ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS

EXECUTIVE MBA

Exams in the course:

"Management of Information Systems"
8th June 2001

Answer only 2 of the 3 questions of case studies.

Case 1 (pg. 37-38): "Computers in Mid-Sized Business: Killington Ski Resort"

l. Is Killington at danger of losing its competitive edge by selling its software
products to competitors? Justify your answer.
2. Killington has installed a sophisticated Human Resource Management system to
utilise staff more efficiently and make better staffing decisions. How are employees
expected to react upon the introduction of such an “intrusive” system?
How can the company ensure that advantages are being realised and potential
resistance problems are overcome?
3. Killington's CEO said that his company created a cu1ture where people are
addicted to information '. What does he mean by that, and what are the benefits and
drawbacks of such a culture?
4. Killington has made an impressive utilisation of ΙΤ applications in the past. If you
were Killington's ΙΤ director, what would you propose to the company's board of
directors regarding future investment in ΙΤ? Justify your answer based on the
company's technological dependence, the users' ΙΤ literacy, competitive matters, and
any other factor you feel is relevant.

Case 2 (pg 378-379): "Extranet for Improved Chemicals Procurement"

l. What is the business and competitive environment of the research chemicals
industry? Identify the major groups of players, their characteristics, and their
relationships. Why was the particular market structure a good opportunity for a Web
intermediary like Chemdex to enter?
2. Given the success of Chemdex in the market, what would major competitors (for
example, Sigma-Αldrich) be expected to do? How can Chemdex be prepared to
defend its position?
3. Chemdex has opted for a 'packaged' procurement software solution (named
'Purchasing Commerce') instead of developing its own system. What are the
advantages and disadvantages associated with the company's decision? Comment on
the potential dependency on the software provider and ways in which Chemdex can
manage this.
4. Think of two other industries in which Web-based intermediation (in a business
model similar to that of Chemdex) might be a good business opportunity for an e-
commerce start-up. Justify your answer based on an analysis of market structure,
potential opportunities, and potential threats.

Case 3 (pg 598-599): "Intranets: Invest First, Ana1yse Later?"

1. Why is it difficu1t to do a detai1ed economic ana1ysis of an intranet-based
application before the actua1 implementation? Answer with reference to the problems
faced by the four companies mentioned in the case study.
2. Imagine that senior management in Needham Interactive insists that a formal cost-
benefit justification is carried out before taking the decision to proceed with the
system. Suggest ways in which the company could perform such an ana1ysis to
measure costs and benefits so that senior management is convinced to proceed with
the investment.
3. What kinds of ΙΤ investments are more difficu1t to justify ex ante? What are the
potential risks of the “invest first, ana1yse later” approach, and how could a company
minimise these risks in practice?
4. How long after the system rollout should an ex post investment evaluation occur?
What are the advantages and disadvantages of eva1uating system success immediately
(say a few months) after system rollout against waiting for a longer period (say a few
years) before conducting the after-the-fact financia1 analysis?

 The answers must be inclusive and brief, your text should be well-structured:
(i.e. 1:..., 2: ...), you should state your hypotheses (which means how you understand
specific parts of the problem/case-study) that you make and on which I articles or
chapters/sections your replies are based (your answers should not be genera1 and you
should include references to books, magazines, case-studies etc ).

Good luck,
Prof. G .Ι. Doukidis, Dr. G.Giaglis