Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-1

Chapter 1
Managing the Digital Firm: Canada and the World
Teaching Objectives
1. What is the role of information systems in todays competitive business
environment?
2. What exactly is an information system? What do managers need to know about
information systems?
3. How are information systems transforming organizations and management?
4. How have the Internet and Internet technology transformed business?
5. What are the major management challenges to developing and using information
systems?

Key Terms
The following alphabetical list identifies the key terms discussed in this chapter. The page
number for each key term is provided.

Business functions, 12 Information technology (IT) infrastructure, 14

Business processes, 6 Input, 8
Communications technology, 14 Internet, 18
Computer-based information systems (CBIS), 9 Interorganizational systems, 22
Computer hardware, 14 Intranet, 24
Computer literacy, 11 Knowledge- and information- intense products, 6
Computer software, 14 Knowledge management systems, 7
Customer relationship management systems, 7 Knowledge workers, 13
Data, 8 Management information systems (MIS), 15
Data workers, 13 Mass customization, 22
Digital firm, 6 Middle managers, 14
Digital market, 23 Network, 14
Electronic business (e-business), 25 Operational managers, 14
Electronic commerce (e-commerce), 23 Output, 8
Enterprise systems, 7 Processing, 8
Extranet, 25 Production or service workers, 13
Feedback, 8 Senior managers, 14
Formal system, 9 Standard operating procedures (SOPs), 13
Information, 8 Storage technology, 14
Information architecture, 27 Supply chain management systems, 7
Information system, 7 Web site, 19
Information systems literacy, 11 World Wide Web, 19

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-2

Teaching Suggestions
Toyota's Grand Vision, the opening vignette, serves as an excellent introduction to Chapter 1.
This inset shows students that the competitive and strategic use of information systems is the
emphasis for the MIS course. Further, the opening vignette prepares students for thinking
about how information systems and networking can be used for revitalizing and transforming a
company. The diagram at the beginning of the chapter is an excellent tool for illustrating the
expanded definition of an information system. Ask your students to relate this diagram to the
opening vignette.

To facilitate class discussion, ask your students to discuss the following questions as they
relate to the opening vignette.

1. What is the projected cost of Toyota's new system?

2. What are the benefits for Toyota's new system?
3. Do you think the benefits will outweigh the costs for the new system? Why?
4. What is meant by converse engineering? What are its benefits?
5. What are the management challenges associated with Toyota's new system? What
technology is used? Who will use the new system? How will they use the new system?
6. What information and capabilities will the new system provide to Toyota that are not
currently provided by the current system?

The section Why Information Systems? gives students the facts and definitions that underpin
information systems and allow students to knowledgeably discuss information systems.
Students do not need the knowledge of a technical person, but they do need enough
knowledge and definitions to understand the role of information technology and how it must
support the organizations business strategy. They must also understand how information
technology can be used to help transform the business. Note that the chapter's definitions and
terms help prepare students to discuss information systems as part of business systems.
Students should be made aware of the formal descriptions of CBIS, the functional
classification of the organization, and standard operating procedures. Encourage students to
see that technology is subordinate to the organization and its purposes.

When asked to describe a company's information systems, students often describe the
information systems in terms of technology. It is important to stress to students that
information systems are more than just technology and have management, organization, and
technology dimensions. Figure 1-5 and the diagram at the beginning of the chapter can be
used to illustrate this point.

The MIS In Action: Manager's Toolkit introduces students to a six-step process for analyzing a
business information system problem. After reviewing the six-step process with your students,
consider placing your students into groups and asking them to apply the six-step process to a
given business situation. For instance, ask the students to apply the six-step process to a
clothing business that is now considering selling its clothing online.

This is a good opportunity to discuss the effects of a business or national economy that tries to
fight globalization trends and the concomitant transformation of the business enterprises.
Consider the examples of China, Singapore, and Russia as good examples to discuss.

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-3

The section, Contemporary Approaches to Information Systems, is important for setting the
stage for the rest of the text. After contrasting the technical and behavioural approaches, you
should stress to your students that the sociotechnical approach does not ignore the technical
but considers it as a part of the organization. This is also a good place to reinforce the
differences between information systems literacy and computer literacy.

The example of the Internet as a shift in technology that changed how information is acquired
and exchanged is an excellent one. Have students find examples of how organizations are
changing their organizational structure or the products or services they offer. Students should
refer to the section, New Options for Organizational Design in their discussion.

