Information Technology & Systems (MB231) January 2005

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Question Paper

Information Technology & Systems (MB231) January 2005

Section A : Basic Concepts (30 Marks)
• This section consists of questions with serial number 1 - 30.
• Answer all questions.
• Each question carries one mark.
• Maximum time for answering Section A is 30 Minutes.
1. The main goal of database modeling is to eliminate redundant data by breaking each table into smaller
tables. This process is referred to as
(a) Structuring (b) Randomizing (c) Analyzing (d) Normalizing (e) Actualizing.
< Answer >
2. Which of the following controls specify how an organization’s computer and network resources should
be operated for maximum security?
(a) Procedural controls (b) Information system controls
(c) Output controls (d) Input controls (e) Facility controls.
< Answer >
3. In a spreadsheet program, a macro is known as
(a) Keyword (b) Function (c) Constant
(d) A set of operations that accomplishes multiple tasks
(e) A set of operations that accomplishes a specific task.
< Answer >
4. Which of the following is not an advantage of a flowchart?
(a) It is easier for a programmer to explain the logic of a program to others
(b) It acts as a road map for the programmers to write the concerned program
(c) While executing a program if a bug is detected, it is easy to find out the reason by going through
the logic of a program in the flowchart form
(d) There are no standards determining the amount of detail that should be included in a flowchart
(e) A macro flowchart acts as a system model that can be broken down into detailed parts for study
and further analysis of the system.
< Answer >
5. Which of the following statements is/are true regarding decision tables?
I. They are easier to draw and change than charts.
II. They provide more compact documentation.
III. It is easier to follow a particular path down one column than through several flowchart pages.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) Both (II) and (III) above (e) All (I), (II) and (III) above.
< Answer >
6. Which of the following statements is/are false regarding a Database Management System?
(a) The physical level is the lowest level of abstraction that describes how the data is actually stored
(b) At the logical level, a customer record can be described as a block of consecutive storage locations
(c) At the logical level, each record is described by a type definition and the interrelationship among
these records is defined
(d) At the view level, users see a set of application programs that hide details of the data types
(e) View level is the highest level of abstraction that describes only a small part of the entire database.
< Answer >
7. Which of the following data models are used in describing the data at the logical and view levels?
I. Object based logical models (OBLM).
II. Record based logical models (RBLM).
III. Physical data base model.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) Both (I) and (II) above (e) All (I), (II) and (III) above.
< Answer >
8. A relational database system needs to maintain data about the relations, such as the schema, the schema
of the relations. This information is called
(a) Data dictionary (b) Data definition (c) Data planning
(d) Data mining (e) Data warehousing.
< Answer >
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9. Which of the following layers is responsible for establishing an error-free communications path
between computers over the physical channel?
(a) Data link layer (b) The network layer (c) The session layer
(d) The presentation layer (e) The application layer.
< Answer >
10. The difference(s) between PBX (Private Branch Exchange) and Centrex networks is/are
I. In a Centrex network the switching equipment is located in one of the telephone company’s
“central exchanges” instead of on the premises of a business.
II. Unlike PBX, a Centrex network incorporates data-over-voice technology for transmissions.
III. A Centrex network consists of large-scale networking systems that enable a business with several
offices in the same area whereas a PBX is a telephone multiplexer connecting a large number of
in-house telephones to a smaller number of external lines that lead to the service provider’s
telephone exchange.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
< Answer >
11. Which of the following devices convert digital signals from input/output devices into appropriate
frequencies at a transmission terminal and convert them back into digital signals at a recurring terminal?
(a) Modems (b) Multiplexers (c) Routers (d) Hubs (e) Gateways.
< Answer >
12. Which of the following is/are process(es) of rapid systems development and testing of working models
of new applications through an interactive, iterative process of an evolutionary nature?
I. Prototyping.
II. Rapid Application Design.
III. Process design.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
< Answer >
13. Which of the following is not true about an Effective Worksheet in a Spreadsheet program?
(a) Worksheet has a proper title
(b) The worksheet’s purpose has been clearly indicated
(c) Instructions are provided that specifically state how one should type numbers, such as percentages
or currencies
(d) Input cells are provided for user-supplied data and cell references are used to bring those input
numbers into formulae
(e) Data entry areas are same as calculation and result areas.
< Answer >
14. Periodic preparation of data and periodic processing in groups is/are called
I. Batch processing.
II. Online processing.
III. Large scale processing.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
< Answer >
15. Which of the following is a performance monitoring system for shop floor operations?
(a) Computer Aided Manufacturing (b) Computer Aided Design
(c) Computer Aided Engineering (d) Manufacturing Execution System
(e) Computer Aided Process Planning.
< Answer >
16. Which of the following contains a collection of documents inter-linked by hyperlinks over the Internet?
(a) Intranet (b) Local Area Network
(c) Metropolitan Area Network (d) World Wide Web
(e) Internet Paging.
< Answer >
17. The arrow shaped symbol that is used in a flowchart to designate entry to or exit from a page is called
(a) Terminal symbol (b) On page connector symbol
(c) Input/Output symbol (d) Off page connector symbol
(e) Annotation symbol.
< Answer >
18. To reach multiple small groups, Teleconferencing can be done using
I. Television Broadcasting.
II. Closed Circuit Televisions.
< Answer >
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III. Open Circuit Televisions.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (II) and (III) above (e) All (I), (II) and (III) above.
19. Which of the following is/are the issue(s) of Ethical and Social dimensions of IT?
I. Privacy.
II. Encryption.
III. Accessibility.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
< Answer >
20. Which of the following commands in Unix is used to both backup and restore files, to or from tapes or
diskettes?
(a) cp (b) copy (c) move (d) tar (e) copy file.
< Answer >
21. Which of the following is not true about an Integer Constant in ‘C’ programming language?
(a) It should have at least one digit
(b) It must not have a decimal point
(c) Commas or blanks are allowed within an Integer Constant
(d) It can be either positive or negative
(e) It is assumed to be positive if no sign precedes the Integer.
< Answer >
22. Which of the following is not true about static variable in ‘C’ language?
(a) It is stored in memory
(b) Its default initial value is zero
(c) Value of the variable persists between different function calls
(d) It is initialized more than once in a program
(e) It may be internal or external, depending on the place of declaration.
< Answer >
23. In Novell Netware Operating System, NLM stands for
(a) Netware Loadable Modules (b) Netware Link Modules
(c) Network Loadable Modules (d) Network Link Modules
(e) Network Line Modules.
< Answer >
24. In which of the following types of multitasking, does the Operating System regain control, when an
application stops running and crashes?
I. Co-operative multitasking.
II. Preemptive multitasking.
III. Virtual multitasking.
(a) Only (I) above (b) Only (II) above (c) Only (III) above
(d) Both (I) and (II) above (e) Both (I) and (III) above.
< Answer >
25. Which of the following focuses on how well a proposed information system supports the objectives of
an organization and its strategic plan for information systems?
(a) Organizational feasibility (b) Economic feasibility (c) Technical feasibility
(d) Operational feasibility (e) Systems feasibility.
