a) Explain any two capital methods that can be used justify the value of information systems (4 Marks)
The payback method This method is quite simple. It is a measure of time required to payback the initial investment of a project. The payback period is computed as follows; The accounting Rate of return on investment (ROI) Organizations make capital investments to earn a satisfactory rate of return. The ROI calculates the rate of return from investment by adjusting the cash inflows produced by the investment for depreciation. It gives an approximation of the accounting income earned by the project. To find the ROI, first calculate the average net benefit as follows This net benefit is divided by the total initial investment to arrive at ROI as follows Net Present Value Evaluating a capital project requires that the cost of an investment (a cash outflow usually in year 0) be compared with the net cash inflows that occur many years later. But these two kinds of cash flows are not directly comparable because of the time value of money. Money you have been promised to receive three, four, and five years from now is not worth as much as money received today. Money received in the future has to be discounted by some appropriate percentage rate usually the prevailing interest rate, or sometimes the cost of capital. Present value is the value in current dollars of a payment or streams of payments to be received in the future. It can be calculated by using the following formula: The net resent value is the amount of money an investment is worth, taking into account its cost, earnings, and the time value of money. The formula for net present value is this: I Present value of expected cash flows — Initial investment cost = Net present value Cost benefit Ratio The cost benefit ration is the ratio of benefits to costs. It sis calculated as follws; Profitability Index One limitation of net present value is that it provides no measure of profitability. Neither does it provide a way to rank order different possible investments. One simple solution is provided by the profitability index. The profitability index is calculated by dividing the present value of the total cash inflow from an investment by the initial cost of the investment. The result can be used to compare the profitability of alternative investments.
What must the management in any institution do in order to ensure successfully system implementation.
1. Managing Technical Complexity: You can use special tools to help you manage the implementation of a new information system (internal integration tools). If nothing else, these special tools will help you communicate with everyone on the implementation team and in the organization as a whole. Use your organization's intranet as much as possible to communicate and inform. 2. Formal Planning and Control Tools: Automated management tools such as PERT or Gantt charts (formal planning and control tools) can also help you manage a complex project. They are extremely beneficial for scheduling events and tracking the hundreds of details involved. 3. Increasing User Involvement and Overcoming User Resistance: We simply can't say it enough! Get them involved and keep them involved. Use the external integration tools to keep people involved and informed. Guard against destructive, although innocent, sabotage of the system (counterimplementation). Remember, people will weigh their own needs against those of the organization. You have to make sure the two agree as much as possible.
QUESTION 1 (a) Define the following terms as used in programmable intelligent agents. i) Agent function. (2mks) ii) Search algorithm. (2mks) (b) In what kind of problem space would a depth first search be better than the breath first search? (4mks) (c) What is an agent program? Explain any four components of a well defined Agent problem (8mks)
QUESTION 1 (a) Define the following terms as used in programmable intelligent agents. i) Agent function. (2mks) A mathematical function which maps each and every possible percept’s sequence to a possible action ii) Search algorithm. (2mks) It is a procedure which takes a problem as input and returns its solution which is represented in form of action sequence (b) In what kind of a problem space would a depth first search be better than the breath first search? (4mks) i) Where less memory is required or is available for use. This is because in depth first search only the nodes on the current path are stored. This contrasts with breath search first where all of the tree that has so far been generated must be stored. ii) If care is taken in ordering the alternative successor states, depth first search may find a solution without examining much of the search space at all. This contrasts with breath first search in which all parts of the tree must be examined to level n before any nodes on level n+1 can be examined. This is particularly significant if many acceptable solutions exist. Depth first search can stop when one of them is found. (c) What is an agent program? Explain any four components of a well defined Agent problem (8mks) A software application which implements the agent function Components: Initial state-starting point of an agent Successor function- x returns S(x) State space – All states reachable from initial state by any sequence of actions Path – sequence through state space