Management Information Systems
Task

Q1

b) What are the advantages of using Google Docs in Google Drive instead of e-mail and MS Word to collaborate on an assignment?

c) Do you think a large organization would use something like Google Docs as their official collaboration tool? Why or why not?

Q2. a) The Woolworths store in Joondalup needs to decide when (and how much) new stocks of Nestle Kit Kat share packets to order when its current stocks reach a re-order point.

i) Is this decision operational, managerial or strategic? Why?

ii) What type of information system (automated or augmentation or both) can be used in making the decision? Provide an example of an application (or software) that can be used for such a decision (using information from the Internet or elsewhere, state the name of the application, the vendor and provide the URL or the citation/reference):

e.g. {Note: this is an example of an answer only, it is NOT a correct answer} – For this strategic decision, an augmentation IS could/should be used as the decision making process is structured because…………. An example of an application that can be used is the Finance Planning module of Oracle Financial Services software (http://www.oracle.com/us/industries/financial- services/index.html)

b) Woolworths needs to decide whether to introduce a Woolworths Select brand of pure coconut water.

i) Is this decision operational, managerial or strategic? Why?

ii) What type of information system (automated or augmentation or both) can be used in making the decision? Provide an example of an application (or software) that can be used for such a decision (using information from the Internet or elsewhere, state the name of the application, the vendor and provide the URL or the citation/reference).

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Paper, Order, or Assignment Requirements

The financial model of the business case

Based on your research develop a spread-sheet model of your business costs over a 6 year period; assume a discount rate of 10 per cent. Your business model should include the following analysis to ascertain the financial viability of the project:
1. Payback period
2. Net present value (NPV)
3. Internal rate of return (IRR), and
4. Profitability index

HINTS: To obtain the payback period you would first need to calculate the cumulative net cash flow. Use the NPV and IRR functions provided in Microsoft Excel. You may need to search the Internet for information if you are not familiar with how to use these functions. Provide an explanation to the CEO to help him/her interpret your results and what they mean.

Sensitivity analysis for the business case

Using the results you obtained above as the base case, conduct a sensitivity analysis to examine the impact of the critical cost and benefit variables on the viability of smart shopping trolley system project. Provide three specific scenarios of consideration. You must clearly specify the basis of the three scenarios i.e. which critical cost variables they are examining in the sensitivity analysis. Provide a note to explain the results to the CEO.

As the Information Systems Manager you have been given the responsibility for implementing a new “smart shopping trolley” system for a grocery/supermarket chain. This smart shopping trolley technology will help customers in the store by adding up the cost of items at the same time that they are placed in their supermarket trolley. It will also help shoppers locate the items in the store, in the quantities needed, when they enter or select a particular recipe.
As you have studied Information Systems Strategy, you know that introducing a new information technology system won’t be successful unless you have assessed the impact on the business strategy and the four business functions (marketing, production, finance and HR) within the firm. You also need to do a cost benefit analysis of introducing the technology across 10 stores in different regions, if the pilot study in the first store is successful. Your report includes a presentation to the CEO.

some examples are like this
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Project Benefits
Labour cost reduction $1,700,000 $2,125,000 $3,400,000 $5,695,000 $8,500,000 $11,050,000
Theft/ Shop Lifting $1,275,000 $3,825,000 $4,926,250 $6,970,000 $11,050,000 $14,025,000
Cost efficient in stock upgradtion $510,000 $1,020,000 $3,147,000 $5,185,000 $7,650,000 $8,075,000
sale of Existing Equipment $0 $2,465,000 $4,030,250 $0 $0 $0
TOTAL BENEFITS $3,485,000 $9,435,000 $15,503,500 $17,850,000 $27,200,000 $33,150,000
Project Costs
Lost value, Current Product $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000
incremental Maintainence Cost $1,100,000 $700,000 $650,000 $650,000 $650,000 $650,000
Research And Development Cost $1,400,000 $900,000 $800,000 $800,000 $800,000 $800,000
project Management Cost $1,200,000 $900,000 $700,000 $700,000 $700,000 $700,000
Advertising Cost $1,000,000 $900,000 $650,000 $650,000 $650,000 $650,000
TOTAL COSTS $9,700,000 $8,400,000 $7,800,000 $7,800,000 $7,800,000 $7,800,000
EBITD ($6,215,000) $1,035,000 $7,703,500 $10,050,000 $19,400,000 $25,350,000
Less Depreciation $3,100,000 $3,100,000 $3,100,000 $3,100,000 $3,100,000 $3,100,000
EBIT ($9,315,000) ($2,065,000) $4,603,500 $6,950,000 $16,300,000 $22,250,000
Less Taxes ($2,794,500) ($619,500) $1,381,050 $2,085,000 $4,890,000 $6,675,000
Net Income ($6,520,500) ($1,445,500) $3,222,450 $4,865,000 $11,410,000 $15,575,000
Operating Cashflow ($3,420,500) $1,654,500 $6,322,450 $7,965,000 $14,510,000 $18,675,000
Initial Investment $18,600,000 $0 $0 $0 $0 $0 $0

