Q1: State whether true or false, and correct the statement if false:

A) Object-oriented development is not one the most prominent methodologies for modelling and
designing information system
Solution: False
The most prominent methodologies for modelling and designing systems are:
A- Object-oriented Development Approaches:
 Uses the object as the basic unit of systems analysis and design.
 Combines data and the specific processes that operate on those data.
 Data encapsulated in object can be accessed and modified by operations or methods associated
with that object.
 The modelling is based on the concepts of class and inheritance.
 More iterative and incremental than traditional structured development.
 Objects belong to a certain class and have features of that class.
 Objects may inherit structures and behaviors of a more general, ancestor class.
 As objects are reusable, OOD can potentially reduce the time and cost of development.
 Systems analysis: Interactions between system and users analyzed to identify objects
 Design phase: Describes how objects will behave and interact; grouped into classes, subclasses
and hierarchies
 Implementation: Some classes may be reused from existing library of classes, others created or
inherited.
B- Structured Approaches:
 Refers to the fact that the techniques are step-by-step, with each step building on the
Previous one.
 A top-down, progressing from the highest, most abstract level to the lowest level of
Detail.
 Process-oriented focusing on modelling processes or actions that manipulate data.
 Separate data from processes.
 E.g., Data flow diagram
B) Web services can exchange information between two different systems regardless of the
operating system or programming languages on which the systems are based.
Solution: True

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Web services:
• Reusable software components that use open, Internet standards (platform independent).
• Enable applications to communicate with no custom programming required to share data and
services.
• Software components deliverable over Internet.
• Can engage other Web services for more complex transactions, such as checking credit,
procurement, or ordering products.
C) Interpretations of Moore’s law assert that data storage costs decrease by 50% every 18
months.
Solution: False
Moore’s law asserts that:
 The computing power doubles every 18 months.
 The price of computing falls by half every 18 months.
 Packing more transistors into a tiny microprocessor has exponentially increased processing
power.
The law of Mass Digital Storage asserts that:
 The amount of data being stored each year doubles.
Metcalfe’s Law and network economics
 Value or power of a network grows exponentially as a function of the number of network
members (Block chain as example).
 As network members increase, more people want to use it (demand for network access
increases).
D) Extranets is a limited area of intranet designed for access by authorized vendors and
customers
Solution: False
 Intranets link different systems and networks within the firm.
 Extranets is private intranets extended to authorized users outside the organization firms using such
networks to coordinate their activities with other firms for making purchases, improving
coordination of external supply chain processes and other inter-organizational work.
E) Computer-aided software engineering (CASE) are software tools to automate development and
reduce repetitive work

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Solution: True
Computer aided software engineering (CASE):
 Software tools to automate development and reduce repetitive work, including:
 Graphics facilities for producing charts and diagrams
 Screen and report generators, reporting facilities
 Analysis and checking tools
 Data dictionaries
 Code and documentation generators
 May be front-end (HTML, JavaScript) or back-end (Java, Python, Net.) tools.
 Support iterative design by automating revisions and changes and providing prototyping
facilities
F) Component-based development are groups of objects that provide software for common
functions such as online ordering capability and can be combined to create a large-scale business
Solution: True
Save time and money when building large and complex systems:
 Groups of objects that provide software for common functions such as online ordering capability and
can be combined to create large-scale business applications.

Q2:
a) List and describe the infrastructure components and how a firm manage it?
1. Computer Hardware Platforms ( 9% )
 Including Client machines (Desktop PCs, mobile computing devices – PDAs, laptops), Servers
(Blade servers: ultrathin computers stored in racks) and Mainframes (IBM mainframe equivalent to
thousands of blade servers).

