Information Systems and Organisations. 02 March Marking Scheme

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1 Information Systems and Organisations 02 March 2016 Marking Scheme This marking scheme has been prepared as a guide only to markers. This is not a set of model answers, or the exclusive answers to the questions, and there will frequently be alternative responses which will provide a valid answer. Markers are advised that, unless a question specifies that an answer be provided in a particular form, then an answer that is correct (factually or in practical terms) must be given the available marks. If there is doubt as to the correctness of an answer, the relevant NCC Education materials should be the first authority. Throughout the marking, please credit any valid alternative point. Where markers award half marks in any part of a question, they should ensure that the total mark recorded for the question is rounded up to a whole mark.

2 Case Study The questions in this examination paper are based on the following case study. So, your answers should be based around the information provided in the study. Analysis of FTS organisation Fast Transport Services (FTS) is a large logistics business operating in the UK with offices in all major cities. They are in the business of delivering goods (mainly letters and parcels) to destinations within the UK. They operate as follows: Anyone wanting to send a letter or parcel would take the item to one of their local offices or phone FTS to request collection from the sender s address. Request for collection of an item can also be made via the FTS website. When a local office receives or collects an item, they log the item and record the necessary information (senders name/address, date received, information about the item, recipients name/address, etc.) The local offices take the items via delivery van services to their destinations, sometimes via other local offices, as necessary When FTS deliver an item, they log the information (e.g. delivery date) and inform the sender that despatch is complete. For the smooth running of the business, FTS are using the relevant technologies for communication with customers via their website, payment via the website, marketing, sales, recording, etc. Recently, FTS was acquired by a much larger European organisation known as EU Deliveries. A new CEO was also appointed. To understand the FTS business better, the CEO instructed the IT Director to perform an analysis of the information systems (IS) and work flows already existing within FTS, based on a number of questions provided by the CEO himself. These questions, suitably modified by the IT Director, are listed as questions in Sections A and B below. For the purposes of the required analysis, the IT Director has recruited you as a consultant. Your task is to provide answers to these questions as well as make other suggestions and recommendations. Page 2 of 14

3 Section A You must answer this question Question 1 a) List THREE (3) processes or functions which are essential for FTS (as a business organisation) to carry out. Identify THREE (3) information systems that will help to perform these functions more effectively. Various functions/processes and the associated IS include the following: Payment to staff a payroll system would typically perform this function Gathering customer opinion to determine their level of satisfaction CRM would be useful here Keeping drivers records a drivers database would be needed for this Keeping daily records of collection/delivery a daily report system would prove useful 6 A max of 6 marks may be awarded: up to 3 marks for the 3 functions; and up to 3 marks for the 3 relevant IS. b) As mentioned in the case study, FTS are already using relevant IT technologies. List FOUR (4) such technologies and explain how EU Deliveries might benefit through the use of these. 12 Some relevant technologies and their benefits include: mobile apps - for various customer services (e.g. requesting the collection of items, making payments, changes to customer requirements e.g. destination address) cloud storage - for inexpensive and reliable methods of storing information dynamic web portal - for one-step online processing of services and customer requirements social media - for online 24x7 web presence for informal liaison with customers and gaging their opinions. The answer requires mention of 4 relevant technologies and the benefits that these could provide to the business. Up to 1 marks to be awarded for each correctly identified technology total 4 marks Max of 8 marks to be awarded for the benefits to FTS (up to 2 marks per correct benefit per technology) Page 3 of 14

