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  1. 1. BB102 Business Information Systems Sep - Oct 2012UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGYQ1.Inputs, processing, and outputs are the three activities for the UPS‟s package tracking system.The inputs include package information, customer signature, pickup, delivery, time-card data,current location, and billing and customer clearance documentation.Processing is transmitting the data to a central computer and stored for retrieval. Data are alsoreorganized so that they can be tracked by customer account, date, driver, and other criteria.The outputs include pickup and delivery times, location while en route, and packagerecipient. The outputs also include various reports, such as all packages for a specific accountor a specific driver or route, as well as summary reports for management. (UPS Assignment,2011)Q2.The three dimensions of UPS tracking system are organizational, management andtechnology. In the organizational dimension contains procedures for tracking packages andmanaging inventory as well as providing package reports and information for UPS customersand customer service representatives. UPS drivers are trained to use the package trackingsystem in order to work efficiently and effectively. (Kenneth C. Laudon, Jane P. Laudon,2002)Besides that, in the management dimension is where the management monitors service levelsand costs. The management is also responsible to expand the product and services whileensuring low cost. With that, the management uses automation to increase the ease of sendinga package via UPS and of checking its delivery status. Through this, UPS will increase itssales revenues as well as to reduce its delivery cost. (Kenneth C. Laudon, Jane P. Laudon,2002)The technology dimension contains handheld computers, DIAD, bar-code scanners, wiredand wireless communications networks, desktop computers, UPS‟s central computer, storagetechnology for the package delivery data, UPS in-house package tracking software, andsoftware to access the World Wide Web. (Kenneth C. Laudon, Jane P. Laudon, 2002) Page 1 of 17
  2. 2. BB102 Business Information Systems Sep - Oct 2012Q3.UPS uses handheld computers (DIAD), scanning system, wireless network, large mainframecomputers, the internet and many other different pieces of software such as trackingpackages, calculating the fees of the package, maintaining the customer accounts andmanaging logistics. (UPS Assignment, 2011)These technologies had helped UPS to maintain its competitive advantage with FedEx andAirborne Express. UPS aims to maintain a high level of customer service while keeping costlow. Besides that, the technology used by UPS had helped the company to increase theirwork efficiency as well as profitably thus increases its operational excellence. Thesetechnologies in the long run will bring the company higher revenue.Q4.In terms of the company, UPS‟s package tracking systems provide value by reducing theamount of paper work. With the introduction of the Delivery Information Acquisition Device(DIAD), the company can now capture customer‟s signatures along with pickup and deliveryinformation through the handheld device. This has tremendously reduced the amount of paperwork to be process and the amount of paper to be provided.UPS‟s package tracking systems also save fuel cost. The dispatchers download the label dataand use special software to create the most efficient delivery route for each driver consideringtraffic, weather conditions and location of each stop. With that, the driver only needs to pickup the handheld device, DIAD and his or her route is provided as soon as the driver logs on.Besides that, the company is able to monitor the delivery cycle of the packages with the helpof the tracking system. This is another value that the system provides. UPS will be able tomonitor and re-route the packages throughout the delivery process. In addition, the companyis now able to answer customers‟ inquiries in a much simpler manner. The customer servicerepresentative is able to track the position and status of the package sender and to reply tocustomer inquiry.In the aspect of customers, the system has a web portal which is able to reduce the cost of thecompany, allowing the fee to be cheaper. Another value that the system brings is customers Page 2 of 17
  3. 3. BB102 Business Information Systems Sep - Oct 2012are able to track their goods and calculate the cost of the deliveries. UPS website providescustomer with information and services regarding their inquiry and package shippingincluding delivery routes, shipping rates, determine time in transit, print label, schedule apickup and track packages. With this, customers are able to determine the delivery route andthereby able to calculate the shipping cost.Q5.Routing problem is one of the problems that the UPS‟s information systems solve. With thehelp of the system, UPS is now able to create the most efficient delivery route that helpsdriver to overcome unavoidable circumstances such as traffic congestions. Another problemthat the information systems solve is keeping the level of services high yet brings the cost andprices down to compete with other competitors. Other than that, UPS‟s information systemssolve the problem of bad delivery and billing information. Customers are able to track themovement of the packages from just accessing the company websites.Q6.Without the UPS‟s information systems, UPS will not be able to compete efficiently andproductively with other competitors and it will not become the largest package deliverycompany as what it is today. (UPS Assignment, 2011) In the case of technology, UPS willnot be able to track the movement of the goods and will only able to provide information at ahigher cost.ReferenceUPS Assignment. (2011, February). Retrieved from Studymode: http://www.studymode.com/essays/Ups-Assignment-596382.htmlKenneth C. Laudon, Jane P. Laudon. (2002). Management Information Systems : Managing The Digital Firm. Prentice-Hall International, Inc. Page 3 of 17