Have your students find examples of courses or degrees offered partially or entirely on the
Internet. The University of Phoenix is a good example. Additionally, have your students
discuss their own university and its online course offerings or degree programs. How does this
change the relationship between professors and students? Several of your students may have
participated in an online course. Ask these students to discuss the advantages and
disadvantages of this type of course.

Students may not be comfortable with electronic markets and interorganizational systems, so
you may need to stress their relevance. Also, discuss the growing centrality of digital
relationships. Students must understand the new opportunities that information systems bring
to almost any business.

As an assignment, ask your students to identify a specific company (or companies) that uses a
networked system and the Internet to facilitate its functional areas. The students should
discuss how the networked system and the Internet are used.

You may want to email your students an MIS Word of the Day. Check out www.whatis.com
or one of the many other online computer terminology dictionaries to locate words and
definitions that supplement the text. Students often love the electronic interactions with their
instructor, and the words are yet another way to reinforce learning.

Window On Boxes
Window on Technology: UPS Competes Globally with Information Technology

What are the inputs, processing, and outputs of UPSs package tracking system?

Inputs: The inputs include package information, customer signature, pickup, delivery, timecard
data, current location (while en route), and billing and customer clearance documentation.

Processing: The data are transmitted to a central computer and stored for retrieval. Data are
also reorganized so that they can be tracked by customer account, date, driver, and other
criteria.

Outputs: The outputs include pickup and delivery times, location while en route, and package
recipient. The outputs also include various reports, such as all packages for a specific account
or a specific driver or route, as well as summary reports for management.

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What technologies are used?

Technologies include handheld computers (DIADs), bar code scanners, telecommunications

for transmitting data, cellular phone networks, the Internet, and computers.

How are these technologies related to UPSs business strategy?

UPS has used the same strategy for over 90 years. Its strategy is to provide the best service
and lowest rates. However, technology also enables data to seamlessly flow throughout UPS
and helps streamline the workflow at UPS. Thus, the technology described in the scenario
enables UPS to be more competitive, efficient, and profitable.

How to they provide value for the customer?

One of the most visible aspects of technology is the customer's ability to track his/her package
via UPS's Web site. Customer representatives can also check the status of any package for
UPSs customers. Customers can also use UPSs Web site to schedule a pickup or almost any
service previously requiring a customer representative contact, such as calculating shipping
rates.

What would happen if these technologies were not available?

Arguably, UPS might not be able to compete effectively without the technology. If the
technology were not available, then UPS would, as it has through most of its history, attempt
to provide that information to its customers, but at higher prices.

Additional Comments: Ask your students to investigate and evaluate UPSs Web site. Ask
your students to describe how UPS keeps its customers informed. If you have the time, ask
your students to compare and contrast UPS's Web site with its competitor's Web sites.

Window on Organizations: Why Are Internet-Only Banks Smiling in the United

Kingdom?

Do you think Internet-only banking will survive? Why or why not?

The advantages of using an online-only bank outweigh the disadvantages. Online-only

banking provides customers with the convenience of banking at anytime from anywhere, thus
ensuring its survival. Online banking customers can check their balances at any time, pay bills,
transfer money, and apply for credit. Higher interest rates for checking and savings accounts
are also a plus. Disadvantages include lack of face-to-face contact, check cashing, money
withdrawal, complexity of some transactions, and lag time for deposits made via the mail.

What are the organizational and technical problems Internet-only banks face?

Perhaps the most significant organizational problem is the interaction method that the online
only bank has with its customers. With a bricks-and-mortar bank, you have the option of going
to the nearest branch to resolve any question about your banking activities. For instance, a
question about a mortgage application may arise, or perhaps a deposit has not been credited
to your account. If you deal with a bank representative, the bank representative can check into
the situation and give you an indication about when and how the problem will be solved. If the
problem is not immediately resolved, you also know whom to contact. When dealing with an
online-only bank, the interaction methods and standard operating procedures are quite

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-5

different. Additionally, making a cash deposit to your savings or checking account can be
awkward since you cannot just walk into the bank and make the deposit.

A user-friendly Web site and uninterrupted access to account information are critical to the
success of an online-only bank. An obvious issue that arises for an online-only bank is that its
customers must have Internet access, a computer, and a browser.

One of the biggest obstacles to online-only banking is that some individuals will refuse to bank
online because of security concerns. Additionally, what happens if a customer loses or forgets
his/her password?

What are the organizational and technical problems traditional banks with online
services face?