4 c) After the acquisition of FTS, EU Deliveries may have duplication in their 8 information systems portfolio. Some duplicated systems may not be required and some may need to be integrated or replaced. Outline a sensible strategy to describe how you will go about balancing the portfolio of information systems, highlighting the cost implications and the benefits that EU Deliveries will achieve as a result of this. This is an open question to determine the depth of students knowledge. A sensible strategy could include the following: If there are two similar IS then the better system should remain (provided it can cope with the additional data/processing requirements) and the other IS can go this will benefit the organisation by having an improved/better IS, at no cost to the organisation If there are two similar IS then if both IS are just managing the requirements then perhaps both need to go and either 1) equivalent new IS is acquired; or 2) one of the IS is extended if possible and the other can go this will benefit the organisation by having a more appropriate new IS, or an improved/better IS at minimal cost Overall, opportunity should be taken to enhance the existing systems with added functionality the benefits here include better IS, seamless integration, better services, better workflows, at much less cost than if acquiring new IS. Up to 8 marks may be awarded depending on how sensible and justified (highlighting the benefits) the recommended approach is. At least 2 correct and substantial points need to be made (for 4 marks each). If 3 relevant points are discussed with slightly less criticality, that should also be acceptable for up to 8 marks altogether. d) It is important that accepted human-computer interaction (HCI) principles are employed when designing an information system. Outline FOUR (4) HCI principles as defined by Neilson, or otherwise as generally accepted by the software engineers. Some of the HCI principles (including Neilson s) are: Match between systems and real world User control and freedom Consistency and standards Error prevention Recognition rather than recall Aesthetics and minimalist design Help and documentation 8 Only 4 well accepted principles need to be outlined. Up to 2 marks may be awarded for each relevant principle. Page 4 of 14

5 e) The CEO suspects that the FTS customers may not be fully happy when using 8 the FTS web site. Assuming this is the case, list FOUR (4) issues that may exist with respect to the web site. Four relevant concerns for the customers need to be suggested. These may include: Web site is too technical and the user interface is not at all intuitive or user friendly When making payments, sometime error messages appear for apparently no good reasons For some pages, inactivity time is too small so customers often need to enter the information several times There are no clear indications that payments are secure There is no indication that customers private data is secure and remains confidential. Up to 2 marks per relevant concern/issue may be awarded. f) Ensuring security and privacy of personal data is a legal requirement for organisations. Discuss FOUR (4) issues that may arise if security of such data is breached. Many issues can arise including: Data can get into wrong hands and so privacy is violated Data can be used for illegitimate purposes and the owner can get held responsible for that Data may get modified and the organisation holding such data can get held responsible for that Data may get modified and when modified data gets used by the organisation, it may result in failure or malfunction of other systems Data may well be totally deleted from the database where it is kept. 8 Only 4 relevant issues need to be discussed. Up to 2 marks per issue may be awarded. Total 50 Page 5 of 14

6 Section B Answer any TWO (2) questions from this section Question 2 a) The CEO is keen to survey the general impressions of the existing FTS employees in the sales office (who liaise with customers) and the satisfaction levels of the customers of FTS. Provide a list of FIVE (5) relevant questions to ask to the sales office employees. Provide a similar list of FIVE (5) relevant questions to ask to the customers. The answer is in 2 parts: 5 questions for the sales office employees; and 5 questions for the customers. 10 For the 1 st part, examples of relevant questions are: are you satisfied with the training/mentoring with respect to the technology in use? are you satisfied that the technology used is relevant to the services on offer? is there enough support and backing from the management when something goes wrong (e.g. in case of customer complaints)? are the working conditions satisfactory? are the procedures/processes fair and fairly applied? are there clear job descriptions or are jobs fairly assigned? For the 2 nd part, examples of relevant questions are: Are you satisfied with the online interaction with FTS? Are you happy with the speed of FTS response for your queries? Are the items always delivered on time, as promised? Are the staff courteous and caring? Will you always send item through FTS? Are the prices sensible/reasonable for the services FTS provide? Up to 10 marks may be awarded for 10 relevant questions 1 mark per question. Page 6 of 14

