华农mis复习卷和案例答案

Sample: Fall of 2012 MIS Examination Paper (A)

华南农业大学期末考试试卷（A卷）

2012--2013学年第2学期 考试科目： 管理信息系统 考试类型：（闭卷）考试 考试时间： 120 分钟 1 True-False Questions (mark the corresponding letter T ( for True) or F (for False) for the following statement on Answer Sheet, 10 questions, 10 scores in total)

1) Information systems literacy describes the behavioral approach to information systems, whereas computer literacy describes the technical approach. 2) Deciding whether to introduce a new product line is the responsibility of an operational manager.

3) Analytical CRM uses a customer data warehouse and tools to analyze customer data collected from the firm's customer touch points and from other sources. 4) Electronic commerce designates the use of the Internet and digital technology to execute all of the activities of the enterprise.

5) From the point of view of economics, information systems technology can be viewed as a factor of production that can be substituted for traditional capital and labor.

6) IT infrastructure technology is purely a set of physical devices and software applications that are required to operate the entire enterprise.

7) Faulty requirements analysis is a leading cause of systems failure and high systems development costs.

8) In a pull-based model, production master schedules are based on forecasts of demand for products.

9) Object-oriented development is more iterative and incremental than traditional structured development.

10) Intangible benefits cannot be immediately quantified but may lead to quantifiable gains in the long run.

2 Multiple-Choice Questions (Choose the best answer from the given choices and answer the question on Answer Sheet, 30 questions, 30 scores in total)

1) The use of information systems because of necessity describes the business objective of

A) survival. B) improved business practices.

C) competitive advantage. D) improved flexibility.

2) Order data for baseball tickets and bar code data are examples of A) raw input. B) raw output.

C) customer and product data. D) sales information.

3) Sociologists study information systems with an eye to understanding A) how systems affect individuals, groups, and organizations.

B) how human decision makers perceive and use formal information.

C) how new information systems change the control and cost structures within the firm.

D) the production of digital goods.

4 ) Which main business function is responsible for maintaining employee records? A) sales and marketing B) human resources

C) finance and accounting D) manufacturing and production

5) Producing bills of materials is a business process within the ________ function. A) finance and accounting B) human resources C) manufacturing and production D) sales and marketing

6) Which systems are typically a major source of data for other systems? A) transaction processing systems B) management information systems C) executive support systems D) decision-support systems

7) Decisions that are unique, rapidly changing, and not easily specified in advance are best suited to which type of system? A) MIS B) TPS C) ESS D) DSS

8) Which type of system would you use to determine the five suppliers with the worst record in delivering goods on time? A) ESS B) TPS C) MIS D) DSS

9) The four major enterprise applications are A) SCMs, CRMs, DSSs, and KMSs. B) SCMs, CRMs, ESSs, and KMSs.

C) enterprise systems, SCMs, DSSs, and CRMs. D) enterprise systems, SCMs, CRMs, and KMSs.

10) The greatest difficulty of bringing about organizational change – especially the development of new information systems is:

A) computerizing manual systems. B) recruiting qualified employees.

C) political resistance. D)perceiving environmental change.

11) The costs incurred when a firm buys on the marketplace what it cannot make itself are referred to as: A) switching costs. B) transaction costs. C) procurement. D) agency costs.

12) The value chain model

A) categorizes five related advantages for adding value to a firm's products or services.

B) sees the supply chain as the primary activity for adding value.

C) categorizes four basic strategies a firm can use to enhance its value chain.

D) helps a firm identify points at which information technology can most effectively enhance its competitive position.

13) A virtual company

A) uses the capabilities of other companies without being physically tied to those companies.

B) uses Internet technology to maintain a virtual storefront.

C) uses Internet technology to maintain a networked community of users. D) provides entirely Internet-driven services, or virtual products.

14) A client computer networked to a server computer, with processing split between the two types of machines, is called a(n): A) service-oriented architecture. B) on-demand architecture.

C) multi-tiered client/server architecture. D) two-tiered client/server architecture.

