L8-Q and as-Management Information Systems- June 2010 Dec 2010 and June 2011

8/18/2019 L8-Q and as-Management Information Systems- June 2010 Dec 2010 and June 2011

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ZAMBIA INSTITUTE OF CHARTERED ACCOUNTANTS

LICENTIATE LEVEL

L 8: Management Information SystemJune 2010

December 2010June 2011

QUESTION PAPERS AND SUGGESTED SOLUTIONS


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Table of ontents

JUNE 2010 MANAGEMENT INFORMATION SYSTEM ...................................... 3

SUGGESTED SOLUTIONS .............................................................. 7

DECEMBER 2010 MANAGEMENT INFORMATION SYSTEM .................................... 20

SUGGESTED SOLUTIONS AND KEY ........................................... 24

JUNE 2011 MANAGEMENT INFORMATION SYSTEM .................................... 39

SUGGESTED SOLUTIONS ............................................................ 43


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CHARTERED ACCOUNTANTS EXAMINATIONS

LICENTIATE LEVEL

L8: MANAGEMENT INFORMATION SYSTEM

SERIES: JUNE 2010

TOTAL MARKS – 100 TIME ALLOWED: THREE (3) HOURS

INSTRUCTIONS TO CANDIDATES

1. You have ten (10) minutes reading time. Use it to study the examination paper carefully sothat you understand what to do in each question. You will be told when to start writing.

2. There are SEVEN questions in this paper. You are required to attempt any FIVE questions. ALL questions carry equal marks.

3. Enter your student number and your National Registration Card number on the front of theanswer booklet. Your name must NOT appear anywhere on your answer booklet.

4. Do NOT write in pencil (except for graphs and diagrams).

5. The marks shown against the requirement(s) for each question should be taken as anindication of the expected length and depth of the answer.

6. All workings must be done in the answer booklet.

7. Present legible and tidy work.

8. Graph paper (if required) is provided at the end of the answer booklet.


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Question 1

(a) Detailed investigation of an existing system carried out in the development of new softwaresystems. Explain why this is a necessary prerequisite to designing a new system. (

(b) (i) List and describe any five methods of fact finding techniques available to the systemsanalyst. (10 marks)

(ii) As a system analyst, you have been asked to carry out an investigation of a certainexisting system of a financial institution in Lusaka’s business district. Concentratingparticularly on the existing procedures and volumetric detail.Describe an appropriate fact finding method you would use for this part of theinvestigation, giving three reasons for your choice (5 marks)

.Total: 20 marksQuestion 2

(a) As the percentage of consumers with personal computer increases, companies havebecome increasingly interested in using the internet to sell products directly to consumers,known as business to consumer B2C.(i) Briefly explain business to consumer B2C E-Commerce model (2 marks)(ii) Business to consumer (B2C) and other E-commerce model would not perform

efficiently without electronic payment system. Discuss any four electronic paymentsystems. (12 marks)

(b) Intranets are a valuable tool for helping groups to function efficiently within organisations.Briefly consider how intranets assist efficient working in

(i) EITHERHuman Resource Department ORManufacturing and Production department. (6 marks)

(ii) or manufacturing of production department.Total: 20 marks

Question 3

(a) The major reason for the existence and installation of an MIS is to produce information forManagers on three hierarchies of an organisation. With a well labelled diagram, explain the

three management levels for decision making. (9 marks)(b) During inter chief debate between Bemba and Ngoni chiefs, it was discovered that MIS can

be classified as performing three functions. In views of the above statement, explain thesethree functions. (6 marks)

(c) Computer networks are of different types, sizes and functions. Give a proper definition of apeer to peer network and explain one advantage and two disadvantages of this type ofnetwork. (5 marks)

Total: 20 marks


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Question 4

When systems design reaches its conclusion, a workable plan is put in place.

(a) Describe methods of system changeover that could be employed. (12 marks)

(b) List any four activities that should be included in the implementation plan after the analysisphase. (8 marks)

Total: 20 marks

Question 5

(a) Differentiate between operating system and application software giving one example foreach. (6 marks)

(b) Building a bespoke software application involves factors like money, time and effort. Thesefactors pose a great risk to an organisation.

(i) Explain two risks that are associated with building a bespoke software application (4marks)

(ii) Explain two ways in which these risks can either be minimized or overcome (4 marks)(c) Ethical issues concerning the use of computers on the internet have become paramount.

nations and organisations are striving to formulate strategies that will ensure that users ofthe internet use these facilities appropriately.Explain clearly the meaning of the following;

(i) Software piracy(ii) Cyber theft(iii) Hacking (6 marks)

Total: 20 marks

Question 6

(a) Information systems rely heavily on computer networks.(i) Describe what is meant by a client sever network (6 marks)

(ii) Give TWO advantages of a client server network. (4 marks)(iii) Give ONE disadvantages of a client server network. (2 marks)

(b) A client sever network may use either thick clients or thin clients. Explain how a fat clientdiffers from a thin client (4 marks)

(c) Draw a suitable topology for a client/server network. (4 marks)Total: 20 marks


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Question 7

a) Clearly explain the difference between:

(i) Database (DB)

(ii) Database management system (DBMS) (4 marks)

b) Explain two advantages and two disadvantages of Relational Database design (2 marks)

(c) (i) What software would accountants need from either Microsoft office 2003 or 2007 suiteto perform calculations and come up with different types of graphs. (2 marks)

(ii) Explain two advantages and one disadvantages of using the named software above.(6 marks)

Total: 20 Marks

END OF PAPER


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JUNE 2010

L8: MANAGEMENT INFORMATION SYSTEMS

SUGGESTED SOLUTIONS


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Solution 1

(a) Need to redefine Terms of reference

Determine existing systems data and procedures

Identify problem areas and propose suitable solutions

Determine users’ requirements

Determine whether some of the existing functionalities can be included in the new system.

There are five main fact finding techniques that are used by analyst to investigaterequirements.

(b) Background Reading: This answer is for part (ii) of Question 1 (b) on page 5.

Background reading helps the analyst to get an understanding of the organization before meetingthe people who work there. It also allows the analyst to prepare for the other types of fact findinge.g. being aware of the business objectives of the organization. Documentation on the existingsystem may provide formally defined information requirements for the current system

The kind of documents that are suitable sources of information include the following:

● Company reports

● Organizational chart

● Policy manuals

● Job descriptions

● Reports and documentation of existing systems.

Interviewing

A system analysis interview is a structured meeting between the analyst and an interviewer who isusually a member of staff of the organization being investigated. Personal contact allows theanalyst to be responsive and adapt to what the user is saying. It is why interviews produce qualityinformation.

The analyst can probe in greater depth about the person work than can be achieved with othermodels.

Observation

Observation can be an open ended process or it can be closed process in which the analystwishes t observe what happens and to note it down. Observation of people at work provides firstland experience of the way that the current system works. Data are collected in real time and havea high level of validity of care is taken in how the technique is used.


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Solution 2

(a) (i) Business to consumer (B2C) e-commerce involves retailing products and services toone or many consumers. B2C potential widens the market and at the same time

provides consumers more choice, a better and more informed shopping experienceand also greater exposure marketing and fraud.

(ii) Digital credit card payments(1) These extend the functionality of credit cards so they can be used for online

shopping payments. They make credit cards safer and more convenient foronline merchants and consumers by providing mechanisms for authenticating thepurchaser’s credit card to make sure that it is valid and arranging the bank thatissued the credit card to deposit money for the amount of the purchase in theseller’s account.