7 b) EU Deliveries are keen to acquire relevant information systems and IT technologies to provide better customer support. Suggest THREE (3) information systems that can help to achieve this. In each case, discuss the following: 1. How these systems will prove useful to the organisation 2. How these systems will prove beneficial for the customers. Some of the IS that may be used to support customers better and to be beneficial for the organisation and to the customers are: CRM to help to interact better with customers o advantageous for organisation as this will help them manage customer relationships better o advantageous for the customers as they will receive better support E-business and e-commerce: to support customers who have access to technology o Good for the business as this will provide additional channels for provision of services o Good for consumers as they will be able to avail services 24x7 Even a simple website that is user friendly and with shopping cart and secure payment system o Good for the business and the customers alike as this will help to improve the way users communicate and transact o Organisational information will be more accurate and current Customer profiling system - to determine customer requirements and preferences o to help the business to retain customers o customers will feel they are being looked after well through loyalty schemes etc ERP - for better resource planning o This will help the organisation to be more efficient o Customer may not necessarily the advantages but the efficiency/ effectiveness of the business will be evident and customer will have more trust in the organisation. Answer requires discussion of 3 relevant IS in the context of expanded EU Deliveries. Up to 5 marks per suggested IS (name of IS for 1 mark; how it would prove useful to the business for 2 marks; how it would prove useful to the customers for 2 marks) may be awarded, depending on the detail and relevance of each discussion. 15 Total 25 Page 7 of 14

8 Question 3 a) With the introduction of new technologies, the relationship between people and their work practices are changing. Discuss in detail FOUR (4) challenges for the management of an organisation, as a result of new approaches to working. Challenges include: Personnel management as a result of home-working, hot-desking Blurring in the online world between work and social spheres Competitive pressures and need to respond quickly and in real time Management of networked contributions and distributed work Performance analysis of productivity as a result of remote working Management of diverse and newer channels of communication and delivery. 16 Any four relevant challenges need to be discussed. Up to 4 marks per challenge may be awarded. b) EU Deliveries are also inheriting FTS infrastructure in terms of IT systems. They would like to integrate these with their existing systems. Discuss THREE (3) main issues that the integration might pose. 9 There can be many integration issues, including: Heterogeneity of the systems with different communication protocols Different versions of the same systems some of these may not be compatible Deciding whether some very old systems should stay or go Scaling up of systems vs scaling out of systems Only 3 integration issues need to be highlighted and discussed. Up to 3 marks per relevant issue may be awarded. Total 25 Page 8 of 14

9 Question 4 a) It is important that organisations carry out a review process following the implementation of a new business strategy or a new portfolio of information systems. In this context, discuss the following: 1. purpose of such reviews 2. who conducts or participates in the reviews 3. factors that might contribute to the success of the process 4. reasons why many organisations do not conduct such reviews The answer is in 4 parts, as follows. 16 The purpose of the review is to measure the outcome in terms of benefits that the new strategy/is may have brought to the organisation. Also to investigate possible failures, identify good practices and improve processes. Those participating in the process include: business managers, IS/IT managers (as they are directly involved), IS/IT users (for their input), external consultants (for their advice), auditors (for compliance). Success factors include: quality of review process, quality of available information, fairness of process, accepting responsibility, intention to improve as necessary. Reasons for not conducting reviews include: lack of time, expense in relation to hiring external consultants, not knowing the processes involved, internal politics. Up to 4 marks per factor may be awarded. Page 9 of 14

10 b) The statement information systems lead to the possibility of automation is generally true. Critically discuss this statement. Use examples of relevant information systems to support your argument. 9 Discussion may suggest and include the following facts: IS aim to process information must faster this eliminates human involvement and human processing IS aim to process information more correctly this eliminates human errors and increases efficiency IS can interact with other IS this automates even more of the business processes, resulting in even faster processing. Examples may refer to: Payroll systems that print pay slips based on data that already exists ERP that manages resources more efficiently without human involvement Customer profiling systems that extract information re customer buying habits and target them, without the need for the human staff to know anything about customers. It is expected that about 3 well-known facts will be presented in the discussion, but 2 facts is also fine, provided discussion is sound. Up to 6 marks may be awarded for a well-articulated discussion (covering about 3 points). 2 relevant points but well-argued may attract up to 4 marks. Up to 3 marks may be awarded for mentioning 3 appropriate IS as examples. Total 25 Page 10 of 14