  4. 4. BB102 Business Information Systems Sep - Oct 2012ENTERPRISE APPLICATIONS MOVE TO THE CLOUDQ1.Types of companies that are most likely to adopt cloud-based ERP and CRM softwareservices are small to midsize companies that lack the knowledge about ERP and CRM.Companies that are struggling with lots of data, using too many systems to perform businessfunctions and would like to cut cost are also companies that are most likely to adopt cloud-based ERP and CRM software services.These companies adopt cloud-based ERP and CRM software services because they want toachieve operational excellence and customer intimacy. Besides that, it releases the companiesfrom infrastructural maintenance and its respective fixed (servers, storage, networkingcomponents) and operational cost. Operational ubiquity is also one of the reasons thecompanies would want to adopt cloud-based ERP and CRM software services. Moreover, itallows them to subscribe and cancel the subscription without losing large up-front softwarelicenses and hardware investments.Companies that might not be well-suited for this type of software are companies that areconcern about security issues. In addition, companies that are concern about control of theirdata are also not well-suited for this software. Moreover, large companies that had made hugeinvestments on traditional and customized software that already work will also not be well-suited for this software.Q2.One of the advantages of using cloud-based enterprise applications is availability. Theservices are accessible irrespective of anything given that there is internet connection.Another advantage is it is environmental friendly. Users who uses cloud-based enterpriseapplications gets to reduce electricity expenses. Through saving electricity, the users alsosave on resources to cool off computer and its component. Besides that, it has higher security.Clouds tend to be more secure than traditional business models because clouds offer real-timebackup which results in less data loss. Moreover, it is easy to expand and uses less resources.Users can immediately access more resources if they need to expand their business. They do Page 4 of 17
  5. 5. BB102 Business Information Systems Sep - Oct 2012not need to buy extra infrastructure but only need to inform their cloud provider about theirrequirements.Other advantages are it removes hardware and its complications, easier maintenance of cloudcomputing application, reduce operational costs, maintenance and licensing per users,increase operational efficiency, maintain customer service by enabling rapid response tocustomer requests for information and virtualization technology allows server and storagedevices to be shared and utilization be increased.One of the disadvantages of using cloud-based enterprise applications is internet access. Thisis because it depends on an internet network to access its data but not all countries providecheap or reliable internet connection. Besides that, users will experience loss of control inCloud Service Providers. Users will have lack of control over data, system performance andthe ability to audit or change. Other disadvantages includes decreased flexibility,Q3.Management issue that should be addressed in deciding whether to use a conventional ERP orCRM versus a cloud-based version is service level agreements (SLAs). There is a lack ofservice level agreements concerning ERP and CRM cloud-based solutions and of method toease their respective certification. Besides that, risk assessment is also another issue. Riskassessment is only done by large companies. It is hard to assess the risk when company doesnot own the infrastructure that supports the ERP and CRM system. Dependability is anothermanagement issues that should be addressed in deciding whether to use a conventional ERPor CRM versus a cloud-based version. Companies using cloud-based CRM and ERP solutionmight become dependent of their providers since they do not store data and might not be ableto easily export to another system if required. (AllBestEssays, 2011)In the organization dimension, issue that should be addressed is human resource optimization.While traditional ERP and CRM solutions demand for technical staff, cloud-based solutionsallow optimizing human resource to focus on operation. Another issue is difficult tounderstand for ill-trained users attempting to contain a large, complex group of data.Therefore the issue of training to use the system should be addressed. Moreover, poorusability is also another issue. Poor usability and low usage rates lead many companies to Page 5 of 17
  6. 6. BB102 Business Information Systems Sep - Oct 2012indicate that it was difficult to justify investment in the software without the potential formore tangible gains. (AllBestEssays, 2011)Technology issue that should be addressed in deciding whether to use a conventional ERP orCRM versus a cloud-based version is security. Using the web as infrastructure, cloud-basedERP and CRM solutions have difficulties in offering security, comfort to companies that ownsensible data. Besides that, availability is also another issue that should be addressed. Due toits web-failure tolerance model, cloud-based ERP and CRM solution suffers from availabilitysince that might cause business operation failures. (AllBestEssays, 2011)ReferenceAllBestEssays. (2011, December 11). Inteligencia Emocional. Retrieved from AllBestEssays: http://allbestessays.com/Business/Inteligencia-Emocional/15777.html Page 6 of 17