(2) Stored value payment systems These enable user to make instant online payments to merchants and otherindividuals based on the value stored in the digital account. On-line valuesystems rely on the value stored in the consumer’s bank, checking, or credit cardaccount and some of them require the use of a digital wallet.

(3) Accumulated balance digital payment systemThese enable users to make micropayments and purchase on the web,accumulating a debit balance that they must pay periodically on their credit card

or telephone bills.(4) Digital Cash (e-cash)

These are another payment system which can be used for smaller or largerpayments and uses digital currency represented in electronic form that movesoutside the normal network of money (paper, coins etc). users are supplied withclient software and can exchange money with another e-cash user over theinternet or with a retailer accepting e-cash.

(5) Digital Checking Digital checking systems such as e-check, extend the functionality of existing

checking accounts so that they can be used for on-line shopping payments.Digital checks are less expensive than credit cards and much faster thantraditional paper based checking. These checks are encrypted with a digitalsignature that can be verified and used for payment in electronic commerce.

(b) (i) Human ResourceThe human resource function often uses intranets for online publishing of corporatepolicy manuals, job postings and internal job transfers and training sessions.Employees can use an intranet to enroll in healthcare, employee savings and other


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benefits plans if the intranet is linked to the firms’ human resources or benefitsdatabase, or employees can use it to make online competence tests. Human resourcemanagers are able to deliver information about upcoming events or companydevelopments to employees rapidly using intranets. Or

(ii) Manufacturing and productionThe manufacturing function typically deals with issues that are highly complex,involving massive inventories, capturing and integrating real time data flows, changingrelationships with suppliers and volatile costs. Manufacturing information is often verydifficult to retrieve because files must be continuously updated. Developing intranetsthat can integrate manufacturing data under a uniform user interface is morecomplicated than in other functional areas. Intranets coordinating the flow ofinformation between controllers, inventory management systems and other

components of a production system make manufacturing information more accessibleto different parts of the organization, increasing precision and lowering costs.


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Solution 3

(a)

(b) (i) To generate reports-for example, financial statements, inventory status reports, orperformance reports needed for routine or non-routine purposes.

(ii) To answer what-if questions asked by management. For example, questions such as"What would happen to cash flow if the company changes its credit term for itscustomers?" can be answered by MIS. This type of MIS can be called Simulation.

(iii) To support decision making. This type of MIS is appropriately called Decision SupportSystem (DSS). DSS attempts to integrate the decision maker, the data base, and thequantitative models being used.

(c) (i) Peer-to-peer network operating systems allow users to share resources and files located ontheir computers and to access shared resources found on other computers. They donot have a file server or a centralized management source. In a peer-to-peer network,all computers are considered equal. They all have the same abilities to use theresources available on the network. Peer-to-peer networks are designed primarily forsmall to medium local area networks.

(ii) Advantages

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■ Less initial expense - No need for a dedicated server.

■ Setup - An operating system (such as Windows XP) already in place may onlyneed to be reconfigured for peer-to-peer operations.

(iii) Disadvantages

■ Decentralized - No central repository for files and applications.

■ Security - Does not provide the security available on a client/server network.


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Solution 4

(a) There are four methods of handling system installation. These are direct cutover, parallelinstallation, pilot (single location) installation and phased installation. Each method has itsown opportunities and problems it may cause.

(i) Immediate cutover/director cutover

The direct cutover method converts from the old system to the new system abruptly,sometimes over the weekend or overnight. The old system is used until a plannedconversion day, when it is replaced by the new system. There are no parallel activities.If the analyst must make the change and wants to ensure that the new system fullyreplaces the old system so that users do not rely on the old system, direct installationwill accomplish this goal.

Advantage

■ It forces all user to make the new system work, they do have any method systemto all back on

■ It is cheaper than most installation procedures.

Disadvantage

■ The advantages of no having a system to fall back on can be a disadvantage ifserious problems arise with the new system in situations where the conversion isstopped, users may not be fully confident that the system will be reliable, even ifthe problems that led to the stoppage have been corrected.

(ii) Parallel Installation

Under parallel installation the old system continues to run alongside the new systemuntil users and management are satisfied that the new system is effectively performingits duties and the old system can be turned off.

Advantage

■ All work done by the old system is done by the new system which helps determineand measure performance.

■ This method guarantees that should problems arise with the new system, theorganization can still fall back to the old system without loss of time and revenue

Disadvantage

■ The parallel installation costs double since there are two sets of systems costs e.g paying two sets of staff


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■ It also increases the chances of potential resistance to change if users prefer theold system.

■ A parallel installation might not be feasible if the users of the system (such as

customers) cannot tolerate redundant effort or he size of the system (number ofusers or extent of features) is too large.

(i) Pilot (single location) installation

Pilot installation involves changing from the current system to the new system in onlyone place or in a series of separate sites over time. The single place may be adepartment, a branch office or a single factory and the actual installation approach maybe any of the other approaches.

Advantage

■ The key advantage is that it limits potential damage and potential cost by limitingthe effects to a single site.

■ Success at the pilot site can be used to convince reluctant personnel at other sitesthat the new system can be worthwhile for them as well.

Disadvantage

■ Extra efforts by IS staff synchronize the current and new system.

■ Problems at a pilot site may spread to other sites before the system is installed at

other sites and this may introduce resistance even when the problems werecorrected.

(ii) Phased installation

Phased installation is an incremental approach, where the new system is broughtonline in functional components: different parts of the old and new system are sued incooperation until the whole new system installation.

Advantage

■ Like the pilot it attempts to limit the organization’s exposure to risk in terms ofcosts and disruption of business.

■ Can be used with the component based development which allows for somebenefits from the new system before the whole system is ready.

■ Disadvantage

■ Extra efforts by IS staff in creating bridge programs to connect the old and newsystem as they may need to share data.


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■ Problems in the early phases of installation may spread and user may expectdifficulties at the time of conversion and reach negatively to the smallest mistakeseven their own.

(b) Activities to be expected in the implementation plan clued:■ Continued analysis and design

■ Coding

■ Hardware and software acquisition

■ Testing (unit/mode/integrating/system/user acceptance testing)

■ Site preparation

■ Data/file conversion

■ Education/training

■ Documentation

■ Post/implementation review (8 marks)


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Solution 5

(a) ■ An operating system (OS) is software that acts as an interface between a user and thehardware. It does not only contain drivers used to speak the hardware's language, butalso offers a user a very specific graphical user interface (GUI) to control the computer. An OS can also act as an interface (from the hardware) to the other software.Examples of operating system are Microsoft Windows, UNIX, Apple Macintosh andLinux.

■ Application software (AS) is the software that a user installs onto an Operating System.It consists of the programs that actually let a user do things with their computer. These Applications are written to run under the various Operating Systems. Examples ofapplication software are word processing programs, spread sheets, email clients, webbrowser, games, etc.

(b) (i) The risks that are associated with building bespoke software are:■ Software does not meet user needs■ Software does not interact as intended with other systems■ Software is produced late■ Software is produced over budget (4 marks)

(ii) The risks can be minimized or overcome by:

■ Good project management■ Involving users at all stages of development■ Ensuring in-house IT staff are able to maintain and support bespoke systems

supplied from outside parties■ Ensuring the IT document includes details of all file structures required and details

of interfaces with other systems. (4 marks)

(c) (i) Software Piracy: Is unauthorized copying and distribution of software. Software isintellectual property which is protected by copyright law and user licensing agreements.