15) The process of presenting a set of computing resources (such as computing power or data storage) so that they can all be accessed in ways that are not restricted by physical configuration or geographic location is called A) cloud computing. B) autonomic computing. C) virtualization. D) multicore processing.

16) SaaS refers to

A) supplying online access over networks to storage devices and storage area network technology.

B) managing combinations of applications, networks, systems, storage, and security as well as providing Web site and systems performance monitoring to subscribers over the Internet.

C) hosting and managing access to software applications delivered over the Internet to clients on a subscription basis. D) none of the above.

17) Which model can be used to analyze the direct and indirect costs to help firms

determine the actual cost of specific technology implementations? A) total cost of ownership B) return on investment C) breakeven point D) cost benefit analysis

18) ________ software is built around thousands of predefined business processes from all functional areas. A) Process management B) PRM C) ERP D) CRM

19) In order to achieve maximum benefit from an enterprise software package, a business

A) customizes the software to match all of its business processes.

B) uses only the processes in the software that match its own processes. C) changes the way it works to match the software's business processes.

D) selects only the software that best matches its existing business processes.

20) A distortion of information about the demand for a product as it passes from one entity to the next across the supply chain is called the ________ effect. A) replenishment B) bullwhip C) ripple D) exponential

21) Companies with effective supply chain management systems can expect A) improved customer service and responsiveness. B) cost reduction. C) reduced inventory levels. D) all of the above.

22) Customer relationship management systems typically provide software and online tools for sales, customer service, and A) marketing. B) account management. C) advertising. D) public relations.

23) Which of the following statements about business process reengineering is NOT true?

A) It is primarily an ongoing effort by a firm that continually readjusts and measures the effectiveness of new procedures.

B) It typically focuses on one or two strategic business processes that need radical change.

C) BPR projects tend to be expensive and organizationally disruptive.

D) To judge effectiveness, the performance of a business process should be measured both before and after reengineering.

24) Which process develops a detailed description of the functions that a new information system must perform? A) feasibility study B) requirements analysis

C) systems design D) test plan development

25) Systems design:

A) describes what a system should do to meet information requirements. B) shows how the new system will fulfill the information requirements. C) identifies which users need what information, where, when and how. D) is concerned with the logical view of the system solution.

26) In a parallel conversion strategy, the new system A) is tested by an outsourced company.

B) replaces the old one at an appointed time. C) and the old are run together. D) is introduced in stages.

27) The primary tool for representing a system's component processes and the flow of data between them is the A) data dictionary. B) process specifications diagram. C) user documentation. D) data flow diagram.

28) You have been hired by a pharmaceutical company to evaluate its inventory of systems and IT projects. Which types of projects would be best avoided? A) any high risk projects B) any low-benefit projects

C) all high-risk, low benefit projects D) none, any project might be beneficial.

29) The level of a project's risk is influenced primarily by

A) project size, project structure, and the level of technical expertise. B) project cost, project scope, and the implementation plan. C) project scope, project schedule, and project budget.

D) project size, project scope, and the level of technical expertise.

30) Which of the following is NOT a responsibility of effective change management? A) integrating legacy systems

B) dealing with fear and anxiety about new systems C) training users of the new system

D) enforcing user participation at all stages of system development

3 Fill in the Blanks (use the exact words to fill in the missing information and answer question on Answer Sheet, 10 questions, 20scores in total)

1) In a(n) ________ perspective, the performance of a system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained.

2) A(n) ________ is composed of interrelated components working together to

collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.

3) ________ systems span the entire firm, integrating information from multiple functions and business processes to enhance the performance of the organization as a whole.

4) ________ designates the use of the Internet and digital technology to execute all of the activities in the enterprise.

5) The ________ highlights the primary or support activities that add a margin of value to a firm's products or services where information systems can best be applied to achieve a competitive advantage.

6) ________ takes place when a firm contracts custom software development or maintenance of existing legacy programs to outside firms.

7) The ________ is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers.

8) ________ are the most successful solutions or problem-solving methods for consistently and effectively achieving a business objective.

9) ________ is the process of building an experimental system quickly and cheaply for demonstration and evaluation.

