can then be sent to the potential vendors inviting them to submit a proposal on the benefits of their software package.
3. Evaluate vendors and packages: the goal of this is to determine the gaps between the company’s needs and the capabilities of the vendors and their application packages. The high score will allow the firm to select which vendor has the most potential.
4. Choose the vendor: the short listing of the vendors, allows the firm to negotiate the benefits and the modifications of the package that will suit the firm.
5. Negotiate the contract: at this stage, the firm and the vendor come together and determine the price of the software and the amount of support that the vendor agrees to provide.
6. Establish a service level agreement: these are formal agreements how the work is to be divided between the company and its vendors.
8. Describe a request for proposal (RFP).
A request for proposal is a document that is sent to potential vendors inviting them to submit a proposal that described their software package and explains how it would meet the company’s needs.
9. Describe SLAs.
Service Level Agreement is a formal agreements regarding the division of work between a company and its vendors.
Monday, October 27, 2008
Week 11- Chapter 9: Managerial Support Systems
1. Describe the decision-making process proposed by Simon.
The decision making process proposed by Simon consists of the following four steps:
a. Intelligence phase: which allows managers to examine a situation and identify and define the problem. This is a key element of the stage as the recognition of the problem allows the managers of the business to adequately devise plans to help combat the problem encountered.
b. Design phase: decision makers and managers create a model that simplifies the problem. This is commenced by making assumptions about the problem and to identify all of the variables surrounding the problem. These assumptions and variables that are identified are put to the test through the use of test data gathered by the organisation.
c. Choice phase: involves managers and key decision makers to test the devised solution from the test data retrieved. Upon its success, it is preceded to the next stage, implementation.
d. Implementation phase: allows managers to implement the strategy to combat the problem encountered by using the data and the research gathered in the previous stages. Success will flow if the recognition of the problem was accurate and will lead to the problem being resolved. If unsuccessful, the whole process will need to be completed again until the problem is resolved.
2. Why do managers need IT support?
Managers need Information Technology Support due to the extensive information collected and have been affected by the following trends:
- Numerous alternatives: innovations in technology, improved communications, and globalisation have allowed many methods and procedures to change the way firms do business. The capabilities of the internet and technology have created the need for IT support in the collection, dissemination and creation of new data to inform key business decision making.
- The degree of problems that are encountered by business’ need to be dealt with proactively. Due to the fluctuating nature of the business environment, information needs to be readily available to make informed decisions.
- New processes and methods need to be created to reduce or combat the complexities of the business environment.
- The information needs to be accessed rapidly, experts need to be consulted, collaborative decision making are available from all locations and departments of the firm. The need to bring all of these into one location quickly and inexpensively is a task which IT support is needed.
3. Describe the decision matrix.
The decision matrix is used to support the decision making process. It classes the problem structure and the three broad categories of the nature of decisions. The matrix consists of nine cells and establishes the roles low, middle and professional staff is required to do.
Lower-management usually perform the structured and operational control orientated tasks including accounts receivable, budgets and short term forecast reports and scheduling for production and inventory control.
Middle management are responsible for the financial management, warehouse location, distribution systems, budget preparations, project scheduling and establishing the finances for the operating of the firm.
Senior executives are responsible for activities including Research and Development, social responsibility planning negotiations, recruiting staff and merging and acquiring other firms in the same industry.
4. Describe the capabilities of data mining.
Data mining is the searching for valuable business information in a large database, data warehouse or data mart. It performs two basic functions of predicting trends and behaviours and identifying unknown patterns.
The capabilities of data mining include the following:
- Retail and sales: identifying sales, determining correct inventory levels and scheduling the distribution channel.
- Banking: forecasts expected expenditure, predicting customer spending patterns and trends and the amount of money that the customers require in a loan
- Manufacturing and production: accounting for the depreciation and usage of machinery and other equipment used in the manufacturing and production of the products.
- Insurance: determining the amount of insurance needed to cover workplace injuries and medical coverage for the firm’s employees and whether or not the customers will require the new insurance policies.
-Police work: determining trends in crime and criminal activity
- Health care: correlating the demographics of the patients with the types of illnesses that are suffered.
