ࡱ> tvsxM ahbjbj== !WWclr r r 8 < Sf!6#:V#V#V#V#V#V#FSHSHSHSHSHSHS$-U MWzlSV#V#V#V#V#lS$V#V#S$$$V#:V#V#FS$V#FS$d$)HBPV#! .r #XO"BPS0S P"W#4WBP$Information systems and organisations Understand the difference between an Information System and a Data Processing System. Understand the role and relevance of an Information System in Decision-Making. (Chapter 36) Definition of a Management Information System Recall that an MIS is a system to convert data from internal and external sources into information. This is communicated in an appropriate form to managers at different levels, enabling them to make effective decisions for planning, directing and controlling activities for which they are responsible.levels to enable them to make effective decisions for planning, directing and controlling the activities for which they are responsible. (Chapter 37) The development and life cycle of an information system Recognise the existence of formal methods, the need for clear time scales, agreed deliverables and approval to proceed. (Chapter 38) Success or failure of a Management Information System (Chapter 39) Understand factors may include Inadequate analysisLack of management involvement in designEmphasis on computer systemConcentration on low-level data processing, Lack of professional standardsInappropriate/excessive management demandsLack of teamworkLack of management knowledge of ICT systems and their capabilities INFORMATION SYSTEMS AND ORGANISATIONS The difference between an Information System and a Data Processing System Data processing systems p.202  HYPERLINK "http://www.webopedia.com/TERM/d/data_processing.html" www.webopedia.com/TERM/d/data_processing.html  HYPERLINK "http://www.owdata.com/data_capture.htm" www.owdata.com/data_capture.htm Is a series of procedures used day by day to turn transactions into a more appropriate and useful form. Data is captured using a variety of methods (scanner, MICR etc.) processed and stored on file. Information systems p.202 Turns data into useful information for the purpose of Facilitating order processing Planning changes in project management Control traffic flows Co-ordination of air traffic Analysis of car parking use, trends in shopping habits Decision-making with regard to future product lines. ICT Systems Transaction processing systems  HYPERLINK "http://www.subrahmanyam.com/articles/transactions/NutsAndBoltsOfTP.html" www.subrahmanyam.com/articles/transactions/NutsAndBoltsOfTP.html Handle data interactively in real time. Data is captured, processed and the system updated immediately e.g. a database at a Vehicle Tyre Fitting Dept - a fitter enters details of a sale, the stock file updates and an invoice is produced. Computerised cash registers can capture daily sales data such as the quantity and type of product sold and the time of sale for use in management analysis and reporting. Transactions processing may then provide the following Classifying data e.g. students into departments Calculations e.g. total sales made in a period Summarising large amounts of data Sorts e.g. invoices in order of postal code to speed distribution Storage for later reference or legal purposes The role and relevance of an information system in decision-making. P202 Information is the key to many management tasks Information is a critical factor in achieving competitive advantage More efficient processing of information, more effective identification of relevant information, and the presentation of information in formats that are easy to assimilate. An IS has a significant impact on the management structure of many organisations. It can lead to a reduction in the number of levels of management. Such systems help managers make better decisions. They do not however remove the need for management to make decisions, based on their own judgements. DEFINITION OF A MANAGEMENT INFORMATION SYSTEMS (MIS) In its simplest form a MIS is A system to convert data from internal and external sources into information. This system is a combination of computers and human users that manage data collection, storage and the transformation of data into useful information. The MIS must then make sure that information is communicated in an appropriate form to managers at different levels to enable them to make effective decisions for planning, directing and controlling the activities for which they are responsible An MIS could, for example, generate sales data and show trends to help managers plan a marketing campaign or to assist them when deciding to adjust prices or production. If the MIS works effectively it enables the computer system to work together with the business organisation to achieve the business goals. The MIS will provide routine summary reports on the firms performance The MIS is used to monitor and control the business and predict future performance i.e. provides information to address recurring managerial issues, such as Which salesperson sold the most units?  HYPERLINK "http://www-users.cs.york.ac.uk/~kimble/teaching/mis/mis_links.html" http://www-users.cs.york.ac.uk/~kimble/teaching/mis/mis_links.html What does a MIS actually do with the data? Produce a series of standard reports and may allow users to submit queries concerning specific issues and allow users to produce their own tailored reports  Well-designed management information systems can analyse this basic sales transaction data to determine profits, losses, sales trends, labour input and inventory utilisation. They should also result in better communication within the organisation, including better co-ordination Perform simple, repetitive summaries of transactions and report exceptions or deviations from a plan. Who uses MIS? Should produce meaningful reports for all three levels of information management e.g. Operational or supervisory management - directing and controlling actions and processes by improving such functions as order entry and processing or inventory control. Raw data into information for day-to-day operations. Strategic planning, for such goals as increasing market share, outperforming the competition and in general, gaining a competitive