- 20 Marks
Question
Financial Service Overseas (FSO) is a regulator of all companies providing financial services. It currently uses ‘stand-alone’ or unrelated software applications to manage its business processes. The business processes include procurement, inventory control, accounts, clients, and monitoring. It is now considering whether an enterprise-wide system is a suitable replacement for all the unrelated software applications.
Required:
a) Identify FOUR (4) roles the new information system may play in FSO. (4 marks)
b) Explain TWO (2) features of an ‘enterprise-wide’ system. (4 marks)
c) Describe the types of test that should be conducted before the new information system goes ‘live’. (4 marks)
d) Describe THREE (3) benefits an information system built around a database should bring to an organization. (8 marks)
Answer
a) Roles that the new system may play in the company are:
- Planning future operations: The system can help in forecasting and planning future business operations based on historical data and trends.
- Recording transactions: The system will ensure that all financial and operational transactions are accurately recorded in a centralized manner.
- Performance measurement: It can compare actual results against planned objectives, helping in the evaluation of business performance.
- Decision support: It provides critical data and insights to senior management to make informed business decisions.
(4 points for 4 marks)
b) Features of enterprise-wide system:
- Coordination of business functions: Enterprise-wide systems are designed to integrate and coordinate all business functions, resources, and information across the organization.
- Minimized duplication of information: These systems reduce the risk of duplicating information by using a common database shared across different business areas.
(2 points for 4 marks)
c) Testing should include:
- User acceptance testing: To ensure that the system meets user requirements and expectations.
- Volume tests: To verify that the system can handle the expected volume of transactions and data processing.
- Realistic tests: To simulate real-world scenarios and data to test the system’s functionality.
- Contrived tests: To assess how the system handles unusual and unexpected events.
(2 points for 4 marks)
d) Benefits of information systems based around a database include:
- Reduced data duplication/data redundancy: Centralized data management reduces the chances of duplicate or redundant data entries.
- Provision of tailored reports: The system allows for flexible reporting, such as generating reports on slow-moving products or supplier performance.
- Ease of access to information for staff: Quick retrieval of information to respond to customer inquiries or internal needs.
- Enhanced security: Centralized data management improves data security by controlling access and monitoring data usage.
- Reduced IT maintenance costs: Centralized data maintenance simplifies IT tasks, reducing overall maintenance costs.
(3 points for 8 marks)
- Tags: Database, Enterprise-wide System, Information Systems, IT Benefits, Testing
- Level: Level 1
- Uploader: Uploader1