< Answer >
26. Which of the following is/are the method(s) of file organization by which we can organize the data on
storage devices in such a way that it corresponds closely to the manner in which we expect data to be
accessed?
I. Sequential. II. Direct. III. Indexed.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
< Answer >
27. Class(es) of data types supported by ANSI C is/are
I. User defined data types.
II. Empty data set.
III. Derived data types.
(a) Only (I) above (b) Only (II) above (c) Both (I) and (II) above
(d) Both (I) and (III) above (e) All (I), (II) and (III) above.
< Answer >
28. Which of the following statements in ‘C’ programming language tests the value of a given variable
against a list of case values and when a match is found, a block of statements associated with that case
< Answer >
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is executed?
(a) Switch (b) Break (c) Case (d) If-else-if (e) If-else.
29. Which of the following are ready-made designs in a Presentation Graphics Software that include an
overall layout, font and font-size choices, a color scheme and other design elements?
(a) Designs (b) Groupings (c) Templates (d) Formats (e) Programs.
< Answer >
30. Which of the following is not true about a Linked List in C?
(a) Linked List is a list whose order is given by links from one item to the next
(b) Each structure of a Linked List is called a node
(c) Each node in a Linked List consists of two fields, one containing the item (value) and the other
containing the address of the next item
(d) The link is in the form of a pointer to another structure of the same type
(e) A Linked List is a collection of structures ordered by their physical placement in the memory.
< Answer >
END OF SECTION A
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Section B : Caselets (50 Marks)
• This section consists of questions with serial number 1 – 7.
• Answer all questions.
• Marks are indicated against each question.
• Detailed explanations should form part of your answer.
• Do not spend more than 110 - 120 minutes on Section B.
Caselet 1
Read the caselet carefully and answer the following questions:
1. Describe the problems Vison Operations had with its information systems prior to installing its enterprise system.
(5 marks) < Answer >
2. What management, organization and technology problems did Vison Operations face in putting their enterprise
system into effect?
(9 marks) < Answer >
3. How did implementing an enterprise system change the way it ran its business?
(9 marks) < Answer >
4. Was installing an enterprise system the right solution for Vison Operations? Explain.
(7 marks) < Answer >
Vison Operations Enterprise System Struggle
In the early 1990s Vison Operations was a United States leader in the production and sale of such building materials as
insulation, siding, and roofing, but management wanted the company to grow. The company had only two possible
paths to growth: offering a fuller range of building materials, and/or becoming a global force. To increase its range of
products Vison Operations decided to acquire other companies. To become a global force, management realized the
company would need to become a global enterprise that could coordinate the activities of all of its units in many
different countries.
Headquartered in Toledo, Ohio, Vison Operations had been divided along product lines, such as fiberglass insulation,
exterior siding, and roofing materials. Each unit operated as a distinct entity with its own set of information systems.
(The company had more than 200 archaic, inflexible, and isolated systems.) Each plant had its own product lines,
pricing schedules, and trucking carriers. Vison Operations’ customers had to place separate telephone calls for each
product ordered---one each for siding, roofing, and insulation. The company operated like a collection of autonomous
fiefdoms.
Vison Operations’ management believed that implementing an enterprise system could solve these problems. The
company selected enterprise software from SAP AG to serve as the foundation for a broad company overall. "The
primary intent with SAP was to totally integrate our business systems on a global basis so that everyone was operating
on the same platform with the same information," answered Vijay Saxena, sourcing manager for the insulation and
roofing business. Saxena wanted to centralize purchasing. "Prior to SAP," he said, "we were buying widgets all over the
world without any consolidated knowledge of how much we were buying and from whom. Now [using SAP's R/3
software] we can find out how many widgets we're using, where they're being purchased, and how much we paid for
them, [allowing] us to consolidate the overall acquisition process.” Now, he added, “we can. . . make better business
decisions and better buys”. Saxena expected the company's material and supply inventories to drop by 25 percent as a
result.
However, the project to install SAP's enterprise system would ultimately cost Vison Operations about $100 million and
take several years, which was too expensive and time consuming to be justified only by the reasons given by Saxena.
The company hoped that the new system would also enable it to digest acquisitions more easily. Vison Operations
wanted to acquire other companies to expand its product line so that it could increase sales from $2.9 billion in 1992 to
$5 billion within a few years. That meant that Vison Operations would have to digest the archaic, inflexible systems
from the companies it purchased. If Vison Operations were to become a global enterprise, it would need a flexible
system that would enable the company to access all of its data in an open and consolidated way.
ERP experts point out that simply converting to ERP systems does not solve companies' problems. "Unless a company
does a lot of thinking about what its supply chain strategy is and articulating what its business processes are, these tools
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are going to be of little use," explained Mark Orton, of the New England Supplier Institute in Boston.
Vison Operations project began with its insulation group, and those on the project team understood this. They
undertook a redesign process before implementing SAP's R/3. They set up cross-functional teams because "We had to
identify the handoffs and touch points between the various functions," said Moke Morey, the division's ERP
implementation project manager. He explained "My team, for example, had accountability for the process that runs
from the time we need to buy something through the payment issuance to the supplier. Other areas, such as logistics and
accounting, touch this process." The teams also kept in close touch with suppliers who needed to know what Vison
Operations would require of them. As a result of the redesign, purchasing decisions were moved from the plants up to a
regional level, enabling commodity specialists to use their expertise and the leverage of buying for a larger base to
improve Vison Operations’ purchasing position. The teams also decided to make it a requirement that all suppliers have
a capability to send the company digital information that could be fed directly into its enterprise system.
How did the first ERP project go? Over a weekend in March 1997, a team of about 60 people transferred legacy data
into the SAP system, and on Monday morning the company went live. That morning Vijay Malhotra, president of the
roofing and asphalt unit, called the manager of his Medina Ohio plant to ask how it was going. "Better than expected,"
was the report. However, Vison Operations director of global development, David Johns, later concluded, "When we
first went live with SAP, it was a tough time." He said that overall productivity and customer service dropped sharply
during the first six months. "When you put in something like SAP, it's not a mere systems change," he said. "You're
changing the way people have done their jobs for the past 20 years."
The first problems that surfaced were technical. According to Johns, application response time had increased from
seconds before ERP to minutes under the new system. Other technical problems also emerged. For example Johns said,
"The functionality wasn't working the way it was supposed to." Johns believed that the source of these problems was
inadequate testing. "The first week [after going live] we just focused on the technical issues," said Johns. The team
further tuned the software and over the next weeks response time reduced to an acceptable speed, and slowly the
software began operating smoothly.
However, "after we fixed some of the technical problems, we started peeling back the onion and saw that this was much
bigger than a technology problem," explained Johns. "We saw that there were problems in the business, problems with
the way people's new roles had been defined, communication and change management issues, and business process
issues." For example, the SAP system demanded that the entire corporation adopt a single product list and a single price
list. Staff members initially resisted. Vison Operations employees had not been properly trained and they were
overwhelmed, resulting in a lot of errors. Johns explained that at Vison Operations "we underestimated the impact that
swapping out all our old systems would have on our people." Users had indeed been properly trained on their own
functions, but ERP systems are integrated, and the users did not understand the impact their work was having on other
departments.
