COMP3760 - COMP6760 Exam Answer all questions 3 hour exam – Turnitin submission window is 6 hours – do not submit at the last minute. Section A = 50 marks Section B = 50 marks Friday November 13th 15:00 – 21:00 hours A 3 hour exam with a 6 hour window of time to complete PDF your section A and submit to that iLearn submission site PDF your section B and submit to that iLearn submission site COMP3760/6760-2020 Page 2 Section A: Business 50 marks COMP3760-COMP6760 S1, 2020 Sample Examination Part A Part A consists of THREE (3) questions. You should aim to complete Part A in 90 minutes. Please submit your answers to Part A in the Part A Turnitin submission tool. Section A 50 marks Question A1 (Background to eBusiness) (20 marks) eCommerce can take a variety of forms such as Business-to-Consumer; Business-to-Business; Business-to-Administration and Consumer-to-Administration. After reading the following articles, explain the current changes in eCommerce and the factors affecting these changes. Naturally you are free to find other material to support your arguments. Benson, S., (2020) “Scott Morrison: Digital to extract us from crisis” The Australian October 21st (URL: https://www.theaustralian.com.au/nation/politics/scott-morrison-digital-to-extract-us- from-crisis/news-story/8d26913007c258e28d3935b444a743b8 accessed 21/10/20) Scott Morrison says ‘our challenge is to keep the foot on the digital accelerator, as we emerge on the other side of this pandemic’. Picture: Gary Ramage Scott Morrison has set a challenge to make Australia one of the world’s leading digital economies within a decade by using the COVID-19 crisis as a “springboard” to revolutionise key industries. In a speech to the The Australian E-commerce Summit on Wednesday the Prime Minister will lay out his government’s digital blueprint to help lift the country out of recession. “Our challenge is to keep the foot on the digital accelerator, as we emerge on the other side of this pandemic,” Mr Morrison will say. “Whilst we can marvel at the innovation and the digital acceleration, the bigger picture is that our economy has taken a massive hit.” “So we have two stories happening simultaneously in Australia — COMP3760/6760-2020 Page 3 an economy that is experiencing the worst set of economic circumstances since the Great Depression, and ferocious adaptation that businesses have engaged in to keep these circumstances at bay.” The Prime Minister’s comments came as a study found digital transactions helped more than 60 per cent of businesses keep operating during the crisis by limiting revenue losses to 7 per cent — even though in-store revenues fell by 21 per cent. The study by Deloitte, commissioned by Australia Post, found revenue losses for small businesses would have been 30 per cent rather than 17 per cent were it not for e-commerce revenues. Australia Post chief executive Christine Holgate, delivering one of the key speeches at the summit on Wednesday, said the Deloitte research highlighted the unprecedented demand Australia Post had experienced, delivering four out of five items across the country. “Australians are embracing home delivery in record numbers and this analysis shows that over the next 12 months home delivery is expected to remain 25 per cent higher than pre-COVID levels,’’ she said. “That is a significant challenge for us as the engine room of Australian e-commerce, but one we are prepared for.” The Prime Minister will tell the summit that 2020 has been “a thunder clap to so much of what we assumed to be normal”. “While some parts of the economy, by virtue of the pandemic restrictions, were frozen in place, others had to accelerate at warp speed,’’ he will say. Mr Morrison will say in the first three weeks of this pandemic, a quarter of Australian business changed the way they deliver. About 40 per cent of small and medium businesses bought or installed the software for remote working, while another 22 per cent said they were headed in that direction. He will tell the summit a McKinsey study “found that we vaulted five years forward in consumer and business digital adoption in only around eight weeks”. The Prime Minister will outline his government’s key digital policy planks, which include the JobMaker Digital Business Plan. “We’re basically upgrading the circuit boards of our economy,’’ he will say. “Our plan brings together investments of some $4.5bn in the NBN, $1.67bn in cyber security, and almost $800m of investments in 5G, digital skills capability, RegTech, FinTech, open banking and the consumer data right. “This is about using the gains we’ve just made this year as a springboard to becoming a leading digital economy by 2030. “An economy where our leading industry sectors – like mining, agriculture, manufacturing and services, as well as small businesses – are at the global frontier of technological adoption enabling them to scale-up and grow.” Australia Post has been at the frontline of the e-commerce boom triggered by the pandemic, with about 82 per cent of Australia’s e-commerce by value delivered by its network, and the mail carrier facilitating an additional $4.2bn in e-commerce at the height of the crisis. Communications Minister Paul Fletcher said Australia Post had provided many businesses with a critical connection to customers and communities across the nation. “It underscores the reason why the government agreed to grant temporary regulatory relief to Australia Post at the start of the pandemic, allowing posties to be upskilled to help deliver the increasing volume of parcels.’’ Award-winning journalist Simon Benson is The Australian's National Affairs Editor. He was previously the Daily Telegraph’s NSW political editor, and also president of the NSW Parliamentary Press Gallery. He grew up in Melbourne and studied philosophy before completing a postgraduate degree in journalism. COMP3760/6760-2020 Page 4 Greenblatt, E., (2020) “E-commerce the ‘saviour’ of business” The Australian October 20th (URL: https://www.theaustralian.com.au/business/ecommerce-the-saviour-of-business/news- story/181eafba1a7621df6144f2a31871e484 accessed 21/10/20). Australia Post chief executive Christine Holgate said the Deloitte research reaffirmed the unprecedented demand for online retail through COVID-19. Picture: John Feder The nation’s burgeoning collection of online shopping sites, marketplaces, and other benefits of online retailing, such as click and collect and home deliveries, has helped Australian businesses weather the worst economic downturn since the Great Depression. In many instances, the pivot to online helped many businesses limit the dent to their revenue and protected some jobs from going to the wall. This insulating feature of e-commerce was particularly acute for small businesses. A new report from Deloitte commissioned by Australia Post on the role played by e-commerce during the COVID-19 pandemic has helped shine a light on the resilience and performance of the digital economy. It comes as The Australian on Wednesday kicks off its two-day Australian E-commerce Summit 2020, where the sector will be reviewed and analysed by some of the nation’s leading chief executives and industry experts, with particular emphasis on the role it has played during the health crisis. “One saviour during the crisis has been e-commerce services and online activity,’’ the Deloitte report says. “In the year to July, online spending rose by 72.5 per cent from the same month in 2019. “Buying and selling through e-commerce platforms has provided consumers with a new way of purchasing during the crisis and helped keep businesses operating and staff employed. “Purchasing decisions and the way consumers shop has also changed as a result of the crisis. Lack of access to shops, local lockdowns and safety and security are among the reasons consumers are shifting online. Businesses are providing their consumers with the ability to access core services and products in this constantly changing environment.” The Deloitte report finds that, for goods-related businesses, e-commerce helped 61 per cent of businesses keep operating during the crisis by limiting revenue losses to 7 per cent — even though in- store revenues fell by 21 per cent. The results are even more stark for small businesses, Deloitte says, where revenue losses would have been 30 per cent rather than 17 per cent were it not for e-commerce revenues. It says e-commerce also helped protect jobs during COVID-19, with 73 per cent of businesses keeping people employed during the crisis because of digital platforms. COMP3760/6760-2020 Page 5 Small agricultural business Logan Wines is typical of the cohort of regional firms now chasing a greater slice of their earnings online. Before the COVID-19 crisis, the majority of its sales were through its cellar door in the regional NSW wine town of Mudgee. Owner and winemaker Leigh Sargent said the three to six months before the pandemic were hard because of bushfires and the impact of smoke damage, with cellar door sales diving as a result. “Our revenue from the cellar door had dropped 30-40 per cent and then the COVID-19 pandemic hit and there was a further decrease in sales because of restrictions on regional travel in the state,’’ Mr Sargent said. “During the peak of the COVID-19 crisis, our online sales increased, however, the sales from the website didn’t cover the loss of sales from our cellar door. “We do have a wine club with a loyal membership base and this helped to keep us operating.” Deloitte says businesses that took action to drive e-commerce achieved the best results. Those who invested in e-commerce saw almost no fall in revenue while those who didn’t recorded an average fall of 12 per cent. Australia Post has been in the front lines of this boom, with 82 per cent of the nation’s e-commerce by value delivered by Australia Post’s network, and the mail carrier facilitating an extra $4.2bn in e-commerce at the height of the crisis. Australia Post chief executive Christine Holgate said the