(ii) Cyber Theft: Involves unauthorized network entry and the fraudulent alteration of computerdatabases

(iii) Hacking: The obsessive use of computers, or the unauthorized access and use ofnetworked computer systems. (6 marks)


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Solution 6

(a) (i) A LAN based computing environment in which central computer (server) performs allcommands sent to from client workstations. The client workstations mostly concentrateon user interface functions including presenting data and the server is responsible forstorage and processing of client requests. In a client server (CS) network there are twotypes of node, server nodes and client nodes. Types of server include applicationserver, database /file servers, mail servers, print servers etc. in two tier architectures;one computer may perform all of these functions. A server waits for a request from aclient, processes these and servers relies. Client initiates all requests and waits for areply.

(ii) Allows for most processing to be performed close to the source of processed data,thereby improving responses times and reducing network traffic.

■ Better security as data is stored centrally

■ Easier software upgrades as software can be upgraded from server i.e. eachelement of CS network can be independently upgraded.

(iii) Server problems can affect all other nodes. Server overload if many clients sendrequests.

(b) A thin client depends on a central server for all activities. It only needs software to connectto the network and start a dedicated browser. A high processing power and a largeimmediate access store (IAS) are not required. It can utilize cheaper hardware and dumbterminals.

Fat client is a node with relatively strong processing abilities. Most of the applicationprocessing is by the client that only request data from the server. More expensive hardwareis required at client nodes.

A suitable topology for a local client server network would be either a star or bus topologyand the client and the server should be clearly labelled.


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Solution 7

(a). (i) Database (DB)

■ Shared collection of logically related data (and a description of this data), designedto meet the information needs of an organization.

■ System catalogue (metadata) provides description of data to enable program –dataindependence.

■ Logically related data comprises entities, attributes, and relationships of anorganization’s information.

(ii) Database Management System (DBMS)

■ A software system that enables users to define, create, and maintain the databaseand that provides controlled access to this database.

■ DBMS is software that facilitates the management of a database. (4 marks)

■ A relational database is perceived by user as a collection of tables for datastorage. Tables are a series of row/column intersections (a row corresponds to arecord, a column to a field)

(b) (i) Advantages

■ Structural independence

■ Improved conceptual simplicity

■ Easier database design, implementation, management, and use

■ Ad hoc query capability with SQL

■ Powerful database management system

(ii) Disadvantages■ Substantial hardware and system software overhead■ Poor design and implementation is made easy■ May promote “islands of information” problems (8 marks)■ Spreadsheets is suitable for calculations and numerical analysis (2 marks)

(c) (i) Advantages of spreadsheets include

■ It can perform what if functions with ease i.e. you just have to change the valuesin one cell and everything else will automatically get updated.

■ Inserting formulas is easy

■ The data put into the spreadsheet can be changed easily


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(ii) Disadvantages of spreadsheets include

■ Chances of badly designed/linked worksheet

■ No documentation of workings

■ Complexity macros

■ Lack of audit trails (6 marks)


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LICENTIATE LEVEL


SERIES: DECEMBER 2010


INSTRUCTIONS TO CANDIDATES1. You have ten (10) minutes reading time. Use it to study the examination paper carefully so

that you understand what to do in each question. You will be told when to start writing.



4. Do NOT write in pencil (except for graphs and diagrams).5. The marks shown against the requirement(s) for each question should be taken as an

indication of the expected length and depth of the answer.





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Question 1

(a) Computers can be classified into four (4) types; Personal Computers, Mid-range Computers,Mainframe Computers and Super Computers.

Briefly describe each of these types of computers. (12 marks)

(b) Explain the difference between parallel processing and sequential processing . (4 marks)

(c) Recently, there have been developments of a range of dual core (twin processors) chipswhich are replacing single processor chips.

What are the implications of these developments for software developers? (4 marks)

[Total: 20 marks]

Question 2

Security refers to the policies, procedures and technical measures used to prevent unauthorisedaccess, alteration, theft, or physical damage to information systems. Briefly;

(a) (i) Outline the possible consequences of a security breach. (4 marks)

(ii) Describe whyapplication controls are necessary. (6 marks)

(b) Administrative Security controls include; Personnel controls, Physical controls, Back-up

facilities.Select any two (2) of the controls and explain why each is necessary. (10 marks)

[Total: 20 marks]Question 3

(a) Discuss in detail, the implications of outsourcing Information Technology services. (10 marks)

(b) Explain five (5)benefits and five (5) risks of outsourcing Information technology servicesusing multiple vendors? (10 marks)

[Total: 20 marks]


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Question 4

(a) Define the term Management Information System. (2 marks)

(b) There are three (3) levels of Management Information Systems, which are, Operational,Tactical and Strategic levels.

(i) Briefly describe each of the levels mentioned above. (6 marks)

(ii) State the level of staff that will use the Management Information Systems at the levelsmentioned above. (3 marks)

(iii) Explain why the Management Information System is appropriate for staff at each ofthe three levels. (6 marks)

(c) What would be the problems of maintaining a web site with an online transaction system?(3 marks)

[Total: 20 marks]Question 5

(a) Describe the phases of the System Development Life Cycle (SDLC). (12 marks)

(b) State four (4) advantages and four (4) disadvantages of thewaterfall model . (8 marks)

[Total: 20 marks]

Question 6(a) Define the following terms:

(i) Data Integrity. (2 marks)(ii) Data independence. (2 marks)(iii) Database management system. (2 marks)

(b) What are the advantages of having only one copy of a data item in a database? (6 marks)

(c) In organizations with staff who work mainly from home, staff may need to access the

organization’s database from home. (i) Explain two (2) advantages of a web-enabled database approach. (4 marks)

(ii) Describe two (2) disadvantages of a web-enabled database approach.

(4 marks)


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Question 7

(a) (i) Define the term e-commerce. (2 marks)

(ii) Distinguish between Full e-commerce and Partial e-commerce. (4 marks)(iii) What technical infrastructure (hardware and software) is necessary to support

e-commerce (6 marks)

(b) Describe how Electronic Data Interchange (EDI) might enable a company to cut costs in thecontext of ordering supplies. (8 marks)

[Total: 20 marks]

END OF PAPER


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DECEMBER 2010

L8: MANAGEMENT INFORMATION SYSTEMS

SUGGESTED SOLUTIONS AND KEY


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Solution 1

(a) Types of computers

MicrocomputerThese are small sized, single-user computers based on the microprocessor. Most of theequipment used by a microcomputer is tightly integrated within a single case, although someequipment may be connected at short distances outside the case, such as monitors,keyboards, mice, etc. A microcomputer comes equipped with at least one type of datastorage, a high-speed, volatile device known as RAM, and a CPU. Although somemicrocomputers, particularly early 8-bit home micros can perform simple tasks using RAMalone, some form of secondary storage is normally desirable.

Modern desktop computers, video game consoles, laptop computers, tablet PCs, and manytypes of handheld devices, including mobile phones, may all be considered examples ofpersonal Microcomputers according to the definition given above.

Midrange ComputersMidrange computers also known as minicomputers are multi-user computer systems that canmanage large networks of PC’s and terminals. Though not as powerful as mainframecomputers, they are less costly to buy, operate, and maintain as mainframe systems, andthus meet the computing needs of many organisations. Midrange computers were originallyused for scientific research, instrumentation systems, engineering analysis and as controlmachines in a manufacturing unit, but have become popular as powerful network servers tohelp manage large internet websites, corporate intranets, extranets, and client/servernetworks.Mainframe ComputersMainframe computers are large, fast and powerful computer systems that can processseveral millions of program instructions per second. Mainframes also have large storagecapacities and their main memory capacity can range from hundreds of megabytes to tens ofgigabytes. Mainframe computers continue to handle the information processing needs of

large corporations, for example, banks, airlines etc. mainframes are also widely used assuperservers for large client/server networks and high volume, computation intensiveapplications.


