Examination Cover Page

Examination Period: 2016 Term 1 AFFIX

Academic Institution: Central Queensland University STUDENT ID
Academic Group: Higher Education Division
Academic Career: Postgraduate
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Examination Type: Standard HERE

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Course: Information Systems for Business Professionals

Subject Area: COIT
Catalog Number: 20274
Paper Number: 1
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Duration: 180 minutes Restrictions: Closed Book

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 Term 1 Standard examination 2016

Information Systems for Business Professionals COIT20274

INSTRUCTIONS SHEET

1. This examination comprises two (2) parts, Parts A and B.

2. Part A is compulsory and contains 3 questions. You must answer all the
questions in PART A.
3. Part B contains 6 questions. You must answer any 5 questions of your
choice.

Additional Details:
4. Part A is one of the Real World Cases from the prescribed textbook that
was covered in this term. First read the 3 questions for the case study,
then read the case study, and then write your answers.
5. The five questions in Part B that you choose to answer require short
written answers only.
6. Write the answers in the exam booklet. The question number must be
stated clearly.
7. All questions should be answered in your own words, using examples
where possible.

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 Term 1 Standard examination 2016

Information Systems for Business Professionals COIT20274

PART A Total 25 Marks

Real World Case: General Electric

Suggested Procedure: First read the three case study questions that follow the case,
then with those questions in mind, read the case below. Finally write your answers to the
three questions in the exam booklet. Marks as indicated at each question.

The Case

General Electrics supply chain is global: 500,000 suppliers in more than 100 countries with
14 different languages. GE spends $55 billion on supplies annually. Its CIO is Gary Reiner.

For years, GEs Global Procurement Group faced the challenge of trying to accurately track
and make sense of all of the supply chain interactions with half a million suppliers -
contracts, compliance initiatives, certifications, and other critical data, which needed to be
centrally stored, managed, and made accessible to thousands across the globe. GE was
using what it called a Global Supplier Library, a home grown system that, Reiner says, had a
rudimentary capability. Reiner and his staff knew that GE needed something better, but
they didnt want to build it. They wanted a supplier information system that was easy to use
and install, could unite GEs sourcing empire into one central repository, had multi-language
capabilities, and also offered self-service functionality so that each of its suppliers could
manage its own data.

The goal was to achieve one common view of its supplier base, and one version of the truth
in all that data. To get there, Reiner and his IT and procurement teams bought the
application of a little-known Software-as-a-Service (SaaS) vendor called Aravo that would
ultimately become GEs largest SaaS deployment to date.

When we judge a solution, we are indifferent to whether its hosted by a supplier or by us,
Reiner says. We look for the functionality of the solution and at the price. And that, he
claims, has been the way theyve always operated. Reiner says that his group doesnt see a
big difference in cost and in capabilities between on-premise and SaaS products. And let
me emphasize, he adds, we dont see a big difference in cost either from the point of view
of the ongoing operating costs, or the transition costs. Furthermore, when looking at
implementation costs, theyre largely around interfacing with existing systems, process
changes and data cleansing, he says. Those three costs exist regardless of whether GE
hosts that application or whether the supplier hosts that application.

The Aravo technology platform was untested at GEs level of requirements and, with just 20
or so customers, coupled with the sheer scale of GEs needs, did not really concern Reiner.
We could have been concerned about that, he concedes. But that would have also been a
concern if we had hosted the software on our own servers. We knew Aravo could handle it.
Plus, Reiner says that no other supply chain vendor offered the type of functionality that
Aravos Supplier Information Management (SIM) product offered, and Reiner and his team
reasoned that it was much cheaper to buy than build. Wed much rather work with them, he
says, than build it on our own. One GE sourcing manager told Aravo that GEs ROI on the
project is not just positive, its massively positive.
Part A continued over next page

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 Term 1 Standard examination 2016

Information Systems for Business Professionals COIT20274

Part A (continued)

Theyre using SaaS for 100,000 users and 500,000 suppliers in six languages: thats a
major technology deployment shift, says Mickey North Rizza, research director at AMR
Research. She says that the sheer volume of transactions, combined with the fact that GE
supply chain and procurement employees around the world can now access the same
sourcing partner information, all from the same central spot, is significant not only for the
supply chain management space but also for the SaaS and cloud computing world. Finally
we have a very large company tackling the data transparency issue by using a SaaS
product, North Rizza says.

So far, the thorny issue of data quality in GEs supplier data has been improved, because
suppliers now use the self-service capabilities in the SaaS system to manage their own data.
There is still more work to do to the SIM platformfor example, GE sourcing employees will
add more workflows and new queries to the system; more languages might be added as well
(six are operational now).

Source: OBrien, J & Marakas, G 2011, Management Information Systems, McGraw Hill/Irwin, New York.

PART A Case study questions

Question 1
What factors should companies take into consideration when making the decision
between developing their own applications, or purchasing from a vendor, or taking
the Software as a Service (SaaS) route, as GE did in the case? Discuss the factors
and outline their collective importance to this decision. (9 marks)

Question 2
Identify the risks that GE took when they contracted for SaaS with a small and less
experienced vendor. Discuss the options available to GE that enabled GE to mitigate
or eliminate such risks. (8 marks)

Question 3
What should companies do if none of the "configuration options" of business
software perfectly fits their needs? Discuss the options and the circumstances where
each option would be more suitable. (8 marks)

Note:
Short paragraphs could be used to present different points, with headings and
sub-headings.
Essay format is not required.

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 Term 1 Standard examination 2016

Information Systems for Business Professionals COIT20274

PART B SHORT ANSWER QUESTIONS

Answer any 5 of the following 6 questions
Each question is worth 5 marks (5 X 5 = 25 marks)

Question 1
Describe an intranet. Briefly explain three business values driving so many
companies to install and extend intranets rapidly throughout their organizations.

(5 marks)

Question 2
Briefly explain four important factors in evaluating computer software.
(5 marks)

Question 3
Define Decision Support System. Briefly describe three ways in using an electronic
spreadsheet package to provide the capabilities of a Decision Support System.

(5 marks)

Question 4
How can a company use change management to minimize the resistance and
maximize the acceptance of changes in business and technology? Briefly explain
four strategies. (5 marks)

Question 5
Why has prototyping become a popular way to develop business applications?
Briefly explain two advantages and two disadvantages of prototyping. (5 marks)

Question 6
The textbook discusses some potential security problems in the increasing use of
intranets and extranets in business. Briefly discuss two potential security problems
and what might be done to solve such problems. (5 marks)

Note:
Use short answers to address the questions.
Point form may be used where appropriate.

- End of Exam Paper -

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