10) When all organizational activities work toward the adoption, management, and routinization of an innovation, the process is called ________.

4 Essay Questions (answer the following question in English or Chinese on Answer Sheet, 3 questions, 8 scores each item, 24 scores in total)

1) Identify and discuss the four major types of information systems that serve the three main management groups within a business.

2) List and describe four competitive strategies enabled by information systems that firms can pursue.

3) Describe the activities for systems analysis

5 Case Reading Questions (after reading case, answer the following question in English or Chinese on Answer Sheet, 2 questions, 16scores in total)

UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY United Parcel Service (UPS), the world‘s largest air and ground package

distribution company, started out in 1907 in a closet-sized basement office. Jim Casey and Claude Ryan—two teenagers from Seattle with two bicycles and one phone— promised the ―best service and lowest rates.‖ UPS has used this formula successfully

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for more than 90 years and is now the world‘s largest ground and air

package-distribution company. Today UPS delivers more than 13.6 million parcels and documents each day in the United States and more than 200 other countries and territories.

The firm has been able to maintain leadership in small-package delivery services despite stiff competition from FedEx and Airborne Express by investing heavily in advanced information technology. During the past decade, UPS has poured billions of dollars into technology and systems to boost customer service while keeping costs low and streamlining its overall operations.

Using a handheld computer called a Delivery Information Acquisition Device (DIAD), a UPS driver can automatically capture customers‘ signatures along with pickup, delivery, and time-card information. The driver then places the DIAD into the UPS truck‘s vehicle adapter, an information-transmitting device that is connected to the cellular telephone network. Package tracking information is then transmitted to UPS‘s computer network for storage and processing in UPS‘s main computers in Mahwah, New Jersey, and Alpharetta, Georgia. From there, the information can be accessed worldwide to provide proof of delivery to customers or to respond to customer queries.

Through its automated package tracking system, UPS can monitor packages throughout the delivery process. At various points along the route from sender to receiver, bar-code devices scan shipping information on the package label; the information is then fed into the central computer. Customer service representatives can check the status of any package from desktop computers linked to the central computers and are able to respond immediately to inquiries from customers. UPS customers can also access this information from the company‘s Web site using their own computers or wireless devices such as pagers and cell phones.

Anyone with a package to ship can access the UPS Web site to track packages, check delivery routes, calculate shipping rates, determine time in transit, and schedule a pickup. Businesses anywhere can use the Web site to arrange UPS shipments and bill the shipments to the company‘s UPS account number or to a credit card.

The data collected at the UPS Web site are transmitted to the UPS central

computer and then back to the customer after processing. UPS also provides tools that enable customers such Cisco Systems to embed UPS functions, such as tracking and cost calculations, into their own Web sites so that they can track shipments without visiting the UPS site.

A capability called UPS Campus Ship allows employees in multiple offices of a business to process and ship from their computers and has shipping procedures controlled by a central administrator set up by the business. Morris, Schneider and Prior LLC, a top law firm serving the financial services industry, uses this capability to track and control shipping costs. This firm is constantly sending time-sensitive documents from three different locations to clients throughout the United States.

UPS tools automate the allocation and reporting of this firm‘s shipping costs and even itemize and detail shipping expenses for each client. Information technology helps UPS reinvent itself and keep growing.

UPS is now leveraging its decades of expertise managing its own global delivery network to manage logistics and supply chain management for other companies. It created a UPS Supply Chain Solutions division that provides a complete bundle of standardized services to subscribing companies at a fraction of what it would cost to build their own systems and infrastructure. These services include supply chain design and management, freight forwarding, customs brokerage, mail services, multimodal transportation, and financial services, in addition to logistics services.

Birkenstock Footprint Sandals is one of many companies benefiting from these services. Birkenstock‘s German plants pack shoes in crates that are bar coded with their U.S. destination. UPS contracts with ocean carriers in Rotterdam to transport the shoe crates across the Atlantic to New Jersey ports instead of routing them through the Panama Canal to Birkenstock‘s California warehouses.

