MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY

JASAAN CAMPUS
JASAAN MISAMIS ORIENTAL

MANAGEMENT INFORMATION
SYSTEM
CASE STUDY
Chapter 6 Chapter 10

Submitted by
Resshille Ann T. Salley

Submitted to
Mrs. Evelyn Aleria

TABLE OF CONTENTS

INTRODUCTION___________________________________________________________1

CHAPTER 6 DATABASE MANAGEMENT SYSTEMS

Case Problem 6
MAPLE TREE INDUSTRIES____________________________________________2-3

CHAPTER 7 SYSTEM DEVELOPMENT

Case Problem 7
A SNOW JOB_________________________________________________________4-5

CHAPTER 8 INFORMATION IN ACTION

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Case Problem 8
THE DATA MINE______________________________________________________6-7

CHAPTER 9 INFORMATION SECURITY

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Case Problem 9
CONFIDENTAL REPORTS______________________________________________8-9

CHAPTER 10 ETHICAL IMPLICATIONS OF INFORMATION TECHNOLOGY

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Case Problem 10
NEED TO KNOW______________________________________________________10-11

INTRODUCTION

The case study is designed to complement the other materials available on the website, rather than serve
as a stand alone teaching tool. The other, static, portions of the site provide content, specifically on the
rules governing responsible image processing.
The primary goal of the case study is to give users an opportunity to see how the image guidelines apply
in the context of an actual lab, and how they intersect with issues of mentoring, authorship and technical
training; a secondary goal is to reinforce the understanding of the rules guiding image presentation. This
aims to help users identify various temptations and pressures that make misconduct more likely, and to
reflect on ways to avoid those temptations.

This 5 case study presents an account of what happened to a business or industry over a number of
years. It chronicles the events that managers had to deal with, such as changes in the competitive
environment, and charts the managers' response, which usually involved changing the business- or
corporate-level strategy.
Cases prove valuable in a course for several reasons. First, cases provide us, the student, with experience
of organizational problems that we probably have not had the opportunity to experience. We will have
the chance to appreciate and analyze the problems faced by many different companies and to understand
how managers tried to deal with them.
Second, cases illustrate what we have learned. The meaning and implication of this information are
made clearer when they are applied to case studies. The theory and concepts help reveal what is going
on in the companies studied and allow us to evaluate the solutions that specify companies adopted to
deal with their problems.
Lastly, case studies provide us with the opportunity to participate in class and to gain experience in
presenting your ideas to others.
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CHAPTER 6 DATABASE MANAGEMENT SYSTEMS

Case Problem 6
MAPLE TREE INDUSTRIES
You have one of the most successful computer consulting firms in Canada that deals with helping small
companies formalize their databases as they grow beyond simple computer applications for accounting
and need managerial information systems. Your first consulting jobs dealt with solving quality control
issues for manufacturing companies, but you have since branched out to serving other industries.
Last week you presented a database seminar in Toronto that was attended by more than 25
executives in small but high-growth companies. The $2,500 tuition paid by each attending executive
made the seminar a financial success, but you expect an even greater return in the form of follow-up
consulting activity.
While enjoying your morning cup of coffee, you go through the stack of mail. You notice an
envelope from Maple Tree Industries, and you recall that the company had a representative at the
seminar. You open the envelope and read:
Dear Sir or Madam
I greatly enjoyed the database seminar. I was surprised to learn of the potential that a
database management system offers. It was a shock to my ego to realize that we are what
you call a pre-database company, but I want to change that.
We are very interested in implementing a database management system and would like to
consider retaining you as a consultant on the project. At present, we have no in-house
database management expertise. We do use a popular software package to perform
accounting transactions: order entry, accounts receivable, and such. Could you please
prepare a short list of the basic steps that we should take in implementing a DBMS? Also,
for each step, indicate the person or persons responsible. The list will give us a good idea of
what we must do and an indication of the support we can expect from you in project
planning. I am making the same request of two other computer consultants that I know.
I look forward to receiving your response.

