Explain the management decision problems


Assignment:

The projects in section give you hands-on experience in developing solutions for managing IT infrastructures and IT outsourcing, using spreadsheet software to evaluate alternative desktop systems, and using web research to budget for a sales conference. Visit MyMISLab's

Multimedia Library to access this chapter's Hands-On MIS Projects.

Management Decision Problems

1. 5-9 The University of Pittsburgh Medical Center (UPMC) relies on information systems to operate 19 hospitals, a network of other care sites, and international and commercial ventures. Demand for additional servers and storage technology was growing by 20 percent each year. UPMC was setting up a separate server for every application, and its servers and other computers were running a number of different operating systems, including several versions of Unix and Windows. UPMC had to manage technologies from many different vendors, including Hewlett-Packard (HP), Sun Microsystems, Microsoft, and IBM. Assess the impact of this situation on business performance. What factors and management decisions must be considered when developing a solution to this problem?

2. 5-10 Qantas Airways, Australia's leading airline, faces cost pressures from high fuel prices and lower levels of global airline traffic. To remain competitive, the airline must find ways to keep costs low while providing a high level of customer service. Qantas had a 30-year-old data center. Management had to decide whether to replace its IT infrastructure with newer technology or outsource it. What factors should be considered by Qantas management when deciding whether to outsource? If Qantas decides to outsource, list and describe points that should be addressed in a service level agreement.

Improving Decision Making: Using a Spreadsheet to Evaluate Hardware and Software Options

Software skills: Spreadsheet formulas

Business skills: Technology pricing

1. 5-11 In this exercise, you will use spreadsheet software to calculate the cost of desktop systems, printers, and software.

Use the Internet to obtain pricing information on hardware and software for an office of 30 people. You will need to price 30 PC desktop systems (monitors, computers, and keyboards) manufactured by Lenovo, Dell, and HP. (For the purposes of this exercise, ignore the fact that desktop systems usually come with preloaded software packages.) Also obtain pricing on 15 desktop printers manufactured by HP, Canon, and Dell. Each desktop system must satisfy the minimum specifications shown in tables that you can find in MyMISLab.

Also obtain pricing on 30 copies of the most recent versions of Microsoft Office and Apache OpenOffice (formerly Oracle Open Office) and on 30 copies of Microsoft Windows 10. Each desktop productivity package should contain programs for word processing, spreadsheets, database, and presentations. Prepare a spreadsheet showing your research results for the software and the desktop system, printer, and software combination offering the best performance and pricing per worker. Because every two workers share one printer (15 printers/30 systems), your calculations should assume only half a printer cost per worker.

Improving Decision Making: Using Web Research to Budget for a Sales Conference

Software skills: Internet-based software

Business skills: Researching transportation and lodging costs

1. 5-12 The Foremost Composite Materials Company is planning a two-day sales conference for October 19-20, starting with a reception on the evening of October 18. The conference consists of all-day meetings that the entire sales force, numbering 120 sales representatives and their 16 managers, must attend. Each sales representative requires his or her own room, and the company needs two common meeting rooms, one large enough to hold the entire sales force plus a few visitors (200) and the other able to hold half the force. Management has set a budget of $175,000 for the representatives' room rentals. The company would like to hold the conference in either Miami or Marco Island, Florida, at a Hilton- or Marriott-owned hotel.

Use the Hilton and Marriott websites to select a hotel in whichever of these cities that would enable the company to hold its sales conference within its budget and meet its sales conference requirements. Then locate flights arriving the afternoon prior to the conference. Your attendees will be coming from Los Angeles (51), San Francisco (30), Seattle (22), Chicago (19), and Pittsburgh (14). Determine costs of each airline ticket from these cities. When you are finished, create a budget for the conference. The budget will include the cost of each airline ticket, the room cost, and $70 per attendee per day for food.

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