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 The marketplace for computer hardware has increasingly become concentrated in top firms such as
IBM, HP, Dell, and Sun Microsystems (acquired by Oracle), and three chip producers: Intel, AMD,
and IBM.
2. Operating System Platforms ( 7% )
 The main operating systems for corporate servers are Microsoft Windows Server, UNIX, and Linux
as an inexpensive and robust open source.
 Operating system Client level: 95% run Microsoft Windows (XP, 2000, CE, etc.).
 Operating system Server level: 85% run UNIX or Linux.
3. Enterprise Software Applications ( 19% )
 The largest providers of enterprise application software are SAP and Oracle.
 Also included in this category is middleware software providers such as BEA.
4. Data Management and Storage ( 3% )
 Database software: IBM, Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise),
MySQL.
Database management software is responsible for organizing and managing the firm’s data so that they
can be efficiently accessed and used.
 Physical data storage: EMC Corp (large-scale systems), Seagate, Maxtor, Western Digital.
 Storage area networks: connect multiple storage devices on dedicated network.
5. Networking/Telecommunications Platforms ( 50% of U.S. expenditures )
 Telecommunication services:
Telecommunications, cable, telephone Company charges that offer voice, wide area networking, wireless
services, and Internet access.
Example: MCI, AT&T, regional providers (Verizon)
 Network operating systems:
Windows Server, Novell, Linux, and UNIX.
 Network hardware providers:
Cisco, Lucent, Nortel, and Juniper Networks.
6. Internet Platforms ( 2% )
 Internet platforms include (hardware, software, and management services) to support firm’s website,
including web hosting services, routers, and cabling or wireless equipment.
 Internet hardware server market: IBM, Dell and HP.
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 Major web software application development tools and suites:
─ By Microsoft (Microsoft Visual Studio and the Microsoft .NET platform)
─ By IBM (WebSphere).
─ By Oracle-Sun (Java)
─ Other independent software developers (Macromedia/Adobe, Real Media).
7. Consulting and system integration services ( 9% )
 The large firms do not have resources for full range of support for new, complex infrastructure
therefore, leading consulting firms providing this expertise through Software integration that Ensures
new infrastructure work with legacy systems.
 Legacy systems are generally older transaction processing systems (TPS) created for mainframe
computers that continue to be used to avoid the high cost of replacing or redesigning them.
 Leading consulting firms providing this expertise include Accenture and PWC consulting.
b) Describe Grid computing and Edge computing?
1) Grid Computing :
 Connects geographically remote computers into a single network to combine processing power and
create virtual supercomputer.
 Provides cost savings, speed, agility
2) Edge Computing :
 Multitier, load-balancing for Web-based applications.
 Significant parts of processing are performed by cheap servers located nearby user.
 Increases response time and lowers technology costs.
 Involves the use of the Internet to balance the processing load of enterprise platforms across
the client and edge computing platform.

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c) Explain how businesses can benefit from autonomic computing and virtualization?
Autonomic computing:
Systems that can configure, optimize themselves, heal themselves when broken, and protect
themselves from outside intruders so can,
─ Reduced TCO (Total Cost of Ownership).
─ Breakdowns will be less frequent, thereby drastically reducing maintenance costs.
─ Fewer personnel will be required to manage the systems.
─ Reduce deployment and maintenance cost, time and increased stability of IT systems through
automation.
─ Provides server consolidation to maximize system availability, and minimizes cost and
human effort to manage large server farms.
Example: Self-updating antivirus software
─ Apple and Microsoft Operating systems use automatic updates.
Virtualization:
Presenting set of computing resources (such as computing power or data storage) so, they can be
accessed in ways not restricted by physical configuration or geographic location.
─ Enables a single physical resource (such as a server or a storage device) to appear to the user
as multiple logical resources (Multi Processors).
─ Reducing technology costs by providing the ability to host multiple systems on a single
physical machine.

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─ Higher utilization rates translate into fewer computers required to process the same amount
of work.
─ Server virtualization: Running more than one operating system at same time on single
machine.
─ Example: VMware, which is software vendor for Windows and Linux servers.

Q3:
a) Define a supply chain and explain how the supply chain management system helps reduce
the bullwhip effect and how they provide value for a business?
1-Supply chain:
Is a network of organizations and business processes for?
-Procuring raw materials.
-Transforming them into intermediate and finished products.
-Distributing finished products to customers.
Where materials, information and payments flow in both directions, so The Supply chain is divided
into:
A-The upstream portion of the supply chain:
Which include the company’s suppliers, the suppliers’ suppliers, and the processes for managing
relationships with them.
B-The downstream portion:
Consists of the organizations and processes for distributing and delivering products to the final
customers.
**Each Supply Chain includes secondary and tertiary suppliers.

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2- Bullwhip effect:
In which information about the demand for a product is distorted as it passes from one entity to the next
across the supply chain as successive members in supply chain, causing excess stockpiling of inventory,
warehousing, shipping costs, estimate it.
Inefficiencies in the supply chain, that caused by inaccurate or untimely information (Uncertain
product demand or late shipments from suppliers, in some cases, Waste up to 25% of operating
cost.