UPS trucks whisk each incoming shipment to a UPS distribution hub and, within hours, to 3,000 different retailers. By handing this work over to UPS, Birkenstock has cut the time to get its shoes to stores by half. Along the way, UPS uses barcode

scanning to keep track of every shipment until the merchant signs off on it. UPS also handles Internet orders for Jockey International, laptop repairs for Toshiba America, and X-ray machine installation in Europe for Philips Medical Systems. Question：

1) What are the inputs, processing, and outputs of UPS‘s package tracking system? (6‘)

2) How do UPS‘s systems provide value for the company and its customers? (10‘)

Reference Answer of Sample

华南农业大学期末考试试卷参考答案（A卷）

2012--2013学年第2学期 考试科目： 管理信息系统 考试类型：（闭卷）考试 考试时间： 120 分钟 1 True-False Questions (10 questions, 10 scores in total) 1 2 3 4 5 6 7 8 9 10 F F T F T F T F T T

2 Multiple-Choice Questions (30 questions, 30 scores in total) 1 2 3 4 5 6 7 8 9 10 A A A B C A D C D C 11 12 13 14 15 16 17 18 19 20 B D A D A C A C C B 21 22 23 24 25 26 27 28 29 30 D A A B B C D C A A

3 Fill in the Blanks (10 questions, 20scores in total)

1) sociotechnical 2) information systems 3) Enterprise resources planning 4) Electronic business 5) value chain model 6) Outsourcing 7) supply chain 8) Best practices 9) Prototyping 10) implementation

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Reference Answer of Case in Chapter01

UPS Competes Globally with Information Technology

1. What are the inputs, processing, and outputs of UPS’s package tracking system?

Answer: Inputs: The inputs include package information, customer signature, pickup, delivery, time-card data, current location (while en route), and billing and customer clearance documentation.

Processing: The data are transmitted to a central computer and stored for retrieval. Data are also reorganized so that they can be tracked by customer account, date, driver, and other criteria.

Outputs: The outputs include pickup and delivery times, location while en route, and package recipient. The outputs also include various reports, such as all packages for a specific account or a specific driver or route, as well as summary reports for management.

2.What technologies are used by UPS? How are these technologies related to UPS’s business strategy?

Answer: Technologies include handheld computers (DIADs), barcode scanning systems, wired and wireless communications networks, desktop computers, UPS‘s central computer (large mainframe computers), and storage technology for the package delivery data. UPS also uses telecommunication technologies for

transmitting data through pagers and cellular phone networks. The company uses in-house software for tracking packages, calculating fees, maintaining customer

accounts and managing logistics, as well as software to access the World Wide Web. UPS has used the same strategy for over 90 years. Its strategy is to provide the ―best service and lowest rates.‖ One of the most visible aspects of technology is the customer‘s ability to track his/her package via the UPS Web site. However,

technology also enables data to seamlessly flow throughout UPS and helps streamline the workflow at UPS. Thus, the technology described in the scenario enables UPS to be more competitive, efficient, and profitable. The result is an information system solution to the business challenge of providing a high level service with low prices in the face of mounting competition.

3. What problems do UPS’s information systems solve? What would happen if these systems were not available?

Answer: Some problems this information system solves relate directly to logistics and supply chain activities, not just for itself, but also for other companies. These services include supply chain design and management, freight forwarding, customs brokerage, mail services, multimodal transportation, and financial services, in addition to logistics services. Because of the advanced integration of its technology, UPS can provide these services cheaper and more efficient than most companies can create

them in-house.

Arguably, UPS might not be able to compete effectively without technology. If the technology were not available, then UPS would, as it has through most of its history, attempt to provide that information to its customers, but at higher prices. From the customers‘ perspective, these technologies provide value because they help customers complete their tasks more efficiently. Customers view UPS‘s technology as value-added services as opposed to increasing the cost of sending packages.

Reference Answer of Case in Chapter02

Air Canada Takes Off with Maintenix

1. What problems does Air Canada hope that Maintenix will solve?

Answer: Air Canada‘s old legacy systems were not able to interact with one another or with the finance and inventory systems. The inefficiencies of these systems were costing the airline engineers‘ time and money that could have been used on maintaining planes.