A traditional bank with online services gives its customers the choice of visiting a local branch
or performing transactions online. However, the traditional banks will face many of the same
problems that online-only banks face. Security is one of the biggest issues. Before customers
will use the online banking services, they must feel that their accounts are secure from
hackers. A traditional bank must provide an easy-to-navigate Web site, as well as consistent,
immediate access to customer account information. Any bank offering online access must
provide uninterrupted service to its customers. If the Web site is down for maintenance, it is
important that the bank indicate on the Web site approximately how long the Web site will be
down.

Additional Comments: As an assignment, consider requiring your students to investigate

several online-only banks and then prepare a report based on their findings. As part of their
report, ask the students to indicate which online-only bank they would choose to use. Also,
have your students research how a customer can make a cash deposit to his account when
using an online-only bank.

For Discussion
1. Information systems are too important to be left to computer specialists. Do you
agree? Why or why not?

While student answers will vary, this is a good place to reiterate that information systems
are more than just technology. Information systems development and usage involves
organization, management, and technology dimensions. It is important to understand
who will use the information systems and how the information systems will be used to
facilitate decision making and control within the organization. Computer specialists
understand the technology and play an important role within the development and
maintenance of information systems. Computer specialists have an in-depth technology
background, but may not be well versed in the business or its operations. This is why
computer specialists should function as part of a team, and this team should have the
hybrid strength of many different skills and personalities. The team should understand
the business, the business requirements, and the goals for the information systems. The
opening vignette and the case study are good examples to reinforce the answer to this
question.

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-6

2. As computers become faster and cheaper and the Internet becomes more widely
used, most of the problems we have with information systems will disappear. Do
you agree? Why or why not?

Although student answers for this question will vary, encourage your students to examine
the technology, management, and organization dimensions of information systems. Even
though computers are and cheaper and Internet is growing exponentially, we still have
technology management, information privacy, system outages, health, and illegal
distribution of intellectual property issues. Additionally, because the reach and range of
information systems is rapidly increasing, management and usage of information
systems is becoming more critical.

Review Questions
1. Why are information systems essential in business today? Describe four trends in
the global business environment that have made information systems so
important.

The emergence of a global economy, transformation of industrial economies,

transformation of the business enterprise, and the emergence of the digital firm make
information systems essential in business today. These trends present the business firm
and its management with several new challenges. Table 1-1 summarizes these
challenges.

As a growing percentage of the advanced industrial economies in the United States,

Europe, and Asia depends on imports and exports, information systems supply both
communications and analytic instruments for engaging in trade and for managing
businesses that are spread throughout the world.

The major industrial powers in the United States, Europe, and Asia are being
transformed from industrial economies to knowledge- and information-based service
economies. In these economies, information systems and technology have become
critical to these economies, and in this day and age, they have become essential to
economies that remain reliant upon manufacturing.

Development of the power and capabilities of information systems has transformed the
possibilities for organizing and managing business enterprises. Businesses of this style
are less hierarchical (flatter) and are more decentralized, allowing them to rely more on
informal commitments and temporary task forces. Many managers have become more
reliant upon individuals who report to them for decision making as these subordinates
have more learning and current knowledge. Also, more and more under this
transformation, companies are becoming more customer-oriented.

The emerging technology and the organizational redesign that has accompanied it have
created the condition for the emergence of the digital firm. While truly digital firms are still
few and far between, they are growing in number. Perhaps more important right now,
almost all larger firms and even many smaller ones have become reliant upon digital firm
technology for much of their activity, including relations with customers and suppliers.

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-7

2. Describe the capabilities of a digital firm. Why are digital firms so powerful? What
are the four principal systems driving the movement toward digital firms?

Digital firms extensively use Internet technology for electronic commerce and electronic
business to manage their internal processes and relationships with customers, suppliers,
and other external entities. Core business processes, key corporate assets, and
environmental responses are digitally managed. Because a digital firm relies heavily on
information technology to enable, mediate, and streamline its internal and external
operations, the firm is more flexible, profitable, competitive, and efficient than a traditional
firm.

Supply chain management systems, customer relationship management systems,

enterprise systems, and knowledge management systems are the four principal systems
driving the movement toward digital firms. As the textbook suggests, these four systems
are where corporations are digitally integrating information flows and making significant
information systems investments.

3. What is an information system? Distinguish between a computer, a computer

program, and an information system. What is the difference between data and
information?