ERP systems are complex and errors ripple throughout the system. When using the old systems, employees had time to
correct data entry mistakes, and if they were not caught, they only affected the local function. However, now that they
were using R/3, the databases are immediately updated. Thus, for example, the data flows instantly from sales to
purchasing, production and logistics systems. Johns offered another example. "If you're at a warehouse, and you don't
tell the system when a truck is leaving the dock, the truck can still leave, but the customer will never get an invoice for
the goods. Accounting won't find out later because the transaction will never get to them." Such errors can be costly.
Users needed to be more careful as they did their jobs. To motivate users to work with more care, they needed to
understand the complexities of the system. They had to know how their errors would affect other workers and even
company profitability.
To address this problem the company quickly instituted a new training approach. Training now would include
information on the larger system and its complexities so that users would understand the impact of their work. Under
the new training regimen, all employees were denied access to the system until they had passed a test and became
certified. Those who failed the test had to return to training until they could pass it. About 20% of Vison Operations
employees never passed the test and had to change jobs. This job shifting was massive and time-consuming, causing
organizational disruption. Whereas the original project training was budgeted for 7% of overall costs, training
eventually consumed 13% of the budget.
Customers also suffered. Vison Operations had been known for its excellent customer service, but the quality of that
service declined sharply after the SAP system went live. Many customers were shocked, and some began turning to
other suppliers. Vison Operations began losing important customers. The company was forced to devote a great deal of
personnel time rebuilding relations with its customers while simultaneously having to repair both its organization and
the software installation.
ERP implementation problems of this type are common. According to Barry Wilderman of the Meta Group, ERP
projects often result in a negative return-on-investment (ROI) for five or more years. Why? Because ERP systems are
so complex. The company may not understand all that needs to be done in preparation. Moreover, these systems are
expensive, and testing and training will often get cut for budgetary reasons. Not only do employees need to become
accustomed to new ways of doing business, but customers and suppliers may need to change their business processes as
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well.
How successful was the whole project? Management believes it has been a success. Johns said "We made each mistake
only once. Each deployment [in the rollout] got better." For instance, "We do a lot more testing now before we go live,"
he said, "to make sure that all the different pieces of the system work together." Mike Radcliff pointed out that
customers now have a single point of contact for all orders. Moreover, he adds, "With our old system, we didn't know
what inventory we had in stock. We would have to check around and get back to the customer." Today, he continues,
"we can see what inventory is available, when it will be produced, and who is the lowest-cost carrier. We can commit to
the customer before we hang up the phone." He noted, however, that the changes have been massive. He estimates that
about 10,000 people were involved with the reengineering effort. "Just about everybody's role in the organization has
changed."
The ERP systems rollout was completed in 2000. During those years, Vison Operations acquired and integrated 17
companies, successfully expanding their product offerings. Company sales have reached $5 billion annually. Because
of the new system, Vison Operations has been able to reduce its inventory significantly, while centralizing coordination
of various functions and divisions. Lot size and machine allocations have become more efficient. The company can
perform production planning and control globally because it has one uniform system to work with. The integrated
system lets the company leverage common carriers and take advantage of overlapping transportation routes. Managers
can use the system to identify its biggest suppliers across the entire company and use that information to negotiate bulk
discounts. A customer needs to call only one location to place an order. Factory production managers no longer have to
concern themselves with taking customer orders, tracking logistics or after-sales service. Because centralization applied
not only to United States Operations but also to foreign activities, the corporation has been transformed into a truly
globalized enterprise.
Organizationally the role of Vison Operations information systems department has changed dramatically. Prior to the
enterprise system project, the information systems department saw its role as limited to technical support. It used to be
that if there were problems with the system, the IS staff would check it to see if it was running properly, and if it was, it
would throw the problem back to the business units to solve. Since transactions flowing through the enterprise system
impact the entire business, the information systems department has become responsible for the entire business problem.
However, the information systems department does not try to solve business problems alone. They only act on them if
they have the full involvement of the business units.
Unfortunately, Vison Operations is facing a major problem unrelated to its information technology. On Thursday,
October 5, 2000, Vison Operations filed a petition for reorganization under Chapter 11 bankruptcy protection.
According to Vison Operations, the company "took this action in order to address the growing demands on its cash flow
resulting from its multi-billion dollar asbestos liability. The filing will enable the company to refocus on operating its
business and serving its customers, while it develops a plan of reorganization that will resolve its asbestos and other
liabilities and provide a suitable capital structure for long-term growth." The company claims it will emerge from
bankruptcy by 2003. However, Vison Operations has continued to build for the future. For example in December 2001,
it purchased Denver Colorado's Wall Technology. Nonetheless, we will be unable to judge its IT success until after it
emerges from bankruptcy.
Caselet 2
Read the caselet carefully and answer the following questions:
5. State the goals of the total project. List and explain the various problems the company is facing so that the
companies submitting proposals will understand the overall project (all phases) it will have to address.
(8 marks) < Answer >
6. Briefly name and describe in the appropriate order each phase the company will have to execute to complete the
whole project.
(5 marks) < Answer >
7. Develop an overview of the systems you would recommend for APCO, and explain how each of these systems
would address the problems listed in your goals.
(7 marks) < Answer >
Can APCO Insure Its Future with a New System
APCO, short for the Automobile Protection Corp., is a little known company whose field is automotive service
insurance and whose goal is to market and administer contracts that cover both automobile warranties and service
contracts. Headquartered in Atlanta, Georgia, the company was launched in 1984 and was acquired by Ford in 1999 for
$165 million. Its contracts are actually insurance policies that cover the costs of repairing vehicles—contracts that
dealers offer when customers purchase a vehicle. While some dealers insure for repairs themselves, usually these
contracts are actually offered by insurance companies in the name of the dealers and they are usually sold through the
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dealers.
APCO is neither a dealer, a service organization, nor an insurer but instead arranges for warranting and servicing
insurance with various insurance companies. It then markets these policies as service contracts or warranties through
the automobile dealers. Once these contracts are sold to the vehicle purchasers, APCO administers them through the
dealers. It also handles private-label service contracts for partners who finance and sell their own contracts and then
engage APCO to administer them. Its private-label partners include such well-known companies as Allstate, American
Honda Finance, Bank One, Manhein Auto Auctions, Mazda USA, and Volvo Canada. APCO markets its products
under the trade name Easycare.
While APCO had only $8 million in sales in 1989, its fifth year, by the year 2000, its sales had grown to $165 million,
and were expected to grow 9 to 10 percent in 2001. In year 2000 APCO had about 1,200 dealer-customers in the United
States. About two percent of all extended automobile service contracts sold in the United States are sold through
dealers. This leaves a huge potential market for APCO to expand into as well as into markets in Canada and Europe.
APCO's main competitors are vehicle manufacturers, many of which also offer factory-backed warranties although at a
higher price.