2. How does Maintenix improve operational efficiency and decision-making? Answer: The Maintenix information system provides integrated, intelligent aviation maintenance, repair, and operations software. That leads the way to enhanced visibility of fleet-wide data, timelier decision making, support of Air Canada‘s

existing business model, and increased operational efficiencies. The Maintenix system is accessible via the Web and easy to deploy to all stations around the world. It reduces repetitive tasks and time chasing missing or incomplete information by

allowing maintenance, engineering, and finance divisions to easily share information. Wireless deployment also makes Maintenix more effective, since aviation technicians, equipment, and parts are always on the move.

3. Give examples of three decisions supported by the Maintenix system. What information do the Maintenix modules provide to support each of these decisions?

Answer: Three decisions supported by the Maintenix system may include:

? Is Part A compatible with Part B? The maintenance engineering module

establishes the configuration hierarchy, rules, and maintenance program that all of the other modules depend upon. A company uses this module to

describe machinery components, part relationships and compatibility rules. ? Is a qualified technician located on site to perform necessary maintenance?

The line maintenance module matches a dynamic list of maintenance work requirements against finite resources at various locations. The module allows a company to ensure that qualified technicians are available before they

schedule maintenance.

? Are the right parts, in the right quantity, available on site for maintenance?

The materials management module ensures the minimum amount of each part is always in inventory without causing engineers to be short on parts at any time.

Reference Answer of Case in Chapter03

Can Detroit Make the Cars Customers Want?

1. Why is AutoNation having a problem with its inventory?

Answer: AutoNation is fighting an entrenched tradition that dates back to the

beginning of the auto industry. The entire industry is geared towards optimizing the factory and production processes to meet the needs of the industry instead of

customers. They never had to worry much about new market entrants, substitute products, or even customer intimacy. That mindset needs to change because the Internet has empowered customers and given them access to all kinds of information not previously available. AutoNation understands the necessity of changing business strategies but will the Big Three (GM, Ford, and Chrysler) get it? AutoNation is battling a hundred years of tradition.

Why is this also a problem for auto manufacturers such as GM, Ford, and Chrysler?

Answer: In the 1980s, new market entrants from foreign companies, Toyota, Nissan, Mitsubishi, began exerting pressure on the Big Three U.S. manufacturers. The

Internet helped customers begin exerting their influence through access to information. The Big Three are now having to change their business strategies, albeit very slowly. How is this problem impacting the business performance of AutoNation and of the auto manufacturers?

Answer: The increasing influence being exerted by the two competitive forces—new market entrants and customers—is pressuring AutoNation and manufacturers to alter their business strategies. AutoNation must develop ways to strengthen its customer intimacy in order to remain competitive. Manufacturers need to change their focus from employees to customers.

2. What pieces of data do AutoNation need to determine what cars to stock in each of its dealerships?

Answer: AutoNation has begun focusing on the customer by collecting marketing data and implementing mass customization techniques for its direct mail campaigns. It needs to collect demographic data like income levels, ages, occupations, family configurations, and recreational interests of its customers to understand the types of vehicles people are most likely to buy. With the oil crisis of 2008 causing gasoline

prices to rise above $4 a gallon, it may be helpful for AutoNation to collect external data about driving habits.

How can it obtain these data?

Answer: AutoNation can use its own marketing databases and data from its Web site coupled with external databases from the U.S. Census Bureau, local Chambers of Commerce, industry-specific research, and national retail organizations. By marrying internal and external data it can obtain a consolidated view of customers configured for each locale in which it does business.

3. What is AutoNation’s solution to its problem?

Answer: AutoNation is already gathering much of the data it needs and using data mining techniques to obtain information it can share with manufacturers to increase its customer intimacy. By jointly applying the data results, both AutoNation and the manufacturers can build products that satisfy customer needs and wants. What obstacles must AutoNation overcome to implement its solution?