Sincerely,
Anthony Scarmodo, President
Maple Tree Industries
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ASSIGNMENT
Assume that the Maple Tree has a good information services staff and is a prospect for implementing a
database management system. What steps should be made to identify data that should be incorporated
into a database management system for Maple Tree? How should the users of the database and the
information systems professionals communicate their ideas for the data needed in the database? Should a
database administrator be identified early, while the database design is evolving, of after the database
has been implemented.
ANSWERS
A conceptual framework of several levels of data has been devised that differentiates between
different groupings, or elements of data. Thus, data may be logically organized into character, fields,
records, files, and databases.
Data from various operational and external databases are captured, cleaned, and transformed into
data that can be better used for analysis. This data is stored in the enterprise data warehouse from where
it can be moved into data marts or to an analytical data store that holds data in a more useful form for
certain types of analysis.
Managers and business professionals need to view data as an important resource that they must
manage properly to ensure the success and survival of their organizations. Database management is an
important application of information technologies to the management of firms data resources.
Data resource management includes database administration, data planning, and data
administration activities.
Data Administration

Develop and enforce policies governing dataownership and access

Conduct data resource requirement planning
Develop an organizational procedures

Data Planning

Prepare strategic and technical database plans

Identify opportunities for data sharing and database application
Set and enforce operational procedures

Database Administration

Conduct a database design process

Conduct database tuning and capacity planning
Establish and maintain a data directly
Evaluate and select database software

The database administrator should be identified early because it involves administrating the
collection, storage, and dissemination of all types of data in such a way that data become standardized
resource available to all end users in the organization. The focus of data administration is the support of
an organizations business processes and strategic business objectives and may also include responsibility
for developing policies and setting standards for corporate database design, processing, and security
arrangements.
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CHAPTER 7 SYSTEM DEVELOPMENT

Case Problem 7
A SNOW JOB

You are the CIO of Cyan Trials Snow Products. You provide sales and rentals of ski and snowboard
equipment at many ski areas. More than 200,000 people rent equipment from Cyan every year. Cyan
gathers information from renters and buyers to help serve them better but also to help keep them as loyal
customers. Reminders are sent each ski season about rental packages and special equipment sales offers
are made to previous customers .In general, Cyan has excellent record of using information systems to
boost profits.
Your company has been profitable for 75 yrs because it has been able to quickly adapt to
changing market conditions. This season presents a new revenue opportunity -lift ticket resale. The idea
is to buy back someone's unused days of a lift pass and then sell that pass to another skier. When
customers bring back their ski and snowboard rentals, it is the perfect time to buy back any lift tickets
with unused days.
Some lift tickets are for a single day and some day and some are for two, three, four and five
days. Tickets for multiple days are discounted based on the number of days of the tickets life. Many
skiers and snowboarders come to the mountains and to the mountains and expect to ski and snowboard
the entire time. They buy a five day lift ticket because it is the best bargain. But if the skier finds that he
or she cannot or does not want to ski the entire time, some of the lift days are never used. Cyan wouldlike to buy those unused days from one skier and sell them to another.
The ski lift operators have agreed to let Cyan try this resale proposal for one season. Cyan must
give the lift operators 10% of the gross sales. Annual ski passes cannot be resold since they are issued to
individuals and are not part of the agreement with the lift operators. Cyan will have to design an
information system that buys back lift tickets, keeps an inventory of tickets based on the number of lift
days left to be used, and accounts for sales so that lift operators can be compensated. However, the big
problem is time. The ski season opens in three weeks.

CHAPTER 7 SYSTEM DEVELOPMENT

Case Problem 7

ASSIGNMENT

1. Why is this case well suited for rapid application development (RAD)?
This case well suited for rapid application development (RAD) because it includes the rapid
development and testing of working models of new application in an interactive, iterative process that
cab be used by both the IS specialist and business professional. It makes the development process faster
and easier, especially for projects where end user requirements are hard to define.

