Management information systems revision question and answer

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Dunga Beach Sacco Ltd., a farmers savings and credit co-operative society based in Kisumu Municipality installed an enterprise resource planning (ERP) software two years ago. At the time of installation, the Sacco did not undertake the necessary business process changes, as a result of which most users still prefer to use the manual system. The Sacco is now planning to undertake the necessary changes.

(i) State four obstacles that may have hampered the business process changes and suggest four possible strategies that may be used to overcome
the obstacles.
(ii) A post installation review of the system revealed that the system was not realizing the anticipated benefits. List six other key areas that the review should have focused on other than the benefits.
– Attitude or beliefs perhaps arising from cultural and religious or social Influences.
– Politics i.e. resisting change that might weaken the power in the base of an Individual or group strength a rival position.
– Personal self – interest
– Misunderstanding
– Different view points of the situation

– Low tolerance of change

– Negotiation e.g. offer incentives to the resisting parties.
– Evaluate and reassure resisting parties.
– Participation and involving potential resistors.
– Force change through and then support the new behavior it requires (carrot and stick method).
(iv) (iv)

– Comparison of the actual system performance against the anticipated Performance objectives. This involves assessment of the system Running cost, benefits etc as they compare with estimated or anticipated.
– The staffing needs and whether they are more or less than anticipated.
– Any delays in the processing and effects of such delays.
– Effectiveness of the inbuilt security procedures in the system.
– The error rates for input data.
– The output i.e. whether it is correct, timely and distributed correctly to the relevant users

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