Answer: AutoNation must work with manufacturers to change the focus from

optimizing production processes towards factories and workers to one of benefiting customers. AutoNation‘s attempts to integrate customer data with auto manufacturing processes flies in the face of a hundred years of tradition.

AutoNation must also change entrenched attitudes prevalent with auto executives, as shown by LaNeve‘s lack of concern about inventory levels and his impression that the industry is not in crisis. It is!

How effective will the solution be?

Answer: Answers will vary but should incorporate elements of Porter’s Competitive Forces Model.

Reference Answer of Case in Chapter05

Salesforce.com: Software-as-a-Service goes Mainstream

1. What are the advantages and disadvantages of the software-as-a-service model?

Answer: Advantages:

? Eliminates need for large upfront capital investments in systems ? Eliminates lengthy implementations on corporate computers

? Low-cost subscriptions; no expensive licensing and maintenance fees ? No hardware for subscribers to purchase, scale, and maintain

? No operating systems, database servers or applications servers to install ? No consultants and staff

? Accessible via standard Web browser with behind-the-scene software updates

? Better scalability, eliminate cost and complexity of managing multiple layers of hardware and software Disadvantages:

? The audience for the App Exchange application platform may not be large enough to deliver the level of growth Salesforce wants

? The platform may not be attractive to larger companies for their application needs

2. What are some of the challenges facing Salesforce as it continues its growth? How well will it be able to meet those challenges? Answer: Challenges include:

? Increased competition both from traditional industry leaders and new challengers hoping to replicate Salesforce‘s success ? Expanding its business model into other areas

? Ensuring the system is available 24/7 with no outages

Salesforce is answering the first two challenges by partnering with Google and

combining its services with Gmail, Google Docs, Google Talk, and Google Calendar to allow its customers to accomplish more tasks via the Web. Salesforce.com and Google both hope that their Salesforce.com for Google Apps initiative will galvanize further growth in on-demand software. Salesforce opened up its Force.com

application development platform to other independent software developers and listed their programs on its AppExchange. Small businesses can go online and download software applications, some add-ons to Salesforce.com and others that are unrelated.

To ensure system availability, Salesforce.com provides tools to assure customers about its system reliability and also offers PC applications that tie into their services so users can work offline.

3. What kinds of businesses could benefit from switching to Salesforce and why? Answer: Small to medium-size businesses are probably the most likely ones to switch to Salesforce.com because of cost factors and the lack of having in-house resources to provide the same level of computing capacity. Businesses that are trying to increase the sophistication of their computing capabilities could also benefit from switching to Salesforce as long as the two are compatible. Businesses that rely on smart customer management would benefit greatly from using the tools available at Salesforce.com. Also companies that have small sales and marketing teams can benefit from the software-as-a-service business model.

4. What factors would you take into account in deciding whether to use Salesforce.com for your business?

Answer: Businesses should assess the costs and benefits of the service, weighing all people, organization, and technology issues. Does the software-as-a-service

applications integrate well with the existing systems? Does it deliver a level of service and performance that‘s acceptable for the business? Does the SaaS fit with the

business‘s overall competitive strategy and allow the company to focus on core business issues instead of technology challenges?

Reference Answer of Case in Chapter09

Customer Relationship Management

Helps Chase Card Services Manage Customer Calls

1. What functions of customer relationship management systems are illustrated in this case?

Answer: CRM systems capture and integrate customer data from all over the

organization, consolidate the data, analyze the data, and then distribute the results to various systems and customer touch points across the enterprise. A well-designed CRM system provides a single enterprise view of customers that‘s useful for improving both sales and customer service. It likewise provides customers with a single view of the company regardless of what touch point the customer uses.

Functions illustrated in this case are customer service and call center support.

Customer service modules in CRM systems provide information and tools to increase the efficiency of call centers, help desks, and customer support staff. They have capabilities for assigning and managing customer service requests. Improved access to consistent and accurate customer information help call centers handle more calls per day and decrease the duration of each call. Call centers and customer service groups achieve greater productivity, reduced transaction time, and higher quality of service at lower costs.

2. Why is the call center so important for Chase Card Services? How could Chase’s call centers help it improve relationships with customers?

