UNIVERSITY OF MAURITIUS

FACULTY OF LAW AND MANAGEMENT

SECOND SEMESTER EXAMINATIONS

MAY 2018

BSc (Hons) Management (Minor: Business Informatics)

PROGRAMME
Level III

MODULE NAME INFORMATION TECHNOLOGY AND STRATEGY

Monday
DATE MODULE CODE CSE3110(5)
07 May 2018

TIME 13:30 – 15:30 Hours DURATION 2 Hours

NO. OF NO. OF QUESTIONS

4 4
QUESTIONS SET TO BE ATTEMPTED

INSTRUCTIONS TO CANDIDATES

This paper consists of FOUR (4) questions.

Answer ALL questions.

 Information Technology and Strategy – CSE3110(5)

Answer ALL FOUR (4) questions.

Question 1 [25 marks]

Read the following Case Study and answer all parts from Question 1.

CASE STUDY: Ben & Jerry's Technological Investment on Information Systems

Ben & Jerry's currently utilises technology in the following areas: customer database
management, manufacturing, web site development, and multimedia. By examining each
area individually, we can determine how the company should continue to invest in
technology in the future.

Customer database management is a tool for satisfying customer needs and demands. The
company currently uses its database for two primary reasons: 1) to discover what customers
think of new product ideas and 2) to involve customers in social concerns.

Most of the database records are collected from the Franchised Scoop Shops that send in the
names of people who want to be placed on the Ben & Jerry's mailing list. When placed on the
mailing list, customers are sent catalogues and newsworthy updates on company happenings.
By using the customer databases, the company builds valuable relationships between people
and products.

In its manufacturing, Ben & Jerry's uses a very advanced system to emphasize efficiency and
productivity for the user. The system ultimately creates a better link between production and
storage areas. The business planning and control groups use Ethernet and networking
products.
The use of system architecture allows employees to exchange and analyse data. Through this
system, the company allows its engineers and designers to share product development
information so that the progress can be evaluated constantly. Systems architecture also offers
pattern recognition and process learning. Thus, if employees spot inefficient trends during
the manufacturing process, proper adjustments can be made that are more effective for the
company.

Although the manufacturing process is constantly updated to improve efficiency, Ben &
Jerry's also invests much time and effort into further web site development. The web site is an
area of continuous technological growth and investment. The company's current web site
features an interactive page with an animated tour guide helping visitors around the site in
order to answer their questions. The range of interactive information that can be gathered on
the site is useful in building long-term relationships with Ben & Jerry's customers.

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 Information Technology and Strategy – CSE3110(5)

Finally, the company focuses its resources equally on the expanded use of multimedia
applications in its day-to-day operations. Specifically, Ben & Jerry's utilises videoconferencing
to maintain close teamwork and communications between employees who are more
geographically scattered as the company expands into the worldwide market.

Recommendation for the Future

Since Ben & Jerry's manufactures products in the mature stage of the product life cycle, the
company should now focus on strengthened market share and building brand loyalty. Ben &
Jerry super premium ice cream product already has an established customer base. The
company will gain new customers only if consumers choose to switch super premium brands.
In this stage of the product life cycle, emphasis must be placed on customers by building
brand loyalty and creating customer satisfaction through the use of technology.

The company can build brand loyalty through the effective use of web site development and
database marketing. The Ben & Jerry’s web site currently uses several innovating frames to
encourage customer interaction with the product and the company. By increasing the number
of interactive elements on their web site, keeping the site current with product information,
and, most importantly, marketing their site among prospective clients, Ben & Jerry's will be
able to maintain high customer loyalty among their target markets.

The real key to Ben & Jerry’s future success lies in the company's ability to use and maintain
customer databases effectively. Currently, Ben & Jerry's uses its customer databases to gather
customer feedback and to introduce customers to social concerns and volunteer organisations.
Although these are major current concerns of the company, Ben & Jerry’s can use customer
feedback in the future in other areas as well. For example, customers may recommend
additional channels of distribution for the company, international opportunities, and new
growth areas.