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Super computersThe term supercomputer describes a category of extremely powerful computer systemsspecifically designed for scientific, engineering and business applications requiring extremely

high speeds for massive numeric computations. Supercomputers use parallel processingarchitectures of interconnected microprocessors which can perform arithmetic calculations atspeeds of billions of floating point operations per second. The market for super computersincludes, research agencies, large universities and major corporations. They usesupercomputers for applications such as global weather forecasting, military defencesystems, computational cosmology and astronomy etc.

(b) Parallel processing is a type of processing where more than one instruction can be executed(processed) at a time by breaking down a program into smaller parts and processing themsimultaneously with multiple processors; where as, sequential processing is type ofprocessing where a single processor executes the instructions of a stored program insequence except for pre-programmed execution jumps.

(c) The challenge for the software developers is to ensure that, in order to take advantage ofsuch capabilities of the processor’s, a new operating system capable of dividing the programinstructions for the respective processors and to be able to reassemble the result of eachprocessor into one result is available, otherwise all instructions will be processed insequence.


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Solution 2

(a) (i) The possible consequences of loss of security include:- Loss availability of computers systems

Loss of integrity of data/information on computer services

Loss of confidentiality

Loss of customers

Loss of computer installations

(ii) Application controls include both automated and manual procedures that ensure thatdata completely and accurately processed by the applications.

They consist of:- Input controls; necessary to ensure accuracy and completeness of data when it

is been entered into the computer system

Processing controls; necessary to ensure that data are complete and accurateduring updating

Output controls; necessary to ensure that the result of computer processing areaccurate complete and properly distributed.

(b)

Administrative Security controlsPersonnel controls

Personnel are not always careful about protecting their passwords and security codes andthrough social engineering they might fall into the wrong hands and personnel controls arenecessary to ensure employees in the position of trust are not compromised to cause asecurity breach.

Implementation of these controls may include:-

System should be designed so that only a few staff are in a position of trust. Job rotation at

random intervals so that an employee cannot be certain that he/she will be able to set up abreach of security before the next job rotation. References should be checked before amember of staff is hired.


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Physical controls

Physical controls are concerned with denying physical access to the computer system,preventing the physical destruction of the system, and keeping the system available. To

implement physical controls; For example, mainframe computers are often located incontrolled-access rooms and personal computers are sometimes cabled to work tables orplaced in locked cabinets when they are not in use.

Access to a secure area can be controlled by issuing identification cards, badges, keys, orpersonal identification numbers (PINs) to authorized personnel, and surveillance camerasare becoming increasingly common.

Modern biometric devices can be used to identify an individual via retinal scan, fingerprintanalysis, voiceprint, or signature analysis.

Back up facilities

Backup refers to the copying of data for the purpose of having an additional copy of anoriginal source. If the original data is damaged or lost, the data may be copied back from thatsource, a process which is known as Data recovery or Restore. The data in question may beeither data as such, or stored program code, both of which are treated the same by thebackup software.Backups are a way of physically securing computer based information systems;

Backups are kept on hard disks, CD-R, CD-RW, DVD and tapes, and can be kept in amultitude of locations, some of the suggested places would be a fireproof, waterproof, andheat proof safe, or in a separate, off-site location than that in which the original files arecontained. Individuals and companies can also keep their backups in safe deposit boxesinside the vaults of banks. There is also a fourth option, which involves using one of thecompanies on the Internet that backs up files for both business and individuals.


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Solution 3

(a) Outsourcing is the act of transferring ownership or management of IS resources (hardware,software and personnel) to an outside IS specialist. This entails that the company can focuson its core business. A company signs an agreement to use the services of an outsourcingfirm for a number of years and the outsourcing firm can be responsible for anything frommachine operation and maintenance to development of new systems and telecommunicationservices. The basic premise is that specialized firms can offer more efficient service at betterprices. However, outsourcing incurs additional costs for coping with cultural differences thatdrain productivity and dealing with human resources issues, such as relocating domesticemployees and transitional costs. Outsourcing also becomes expensive in the long run.Outsourcing also entails transferring a crucial resource of an organization to an outside

company which can not be secure.

(b) Benefits of outsourcing includes,

Core-competence of the organization - If a specific function required to an organizationis not a part of its core competencies or core strategy there is little sense in performingthat function within the organization. Organizations carefully select focal points inadherence to their competitive advantage and outsourcing IS services is one of them.

cost saving in terms operational costs such as hiring specialized human resource

needed to manage IS services, better management of IS services by multiple specialized personnel and a reported

success rate high success,

less dependence on one vendor,

Improving organizational effectiveness by utilizing a third party - Sometimesoutsourcing enables using the advantages of the third party company to theorganization's advantage (for example in negotiations, networks etc.).

The risks of outsourcing to multiple vendors include,

long term cost implications of managing multiple contracts,

Difficulties in managing products from different vendors which compromises the qualityof the integrated systems.

Employee opposition-a benefit of outsourcing is its cost effectiveness. This oftenmeans that the same amount or more work is performed than before the outsourcingexercise with less labor. The organization outsourcing its work invariably sheds jobs.


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Limited Customization and Enhancements- going into an outsourcing arrangement, itmight appear that the systems and/or services meet most if not all of customer’srequirements without the need for future enhancements. However, situations change

over time, both for the outsourcer and the customer organization, and need to berenegotiated if they were not in the original contract.

Cultural differences between the home and host markets.


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Solution 4

(a) The term Management Information Systems (MIS) designates to specific category ofinformation system serving middle management. MIS provides middle managers with reports

on the organization’s current performance. This information is used to monitor and controlthe business and predict future performance.

(b) Level of management

Organizations have a structure that is composed of different levels and specialist. Theirstructures reveal a clear cut division of labour. Authority and responsibility in a business firmare organized as a hierarchy, a pyramid structure. The upper levels of the hierarchy consistof managerial, professional and technical employees, whereas the lower level consists ofoperational personnel.

(i) Operational/lower management is responsible for monitoring the daily activities of thebusiness. The employees in manufacturing falls under which include delivery ofservice.

(ii) Tactical/Middle management carries out the programs and plans of seniormanagement that trickle down from senior level management, such as scientist andengineers and architects who produce design products or service and create newknowledge for firm.

(iii) Strategic/senior management makes long term strategic decisions products andservices as well as ensures financial performances of the firm.

Senior Mgt

Tactical

Scientist and knowledge workers

Operational

Consist of productions, service worker and data workers

Senior MgtManager andProfessionals


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(c) Problems of maintaining a web site;

Maintaining the link with the database

Make sure that information is up to date

Screening the users of sensitive information

Providing a friendly user interface so users can find the data they need easily

Indicating to when information has been updated


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Solution 5

The systems development life cycle (SDLC) is a conceptual model used in project managementthat describes the stages involved in an information system development project, from an initialfeasibility study through maintenance of the completed application. Various SDLC methodologieshave been developed to guide the processes involved, including the waterfall model (which wasthe original SDLC method); rapid application development (RAD); joint application development(JAD); the fountain model; the spiral model; build and fix; and synchronize-and-stabilize.

