August 1999
IM218 :INFORMATION MANAGEMENT

QUESTION 1 (Compulsory)

Total Marks: 20 Marks

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Question 1

(a) A number of challenges arise in the process of constructing and running an efficient information system. Identify and describe three such challenges. [6]
The strategic Business Challenge:
To stay competitive , many organizations need to be redesigned to use information technology to simplify communication and coordination, eliminate unnecessary work, and eliminate the inefficiencies of outmoded organizational structures.

The Globalization Challenge:
The emergence and rapid growth of a global economy call for information systems that can support trade in many different countries. Organizations must develop global systems and communications standards and create cross-cultural accounting and reporting structures.

The Information Architecture Challenge:
Firms still need to have a clear idea of business goals and how these can be supported by information systems. Many companies are crippled by a failure to integrate various computing resources and data into a coherent structure.

The Information Systems Investment Challenge:
Senior management can be expect to ask whether it is possible when using information technology to produce and maintain new products. Deciding if the entire system is worthwhile is difficult.

The Responsibility and Control Challenge:
Information systems are so essential to business, special care must be taken to ensure that they are accurate, reliable and secure. The potentials for massive fraud, error, abuse and destruction are enormous. Factors such as health, safety, job security and social wellbeing must be considered.

 

(b) Discuss two advantages and two disadvantages of locating data processing activities within a user department. [4]
Advantages:
  • since the data processing function is in the department itself, users have direct control of DP resources;
  • since the costs come out of their own budget, users tend to use the DP resources more efficiently.

Disadvantages:

  • since different user departments have their own company resources, the overall cost of DP will be higher as resources are duplicated;
  • integration of DP activities will be difficult to achieve;
  • organizational standards and practices will be difficult to enforce.

 

(c) 'On the job' training is one method for training staff in an organization. Briefly discuss two other methods that may be used in training staff. [2]
Learner=paced, vendor-supplied courses:
usually multimedia-based courses, structured in such a way that students can study at their own pace;

In-house seminars run by external trainers:
vendor may need to provide customized courseware and training syllabus on a specific subject;

Internally-developed in-house seminars:
often used when there is no possibility of obtaining training elsewhere; the company must develop its own training programmes;

Off-site vendor seminars:
most effective method for a highly-technical subject with a small number of trainees; high cost, so some companies send some key personnel, who will return to share the information with others in their groups.

 

(d) The monopolistic and laissez-faire approach are two approaches to managing end-user computing and development. Discuss one advantage and one disadvantage of each approach. [4]
monopolistic:
effective in enforcing standards, but stifles growth of EUC/D;

laissez-faire:
encourages and users to be independent, but can lead to a proliferation of incompatible systems and data.

 

(e) Many system executives believe that outsourcing will decrease their influence and control. Give two suggestions for helping to prevent these executives from losing control in outsourcing. [4]
  • The executive should have regular formal or informal meetings with users, to ensure that the outsourced activities meet user expectations.
  • The organization should draw up a clear service agreement with the vendor.
  • Regular review meetings should be conducted with the vendor to monitor services and maintain control.