Deloitte research reaffirmed the unprecedented demand for online retail through COVID-19. “We have seen e-commerce accelerate through this pandemic, with Australia Post providing a valuable lifeline to many businesses, as our people work tirelessly to help deliver the additional $4.2bn in online spending activity,” Ms Holgate said. “Australians are embracing home delivery in record numbers and this analysis shows that over the next 12 months home delivery is expected to remain 25 per cent higher than pre-COVID levels”. Deloitte says before the crisis, 53 per cent of purchases were made in person. “Today, it’s down to 42 per cent … the shift towards digital is here to stay, with an estimated 45 per cent of purchases set to be completed online in the future.” Senior Business Reporter Eli Greenblat has written for The Age, Sydney Morning Herald and Australian Financial Review covering a range of sectors across the economy and stockmarket. He has covered corporate rounds such as telecommunications, health, biotechnology, financial services, and property. He is currently The Australian's senior business reporter writing on retail and beverages. COMP3760/6760-2020 Page 6 Question A2 (eBusiness Relationships) (20 marks) The nature of supply chains is rapidly evolving. With reference to the following articles in the Australian newspaper below and other articles you might find – discuss the changes taking place in supply-chain relationships. Provide some examples. Lyall, A., Mercier, P., Gstettner, S., (2018) “Demand for supply chain management a victim of disruption” The Australian June 23rd (URL: https://www.theaustralian.com.au/business /harvard-business-review/demand-for-supply-chain-management-a-victim-of-disruption/news- story/7bdc1f80a57726ea7636782efc9b75ae accessed 20/10/20). Rio Tinto is exploring how digital technologies can automate mine-to-port operations Picture: Bloomberg The supply chain is the heart of a company’s operations. To make the best decisions, managers need access to real-time data about their supply chain, but the limitations of legacy technologies can thwart the goal of end-to-end transparency. However, those days may soon be behind us. New technologies that have the potential to take over supply chain management are disrupting older ways of working. In five to 10 years, the supply chain function may be obsolete, replaced by a smoothly running, self- regulating utility that manages end-to-end workflows and requires little human intervention. With a digital foundation in place, companies can capture, analyse, integrate and access high-quality, real-time data — data that fuels process automation, predictive analytics, artificial intelligence and robotics, the technologies that soon will take over supply chain management. Leading companies are already exploring the possibilities. Many have used robotics to digitise and automate labour-intensive processes such as purchasing, invoicing and customer service. Predictive analytics are helping companies improve demand forecasting so they can reduce or better manage volatility, increase asset use and provide customer convenience at an optimised cost. Sensor data on machine use is helping some manufacturers to better estimate when machines will break down so that downtime is minimised. Blockchains are beginning to revolutionise how parties collaborate in flexible supply networks. Robots are improving productivity and margins in retail warehouses and fulfilment centres. Delivery drones and self-driving vehicles aren’t far off. Rio Tinto, the global resources company, is exploring how digital technologies can automate mine-to-port operations. Using driverless trains, robotic operators, cameras, lasers and tracking sensors, the company will be able to manage the whole supply chain remotely while improving safety and reducing the need COMP3760/6760-2020 Page 7 for workers in remote locations. A key concept that many of these companies are exploring is the “digital control tower” — a virtual decision centre that provides end-to-end visibility into global supply chains. For a small number of leading retail companies, control towers have become the nerve centre of their operations. A typical “tower” is a physical room staffed with data analysts that monitor a wall of high-definition screens 24/7. The screens provide real-time information and 3-D graphics on every step of the supply chain, from order to delivery. Visual alerts warn of inventory shortfalls or process bottlenecks before they happen so teams on the frontline can course-correct quickly before serious problems emerge. Live data, accuracy, relentless customer focus and analytical leadership underlie the control towers of these retail operations. Industrial companies also are embracing the concept. One manufacturer’s complex network moves more than a million parts and components a day. The control tower flags potential supply issues as they arise, calculates the effects of the problem and automatically corrects the issue or