2511 Winter 2012 Midterm 2 Solution[1]

7/31/2019 2511 Winter 2012 Midterm 2 Solution[1]

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Midterm #2 examination

March 11, 2012

Solutions

Question 1 (18 marks 54 minutes)

Required:

A) Define enterprise resource planning system and provide a rationale why using an ERPsystem might have been more appropriate for Roma than a combination of functional

area information systems. (2 marks)

Definition of ERP system

(text, pg250)

Systems that integrate the planning, management and use of all of an organizations resources,employing a common software platform and database

Rationale why using an ERP system might have been more appropriate for Roma than a

combination of functional area information systems

- provide information about the separate business lines and integrate it into a common platform

- provide access to a common information/data resource to all departments

- promote a coherent organizational structure

- provide more precise and timely information throughout the organization

- potential for better decision making

- Unified technology platform

- promote an efficient, customer driven operation

- Reduce data isolation / data silos / data dependence when info in integrated into enterprise

wide systems

B) Describe two Market pressures relevant to Roma and indicate the role that informationtechnology could play in responding to this pressure. (4 marks)

Name and description of Market pressure Role that information technology could play in

responding to the market pressure(text pg16/17)

Global economy and strongcompetition

-facilitated by www and regional trade

agreements (nafta,eu,etc)

-higher labour cost in developed

countries due to increase employee

benefits results in labour-intensive

industries moving to low labour-cost

areas.

- IT makes it easier for business to trackchanges in and utilize advantageous

portions of trade agreements

- IT makes it easier to move operationsthrough assistance with sourcing a new

location to acquiring moving and set-

up services for the new locations.


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The need for real-time operations-Organizations are required to have

adequate information systems and

technology to provide real-time

processing

-Organizations lose competitive edge if

not using these systems

- IT is at the heart of real-time 24/7operations.

- IT provides the platform that enablesreal-time systems.

The changing nature of the workforce-Workforce is more diverse (increasing

number of women, minorities,

handicapped, etc)

-These different people bring diverse

backgrounds and skills to theorganization which require new

management techniques.

-Telecommuting impacts are becoming

pervasive, requiring more management

awareness.

- IT provides a common communicationsplatform for groups.

- Telecommuting requires IT support.- Workplace diversity and ethics are

managed more effectively with the aidof IT support.

Powerful customers- As customers become more

knowledgeable about product/service

quality their expectations increase

- Organizations have recognized the

importance of customers and are

working harder to retain them

- IT supports CRM efforts in theorganization

- IT enables a more consistent customerexperience throughout the

organization.

C) Name two core modules of an ERP system and describe how each would help Romaresolve their current business system problem. (2 marks).

Name and description of ERP core module (text pg. 252)

Financial Management - Support accounting, financial reporting, performance management,

and corporate governance. They manage accounting data and financial processes such asgeneral ledger, ap/ar, etc. Roma would reduce the reliance on manual processes as well as

provide more up-to-date financial info at lower cost to the firm.

Operations Management Manage the various aspects of production, planning, and execution

such as demand forecasting, procurement, and materials planning. Roma would use operations

managements software to aid in the planning logistics of raw materials or productions planning.

Human Resource Management Support personnel administration (i.e. workforce planning,

recruitment, performance, etc) time accounting, payroll, benefits, and regulatory requirements.

As a small group, Roma could take advantage of more automated planning and benefits

managements for its employees


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D) Provide two reasons why ERP implementations fail (2 marks).

Reasons why ERP implementations fail1. Management and IT underestimated the complexity of planning, development, and trainingthat required for a new ERP system.

2. Failure to involve affected employees in the planning and development phases and in changemanagement processes.

3. Trying to do too much too fast.4. Insufficient training in the new work tasks required by the ERP system5. Failure to perform proper data conversion and testing for the new systemRef: text pg. 254

E) The introduction of the new ERP system would require the implementation of a newdatabase management system as well as the upgrade of secondary storage capacity on

Romas systems. Recommend and describe two types of computer storage appropriate for

Romas ERP system. For each one provide a justification. (4 marks)

Name and description of an appropriate

secondary computer storageJustify why this type of secondary storage isappropriate for Romas ERP system

1. Magnetic tape Lowest cost solutionCan handle very high volumes of data

Very good for corporate data archiving

2. Magnetic disk/ hard drive Very high capacity and speedAllow rapid access to data

Useful for personal computers to allow users

to store data

3. Storage Area Network Very high capacityDesigned for corporate storage needs

4. Network Attached Storage High capacityDesigned for corporate storage needs

5. Raid High capacityProvides fault tolerance and reduces risk of

data loss

Lower cost than SAN or NAS

Designed for corporate storage needs

6. The following may be answered by studentsbut will not be as relevant:

CD ROM

Flash DrivesDVD

Memory cards

Not appropriate as they only provide moderate

to low storage capacity.

Not suitable for storing high volume, corporate

data

Ref: text pg. 382-386


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F) The implementation of the new ERP system would also require the acquisition of newserver computers with a new operating system. Roma is considering the use of opensource operating system software. Provide two advantages and two disadvantages of

using an open source operating system. (4 marks)

Advantages of open source operating system

1. Source code for opensource software is available at no cost to developers or users2. Opensource software products have worldwide communities of developers who write and

maintain the code.