2. Who would be members of your RAD team and why?

RAD team must have:
End Users - identify business needs and assess the feasibility of several alternative information system
solutions.
System Developers develop a business application.
IS Specialist uses application development tools to interactively design and test prototypes of
infromati0on system component that meet end user business need.
Data and Database Administrator person who are responsible for over all management of data
resources in organization.

3. Briefly outline how you would implement each of the four RAD life cycle phases: requirement
planning, user design, construction, and cutover.
The systems implementation stage involves hardware and software acquisition, software
development, testing of programs and procedures development of documentation, and variety of
conclusion alternatives. It also involves the education and training of end users and specialist who will
operates a new system.
Requirements user application construction

RAD Cycle
Maintenance cycle
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cut over

CHAPTER 8 INFORMATION IN ACTION

Case Problem 8

THE DATA MINE

Youve been the director of manufacturing at Tej Electronics for five years. During that time you have
repeatedly depended upon the Tej database for key decisions. A disturbing rise in the manufacturing
defect rate of your signature product had your job on the line. On a hunch, you had an information
analyst scour the database and an unexpected fact emerged-each defective product used the component
from the same component fail. There are 20 vendors for that component but each of the defective
products used the component from the same vendor. That insight probably saved your career.
Greg Wilkins is the Director of Sales. When you mentioned your incident to him, he can confide
a similar episode. A multimillion dollar sale to one of the firms most important customers was in
jeopardy. After talking with the sales account representative and the customer, Greg could not
understand why the sale was at risk. The customer representative begun going over old database reports
and noticed a peculiar pattern to the dates when the customer had canceled past sales orders. He then
went through news reports for those times and found reports about the company. When the company ran
out of warehouse space, it canceled orders.
With this information, Greg knew what to do. He arranged for the sale to go through as planned
but shipment of the product was to be made on a delayed time table set by the company. Tej made the
sale by acting as the warehouse for its customer.
Tej has been relying on the company database for the key decisions more and more frequently.
You and Greg begin to discuss how to take their use of the database to a higher level.

CHAPTER 8 INFORMATION IN ACTION

Case Problem 8

ASSIGNMENT

1. What can data mining do to help Tej Electronics?

Data mining can help Tej Electronics because it is a major use of data warehouse databases. In
data mining, the data in a data warehouse are analyzed to reveal hidden patterns and trends in historical
business activity. This can be used to help managers make decisions about strategic changes in business
operation to gain competitive advantages in the marketplace.
2. From the examples in the case, do you think Tej will be more likely to use roll up or drill down
navigation?
The Tej will be more likely use the drill down navigation because OLAP can automatically
display detail data that comprise consolidated data that involves simple roll-ups to districts and districts
to rolled up to region. For example, the sales by individual products or sales reps that make up a region
sales total could be easily accessed.
3. How might OLAP help Tej?
Online Analytical Processing (OLAP) might help Tej by examining and manipulating large
amounts of detailed and consolidated data from much perspective. OLAP also involves analyzing
complex relations among thousands or even million of data items stored in multidimensional databases
to discover patterns trends, an exception conditions. An OLAP session takes place online in real-time,
with rapid responses to a managers or analyst queries, so that their analytical or decision making process
is undisturbed.

CHAPTER 9 INFORMATION SECURITY

Case Problem 9

CONFIDENTAL REPORTS
Your company, Fair Heights, is hired by other companies to perform background checks on executives.
The executives are typically are seniors managers of the firm with a vice president title or higher. Most
of the checks are on executives who are being considered for a job but sometimes you run background
checks on current executives. The gathering of information is not the key service Fair Heights provides.
Analysis of the information and the security recommendation are the services that make your company
unique.
During the last 10 years of business, Fair heights has always provided the reports to their clients
in person or in written report delivered by a courier. There is growing demand to make recommendation
accessible via the World Wide Web. The reason is that many of the firms are multinational and
assembling key executives to hear Fair Heights report can be difficult and expensive to arrange. Making
the arrangements can cause delays and the companies want this vital information delivered as quickly as
possible.
The move to Web-based reports is inevitable. Its your job to make a report for the planning
committee that identifies and addresses key issues.

