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Part B: Answer 1 (ONE) question only from Part B. All questions are of equal value.
Please read the Business Information Solutions case study below Business Information Solutions (BIS) is an information and communications technology (ICT) support company. It provides ICT support for firms in the tourism, accommodation and travel industry_ It has 45 clients who outsource their ICT to BIS. The 45 clients include airlines, hotels, resorts, travel agents, and tour operators. Currently, BIS allocates its clients to one of its eight (8) service regions Each region has a regional head office (RHO). Each region is supported by one of its four (4) Client Liaison Information Centres (CLICs). At the RHOs and the CLICs the following types of staff are employed:
• Senior software designers (Snr SDs), all have relevant university-level qualifications with many having postgraduate degrees_ The Snr SDs also have considerable ICT work experience. ranging from 10 to 20 years.
• Software designers (SDs), are mostly recent IT bachelor degree graduates (with a few studying part-time for a degree) with limited ICT work experience, ranging from 2 to 8 years_ The work of SDs is supervised by a Snr SD_
• Senior technicians (Snr Techs), who are either TAFE qualified or have lengthy work experience. Many of the Snr Techs are former telecommunications company employees (e.g. Telstra) with between 5 to 15 years work experience with a telecommunications company_
• Technicians (Techs), who are mostly young (under 25) with no qualifications and little ICT work experience but just have a 'flair" for computer systems and IT. The Techs gain considerable on-the-job training under the supervision of Snr Techs_
• Client relations offices (CROs), who operate the BIS call centre at each RHO and also process client accounts. None of the CROs have formal qualifications but they do have extensive retail and sales industry experience with a customer relations focus.
These BIS staff are promoted into higher paying classification levels based on a combination of their supervisor performance rating, client 'work satisfaction" reports, and the attainment of new and relevant qualifications. For example: Techs can be promoted to Snr Techs, and SDs can be promoted to Snr SDs. For Snr SDs and CROs they can advance to a higher pay increment based on a similar method.
The 4 CLICs are designated by points of the compass: North, East, West. and South_ CLIC East and CLIC West are smaller than both CLIC North and CLIC South. BIS uses an ICT system called `Computer Automated Recovery Display System" (CARDS). This is old technology first developed in 2003_ It is intended that CARDS will be replaced with the more recently developed system called New Automated Technology Control' (NATCON). CLIC East has almost made the transition from CARDS to NATCON, and it is expected this will be completed in the next few months.
Last year a new CEO was appointed. Six months after her appointment the new CEO forwarded to the Board of Directors a draft "Organisational Change Proposal" for approval. The draft proposal is:
The tourism, accommodation and travel industry is confronted with serious economic problems. The deteriorating economic conditions are affecting the entire industry, including BIS clients. As a result, BIS is confronted with significantly reduced revenues, increasing operating costs, and minimal earnings growth projections for the foreseeable future. Therefore the current and mid-term income levels for BIS are correspondingly too low for our current cost levels.
To respond to this new external environment, a plan for the long term and to create a modern and flexible organisation is proposed. A "results improvement program" will allow for investments in
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