Often, several models are combined into some sort of hybrid methodology. Documentation iscrucial regardless of the type of model chosen or devised for any application, and is usually done inparallel with the development process. Some methods work better for specific types of projects, butin the final analysis, the most important factor for the success of a project may be how closely theparticular plan was followed.

In general, an SDLC methodology follows these steps:

1 If there is an existing system, its deficiencies are identified. This is accomplished byinterviewing users and consulting with support personnel.

2 The new system requirements are defined including addressing any deficiencies in theexisting system with specific proposals for improvement.

3 The proposed system is designed. Plans are created detailing the hardware, operating

systems, programming, and security issues.4 The new system is developed. The new components and programs must be obtained and

installed. Users of the system must be trained in its use, and all aspects of performance mustbe tested. If necessary, adjustments must be made at this stage.

5 The system is put into use. This can be done in various ways. The new system can phasedin, according to application or location, and the old system gradually replaced. In somecases, it may be more cost-effective to shut down the old system and implement the newsystem all at once.

6 Once the new system is up and running for a while, it should be exhaustively evaluated.Maintenance must be kept up rigorously at all times. Users of the system should be kept up-to-date concerning the latest modifications and procedures.

(a) Advantages of Waterfall Software Development

It is very easy yet powerful method of software development. The phases are arrangedso that it helps even the new developers to understand the big picture of how to goabout developing the software through the software development life cycle.


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It is a linear model and as such simple to implement.

The amount of resources required to implement this model is very minimal.

One great advantage of the waterfall model is that documentation is produced at everystage of the waterfall model development. This makes the understanding of theproduct designing procedure simpler.

After every major stage of software coding, testing is done to check the correct runningof the code.

It is popular because each stage can be compartmentalized(one stage is completelyseparate to other stages and there is no overlapping).

The project's deadlines can be set.

Project can be monitored and managed tidily.

(b) Disadvantages of Waterfall Software Development

In this method, all the requirements of the software need to be specified upfront andthere is no room for committing mistakes.

The project scope statement needs to be detailed in infinite depth from the startbecause changes are not possible when using waterfall methodology. This is becausethe only way to amend something which has been already developed is to go back and

start again. This will cause huge problems on projects where the project sponsors areindecisive and quickly causes scope creep.

Project communications with the client are extremely limited being either at thebeginning or at the end of the development. In between, there is no way in which onecan get feedback or potentially clarify any confusion over what the requirement actuallymeans. The knock on effect is that it is up to the project team to make the keydecisions on what requirements can be developed within the timeframes required, andwhat is developed later in a later deployment release by project planning in teams. This

not only increases the overall time required to develop the software but also meansthat despite the team's best efforts, the customer may still be extremely unhappy withthe end product delivered.

Key team members stay idle for long durations. The Waterfall model does not operateon a matrix basis which makes project resource management an extremely rigidactivity. Basically those allocated to the project stay on it until that phase is over. Thishas a direct knock on effect on the project budget.


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Solution 6

(a) (i) Data Integrity refers to the validity and consistency of data. This is usually expressedas a set of rules or constraints to which the data must conform. For example DataConstraint; a date of birth must be before today’s date or

Relationship Constraint, the student’s number contained in a College’s records mustrefer to an existing student.

(ii) Data Independence. Data is organized in such a way that it is independent of therequirements of any one application program but at the same time meets allrequirements of the applications.

(iii) A database management system (DBMS) is a general purpose set of programs that

aid and control each user’s access to the database for adding, modifying, retrievingdata and that includes facilities giving data independence, integrity and security.

(b) Inserting new values and updating is easier.

Data consistency is maintained.

No data contradiction.

Storage space is saved.

(c) (i) Cross-platform support and better GUIPlatform IndependenceSimplicityStandardizationTransparent network accessBrowser Independence

(ii) Unsecure networksUnreliable networksCostly to implementScalability problemsPerformance slowed by use of interpreted languagesInternet very slow compared to Ethernet,HTTP is a stateless protocol and does not retain information between requests


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Solution 7

(a) (i) E-commerce is electronic commerce, where transactions are conducted electronically,using the internet or World Wide Web.

(ii) Full e-commerce is electronic commerce where the entire transaction is whollyelectronic and there is no point during the transaction where there is physicalmovement of information, products or services. For example, the Electronic transfer ofFunds from one account to another. Partial e-commerce, on the other hand, involvesphysical movement of part of the transaction at one point. For example, when buying avehicle from Japan on the internet, inquiries and the transfer of funds is electronicwhereas the vehicle has to be moved physically from Japan to Zambia.

(ii) The infrastructure elements needed to support e-commerce include LANs, intranetsand extranets, Virtual Private Networks, web technology such as web servers, websoftware, web-enabled databases and catalogues, webpage design and constructiontools, e-commerce transaction processing software, etc.

(b) Electronic Data Interchange is the electronic exchange of business documents, such asorders, bills, confirmations either through a third party or directly with a business partner.Businesses constantly order supplies from various suppliers, each order having a unit cost.EDI ordering can cut that cost by a factor of 10 percent per order, faster transmission oforder, faster replenishment of supplies from time of order, strategic alliances with EDIsuppliers and possible cost benefits, reduction in use of paper, reduction in errors and loss ofdocuments


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MARKING KEY

Question 1

(a) Three (3) marks for each correct description (12 marks)(b) Two (2) marks for each correct explanation (4 marks)

(c) Two (2) marks for each correct implication (4 marks)

(Total: 20 marks)Question 2

(a) (i) One (1) mark for each correct consequence (4 marks)

(ii) Two (2) marks for each correct application control (6 marks)

(c) Five (5) marks for each correct explanation up to five (5) points (10 marks)


(a) Two (2) marks for each correct explanation up to five (5) points (10 marks)

(b) One (1) mark for each correct benefit up to five (5) benefits and One (1) mark for eachcorrect risk up to five (5) risks (10 marks)


(a) One (1) mark for correct definition and one (1) mark for any purpose (2 marks)

(b) (i) Two (2) marks for correct description of each level (6 marks)

(ii) One (1) mark for each correct level of staff, (3 marks)

(iii) One (1) mark for each correct explanation of each level (3 marks)

(iv) One (1) mark for each correct example for each level (3 marks)

(c) One (1) mark for each correct problem explained (3 marks)

(Total: 20 marks)


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Question 5

(a) One (1) mark for the correct steps up to six (6) marks and one (1) mark for each correctdescription of each step (12 marks)

(b) One (1) mark for each correct advantage and one (1) mark for each correct disadvantage (8 marks)


(a) Two (2) marks for each correct definition (6 marks)

(b) Two (2) marks for each correct advantage (6 marks)

(c) Two (2) marks for each correct advantage (4 marks)

(d) Two (2) marks for each correct disadvantage (4 marks)(Total: 20 marks)

Question 7

(a) Two (2) marks for correct definition of e-commerce (2 marks)

(b) Two (2) marks for each correct infrastructure element (8 marks)

(c) Two (2) marks for correct explanation of EDI (2 marks)

(d) Then eight (8) marks for correct explanation of how to cut costs (8 marks)

(Total: 20 marks)

END


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LICENTIATE LEVEL


SERIES: JUNE 2011


INSTRUCTIONS TO CANDIDATES1. You have ten (10) minutes reading time. Use it to study the examination paper carefully so

that you understand what to do in each question. You will be told when to start writing.



4. Do NOT write in pencil (except for graphs and diagrams).5. The marks shown against the requirement(s) for each question should be taken as an

indication of the expected length and depth of the answer.





