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The Apply Your Knowledge contains mini-cases. Each case describes a situation, explains
your role in the case, and asks you to respond to questions.
1 Low-Voltage Components
Situation:
You are the IT manager at Low-Voltage Components, a medium-sized firm that makes
specialized circuit boards. Low-Voltages largest customer, TX Industries, recently installed a
computerized purchasing system. If Low-Voltage connects to the TX system, TX will be able
to submit purchase orders electronically. Although Low-Voltage has a computerized
accounting system, that system is not capable of handling EDI (Electronic Data Interchange).
1. Should Low-Voltage develop a system to connect with TX Industries purchasing
system? Why or why not?
2. What terms or concepts describe the proposed computer-to-computer relationship
between Low-Voltage and TX Industries?
3. Is Low-Voltages proposed new system a transaction processing system? Why or
why not?
4. Before Low-Voltage makes a final decision, should the company consider an ERP
(Enterprise Resource Planning) system? Why or why not?
3 MultiTech Interview
Situation:
You have an interview for an IT position with MultiTech, a large telecommunications
company, and you want to learn more about the firm and its organizational structure. To
prepare for the interview, you decide to review your knowledge about corporations, including
the following questions:
1. What are the four organizational levels in a typical company?
2. How can you classify companies based on their mix of products and services?
3. What is empowerment?
4. What types of information systems might a large company use?