12 May HOW WOULD YOU JUSTIFY FUNDING SUCH A PROJECT AND CONVINCE SENIOR MANAGEMENT TO PROCEED WITH IT?
This is a Take-Home Final Exam. It is due on December 6th at 7:00 pm. Late exams will lose
points. Answers should be typed, double-spaced and include the questions (Not the Minicase
Description). two pages each question
1. What are the challenges unique to inter-organizational systems? How would you address these
challenges? What are the advantages presented by such systems? Discuss your answer within the
framework of ‘supply chain management.’
2. Define the concept of a digital economy? What are the forces that have led to the existence
of such an economy? How do you see this progressing in the near and longer term future?
3. Discuss the role of client departments in an organization (in functional areas such as
Accounting, Marketing, Sales, Human Resources, Engineering, or Manufacturing) with respect to
Information Technology. Define and discuss at least three issues/challenges related to this
role in modern organizations. How would you address these issues/challenges?
4. Describe Decision Support Systems and Executive Information Systems. How do these systems
contribute to the decision making process in business organizations. Discuss how these may be
used in supply change management and customer relationship management.
5. Write a short essay to address the major issues in the following minicase and to recommend
how to proceed based upon your synthesis of the principles covered in this course.
Minicase Description. You are employed by a large, multinational firm engaged in light
manufacturing and fabrication of transportation products. Most of the products for this firm
are custom built in large lots based upon unique customer specifications. One of the key
employee roles in the selling and manufacturing process is that of the ‘buyer.’ Buyers track
markets for raw materials and subassemblies for each customer’s order in order to determine a
price to be quoted for that customer. Once a price is agreed, the buyer purchases the needed
materials and coordinates the manufacturing necessary to fulfill the order. Because prices
fluctuate, any breakdown in the currency of information relating to the costs of raw materials
and subassemblies can be very expensive for the firm. Accuracy and timeliness of this
information is critical for ongoing success of this business, and failures in this area have
sometimes been a serious problem in the past.
You are working on a project to develop and implement a new technology to improve buyer access
to critical information, a leading edge data warehousing technology that you believe will
catapult the firm well ahead of its competitors and yield significant competitive advantage in
its businesses. A few smaller competitors have implemented similar technology (that you are
aware of) and they have had mixed success. But you feel that your firm can learn from their
mistakes and you are anxious to proceed. This new technology appears to have huge ‘upside
potential’ for your firm.
The problem is that most of the benefits are not tangible. They are very difficult to quantify
on the front end of the project; for example, ‘improve operational efficiency’ or ‘enhance
buyer decision-making’ or maybe ‘strengthen customer responsiveness,’ or the classic ‘improve
productivity.’ Your management wants to see tangible benefits (i.e., real dollar savings to
offset real systems development expenses) prior to approving funding for your project. Still,
you are convinced that the intangible benefits, once realized, will far outweigh developmental
expenses, if you could only get your management to recognize the potential, take a chance, and
proceed with the project.
Discussion Questions. How would you make a business case for developing potentially highly
profitable new systems technologies that are based primarily on intangible benefits? How would
you justify funding such a project and convince senior management to proceed with it?
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