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  1. During class, we have discussed the total cost of IT ownership (TCO) for computer hardware and software. In the space below, discuss those aspects of TCO that apply uniquely to either computer hardware or computer software acquisitions and their maintenance. Explain your choices. [1 point]

Hardware or Software Unique TCO

Explanation of Differences only:

Different direct cost

The direct cost usually differs depending on the software and hardware

Different indirect cost

The indirect cost will usually be different because of there is different working environment

IT spending is different by category

Hardware will have a higher spending compared to software spending

TCO will differ between organization

This is due to different computing environments, IT expertise, and user experience level

Indirect cost is higher than the direct cost for PC systems

The indirect cost is higher due to the high maintenance required

TCO can be reduced

TCO can be mitigated through different strategies such as active management, planning, and pro-active monitoring

TCO analysis is inexact

This is due to the high number of assumptions made

TCO rises as more software are installed or as complex hardware are provided

This is because the higher the number of hardware and software the direct and indirect cost will increase, leading to an increase in the TCO

  1. Identify four different types of computers at Hardrock Cafe and explain how each of these computers enables some aspect of Hardrock’s operations (i.e. transacting capabilities). [1 point]


Operational Uses:


Can help in enhancing communication within the organization


Can be used by the organization in monitoring the operations in the different units o the business

Mainframe computers

These can be used by the business in storing information concerning customers


This can help the business in carrying out research that can aid in enhancing its operations

  1. Amazon.com employs diverse software products to enable business processes. For each of the following categories of software, provide an example of the type of product (generic name or brand name) that the company might be likely to use state whether this product is licensed, licensed and modified, developed in house, or outsourced to the Cloud and explain your sourcing choice. [1 point]

Software Category




of Product

The Reasons for Amazon’s Sourcing Approach

System Software

Microsoft Windows


It is the only best option that is, there is no alternative approach

General Purpose Software

MS Word


The approach is cost effective

Application- Specific Software (information systems)

Amazon Mayday button

Developed in house

The approach satisfies customers and increases productivity

  1. UPS maintains a significant body of client and sales information in its CRM Information System to support its operational, managerial, and business innovation needs. Complete the following information concerning the design of that database. [1 point]

Data Table

Primary Key (PK) for this Table

2 Other Data Elements – Not the PK – found in this table


Metadata Definitions for each of these two Data Elements

Corporate client table

Customer ID

Customer address

Customer’s geography/location

Customer city

A city where the customer can be found

Package tracking table

Identity of package

Departure date

Date, when the package is released

Arrival date

Date, when the package reaches its destination



Employee ID

Job title

Job description of the employee

Type of contract

Refers to whether the employee is employed on a temporal or permanent basis

Sales table

Product ID

Terms of sale

Payment and delivery terms agreed upon by the buyer and seller


Quantity of item sold

  1. In thinking through the information management and networking needs of

Progressive Insurance andassuming that the data center for Progressiveis located in asecure place away fromHeadquarters, what networking approach would you employ to connectthe locations in the first column to the company’scentralized datacenter? Explain why you would choose this particular networkingapproach. Note that “WAN” in and of itself is not a satisfactoryresponse. [2 points]


Network Solution

Key Factors in Your Choice of Network

a claims processing center located in Denver, Colorado

Web servers

  • Can be capable of serving a large number clients

  • Clients can be served from a single server

a customer support center located in the same building as the data center

Wireless network

  • Customers can be capable of accessing the network while in the building

  • It is easy to serve a large number of customers seeking support care

Progressive headquarters

Local Area Network

  • Can transfer data at a very fast rate within the offices

  • Data can be shared easily within the headquarter offices

a Progressive internal auditor who typical prepares reports from hotel rooms on the road as he/she visits various company locations

Wireless network

  • Can connect automatically from any place

  • The connecting devices are portable

A Web service between Progressive and its employees worldwide

Skype support network

  • Employees can communicate from any place

  • Cheap

  • Easily accessible even through phones

A Web service between Progressive and its business partners

Skype support network

  • Can connect with partners from any region

  • Flexibility

  • Can connect only when needed

  1. Apply the MIS Integrative Leaning Framework to compare Bank of America and BayState Realty. [2 points]

A. Business Drivers/


  1. Operational Excellence,

  2. Customer Intimacy,

  3. Product Leadership

  4. (some combination)

C. Information Processing Infrastructure and


  1. Business Process Integration

  2. Information Technology

  3. People and Organization structure

B. Information Requirements

  1. Operations and Transaction Processing

  2. Management and Control

  3. Innovation, Strategy and Corporate Learning







Business Results/Lesson Learned

Framework Criteria

Bank of America

BayState Realty

Primary Business Drive

Product excellence

Operational excellence

Examples of Transactional Information Needs

Best front end service and teller machines that are in good condition

Best general service software

Examples of Managerial Information needs

Good accounting system

Application specific software that are working

Examples of Innovational Information Needs

Working cash minor and prospector

New software that can meet the emerging needs of clients

Information System(s) that you would expect to find that address information needs

Computers, accounting software, statistical software

Computers, general service software, application specific software

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