The business can then determine the relevant trends by identifying the symptoms and how it will be combated.
- Marketing: classifying the trends of the customers within a particular group and developing marketing strategies that can accommodate the changes in tastes.
5. What are some of the capabilities of digital dashboards?
A digital dashboard provides rapid access to timely information and the direct access to management reports.
Some of the capabilities of digital dashboards include:
- Drill down: which is the ability to go into detail at several levels which can be done by a series of menus on the computer using specific applications
- Critical success factors: are identified at each level of management, organisational level and by department and recognise the key factors for success.
- Key performance indicators: these are the specific measures of the critical success factors
- Status access: the latest data on the key performance indicators which are available in real time.
- trend analysis: identifies the short, medium and long term trends of the key performance indicators which are projected using various forecasting methods.
- Ad-hoc analysis: analyses made at anytime upon the demands of the firm that is relevant to particular factors or relationships of certain constructs.
- Exception reporting: recognises the deviations of plans that a firm aims to carry out.
The decision making process proposed by Simon consists of the following four steps:
a. Intelligence phase: which allows managers to examine a situation and identify and define the problem. This is a key element of the stage as the recognition of the problem allows the managers of the business to adequately devise plans to help combat the problem encountered.
b. Design phase: decision makers and managers create a model that simplifies the problem. This is commenced by making assumptions about the problem and to identify all of the variables surrounding the problem. These assumptions and variables that are identified are put to the test through the use of test data gathered by the organisation.
c. Choice phase: involves managers and key decision makers to test the devised solution from the test data retrieved. Upon its success, it is preceded to the next stage, implementation.
d. Implementation phase: allows managers to implement the strategy to combat the problem encountered by using the data and the research gathered in the previous stages. Success will flow if the recognition of the problem was accurate and will lead to the problem being resolved. If unsuccessful, the whole process will need to be completed again until the problem is resolved.
2. Why do managers need IT support?
Managers need Information Technology Support due to the extensive information collected and have been affected by the following trends:
- Numerous alternatives: innovations in technology, improved communications, and globalisation have allowed many methods and procedures to change the way firms do business. The capabilities of the internet and technology have created the need for IT support in the collection, dissemination and creation of new data to inform key business decision making.
- The degree of problems that are encountered by business’ need to be dealt with proactively. Due to the fluctuating nature of the business environment, information needs to be readily available to make informed decisions.
- New processes and methods need to be created to reduce or combat the complexities of the business environment.
- The information needs to be accessed rapidly, experts need to be consulted, collaborative decision making are available from all locations and departments of the firm. The need to bring all of these into one location quickly and inexpensively is a task which IT support is needed.
3. Describe the decision matrix.
The decision matrix is used to support the decision making process. It classes the problem structure and the three broad categories of the nature of decisions. The matrix consists of nine cells and establishes the roles low, middle and professional staff is required to do.
Lower-management usually perform the structured and operational control orientated tasks including accounts receivable, budgets and short term forecast reports and scheduling for production and inventory control.
Middle management are responsible for the financial management, warehouse location, distribution systems, budget preparations, project scheduling and establishing the finances for the operating of the firm.
Senior executives are responsible for activities including Research and Development, social responsibility planning negotiations, recruiting staff and merging and acquiring other firms in the same industry.
4. Describe the capabilities of data mining.
Data mining is the searching for valuable business information in a large database, data warehouse or data mart. It performs two basic functions of predicting trends and behaviours and identifying unknown patterns.
The capabilities of data mining include the following:
- Retail and sales: identifying sales, determining correct inventory levels and scheduling the distribution channel.
- Banking: forecasts expected expenditure, predicting customer spending patterns and trends and the amount of money that the customers require in a loan
- Manufacturing and production: accounting for the depreciation and usage of machinery and other equipment used in the manufacturing and production of the products.
- Insurance: determining the amount of insurance needed to cover workplace injuries and medical coverage for the firm’s employees and whether or not the customers will require the new insurance policies.
-Police work: determining trends in crime and criminal activity
- Health care: correlating the demographics of the patients with the types of illnesses that are suffered.
