Chapter Ten Questions and Answers

Chapter 10

Section 10.1

1. What are some problems associated with assessing the costs of IT?
When assessing the costs of IT, many challenges can arise. One of these major problems that companies face is to allocate fixed costs among different IT projects. Similarly, complications can arise when the cost of a system does not end when the system is installed. Costs for maintaining, debugging, and improving the system can accumulate over many years.

2. What difficulties accompany the intangible benefits from IT?
Benefits can be harder to quantify due to these benefits being in an intangible form. Due to the fact that organizations use IT for several different purposes complicating benefit analysis.As many systems in reality are not implemented on time or within budget constraints creating problems when obtaining a return from an IT investment.If the proposed system is ‘cutting edge’- there may be no previous evidence of what sort of financial payback the company can expect.

3. Define NPV and ROI, and business case approaches.
NPV is the net present value calculation for cost-benefit analysis. ROI is return on investment; it measures the management’s effectiveness in generating profits with its available assets.

Section 10.5

1. What type of companies provides outsourcing service?
The types of companies that provide outsourcing services are small or medium-sized companies with few IT staff and restricted budgets. Large companies may also choose to use outsourcing if for example; they might want to experiment with new IT technologies without making a substantial up-front investment. Software companies; (IBM to Oracle), IT outsourcers; (EDS), also large CPA companies and management consultants; (Accenture).

2. Define ASPs and list their advantages to companies using them.
ASPs Application service provider is an agent or vendor who assembles the software needed by enterprises. The advantages; saves expenses in development stage, helps reduce the cost of software maintenance and upgrading and the company can select another software product from the vendor to meet its changing needs.

3. List some disadvantages of ASPs.
The disadvantages associated with ASPs include:
-ASPs 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 requirements of the application.

Section 10.6

1. List the major steps of selection of a vendor and a software package.
The major steps of selection of a vendor and a software package:
Step 1: Identify Potential Vendors
Step 2: Determine the evaluation criteria
Step 3: Evaluate Vendors and Packages
Step 4: Choose the Vendor and Package
Step 5: Negotiate a contract
Step 6: Establish a service level agreement.

2. Describe a request for proposal (RFP).
An RFP is a document that is sent to potential vendors inviting them to submit a proposal that describes their software package and explains how it would meet the companies needs.

3. Describe SLAs.
Service Level agreements (SLAs) are formal agreements that specify how work is to be divided between the company and its vendors. These divisions are based on a set of agreed-upon milestones, quality checks, and what-if scenarios.

Chapter Nine Questions and Answers

Chapter 9
Section 9.1

1. Describe the decision-making process proposed by Simon.
The decision-making process proposed by Simon includes the four following phases:
Intelligence: where managers examine a situation and identify and define the problem
Design: decision makers construct a model that simplifies the problem
Choice: involves selecting a solution, which is tested “on paper”
Implementation: is only successful if the proposed solution resolves the problem.

2. Why do managers need IT support?
Managers need IT support, as information is vital in all decision-making processes. The availability of information and making decisions is becoming increasingly difficult due to; the number of alternative information, time pressures, conducting sophisticated analysis and large expenses.

3. Describe the decision matrix.
The decision matrix is composed of three primary classes. These three broad categories of the nature of decisions can be combined in a decision support matrix that consists of nine cells.Lower-level manager usually perform the structured and operational control-orientated tasks (cells 1,2 and 4). The tasks in cells 3,5 and 7 are normally performed by middle managers and professional staff. Lastly, in cells 6,8 and 9 the responsibility of these tasks mainly fall on the senior executives.

Section 9.2

1. Describe the capabilities of data mining.
Data mining can perform two basic operations; predicting tends and behaviors and identifying previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future. Data mining automated the process of finding predictive information in large databases. Data mining can also identify previously hidden patterns in a single step.

Section 9.3

1. What are some of the capabilities of digital dashboards?
A digital dashboard provides rapid access to timely information and direct access to management reports.
Some of the capabilities associated with digital dashboards include:
* Drill-down: the ability to go to details, at several levels which can be done by a series of menus or by direct queries.
* Status access: the latest data available on KPI or some other metric, ideally in real time.
* Exception reporting: reports that highlight deviations larger than certain thresholds. Reports may include only deviations.