3. Opensource development produces highquality, reliable, flexible (code can be changed tomeet the needs of the user), lowcost software.

4. Opensource software considered more reliable than commercial software.5. Because the code is available to many developers, more bugs are discovered early and

quickly and are fixed immediately6. Support for opensource software readily available from firms that provide products derivedfrom the software.

Disadvantages of open source operating system

1. Roma would have to have buy maintenancesupport contracts from a third party, if it does not

have inhouse technical experts (also true for commercial software).

2. Ease of use, amount of time and expense needed to train users, and the compatibility with

existing systems or with the systems of business partners is questioned.

Ref: text, pg 399-400.

End of Question 1


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Required:

A) Name and describe the type of e-commerce business model represented by HMVs newonline music streaming service. Provide and discuss two benefits specific to the newonline streaming for HMV. (4 marks)

Name and description of HMVs new music streaming e-commerce business model (2 marks)

1. On-line direct marketing,Manufacturers or retailers sell directly to customers. Very efficient for digital products and

services.

OrMembership Only members can use the services provided, including access to certain information, conducting trades, etc.

Chp 6 - Table 6.1

Identify and discuss two benefits specific to the new online streaming (2 marks)

1. Customers benefit by being able to access a vast number of products and services,

around the clock, 24/7 365 days

2. The major benefit is the ability to easily and conveniently deliver services, and products to peoplein cities, rural areas. Customers dont need to travel to the store location in order to purchase the

music on a disc.

They can purchase it and use it in different devices as they like.

Chp 6.1

Also :

Exposure to customers worldwide Reduce fixed cost such as rent or any cost associate with physical locations


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B) Describe two types of electronic cash payment methods HMV could provide for theironline customers. For each one state the main benefit over the use of electronic credit and

debit cards. (4 marks).

Describe two electronic cash payment methods Main benefits of this type of electronic

payment system for HMV over the use of

electronic credit and debit cards.1.Person-to-Person Payments

PayPalToday, 2Checkout and Authorize.Net compete with

PayPal so will be acceptable as well as an answer.

Person-to-Person Payments a is form of e-cash that

enables two individuals or an individual and abusiness to transfer funds without using a credit

card

Chp. 6.4.

*Attractive security feature

You have to put only enough money in the account to

cover any upcoming transactions. Therefore, if

anyone should gain access to your account, they will

not have access to all of your money.

*One account, one username, one password easy to

use.

2.Digital Wallets

Digital Wallets is a software mechanism that

provides security measures, combined withconvenience, to EC purchasing. The wallet stores

the financial information of the buyer, such as credit

card number, shipping information, and so on.

Chp. 6.4

If the wallet is stored at the vendor's website, then

it does not have to travel on the Internet for eachpurchase, making the information more secure.

The wallet stores the financial information of the

buyer, such as credit card number, shipping

information, and so on. Thus, the buyer does not

need to re-enter sensitive information for eachpurchase

Also:

Stored-Value Money Cards - Although they resemble credit cards, stored-value money cards actually are aform of e-cash. They allow you to store a fixed amount of prepaid money and then spend it as necessary. Each time youuse the card, the amount is reduced by the amount you spent.

Smart Cards-They contain a chip that can store a considerable amount of information (more than 100 times that of astored-value money card). Smart cards are frequentlymulti-purpose; that is, you can use them as a credit card, a debit

card, or a stored-value money card. In addition, when you use a smart card in department store chains as a loyalty card, it

may contain your purchasing information. Advanced smart cards can help customers transfer funds, pay bills, andpurchase items from vending machines.


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C) Identify two examples of security threats that could occur to HMVs online store. Foreach one provide an example of an action that the HMV could take in order to preventthis threat or minimize its consequences. (4 marks)

Two examples of security threats that couldoccur to HMVs online store

Example of an action that the HMV could takein order to prevent this threat or minimize its

consequences

1.Denial-of-Service AttackAn attack in which the attacker sends so many

information requests to a target such as the company

website, the target cannot handle them successfully and

typically crashes.

Communications (network) controls secure the

movement of data across networks. Communications

controls consist offirewalls, anti-malware systems,

whitelisting and blacklisting, intrusion detection

systems, encryption, virtual private networking (VPN),

secure socket layer (SSL), vulnerability management

systems, and employee monitoring systems.

2. Theft of Information: Cyber-attacks

Hackers will try to steal customers information &

credit cards information that stored on the company

online database.

Access controls restrict unauthorized individuals from using

information resources. Access controls can be physical

controls or logical controls. Such as Authentication,

authorization including strong password and special

questions for the users when they logged-in.

Also:

Software attacks have evolved from the outbreak era,

when malicious software tried to infect as many

computers worldwide as possible, to the profit-driven,

web-based attacks of today. Cyber-criminals are

heavily involved with malware attacks to make

money, and they use sophisticated, blended

attacks typically via the Web.

