Birla Institute of Technology & Science, Pilani

Distance Learning Programmes Division

Second Semester 2008-2009

Comprehensive Examination
(EC-2 Regular)

Course No. : BITS ZC471

Course Title : MANAGEMENT INFORMATION SYSTEMS
Nature of Exam : Open Book
Weightage : 60% No. of Pages =2
Duration : 3 Hours No. of Questions = 4
Date of Exam : 05/04/2009 (AN)
Note:
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
3. Mobile phones and computers of any kind should not be used inside the examination hall.
4. Use of any unfair means will result in severe disciplinary action.

Q.1 With the help of an example of your organization or any organization you are
familiar with explain how IT is an important BPR enabler. [10]

Q.2 Make a list of all the knowledge management methods used by your organization
(any other organization you are familiar with). Which are the most effective and
the least effective ones? [7 + 3 = 10]

Q.3 The three phases that Simon defined are the intelligence phase, where managers
identify and define a problem; the design phase, where they construct models to be
used and apply different scenarios; and the choice phase, where they select a
solution to be applied in the real world situation. In light of the above statement in
structured problem(programmed) the intelligence, design, and choice are all finite,
known variables. In unstructured problems, none of the three phases are structured,
requiring the use of intuitive thought processes. Give one example of each
structured and unstructured problems in the following three areas: finance,
marketing, and personnel administration. [5 + 5 + 5 = 15]

Q.4 Read the given case and answer the questions given below:
Federal Express :Redefines Its Services to Maintain Competitive Advantage

Federal Express (FedEx) with headquarters in Memphis, has a fleet of 40,000

ground vehicles and 600 airplanes. It generates annual revenues in excess of $11
billion. The firm also has an impressive information system architecture that is
driving FedEx’s transformation from a package delivery company to a strategic
provider of E-commerce, logistics, and other supply-chain services.

FedEx knows that building and leveraging its information systems and networks is
key to its success in the 21st century. As a result, it spends about $1 billion a year
on information technology. FedEx is not only reorganizing its internal operations
around a more flexible technology infrastructure, but it’s also attracting new
customers and in many cases locking in existing customers with an unprecedented
level of technology integration.

BITS ZC471 (EC-2 Regular) Page 1 of 2

BITS ZC471 (EC-2 Regular) Second Semester 2008-2009 Page 2

Although FedEx pioneered Web package-tracking capabilities, these have now become
an industry norm rather than a competitive advantage. All major transportation and
delivery companies, from United Parcel Service to Ryder System, are making major
investments in information technology. Where FedEx is different is that it is using
information technology to transform itself from a delivery service to a vital link in
today’s networked and increasingly electronic economy. FedEx seeks to become a fully
integrated corporate partner that picks up, transports, warehouses, and delivers all of a
company’s finished goods from the factory floor to the customer’s receiving dock – with
status data available every step of the way.

Large companies such as National Semiconductor Corp. have hired FedEx to handle most
of their warehousing and distribution operations. Today, virtually all of National
Semiconductor’s products, manufactured in Asia by three National Semiconductor
factories and three subcontractors, are shipped directly to a FedEx distribution warehouse
in Singapore. National Semiconductor’s order-processing application, running on an
IBM mainframe in Santa Clara, California sends a daily batch of orders directly to
FedEx’s inventory-management system running on a Tandem computer in Memphis. At
this point, FedEx takes over – the orders are forwarded to the FedEx warehouse
management application in Singapore, where they are fulfilled in a FedEx warehouse and
shipped directly to customers via FedEx. Except for receiving a confirmation that the
order was filled, National Semiconductor is done with the order transactions. National
Semiconductor has gained significant benefits: the average customer delivery time has
been reduced from four weeks to seven days, distribution costs have been cut from 2.9%
to 1.2% of sales. In addition, seven regional warehouses in the United States, Asia, and
Europe were closed saving National Semiconductor costs for warehouse space and
employees.

The tight information technology links between FedEx and National Semiconductor
exemplify FedEx’s strategy of technology integration with its corporate customers.
FedEx stores the product, operates the warehouse, and processes the order and then hands
it off to the carrier – which, of course, is FedEx.

FedEx is not alone in using information technology to move beyond package delivery.
UPS, which has spent $9 billion on IT since 1986, has already formed five alliances to
help disseminate its logistics software among E-commerce users with UPS providing
order-entry, catalog, and inventory management. Ryder System has formed an alliance
with IBM and Andersen Consulting to deliver logistics services to customers. IBM will
lend technology expertise and Andersen its consulting personnel to Ryder projects
worldwide.

Discussion Questions

4.1. Explain strategic competitive advantage with the help of the above case. [10]

4.2. How has information technology helped the company to gain and maintain a
strategic competitive advantage? [15]

*********

BITS ZC471 (EC-2 Regular) Page 2 of 2