COE131

Systems Analysis and Design

Name: _______________________________ Date: ____________________

Course-Section: _______________________

Situation:

I. You are the IT manager at Low-Voltage Components, a medium-sized firm that makes
specialized circuit boards. Low-Voltage’s largest customer, TX Industries, recently installed a
computerized purchasing system. If Low-Voltage connects to the TX system, TX will be able
to submit purchase orders electronically. Although Low-Voltage has a computerized
accounting system, that system is not capable of handling EDI.
1. Should Low-Voltage develop a system to connect with TX Industries’ purchasing
system? Why or why not?
2. What terms or concepts describe the proposed computer-to-computer relationship
between Low-Voltage and TX Industries?
3. Is Low-Voltage’s proposed new system a transaction processing system? Why or
why not?
4. Before Low-Voltage makes a final decision, should the company consider an ERP
system? Why or why not?
II. Some experts believe that the growth in e-commerce will cause states and local
governments to lose a significant amount of sales tax revenue, unless Internet transactions
are subject to sales tax. Do you agree? Why or why not?

III. Computers perform many jobs that previously were performed by people. Will computer-
based transactions and expanded e-commerce eventually replace person-to-person
contact? From a customer’s point of view, is this better? Why or why not?