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Question 1

(a) Describe any three (3) factors that should be considered when selecting data input method.(9 marks)

(b) Distinguish between a closed system and an open system. (4 marks)

(c) Manual information systems are being replaced by computerised information systems. Listseven (7) disadvantages of manual systems. (7 marks)


(a) The most popular method of securing a computer system from unauthorised users isthrough the use of passwords and usernames.

Explain the difference between a password and a username. (4 marks)

(b) Computer and network security are anchored on the CIA triad. The CIA stands forconfidentiality, integrity and availability. In relation to computer and network security, explainwhat is meant by:

(i) Confidentiality; (2 marks)

(ii) Integrity; (2 marks)

(iii) Availability. (2 marks)

(c) The use of Closed Circuit Television (CCTV) helps security personnel to monitor physicalaccess to computer installations. List and explain any five (5) benefits of installing CCTV.

(10 Marks)


(a) Operating systems may support multitasking, multiprocessing and perform other functions.Explain the following terms;

(i) multitasking (2 marks)

(ii) Multiprocessing (2 marks)

(b) Describe three (3) other functions that the operating system performs when runningapplication programs. (6 marks)


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(c) Modern operating systems use disk caching and printer buffering.

(i) What is disk caching and why is it useful? (3 marks)

(ii) What is printer buffering and why is it useful? (3 marks)

(d) Graphical User Interfaces (GUIs) are a common feature of modern operating systems. Givethe name of another user interface and give any two (2) reasons why GUIs are more popularthan the user interface named. (4 marks)


Database Management Systems (DBMS) are one of the most important tools in business andmanagement information systems. They have enhanced the way computer applications are

developed.

(a) Explain how data independence makes it easier to design and maintain computerapplications. (6 marks)

(b) Describe any three (3) functions of the database management system (DBMS).(6 marks)

(c) Explain why a DBMS is important for E-business. (8 marks)

(Total: 20 marks)

Question 5(a) Discuss any two (2) benefits and any two (2) risks of using the internet. (8 marks)

(b) Electronic commerce or E - commerce is becoming popular on the internet. Describe thefollowing categories of E-commerce ;

(i) B2B (3 marks)

(ii) B2C. (3 marks)

(c) Explain any three (3) benefits of E-commerce. (6 marks)

(Total: 20 marks)


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Question 6

(a) When analysing system proposals, cost benefit analysis usually includes two steps. Explainthese two (2) steps (6 marks)

(b) Cost benefit analysis is always clouded by tangible and intangible costs.

Clearly differentiate between tangible costs and intangible costs. (4 marks)

(c) There are many types of systems development models which analysts can use to design andbuild a new system.

(i) Define the waterfall model and give any one (1) advantage and any one (1)disadvantage of using the waterfall model. 5 marks)

(ii) Describe prototyping and give one (1) advantage and one (1) disadvantage of using

the prototyping model. (5 marks)


Computer systems have developed from stand alone, to client/server networks and distributedsystems.

(a) Explain how these developments have increased vulnerability of information systems tosecurity breaches. (8 marks)

(b) Describe any three (3) examples of deliberate breaches of security in an information system.(6 marks)

(c) Describe any three (3) measures that an information systems manager may put in place tocounter the security threats mentioned in part (b). (6 marks)

(Total: 20 marks)

END OF PAPER


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JUNE 2011

L8 MANAGEMENT INFORMATION SYSTEMS (MIS)

SUGGESTED SOLUTIONS


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Solution 1

(a) Three (3) factors to be considered when selecting data input method;

Economy: the cost of data capture weighs heavily in the equation since if the input methodused is too expensive, the project or solution cannot be implemented. If there are not enoughvolumes bar-coding is too expensive.

Accuracy: the error tolerance level that is acceptable also dictates the choice. If the ease ofdetection of errors is good and the ability to correct them post capture is also easy thenmethods with high error rates but low costs are acceptable. In the event that this is not thecase then more expensive but less error prone solution is necessary.

Time: If it takes too long to capture the data then the value of the results may not be useful.

In real-time situations, the input methods must be instantaneous.Reliability: the cost of a unit being down (e.g. an ATM at a bank) can be high so thechances of it breaking down and the speed with which it can be recovered as well as backuproutines influence choice.

Flexibility: some methods are specific others are generic. If there are many purposes, thena generic device for dealing with different types of inputs must be selected.

Volume: Large volumes of data may require methods that can collect it quickly. As anexample, computer readable forms and marked ballot papers are used for elections because

using people takes too long to collect and count in areas with big populations.

Compatibility: the selected equipment must work with future as well as present applications.Features such as network capability and multiplicity of interfaces and connectors on thedevice affect the choice.

(b) A closed system is a system which is isolated from its environment and independentof it. No environmental influences affect the behaviour of the system nor does thesystem exert any influence on its environment. Example is a chemical reaction in asealed, insulated container and the other is the operation of the Thermostat.

An open system is a system connected to and interacting with its environment. It takesin influences (or energy) from its environment and also influences its environment byits behaviour. For example a business is an open system where managementdecisions are influenced by and have influence on suppliers, customers, competitors,society as a whole and the government.


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(c) Disadvantages of manual systems

Productivity: Productivity is usually lower, particularly in routine or operationalsituations such as transaction processing.

Slower: Processing is slower where large volumes of data need to be dealt with.

Risk or errors: The risk of errors is greater, especially in repetitive work like payrollcalculations.

Less accessible: Information on manual systems is generally less accessible. Access to information is often restricted to one user at a time.

Alterations: It is difficult to make corrections. If a manual document contains errors orneeds updating it is often necessary to recreate the whole document from scratch.

Quality of output: quality of output is less consistent and often not well-designed. Atworst, hand written records may be illegible and so completely useless.

Bulk: paper based systems are generally very bulky both to handle and to store.


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Solution 2

(a) Password: is a string of characters entered by a user as an identification factor.

Username: is a unique identifier for a logon process which is supplied by a user andrelated to a specific password.

(b) Description of CIA triad

(i) Confidentiality: is protection of data from unauthorised disclosure to a third party. Itdetermines the secrecy of the information asset.

(ii) Integrity: Assurance that data is not altered or destroyed in an unauthorized manner,(date is accurate and reliable). Without integrity, the cost of collecting and maintainingdata cannot be justified.

(iii) Availability: Timely, reliable access to data and services for authorized users. Itincludes the restoration of services after an interruption. It also ensures continuousoperation of the computer system.

(c) Closed Circuit Television (CCTV) systems are surveillance or security camera systems thatare deployed in public areas, crowded places or in environments, installations, buildings andproperties for which security is deemed important. CCTV Cameras have redefined securitymanagement dynamics, terrorism prevention measures, law enforcement activities andgeneral protection of businesses and homes. The use of CCTV surveillance is not withoutcontroversy. Each establishment must weigh the benefits and drawbacks to decide if CCTVis the right method of protection. Among the many benefits of CCTV are:

Preventing Crime

Of course CCTV can help you identify how a crime happened and to spot it in action,but it can also prevent it from occurring in the first place simply by them knowingthey’re being watched.

Preventing Employee Theft

Theft and crime doesn’t just occur when customers or members of the public pocketgoods; a lot of the time it is employees themselves who are stealing from the business.Statistics and focus groups suggest that the reason for theft is not often need butrather opportunity. If your staff know that they’re being watched it will make this farless likely.


