December 1999
IM218 :INFORMATION MANAGEMENT

QUESTION 2

Total Marks: 15 Marks

• Question 1
• Question 3
• Question 4
• Question 5
• Cover Page

SUGGESTED SOLUTIONS
Solutions and allocated marks are indicated in green.
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Give one disadvantage each of locating data processing functions within user departments and within a service department.

Locating data processing functions within user departments may increase costs, as resources are duplicated. On the other hand, locating within a service department may lead to longer design and development times, as centralized staff are less familiar with users' needs. (1 mark for each disadvantage; any reasonable answers should be accepted.)

When should one choose an independent location, directly under the control of the head of the organization, in favour of locating data processing functions within a service department?

Location within a service department is suitable only for small to medium-sized enterprises; for larger organizations, an independent location is better.

Application organization (AO), functional organization (FO) and matrix organization (MO) are three approaches to organizing data processing activity.

(i) What is the main advantage of AO, compared to FO? [1mark]

AO creates specialization: each unit has specialized knowledge of their user counterparts (marketing, finance, and so on).

(ii) What is the main disadvantage of AO, compared to FO? [1 mark]

Problems arise in integrating systems between functional units.

(iii) Describe a problem of FO, and explain how it is alleviated by MO.
[2 marks]

With FO, as units are not dedicated to specific groups of users, it may take some time for each unit to become familiar with an application (1 mark). With MO, there is a project manager or coordinator for each project, to provide some continuity throughout the lifetime of the project (1 mark).

Your organization is planning to set up a data processing department. Management has found that there is a shortage of managerial and data processing staff in the organization, and recruitment of such staff is difficult at the present time.

(i) Should the organization adopt a centralized or a dispersed data processing department? Justify your decision. [1 mark] UA centralized department is better, so that upper management can exert tighter control over the weak departmental management. (No justification, no mark.)

(ii) Outline two advantages and two disadvantages of your choice. [4 marks]

Advantages:

 ease in enforcing standards;

 ease in controlling application development;

 economies of scale;

 specialization and more comprehensive mix of staff.

Disadvantages:

 slower response to changes in needs;

 less opportunity for direct interaction with users.

(1 mark for each advantage, to a maximum of 2 marks; 1 mark for each disadvantage, to a maximum of 2 marks. Watch for consequential error: if they happen to get part (i) wrong, they should get these advantages and disadvantages the other way round.)

Briefly discuss how the advancement of information technology in each of the following areas has encouraged decentralization of data processing.

(i) invention of personal computers;

Cheap small computers make it affordable to implement systems at local sites.

(ii) proficiency of end-users;

Increasing use of personal computers in homes and businesses has provide many people with better information technology skills.

(iii) advances in security.

Privacy is at risk when transmitting data from one site to another, but encryption algorithms such as DES and RSA can ensure privacy even over vulnerable communication links. (1 mark for each; no discussion, no mark).