Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Max. Marks: 20 October 19,, 2010 Mid Term Exam Course: MBA 621 Enterprise Information Systems Time: 2 Hours (16:00 18:00) (Attempt any Four Questions) Name: _____Emre Tezcan__________________________________________

Question 1: Describe some of the major changes that information systems are bringing to organizations? Describe few major trends in the global business environment that makes IS so important. Information Systems are so important in todays world; because IS provides important advantages things against their rivalries. It helps for them to compete effectively. There are few major trends in business world in the last 50 years that makes IS so important that helps management reporting and decision making. IS improves efficiency of business itself, decision making and helps for effective workgroup collaboration. IT itself can be a important advantage as well. For example using extranet and intranet could help to company in order to make them competitive and work effectively. Electronic Data Interchange helps companies to communicate easily, transfer electronic documents from one computer to another. Also enhancing supply chain with extranet is could be a good example for this. Major trends in the global business environment facilitates virtualization, globalization, and even e-commerce which is the biggest advantage IS brought to our lives. The emerging global economy, transformation of industrial economies, transformation of business enterprise and emergence of virtual companies are some trends in the global business environment that have made IS so important. Information Systems has vital roles in business world such as supporting strategies for competitive advantage, supporting business decision making and supporting business processes and operations. Information Technologies which is a subset of IS, has been made progresses for the companies. Integration of ecommerce and ecommerce plays

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: _Emre Tezcan____________________________

an important role for the companys role in todays world. Reengineering in the functions of companies using Internet technologies maximizes profit even it is a little bit risky step for a company. Processes in marketing, accounting, finance, human resource and so other departments functions are now supported by computers. That helps mitigate costs for the company and makes to compete effectively in their own market. IS also supports business decision making which is very important thing in order to evaluate and making effective decisions for companies. Accessing any data or information by all departments are more easy now. For example in finance department, a manager could reach last 50 years market tables in just a few seconds. Another thing is for IS that it supports of strategies for competitive advantages. Competitive advantages provides lowering costs and helps to differentiate and innovate themselves in the market. To lower costs, IT could help reducing cost of business and so cost of their own products. IT also could help to change product types or innovate them by using some features of itself.

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: ___

Question 2: Describe the management challenges posed by electronic commerce and electronic business on the Internet. Explain the four popular e-business models.

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: _____________________________

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Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: ______Emre Tezcan_______________________

Question 3: Explain how information systems are transforming organizations and management. Identify the major management challenges to building and using information systems in organizations. Information systems are transforming organizations and management in todays world because lack of any IS subset or itself it is impossible for a company to survive. Information Systems has to contribute to increase productivity, new products and services for their customers. Maximizing companys resources with using effective information flow is possible by using IS. It provides empowering employees in case of any problem at that time, helps to work-collaboration and valuable working by using low transaction and coordination costs and so on. Think about parts of a system, input, processing and output. In every step IS integrated to companies especially in an organized transformation processes. Information System is an organized combination of people, networks, computer materials and data resources and IS could store, transform and disseminate information in an organization. The major management challenges to building and using information systems in organizations could be management challenges that needed to give effective decisions, communicating easily and understandable with users so they can use IS efficiently. Cross-functional integration in business by using IS could be hard as well. Adapting ecommerce and e-business processes and structures to a firm needs a lot of time and money. But with careful planning and without shifting targets, e-business and ecommerce would be successful in order to achieve high sales and profit results. Inaccurate information in IT could lead deadly mistakes in an organization. For example, IT applies for CRM and giving inaccurate information to a customer in some way could bring that image of organization down. Consumer boycotts, work stoppages and government intervention are also some of the challenges of IT. Those challenges could not provide effectiveness of business process, managerial decision making and workgroup collaboration.

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: _____________________________

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: _____Emre Tezcan________________________

Question 4: What Kind of LAN topology is suitable for BSU? Suggest your best solution for campus wide network for BSU and its connectivity to internet service provider (show by schematic diagram.). Justify your recommendation I believe that Star Topology is suitable network type for BSU. It can be connected to servers and the other computers with a switch. Star network has a central switch or hub which helps to transmit messages. It is designed with each node (server or work stations) and connected directly to a central network hub or switch. Hub takes a signal and passes that other nodes in the network. Twisted pair cable (unshielded shielded) is commonly used in this network but coaxial of fiber-optic cable can be also used in this network type. Biggest reason to use Star Network in BSU can be detecting faults is very easy unlike token ring or bus topologies. In the ring, if any node fails, whole network fails. Any crash on a star network wont be caused crashing whole network nothing but just to detect it easily. Installing is very easy like Bus, but provides more advantages than Bus. Navigating and implementing Star Network is very easy. Star has better performance with the increasing nodes in the network. Increasing nodes wont be problem for star unlike Bus. It is very easy to expand the network because of that. Bus topology can be more easy and cheaper to implement it but when it crashed whole system would be wasted because it is hard to detect the problem easily. I think fiber-optic cable should be installed in Star Network for BSU. Because speed of fiber-optic cable is faster and better than that of the other cables. Fiber-optics should be used to connect the computers in the whole campus. In the diagram advised below, it should have been used Star Network instead of Bus Network. Star network also provides easier internet access for users; therefore in my view this network type is the best solution for BSU. A bus network would not be suitable for BSU because limited size and speed is not effective as well as detecting troubles.

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: _____________________________

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: ____Emre Tezcan_________________________

Question 5: How could some of the spectacular failures of ERP systems have been avoided?

Enterprise Resource Planning (ERP) helps efficiency of production, distribution and the other processes. It integrates and provides automation processes in every departments such as manufacturing, logistics, distribution, accounting, finance and human resources. Software modules should be integrated in ERP in order to work effectively. When it is fully implemented, ERP could help to ease business, supplier and customer relations. ERP is in every step of processes, for example purchase orders, customer orders or customer forecasts. It provides quality and efficiency, decreased costs, and decision support. Also there are some disadvantages of this system which can lead to failures; first of all it is really expensive to implement a system such as ERP. One mistake can fail whole system in any step. Overlooking some plans at the beginning could cause ERP failure. For example defining not the exact target market at the beginning could cause resource planning is made incorrectly. Not to involve enough employees in planning could lead some trouble as well. Trying to run a company lack of enough employees is nothing just a problem. Trying to implement ERP too fast is another failure causes. Therefore it should take enough time to install ERP. In order to avoid ERP failures, sufficient training should be made as well. That helps employees to avoid making mistakes unintended. If an organization is just founded, it should have only a few vendors. An organization should not install ERP unless it does not have reliable vendors.

Department of Information Systems and Operations Management, Ball State University

MBA 621

Fall 2010 Name: _____________________________

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