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 3-Supply chain management applications (Two main categories):
a. Supply chain planning systems
• Demand planning, Order planning, advanced scheduling and manufacturing planning, Distribution
planning and Transportation planning.
b. Supply chain execution systems
Manage flow of products through distribution centers and warehouses to ensure products delivered to
right locations in most efficient manner.
• Order commitments, Final production, Replenishment, Distribution management and Reverse
distribution.
4- Business value of supply chain management systems
• Matching supply to demand and reducing inventory levels
• Improving delivery service and speeding product time to market
• Using assets more effectively
• Increasing sales by assuring availability of products
• Increased profitability
• Supply chain costs can approach 75% of total operating budgets.
b) How do customer service management systems help firms achieve customer intimacy
Customer relationship management (CRM) systems
1. Capture and integrate customer data from all over the organization,
2. consolidate the data, analyze the data, and then
3. distribute the results to various systems and customer touch points (contact points) across the
enterprise such as telephone, e-mail, customer service desk, conventional mail, Facebook, Twitter,
Web site, wireless device.
Importance of CRM:
 Provide single enterprise view of customers.
 Provide customers single view of enterprise at touch points.
 Provide analytical tools for determining value, loyalty, profitability of customers
 Assist in acquiring new customers, providing better service and support to customers, customize
offerings to customer preferences, provide ongoing value to retain profitable customers.
CRM software
 Ranges from niche tools to large-scale enterprise applications.

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 More comprehensive CRM packages have:
 Partner relationship management (PRM) modules: Enhances collaboration between company
and selling partners.
 Employee relationship management (ERM) modules : Deals with employee issues closely
related to CRM, e.g. setting objectives, employee performance management.
 Typically include tools for sales, customer service, and marketing.
Sales force automation (SFA) modules
 Help sales staff increase productivity by focusing sales efforts on the most profitable customers,
those who are good candidates for sales and services.
 Enable sales, marketing, and shipping departments to share customer and prospect information easily.
 Increases each salesperson’s efficiency by reducing the cost per sale as well as the cost of acquiring
new customers and retaining old ones.
Customer Service modules
 They have capabilities for assigning and managing customer service requests.
 E.g. managing advice phone lines, Web site support.
Marketing modules
 CRM systems support direct-marketing campaigns across multiple channels, including e-mail, direct
mail, telephone, the Web, and wireless messages by providing capabilities to capture prospect and
customer data, provide product and service information, qualify leads for targeted marketing, and
schedule and track direct-marketing mailings or email.
 include tools for analyzing marketing and customer data, identifying profitable and unprofitable
customers, designing products and services to satisfy specific customer needs and interests, and
identifying opportunities for cross-selling.
Business value of CRM systems
o Increased customer satisfaction
o Reduced direct marketing costs
o More effective marketing
o Lower costs for customer acquisition and retention
o Increased sales revenue
o By identifying profitable customers and segments for focused marketing and cross-selling

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o Reduced churn rate (number of customers who stop using or purchasing products or services).

c) Distinguish between operational and analytical CRM? List and describe the challenges posed by
enterprise applications.
There are two main categories of CRM Systems:
a) Operational CRM
Includes customer-facing applications, such as tools for sales force automation, call center and customer
service support, and marketing automation.
b) Analytical CRM
Includes applications that analyze customer data Based on data warehouses consolidating data from
operational CRM systems and customer touch points
One important output: Customer lifetime value (CLTV) (Value based on revenue produced by a
customer, expenses incurred in acquiring and servicing customer, and expected life of relationship
between customer and company).
c) The challenges posed by enterprise applications.
 Expensive to purchase and implement, Total implementation cost may be four to five times of cost
of software.
 Deep-seated technological change.
 Fundamental changes to organization, business processes:

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  New functions and responsibilities for employees.
 SCM systems require business process change for multiple organizations.
 Require understanding firm’s data and cleansing data.
 Enterprise applications also introduce “switching costs.” Once you adopt an enterprise application
from a single vendor, such as SAP, Oracle, or others, it is very costly to switch vendors, and your
firm becomes dependent on the vendor to upgrade its product and maintain your installation.
 Require understanding firm’s data and cleansing data.

 Analytical CRM uses a customer data warehouse and tools to analyze customer data collected
from the firm’s customer touch points and from other sources.

