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Chapter 13 Building Information Systems 551

• Describe the advantages and disadvantages of • Explain how component-based development
using outsourcing for building information and Web services help firms build and enhance
systems. their information systems.
• Explain the features of mobile application
5. What are new approaches for system building development and responsive Web design.
in the digital firm era?
• Define rapid application development (RAD)
and agile development and explain how they
can speed up system-building.

Discussion Questions

1. Why is selecting a systems development 3. Why is is so important to understand how a
approach an important business decision? Who business process works when trying to develop a
should participate in the selection process? new information system?
2. Some have said that the best way to reduce
systems development costs is to use application
software packages or fourth-generation tools.
Do you agree? Why or why not?

Hands-On MIS Projects

The projects in this section give you hands-on experience analyzing business processes, designing and
building a customer system for auto sales, and analyzing Web site information requirements.
Management Decision Problems

1. For an additional fee, a customer purchasing a Sears Roebuck appliance, such as a washing machine, can
purchase a three-year service contract. The contract provides free repair service and parts for the specified
appliance using an authorized Sears service provider. When a person with a Sears service contract needs to
repair an appliance, such as a washing machine, he or she calls the Sears Repairs & Parts department to
schedule an appointment. The department makes the appointment and gives the caller the date and
approximate time of the appointment. The repair technician arrives during the designated time framework
and diagnoses the problem. If the problem is caused by a faulty part, the technician either replaces the part
if he is carrying the part with him or orders the replacement part from Sears. If the part is not in stock at
Sears, Sears orders the part and gives the customer an approximate time when the part will arrive. The part
is shipped directly to the customer. After the part has arrived, the customer must call Sears to schedule a
second appointment for a repair technician to replace the ordered part. This process is very lengthy. It may
take two weeks to schedule the first repair visit, another two weeks to order and receive the required part,
and another week to schedule a second repair visit after the ordered part has been received.
• Diagram the existing process.
• What is the impact of the existing process on Sears’ operational efficiency and customer relationships?
• What changes could be made to make this process more efficient? How could information systems support
these changes? Diagram the new improved process.

2. Management at your agricultural chemicals corporation has been dissatisfied with production planning.
Production plans are created using best guesses of demand for each product, which are based on how much
of each product has been ordered in the past. If a customer places an unexpected order or requests a change
to an existing order after it has been placed, there is no way to adjust production plans. The company may
have to tell customers it can’t fill their orders, or it may run up extra costs maintaining additional inventory
to prevent stock-outs.

MIS_13_Ch_13 global.indd 551 1/17/2013 2:31:25 PM