Chapter Eight Questions and Answers

Chapter 8
Section 8.1

1. What is a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs.
A transactional processing is whereby data worthy of being generated is captured and stored. Therefore, transaction processing systems (TPs) are the systems that monitor, collect, store, and process the above data generated from all business transactions. The key objectives to TPs are to ensure efficiency, avoid errors and downtime, record results accurately and securely, and maintain privacy and security. Generally, their main goal is to ensure that the data put into the organisation’s database is correct.

Section 8.2

1. What is a functional area information system? List its major characteristics.
FAISs provide information mainly to lower- and middle level managers in the functional areas. They use this information to help them plan, organize and control operations. The information is provided in a variety of reports routine reports, ad-hoc reports and exception reports.

2. How does an FAIS support management by exception? How does it support on-demand reports?
To implement management by exception, management first creates performance standards. The company then sets up systems to monitor performance, compare actual performance to the standards, and identify predefined expectations. Managers are alerted to the exceptions via exception reports.

Section 8.3

1. Define ERP and describe its functionalities.
ERP are systems which integrate the planning, management, and use of all of an organisation’s resources. Generally, its main functionality is to integrate the functional areas of the organisation and to enable information to flow seamlessly across the functional areas. In addition, ERP’s control the businesses processes of the organisation which include financial and accounting process, sales and marketing processes and human resources processes.

2. List some drawbacks of ERP software.
Some drawbacks of ERP software include:
-They can be extremely complex
-Expensive
-Time consuming to implement
-Companies must purchase the entire software package even if they require only a few of the modules.

Section 8.5

1. Define a supply chain and supply chain management (SCM).
The supply chain refers to the flow of materials, information, money and services from raw material suppliers, through factories and warehouses to the end customers. SCM is to pan organize and optimize the supply chains activities. SCM utilizes information systems.

2. List the major components of supply chains.
The supply chain involves 3 major segments which include:
1) Upstream- whereby sourcing from external suppliers occur
2) Internal- here, packaging, assemble or manufacturing take place.
3) Downstream- distribution frequently by external distributors occurs.
It is important to note that bidirectional flows of information and goods can take place within the supply chain.

3. What is the bullwhip effect?
Refers to erratic shifts in orders up and down the supply chain.

4. What are some solutions to supply chain problems?
Vertical integration, Using inventories to solve supply chain problems and information sharing.

Section 8.6

1. Define EDI and list its major benefits and limitations.
EDI electronic data interchange (EDI) is a communication standard that enables business partners to exchange routine documents, such as purchasing orders electronically. Benefits: it minimizes data entry errors because each entry is checked by the computer, the length of the message can be shorter and the messages are secured. EDI also reduces cycle time, increases productivity, enhances customer service and minimizes paper usage and storage. Limitations: implementing an EDI system involves a significant initial investment, the ongoing operation costs are high due to the use of expensive, private VANs. It is difficult to make quick changes, EDIs also require a long start up period.

Chapter Seven Questions and Answers

Chapter 7

1. Identify common wireless devices and their application to business.
Wireless devices are convenient and productive technologies that enable users to connect and access web-based information and services. Such devices include pagers, cellular telephones, organizers and blackberry’s. These devices are highly applicable to business as they enable users use their time more effectively; for example when travelling via public transportation they can spend time doing work via their mobile.

2. Describe the various types and general characteristics of wireless transmission media/technologies- microwave, satellite inferred and radio waves.
Microwave transmission a wireless system that uses 226 microwaves for high volume, long distance point-to-point communication. Satellite transmission, a wireless transmission system that uses satellites for broadcast communications. Infrared, a type of wireless transmission that uses red light not commonly visible to the human eye. Radio Waves: system that uses radio-wave frequencies to send data directly between transmitters and receivers.