Q4:
a) Main and unique features of E-commerce and its usefulness for companies.
E-commerce:

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Digitally enabled commercial transactions between and among organizations and individuals, primarily
over Internet include transfer of both (Money and Data) to execute the transactions needed.
Seven unique features of E-Commerce:
1. Ubiquity
Internet technology available anytime and everywhere: work, home, mobile devices.
Business significance:
Marketplace is extended beyond traditional boundaries and is removed from temporal and geographic
location.
Shopping can take place anywhere.
Customer convenience is enhanced.
Shopping costs are reduced.
2. Global Reach
Technology reaches across national boundaries, around Earth.
Business significance:
Commerce enabled across cultural and national boundaries seamlessly, without modification.
Marketspace includes potentially billions of consumers and millions of businesses worldwide.
3. Universal Standards
There is one set of Internet technology standards.
Business significance:
Disparate computer systems can easily communicate.
Brings lower market entry costs (costs merchants pay to bring goods to market).
Lowers search costs for consumers.
4. Richness
Video, audio, text messages are possible
Business significance:
Video, audio, text integrated into single marketing message and experience.
5. Interactivity
The technology works through interaction with users.
Business significance:

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Consumers engaged in dialog that adjusts to individual; consumer is co-participant in delivering goods
to market.
6. Information Density
Technology reduces information costs and raises quality.
Business significance:
Information becomes plentiful, cheap, and more accurate.
Increases price transparency and cost transparency.
Enables price discrimination.
7. Personalization/Customization
E-commerce technologies permit personalization:
Technology allows personalized messages to be delivered to individuals as well as groups.
The technology also permits customization:
Changing the delivered product or service based on a user’s preferences or prior behavior.
Business significance:
Personalization of marketing messages and customization of products and services are based on
individual characteristics.
b) List and explain the core activities in the systems development process.
Building a system can be broken down into six core activities that go into producing an information
system solution to an organizational problem or opportunity:
1. Systems analysis
Is the analysis of a problem that a firm tries to solve with an information system.
It consists of defining the problem, identifying its causes, specifying the solution (Written systems
proposal report describes costs and benefits of each alternative solution) and identifying the information
requirements that must be met by a system solution (Who needs what information where, when, and
how).
The systems analysis also includes a feasibility study that determines whether the proposed solution is
expected to be a good investment, whether the technology and skill needed for the system is available.
2. Systems Design
Describe system specifications that will deliver functions identified during systems analysis.
Should address all managerial, organizational, and technological components of system solution.

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The Role of End Users: Insufficient user involvement in design effort is major cause of system
failure
User information requirements drive the entire system-building effort.
Users must have sufficient control over the design process to ensure that the system reflects their
business priorities and information needs.
3. Programming
During the programming stage, system specifications that were prepared during the design stage are
translated into software program code.
Software may be purchased, leased, or outsourced instead
4. Testing To ensure system produces right results
Unit testing, or program testing: Tests each program in system separately.
System testing: Tests functioning of system as a whole.
Acceptance testing: Makes sure system is ready to be used in production setting.
Test plan: includes all of the preparations for the series of tests we have just described.
5. Conversion
Is the process of changing from the old system to the new system.
Parallel strategy: both the old system and its potential replacement are run together for a time until
everyone is assured that the new one functions correctly.
Direct cutover strategy: replaces the old system entirely with the new system on an appointed day.
The pilot study strategy: introduces the new system to only a limited area of the organization, such as a
single department or operating unit.
The phased approach strategy: introduces the new system in stages, either by functions or By
organizational units, Such as Payroll system for wages then for salaries.
Moving from an old system to a new one requires that end users be trained to use the new system.
Detailed documentation showing how the system works from both a technical and end-user standpoint is
finalized during conversion time for use in training and everyday operations.
6. Production and Maintenance
System reviewed to determine if any revisions needed.
May prepare formal post implementation audit document.

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Changes in hardware, software, documentation, or procedures to a production system to correct errors,
meet new requirements, or improve processing efficiency are termed maintenance.
60 percent of maintenance work:
User enhancements
Improving documentation
Recoding system components for greater processing efficiency.
C) Define rapid application development (RAD) and joint application design (JAD) and explain
how they can speed up system building
Rapid application development (RAD)
Describe this process of creating workable systems in a very short period.
RAD can include the use of:
Visual programming and other tools for building graphical user interfaces
Iterative prototyping of key system elements
The automation of program code generation
Close teamwork among end users and information systems specialists.
Joint application design (JAD)
A technique used to accelerate the generation of information requirements and to develop the initial
systems design.
JAD brings end users and information systems specialists together in an interactive session to discuss
the system’s design.
Properly prepared and facilitated, JAD sessions can significantly speed up the design phase and involve
users at an intense level.

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