UNIVERSITY EXAMINATIONS: 2011/2012
YEAR II EXAMINATION FOR THE BACHELOR OF SCIENCE IN
INFORMATION TECHNOLOGY
BIT 2203 STRATEGIC MANAGEMENT INFORMATION SYSTEMS
DATE: APRIL 2012 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One and Any other Two Questions
QUESTION ONE: (COMPULSORY)
a) The management of XYZ Company is in the process of developing a new Information System.
Discuss the four feasibility test that must be undertaken before the development process gets
underway. (8 Marks)
b) An obsolete information system could be defined as one that has reached the end of the economic
useful life and is due for replacement by another information system. Discuss five symptoms of a
system which is approaching the end of its useful economic life. (5 Marks)
c) Frameworks for integrating IS strategies with business strategies may be considered either as
Centralized or Decentralized. Differentiate between the two frameworks (4 Marks)
d) Discuss five key challenges faced by management in building, operating and maintaining
information systems in organizations. (5 Marks)
e) Every organization exists within an environment that is also known as the society. Describe the
elements that make up the organizations environment showing how each element influences the
organization. (8 Marks)
QUESTION TWO
One approach to selection and acquisition of an Information System is by outsourcing the operations
from an external vendor. Required
a) State and explain four types of outsourcing. (4 Marks)
b) Describe three levels of service provision from an external vendor. (6 Marks)
c) Discuss the element of an outsourcing contract. (5 Marks)
d) Outline three advantages and two disadvantages of outsourcing. (5 Marks)
QUESTION THREE
a) Define the following terms (6Marks)
i. Strategy
ii. Strategic management
iii. Competitive advantage
b) Discuss six strategic positioning choices which the strategic managers can make in order to
maintain a competitive advantage in their organization. (6 Marks)
c) Describe four strategic shifts that may result from the strategic positioning choices. (4 Marks)
d) One important activity of strategic managers is strategic planning. Describe four characteristics of
this activity. (4 Marks)
QUESTION FOUR
a) Differentiate between the following. (4 Marks)
i. Data and Information
ii. Information Technology and Information Systems
b) Discuss five characteristics that information should possess in order to aid management in the
performance of the key functions of planning, control and decision making. (5 Marks)
c) With the help of a diagram discuss the knowledge hierarchy and show its importance to an
organization. (6 Marks)
d) Discuss five benefits of introducing Information Technology into the organization. (5 Marks)
QUESTION FIVE
a) Using a diagram describe the three levels of management that exist in all organization, explaining
the nature of decisions made at each level as well as information need to make those decisions
(6 Marks)
b) State and explain four key attributes of strategic management. (4 Marks)
c) Using the concept of the general systems theory, describe the main management functions in a
business system and highlight the informational requirements of each function. (5 Marks)
d) Systems are built from subsystems; there are two approaches to building systems from subsystems
which are decomposition and clustering. Giving example, describe each one of them. (5 Marks)