APCO now has a major problem, one that many companies would love to have—a massive expansion of customers that
has already occurred and is likely to continue. APCO has experienced a dramatic upsurge in sales, increasing more than
20 times in just 11 years. The result is that both dealer-customer applications for its policies and the submission of
repair claims have become almost unmanageable as well as extremely costly. A significant element of that problem is
that APCO issues and administers hundreds of different policies to thousands of policyholders, each of which is
complex. Different dealers offer different types and amounts of service in those contracts, and all customers must select
the level and type of service they will pay for when they purchase the contracts. APCO faces many of the same
problems with the thousands of private label contracts it administers.
APCO's work is highly document-intensive and time-consuming. All of this time and manual work is inefficient and
makes the process very costly. The first step in the process is for the company to design and create many different
documents, one for each type of contract the dealers require. Given the hundreds of different dealer contracts and all
their many options, this is extremely complex. Currently APCO minimizes the number of contracts it must support by
creating a large number of generic contracts which, when issued to the auto purchaser, must be adjusted both to each
specific dealer and to each customer. These adjustments are done in the contract's declaration section, where the dealer
records which other contract sections apply to this specific customer's contract and which do not, depending upon what
the dealer wants to offer and what specific coverage the customer has agreed to pay for. Once the dealer has filled out
the declaration section, it must be approved by APCO, and only after that can it be issued to the auto purchaser.
With the current system, this whole process is very slow and costly. After a dealer fills out the declaration section, it is
mailed to APCO where the data are manually entered into APCO's computers. Next the computer processes the
application, after which it is forwarded to the underwriters where it is manually entered into the underwriters'
computers. It is then approved or rejected and mailed back to the dealer. Finally, assuming the document was approved,
the customer must return to sign it. The whole process usually takes between five and ten days to be completed.
Being heavily manual and requiring the data to be entered several times, the process is also quite error-prone, requiring
many corrections and also resulting in many improper contract applications. For instance, between half and threequarters
of the applications being received by APCO under the current system are rejected due to required information
that is missing. This adds to the expense and the wasted time. In addition the errors and the slowness of approval
seriously damage APCO's relations with its customers—the dealers—as well as the dealers' relations with their
customers—the automobile purchasers. The same problems exist when private label (partner) vehicle customers decide
to sign an APCO contract.
Claims processing uses systems similar to the contract systems, and is also time consuming, error-prone and expensive.
Such expensive and time-consuming processes seriously interfere with APCO's ability to hold on to current customers
and to acquire new customers. In fact, the cost and time for contract creation and approval along with claims
administration have caused the company almost to lose control over both processes. Unless a way is found to better
manage it all, expanding further into the United States and into foreign markets will only greatly increase the problems,
making it even more difficult for APCO's and the dealers' customers. That is the problem APCO faces, and something
must be done.
At the time the customer buys the automobile, "We'd ultimately like the customer to leave the dealership with the
[APCO] contract in hand," explained Brian Kohrman, APCO's MIS director. With a proper system, "We'd be able to do
approval and denial almost immediately," he explained, "and ultimately fire the contract right back to the dealership and
have them print [it] out and have it signed, right there." Dan Walsh, APCO's vice president and creative director,
believes that with the right package, APCO "can start providing customers with coverage information that's more
specific to whatever they purchased. It becomes more personalized and gives the customer more accurate information."
Automobile dealers maintain that the buying experience must become friendlier because today's shoppers are too
startled and even frightened when they first see the vehicle sticker price. As a result dealers are searching for ways to
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reduce the tensions and fears throughout the entire sales process, including warranties and servicing. Moreover,
servicing is extremely important to dealers for another reason—it is very profitable. Dealers usually make more profit
from servicing than from vehicle sales. Almost all service customers are individuals who purchased their vehicles from
that dealer, and so dealers must find ways to sign them up as service customers and then to hold on to them. Auto
industry service retention rates are currently at or below 30 percent when the vehicle is under warranty and fall even
further after the warranty expires. Making the whole service contract process friendlier and quicker is one way to help
gain more service customers because it should result in the sale of more of these contracts.
APCO's existing information systems store most of their data in old-fashioned flat files rather than in more modern
relational database management systems. As a result in several steps each contract document along with its data and
other key pieces of information must be transmitted to the next application where it has to be reformatted for that
application. For several steps the data must be re-entered manually into the next system. Contracts and paper reports are
physically handed to the APCO underwriters.
While the creation of each contract document requires the approval of the compliance department, in reality contract
design and creation should be the responsibility of compliance. APCO's systems run on IBM RS/6000 workstations
using the Unix operating system, Windows NT for the network operating system, and Microsoft SQL Server as the
database management software. APCO's client workstations use the Microsoft Windows operating system along with
Office desktop productivity tools and the Internet Explorer web browser. Although APCO does use some modern
software packages, such as an Adobe PageMaker package to create the contract forms, its systems are based on
primarily old homegrown pieces of software.
The company wants to automate its entire application process to speed up everything for both APCO and its customers
and to eliminate much of the reliance on paper documents. For instance if a new [modern] system were running,
according to Kohrman, "[Compliance will] need to extract the information as easily as possible, without a lot of IT
overhead," will be an improvement that can be achieved if APCO begins to use relational DBMS.
APCO has moved to solve this problem by issuing a request for proposal (RFP) for the first of a series of changes that
its systems require. Its goal is to create for APCO and its customers a Web-based system for the creation and approval
of contracts and for the administration of vehicle servicing. The system must simplify and speed up the business
processes in order to support the planned growth of the company, increase customer service, and reduce costs.
The first step is to create a comprehensive electronic document-management (or content-management) system. The
company wants the final content-management system to be highly automated so that it will handle the whole process
from the creation of all documents to the handling of an automobile purchaser's application for the insurance to final
approval. The new system must decrease the amount of content APCO must handle by replacing its method of storing a
separate document for each program and level of coverage. The new system should enable specific contracts to be
assembled from many stored components, some of which will be unique to that particular document. However most, if
not all, of the components of the documents will be shared with many other contracts. The system will have to collect
all the required components according to the rules for that particular program and state requirements.
APCO is wondering how the Web could be used to speed up the whole process and provide a new channel for enrolling
and servicing customers and whether Internet technology could help it lowering its (and dealers') costs. Kohrman's goal
is that the customers of the dealers will leave the dealers' premises not only with the automobile it has just purchased
but also with a warranty and/or service contract signed and in hand.
As a member of Brian Kohrman's staff, you have been asked to draw up APCO's RFP for Kohrman and for APCO's
management. Ultimately it is to be issued to potential software and hardware companies for their consideration.
The RFP will only cover the first phase of the project, the contract-management phase. Kohrman expects that a
number of companies will submit a proposal, which would result in APCO selecting one or two to carry out the
first phase of the project. However, the RFP must also include a description of all phases of the overall project so
that the companies applying for the work will fully understand APCO's business goals.
END OF SECTION B
Section C : Applied Theory (20 Marks)
• This section consists of questions with serial number 8 - 9.
• Answer all questions.
• Marks are indicated against each question.
• Do not spend more than 25 -30 minutes on section C.
10
8. a. What is information system planning?
b. Briefly explain the different types of built-in controls used to ensure the quality and security of information
systems.
(5 + 5 = 10 marks) < Answer >
9. Mr. Suresh, CEO of Enrique Systems Inc., wants to conduct a meeting of heads of the software divisions all over
the world immediately. Suggest to him the different group support facilities and systems that can be used for this
purpose.
