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Past Year Questions -Ans

Case Study 3: Ernst & Young Deploys Lotus Notes throughout Its Large, Global Enterprise (Sept
2006)

a. Analyze why information-sharing is vital to Ernst & Young. (9 marks)

- E&Y has over 103,000 employees in more than 670 locations in over 140 countries. So having
the information sharing among the organization is important. It is a decentralized orgn
therefore, working together among the branches is actually difficult.
- Sharing common data no duplication, therefore saving costs on storage
- Communication ppl can communicate, collaborate and share knowledge therefore
improving the communication systems such as the email system among all the employees
within the orgn and their clients.
Client solution often deliver through multinational teams working
together in person or through connectivity to apply their combined skills
& the orgns expertise to its client problem and needs (para 2)
- Maintain and sharpen companys competitive edge in the market place E&Y has to improve
the orgn system in order to stay as the worlds leading consulting orgn. E&Y needs to upgrade
the orgn system and attract more clients into their orgn.
- Manage and share projects / ideas within the country boundaries.




b. Compare and contrast the benefits of centralized and decentralized management, in terms of its
hardware, software and personnel. (12 marks)

Centralized Decentralized
Hardware Standardized hardware, control of
purchases, cost effective
Reduce competition on resources, personalized
machine for users, less chance of total
breakdown
Software Standardized software, s/w license,
easier s/w training,
Easier access, customization, different user
preference
personnel Easier training, effective staffing and
efficient administration of resources,
easier reporting
Faster response to users, more time with users,
better understanding of communication, faster
dec making


c. What do you think are the possible impacts of implementing Lotus Notes infrastructure to the
management process of Ernst & Young? (12 marks)




- Easy of handling and managing email with Lotus mail enable E&Y to communicate with other
branch, thus flattening the orgn chart by reducing the no. of middle management.
- With the use of IT, it reduces the costs of acquiring and analyzing information, enables E&Y to
reduce the internal management costs able to work without barriers and have high level of
communications, therefore enabling faster decision making among the managers.
- Reduce unnecessary workforce by combining skills and increasing total no. of expertise to
handle clients problems and needs.
- Employees were able to connect through the companys hub enable virtual teams to
communicate and interact from locations around the world to serve multinational clients.


d. Since Ernst & Young decided to adopt Lotus Notes as their standard tool for companys
messaging and information-sharing, identify and explain the management challenges that may
be faced by the management. (20 marks)

Strategic business
- want seamless crossborder service to multinational business
- want the capabilities to communicate, collaborate and share knowledge
- eg. with the use of Lotus Mail to send email to clients / other branches changing the
communication system and reporting system

globalization
- enabling the sharing of information and data among the companys tens of thousands of
employees around the globe. Its peoples capability to communicate, collaborate and share
knowledge within local and multinational terms, within service line and across national
boundaries has become essential to maintaining and sharpening Ernst & Youngs competitive
edge in the global marketplace.
- Eg. government regulation of all the countries, currency, language are different.

IS architecture
- designing the internal Notes network, Notes infrastructure and communication systems.
- Implementing the company hubs for connecting the branches together
- Implementing the Lotus email to share infor across the entire company
- direct interaction among managers and employees and also their clients

IS investment
- invest in Lotus Notes infrastructure
- email capabilities storage
- with Notes infrastructure, it gives E&Y the ability to build applications and add Internet/intranet
without investing much on new hardware and software.
- revenue grew by 17% -- good investment

responsibility and Control
- email security
- privacy of the details of customers

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