Answer: As one of the largest credit card issuers in the U.S., Chase Card Services has 6,000 call center agents worldwide at the company‘s 11 call centers, fielding up to 120 calls per day. The company handles slightly less than 200 million calls each year from a customer base of 100 million. Even a small reduction of 1% to the amount of calls received results in savings of millions of dollars and improved customer service for Chase.

Customers who are able to resolve problems quickly and efficiently are much happier because they spend less time on the phone restating their problems to customer

service representatives. Customers are more likely to continue doing business with the company and even increase the amount of business they do with the organization.

3. Describe the problem at Chase call centers. What management, organization, or technology factors contributed to the problem?

Answer: Chase Card Services wanted to improve first-call resolution. First-call

resolution is when a call center agent is able to resolve a customer‘s issues during the initial call to customer service without requiring additional calls.

Management: Chase had previously tried tracking first-call resolution rates by having agents log the content and results of each call they received. The task was

time-consuming and not standardized. Agents tended to record results subjectively and not in a uniform way.

Organization: Company policies for some customer requests were far from ideal for increasing first-call resolution. Agents were only able to process balance transfers for customers calling from their homes. The fee structure underwent multiple changes over a short span, prompting repeat calls.

Technology: The company‘s record keeping did not give an accurate account of current rates of first-call resolution.

4. How did using Enkata improve operational performance and decision making? Give examples.

Answer: By separating and organizing reasons for calling into distinct categories, Chase is able to determine criteria for declaring particular calls ?resolved.‘ Chase has much more accurate data on first-call resolution. Enkata compiles the data and distributes it to Chase Card Services in the form of weekly reports on call type and length, call handling times, repeat call rates, and other performance measures that allow both agents and supervisors to monitor their performance. Managers have been able to increase and improve coaching and evaluating agents based on the data from Enkata.

First-call resolution rates improved 3% to 91% the first year after implementation of the Enkata system. The company saved $8 million. Approximately $2.5 million of that total savings was a direct result of the average call time decreasing by two seconds.

5. What management, organization, or technology factors would have to be considered in implementing the Enkata solution?

Answer: Management: The company would have to design a new strategic

transformation plan. Employees must accept new job functions and responsibilities. They must learn how to perform a new set of work activities and understand how the information they enter into the system can affect other parts of the company.

Managers must understand the long-term implications of switching costs once they adopt a particular enterprise application.

Organization: Adopt best-practice processes and map organizational business processes to the predefined business processes in the software. Use configuration tables provided by the software to tailor a particular aspect of the system to the way the organization does business. Because enterprise applications are based on

organization-wide definitions of data, the company must understand how it uses its data and how the data will be organized in the CRM system.

Technology: Enterprise software is unusually complex. Extensive customization may degrade system performance, compromising information and process integration. While an organization can rewrite some of the software to support the way its

business processes work, it‘s usually better to change the way the organization works to conform to the business processes in the software.

Reference Answer of Case in Chapter13

Did Chrysler Make the Right Outsourcing Decision?

1. What management, organization, and technology issues should Chrysler have explored when deciding whether to outsource to TCS? Answer:

Management: Managers and executives must evaluate all the risks associated with offshore outsourcing and make sure outsourcing is the best answer. Managers must understand the additional costs for coping with cultural differences that drain

productivity. They must deal with human resources issues – terminating or relocating domestic employees.

Organization: Does TCS possess skills, resources, and assets that Chrysler doesn‘t have on its staff? Personnel costs obviously drove much of Chrysler‘s decision to outsource its IT staff. Annual compensation for a cost estimator in the U.S. is around $70,000 to $80,000 per year versus a third to half of that for the same employee working in a foreign country.

Technology: Costs for transitioning to a new vendor and for improving internal software development methods to match those of outsourcing vendors are often underestimated. Chrysler‘s management determined that the company was spending too much of its IT budget on core maintenance of systems and not enough in reinvesting in the business.