An information system consists of interrelated components that work together to collect,

process, store, and disseminate information to support decision making, coordination,
control, analysis, and visualization in an organization. A computer system is the physical
equipment used for input, processing, and output activities in an information system.
Computer programs provide the computer with necessary instructions on how to process
the data into information. Data are raw facts; these raw facts, in their current form, are
not in a useful format. Information is data that have been processed into a useful,
meaningful form.

It is important for students to recognize that computers and information systems are not
equivalent. It is important to stress that information systems have management,
organization, and technology dimensions. Computers and programs are technology
components of an information system. Without addressing the organization and
management dimensions, the technology components are relatively useless. For
instance, you can purchase a computer and software, but unless you have determined
how the technology will be used to help manage and organize your work, you essentially
have a decorative box for your desk.

4. What activities convert raw data to usable information in information systems?

What is their relationship to feedback?

Input captures raw data, processing converts the data into a more meaningful form, and
output transfers the processed information to people or activities where it will be used.
Some of the output will be used to correct any problems found and also to provide
feedback that will then be used to evaluate the data.

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-8

5. What are the functions of an information system from a business perspective?

What role do they play in the business information value chain?

Information systems facilitate the acquisition, transformation, and distribution of

information. Information systems can improve decision making, enhance organizational
performance, and help increase firm profitability, thus contributing to corporate value.

6. What is information systems literacy? How does it differ from computer literacy?

Information systems literacy is a broad-based understanding of information systems. In

contrast, computer literacy is limited to understanding computers. Information systems
literacy includes the behavioural understanding of the organization and management
dimensions of information systems as well as the technological dimensions.

7. What are the organization, management, and technology dimensions of

information systems?

Organization: Information systems are part of organizations, and in some cases (such as
credit card companies and financial information services), they are the organization.
Information systems will have the SOPs and the culture of an organization embedded
within them.

Management: Information systems supply tools and information needed by managers to

allocate, coordinate and monitor their work, make decisions, create new products and
services, and make long-range strategic decisions.

Technology: Management uses technology (hardware, software, storage, and

telecommunications) to carry out their functions. It is one of the many tools managers
use to cope with change.

8. Distinguish between a behavioural and a technical approach to information

systems in terms of the questions asked and the answers provided. What major
disciplines contribute to an understanding of information systems?

A behavioural approach to information systems focuses on questions such as strategic

business integration, behavioural problems of systems utilization, system design and
implementation, social and organizational impacts of information systems, political
impacts of information systems, and individual responses to information systems.
Solutions to problems created by information technology are primarily changes in
attitudes, management, organizational policy, and behaviour.

A technical approach to information systems emphasizes mathematically-based models

to study information systems and the physical technology and formal capabilities of
information systems. Students should know the differences between computer science
(theories of computability, computation methods, and data storage and access methods),
management science (development of models for decision making and managerial
practice), and operations research (mathematical techniques for optimizing
organizational parameters such as transportation, inventory control and transaction
costs).

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-9

9. What is the relationship between an organization and its information systems?

How has this relationship changed over time?

Notable changes occurring over time include a growing interdependence between the
organization and its information systems and a movement from primarily technical
changes to include both managerial and institutional changes. There is a growing
interdependence between the organization and its information systems. Often, a change
in the business's strategy, rules, or procedures requires changes in the information
systems software, hardware, databases, and telecommunications. An organizations
present and future accomplishments depend in many respects on what its systems will
permit it to do now and later.

Also, system projects are increasing in reach and scope. Whereas early information
systems addressed primarily technical or operational issues, contemporary information
systems are integral to the management and strategic goals of the firm. Today
information systems affect a much larger part of the organization itself, such as
organizational products, objectives, and structure. More and more business activities at
all levels involve the use of information systems.

10. What are the Internet and World Wide Web? How have they changed the role
played by information systems in organizations?

The Internet is an international network of hundreds of thousands of public and private

networks with over 500 million people connected in over 200 countries working in
science, education, government, and business. Individuals and organizations use the
Internet to exchange information and perform business transactions with other
individuals and organizations around the globe. It should be noted that the digital firm
uses the Internet as its primary technology platform.

The World Wide Web is a system with universally accepted standards for storing,
retrieving, formatting, and displaying information in a networked environment. The Web
is a part of the Internet and provides a graphically-based system of pages for storing
information on the Internet.