(10 marks) < Answer >
END OF SECTION C
END OF QUESTION PAPER
11
Suggested Answers
Information Technology & Systems (MB231): January 2005
Section A : Basic Concepts
1. Answer : (d)
Reason : The process of eliminating redundant data by breaking each table into smaller tables is
known as normalizing.
< TOP >
2. Answer : (a)
Reason : Procedural controls are the methods that specify how an organization’s computer and
network resources should be operated for maximum security. Information system controls
are the methods and devices that try to ensure the accuracy, validity and propriety of
information system activities. Output controls are developed to ensure that information
products are correct and complete, and are available to authorized users in a timely manner.
Facility controls protect an organization’s computing and network facilities from loss or
destruction.
< TOP >
3. Answer : (e)
Reason : A macro, which is used in a spreadsheet program, is a set of operations that accomplishes a
specific task.
< TOP >
4. Answer : (d)
Reason : All the alternatives except (d) are the advantages of using a flowchart. There are no
standards determining the amount of detail that should be included in a flowchart.
< TOP >
5. Answer : (e)
Reason : All the statements given are the advantages of decision tables. Decision tables are easier to
draw and change than charts. They provide more compact documentation and it is also easier
to follow a particular path down one column than through several flowchart pages.
< TOP >
6. Answer : (b)
Reason : Except (b), all the statements given are true. At the physical level, a customer record can be
described as a block of consecutive storage locations.
< TOP >
7. Answer : (d)
Reason : Both Object Based Logical Models(OBLM) and Record Based Logical Models(RBLM) are
used in describing the data at logical and view levels. Physical data models are used in
describing the data at the lowest level.
< TOP >
8. Answer : (a)
Reason : A relational database system needs to maintain data about the relations, such as the schema,
the schema of the relations. This information is called data dictionary. The important step in
designing any relational database is the initial definition or data definition. Data planning is a
corporate planning and analysis function that focuses on data resources management. Data
warehousing is gathering data stored in different locations, or in different operating systems
and under different schemas, and storing them under a unified schema, at a single site. Data
mining refers to finding relevant information or discovering knowledge.
< TOP >
9. Answer : (a)
Reason : Option (a) is the correct answer. Data Link layer is responsible for establishing an error-free
communications path between computers over the physical channel.
< TOP >
10. Answer : (d)
Reason : The difference between a PBX (Private Branch Exchange) and Centrex networks is that in a
Centrex network, the switching equipment is located in one of the telephone company’s
“central exchanges” instead of on the premises of a business. A Centrex network consists of
large-scale networking systems that enable a business with several offices in the same area
whereas a PBX is a telephone multiplexer connecting a large number of in-house telephones
to a smaller number of external lines that lead to the service provider’s telephone exchange.
Like PBX, a Centrex network incorporates data-over-voice technology for transmissions. So
both statements (I) and (III) are correct. Hence option (d) is the answer.
< TOP >
12
11. Answer : (a)
Reason : A modem is a device that converts digital signals from input/output devices into appropriate
frequencies at a transmission terminal and converts them back into digital signals at a
recurring terminal. So option (a) is the answer. A multiplexer merges the transmissions of
several terminals at one end of a communications channel, while a similar unit separates the
individual transmissions at the receiving end. A router interconnects networks based on
different rules or protocols, so that the message can be routed to its destination. Hubs
provide automatic switching among connections called ports for shared access to a network
resource. Gateways interconnect the networks that use different communication
architectures.
< TOP >
12. Answer : (c)
Reason : Prototyping is the process of rapid systems development and testing of working models of
new applications. Such system prototypes are immediately passed on to the end users to run
trials and identify deficiencies if any. After receiving feedback from the end users, necessary
modifications are made in the system and again submitted to the end users. This iteration
process would continue until an efficient, workable system is developed.
(I) It is the activity that focuses on the design of software resources, that is the programs
and procedures needed to create the proposed information system.
(II) Prototyping is also called Rapid Application Design.
(III) Not relevant.
< TOP >
13. Answer : (e)
Reason : A spreadsheet is a software designed to process information in the form of tables. It is used
for sorting and analyzing data. On screen, a spreadsheet program has numbered rows that
run across the screen, and columns that run down the screen. The intersection of a row and a
column is a cell and all such cells put together make a worksheet.
(a) True about an effective worksheet in a spreadsheet program.
(b) True about an effective worksheet in a spreadsheet program.
(c) True about an effective worksheet in a spreadsheet program.
(d) True about an effective worksheet in a spreadsheet program.
(e) Data entry areas are not same as calculation and result areas.
< TOP >
14. Answer : (a)
Reason : Information systems that process data generated from the occurrence of business transactions
are termed transaction processing systems. A cycle of basic transaction processing activities
is (1) Data entry, (2) Data processing, (3) Database updation, (4) Report generation and (5)
Inquiry processing. For processing transactions and updating master files in data processing,
three different methods are used: Batch Processing, Online real-time processing and Online
batch processing.
(I) Periodic preparation of data and periodic processing in groups is called Batch
processing.
(II) This is online entry with subsequent processing in batches.
(III) Not relevant.
< TOP >
15. Answer : (d)
Reason : Manufacturing systems support the production or operations function, which include the
planning and control of processes by which goods are produced or services delivered.
Computer based manufacturing applications are used by many corporations to facilitate
smoothening of the Production/Operations function.
(a) It is used to simplify production processes, product designs and factory organization as
a vital foundation to automation and integration.
(b) It is used to help engineers design better products.
(c) It is used to help engineers design better products.
(d) This is the performance monitoring system for shop floor operations.
(e) Production processes are improved with the help of Computer Aided Process Planning.
< TOP >
16. Answer : (d)
Reason : World Wide Web contains a collection of documents inter-linked by hyperlinks over the
< TOP >
13
Internet.
Hence, from above discussion, we can infer that option (d) is correct.
Option (a) is incorrect. Intranet is a Local Area Network that uses TCP/IP standards and is
used for internal use in the organization. So, it is not applicable here.
Option (b) is incorrect. Local Area Network (LAN) is a privately owned network within a
single building or campus of up to a few kilometres in size. So, it is not applicable here.
Option (c) is incorrect. Metropolitan Area Network (MAN) is a bigger version of LAN and
may cover a group of nearby corporate offices or a city and could be either private or public.
So, it is not applicable here.
Option (e) is incorrect. Internet Paging, also known as “Buddy List” software, runs on the
background of the user's computer, letting him/her know when his friends or coworkers
(only those who are registered) are online. So, it is not applicable here.
17. Answer : (d)
Reason : A program flowchart is a block diagram or logic diagram that outlines, step by step, the
computational procedures necessary to accomplish the processing requirements of a
computer program. Program flow charts use symbols to identify each step in the process.
(a) A terminal symbol is used at the beginning, end or at a point of interruption in a
program.
(b) It used to indicate the place where computer logic leads.
(c) It used for any function of an input/output device.
(d) This is the symbol that is used to designate entry to or exit from a page.