As technology grows, Ben & Jerry's should stay aware of increasingly new methods of adding
to its customer database. In addition to Scoop Shops, sites such as grocery stores and
restaurants where customers purchase the products, the company now has the opportunity to
use the Internet to maintain contact with old and new customers alike. By expanding the
method of creating additional customer databases, the company can find out more
information about consumer habits and therefore gain more accurate marketing knowledge.

If Ben & Jerry's decides to focus on the customer first, super premium ice cream will not enter
the declining stage of the product life cycle. The company must understand the importance of
customer feedback and the use of technology to utilise it appropriately.

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 Information Technology and Strategy – CSE3110(5)

(a) Explain the strategic direction pertaining to the use of information technology for Ben
& Jerry's ice cream business.
[4 marks]
(b) Identify the critical success factors and core competencies factors for Ben & Jerry's ice
cream.
[4 marks]

(c) Upon what technologies have Ben & Jerry's relied?

[3 marks]
(d) Explain what has caused a change in the use of technology at Ben & Jerry’s ice cream.
[3 marks]
(e) Identify whether there are replacement products for Ben & Jerry's ice cream.
[3 marks]
(f) Discuss what does the corporation's website present about its business directives.
[4 marks]
(g) Explain the importance of having relevant data and feedback from its customers to
ensure the corporation's continued success.
[4 marks]

Question 2 [25 marks]

(a) The information needs of managers of a company are becoming more and more
complex due to the stiffer global competition and customer demands for higher quality
at lower costs. The current Information System produces summary and exception
reports which are inadequate to support the highly complicated decisions that
management is now facing.

Discuss how a proper Decision Support System, Executive Information System and a
Knowledge Management System can provide better information to support mid and
top-level managerial decision making.
[3 x 3 = 9 marks]
(b) List seven major ICT/IS components that must be coordinated in a firm’s ecosystem to
provide a coherent IT infrastructure.
[7 marks]
(c) Give three reasons why a business firm must constantly review its investment in its IT
infrastructure.
[2 x 3 = 6 marks]
(d) Many large scale organisations generally invest on the acquisition of enterprise system
for coordinating processes in their various departments. Describe the features of an
enterprise system.
[3 marks]
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 Information Technology and Strategy – CSE3110(5)

Question 3 [25 marks]

(a) Explain how organisations can target ‘customer-supply intimacy’ by the use of
Information Systems.
[5 marks]
(b) Many businesses find that they need to set up a separate Information System
department to coordinate all their ICT activities which may be geographically
dispersed. Describe a typical structure of an Information System department.
[5 marks]
(c) Differentiate between ‘cloud computing’ and ‘grid computing’.
[5 marks]
(d) Explain what is meant by ‘IT Governance’.
[5 marks]
(e) Implementation of Information systems in organsisations may raise ethical questions
despite the fact that they create good challenging opportunities for the personnel.
Describe the factors that you would consider in making up an ethical analysis for
proper use of Information systems resources within organisations.
[5 marks]

Question 4 [25 marks]

(a) List the steps that an IT manager must consider in evaluating a software tool in relation
to the organisation’s architecture and strategy.
[6 marks]
(b) Assume that you are the IT manager of a business organisation. The company wishes
to outsource its payroll activities including calculating the payroll and generating the
paychecks each month. You have been asked to advise the Head of Finance
Department on the practicability of contracting out such an activity. Explain the factors
you would take into account in making out your recommendation.
[5 marks]
(c) The strategic integration of Information Systems in organisations can be made by
applying the Nolan’s life cycle model. Describe briefly the stages proposed by the
Nolan model.
[6 marks]
(d) Describe the content of an Information System Plan.
[5 marks]
(e) E-Commerce has largely contributed towards globalisation allowing businesses to
create partners which may be located worldwide. Explain how e-commerce may
facilitate B2B transactions.
[3 marks]

END OF QUESTION PAPER

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