Exam Paper Sesi 1 2004

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CONFIDENTIAL BM/MAR 2004/MGT417/CSC270

UNIVERSITI TEKNOLOGI MARAFINAL EXAMINATION

COURSECOURSE CODEDATETIMEFACULTYSEMESTERPROGRAMME/CODE

INFORMATION TECHNOLOGY IN BUSINESSMGT417/CSC2703 MARCH 20043 HOURS (9.00 a.m - 12.00 p.m)Business ManagementNovember 2003 - April 2004Bachelor of Business A dministration (Hons) (Transport) / BM216Bachelor of Business Admnistration (Hons) (Marketing) / BM220Bachelor of Business Administration (Hons) (Insurance) / BM221Bachelor of Business Administration (Hons) (Finance) / BM222Bachelor of Business Administration (Hons)(Human Resource Management) / BM223Bachelor of Business Administration (Hons)(Operations Management) / BM224Bachelor of Business A dministration (Hons)(Retail M anagement) / BM225Bachelor of Bus iness Administration (Hons)(International Business) / BM226Bachelor of Business Administration (Hons)(Islamic Banking) / BM229

INSTRUCTIONS TO CANDIDATES1. This questions consists of two (2) parts: PART A (7 Questions)PART B (2 Case Studies)2. i) Answer six (6) questions from PART A.ii) Answ er ALL questions from PART B.iii) Start each answer on a new page.3. Do not bring any material into the examination room unless permission is given by theinvigilator.4. Please check to m ake sure that this examination pack consists of:i) the Question Paperii) anAnswer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO S O

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CONFIDENTIAL 2 BM/MAR 2004/MGT417/CSC270

PART A (60 MARKS)

QUESTION 1In order to be able to compete successfully in the modern business environment,organizations expect their information systems to have many powerful capabilities. Give five(5) examples of the capabilities expected of information systems in modern organization.

(10 m arks)QUESTION 2What is the role of Information Systems Department (ISO)? Illustrate your answer by statingTEN (10) roles of the ISO. (10 m arks)QUESTION 3Describe the hierarchy of computers according to power and their respective roles.

(10 marks)QUESTION 4Identify and explain FIVE (5) telecommunication applications that can help organizationsattain competitive advantage. (10 marks)QUESTION 5What is Internet? Describe how it works (including the role of the TCP/IP protocol), and howcan users connect to it. (10 marks)QUESTION 6Describe the e-commerce infrastructure and support services, including payments andlogistics. (10 marks)QUESTIONS 7Explain the concept of a system development life cycle (SDLC). (10 marks)

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PART B (40 MARKS)CASE STUDY 1Visa cracks down on credit fraudOnly 0.2% of Visa International's revenues in 1995 were lost to fraud, but when thepercentage means a loss of $655 million, it is worth addressing it. In 1996, Visa began usingneural network technology in order to reverse the number of fraudulent transactions. By2002 the company was using the system globally.Most people stick to well-established patterns of card use and rarely splurge on expensivenon-essentials. Neural networks are designed to notice when a card that is usually used tobuy gasoline once a week is suddenly used to buy a number of tickets to the latest theatrepremiere on Broadway.The Bank of America field-tested Visa's Cardholder Risk Identification System (CRIS) whichuses neural network technology, and believes that the system cuts fraudulent card use by upto two-thirds. The Toronto Dominion Bank found that losses were reduce, and overallcustomer service improved. With the bank introduction of neural computing. Another bankrecord savings of $5.5 million in six months. Visa member banks cut their losses by morethan 16 percent in the first year of the system use. With numbers like that, the $2 million Visaspent to implement CRIS certainly seems worth the investment. In fact, Visa says, CRISpaid for itself in less than a year.In 1995, CRIS conducted more than 16 billion transactions. In 2002, VisaNet and CRIShandled more than 210 billion transactions.The only downside to CRIS is that occasionally the system prompts a call to a cardholder'sspouse when an out-of-the-ordinary item, such as a surprise vacation trip or a diamond ring,is charged. After all, no one wants to spoil surprises for loved ones.Source:visa.com

QUESTION 1How does the system detect fraud? (10 m arks)QUESTION 2What are the advantages of CRIS over an automatic check against the balance in theaccount and against a set of rules such as "Call a human authorizer when the purchaseprice is more than 200 percent of the average previous bill"? (10 marks)



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CASE STUDY 2FedEx's Web shopping/shipping servicesFedEx created a business-to-business services that integrate Web catalogs of variouscompanies with order, fulfillment, and delivery functions using FedEx's own trucks andplanes. This move marked a new stage for e-commerce on the Internet. FedEx is making itpossible for companies that do not want to personally deal w ith transactions over the Internetto sell their products there by subcontracting those services to FedEx.The service works like this: FedEx hosts the Web pages for companies that want to putcatalogs on the Internet. FedEx helps to create the online catalog if needed. The Web pagesrun on the FedEx secured servers, but are exclusively selling the company branded items.When an order comes through, all of the applicable charges are calculated by the FedExsystem and sent to the buyer and the selling company's server. Also, the system is linked tothe selling company's database for real-time inventory management. The order then isrouted to the selling company's product warehouses where FedEx handles the packagingand shipping of the product. Alternatively, FedEx can even manage the inventory of theproduct on its own premises, usually in Memphis, the hub of its planes.As with any other FedEx shipping, the shipment can be self-tracked by both the customerand the selling company. FedEx also provides a 24-hour Web-based technical support linefor Virtual Order merchants. Finally, FedEx offers related services such as confirmations,invoicing, and after-sales service for returns and repairs.Source: fedex.comQUESTION 1Describe the benefits of the service to the catalog merchants (sellers) using the FedEx's webshopping/shipping services. (10 marks)QUESTION 2What strategic advantage is provided to FedEx when catalog merchants start to use FedEx'sweb shopping/shipping services? (10 marks)

END OF QUESTION PAPER


Exam Paper Sesi 1 2004

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