  7. 7. BB102 Business Information Systems Sep - Oct 2012FACEBOOK: MANAGING YOUR PRIVACY FOR THEIR PROFITQ1.The concept that is illustrated in this case is e-commerce. E-commerce refers to the use of theInternet and the Web to transact business. In this case, Facebook is a website for users tocreate a profile and join various types of self-contained networks without paying any money.But base on its huge number of users, it offers opportunity for companies to do advertisementon the site. Facebook on the other end uses its resource of user information to make profit.The sellers can reach their target customers when they pay for the information and Facebookincrease its revenues by providing its user‟s information.One of the unique features of e-commerce is that it is ubiquity. This means that internet orweb technology is available everywhere and anytime. Facebook can be access anywhere andanytime regardless whether the person is at home or at work as long as there is internetconnection. Another unique feature of e-commerce is it enables global reach. Facebookallows users to connect with people from different backgrounds, culture, beliefs and evenfrom different nations. Universal standard is also one of e-commerce unique features. Withthe implementation of the universal standard, users of Facebook can now communicate witheach other easily. Besides that, richness is another unique feature. Richness is the complexityand content of message. (Laudon, K.C., & Laudon, J.P., 2010)Facebook is able to supportvideos, audio and text messages. As a result, users may convey a richer message with videos,audio and text message to large number of people.Moreover, it enables interactivity. Interactivity is how e-commerce allows for two waycommunication. (Laudon, K.C., & Laudon, J.P., 2010) Users of Facebook may communicateto their friends and colleague about their personal thing and also business. Furthermore,information density is also one of the unique features of e-commerce. Information density isthe total amount and quality of the information available to all market participants, consumersand merchant. (Laudon, K.C., & Laudon, J.P., 2010) Facebook is able to support largeinformation density and this had increases the quality of information. Another feature ispersonalization. The Facebook technology had permit users to modify their message and tocustomize their profile. In addition, Facebook is a social technology. It promotes user contentgeneration and social networking. Page 7 of 17
  8. 8. BB102 Business Information Systems Sep - Oct 2012Q2.The weaknesses of Facebook‟s privacy policies and features started with the introduction ofBeacon. Beacon was a program that shared user‟s purchase information with their friendsautomatically because it was initially an opt-out program. Because of this, it sharedinformation which the users did not intent or agree.Mishandling of News Feed is another weakness of Facebook‟s privacy policies and features.News Feed is a program that was abruptly introduced to the Facebook users that sharesactions with everyone on the Facebook Web. Users update of their profile, adding newfriends and adding applications were automatically appeared on user‟s wall without theoptions of invisible.Another weakness is the inefficient methods of deleting an account. The account that the userno longer wanted to use was impossible to delete. Facebook kept copies even though usershad removed their profiles.In the management dimension, the factor that has contributed to the weakness is Facebookassumed it had the consent of users to share information about them that it collected throughthe Beacon advertising service if they did not use the opt-out feature. Facebook changedBeacon to be an opt-in service and gave users the ability to disable it completely. Thecompany utterly failed to grasp the extent to which the service violated its users‟ privacy aswell as the uproar such a service was likely to cause.In the organization dimension, the factor that has contributed to the weakness is because theoriginal goal of the company is to gain profit and the profit of Facebook is from the pertinentads, which need to collect the user‟s personal information. The personal information collectedon the site represents a mother load to advertisers, but one that will remain largely untappedif Facebook users do not feel comfortable enough or have sufficient incentive to share it.In the technology dimension, the factor that has contributed to the weakness is privacy anduser controls over the information granted to Facebook. Facebook grossly miscalculated userprivacy demands when it launched the company‟s Beacon advertising service because itshared information about users that they had not explicitly intended or agreed to shared. Thecompany‟s servers also maintain copies of information indefinitely in accounts that have beendeactivated. The data mining technology also contributes to the weakness of the policy.Without the data mining technology, we cannot obtain the useful information in the vast Page 8 of 17
