The internal audit department of Hastone Manufacturing Company recently concluded a routine examination of the company's computer facilities. The auditor's report identified as a weakness the fact that there had been no coordination by the data processing services department in the purchase of PC systems used by individual departments of Hastone. Six different hardware manufacturers supply the computers that use different operating systems. In addition, several different software vendors provide spreadsheets, word processing, and database appli- cations, along with some networking applications. PCs were acquired in the operating depart- ments to allow employees in each department to conduct special analyses. Many of the departments also wanted the capability to download data from the mainframe. Therefore, each operating department had requested guidance and assistance from the data processing services department. Data processing, however, responded that it was under- staffed and must devote full effort to its main priority, the mainframe computer system. In response to the internal audit report, the director of data processing services, Stan Marten, issued the following memorandum.

Policies must be instituted immediately to standard- ize the acquisition of PCs and applications software. The first step is to specify the spreadsheet software that should be used by all personnel. From now on, everyone will use Micromate. All PC hardware should be Microsoft compatible. During the next month, we will also select the standard software for word processing and database applications. You will use only the user packages that are prescribed by the data processing services department. In the future, any new purchases of microcomputers, hardware, or software must be approved by the director of data processing services. Several managers of other operating departments have complained about Marten's memorandum. Apparently, before issuing this memo, Marten had not consulted with any of the users regarding their current and future software needs.

Required: 

a. When acquiring PCs for various departments in an organization, describe the factors. related to:

1. Computer hardware that needs to be considered during the initial design and set-up phase of the microcomputer environment.

2. Operating procedures and system controls that need to be considered.

b. Discuss the benefits of having standardized hardware and software for microcomputers in an organization.

c. Discuss the concerns that the memorandum is likely to create for the microcomputer users at Hastone Manufacturing.

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TO: FROM: REFERENCE: All Employees Stan Marten, Director Microcomputer Standardization