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BM/JAN 201 2/M GT4I 71CSC2661270

UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE: INFORMATION TECHNOLOGY IN BUSINESS I
COMPUTER APPLICATION IN BUSINESS
COURSE CODE : MGT4I7/CSC266/270
EXAMINATION : JANUARY 2012
TIME : 3 HOURS
INSTRUCTIONS TO CANDIDATES
1. Th i s q u e s t i o n p a p e r c o n s i s t s o f t w o ( 2) p a r t s : P ART A ( 7 Q u e s t i o n s )
P ART B ( Ca s e St u dy 1: 3 Q u e s t i o n s )
( Ca s e St u dy 2 : 2 Q u e s t i o n s )
2

An s w e r a n y s i x ( 6) q u e s t i o n s f r o m P ART A a n d a ll q u e s t i o n s f r o m P ART B i n t h e An s w e r
B o o k le t . St a r t e a c h a n s w e r o n a n e w p a g e .
3

Do n o t br i n g a n y ma t e r i a l i n t o t h e e xa mi n a t i o n r o o m u n le s s p e r mi s s i o n i s g i ve n by t h e
i n vi g i la t o r .
4

P le a s e c h e c k t o ma k e s u r e t h a t t h i s e xa mi n a t i o n p a c k c o n s i s t s o f
i ) t h e Q u e s t i o n P a p e r
i i ) a n An s w e r B o o k le t - p r o vi de d by t h e Fa c u lt y
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 6 printed pages
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2 BM/JAN 20121MGT4171CSC2661270
PART A
QUESTION I
Define information system and describe any four (4) basic components of information
system.
(10 marks)
QUESTION 2
Explain with examples the following organizational information systems:
a) Transaction Processing System (TPS)
b) Management Information System (MIS)
C)Expert System (ES)
(10 marks)
QUESTION 3
Discuss five (5) difficulties of managing data in an organization.
(10 marks)
QUESTION 4
Differentiate among the Internet, intranet and extranet.
(10 marks)
QUESTION 5
Define E-commerce and describe three (3) benefits of E-commerce.
(10 marks)
QUESTION 6
Define Customer Relationship Management (CRM) and discuss two (2) major areas of
application that are provided by CRM systems.
(10 marks)
QUESTION 7
Describe two (2) characteristics in each three basic types of telecommunications satellites.
(10 marks)
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PART B
CASE STUDY I
NETWORK SHARING
The phrase "two is better than one" has never rung truer in the tightly contested
telecommunications industry. Early June was marked by a game changing move by two
major players, Celcom and DIG1, as they signed a groundbreaking Memorandum of
Understanding (M0U) to explore the benefits of such a partnership.
The practice of such collaboration is not uncommon in mature telecommunications markets
around the globe. An example of this would be the United Kingdom's 1-Mobile and 3
embarking on such a venture, driven by the many competitive advantages offered by
network sharing.
Although seemingly counter-productive sounding in nature, the practice of sharing network
infrastructure with a close competitor actually opens the doors for a whole range of benefits
that both parties, as well as their subscriber base, can look forward to enjoying.
Parties that engage in network sharing seek to benefit from significant OPEX (operating
expenditure) and CAPEX (capital expenditure) savings, which will organically progress to
higher margins, as well as sustaining bottom line growth. This is especially enticing as
bottom line growth has begun to taper off due to the saturating mobile phone market.
Nokia Siemens Networks research has shown that, depending on the different network
sharing methods, savings of up to 40% can be achieved by operators. The cost
effectiveness is derived from different avenues, but common solutions entail sharing base
station sites, towers, maintenance costs as well as seemingly simple costs such as
electricity bills.
The cost effective of a shared network can then be transferred to users by way of more
affordable fees. Or, the savings generated can be channeled and reinvested into ensuring
that the best and most efficient mobile services are provided. Either way it's a win-won for
consumers!
In mature markets operators are beginning to realize that their networks are no longer their
unique selling point and by consolidating their existing networks with other operators, they
can then endeavor to add value to their customers by providing more compelling services.
Local operators looking to roll out coverage to outlying areas can leverage the assets of a
shared network and allocate additional resources to expanding network coverage.
In line with Malaysia's plans of increasing broadband penetration to 50% by the end of this
year, network sharing has the ability to be a catalyst to drive rural mobile penetration,
especially in areas such as East Malaysia.
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Similar successful partnership have been initiated in Australia, where Optus and Vodafone
built their own networks in major cities but shared network infrastructure in rural and
suburban areas.
In addition to the obvious financial advantages of sharing network assets, such partnership
would also have a positive effect on the environment by lowering energy consumption.
With approximately 20,000 in Malaysia, base station sites substantially contribute to an
operator' s energy bill and are responsible for around 80% of carbon dioxide emissions in
the mobile network. Reducing the number and improving efficiency therefore presents a
two-fold benefit - first being the OPEX savings from a trimmer utilities bill and the second
being a reduction in Malaysia' s carbon footprint.
Source: Adapted from Network sharing: what it is and how it will change the face of the Malaysian
telecommunication industry. Business T oday, October 2010, 10(10), 50-51.
QUESTION I
Explain the main business reasons for using networks.
(4 marks)
QUESTION 2
Define wireless technology and describe any four (4) types of wireless devices.
(6 marks)
QUESTION 3
Identify any five (5) competitive advantages offered by network sharing.
(10 marks)
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CASE STUDY 2
IS AUTOMATION RIGHT FOR YOUR BUSINESS?
In general, the justification or business case for an automated system will be based on
comparing the automated option to one or more alternatives.
The alternative may be to just continue as is, however, where an operation has outgrown its
current facility; the comparison may be between moving now to a new manual site versus
automating the existing site to prolong its life. Where an operation has to move to a new site
in any case, the comparison may be between building a new manual site versus building a
new automated site.
An automated system will required significantly more initial investment than a manual
system however potential associated savings in building and land costs need to be taken
into account.
Automated systems also require much higher maintenance costs including preventative
maintenance, spare parts and breakdown support, which together can run to 5 10% of the
initial investment per annum.
The higher productivity associated with automated system leads to lower labour costs and
this is a key driver in determining the feasibility of the higher investment. The savings in
labour costs and this is a key driver in determining the feasibility of the higher investments.
The savings in labour costs are very much dependent on the labour rate and the throughput
of the system. The case for automation is much stronger for operations that run three shifts
in a high labour costs area.
In considering a labour rate for the business case evaluation, all associated costs including
overtime payments and management, recruitment and training costs should be included.
These can be substantial for large manual sites, especially where there is a scarcity of
labour and/ or a high turnover of staff.
In most cases, automated systems require a much smaller footprint than manual systems.
This may translate into direct cost savings from an immediate reduction in space usage or
alternatively, it may allow a building expansion or a transfer to a new facility to be deferred.
These savings should also be calculated and factored into the business case.
Finally, the business case for an automated system should consider not only the "hard"
numbers such as labour and building cost savings but also the "second order" benefits of a
safer, more ergonomic environment with improved delivery flexibility and response times.
Although sometimes difficult to quantify, these benefits include less lost time through injury,
increased staff retention rates and higher customer satisfaction which leads to increased
sales.
Source: Adapted from Is automation right for your business? Can it be justified? B usiness Today,
March 2011, 10( 3) , 40 - 41.
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QUESTION I
Identify five (5) main reasons that deter the decision of shifting from manual system to
automated system.
(10 marks)
QUESTION 2
There are many benefits that can be gained through an automated system. One of the
major advantages is cost savings. Identify five (5) sources of the savings.
(10 marks)
END OF QUESTION PAPER
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