  9. 9. BB102 Business Information Systems Sep - Oct 2012amount of data and if it could recognize the user‟s information and match the ads needautomatically, the weakness of the policy will decline.Q3.One of the options that Facebook managers have in balancing privacy and profitability isproviding an environment that becomes richer and more entertaining as the amount ofinformation shared increases. Another option is to remove Beacon advertising service. Withthe released of Beacon, it had helped people share information with their friends about thingsthey do on the web. The problem with this is, Beacon will share the information even if theusers did not intent or agree with. Besides that, Facebook managers should allow users toeither deactivate their account or to delete their account entirely and only saves informationafter deactivation. Moreover, the managers must ensure that the new policy that the users hadpreviously set their privacy to be “friends only” for photo and profile information must not beexposed.To better safeguard user privacy, Facebook have to abandon a port of profit. They have toimprove the safeguard work but decline the profit. For example, creating a new feature thatgives users more control over how they share personal information on the site with otherusers but without disclosing the confidential of themselves.Facebook may well be struggling in its search for a profitable business model, but thecompany has made an impact on multiple levels of the marketing chain. As the real-time webservice gains steam, more entities from big-time corporations to grassroots-level non-profitsare starting to benefit from its enormous reach. Most people are not particularly interested inreading what others had for breakfast but Facebooks reputation as yet another social mediasite with real-time news is gradually evolving toward one as a valuable source of informationacross the media horizon.Q4.To some extent, we anticipate that Facebook will be successful in developing a businessmodel that monetizes their site traffic. This is because Facebook do provide a well-performedand totally free platform for people share information from all over the world, although some Page 9 of 17
  10. 10. BB102 Business Information Systems Sep - Oct 2012critical comments on the privacy problem for some public people, however, now the businessnetwork profile of (at least) the sellers should be integrated with the marketplace with theusers accepting that Facebook can use their data for security reasons (e.g. to eliminate userswith fake profiles from the start) while having them also add more data to be able to act as aseller (more key data within Facebook).This wealth of data enables Facebook to have a sufficiently lower fraud rate and even betterfitting custom offerings for every single user than e.g. Ebay, huge competitive advantages.Special promotions for goods on Facebook will also make it easier for many users to acceptletting Facebook use their existing data strictly for security reasons.Thus, it‟s unworried about the profitability depends on their site.ReferenceHoward, J. E. (2011, January 30). Facebook: A Case Study. Retrieved from ALLVOICES: http://www.allvoices.com/contributed-news/8044201-facebook-a-case-studyLaudon, K.C., & Laudon, J.P. (2010). Management information systems: Managing the digital firm. Upper Saddle River, NJ: Prentice Hall.Rahmatian, M. (2011, May 2). The Future Business Model of Facebook. Retrieved from Ezine Articles: http://ezinearticles.com/?The-Future-Business-Model-of- Facebook&id=6341454 Page 10 of 17
  11. 11. BB102 Business Information Systems Sep - Oct 2012TOO MUCH TECHNOLOGYQ1.The usage of digital media brings many positives impact. The Internet is a source forobtaining and sharing all kinds of information, with online resources that help organizeknowledge and making that knowledge accessible to the world. Besides that, supporters ofdigital media believe that the Internet will increase publishing capability and collaboration aswell as the ability to share information to various users making a huge success for society asa whole.However, the use of digital media also carries many negative impacts. One of which is thatthere will be a handful of negative points and critics against the widespread usage andreliance on digital media. In addition, digital technologies are damaging our ability to thinkclearly and focus, as users develop and inevitable desire to multitask, doing several things atonce. Moreover, the technologies also make us to be easily distracted and detract from ourability to think deeply and retain information. The quality of media is also affected and islowered because of the creation of media such as written blogs, photos and videos by millionsof people. Because of this, the information is now delivered inconsistently andunprofessionally through these resources.Q2.Constant digital media usage might affect the brains ability to think clearly. It also decreasesour capability to pay attention and focus. Technologies such as television, Internet and videogames detract from our ability to think deeply and critically and retain information. Forexample, the Internet offers constant distractions and disruptions, as in hyperlinks to othersites and being able to switch rapidly between multiple windows that prevent our brains fromcreating the neural connections that constitute full understanding of a topic. Besides, ourcapacity to multitask also reduces. Although all these gadgets make knowledge moreaccessible to the world, there may be vast amount of false and inconsistent informationprovided. With all this information within our grasp, we can no longer think for ourselves ordevelop new information. Moreover, the convenience of the digital media world had made usso busy multitasking that it makes it impossible for us to actually retain information. Some of Page 11 of 17
