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Marking Scheme AACS4794 MANAGEMENT INFORMATION SYSTEMS

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ACADEMIC YEAR 2010/2011

WRITTEN TEST

QUESTION 1


(a) Discuss the GHLs system used by IKEA in managing their business? (6 marks)

GHL Systems' solutions are designed to ensure the complexity payment
infrastructure are always up and running.
GHL Systems' Transaction Concentrators were implemented to provide IKEA
with tactical solutions and alternatives when problem arises, thus
ensuring that its business operations would continue without a hitch.
GHL System's ESLP proprietary protocol allows the transactions to be
carried at high speed through the network to ensure fast and smooth
communications for Ikea.
GHL Systems was able to build a highly available network for the EDC
terminals in IKEA. With the systems such as ISDN backup dialing to routers,
IKEA was connected to the bank, thus speeding the process of billing and
payment.

With GHL systems, Ikea will be able to have a smooth and fast payment
system that will speeds up the transaction processing and satisfied
customers.
Max 6
marks






(b) Discuss THREE (3) challenges of credit card payment facilities may faced by the IKEA
management. (9 marks)
Discuss ANY 3 challenges:

(a). Strategic business: Use of IT for competition, effectiveness, and
digitally enabled

Changes in organizational behaviour develop new business models and
eliminate the inefficiencies of outdated organizational structured.
Example: Ikea has to redesign the organization to enabled credit card
systems acceptance in different floor such as food court on top floor and
checkout counter on lower floor
(b). Globalization: Understanding of business and system requirements of
MAX 9%
Answers with
descriptions
(Each 3%)

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Marking Scheme AACS4794 MANAGEMENT INFORMATION SYSTEMS



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a global economic environment

Develop integrated information systems, business must develop global
hardware, software and communication standards.
Example: Ikea wants to connect their credit card system to the bank for
processing. So by using ESLP protocol and the RS485 interface to build a
highly available network for the EDC terminals in Ikea.

(c). Information architecture and IT infrastructure: Rapid changing of
business conditions and technologies

Ensuring that the information architecture meets current and future
business requirements.
Example: Communication infrastructure with high speed of connection
using leased line to the bank and ISDN dialup for the backup. In addition,
transaction concentrator is used with GPRS connection as an additional
backup connectivity.
(d). Information systems investment: Determination of information system
business value

Use of IT to design, produce, deliver and maintain new products.
Example: Ikea has invested in GHL System's ESLP proprietary protocol that
allows the transactions to be carried at high speed through the network.
Ikea also invested in ISDN dialup as the main method of backup for digital
leased lines. By investing in the EDC terminals that is linked in a local area
network to a transaction concentrator, Ikea is able to save the cost of 36
terminals.

(e). Responsibility and control: Security and Control
Ensuring secure, reliable and accurate information systems are developed.
Example: GHL system managed to design a highly available, robust and
dependable system that was capable of handling the heavy transaction
loads generated during IKEAs first week of operations. The implementation
team managed to activate the GPRS backup and communications was re-
established within 20 minutes when a disaster struck on the opening day.

- Students descriptions may vary.
- Examiners may use their discretion in allocating marks for the
explanations given by students

Answers with details of explanation.
Answers with lack of explanation.
Answers with very little of explanation and not related to the case study.
No explanation of the answers.




3%
2%
1%
0%


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Marking Scheme AACS4794 MANAGEMENT INFORMATION SYSTEMS



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(c) Charge-back system is a method by which organizational units pay for the services they
receive. In your opinion, what are the costs might chargeable on IKEA?
(4 marks)
Staff hours
Staff time is the largest charge for the systems development or
system maintenance.
The IS unit charges is either a fixed hourly rate or hourly rates that
differ according to the level of expertise being provided.
The IT/IS team can charge Ikea for the staff time every time they
are called to maintain the systems.
Computer hardware
Include charges of PCs, printers, network equipments, servers, etc.
For Ikea, the EDC terminals can be leased and can be charged for
the rental of using the device.
Computer time
The charge for the use of mainframe computers or computers on
loan.
The systems that support the GPRS backup and communications
can be charged to Ikea when the ISDN connection failed.

MAX 4%
Answers with
descriptions





- Students descriptions may vary.
- Examiners may use their discretion in allocating marks for the
explanations given by students

Answers with details of explanation.
Answers with lack of explanation.
Answers without related to the case study.
Answers with very little of explanation.
No explanation of the answers.




4%
3%
2%
1%
0%


(d) What are the possible intangible benefits of IKEA by implementing the GHLs System? (6
marks)
Possible intangible benefits of IKEA:
Competitive advantage avoid down service in using card payment
system. IKEA has secured the customers that credit card system is
always available as there are different levels of backup for the
communication system.
Company goodwill / image better coordination and facilities in
several of payment methods to generate profits. Customers are able
to pay cash and credit card for the products purchased.
MAX 6%
Answers with
descriptions





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Marking Scheme AACS4794 MANAGEMENT INFORMATION SYSTEMS



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Customer satisfaction better security of credit card facilities.
Customers do have to worry about the not being able to pay by credit
card
- Students descriptions may vary.
- Examiners may use their discretion in allocating marks for the
explanations given by students

Answers with details of explanation.
Answers with lack of explanation.
Answers without related to the case study.
Answers with very little of explanation.
No explanation of the answers.




6%
4% - 5%
2% - 3%
1%
0%

[Total: 25 marks]