flags it for the escalation team. The trend is clear: technology is replacing people in supply chain management — and doing a better job. It’s not hard to imagine a future in which automated processes, data governance, AI and a continual learning loop will minimise the need for humans. When planning, purchasing, manufacturing, order fulfilment and logistics are largely automated, what’s left for supply chain professionals? In the short term, supply chain executives will need to shift their focus from managing people to designing and managing information and material flows with a limited set of highly specialised workers. In the near term, supply chain analysts who can structure and validate data sets, use digital tools and algorithms, and forecast effectively will be in high demand. Looking further out, a handful of specialists will be needed to design the technology-driven supply chain engines that seamlessly support the ever- changing strategies of their businesses. To keep these engines running, people must be recruited or trained in skills at the intersection of operations and technology. Since the skills needed for these new roles are not readily available today, the biggest challenge for companies will be to create a supply chain vision for the future and a strategy for filling those critical roles. The death of supply chain management as we know it is on the horizon. The managers and companies working today to update their processes are the ones who will come out on top. Allan Lyall was Amazon.com’s vice-president of European operations for more than 12 years. Pierre Mercier is a senior partner and managing director at the Boston Consulting Group. Stefan Gstettner is an associate director at the Boston Consulting Group. HARVARD BUSINESS REVIEW COMP3760/6760-2020 Page 8 Kara, N., (2018) “The benefits of 5G for data-driven supply chains” The Australian December 13th URL: https://www.theaustralian.com.au/business/technology/opinion/the-benefits-of-5g-for- datadriven-supply-chains/news-story/b3ee5e71d26784918333aec1e1fee06b accessed 21/10/20). Supply chain management is rapidly evolving to a place where data-driven decision-making is the norm. Digital-native retailers like Amazon and Alibaba are powerfully role-modelling the potential of mastering data to predict and optimise inventory and maximise efficiency of product delivery. Any retailer with a desire to improve customer experience or reduce costs can ill afford to ignore this reality. New data shows that most retail and supply chain professional are working diligently to take advantage of the data opportunity that lies in their upstream and downstream relationships. The majority of industry professionals interviewed for Telstra’s Data Driven Supply Chain report confirmed their organisations aspire to become more data driven (65 per cent), while 57 per cent want to become more advanced in their analysis of data. As one executive put it: “In the eighties, data was more about making sure you ordered the right stock. Nowadays every part of the supply chain can be driven by some data decision.” It’s no surprise then that retail and supply chain professionals are forging ahead with initiatives intended to fine-tune their supply chain management using insights from data. The Internet of Things (IoT) is becoming increasingly crucial and accessible as a supply chain management tool, thanks to its capacity to collect and share data at scale. The supply chain is an obvious place to look to start clawing back competitive advantage. The Reserve Bank of Australia estimates that warehousing, transporting and handling goods from the point of manufacture to the point of purchase can constitute as much as 40 per cent of retail prices. According to the survey, improvements in delivery in full on time (70%) and better utilisation of assets across the network (62%) stand out as the most sought after benefits of data driven supply chain initiatives. Relationships and technology Data can be easy to collect but hard to manage. Attaining better data-driven supply chain management will require businesses to address several concerns. Relationships with suppliers is one. The key is to be able to not just capture data, but combine it with data from other sources — including partners you are working with — and analyse it rapidly. Another is technology, including those platforms, tools and applications needed to collect data at scale, such as IoT, to analyse it automatically or close to automatically, and collaborate around it — such as 5G. In addition to overcoming competition from other areas of the business for IT investments and addressing skills shortages, CIOs will need to ensure their systems and devices are not hampered by their network infrastructure. Reducing latency, the delay between when a signal is sent and when it is received, is going to be critical if retailers are to truly derive value from devices throughout the supply chain. As is the speed at which data analysis can occur in the cloud. Security of the asset we are going to be moving around, our data, is also a key priority for retailers. Making sure the data emitted gets to the recipient as quickly as possible, can be analysed, and does not become a source of competitive threat in the hands of a competitor is crucial. Just as supply chain management is evolving, so too has the underlying network infrastructure that will enable the devices and applications that support it. Where 2G networks were designed for voice, 3G for voice and data, and 4G for broadband internet experiences, the next generation of cellular network technology, 5G, is the ideal platform for leveraging the IoT revolution and transforming the supply chain. 