2. What points should Chrysler have addressed in its outsourcing contract with TCS?

Answer: Chrysler must address the following points in its outsourcing contract: ? Who will be responsible for various components of the transition? ? How will the vendor be monitored to make sure they are fulfilling their contractual obligations?

? How will system requirements be documented and agreed upon by both sides? ? What are the time lines for fully transferring work to TCS from Chrysler‘s IT staff?

? Which Chrysler employees will be retained by TCS, how will they be compensated, and who will have supervisory responsibility for them?

? What exit strategy will Chrysler and TCS use if the contract is later terminated?

3. Was Tata Consultancy Services a good outsourcing choice for Chrysler? Why or why not? Explain your answer.

Answer: On the positive side, TCS will leverage its Global Network Delivery Model, a collaborative best-of-class framework of people, processes, and infrastructure that uses TCS‘s tools, methodologies, and products to help Chrysler reduce

implementation time and realize business benefits. The Global Network Delivery Model is considered a benchmark of excellence in software development. Chrysler will also be able to shed about 20 percent of its full-time employees and save all of the associated costs of these employees. And, Jan Bertsch, Chrysler vice president and CIO asserts that the change will improve the company‘s IT operations. Management determined that the company was spending too much of its IT budget on core maintenance of systems and not enough in reinvesting in the business.

On the negative side, Tata Consultancy Services is owned by Tata Motors, a company that will compete in India – and potentially other parts of the world – with Chrysler. Tata will take over Chrysler‘s application maintenance and support services,

particularly for Chrysler‘s sales, marketing, product development, shared services, and after sales functions. It‘s a very dicey move to hire your competition to manage many of your core activities.

Reference Answer of Case in Chapter14

Kaiser Permanente Botches Its Kidney Transplant Center Project

1. Classify and describe the problems Kaiser faced in setting up the transplant center. What was the role of information systems and information management in these problems?

Answer: Kaiser‘s problems can be classified into the following groups:

Record maintenance: lost track of records when they were transferred to new transplant center; records had incomplete or incorrect data; records were stored primarily on paper.

Database management: no comprehensive transplant patient master list or database; no IT professionals assigned to maintain the complicated databases.

Procedures/processes: no specific procedures for transferring data; no attempt to identify and define processes required to ensure a smooth transition.

People/management: employees were overworked, logging 10-to-16 hour days; management did not accurately anticipate personnel requirements; staff lacked

guidance and training regarding job requirements; employees lacked prior experience with transplant programs; there was no executive governance to identify and correct procedural problems.

2. What were the management, organization, and technology factors responsible for those problems?

Answer: Management: failed to adequately plan for a new business project; no

executive governance to identify and correct procedural problems; failed to anticipate personnel requirements causing employees to work 10-to-16 hour days.

Organization: failed to give patients credit for time spent on waiting lists at other hospitals; dropping patients who had waited the longest down to the bottom of the list; lost track of records; no systematic processes for tracking or responding to patient complaints or requests; patients were unable to correct inaccurate information. Technology: incomplete or incorrect data; records stored primarily on paper even though Kaiser had longtime experience with electronic medical record management systems; no IT professionals assigned to database maintenance; no specific procedures for transferring data.

3. What steps would you have taken to increase the project’s changes for success?

Answer: Kaiser management should have treated this project as a business project from the outset. It should have ensured it met the five major project management variables: scope, time, cost, quality, and risk. It does not appear as though Kaiser management used adequate knowledge, skills, tools, and techniques to plan the work, assess risks, estimate requirements necessary to accomplish the work, organize the work, acquire appropriate human and material resources, assign tasks, direct activities, control project execution, report progress, and analyze the results. In short, it doesn‘t appear as though Kaiser used any project management techniques at all in this project.

4. Were there any ethical problems created by this failed project? Explain your answer.

Answer: Kaiser had an ethical responsibility to ensure system quality and risk was adequately managed throughout the project. It apparently failed to do so. IT

mismanagement can cost individuals their lives and in Kaiser‘s case many plaintiffs seeking damages against the company believe the errors surrounding the transplant center have done just that. There was no executive governance to identify and correct problems. Kaiser failed to adhere to state and federal regulations.

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