The business can then determine the relevant trends by identifying the symptoms and how it will be combated.
- Marketing: classifying the trends of the customers within a particular group and developing marketing strategies that can accommodate the changes in tastes.
5. What are some of the capabilities of digital dashboards?
A digital dashboard provides rapid access to timely information and the direct access to management reports.
Some of the capabilities of digital dashboards include:
- Drill down: which is the ability to go into detail at several levels which can be done by a series of menus on the computer using specific applications
- Critical success factors: are identified at each level of management, organisational level and by department and recognise the key factors for success.
- Key performance indicators: these are the specific measures of the critical success factors
- Status access: the latest data on the key performance indicators which are available in real time.
- trend analysis: identifies the short, medium and long term trends of the key performance indicators which are projected using various forecasting methods.
- Ad-hoc analysis: analyses made at anytime upon the demands of the firm that is relevant to particular factors or relationships of certain constructs.
- Exception reporting: recognises the deviations of plans that a firm aims to carry out.
Week 10- Chapter 8:Organisational Information Systems
1. What are a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs. Transaction Processing systems monitor, collect, store and process data generated from all business transactions. These are inputs into the organisation’s database. The role of the TPS is to handle the high volume and large variations in volume efficiently and avoid errors, recording information accurately. It is a standardised process.
The key objectives of the TPS include:
- The collection of data by persons or sensors and are gathered into the computer.
- It batch processes or online processes the transactions that occurs and are then processed online as soon as they occur.
2. What is a functional area information system? List its major characteristics.
A functional area information system provides information mainly to lower and middle level managers in the functional area. The functional areas of the business include Accounting, Legal, Financial, Marketing etc.
The major characteristics of the FAIS the routine reports that it produces which include the Drill down reports, Key indicator reports and comparative reports.
3. How does an FAIS support management by exception? How does it support on-demand reports?
The FAIS supports management by exception as the system firstly creates the performance standard and the IT systems monitors the performance. It compares the actual performance to the standards and identifies the predefined exceptions.
The FAIS sends the managers information to the corporate data warehouse supporting present and future decision making. FAIS create routine or ad-hoc (on demand) reports which are then given to management.
4. Define ERP and describe its functionalities.
Enterprise Resource Planning systems integrate the planning, management, and the use of all of an organisations resources. The objectives of this system is to tightly integrate the functional areas of the organisation and to enable the transferring of data to seamlessly flow to and from the functional areas.
5. List some drawbacks of ERP software.
The drawbacks of the ERP system are:
- Extremely complex
- Expensive
- Time consuming to implement
6. Define a supply chain and supply chain management (SCM).
A supply chain refers to the flow of material, information, money and services from raw materials suppliers, through to factories and warehouses to the final customer.
The aim of supply chain management is to plan, organise and optimise the supply chains activities. It reduces the friction between moving from one intermediary to another and reduces the uncertainties of decreasing or obsolete inventory.
7. List the major components of supply chains.
The major components of a supply chain:
a. upstream- where sourcing or procurement from external suppliers occurs
b. internal- where packaging, assembly, or manufacturing takes place
c. downstream- where distribution takes place, frequently by external distributors
8. What is the bullwhip effect?
The bullwhip effect refers to the erratic shifts in orders up and down the supply chain.
9. What are some solutions to supply chain problems?
Solution to supply chain problems include:
- Using inventories as insurance against supply chain uncertainties
- Information sharing
10. Define EDI and list its major benefits and limitations
Electronic data interchange is a communication standard that enables business partners to exchange routine documents such as purchasing orders, electronically.
The major benefits of EDI:
- Minimises data entry errors because each data entry is checked by the computer
- Messages are shorter and secured
- Reduces the cycle time
- Increases productivity
- Enhances customer service
- Minimises paper usage
The major limitations of EDI:
- Implementation of an EDI involves significant initial investment
- Continuous operating costs are high, expensive
- Inflexibility of the EDI makes it difficult to implement changes to suit the business environment
- Business processes need to be restructured to suit the EDI The differing standards can produce difficulties in communicating with personnel within the firm.