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Protecting employees

In many jobs your employees are vulnerable to physical or verbal attacks from thegeneral public. In high pressure or stressful situations, it’s not unusual that customerswill lash out at a company representative. Knowing that they are being watched byCCTV however, can minimize these cases and empower them to calmly deal withthose situations. Furthermore, it can protect them against false allegations which canalso be common depending on the nature of the business.

Keeps a Record

If a crime occurs in an establishment that has installed CCTV surveillance,investigation will be aided by the video. If an argument occurs between twoemployees, the employer can consult the videotape to determine what actuallyoccurred.

Inspiring confidence

CCTV can also be useful for the customers themselves by creating a safe feelingenvironment. It can allow you to spot crimes against customers (particularly in barsetc) and even accidents on the work premises.

Placing Blame

If a serious mistake has been made, or something has been stolen, it may well be thata member of staff needs to be reprimanded or pointed in the right direction. If noemployees owns up to the mistake however then mistakes can be allowed to slide orthe wrong member or staff can be penalized


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Solution 3

(a) (i) Multitasking: a feature of operating systems that enables users to run more than onetask or application at the same time. A number of applications, including multi-access,require that more than one programmer be resident in the memory of the computer atthe same time. This requires a special type of operating system called a multi-taskingor multiprogramming system. A Computer can apparently perform several taskssimultaneously by allocating time-slices to each task.

(ii) This is a further aspect of resource sharing, namely, where two or more processors arelinked together to share the processing tasks. A common example is the use of acomputer as an interface between the users and the mainframe computer to handle allthe communications. Such a computer is called a Front-End Processor. Anotherapplication is for processors to provide back-up for one another when continuousprocessing is required.

(b) The following are some of the functions performed by an operating system when runningapplication programs:

User interface

The user interface is one of the most important, yet underappreciated parts of theoperating system. A correctly designed user interface allows the user to interact with

the computer accessing its power without having to learn complicated control methods.Today, the windows-based environment makes use of the mouse, keyboard, drop-down menus; and scrolling menu areas are the dominant form of this user interface.

Program Execution

The purpose of computer systems is to allow the user to execute programs. So theoperating systems provide an environment where the user can conveniently runprograms. The user does not have to worry about the memory allocation ormultitasking, etc. as these things are handled by the operating systems.


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I/O Operations

This consists of a set of programs for controlling the input from and output to thevarious devices. These programs form part of the kernel (the controlling part of theoperating system) and are entered via the kernel when an interruption occurs. I/Osubsystems hide the peculiarities of specific hardware devices from the user. Only thedevice driver knows the peculiarities of the specific device to which it is assigned.Each program requires an input and produces output. The operating systems hidesfrom the user the details of underlying hardware for the I/O. Or any other Threefunctions.

(c) (i) Disk caching: Random Access memory (RAM), either part of the Hard Drive (hardcaching) or part of general purpose RAM (soft caching) holds the most recentlyaccessed data. It is useful because RAM access is much faster than disk access andcache is checked for required data before a disk access is attempted.

(ii) Print buffering: Print buffer (also called spooling) is a temporary storage area towhich a document is copied when a print command is issued. This allows thecomputer to do other tasks while the printer draws output from the buffer at its ownpace

(d) (i) User interface Removed: the part of the system which is a means of communicationbetween the operating system and the use.

(ii) Another user interface is the command line user interface or Menu driven interface.

Reasons as to why GUI is more popular include:

No commands to remember

Fewer typing errors

Easy to learn.


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Solution 4

(a) Data Independence can be defined as immunity of applications to change in physicalrepresentation and access technique, which makes it possible to alter the data withoutdestroying the programs. Data independence means that the data and programs areseparate. The main advantage is that it is possible to change the data without having tochange the programs. Similarly, it is possible to alter one program without affecting the restof the programs and data. As a business grows, new applications would be required, and byputting the DBMS in charge of managing data, application developers can concentrate onsolving more complex business problems.

(b) The functions performed by a typical DBMS are the following:

Data DefinitionsThe DBMS provides functions to define the structure of the data in the application.These include defining and modifying the record structure, the type and size of fieldsand the various constraints/conditions to be satisfied by the data in each field.

Data Manipulation

Once the data structure is defined, data need to be inserted, modified or deleted. Thefunctions which perform these operations are also part of the DBMS. These functionscan handle planned and unplanned data manipulation needs. Planned queries are

those which form part of the application. Unplanned queries are adhoc queries whichare performed on a need basis.

Data Security & Integrity

The DBMS contains functions which handle the security and integrity of data in theapplication. These can be easily invoked by the application and hence the applicationprogrammer need not code these functions in his/her programs.

Data Recovery & Concurrency

Recovery of data after a system failure and concurrent access of records by multipleusers are also handled by the DBMS.


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Data Dictionary Maintenance

Maintaining the data Dictionary which contains the data definition of the application isalso one of the functions of a DBMS.

Performance

Optimizing the performance of the queries is one of the important functions of a DBMS.Hence the DBMS has a set of programs forming the Query Optimizer which evaluatesthe different implementations of a query and chooses the best among them.

(c) E-business requires interaction with customers and company data. Consequently, most e-business models are connected to a database. Customer would want to know if a product isin stock, and any in formation relating to the ordering and shipping must be stored in

database, which has to be maintained and shared throughout the company. Other e-business databases provide services, store transaction data and provide search andmatching capabilities. This makes it easier for managers to have already summarizedtransaction data, which can be used to measure company performance and use externaldatabases to evaluate the industry and competitors.

Generally the database runs on a separate server, which reduces the load on the web serverand makes it easier to handle backups and other database maintenance chores.


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Solution 5

(a) (i) Benefits of Internet

The main benefits of Internet are:-

Sharing Information

You can share information with other people around the world. The scientist orresearchers can interact with each other to share knowledge and to get guidanceetc. Sharing information through Internet is very easy, cheap and fast.

Collection of Information

A lot of information of different types is stored on the web servers on the Internet.It means that billions of websites contain different information in the form of textand pictures. You can easily collect information on every topic of the world. Forthis purpose, special software, called search engines are available on theInternet to search information of every topic of the world. The most popularsearch engines are altavista.com, search.com, yahoo.com, ask.com etc. Thescientists, writers, engineers and many other people use these search engines tocollect latest information for different purposes. Usually, the information on theInternet is free of cost. The information on the Internet is available 24 hours aday.

News

You can get latest news of the world on the Internet. Most of the newspapers ofthe world are also available on the Internet. They have their websites from whereyou can get the latest news about the events happening in the world. Thesewebsites are periodically updated or they are immediately updated with latestnews when any event happens around the world.

Searching Jobs

You can search different types of jobs all over the world, Most of theorganizations/departments around the world, advertise their vacant vacancies onthe Internet. The search engines are also used to search the jobs on Internet.You can apply for the required job through Internet.

Advertisement

Today, most of the commercial organizations advertise their product throughInternet. It is very cheap and efficient way for the advertising of products. The


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products can be presented with attractive and beautiful way to the people aroundthe world.

Communication

You can communicate with other through Internet around the world. You can talkby watching to one another;

Entertainment

Internet also provides different type of entertainments to the people. You canplay games with other people in any part of the world. Similarly, you can seemovies, listen music etc. You can also make new friends on the Internet forenjoyment.

Online EducationInternet provides the facility to get online education. Many websites of differentuniversities provide lectures and tutorials on different subjects or topics. You canalso download these lectures or tutorials into your own computer. You can listenthese lectures repeatedly and get a lot of knowledge. It is very cheap and easyway to get education.

Online Results

Today, most of the universities and education boards provide results on theInternet. The students can watch their results from any part of country or world.