11 Question 5 a) Management Information Systems (MIS) are valuable tools for large organisations. Considering the nature of the FTS/EU Deliveries business, suggest whether a MIS would be beneficial for the business, or not. Provide FOUR (4) reasons to support your suggestion. If it is suggested that MIS would be beneficial, then the following benefits might form part of the answer: Supporting the management in decision making Helping to manage more efficiently and effectively Better quality and improved quantity of information Improved operational efficiency and flexibility Better and more efficient supply-chain systems 16 If it is suggested that MIS would not be beneficial, then the following points may be raised: FTS/EU Deliveries is a simple business and does not require many strategic decisions so there is no need for MIS MIS is expensive and so cost of MIS cannot be justified for a straightforward business such as FTS/EU Deliveries MIS have the potential to become ineffective in a company s operations as gathering non-essential information can delay business decisions MIS are highly sensitive and require constant monitoring so not required for FTS/EU Deliveries MIS consider only qualitative factors and ignore non-qualitative factors. Since most of FTS/EU Deliveries information is quantitative, there is no need for a MIS Only 4 relevant points/reasons need to be discussed. Up to 4 marks may be awarded per relevant point made. Page 11 of 14

12 b) Two of the business strategies to achieve business success are: product 9 leadership (innovation and branding) and operational excellence (efficiency of processes). Discuss which of these strategies would be more appropriate for EU Deliveries. Discussion may suggest operational excellence presenting the following arguments: It is more appropriate as customer requirements (collection/delivery on time, safe delivery) are well understood and there are no goods involved and so innovation is not needed. Work flows are straight forward so it is easily possible to have efficiency of operations and processes. Discussion may suggest branding presenting the following arguments: FTS are competing with huge organisations such a post office so to succeed, FTS must innovate and create a brand name Innovation and branding always works so FTS may have gone for the proven approach. It is expected that at least 2 main reasons would be presented in the answer. Up to 9 marks (4-5 marks per reason) may be awarded depending on clarity and soundness of the discussion. Total 25 End of paper Page 12 of 14

13 Learning Outcomes matrix Question Learning Outcomes assessed 1 1, 2, 3, 4, 5, 6 Yes 2 2 Yes 3 1, 6 Yes 4 1, 5 Yes 5 2, 4, 5 Yes Marker can differentiate between varying levels of achievement Page 13 of 14

14 Grade descriptors Learning Outcome Analyse the use of Information Systems (IS) within organisations Examine the many internal and external uses of an organisation s IS Critically evaluate the costs and benefits of a range of IS systems Critically evaluate the cultural, structural and political aspects of IS Examine the issues associated with human interaction with IS Assess the effects of technological change on IS and the organisations Pass Merit Distinction Demonstrate adequate ability to analyse the topic Provide examination of the subject with some suitable examples and references Provide a reasonable assessment of the subject; Ideas are generally coherent and demonstrate some sound critical skills Provide a reasonable assessment of the subject; Ideas are generally coherent and demonstrate some sound critical skills Provide examination of the subject with some suitable examples and references Demonstrate an adequate awareness of issues associated with the subject and make some appropriate judgements Demonstrate ability to provide detailed and coherent analysis of the topic Provide detailed examination of the subject with adequate use of appropriate references and examples Provide a generally strong assessment with some wellreasoned assumptions; Ideas are consistently coherent; Demonstrate consistently sound critical skills Provide a generally strong assessment with some wellreasoned assumptions; Ideas are consistently coherent; Demonstrate consistently sound critical skills Provide detailed examination of the subject with adequate use of appropriate references and examples Demonstrate a sound awareness of issues associated with the subject and make consistently appropriate judgements Demonstrate ability to provide comprehensive, lucid analysis of the topic Provide consistently critical and detailed examination of the subject with innovative use of highly appropriate references Provide a consistently strong assessment with well-reasoned and original assumptions; All ideas are highly coherent; Demonstrate highly developed critical skills Provide a consistently strong assessment with well-reasoned and original assumptions; All ideas are highly coherent; Demonstrate highly developed critical skills Provide consistently critical and detailed examination of the subject with innovative use of highly appropriate references Demonstrate a detailed awareness of the complexity of issues associated with the subject and make highly appropriate judgements Page 14 of 14

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