  12. 12. BB102 Business Information Systems Sep - Oct 2012this digital media technology would have a greater negative impact on children as well sincetheir brains are still developing and they already struggle to set priorities and resists impulses.Q3.These arguments do not outweigh the positives of digital media usage because theintroduction to digital technologies had made information more accessible to all. It gives easyaccess to connect the world. Since knowledge is easily attainable, the desire for learning hasincreased and people especially children are becoming keener and more well-rounded. Moreimportantly, it solves an inextricable problem we cannot avoid. No matter who you are,where you are from, you have a brain with limited storage as long as you are human-beings.In the future, technology will continue to develop and become a greater asset to the world.So, people should be optimistic of all the new developments in digital media.Q4.The additional concern is that children have developing brains and digital technologies maycontribute to the child‟s struggles to set priorities and resist impulses. Children under the ageof 8 should not use cell phones. At such a young age, children shouldn‟t have a reason tocarry around this kind of device especially since they should always be under the supervisionof their parents or other adults. Another reason is because the ability to communicate face-to-face is very important. If they do not have enough practice now, they may lose confidenceand may get scared of speaking in public in the near future. Moreover, the radiation from thecomputers and cell phones can affect children more because they experience brain evolutionwhich may absorb more radiation.However, computer usage should be encouraged even at the age of 8 or younger. This is theage at which children comprehend the world actively and during this time, a computer canhelp with the development of certain skills. Psychologists, for example, state that work on acomputer develops concentration skills. (Parenting - Guidelines for Computer Use InvolvingChildren, 2012) So the knowledge presented through computers should be taught toelementary school kids. There are programs and games for computers that are informative Page 12 of 17
  13. 13. BB102 Business Information Systems Sep - Oct 2012and help children learn and develop in ways that may be different than in school or fromparents.On the other hand, computer usage may bring forth many negative effects. One of thenegative effects is lack of exercise. Children who spend a lot of time in front of screens canbe overweight due to less activity. (Monahan, 2011) Another negative effect is physicalcomplain. Too much time spent in front of a computer screen can cause eye, neck and backstrain in children. Additionally, inappropriate content is also one of the negative effects. It ispossible for your child to accidentally click on an inappropriate link to get the website ofwhich you wouldn‟t approve. (Monahan, 2011) Therefore, parents have to monitor theirchildren computer usage.ReferenceParenting - Guidelines for Computer Use Involving Children. (2012). Retrieved from Woman Knows: http://www.womanknows.com/parenting/news/142/Monahan, E. (2011, May 1). LIVESTRONG. Retrieved from Negative Effect Of Computers On Young Children: http://www.livestrong.com/article/127152-negative-effects- computers-young-children/?utm_source=undefined_R1&LS-2659 Page 13 of 17
  14. 14. BB102 Business Information Systems Sep - Oct 2012A ROGUE TRADER AT SOCIETE GENERALE ROILS THE WORLD FINANCIALSYSTEMQ1.One of the concepts that are illustrated in this case is system vulnerability. System can bevulnerable because of accessibility of networks, hardware problems such as breakdowns,configuration errors and damage from improper use or crime, software problems such asprogramming errors, installation errors and unauthorized changes, disasters, use of networksor computer outside of firm‟s control and loss and theft of portable devices. Systemvulnerability can be linked to computer crime. Computer crime is using computers asinstruments of crime to defraud the bank, customers and other financial institutions. Inaddition, internal threats from employees are also considered system vulnerability. Kervielhas access to privileged information and he was able to run through the organization‟s systemwithout leaving a trace.Another concept illustrated is role of auditing. MIS audit examines the firm‟s overall securityenvironment as well as controls governing individual information systems. Besides that,security policy is also another concept illustrated in this case. Security policy determinesacceptable user‟s information resources and which members of the company have access toits information assts.Moreover, risk assessment is also a concept that is illustrated. Risk assessment determines thelevel of risk to the firm if a specific activity or process is not properly controlled.Furthermore, information system controls is also the concept. General controls govern thedesign, security and use of computer programs and the security of data files in generalthroughout the organization‟s information technology infrastructure. Application controls isan automated and manual procedures that ensure that only authorized data are completely andaccurately processed by that application.Q2.Factors of management, Kerviel‟s supervisors saw a balanced book however they did notrecognize the substantial risk exposed to the bank. This is because of the way Kerviel enteredthe transaction. Kerviel worked late into night and took four vacation days over the course of Page 14 of 17