Viruses, Worms, Trojan horse

Anti-malware systems, also called AV or antivirus software,

are software packages that attempt to identify and eliminate

viruses, worms, and other malicious software

Chp. 3.2 & 3.3


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D) Provide two examples of entities in HMVs new online music store and justify why itwould be necessary for HMV to collect that data. (4 marks).

Description of the entity Justification why it would be necessary for HMV to collect data

about this entity1.Customer:

include: name, address, city

2. Product/Music Album:

include: Product number,

type, Desc

HMV will be able to collect data on customers and music that was

purchased, using the data that collected they will be able to offer

some deals and send campaign to their customers, offer more

options and product by knowing the customers trend of purchase

and preferences.

End of Question 2


A) The new inventory management software would be able to provide new reportingcapabilities. Describe each of the following types of reports and provide an example of

each type of report for ALDO shoes applicable to inventory management (4 marks).

Description of exception report Example of exception report in inventory

management for ALDOReports that include only information that

exceeds certain threshold standards or criteria

Page 249

Identify low inventory or high inventory

So anything that can identify a possibleproblem or something different that is out of

the norm of the business

Description of key performance indicator

report

Example of key performance indicator

report in inventory management for ALDO

Reports that summarizes the performance of

critical activities

Page 249

Listing of the Top 10 sales of product, or top

10 stores, or bottom 10 stores inventory

levels of top selling products


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B)

Aldo would like to use RFID technology to complement its new warehousing software. Describeeach type of RFID technology and discuss one advantage of each type of tag that is applicable to

warehousing at ALDO. (4 marks)

Description of RFID active tag Advantage of RFID active tags applicable to

warehousing at ALDO

RFID Tags that use internal batteries for power,and they broadcast radio waves to the reader

Page 227 can transmit a great distance

These can be used for very expensiveinventory items since ALDO stores will know

the whereabouts of these items at all times in

the store system these tags are very expense

to purchase

Description of RFID passive tag Advantage of RFID passive tags applicable

to warehousing at ALDO

RFID tags that require the reader for the powerto work range is up to 6 meters

Tracking of inventory in and off of trucks, atthe store for sales and if not deactivated can be

used as a stop thief alert

C) Describe the following network applications and, for each, provide an example of howALDO shoes could use it. (4 marks).

Describe Mashups : (p 151) Specific example of how it could be applied

to ALDO

Website that takes different content from a

number of other websites and mixes them

together to create a new kind of content

A website with all of the manufactures of the

shoes ALDO sells so the customer can get

greater details:

-could display similar shoes from different

manufacturers so that customers could

compare using map and search engine

Describe Corporate portal : (p 146-7) Specific example of how it could be appliedto ALDO

A personalized, single point of access through a

web browser to critical business information,

located inside and outside the organization.

-will make it easier to find needed informationand can offer self-service opportunities to

employees, customers (B2B) and suppliers

Need to apply user name and password only

for authorized members.

- Provide employees ability to accessand benefits, payroll, other personal

information. Employees could enter

health claims.

- Suppliers could access informationabout ALDOs product lines,

inventory levels of products to allow

suppliers to collaborate on product

selections, renew inventory


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D) ALDO is considering the use of the following types of computing. Provide a definitionand explain how ALDO could use the following computing technologies. (4 marks)

Define Cloud computing: (p 368) Specific example of how it could be appliedto ALDO

-Tasks are performed by computers physically

removed from the user and accessed over anetwork, in particular the Internet. The cloud

is composed of the computers, the software on

those computers, and the network connections

among those computers. The computers in the

cloud are typically located in data centres, or

server farms, which can be located anywhere inthe world and accessed from anywhere in the

world.The cloud incorporates the characteristics of

grid computing and utility computing on a

global basis. That is, the cloud supplies as

many computers as are needed for a particular

task (grid computing) and users pay for the

amount of actual processing and storage used

(utility computing).

ALDO could use cloud computing to provide

the infrastructure and applications softwaremanagement and operations for its worldwide

supply chain and inventory management.

It would be readily accessible to all it

operating units worldwide, efficiently and with

unlimited capacity to handle spikes in activityas well as scalability to effectively

accommodate the companys continuinggrowth.

-would facilitate the availability of real-time

exception reporting and business intelligence

information transfer to ALDOs key decision

makers in Montreal and other major centres

-far less expensive and time consuming forimplementation of the new SCM systems than

Define Utility computing: (p 368) Specific example of how it could be applied

to ALDOA service provider makes computing resources

and infrastructure management available to a

customer as needed, charging the customer for

specific usage rather than a flat rate.

Utility computing enables companies to

efficiently meet fluctuating demands for

computing power by lowering the cost ofowning hardware infrastructure.

Utility computing also provides fault tolerance,redundancy, and scalability. That is, if one

server fails, another takes it place. Scalability

means that if an application requires additionalservers, they can easily be added as they are

needed.

Similar to Cloud Computing examples,

- to provide infrastructure and applications

software management and operations for

ALDOs supply chain and inventory

management

-Would accommodate spikes in activity aswell as scalability to effectively accommodate

the companys continuing growth.

End of Question 3

2511 Winter 2012 Midterm 2 Solution[1]

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