3. What is Bluetooth/how is it used?
Bluetooth chip technology that enables short-range connection between wireless services. It is an industry specification used to create small personal area networks. It is used normally as an application device for wireless handsets such as cell phones and portable music players.
4. What are WLAN’S, Wi-Fi, WWAN’s and WiMax? WLAN
WLAN’s are wireless area networks which are familiar to medium-range wireless networks. Of these medium-range wireless networks; Wi-Fi (Wireless Fidelity) is the most common type. Wi-Fi is generally a wired LAN but without the cables. WWAN’s are Wide-Area Wireless networks which are used to connect users to the Internet over geographically dispersed territory. WiMax is a secure wireless option that provides features such as voice and video. It has a larger access range to that of Wi-Fi and Bluetooth; with also a data transfer rate of up to 75 Mbps.

5. What are the drivers of mobile computing and mobile commerce?
Mobile computing was designed for workers who travel outside the boundaries of their organisations or for anyone traveling outside his or her home. M-commerce can be transacted via the internet, private communication lines, smart cards and other infrastructures.

6. Explain the nature of RFID
Mobile technologies are extremely applicable to creating business solutions. Business problems such as financial services can be solved through wireless electronic payment systems where individuals can pay for bills, products and services online. Furthermore, such mobile technologies can allow individuals to buy and sell products they normally wouldn’t beable to purchase due to the product not being close to their home. Overall, mobile technologies such as the above and mobile phones, laptops and blackberrys have all helped close the communication gap between businesses and their customers and suppliers.

7. Identify the 4 main security treats that arise from the use of mobile technologies?
The four major treats to wireless networks are rouge access points, war driving, eavesdropping and radio frequency jamming. A rouge access point is an unauthorized access point to a wireless network; war driving is the act of locating WLAN’s while driving around a city or elsewhere; and eavesdropping refers to efforts by unauthorized users to access data that are traveling over other wireless networks. Radio frequency jamming occurs when a person or a device intentionally or unintentionally interferes with wireless network transmission.

Chapter Six Questions and Answers

Chapter 6
Section 6.1

1. Define e-commerce and distinguish it from e-business.
E-Commerce is the process of buying, selling, transferring, or exchanging products. Services or information via computer networks, including the Internet. E-business adds to the above processes as it also refers to servicing customers, collaborating with business partners and performing electronic transactions within an organisation.

2. Distinguish among B2C, B2B, C2C and B2E electronic commerce.
B2C – sellers are orgs and buyers are individuals. B2B – both sellers and buyers are business orgsC2C – individual sells products or services to other individuals. B2E – an org uses electronic commerce internally to provide information and services to its employees.

3. List some benefits and limitations of e-commerce.
Some of the major benefits to E-Commerce is its’ easy accessibility and ability to lower costs. This in turn has benefitted organizations, minimizing costs of processing, distributing and retrieving information. Furthermore, the customer has benefitted through being able to access a vast number of products and services any time and at any location. On a whole, society can now benefit through e-commerce’s delivery of information, services and products to people in cities, rural areas and developing countries.With these benefits though, E-commerce has its’ drawbacks. These limitations include the lack of universally accepted security standards, expensive accessibility and insufficient telecommunications bandwidth.

Section 6.2

1. List the major issues relating to e-tailing.
The major issues relating to e-tailing are channel conflict and order fulfillment. Channel conflict is where conflict may occur for companies with their regular distributors when selling online to customers. Channel conflict can arise in areas such as pricing of products, services and resource allocation.Order fulfillment can occur at any given time where a company sells to customers directly and is involved in a variety of other order-fulfillment activities.

2. What are spamming, permission marketing and viral marketing?
-Spamming: is the indiscriminate distribution of electronic ads without permission of the receiver.
-Permission Marketing: as consumers to give their permission to voluntarily accept online advertising and e-mail.
-Viral Marketing: refers to online “word-of-mouth” marketing. The idea behind viral marketing is to have people forward messages to friends.

Section 6.4

1. List the various electronic payment mechanisms.
Electronic payment mechanisms include electronic checks, electronic credit cards, purchasing cards and electronic cash. Electronic credit cards allow customers to charge online payments to their credit card account. Electronic checks is where a customer wishes to use e-checks and established a checking account with a bank. And purchasing cards are normally used for unplanned B2B purchases where corporations normally limit the amount per purchase. Electronic cash appears in forms such as stored-value money cards, smart cards, person-to-person payments and digital wallets.

2. What are micropayments?
Micropayments are reffered to as small payments of a few dollars or less for goods that are purchased over the internet. These payments are normally transferred with a lower security.