5G’s advantages for the data-driven supply chain 5G will empower those looking to take their supply chain management to the next level with several critical advantages. Ultra-low latency: 5G’s data transmission speeds are not like anything we’ve seen before. Imagine being able to achieve speeds of 4 gigabits, or 500 megabytes, per second. Moving and COMP3760/6760-2020 Page 9 analysing data at such speeds in the supply chain has enormous potential to help businesses move goods faster and smarter too. Greater flexibility: Much of the control plane of 5G will be software-based, using high-speed commodity infrastructure rather than specialised hardware. This means the behaviour of the network can be tailored to companies individualised use cases and changing needs — like increasing your bandwidth as you grow at a specific warehouse at the flick of a switch — while minimising hardware costs. Finer-grained network slicing: Network slicing allows operators to segment a physical network into several virtual networks. In this way, customers can gain their own dedicated pipeline and the specific functionality they need to get work done when needed without being slowed down by others on the network. Security: Valuable supply chain data can be made more secure thanks to baked-in capability of 5G to support fine-grained, dynamic network slicing to isolate traffic on a particular network path, and it’s very flexible approach to security. 5G and IoT technologies will provide a firm foundation for leveraging data insights and transforming supply chain management. For the retail CIO, ensuring that their organisation is empowered with fast, flexible and secure networks is a less visible but absolutely fundamental part of a successful data-driven supply chain strategy. Neriman Kara is Principal, Supply Chain Growth at Telstra. COMP3760/6760-2020 Page 10 Question A3 (Business Modelling) (10 marks) ‘As-Is’ Parameters Using the relevant symbols above, produce a To-Be model with the parameters given in the table below. You may make your own assumptions about the media/medium used, flow durations, nature of the entities, etc. Entities, Tasks, Decisions Document Process Times Role Total Cost Type Elapsed Working ($1,000s (min) (min) p.a.) CYCLE Hospital Stores Create Purchase Order Fax 40 20 Stores Clerk 50 Wholesaler Enter Order into System e- Sales Order 30 15 Order Clerk 50 Decision- All Items In Stock - 80% e- Picking Slip 10 5 Order Clerk 50 Item(s) Out of Stock - 20% Backorder Entry 10 5 Order Clerk 50 Pick Order Packing Slip 240 30 Storeman 45 Deliver Order to Stores Delivery Docket 240 30 Driver + Truck 100 Hospital Receive order into stores Goods Received 180 20 Stores Clerk 50 Note (GRN) Process Wholesaler Invoice Approved Invoice 30 20 Payables Clerk 45 Generate and Mail Cheque Cheque 30 10 Payables Clerk 45 Apply for Credit Claim Discrepancy Report 30 20 Payables Clerk 45 (incorrect codes, prices, UOM etc. - assumes that all orders have a problem) Wholesaler Process Hospital Credit Claim Credit Claim 30 20 Receivables Clerk 45 Task Process Decision Choice Phi Connector External Entity External Process 1 Go To Stop Stop Annotation COMP3760/6760-2020 Page 11 Section B: Technology 5 questions – 50 marks COMP3760-COMP6760 S1, 2020 Sample Examination Part B Part A consists of THREE (3) questions. You should aim to complete Part A in 90 minutes. Please submit your answers to Part B in the Part B Turnitin submission tool. Section B 50 marks Question B1 (Data/Application/System Integration) (20 marks) We will let you read through an online article/report in an area, for example, criminal investigation that needs data and services from different systems, to discuss: • How data from different systems could/should be integrated, how services or processes can be integrated to support criminal investigation. • The discussion needs to be based on the cases in the article. Question B2 (Service Integration) (15 marks) A business scenario will be provided. You will be asked to draw an integrated business process using BPMN notation. Question B3 (XML and XML Schema) (15 marks) Develop an XML Schema for a given example xml document. Make sure specifying some constraints on: e.g., element occurrence, simple data types.
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