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	Management Information Systems 4/e - James A. O'Brien
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Chapter 3: Solving Business Problems with Information Systems

Application Exercises

1. Systems Study Report

Study an information system described in a case study in this text or one used by an organization in which you have access. Write up the results in a system study report. Make a presentation to the class based on the results of your system study. Use the outline in Figure 3.32 as a table of contents for your report and the outline of your presentation. Use presentation software and/or overhead transparencies to display key points of your analysis.

2. Village Inn Restaurants: Using the Systems Approach

Village Inn Restaurant is a national chain of coffee shop restaurants. Typically a waitress takes your order on a paper form inserts it into a small terminal connected to an in-store network server and enters appropriate data about your order. The computer produces a paper printout of your order in the kitchen for the cooks calculates your bill and prints the details of your order on the paper order form. This form is then returned to your table. When you are ready to leave you give this form to the cashier who keys data about your payment into a point-of-sale terminal.

Assume that some customers are complaining about slow service which the cooks blame on incorrect orders by waitresses. Use the concepts of the systems approach as illustrated in Figure 3.2 that we discussed in Section I of this chapter to answer the following questions:

What specific steps would you take to study this problem and propose a solution?
What are three questions you would ask in a system study interview?
What do you think the problem(s) is (are)? Why?
What are two possible solutions you can think of? What are their advantages and disadvantages?
If you had to choose one solution what would it be? Why did you choose it?
How would you implement your solution?

3. ABC Department Stores: End User Spreadsheet Development

Use an electronic spreadsheet and follow the basic activities of the end user spreadsheet application development process in Figure 3.33. Create the ABC in Figure 3.34 using the formulas shown in Figure 3.35. The basic parameters (control variables) in the spreadsheet are the amount of money initially invested the ratio of expenses to revenue the tax rate and the rate of growth in revenue. These parameter values are placed in a control area at the top of the spreadsheet so they can be identified and changed easily to see their impact on the other calculations.

Other formulas simply reflect that profit is revenue minus expenses and after-tax profit is profit minus taxes. The sum and average functions complete to final two columns of the spreadsheet.

Enter $1 000 for 1997 sales 60 percent for the ratio of expenses to revenue 40 percent for the tax rate and 10 percent for the rate of revenue growth. Notice how the spreadsheet as shown in Figure 3.34 is instantly generated and displayed. Store and print this spreadsheet.
Use the spreadsheet you created to perform what-if analysis. Change the 1997 revenue the revenue growth rate the expense ratio or tax rate and observe the impact on profits. (For example increase revenue for 1997 by $1 000 increase expenses to 65 percent of revenue and decrease taxes to 25 percent of profit.) Print a copy of the spreadsheet with the results of these changes then make at least on more set of changes to values of your own choosing and print a copy of those results as well.
Create graphics displays of parts of the spreadsheet you developed and get printouts of your graphs. Figure 6.36 shows examples of the kinds of graphs that might be generated. Make changes to your spreadsheet parameter values and note how the graph results change to reflect these changes.
Write a short explanation of what happened when you did a what-if analysis and its implications for a managerial end user.

4. Student Scores: End User Database Development

Use a database management software package and follow the basic activities of the end user database development process in Figure 3.37. Create a Student Exam Scores Database Table to store the sample data in Figure 3.38. Each student record includes the student's name Social Security number gender and grades for three exams.

Create the Student Exam Scores table enter the data records for the seven students shown below and get a printed listing of the Student Exam Scores table.
Edit the Student Exam Scores file by changing at least two exam scores and add at least one new student record. Choose any values you want for these changes and additions. When you have completed these changes get another printed listing of the Student Exam Scores table.
Use a database query to retrieve a printed listing of all students whose score on the first exam was 85 or higher similar to Figure 3.39.
Create a print a report showing the exam scores and total points earned by students sorted in ascending order by total points similar to Figure 3.40.

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