(e) It is the symbol for the addition of descriptive comments or explanatory notes as
clarification.
< TOP >
18. Answer : (b)
Reason : Teleconferencing is an important group support facility, made possible by today’s
information technology. In teleconferencing, sessions are held in real time where major
participants are televised, while participants form remote areas may take part with voice
input of questions and responses.
I. Television broadcasting is used in reaching large groups at multiple sites.
II. Teleconferencing is done by using closed circuit televisions to reach multiple small
groups.
III. Not relevant.
< TOP >
19. Answer : (d)
Reason : The use of Information Technology in business has a major impact on society. It raises
serious ethical considerations concerning privacy, crime, health, individuality and
employment. Information Technology can have both positive and negative impacts in each
of these areas.
Another way to understand the ethical dimensions of IT is to consider the basic ethical issues
that arise when it is used to gather, process, store and distribute information. Richard Mason
summarizes the four issues with the acronym PAPA – Privacy, Accuracy, Property and
Accessibility.
< TOP >
20. Answer : (d)
Reason : Backup is the procedure for copying system data from the permanent medium such as hard
disks to removable medium such as diskettes and tapes. The tape archive (tar) command is
used for both backup and restore of files, to or from tapes or diskettes.
(a) Not the correct command.
(b) Not the correct command.
(c) Not the correct command.
(d) This is the correct command for both backup and restore of files, to or from tapes or
diskettes.
(e) Not the correct command.
< TOP >
21. Answer : (c)
Reason : Integer constants refer to a sequence of digits. Three types of integer constants are decimal,
< TOP >
14
octal, and hexadecimal.
(a) This is the rule that is to be followed for constructing an integer constant.
(b) This is the rule that is to be followed for constructing an integer constant.
(c) This is not true. Commas and blanks are not allowed within an integer constant.
(d) This is the rule that is to be followed for constructing an integer constant.
(e) This is the rule that is to be followed for constructing an integer constant.
22. Answer : (d)
Reason : A variable name identifies some physical location within the computer where the string of
bits representing the variable’s value is stored. Such a value may be kept in a computer
either in the memory or the CPU registers.
The variable storage class determines which of these two locations the value is to be stored
in.
(a) True about static variable in C.
(b) True about static variable in C.
(c) True about static variable in C.
(d) It can not be initialized more than once in a program.
(e) True about static variable in C.
< TOP >
23. Answer : (a)
Reason : (a) NLM stands for Netware Loadable Modules.
(b) Not relevant.
(c) Not relevant.
(d) Not relevant.
(e) Not relevant.
< TOP >
24. Answer : (b)
Reason : One of the important functions of an operating system that dramatically affects the overall
quality of its performance is the way it manages program execution.
(I) In cooperative multitasking, users can run two or more programs. Here the foreground
application gains control of CPU and keep this control until the program’s task is
finished.
(II) Preemptive multitasking enables the operating system to regain control if an application
stops running and crashes.
(III) Virtual multitasking is not a function of operating system.
< TOP >
25. Answer : (a)
Reason : What is causing the problem? Would a new or improved information system help solve the
problem? These are the questions that have to be answered in the systems investigation
stage. This is also the first step in systems development process. The investigation stage
includes the preliminary study of the proposed information system solution to end user
business problems. Organizational feasibility focuses on how well a proposed information
system supports the objectives of an organization and its strategic plan for information
systems.
(b) Economic feasibility is concerned with whether expected savings, increased revenue,
increased profits and other types of benefits will exceed the costs of developing and
operating a proposed system.
(c) Technical feasibility can be considered satisfactory if reliable hardware and software
capable of meeting the needs of proposed system, can be acquired or developed by the
business, in the required time.
(d) Operational feasibility is the willingness and ability of the management, employees,
customers, suppliers, and others to operate, use and support a proposed information
system.
(e) Systems feasibility is not defined.
< TOP >
26. Answer : (e)
Reason : Access time is the time from when a read or write request is issued to when data transfer
begins. To reduce this access time, we can organize the data on storage devices in such a
< TOP >
15
way that corresponds closely to a manner in which we expect data to be accessed. The
popular methods of file organizations are
(I) Sequential: It is useful when most of the records in the file need to be processed at the
same time.
(II) Direct: The computer can read a specific record from the file directly without reading
any other record.
(III) Indexed: The third way of accessing records is through an index. An index is a separate
file from the master file to which it pertains. Each record in the index contains only two
items of data: a record key and a storage address. To find a specific record when the file
is stored under an index organization, the index is first searched to find the key of the
record wanted.
27. Answer : (e)
Reason : C language contains many data types. Storage representations and machine instructions to
handle constants differ from machine to machine. ANSI C supports four classes of data
types:
(I) User defined data types.
(II) Empty data set.
(III) Derived data types.
(IV) Primary data types.
< TOP >
28. Answer : (a)
Reason : C has a built-in multiway decision statement called switch. The switch statement tests the
value of a given variable against a list of case values and when a match is found, a block of
statements associated with that case is executed.
(b) The break statement at the end of each block signals the end of a particular case and
prompts exit from the switch statement.
(c) Case does not test the value of a given variable against a list of case values.
(d) If-else-if does not test the value of a given variable against a list of case values.
(e) If-else does not test the value of a given variable against a list of case values.
< TOP >
29. Answer : (c)
Reason : Templates stand for ready-made designs in a Presentation Graphics Software that include an
overall layout, font and font-size choices, a color scheme and other design elements.
< TOP >
30. Answer : (e)
Reason : A Linked List in C is a collection of structures ordered by logical links that are stored as part
of the data in the structure itself.
< TOP >
16
Section B: Caselets
1. Prior to the enterprise system project, the information systems department saw its role as limited to technical
support. It used to be that if there were problems with the system, the information systems staff would check it to
see if it was running properly, and if it was, it would throw the problem back to business units to solve. Since
transactions flowing through the enterprise system impact the entire business, the information systems department
has become responsible for the entire business problem. However, the information systems department does not
try to solve business problems alone. They only act on them if they have the full involvement of the business units.
< TOP >
2. Technical problems:
• Application’s response time had increased from seconds before ERP to minutes under the new system.
• The functionality wasn’t working the way it was supposed to. The reason was inadequate testing.
Management problems:
• The SAP system demanded that the entire corporation adopt a single product list and a single price list. But
the employees were not properly trained and they were overwhelmed with problems, resulting in a lot of
errors.
• ERP systems are complex and errors ripple throughout the system. When using the old systems, employees
had time to correct data entry mistakes, and if they were not caught, they only affected the local function.
• The employees are properly trained on their own functions, but ERP systems are integrated, and the users did
not understand the impact of their work on other departments.
Organizational problems:
• With the introduction of enterprise system about 20% of the employees was shifted to other jobs, which was
massive and time-consuming, causing organizational disruption.
• The original project training was budgeted for 7% of overall costs, but training consumed 13% of the budget.
• After the SAP system went live, the quality of customer service declined sharply and Vison Operations
began losing important customers. The company was forced to devote a great deal of personnel time
rebuilding relations with its customers while simultaneously having to repair both its organization and the
software installation.
< TOP >
3. Implementation of Enterprise Resource Planning (ERP) systems has resulted in the following changes:
• With the new system the customers will have a single point of contact for all orders.
• The employee can see what inventory is available, when it will be produced, and who is the lowest-cost
carrier and commit to the customer quickly.
• Because of the new system, Vison Operations has been able to reduce its inventory significantly, while
centralizing coordination of various functions and divisions.
• Lot size and machine allocations have become more efficient.
• The company can perform production planning and control globally because it has one uniform system to
work with.
• The integrated system lets the company leverage common carriers and take advantage of overlapping
transportation routes.
• Managers can use the system to identify its biggest suppliers across the entire company and use that
information to negotiate bulk discounts.
• Factory managers no longer have to concern themselves with taking customer orders, tracking logistics or
after-sales service.
• Because centralization applied not only to United States Operations but also to foreign activities, the
corporation has been transformed into a truly globalized enterprise.
• The role of Vison Operations information systems department has changed dramatically.
< TOP >
4. For small and medium size organizations it is not wise to go for an ERP system. The reason is ERP systems are so
complex. These systems are expensive and testing and training will often get cut for budgetary reasons. The
important thing is that implementation of an ERP system will take several years. Moreover, the employees need to
become accustomed to new ways of doing business and customers and suppliers may need to change their
business processes. ERP projects often result in a negative return-on-investment (ROI) in the beginning years.
In the caselet it is given that Vison Operations had only two possible paths to growth. They are offering a full
17
range of building materials, and/or becoming a global force. It is given that Vison Operations wanted to acquire
other companies to expand its product line thereby increasing the sales from $2.9 billion to $5 billion within a few
years.
To become a global force, the companies need to integrate and coordinate the activities of all the units in many
different countries. If Vison Operations were to become a global enterprise, it would need a flexible system that
would enable the company to access all of its data in an open and consolidated way. So installation of an ERP
system is a right solution for Vison Operations to become a global force.
< TOP >
5. The goals of the project:
At the time the customer buys the automobile he has to leave the dealership with the [APCO] contract in hand. i.e.,
the customers of the dealers will leave the dealers’ premises not only with the automobile it has just purchased but
also with a warranty and/or service contract signed and in hand.
To create a Web-based system for the creation and approval of contracts and for administration of contracts.
The following are the various problems faced by APCO in dealing with service contracts:
- Due to massive expansion of customers, both dealer-customer applications for its policies and the submission
of repair claims have become almost unmanageable as well as extremely costly.
- APCO’s work is highly document-intensive and time-consuming.
- Being heavily manual and requiring the data to be entered several times, the process is also quite error-prone,
requiring many corrections and also resulting in many improper contract applications.
- The errors and slowness of approval seriously damage APCO’s relations with its customers - the dealers - as
well as the dealers’ relations with their customers - the automobile purchasers.
- Claims processing uses systems similar to the contract systems, and is also time consuming, error-prone and
expensive. Such expensive and time-consuming processes seriously interfere with APCO’s ability to hold on
to current customers and to acquire new customers.
- Increase in costs and more time for contract creation and approval along with claims administration have
caused the company to almost lose control over both the processes.
< TOP >
6. Automobile Protection Corp. business covers both automobile warranties and service contracts.
The two phases in the project are
1. Contract management 2. Claims administration
1. Contract management: The company needs a highly automated document-management (contentmanagement)
system that can handle the whole process from the creation of all documents to the handling of
an automobile purchaser’s application for the insurance to final approval.
2. Claims administration: The company needs a Web-based system that can speed up every thing for both
APCO and its customers.
< TOP >
7. Overview of the systems:
The firm has to develop a system that uses a relational data base model for storing the customer data with clientserver
architecture.
The firm needs content management system for contract management and claims administration system for claims
administration.
Content management system for contract management:
This consists of the following steps:
1. Application process system.
2. Contract approval system.
Application process system:
A Web-based application form consists of different types of services and the amount and level of service offered
by the dealer.
Once the application is submitted the system will check the application form and return a form, which contains the
contract sections that apply to the customer and what the dealer wants to offer and what specific coverage the
customer agreed to pay for.
If the customer agrees to the offer then he has to submit the form for approval.
18
Contract approval system:
Once the customer submits the application for approval, the centralized system will process the application to
underwriters with the relevant data. The underwriters check the application form and return a form to the dealer. If
the contract is approved, the dealer hand overs the contract document to the automobile purchaser.
With the introduction of a Web-based contract system, the time required for application processing, approval and
the time required for the delivery of contract would be reduced drastically. The chances of errors will be
eliminated and cost of contract to the company will be reduced.
Claims administration system:
As a centralized relational data base system maintains all the data regarding the automobile purchaser, the claims
processing is done very easily with the customer’s unique identity.
The introduction of centralized claims administration system will reduce the time for claims approval and provide
a greater opportunity for the company to accept more number of private contracts.
< TOP >
Section C: Applied Theory
8. a. Strategic Information System Planning
Information system planning is an important component of total organizational planning. It focuses on the
activities and outputs of strategic business planning, and on the role of business vision, business drivers and
the IT architecture in the IS planning process. Companies that do IS strategy planning generally have four
main objectives in mind.
Business alignment: Aligning investment in information technology with a company’s business vision and
strategic business goals.
Competitive advantage: Exploiting information technology to create innovative and strategic business
information systems for competitive advantage.
Resource Management: Developing plans for the efficient and effective management of a company’s
information system resources, including IS personnel, hardware, software, data and network resources.
Technology architecture: Developing technology policies and designing an IT architecture for the whole
organization.
Tactical and Operational Planning
Tactical IS planning builds on the business / IT strategies developed in the strategic information systems
planning stages. Here, project proposals are formulated for the development of new or improved information
systems that implement the IT architecture created during strategic IS planning. Afterwards, a resource
allocation plan is developed to specify the IS resources, financial commitments and organizational changes
needed to implement the strategic IT development plan of the company.
Operational IS planning involves detailed planning for the accomplishment of new information systems
development projects, including the preparation of operating budgets. Annual operating budgets specify the
allocation of financial and other resources needed to support the organization’s information services
Operations and systems development and maintenance activities. This also holds true for end user
departments and other work groups that do a lot of their own information processing and application
development.
b. Security and control issues
Since informational assets are usually vital for any organization, the information systems hardware, software,
networks and data need to be protected by built-in controls to ensure their quality and security. Effective
controls ensure accuracy, integrity and safety of information system activities and resources. They can
minimize errors, fraud, and destruction, in the internetworked information systems that interconnect today’s
end users and organizations. Such controls also provide quality assurance for information systems.
Three major types of controls that are needed to ensure the quality and security of information systems are:
Information System Controls
These are methods and devices that try to ensure the accuracy, validity and propriety of information system
activities. Controls must be developed to ensure proper data entry, processing techniques, storage methods
and information output. Input controls are usually set in the form of log-in passwords and other security
codes, formatted data entry success, appropriate error signals, etc.
Processing controls are developed to identify errors in arithmetic calculation and logical Operations. They
also ensure that data is not lost, or that it does not go unprocessed. Process controls can be either hardware
controls or software controls.