Week 9- Chapter 7: Wireless, Mobile Computing and Mobile Commerce
1. Identify common wireless devices and their application to business
Common wireless devices and their application to business include:
a. Bluetooth: is used to create small personal area networks. Its application to business is that it connects computer devices close to one person to the firm.
b. ultra-wideband: is a high bandwidth wireless technology with transmission speeds in excess of 100 Mbps. It is a good choice for business as it streams multimedia from a personal computer to a television.
c. Near-field Communications: has the smallest range of any short-range wireless networks. It joins the consumer with the business by transferring funds to the point of sale terminals.
d. Wi-Fi: is a wired LAN but does not have the cables. These wireless devices allow the business to connect its employees to internet access in a radius outside the firm.
e. Wireless mesh networks: uses multiple Wi-Fi access points to create a WAN that can be as large as 135 miles. By using many WAN access points it interconnects them for extended use.
f. Wireless broadband: is a wireless access point that allows for broad coverage and internet access. This is suitable for personnel that are in sales and need constant internet access.
2. Describe the various types and general characteristics of wireless transmission media/technologies - microwave, satellite, infrared and radio waves.
Wireless transmission media allows the user to broadcast media, transmit signals without wires over the air or in space.
The general characteristics of wireless transmission are as follows:
a. Microwave transmission: are widely used for high volume- long distance, line-of-sight communication. The line of receiving needs to be in line with the other. The advantages of using this are that it has high bandwidth and is relatively inexpensive form of transmitting technology.
b. Satellite: use communication satellites. It has high bandwidth capabilities and covers large areas
c. infrared: is infrared light that is not commonly visible to human eyesight. It is present in remote controls of DVD players, VCR’s and CD players.
d. Radio waves: send data directly between transmitters and receivers. It can travel through physical objects, inexpensive and easy to install in the business. There are various types of radio signals that can be used. These include digital radio and satellite radio.
3. What is Bluetooth/how is it used?
Bluetooth is a wireless application that has a small area network through some computers and mobile phones. It is a personal area network application that allows two users of Bluetooth to connect to one another and transfer data or information.
4. What are WLAN's, Wi-Fi, WWAN's, WiMax?
WLAN (wireless local area network) is a computer network in a limited geographical area that uses wireless transmission for communication.
Wi-Fi (Wireless Fidelity) is a wired LAN without the cables. The transmission of data is enabled by linking the transmitter with a wireless access point and that WAN access point connects to a satellite which then provides the user internet access.
WWAN (wireless wide area network) connects the user to the internet over a geographically dispersed territory. The two categories of this is cellular radio and wireless broadband.
WiMax has a wireless access range of 31 miles and can transfer data at rates of up to 75 Mbps over a secure system and offers features of voice and video capabilities.
5. What are the drivers of mobile computing and m0bile commerce?
The drivers of mobile computing and mobile commences include:
- Salespeople and other employees that are constantly travelling can be linked to the internet through wireless networks and have access to the firms information as if they were in the office.
- Mobile computing can connect the user to a connection between a mobile and the other computing devices
- The mobility of mobile computing allows personnel to carry a mobile with them and can initiate a real time contact with other systems from wherever they are.
- The broad reach of the mobile can allow the user to be contactable at anytime, anyplace.
- Businesses and individuals can interact in mobile commerce, which allows the business to deliver new services to the customers and to attract new customers.
6. Explain the nature of RFID
RFID or Radio Frequency Identification technology allows the manufacturers to attach tags with antennas and computer chips on goods and then track their movement through radio signals. This form of tracking has replaced barcodes.
7. Identify the 4 main security threats that arise from the use of mobile technologies
The four main security threat arising firm the use of mobile technologies include:
i. rogue access point is an unauthorised access point to a wireless network. A person can use your information through being able to connect to your wireless access point. From this point the person can obtain personal details, passwords and account numbers
ii. war driving is the act of locating WLAN’s while driving around the city which allows a person to intrude the network, gaining information, data and other business resources.
iii. eavesdropping refers to the efforts by unauthorised users to access data that are travelling in wireless networks.
iv. radio frequency jamming is a person or device that intentionally or unintentionally interfering with the transmissions of the wireless networks of the business.