  15. 15. BB102 Business Information Systems Sep - Oct 20122007, which prevent his activities from be detected. Managers did not enforce vacationpolicies that would allowed them to scrutinize his work when he gone. Allegedly he used hismanager‟s computer to execute several of his fraudulent trades while the manager watchedhim. Kerviels lawyers had argued that he acted the acquiescence of superiors during hisearly success of fraudulent activity.Factors of organization, Kerviel gained familiarity with many of the security of company isprocedures and back-office system. After that, he moved to another job and uses thatknowledge. He knew the system of SocGen‟s internal control for which allowed him to falsehis fake trades. The bank ignored many warning about the level of fraud he was capable of.Last, the bank failed to follow all the warning about Kerviel.Factors of technology, Kerviel was able to using other employees‟ access codes and user‟sinformation to enter fake trades. The system failed to detect his performed legitimatetransaction in one direction, but falsified the hedges that were supposed to offset thelegitimate ones. He entered the false transactions in a separate portfolio, distinct from his realtrades. SocGen‟s controls are capable of detecting more complicated errors and fraudulenttransaction than the simple ones that Kerviel allegedly committed.Q3.In the beginning, we consider that managers and executives who work in SocGen should beheld responsible for Kerviel‟s trading losses, because they are the ones who should be settingpolicies and manage and enforcing them to prevent these kinds of activities from happening.However, later on, we think about the MIS auditors actually should be held responsible forthe trading losses.Since SocGen‟s systems were capable of detecting complicated errors and fraudulenttransactions which were more advanced than those committed by Kerviel. Still, Kerviel wasable to commit very simple fraudulent transactions, and at same time cannot be detected.Obviously, the system controls were not perfect as they should have been. Yet there wereseveral other system vulnerabilities, Kerviel was able to utilize to commit its fraud. Page 15 of 17
  16. 16. BB102 Business Information Systems Sep - Oct 2012Through the article, we can know that managers decided to unload Kerviel‟s activitiespositions soon after discovering the fraud, despite the fact that the market conditions at thetime were decidedly unfavourable. That led to even greater problems in the global financialworld.As further mentioned in the article, the SEC launched an investigation into whether or notSocGen violated U.S. securities laws by unwinding Kerviel‟s positions covertly after thefraud was revealed as well as whether or not insider information played a role in the sellingof SocGen stock prior to the announcement of the scandal.Q4.One way SocGen could have prevented Kerviel‟s fraud is placing and enforces strongerauditing procedures. Auditors can trace the flow of sample transactions through the systemand perform tests using automated audit software. Besides that, banks should institute accesscontrols to prevent improper access to systems by unauthorized insiders and outsiders. Thebank could have used other sophisticated authentication technologies such as tokens, smartcards or biometric authorization instead of simple passwords. With that, it could haveprevented Kerviel from being able to use other employees‟ access codes to enter transactions.Using forensic techniques and technologies is also another way. Electronic evidence in theform of computer files exists in the computer storage media and is not visible to the generalusers. Data that Kerviel deleted on the bank‟s storage media could have been recoveredthrough various techniques as the data could have been used as evidence at his trials.Moreover, intrusion detection systems could have been installed that would have beendetected few of Kerviel‟s activities. These systems will help to generate alarms if they find anexquisite or suspicious event. They also check to see whether the important files have beenmodified or not. This is because monitoring software examines the events as once they tookplace to find out security attacks during the progress. Many Kerviel‟s errors, like „offsetting‟transactions could have been detected by using one of these systems. Page 16 of 17
  17. 17. BB102 Business Information Systems Sep - Oct 2012Q5.General controls govern the design, security, and use of computer programs and the securityof data files in general throughout the organization‟s information technology infrastructure.These controls which could be separated and addressed to software controls, physicalhardware controls, computer operations controls, data security controls, controls overimplements of system processes, and administrative controls.Application controls is a specific controls unique to computerized application. It includesboth automated and manual procedures that ensure only authorized data are completely andaccurately processed by applications. In addition, application controls include input controls,processing controls, and output controls.Acceptable use policy: SocGen should create an AUP to define acceptable uses of the firm‟sinformation resources and computing equipment, including desktop and laptop computers,wireless devices, telephones, along with the Internet. A good AUP defines unacceptable andacceptable actions for every user and specifies consequences for non-compliance.Authorization management system establishes where and when a user is permitted to accesscertain parts of a Web site or a corporate database. Such system would allow each user accessmerely via to those portions of a system that himself is permitted to enter, based on theinformation established by a set of access rules.ReferenceWhitmire, E. (2009, 12 5). Retrieved from docstoc: http://www.docstoc.com/docs/5871267/Bus270_SG-CSQ_ekw Page 17 of 17