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Semester One 2022

Final Assessment Period

Faculty of Information Technology

EXAM CODES: FIT3174

TITLE OF PAPER: IT Strategy and Governance

EXAM DURATION: 2 hours 10 minutes

Section A

1. Which one of the following statements best represents the ‘IT portfolio’?

a. The firm will have one dominant technology.

b. The firm will have many technologies.

c. The firm invests in a technology portfolio in the stock exchange.

d. The firm must have one technology from a range of technologies.

2. The blue ocean strategy is when a firm …:

a. moves to an uncontested market.

b. outsourced services away from the country.

c. inventing new products.

d. All of the above.

3. Which of the following is not one of the seven governance system components in COBIT 2019? a. Process

b. Organisational structures

c. DevOps

d. Culture, ethics and behaviour

4. Which of the following is not true about IT budgeting?

a. Budgeting deals with allocating monetary resources.

b. Zero-based budgeting aims to avoid expenditure that is not absolutely essential.

c. Imposed budgeting can attract more buy-in from operation staff.

d. Information collecting and sharing is important to reduce uncertainty in estimations of IT budgets.

5. Which of the following is not a favourable condition to employ the agile method?

a. Market conditions are stable.

b. Market conditions are unpredictable.

c. Solution options change all the time.

d. Problems are complex.

Section B

1) Identify three modern technologies e.g., SMAC-IT, Advanced Robotics, 3D printing, wearables, etc. to discuss how they impact on individuals and organisation.       (3 marks)

2) Discuss how Big Data is used by organization as a portfolio of modern technology to derive strategies.     (3 marks)

3) COBIT 2019 suggests that a governance system should clearly distinguish between governance and management activities and structures. Discuss the differences between Governance and Management. (3 marks)

4) List three different methods of budgeting and discuss the advantages and disadvantages for each of them. (3 marks)

5) Describe the differences between the traditional ‘waterfall’ development method and the agile development method.    (3 marks)

Section C Mini Case 1 (4 + 3 + 4 + 3 + 6 = 20 marks)

Answer questions 1.1, 1.2, 1.3, 1.4, and 1.5 based on the following scenario. State your assumptions when necessary.

Australia Post

Technological change in the 1980s provided new electronic services for customers: intelpost, e-post and the lettergram. By the late 1980s, Australia Post had a number of competitors in parcels, retail products and courier services. In 1989 the passage of the Australian Postal Corporation Act 1989 meant that Australia Post became  entirely  self-funding. One thing that did   not  change was Australia   Post's  community service obligation to provide an accessible and affordable letter delivery service throughout the country. Australia Post had the exclusive right to carry domestic letters up to 500 grams (now it is 250 grams). Every other part of the business was subject to competition.

The traditional high street    post offices were replaced with modern shopfronts in places where people worked and shopped. Electronic point of sale (EPOS) technology provided additional services for customers. Retail for the first time in years started making a profit. The Australia Post network is now the country’s largest retail network. In 1999, barcoding technology was introduced to read the address and stamp on a barcode for accurate letter sorting. In 2003, Australia Post introduced letter sorting machines.

The letter business

The letter business continues to decline. In the year 2010-11, the letter business declined 3.7 per cent. During the past three years, the letter business declined 12 per cent. At the same time, the delivery network has been expanding as the population expands. Under their community service obligations, Australia Post is obligated to deliver letters five days a week to 98 per cent of the population. Australia Post's response to this challenge has been to develop their multi-channel service offerings to customers. There are a number of initiatives including Send me, Community Update Mail, Sample Post, Decipha, First Direct and eLetter.

Sendme is a service that allows customers to request samples, brochures and other advertiser material via mobile phone. Community Update Mail is a service for councils to be able to efficiently communicate with constituents. SamplePost is a service that allows organisations such as Procter & Gamble and Nestle to send samples to addressed customers. Decipha is a provider of inbound information management services such as document  imaging,  data capture, online forms and workflow for  major  customers.  First  Direct  helps businesses attract and retain customers by giving them access to accurate address and profiling data. The eLetter business provides access to direct marketing products and services.