advantage Why use a MIS? Management Regardless of the business function some form of management is essential to plan, organise, direct, control and staff. Management accomplishes objectives through the efforts of many people. Lack of management is responsible for many failures. Information is power We must have Information for making management decisions, planning strategy, improving performance and developing/sustaining competitive advantage. A strategic weapon in corporate combat Unscheduled reports can be produced on demand Exception reports can indicate what elements are not going to plan e.g. unexpected expenses, projects behind schedule etc. Corrective action can then be taken. Empowering staff Need to develop and maintain information systems and applications that help workers become more productive and contribute to business goals. Increasing the efficiency of the business Helps achieve reduce co-ordination costs and achieve economies of scale Good at handling routine, repetitive kinds of problems that are well structured such as How many people should I employ? - based upon estimated sales and historical evidence. where information requirements can be determined in advance and the need for information recurs relatively regularly. Not good at less-structured problems Given poor weather, that it is Easter and there has been an intensive sales campaign what is the optimal sales force for the Chadderton branch? The complete MIS MIS needed to be extended beyond its narrow definition where managers can test the effect of their decisions. A MIS cannot realistically be expected to provide for all the information needs of the management. Tools to support decision-making have been developed to help the MIS  Operational Systems (see previous topic) produce payroll, accounting, stock control etc. Information. These are largely automated reports on which decisions are based upon a formula, i.e. by and large structured decisions. Decision Support Systems are not often used by top managers because they are not particularly user friendly and require more expertise. They are used by middle managers for routine modelling and to analyse unstructured problem situations for senior executives. (Management Level) Executive Information Systems are used at a strategic level, for unstructured problems, or perhaps to identify problems rather than solve them. (Strategic Level) i.e. by and large unstructured decisions. Expert Systems are used to provide knowledge and offer solutions and alternatives. Decision Support System (DSS) Involve non-recurring decision making tasks such as analysing financial data for a possible take-over of another company. DSS use models, which as a simplified version of reality describe the interrelationships between the important variables in a particular environment and allow the manager to explore answers to What-if? Questions. A DSS is problem oriented.  EMBED Word.Picture.6   HYPERLINK "http://www.ncl.ac.uk/wrgi/wrsrl/projects/waterware/waterware.html" http://www.ncl.ac.uk/wrgi/wrsrl/projects/waterware/waterware.html  HYPERLINK "http://www.law.warwick.ac.uk/ltj/4-1c.html" http://www.law.warwick.ac.uk/ltj/4-1c.html Executive Information System (EIS) Provide top-level executives with summary information from internal and external intelligence sources i.e. strategic management aid. Top managers need to be able to achieve a quick grasp of key issues without being overloaded with detail. However rapid access to detail must also be available to support the executive in the precise investigation of a problem. e.g. A manager may wish to compare last years sales figures with those of a competitors. In order to do this the manager accesses reports on publicly held companies which are available on external financial databases, and then accesses the yearly sales figures for his/her own organisation. The EIS will graphically compare the two. may include the use of expert systems  HYPERLINK "http://www.selectlegal.co.uk/fedstats.htm" http://www.selectlegal.co.uk/fedstats.htm HYPERLINK "http://www.openprojects.co.uk/NewsProducts/taFrames.htm" http://www.openprojects.co.uk/NewsProducts/taFrames.htm Comparing MIS, DSS and EIS All support managerial decision making MIS emphasis on report generation - help lower and middle management solve well structured decisions DSS an emphasis on model building - help middle and upper management with semi-structured and unstructured decisions EIS an emphasis on presentation and ease of use - help top-level executives make highly unstructured decisions based on information from a wide range of sources. The factors that determine the success or failure of a MIS. An inadequate analysis leading to the quality of decisions being impaired A lack of management involvement in design. Different managers have different information needs. Changes in the environment can trigger a significant change in the information requirements of individual managers. An over-emphasis on computer system itself rather than the people who use it An over-concentration on low-level data processing, (undue concentration on transaction processing systems) lack of management knowledge of IT systems and their capabilities. Some managers have different decision making approaches and styles Inappropriate or excessive management demands. Management decisions have different levels of predictability. A general lack of teamwork A lack of professional standards A lack of top management support for MIS This means that a MIS should ideally be Flexible i.e. allow for many different ways of analysing and evaluating information. Capable of supporting a wide range of skills and knowledge. Help managers get things done through interpersonal communication with other members in the organisation. Should not require long periods of concentration, but give information at a glance. Protect a manager from information overload. EXPERT SYSTEMS CHAPTER 41 Experts are valuable to an organisation, they possess knowledge that is the key to the successful operation of the organisation. By their nature they are few in number, can be expensive and