Output controls are developed to ensure that information products are correct and complete, and are available
to authorized users in a timely manner. Access to online output of computer networks is typically controlled
19
by security codes that identify which users can receive what type of output. ‘Pre numbered output forms’ is
another method that can be employed to check the loss of important output documents.
Procedural Controls
Procedural controls are methods that specify how an organization’s computer and network resources should
be operated for maximum security. They help to ensure the accuracy and integrity of computer and network
Operations and systems development activities.
Use of standard procedures and documentation helps in promoting quality and minimizing chances of error
or fraud. It lets both end users and IS specialists know what is expected of them. Moreover, program
changes requested by end users must typically be approved by a system development manager after
consultation with the concerned business unit. This is true for any conversion in hardware, software or
network components. Such checks are necessary for minimizing the detrimental effects of such changes and
conversions on the accuracy and integrity of the ongoing system.
Natural or man-made disasters may sometimes cause severe damage to an organization’s computing
resources. Many mission-critical applications in airlines, banks or defence services must be protected from
being affected by such calamities. That is why organizations develop disaster recovery procedures and plans.
They specify which employees will participate in disaster recovery and what their duties will be; what
hardware, software, and facilities will be used; and also the priority of the applications that will be processed.
Facility Controls
These controls protect an organization’s computing and network facilities from loss or destruction. Computer
networks and other hardware are subject to such hazards as accidents, natural disasters, sabotage, industrial
espionage, destruction or theft. Various safeguards and control procedures are necessary to protect the
hardware, software, network and vital data resources of an organization.
Network security : Specialized system software packages known as system security monitors provide
security for a network. These are programs that monitor the use of computer systems and networks and
protect them from unauthorized use, fraud or destruction. Two most commony used methods in network
security are encryption and firewalls.
Encryption of data has become an important way to protect data and other computer network resources,
especially on the Internet, intranets and extranets. Passwords, messages, files and other data can be
transmitted in scrambled form and later unscrambled for authorized users. Encryption involves using special
mathematical algorithms or keys to transform digital data into a scrambled code before they are transmitted,
and to decode the data when they are received. There are several competing software encryption standards,
but the two most popularly used are RSA data security and PGP (pretty good privacy).
Another important method for ensuring control and security on the Internet and other networks is the use of
firewall computer and software. A network firewall is a ‘gate keeper’ that protects computer networks from
instrusion. It serves as a filter and safe transfer point for access to and from the Internet and other networks.
In some cases a firewall may allow access only from trusted locations on the Internet to particular computers
inside the firewall. Or it may allow only ‘safe’ information to pass. For example, a firewall may permit
users to read e-mail from remote locations, but not to run certain programs.
Biometric Controls: This is a fast growing area of computer security today. These controls are security
measures that measure the physical traits that make each individual unique. Such measures include voice
verification, fingerprints, hand geometry, retina scanning, face recognition and genetic pattern analysis.
Biometric control devices use special sensors to measure and digitize a biometric profile of an individual’s
fingerprints, voice or some other physical trait.
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9. The application of ‘Group Support Facilities and Systems’ is powerful in today’s business environment. These
facilities can have a dramatic impact on the entire organization by raising the level of efficiency. They also offer
an opportunity to leverage the abilities of each employee within a group. The importance of various group support
facilities enabled by the new technologies are Teleconferencing, Electronic Meeting Systems, Workgroup Support
Systems, Groupware Facilities and Collaborative Work Management Tools.
Teleconferencing
Teleconferencing is an important group support facility, made possible by today’s information technology. In
teleconferencing, sessions are held in real time where major participants are televised, while participants from
remote areas may take part with voice input of questions and responses. Teleconferencing can also be done using
closed-circuit television to reach multiple small groups, instead of using television broadcasting to reach large
groups at multiple sites.
Teleconferencing is mainly used in sales meetings, employee education & training, and new product
announcements.
Audio/Video Teleconferencing
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This enterprise collaboration tool enables real-time video/audio conferences among (1) networked PCs, known as
desktop video conferencing or (2) participants in conference rooms or auditoriums in different locations. In either
case, team and enterprise collaboration can be enhanced with a full range of interactive video, audio, document,
and white board communications, among the online participants. Desktop videoconferencing today takes place
over the Internet, Intranets, Extranets, as well as over the public telephone and other networks.
Electronic Meeting Systems
An electronic meeting system (EMS) is a tool that increases the effectiveness of group decision-making.
Electronic meeting systems produce several important benefits. Packages facilitate group decision-making
activities that take place in a computer-based decision-room setting. These are designed to support a specific
application or task such as labor-management negotiations, and can support anonymous voting during a meeting.
The electronic meeting is carried out using a meeting room with networked PCs, a large screen projector and the
EMS software. This facilitates communication, collaboration and group decision-making in business meetings. It
makes group communication easier, protects the anonymity of participants, and provides a public recording or
group communications (group memory). This significantly improves the efficiency, creativity, and quality of
communication, collaboration, and group decision-making in business meetings.
Workgroup Support Systems
There are many types of teams and workgroups, each with its own work styles, agendas, and tasks. A workgroup
can be defined as two or more people working together on the same task or assignment. They are committed to
collaboration, which is working with each other in a cooperative way that transcends the coordination of
individual work activities found in a typical workgroup. Such cooperation is what makes a group of people a
team, and what makes a team successful.
The members of a workgroup don’t have to work in the same physical location. They can be members of a virtual
team, where the members are united by the tasks on which they are collaborating, not by geography.
Groupware
The need to support groups of workers working at different geographical locations, has led to the creation of
software that is commonly called groupware. These are systems that support groups of individuals who are trying
to complete a common task; it provides an interface in a shared environment. This kid of software is a
combination of electronic meeting systems and e-mail, with a number of additional features. It facilitates the
sharing of knowledge and ideas by a workgroup. Often described as a type of coordination technology, this is
used to help members of the organization work together to achieve group goals.
Groupware facilitates the creation of workgroups consisting of members who are in different physical locations
and who work during different times of the day. It is also a tool used in creating a ‘virtual organization’ – a
workgroup or organizational layer that does not appear on a formal organization chart. This can be highly useful
in making operational, managerial and strategic decisions.
Collaborative work Management tools
Collaborative work management tools help people accomplish or manage the group activities. This category of
groupware includes calendaring and scheduling tools, task and project management, workflow systems, and
knowledge management systems.
Calendaring and Scheduling Tools
These packages enable the user to use electronic versions of a variety of office tools such as a calendar,
appointment book, address book, contact list, and a tasks-to-do list. These tools are an extension of many of the
capabilities provided by time management software such as desk accessory packages and mainframe office
automation systems.
Task and Project Management
Project management groupware helps project teams work together, and helps team members keep track of the
many tasks and deadlines involved.
Workflow systems
These help users to collaborate with each other to accomplish and manage structural work tasks within a
knowledge-based business process. Work flow systems are typically based on rules that govern the flow of tasks
and task information contained in business forms and other documents.
Knowledge Management
This is a tool for enterprise collaboration that groupware packages use to organize, manage, and share the diverse
forms of business information created by individuals and teams in an organization.
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