The Internet and the World Wide Web have had a tremendous impact on the role
information systems play in organizations. The Internet and the World Wide Web are
responsible for increased connectivity and collaboration within and outside the
organization. The Internet, the World Wide Web, and other technologies have led to the
redesign and reshaping of organizations. The Internet and the World Wide Web have
helped transform the organization's structure, scope of operations, reporting and control
mechanisms, work practices, work flows, and products and services.

11. Describe some of the major changes that information systems are bringing to
organizations.

Information systems are driving both daily operations and organizational strategy.
Powerful computers, software, and networks, including the Internet, have helped
organizations become more flexible, eliminate layers of management, separate work
from location, and restructure work flows, giving new powers to both line workers and
management. The flattening of organizations is probably one change that students are
likely to cite, particularly with the concern over downsizing. The parallel increase in
information and in the decision power of line workers (empowerment) has also increased

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-10

the workers corresponding work satisfaction as management span of control is

broadened. The empowering of the line worker means managers can spend more time
thinking more strategically.

12. How are information systems changing the management process?

Contemporary information systems are providing managers with powerful new tools for
more precise planning, forecasting, and monitoring, allowing them to respond more
quickly to changes in the market for a product or in production conditions. Systems also
give managers new tools for communicating with their subordinates so that they can
manage larger numbers of people across greater distances than in the past.

13. What is the relationship between the network revolution, the digital firm, electronic
commerce, and electronic business?

The Internet and other networks have made it possible for the firm to replace manual and
paper-based processes with the electronic flow of information. This change can enable
many companies ultimately to become digital firms. The digital firm uses the Internet and
digital technology to expedite the exchange of information and facilitates communication
and coordination both inside the organization and between the organization and its
partners. Without this linkage of buyers and sellers through networks and the Internet,
there would be no way to transmit the many transactions of the electronic market, which
would leave buyers and sellers to depend on paper transactions with their time delays,
inaccuracies, and expenses. E-business, the use of Internet technologies to facilitate an
organizations internal processes, also facilitates e-commerce, the external transactions
facilitated by Internet technologies. Together, e-business and e-commerce move firms
closer to being truly digital.

14. What are interorganizational systems? Why are they becoming more important?
How have the Internet and Web technology affected these systems?

Interorganizational systems automate the flow of information across organizational

boundaries, linking a company to its customers, distributors, or suppliers, and sometimes
even their competitors.

Interorganizational systems allow companies to electronically conduct transactions with

different companies. This enables companies to respond more quickly to market
demands and to lower transaction costs. Moreover, companies can work jointly and more
quickly and fully with partners to design, produce, and sell products. This method can
result in higher levels of efficiency and value to customers and even result in a significant
competitive advantage.

The Web and the Internet can lower cost for all those involved, even making it possible
for small companies to participate where they might not if costs were higher.

15. What do we mean by information architecture and information technology

infrastructure? Why are they important concerns for managers?

The information architecture of the organization is the particular form or design that
information technology assumes in a specific organization to achieve selected goals or
functions. It is a design for the business application systems that serve each functional
specialty and level of the organization and the specific ways that they are used by each

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-11

organization. Contemporary information architectures are increasingly designed around

business processes and clusters of system applications spanning multiple functions and
organizational levels.

The firms information technology (IT) infrastructure provides the technology platform for
this architecture and consists of computer hardware, software, data and storage
technology, and networks along with the human resources required to operate the
technology. Because managers and employees directly interact with these systems, it is
important for the company now and in the future that the information architecture and IT
infrastructure meet the business requirements of the company and that the systems can
work together where needed.

16. What are the key management challenges involved in building, operating, and
maintaining information systems today?

The textbook identifies five key management challenges, including the strategic business
challenge, globalization challenge, information architecture and infrastructure challenge,
information systems investment challenge, and the responsibility and control challenge.
The strategic business challenge encourages students to realize that they must be able
to use information technology to design organizations so that they are competitive,
effective, and digitally-enabled. The globalization challenge facing students is that they
know how firms can understand the systems requirements of a global environment. The
information architecture and infrastructure challenge is that students must be able to help
their organizations develop an information architecture that is able to support the
company goals when both the business conditions and the technologies are changing so
rapidly. The information systems investment challenge is for students to know how their
organization can determine the business value of systems. Finally, the responsibility and
control challenge is for students to understand how organizations can ensure that their
information systems are used in an ethically and socially responsible way.

Application Software Exercise Solution Description

This exercise helps students understand how a raw file of sales transactions can be
analyzed using database software to produce valuable information for managers. The
solutions provided here were created using the query wizard and report wizard
capabilities of Access. Students can of course create more sophisticated reports if they
wish, but much valuable information can be obtained from simple query and reporting
functions. The main challenge is to get students to ask the right questions.