ASSIGNMENT

1. You want Fair Heights reports to be confidential, available, and to have integrity. Explain how
reports Web-accessible will affects each of these.
There is no question that the use of information technology in business prevents major security
challenges, poses serious ethical question, and affects society in significant ways. The use of
information technologies in business has had major impacts on society, and thus raises ethical issues in
the areas of crime, privacy, individuality, employment, health and working conditions. However, you
should also realize that information technology has had beneficial results as well as detrimental effects
on society and people in each of these areas. For example, computerizing a manufacturing process may
have the adverse effect, of eliminating peoples job, but also have the beneficial result of improving
working condition and producing products of higher quality at less cost.

2. List several external threats and internal threats to the security of Fair Heights reports. Make
sure you address both the accidental and deliberate threats to security.
A growing threat to society caused by irresponsible actions of individuals poses serious threats to
the integrity, safety, and survival of most business systems, and thus makes the development.
Accidental and deliberate threats are:
-

Assembling key executive to hear reports can be difficult and

expensive to arrange.
Making arrangements can cause delays
Unauthorized Usage and Access- sharing of passwords and
access into networks without permission.
Transmission of Confidential Data- using the Internet to display
or transmit trade secrets

3. Make a brief risk management report (about three paragraphs) that identifies several risks and
classify the risk impact of each.
Business ethics is concerned with the numerous ethical questions that managers must confront as part of
their daily business decision making. The issues of employee privacy, security of company records, and
workplace safety have been major areas of ethical controversy in information technology.

CHAPTER 10 ETHICAL IMPLICATIONS OF INFORMATION TECHNOLOGY

Case Problem 10
NEED TO KNOW

A new department, Customer Analysis, has just been added to Customer Relations Management
Division of your firm and you will be the manager. Your company is a conglomerate that sells a wide
variety of consumer goods including electronics, clothing, specialty foods, and much more. Data is
collected from these purchases and after a period of time the spending profile of a typical customer can
usually be predicted.
Your Customer Analysis department will sift through the data to predict customer demand for
individual products. The prediction of the customer demand will determine pricing policy. A premium
price can be charged when customers really want the item. When demand will be low, lowering can
stimulate sales.
You have scheduled the first department meeting for next week. Two issues about your
departments mission need to be addressed; (1) manipulating product price based on customer profiles,
and (2) accessing individual customer profile information. Some employees in the firm, even in your
new department, have expressed concern about manipulating customer behavior based on information
that the company has about their purchasing habits. The concern over access seems to be influenced by
the fact that some customers might be personally known by employees who would have access to those
customers spending and purchasing habits.
For the department to operate effectively, you feel the department meeting should provide a
forum for discussing these issues. You want to be open to your staffs concern and suggestions.
However, you know that as the manager you must play the leadership role in the discussion.

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CHAPTER 10 ETHICAL IMPLICATIONS OF INFORMATION TECHNOLOGY

Case Problem 10

ASSIGNMENT

1. How will you explain the use of customer profiles to affect pricing policies? Your explanation
should address morals, ethics, and laws.
The use of customer profiles will help evaluate the potential harms or risks of new technologies
in terms of pricing policies. When customers really want the item, a premium price can be charged
which can stimulate sales of your department.

2. What procedures can you put in place to discourage an employee from being a snooping
neighbor by looking up information about customers that is not needed for the job?
Information about customer is not needed for the job because when demand will be low,
lowering the price can stimulate sales.

3. What role do you as the manager play in developing an ethics culture for our department?
As a prospective manager, you will be challenged by the ethical responsibilities generated by the
use of information technology. Business ethics is concerned with the numerous ethical questions that
managers must confront as part of ethical business decision-making. Manager have an ethical
responsibility to manage a firm for the benefit of all its stakeholder, employees, customers, suppliers,
and the local community sometimes the term is broadened to include all groups who can affect or be
affected by the corporation. Balancing the claim of conflicting stakeholders is obviously not an easy task
for managers.

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