Online Airlines and Railway Schedules

Many Airline companies and Pakistan Railway provide their schedules of flightsand trains respectively on the Internet.

(ii) Risks of Internet

Although Internet has many advantages but it also has some disadvantages. The maindisadvantages are:

Viruses

Today, Internet is the most popular source of viruses. Most of the viruses movefrom one computer to another through e-mail or when information is downloadedon the Internet. These viruses create different problems in your computer. Forexample, they can affect the performance of your computer and damagevaluable data and software stored in your computer.


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Security Problems

The valuable websites can be damaged by hackers and your valuable data maybe deleted. Similarly, confidential data may be accessed by unauthorizedpersons.

Filtration of Information

When a keyword is given to a search engine to search information of a specifictopic, a large number of related links are displayed. In this case, it becomesdifficult to filter out the required information.

Accuracy of Information

A lot of information about a particular topic is stored on the websites. Some

information may be incorrect or not authentic. So, it becomes difficult to selectthe correct information. Sometimes you may be confused.

Wastage of times

Personnel may waste a lot of time chatting or playing games instead of beenengaged in productive work. At home and offices, most of the people useInternet without any positive purpose.

(b) E-commerce models

(i) Business-to-Business (B2B)This is the electronic sale of goods and services among businesses on the internet.The goods are mostly specialized and traded in bulk.

(ii) Business-to-Consumer (B2C)

Electronic commerce that involve the retailing of products and services to individualshoppers on the internet.

(c) Advantages of Electronic Commerce The greatest and the most important advantage ofe-commerce, is that it enables a

business concern or individual to reach the global market. It caters to the demands of both the national and the international market, as your

business activities are no longer restricted by geographical boundaries. With the helpof electronic commerce, even small enterprises can access the global market forselling and purchasing products and services.

Time restrictions are nonexistent while conducting businesses, as e-commerceempowers one to execute business transactions 24 hours a day and even on holidaysand weekends. This in turn significantly increases sales and profit.

http://www.buzzle.com/articles/ecommerce-web-hosting/http://www.buzzle.com/articles/ecommerce-web-hosting/


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Electronic commerce gives the customers the opportunity to look for cheaper andquality products. With the help of e-commerce, consumers can easily research on aspecific product and sometimes even find out the original manufacturer to purchase aproduct at a much cheaper price than that charged by the wholesaler.

Shopping online is usually more convenient and time saving than conventionalshopping. Besides these, people also come across reviews posted by other customers,about the products purchased from a particular e-commerce site, which can help makepurchasing decisions.

It reduces the time period involved with business process re-engineering,customization of products to meet the demand of particular customers, increasingproductivity and customer care services.

Electronic commerce reduces the burden of infrastructure to conduct businesses andthereby raises the amount of funds available for profitable investment. It also enablesefficient customer care services.

http://www.buzzle.com/articles/customer-service/http://www.buzzle.com/articles/customer-service/


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Solution 6

(a) (1) Producing the estimates of costs and benefits

The first step is to estimate the cost of building and operating the new systems andbenefits that might accrue after implementation.

The sum value of the costs needed to implement the system is known as the cost ofthe system. The sum value of the savings made is known as the benefit of the newsystem. Once an agreement has been reached on the cost and benefits, the projectcan then be evaluated as to whether it is economically viable.

(2) Determining whether a project is worthwhile.

The costs and benefits are used to determine whether a project is economically

feasible. There are two ways of doing this:-(a) The pay-back method

This method defines the time required to recover the money spent on a project.Since the cost is known and the costs/benefits for each year succeeding; thedifference between the cost and the benefit for each year will be the saving ornet benefit for the year.

(b) The present value method

The pay-back method is not always the best way to determine the economicfeasibility of a project. The idea of the present value is to determine how muchmoney it is worthwhile to invest now in order to receive a given return in someyears.

(b) (i) Tangible costs

Are those items to which direct values can be attached, from an IS developmentperspective, tangible costs include items such as, hardware costs, labor costs, andoperational costs such as employee training and building renovations.

(ii) Intangible costsIntangible costs are those which are known to exist but whose financial amount can notbe accurately determined. An example is the value of a lost customer or a loweredcompany image. Most costs are tangible and can be identified by analysis.

(c) (i) Definition: The waterfall model is a sequential software development model in whichdevelopment is seen as flowing steadily downwards through the phases ofrequirements analysis, design, implementation, testing (validation), integration, andmaintenance.


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Advantages of Waterfall Software Development

It is very easy yet powerful method of software development. The phases arearranged so that it helps even the new developers to understand the big picture

of how to go about developing the software through the software developmentlife cycle.

It is a linear model and as such simple to implement.

The amount of resources required to implement this model is very minimal.

One great advantage of the waterfall model is that documentation is produced atevery stage of the waterfall model development. This makes the understandingof the product designing procedure simpler.

After every major stage of software coding, testing is done to check the correctrunning of the code.

It is popular because each stage can be compartmentalized (one stage iscompletely separate to other stages and there is no overlapping).

The project's deadlines can be set.

Project can be monitored and managed tidily.

Disadvantages of Waterfall Software Development

In this method, all the requirements of the software need to be specified upfrontand there is no room for committing mistakes.

The project scope statement needs to be detailed in infinite depth from the startbecause changes are not possible when using waterfall methodology. This isbecause the only way to amend something which has been already developed isto go back and start again. This will cause huge problems on projects where theproject sponsors are indecisive and quickly causes scope creep.

Project communications with the client are extremely limited being either at thebeginning or at the end of the development. In between, there is no way in whichone can get feedback or potentially clarify any confusion over what therequirement actually means. The knock on effect is that it is up to the projectteam to make the key decisions on what requirements can be developed withinthe timeframes required, and what is developed later in a later deploymentrelease by project planning in teams. This not only increases the overall timerequired to develop the software but also means that despite the team's best


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efforts, the customer may still be extremely unhappy with the end productdelivered.

Key team members stay idle for long durations. The Waterfall model does not

operate on a matrix basis which makes project resource management anextremely rigid activity. Basically those allocated to the project stay on it until thatphase is over. This has a direct knock on effect on the project budget.

It is a very rigid method which does not entertain any change in requirements andwhich makes any subsequent functionality changes required extremely difficult andexpensive to implement.

(ii) Definition: Prototyping is the process of quickly putting together a working model(a prototype) of a system in order to test various aspects of a design, illustrateideas or features and gather early user feedback. A prototype is a model of aproposed system which is built to illustrate the feasibility of the new system.

Advantages of prototyping

Prototypes can be easily changed

May provide the proof of concept necessary to attract funding

Early visibility of the prototype gives users an idea of what the final system lookslike

Encourages active participation among users and producers

Enables a higher output for users

Cost effective (Development costs reduced)

Increases system development speed

Disadvantages of prototyping

User’s expectation on prototype may be above its performance

Possibility of causing systems to be left unfinished Possibility of implementing systems before they are ready.

Producer might produce a system inadequate for overall organizational needs

Not suitable for large applications

Project management difficulties


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Solution 7

(a) Having noted that stand-alone computers are relatively easy to secure, the fact thatinformation resources may be scattered throughout the organization and beyond, data istransmitted across networks, employees and others may access systems from variousequipment in various places, systems may be interconnected with external systems throughthe internet or otherwise. The potential for unauthorized access, abuse or fraud is notlimited to one location but can occur at any access point in the network. As a result,systems are vulnerable to security breaches from outside the company as well as fromwithin. The development of networks has thus increased syste

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