(Solved Homework): Blood Donation Group (BDG) is a nationally recognized organization and one of the largest Australian companies in the bl…

Blood Donation Group (BDG) is a nationally recognized organization and one of the largest Australian companies in the blood supply chain industry. BDG was established in 1990 and has 50 branches all over Australia. The major activity of BDG is supplying blood products for hospitals. BDG main departments are:

a) The Marketing Department that motivates and recruits blood donors and predicts the demand for blood supply
b) The Quality Control and Assurance Department that ensures all regulatory requirements, policies and procedures are met to supply safe blood products.
c) The Blood Stock Management and Transfusion Services Department that is responsible for the blood product delivery and supply.

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BDG has implemented an enterprise resource planning (ERP) system that integrates the functions and resources of information systems. The ERP system has been installed at the headquarter site on a local (in-house) server and all critical information about the donors and recipients are stored in a secure data warehouse.

The CEO, Dr. White, has recently received reports about some issues regarding the information systems used by BDG that include:

Issue 1: The cost of maintaining and updating the ERP system has increased. The current hardware, networks, and servers will need to be upgraded to be able to deal with a higher level of transactions.

Issue 2: BDG has planned to add 10 new branches that will require more technology infrastructure costs

Issue 3: Even though the ERP system has integrated existing information systems, there are issues such as timely access to donors’ data and location tracking and communication.

Issue 4: The current CRM system is not integrated with social media that makes it difficult to recruit blood donors in younger age groups.

Issue 5: Emergency blood supply was delayed due to the inability of the information system to track donors and ask them to provide an urgent blood donation.

Investigate how organisations evaluate the benefits and challenges of Cloud adoption. Include specific examples from the literature.

Expert Answer


Cloud Computing simply means the use of computing resources as a service through networks, typically the internet. With cloud computing users can access data from anywhere. Cloud computing can be on private network or public network depending on the use and need of the enterprise.

Benifits associated with adoption of cloud computing are:

1. Cost efficiency : Traditional desktops cost companies alot, with cloud computing companies can save alot of operating costs. Ex. sales persons can be given one mobile integrated with company’s application for accessing companies data instead of laptops which cost more.

2. Easy access to information: Once registered in the cloud, one can access the information from anywhere, where there is an internet connection. Ex. With mobile internet connection, sales person can easily access information regarding availability, specifications and other related info on the go.

3. Quick Depoloyment: It can be adopted quickly and can be functional in a matter of hours. Ex. Quickbooks can be installed on the system in 15 minutes.

4. Almost unlimited usage: Storage of information in cloud gives almost unlimited storage capacity. Ex. Cloud service providers have plans customized for usage of memory needed and it can be virtually unlimited.

5. Backup and Recovery: Since all the data is stored in cloud, backing it up and restoring the same is relatively much easier than storing the same on physical device. Ex. Images deleted from the main memory can be downloaded again from Dropbox again into phone memory.

Challenges in adopting cloud computing are:

1. Confidentiality: Cloud works on the public networks and has high exposure to risk of leakage of sensitive informartion to unauthorized entities.

2. Integrity: It is possible that data in the cloud is tampered, modified or deleted. It is the most hurculeous task to maintain integrity of the data for the organisations.

3. Hidden costs: Like any such services in prevailing business systems, cloud computing service providers do not reveal ‘what hidden costs are’. Ex. Extra fees to be paid for accessing premium services of return filling in any accounting software.

4. Interoperability: If a company outsources applications with one cloud computing vendor, the company may find it difficult to change to another computing vendor that has proprietory APIs and different formats for importing and exporting data. Ex. Amazon and IBM have their own architecture of clouds and data of one configuration cant be used with other without migration of the same.

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