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Mbad 504:Management Information Systems Question Paper
Mbad 504:Management Information Systems
Course:Master Of Business Adminstration
Institution: Kenya Methodist University question papers
Exam Year:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 3 HOURS
INSTRUCTIONS Answer Question ONE and any Other THREE Questions
Business travels and entertainments are requirements of many jobs and often a hefty component of corporate expenses. According to American Express Technologies travel entertainment for Kenyan companies’ amount to more than Ksh 200 billion each year. In 2004; Sanal Global Enterprises spent Ksh 400million on airline Tickets alone while Modern Business Enterprises spent Ksh 250 million.
Processing travel and entertainment expenses report adds to the cost. The cost to process a single expense report is Ksh 3000. An employee takes approximately 57 minutes to complete an expense report. Processing travel and entertainment expenditures is especially burdensome for smaller companies whose processes tend to be paper-based. About 650 of Sanal’s 1200 employees regularly file expense reports to its accounting department. 3 full-time employees are required to manually approve process and audit 300 expense reports per week, most from remote location. Expense disbursements are delayed for several weeks.
Sanal Global Enterprises has decided to implement Concur Expense Service Software, which automates the travel and entertainment expense reporting process. Employees can input their expense data via a web interface from wherever they are working with a computer or by telephone or Palm handheld device. The system also automatically imports travel and expense data from corporate credit cards. Electronic receipt imaging uses any available fax machine to digitize and attach receipts to expense reports.
Managers approve reports with just a mouse click, cutting processing time in half while boosting accuracy and productivity. Reports produced by the system help mangers keep tabs on travel spending as transactions occur. Control and compliance tools help firms minimize fraud and maximize compliance with company policies and government regulations. A built-in audit feature automatically flags expenses that are not in compliances with the company policies. This feature help companies identify who are not booking airline flights with their company’s preferred vendors, those who are “padding” their expense account with fictitious expenses for taxis and tips, or even those who use their expense accounts for unauthorized purchases.
Since implementation of the said systems, Sanal Global enterprises have been able to reduce staff size for travel and expense processing down to one person and reduce the time to reimburse employees to a few days. It has used information provided by the system to negotiate better rates from the preferred vendors, saving over Kshs 134 million. Altogether, Sanal Global Enterprises has realized over Kshs 1 million in savings representing a return on investment of 19 percent per year. Given that the system implemented for Sanal Enterprises are web based a number of security issues needs to be addressed to safeguard the system against online fraud.
The managing director of the company thinks that a lasting solution to the company’s problem would be to implement an information system that spans functional areas, focus on executing business processes across business firm, and include all level of management. He feels the company can evaluate two options available for implementing this system. The options available at their disposal include buying a ready made solution or in house development.
Question 1
a)Suggest any three kinds of systems that are described in this case? What kind of information do they provide? (5marks)
b)The implementation of the said system must have arisen due to a number of business problems. What problems do the automated expense reporting systems solve for the company? (3marks)
c) Explain the term online fraud citing two ways in which they can manifest themselves in the above case (4marks)
d) Discuss four methods that can be used to secure the system from this abusive use (4marks)
e) In order to develop a system that would provide a lasting solution for the company’s problems, the systems developer must identify the key business processes that seems to span the multiple business functions and organizational levels. As the systems user identify the five key business functions you would recommend (5marks)
f) Discuss any four business objectives that could have led Global Enterprises to invest in this information system (4marks)
Question 2
a) The development of Concur Expense Service Software System required certain organizational and technical issues to be addressed. Identify and discuss the key organizational and technical issues the organization must address before implementing this system (5marks)
b) List five key questions that the company must ask when evaluating the strategic value of the system. (5marks)
c) Discuss any two methods that Sanal Global Enterprises could have used to determine the potential profitability of this system (5marks)
Question 3
Systems approach views the business organizations a system of interrelated parts designed to accomplish goals. Managers must organize various business activities of the business into separate organizational subsystems. Use a schematic illustration to discuss how market research, manufacturing, the marketing and service subsystems can be organized to support the business goals. (15marks)
Question 4
a) During a bespoke development project, the systems development life cycle will include a number of steps ranging from requirement analysis design, system implementation to its maintenance. Which of these steps is relevant to an off-the-shelf system? Explain the activities that might be involved. Based on your understanding; explain how this approach to systems development would sharply contrast to the traditional systems development. (10marks)
b) It is always important to follow systems analysis and design methodologies when building information system. Why is this case? Explain what is likely to happen if the system is built in a random manner. 5marks)
Question 5
a) Many text books state that Management Information Systems support the solutions of structured problems but that the Executive Support Systems and Decision Support Systems support solutions of structured problems.
i) Explain what is meant by a structured problem or decision (3marks)
ii) Explain what is meant by unstructured problem or decision (3marks)
iii) For each of these two types of problems or decisions, give an example that clearly illustrates the points you have made. (4marks)
b) Discuss the problem solving procedure in an enterprise outlining the role of information systems in this endeavor. (5marks)
Question 6
a) Most organizations are striving to upgrade their intranets into extranets in order to become more completive.
i) Differentiate between the term intranet and extranet (4marks)
ii) Identify and explain four major business activities that companies can transact over the extranets (4marks)
b) Explain what you understand by the term ‘electronic business (e-business)’ and discuss its potential benefits to the customer (7marks)
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