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 microcomputer systems for the individual departments of Hastone. Among the twelve microcomputers in the organization, there are three different hardware manufacturers. In addition, there are four to five different software vendors for spreadsheets, word processing, and database applications, along with some networking applications for clusters of microcomputers.

Microcomputers were acquired in the operating departments 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 understaffed and must devote its 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, has issued the following memorandum. pro: All Employees

FROM: Stan Marten, Director

REFERENCE: Microcomputer Standardization

Policies must be instituted immediately to standardize the acquisition of microcomputers 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 microcomputer hardware should be MS-DOS 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 memorandum, Marten had not consulted with any of the microcomputer users regarding their current and future software needs. Required:

1. When acquiring microcomputers for various departments in an organization, describe the factors related to: i. Computer hardware that needs to be considered during the initial design and set-up phase of the microcomputer environment.

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

2. Discuss the benefits of having standardized hardware and software for microcomputers in an organization.
3. Discuss the concerns that the memorandum is likely to create for the microcomputer users at Hastone Manufacturing.