Calculations of Depreciation
NOTE: Assuming that life of project is only 6 years as technolgy may change after 6 years and using straight line method following are the calculations

Depreciation=18,600,000/6= 3,100,000 Per Year

Year 0 1 2 3 4 5 6
CASH FLOW ($18,600,000) ($3,420,500) $1,654,500 $6,322,450 $7,965,000 $14,510,000 $18,675,000
INITIAL INVESTMENT $18,600,000

NET PRESENT VALUE INTERNAL RATE OF RETURN(IRR)
NPV= Present Value of future cash flow- Initial Investment
19%

Discount Rate PV of Future CF NPV PI
2% $41,278,056.65 $22,678,056.65 2.22
4% $37,355,172.44 $18,755,172.44 2.01
6% $33,870,943.46 $15,270,943.46 1.82
8% $30,768,494.85 $12,168,494.85 1.65
10% $27,999,281.39 $9,399,281.39 1.51
12% $25,521,735.80 $6,921,735.80 1.37
14% $23,300,156.60 $4,700,156.60 1.25
16% $21,303,789.79 $2,703,789.79 1.15
18% $19,506,067.70 $906,067.70 1.05
20% $17,883,976.02 ($716,023.98) 0.96

NPV GRAPH PROFITABILITY INDEX GRAPH

PAYBACK PERIOD
Year Cash Flow Cumulative Cash Flow
0 ($18,600,000) ($18,600,000)
1 ($3,420,500) ($22,020,500)
2 $1,654,500 ($20,366,000)
3 $6,322,450 ($14,043,550)
4 $7,965,000 ($6,078,550)
5 $14,510,000 $8,431,450
6 $18,675,000 $27,106,450

Year before full recovery+Remaining Balance to be recovered/cash flow in next year
Payback Period=

4.419

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Information Systems – BHP Billiton
Paper, Order, or Assignment Requirements

Students will investigate and report on IS and IT systems in an organisation of their choice (BHP Billiton), identifying risks and proposing mitigation strategies. Students should: define information systems
and discuss its role in the organisation; use various models presented in the subject to critique the
use of information systems according to business problems and characterise. Students are expected
to use and cite external literature extensively. Students should consider what risk means to the
contemporary organisation and how information systems both pose and mitigate risk. The report
should include an executive summary (not included in the word count), introduction and conclusion
to support their arguments.

a) Analyse the impact that Information Systems has on organisations and the consequent changes which have occurred to business managerial roles and competitive advantage
b) Analyse management information systems using a range of analytical approaches and their impact on business process engineering
c) Identify the elements that combine to form an information vision and

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Management Information Systems
Paper, Order, or Assignment Requirements

Read chapter 7-8-9 and answer one question of each chapter. The questions are below and will also be sent via email

1. Explain the five different networking elements creating a connected world.
2. You need to understand how the Internet works? How does email go from the
Empire State College to Boston University? Or how does a web page go from client
to server back to client?
Go to https://computer.howstuffworks.com/internet-infrastructure.htm for an overview of
how the Internet infrastructure works. There are some great diagrams and easy to
understand explanations. Write what was the most interesting you have learned and what
was the most surprising for you?
3. Research the Internet to find the reasons why people are required to turn off their
cell phones when they are on an airplane.
4. Develop a completely mobile and wireless class for the future. Take into
consideration the following:
How would lectures be given?·
How would questions be asked and answered?·
How would assignments be given and collected?·
How would group projects be performed?·
How would students separate work and nonwork time?·
How would exams be administered?·
Would this type of class be better or worse than a traditional class?·
Chapter 8
5. Describe supply chain management along with its associated benefits and
challenges.
6. Describe customer relationship management along with its associated benefits and
challenges.
Management Information Systems Assignment 3 Renata Kochut
2
7. Organizations can find their most valuable customers through “RFM” – Recency,
Frequency, and Monetary value
How recently a customer purchased items (Recency)·
How frequently a customer purchased items (Frequency)·
How much a customer spends on each purchase (Monetary Value)·
Form a CRM strategy for a new company that provides online tutoring. The strategy should
address how to gain new customers and how to keep existing customers.
Chapter 9
8. Describe the seven phases of the systems development life cycle.
9. Explain project management and identify the primary reasons projects fail.
10. There are many issues and obstacles to outsourcing such as time zone differences
and accents. Research the Internet to find examples of companies that have
experience issues with outsourcing and problems they have.
There is also a great video by Thomas Friedman on his famous book The World is Flat.
The video can be found at https://video.mit.edu/watch/the-world-is-flat-30-9321/. The
video lasts around 40 minutes.
11. The article below explains how the recession is impacting outsourcing and the top
countries.
https://images.businessweek.com/ss/09/02/0203_emerging_outsourcers/index.htm
Read the article and answer the following questions:
– What impact will outsourcing have on your career path?
– What can you do to compete in an outsourced industry or flat world?
– As a business leader what concerns do you have about outsourcing to these countries
and what can you do to alleviate these concerns?

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