Group Project
In a group with three or four classmates, find a description in a computer or
business magazine of an information system used by an organization. Look for
information about the company on the Web to gain further insight into the
company, and prepare a brief description of the business. Describe the system
you have selected in terms of its inputs, processes, and outputs, and in terms of
its organization, management, and technology features and the importance of the
system to the company. If possible, use electronic presentation software to
present your analysis to the class.

Student answers for this project will vary. The purpose of this project is to visualize and
understand the main components of an information system and to understand the
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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-12

organizational context of an information system.

For example, if the system is a payroll system, inputs might include employee personal
information (such as name, address, province, dependent names), tax information,
special deductions (such as employee pension plan, supplemental insurance), pay type
(hourly, weekly, salary, commission), pay period, and hours worked. Processes would
include calculating gross pay, deductions, taxes, and net pay, and updating employee
information such as deductions. Outputs include updated employee records, pay stubs,
and checks (or pay stubs and direct deposit tape), and perhaps retrieval through an
online system. Technology includes the types of computers, storage media, the payroll
software used, and the database technology. An organizational description might include
the size and type of staff required to run the system. It might also include the place of the
payroll system within the larger organization (human resources or accounting function,
for example). Management might include payroll management problems the system
solved or is designed to solve. For example, it may have been installed to expedite pay,
eliminate paper, or solve a government regulatory problem.

Case Study Gold Medal Information Technology for the Olympics

1. What are the obstacles to implementing the information systems for the Athens
Olympic Games?

Since the Glitch Games in Salt Lake in 1996, the benchmark for failure has been set for
information system implementations at the Olympics. Some critics are already predicting a
similar fate for Athens. SchulmbergerSema will have to deal with this negative feedback
from the various media around the world and ensure that accurate information and
competition results are provided in an extremely timely manner.

The amount of hardware needed is enormous: 10 000 computers, 450 servers, 2000 fax
machines, and 2000 printers. In addition, all network infrastructure including routers, hubs,
and network cabling must be wired. This is one of the largest projects that any company
has embarked on. The 2004 Games in Athens will require two to three times more
information technology infrastructure than the 1996 Games in Salt Lake. In order to ensure
that all systems work without error or failure, more than 200 000 hours will be dedicated to
testing these systems under high processing loads for timeliness, redundancy, and
efficiency.

2. How do you think the Internet and the World Wide Web have changed the Olympics?
What impact have they had on fans of the Olympics?

Prior to the advent of the Internet, competition results were only accessible through media
such as television or radio, which do not store information and provide it at the users
convenience. The Internet and the World Wide Web have changed how spectators and
fans are able to experience the Olympics. With the use of real time results systems and
instantaneous data transmission and reporting, the Internet is able to provide competition
results from any sport to anyone in the world at any time.

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Instructor's Manual, Chapter 1 Management Information Systems, Second Canadian Edition 1-13

3. What features or characteristics does the Olympics infrastructure have to exhibit in

order to deliver the data required by Schlumberger?

Schlumberger has taken into account all of the challenges and obstacles necessary to
successfully provide information for the 2004 Olympic Games. There is an understanding
of the magnitude, importance, and timeliness of this project. Several millions dollars has
been spent on top-quality networking and server infrastructure to ensure that information
can be provided in a timely and accurate manner. The entire system is being tested to
eliminate the chance of system anomalies, incompatibilities, or unexpected system
behaviour. Schlumberger has installed diesel generators at every venue to ensure that a
constant source of electricity is available for the information technology on-site. Backup
and redundant systems the primary systems, should they happen to fail.

4. Do you think the Olympics should award long-term contracts, like the Schlumberger
contract? Why or why not?

Long-term contracts can act as a double-edged sword. From one perspective, as

Schlumberger says, like any IT project, it is easier to complete the second time around.
Past experience helps a previous contractor to understand the possible obstacles and
challenges unknown to a new contractor.

However, if contractors are awarded long-term contracts without any stipulation for service
and technological improvements upon each implementation, the level of service provision
will remain stagnant. A new contractor may be willing to provide the company with newer,
more functional, or more efficient technology while a long-term contractor may become
technologically sluggish. Allowing new and old contractors to compete with each other for
service contracts encourages all parties to make use or new technologies or methodogies
to provide their service.

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