Section 6.5

1. List some ethical issues in EC.
-Presents some threats to privacy. For example, most electronic payment systems know who their customers are.
-Issue of tracking. This is seen as an ethical issue as an individual’s activities on the internet can be tracked by cookies.
- It may eliminate the need for some of a company’s employees, as well as brokers or agents.

2. List the major legal issues of EC.
-Fraud on the Internet: For example, the internet allows stock promoters to falsely mislead and spread positive rumours about the prospects of the companies they recommend in order to boost the stock price.
-Domain Names: problems arise when companies with similar names compete over a domain name. As companies who sell goods and services want customers to find them easily over the internet; the most effective way in doing so is where the domain name matches the company’s name.
-Cybersquatting
-Taxes and other fees
-Copyright

Chapter Five Questions and Answers

Chapter 5

1. Describe the three network applications that we discussed in this section and the tools and technologies that support each one.
· Discovery: involves browsing and information retrieval, and provides users with the ability to view information in databases download it and or process it. Discover tools include search engines, directories and portals.
· Communications: networks provide fast inexpensive communications, via e-mail, blogs, call centres, chat rooms and voice communications

2. What are the business conditions that are leading to the increased importance of videoconferencing?
Businesses are competing in a global market; it is too hard and to expenses to communicate face-to face so through videoconferencing they combat these issues.

3. Describe the underlying technologies, applications and types of Web sites that comprise Web 2.0.
The information technologies and applications used by Web 2.0 sites include XML, AJAX, tagging, blogs, Wikis, Really Simple Syndication, podcasting and video casting. The websites that comprise Web 2.0 include social media sites, aggregators and mash-ups.

4. Describe the function of Web services.
Web services are applications, delivered over the internet that users can select and combine through almost any device, from personal computers to mobile phones. By using a set of shared protocols and standards, these applications permit different systems to talk with one another- that is, to share data and services without requiring human beings to translate the conversation.

5. Describe the function of service-oriented architectures.
A service-orientated architecture (SOA) is an IT architecture that makes it possible to construct business applications using Web services. The Web services can be reused across an organisation in other applications.

Chapter Four Questions and Answers

Chapter 4

1. What are some of the difficulties in managing data?
In relation to managing data, many difficulties can arise. These include difficulties such as data is constantly added and saved and the amount of data that needs to be managed expands. Individuals use numerous methods and devices in which to store this data as it (data) is scattered throughout the organisation. As much of the new data is unstructured, their content cannot be truly represented in a computer record making it difficult to manage. As companies grow and change frequently; it can be challenge to ensure new employees do not jeopardize data. Also, over time data decays e.g. customers move to new addresses. Legal requirement also make data management difficult. As these laws are different within each company; data security and integrity can be easily jeopardised.

2. What are the various sources for data?
The various sources of data include Internal Data, External Data and Personal Data.

3. What is a primary key and a secondary key?
A primary key is the identifier field or attribute that uniquely identifies a record. A secondary key is whereby the identifier field or attribute has some kind of identifying information, but typically does not identify the file with complete accuracy.

4. What is an entity and a relationship?
An entity involves a person, thing, place or event where information is maintained in a record. It is the number of entities in which make up a relationship and the degree of the relationship. The main types of relationships include binary, one-to-one, one-to-many and many-to-many.

5. What are the advantages and disadvantages of relational databases?
Relational databases are usually designed with a number of related tables; where each of these tables contains records (listed in row) and attributes (listed in columns). An advantage of relational databases include allowing users great flexibility in the variety of queries they can make; a disadvantage to this though as large scale databases can be composed of many interrelated tables, the overall design can be complex creating slow access times.

6. What is knowledge management?
Knowledge management is a useful concept whereby it aids organizations in an attempt to manipulate important information that is part of the organisation’s memory. This is normally in an unstructured format. For a particular organisation to be successful in relation to capital, knowledge must exist in an exchangeable format.

7. What is the difference between tacit knowledge and explicit knowledge?
Tacit knowledge involves ‘the cumulative store of subjective or experiential learning; highly personal and hard to formalize knowledge’. This is comparably different to explicit knowledge which is objective rather than subjective, and is also rational with technical types of knowledge.