These technologies and services ensure that Australia Post can sustain a profitable letter business by utilising technology to stay relevant. Customers of Australia Post can lodge mail electronically from their desktops. Australia Post can manage the printing and posting of customised mail items for organisations. Australia Post has also invested heavily in logistics from order processing and warehousing to freight forwarding and customs management.

e-commerce opportunities

As the  letter  business  has  declined, the  parcel  business  has  increased  its  revenue  by  5.3  per  cent.  This increase is largely due to e-commerce, where Australia Post has been able to utilise its expertise in logistics and the parcel business by delivering the products that customers buy online. Australia Post strengthened its  relationship with  eBay, acquired the  payment  gateway  SecurePay and  partnered with  PayPal.  Major customers in this space include eBay, JB Hi-Fi, DealsDirect, GraysOnline and CatchOfTheDay.

In July 2010, Click and Send was integrated into the eBay website and, in December 2010, the co-branded satchel became available. When the online store within eBay was launched in May 2011, 85000 were sold in the first 24 hours.

Revenue from e-commerce is expected to grow substantially in the coming years.

A major challenge has been how to get the goods to the customer if they are unable to be delivered to the customer's home or office. Australia Post has been trialling options, which include:

●     2417 retail zones with parcel lockers for post office box customers and self-service terminals for weighing and lodging parcels

●    a 24-hour parcel collection facility at the St Leonards delivery facility in Sydney.

Australia Post also launched an iPhone and smartphone app that allows customers to track parcels, calculate postage, search for a postcode or retail outlet and pay bills using Postbillpay.

Questions:

1.1) Australia Post has had to change the way it operates over the 200 years it has been in business. Identify two modern technologies that challenged their ‘Letter Business’. Discuss how these technologies challenged Australia Post’s business.     (4 marks)

1.2) Identify four services Australia Post offered, where they used the technologies and/or IT to overcome the issues or challenges mentioned in the previous question.       (3 marks)

1.3)  Identify  any  two  ways  Australia  Post  assisted online  retailers  in  their  business  model.  Discuss  the advantages of using these approaches.    (4 marks)

1.4) When designing IT strategies, one of the considerations that a business should take is understanding customers' pain points. Discuss two pain points of the Australia Post customers.        (3 marks)

1.5) Describe two other services Australia Post could offer to its customers (business & consumer). Discuss how the modern technologies and/or IT assist in providing the services you proposed to achieve business objectives.         (6 marks)

Section C Mini Case 2 (3 + 6 + 3 + 5 + 3 = 20 marks)

Answer questions 2.1, 2.2, 2.3, 2.4, and 2.5 based on the following scenario. State your assumptions when necessary.

Myki – an integrated travel card for Victoria

Kamco (Keane Australia Micropayment Consortium) won $494 million contract to build and operate the Myki system in 2005 and have it operating by 2007. The parent corporation of Kamco, Keane International Inc., is a software engineering application maintenance, program management and consulting services company that had extensive experience in overseeing and project managing transport and technology companies to produce  integrated  system,  and  had  implemented  similar  systems  in  Singapore,  Hong  Kong,  Taipei,  the Netherlands and the US.

Kamco supervised 4 technology and infrastructure companies and their sub-contractors, and provided back- end financial system. The Kamco companies provided the terminal management system and fare collection equipment; communication systems installation and maintenance; automated fare collection systems; and smart cards and related card fulfilment systems.

Kamco’s project management of the myki system required oversight of 4 companies and attention to a range of different problems and unique challenges. Some of these problems were described as ‘technical gremlins’, while other problems involved inadequate resources and slow resolution of software problems. The Victorian government identified governance, project management and effective financial controls as areas causing delays in the development and implementation of the system.

The myki system is required to function over long distances, far from centralised support services and in sometimes rough and dusty environments, while communicating user information to centralised servers. It has been designed from the ground up, and its specifications make it one of the most sophisticated smart card systems planned. Other problems related to the unique Melbourne trams. Trams are essentially large heavy steel boxes powered by electricity and operating in urban canyons of tall buildings. Any of these factors can cause the myki wireless signals to drop out of connection with central servers during operation.