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a. How does the image-processing system at USAA add value to the organization?
b. How do the remote deposit capture and mobile banking system at USAA add
value to the organization?
c. Do an Internet search and find out what other advancements USAA has
introduced. Write a brief paragraph on each new application or other
newsworthy item you find (maximum limit of three applications or items).
1.4 Match the description in the right column with the information characteristic in the left column.
F 1. Relevant
a. The report was carefully designed so that the data contained on the
report became information to the reader
E, C 2. Reliable
b. The manager was working one weekend and needed to find some
information about production requests for a certain customer. He was
able to find the report on the company’s network.
D 3. Complete
c. The data on a report was checked by two clerks working independently
G, B 4. Timely
d. An accounts receivable aging report that included all customer accounts
A 5. Understandable
e. A report checked by 3 different people for accuracy
C 6. Verifiable
f. An accounts receivable aging report used in credit granting decisions
B 7. Accessible
g. An accounts receivable aging report was received before the credit
manager had to make a decision whether to extend customer credit
1.5 The Howard Leasing Company
Student solutions will vary based on their background and education. The following is one possible
solution.
a. What is an accounts receivable aging report?
b. Why is an accounts receivable aging report needed for an audit?
c. What is an accounts receivable aging report used for in normal company operations?
d. What data will you need to prepare the report?
e. Where will you collect the data you need to prepare the report?
f. How will you collect the necessary data for the report?
g. What will the report look like (i.e., how will you organize the data collected to create the
information your supervisor needs for the audit)? Prepare an accounts receivable aging
report in Excel or another spreadsheet package.
Customer
Number
Customer
Name
0-30 Days
Outstanding
31-60 Days
Outstanding
61-90 Days
Outstanding
91+ Days
Outstanding
h. How will you distribute the report? How many copies will you make? Who should receive
the copies? What security features will you implement?
1.6 The use of IT at Tesco
a. What kind of information do you think Tesco gathers?
b. How do you think Tesco has motivated over 12 million customers to sign up for its
Clubcard program?
c. What can Tesco accomplish with the Clubcard data it collects? Think in term of strategy
and competitive advantage.
d. What are some of the disadvantages to the Clubcard program?
Some critics believe that loyalty card programs
e. Do an Internet search to find out how Tesco is doing in comparison to Walmart
and other grocers and retailers. Write a few paragraphs explaining your findings.
Source: Rohwedder, Cecille. “No.1 Retailer in Britain Uses ‘Clubcard’ to thwart Walmart,” Wall Street
Journal, June 6, 2006, pg A1. http://online.wsj.com/article_print/SB114955981460172218.htm
1.7 Have you ever imagined having one electronic device that does everything you would ever
need? Mobile phone makers in Japan have gone beyond the imagining phase. Cell phones in
Japan are becoming more versatile than ever. Newer models of cell phones contain a myriad
of applications and can do many of the things that a personal computer (PC) can do. PCs are
also able to function as phones. A small but growing number of professionals are trading in
their laptops for handheld computers. Cell phone manufacturers in the United States and
elsewhere are quickly catching up to their Japanese counterparts.
Some things to consider mentioning are:
a. What commercial activities can be done with a cell phone? With a cell phone/PC
combination device? What do you do when you’re on your cell phone? What do you
expect to be doing in five years?
Newer models of cell phones contain a myriad of applications, including video cameras, digital
music players, television remote features, and digital recording. For example:
b. How can businesses utilize this technology to attract more customers, sell more products,
advertise their products, facilitate the sale of products, and conduct and manage their
businesses more efficiently and effectively?
c. What are some problems or drawbacks you can see with using these devices in business?
1.8 Classify each of the following items as belonging in the revenue, expenditure, human
resources/payroll, production, or financing cycle.
a. Purchase raw materials – Expenditure cycle
b. Pay off mortgage on factory – Financing cycle
c. Hire a new assistant controller – Human resources/payroll cycle
w. Put purchased goods into the warehouse – Expenditure cycle
SUGGESTED ANSWERS TO THE CASE
1-1 The website for this book contains an adaptation of Russell L. Ackoff’s classic article
“Management Misinformation Systems” from Management Science. In the article, Ackoff
identified five common assumptions about information systems and then explained why he
disagreed with them.
Read the five assumptions, contentions, and Ackoff’s explanations. For each of the five
assumptions, decide whether you agree or disagree with Ackoff’s contentions. Prepare a
report in which you defend your stand and explain your defense.
The exact nature of the answers will vary. Grading should be based on how well students defend
the positions they take. If you plan on discussing the case in class, be sure to cover these key
points:
Answer may vary but should comprise following key points:
