BIT 2203 STRATEGIC MANAGEMENT INFORMATION SYSTEMS KCA Past Paper

UNIVERSITY EXAMINATIONS: 2012/2013
SECOND YEAR EXAMINATION FOR THE BACHELOR OF
SCIENCE IN INFORMATION TECHNOLOGY
BIT 2203 STRATEGIC MANAGEMENT INFORMATION SYSTEMS
DATE: DECEMBER, 2012 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and any other TWO

QUESTION ONE
a) Relevant information is necessary if the management of an organization has to
perform the key functions of planning, control and decision making effectively.
Required:
i). Define the term “information”. (2 Marks)
ii). 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)
b) Explain five ways in which a manager can assess whether acquiring additional
information is worthwhile in making a particular decision. (5 Marks)
c) Citing suitable examples and specifying how the meaning is determined, describe five
types of data found in an information system. (5 Marks)
d) Giving examples, discuss how we can break down an organizational system into
subsystems (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
a) Define the following terms as applied in Management Information systems (6 Marks)
i). Strategy
ii). Competitive advantage
b) Discuss the value of information to a manager in an organization (4 Marks)
c) 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
state and briefly explain five symptoms of a system which is approaching the end of
its useful economic life. (5 Marks)
d) The management of ABC Company is in the process of developing a new
Information System. Discuss any five feasibility test that must be undertaken before
the development process gets underway. (5 Marks)
QUESTION THREE
One of the responsibilities of information systems managers which is often neglected is
to make users perceive information technology and information systems as powerful and
valuable tools but not the panacea for all problems in an organization. When applied
thoughtfully, these tools can bring important benefits to individuals, organizations and
customers. When these tools are misapplied they can waste tremendous amount of time,
effort and money.
Required:
a) Using a well labeled diagram differentiate between Information Technology and
Information Systems. (5 Marks)
b) Discuss five benefits of applying Information technology to both the organization as
well as to the individuals. (5 Marks)
c) Discuss the obstacles which make it difficult to successfully apply information
technology and Information Systems in the real world of business indicating how to
overcome each one of them (10 Marks)
QUESTION FOUR
a) Centralized Systems Vs decentralized systems are two strategies of integrating
Information Systems with Business Systems. Discuss the two strategies, giving two
advantages and two disadvantages for each (6 Marks)
b) Describe four strategic shifts that may result form the strategic positioning choices
(4 Marks)
c) Discuss four strategic positioning choices that managers can make in order to
achieve a competitive advantages over its competitors. (4 Marks)
d) Using a well labeled diagram illustrate the management hierarchy that exist in an
organization, the type of information systems applied at each level, the nature of
decisions made at each level as well as the information required to make those
decisions. (6 Marks)
QUESTION FIVE
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 elements of an outsourcing contract. (5 Marks)
d) Outline three advantages and two disadvantages of outsourcing. (5 Marks)

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