Common wireless devices and their application to business include:
a. Bluetooth: is used to create small personal area networks. Its application to business is that it connects computer devices close to one person to the firm.
b. ultra-wideband: is a high bandwidth wireless technology with transmission speeds in excess of 100 Mbps. It is a good choice for business as it streams multimedia from a personal computer to a television.
c. Near-field Communications: has the smallest range of any short-range wireless networks. It joins the consumer with the business by transferring funds to the point of sale terminals.
d. Wi-Fi: is a wired LAN but does not have the cables. These wireless devices allow the business to connect its employees to internet access in a radius outside the firm.
e. Wireless mesh networks: uses multiple Wi-Fi access points to create a WAN that can be as large as 135 miles. By using many WAN access points it interconnects them for extended use.
f. Wireless broadband: is a wireless access point that allows for broad coverage and internet access. This is suitable for personnel that are in sales and need constant internet access.
2. Describe the various types and general characteristics of wireless transmission media/technologies - microwave, satellite, infrared and radio waves.
Wireless transmission media allows the user to broadcast media, transmit signals without wires over the air or in space.
The general characteristics of wireless transmission are as follows:
a. Microwave transmission: are widely used for high volume- long distance, line-of-sight communication. The line of receiving needs to be in line with the other. The advantages of using this are that it has high bandwidth and is relatively inexpensive form of transmitting technology.
b. Satellite: use communication satellites. It has high bandwidth capabilities and covers large areas
c. infrared: is infrared light that is not commonly visible to human eyesight. It is present in remote controls of DVD players, VCR’s and CD players.
d. Radio waves: send data directly between transmitters and receivers. It can travel through physical objects, inexpensive and easy to install in the business. There are various types of radio signals that can be used. These include digital radio and satellite radio.
3. What is Bluetooth/how is it used?
Bluetooth is a wireless application that has a small area network through some computers and mobile phones. It is a personal area network application that allows two users of Bluetooth to connect to one another and transfer data or information.
4. What are WLAN's, Wi-Fi, WWAN's, WiMax?
WLAN (wireless local area network) is a computer network in a limited geographical area that uses wireless transmission for communication.
Wi-Fi (Wireless Fidelity) is a wired LAN without the cables. The transmission of data is enabled by linking the transmitter with a wireless access point and that WAN access point connects to a satellite which then provides the user internet access.
WWAN (wireless wide area network) connects the user to the internet over a geographically dispersed territory. The two categories of this is cellular radio and wireless broadband.
WiMax has a wireless access range of 31 miles and can transfer data at rates of up to 75 Mbps over a secure system and offers features of voice and video capabilities.
5. What are the drivers of mobile computing and m0bile commerce?
The drivers of mobile computing and mobile commences include:
- Salespeople and other employees that are constantly travelling can be linked to the internet through wireless networks and have access to the firms information as if they were in the office.
- Mobile computing can connect the user to a connection between a mobile and the other computing devices
- The mobility of mobile computing allows personnel to carry a mobile with them and can initiate a real time contact with other systems from wherever they are.
- The broad reach of the mobile can allow the user to be contactable at anytime, anyplace.
- Businesses and individuals can interact in mobile commerce, which allows the business to deliver new services to the customers and to attract new customers.
6. Explain the nature of RFID
RFID or Radio Frequency Identification technology allows the manufacturers to attach tags with antennas and computer chips on goods and then track their movement through radio signals. This form of tracking has replaced barcodes.
7. Identify the 4 main security threats that arise from the use of mobile technologies
The four main security threat arising firm the use of mobile technologies include:
i. rogue access point is an unauthorised access point to a wireless network. A person can use your information through being able to connect to your wireless access point. From this point the person can obtain personal details, passwords and account numbers
ii. war driving is the act of locating WLAN’s while driving around the city which allows a person to intrude the network, gaining information, data and other business resources.
iii. eavesdropping refers to the efforts by unauthorised users to access data that are travelling in wireless networks.
iv. radio frequency jamming is a person or device that intentionally or unintentionally interfering with the transmissions of the wireless networks of the business.
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