may be difficult to replace. Expert systems have been developed to resolve the shortage of expert personnel. They are computer systems, which embody some of the experience and specialised knowledge of an expert and hence mimic the expert and act as a consultant in a particular area. They are usually limited to a particular area of expertise and are often rule-based. They give advice to users and even explain its reasoning but they do not make decisions. Examples of expert systems ELSIE p.228 HYPERLINK "http://www.computing.surrey.ac.uk/ai/PROFILE/projs_kbs_toc.html" http://www.computing.surrey.ac.uk/ai/PROFILE/projs_kbs_toc.htmlTo aid a bank manager to assess whether to grant a loan to a client. Rule might be if the client is a home owner establish the mortgage and whether there have been any payment defaults. There would be several such rules. Aim of system to provide a recommendation based upon banks standard lending policy. The system offers decision support rather than replaces discretion. The expert system is just one factor in helping make this decision. HYPERLINK "http://www.dcs.napier.ac.uk/coil/news/feature58.html" http://www.dcs.napier.ac.uk/coil/news/feature58.htmlTax planning HYPERLINK "http://www.bileta.ac.uk/cal/6c3.htm" http://www.bileta.ac.uk/cal/6c3.htmProduct pricingSelecting selling methodsScheduling air crew HYPERLINK "http://www.gre.ac.uk/~lp03/TheFireGroup/galeamtx.html" http://www.gre.ac.uk/~lp03/TheFireGroup/galeamtx.htmlDesigning computer systems and suggesting solutions to problems within a computer network. HYPERLINK "http://gise.org/JISE/Vol1-5/EXPERTSY.htm" http://gise.org/JISE/Vol1-5/EXPERTSY.htmPlanning a large construction project HYPERLINK "http://www.business.com/search/rslt_default.asp?query=construction+project+management+software+solutions" www.business.com/search/rslt_default.asp?query=construction+project+management+software+solutionsFault diagnosis - if a leak occurs service engineer may arrive with a laptop computer and type in symptoms to arrive at a diagnosiswww.cs.ucl.ac.uk/staff/W.Langdon/ftp/papers/94-007.ps.gz (pdf) KNOWLEDGE BASEINFERENCE ENGINESHELL/HCI HYPERLINK "http://www.bcsnsg.org.uk/itin08/darling.htm" http://www.bcsnsg.org.uk/itin08/darling.htm Benefits of expert systems p.229 Expert systems capture the knowledge of company experts who someday will retire, resign or die. Expert systems place expert knowledge into machine readable form, where it can be summoned at any time. Expert systems train newly hired employees to solve problems the way experienced professionals do. Expert systems are not vulnerable to problems such as fatigue, emotion, and overwork, all of which plague human experts they will also give consistent results. Can complete some tasks quicker than a human e.g. see bank example above. Limitations of expert systems p.230 Can make mistakes and not learn from them. It is not possible to perfectly mimic the knowledge of an expert Over-reliance may stifle creativity and initiative. THE DEVELOPMENT AND LIFE CYCLE OF AN INFORMATION SYSTEM Chapter 38  HYPERLINK "http://www.doc.mmu.ac.uk/online/IT-IS-Context/is14intr/sl01.htm" http://www.doc.mmu.ac.uk/online/IT-IS-Context/is14intr/sl01.htm What prompts a new system? (P212) The existing system may be obsolete due to technological developments The organisation's competitors may have a better system The current system may no longer be suitable for its purpose (e.g. because the organisation may have changed) The current system may be inflexible The current system may be expensive to maintain Feasibility Study p.212 A Feasibility Study is carried out when a new system is considered. This considers the scope and the objectives of the proposed system. The five factors to be looked at are TELOS, which means: TELOSTechnological Feasibility  Does the technology exist?Economic Feasibility  Is it affordable, do the benefits outweigh the costs?Legal Feasibility  Is there any legal impediment (e.g. the DPA)Operational Feasibility  How will the new system affect people's working lives?Schedule Feasibility  Can the new system be implemented in the desired time- frame?Considering all these factors, the Systems Analyst will write a Feasibility Report that will be sent to management. He will recommend whether or not to proceed. Management make the final decision. If they approve the project, the Requirements Analysis will proceed. Requirements Analysis p.213 The Requirements Analysis is a detailed investigation into the current system and the requirements of the users. Staff at all levels in the organisation will be interviewed, business documents will be examined, carefully planned questionnaires will be sent out, a "time and motion" study could be carried out to see where efficiency could be improved. The Systems Analyst then uses this data to chart the flow if information and data around the organisation. This will establish what the new system will do (but not how it will do it). The Requirements Analysis will show exactly what the new system will do in considerable detail. Decisions will be taken about the hardware/software platform to use and what configurations will be needed. There will be an analysis of the costs and benefits of organisational changes. Again, the Systems Analyst makes a recommendation either to proceed or to abandon the project. The system needs to be approved by management. System Design P214 This specifies: Hardware and software to be used Outputs (report layouts, screen designs etc) The User Interface Testing Plan Conversion Plan Documentation Implementation P.214 This involves coding and testing the new system, installation, training and the conversion process. Methods of Conversion P.214 Direct Changeover (e.g. done over a weekend) is fast and efficient but there is great disruption if the system turns out to be less than perfect. Parallel Conversion is where the old system continues to be used alongside the new system for a few weeks. This means staff have double the work to do. However, the great advantage is that results from the old system can be tested against results from the new system. Pilot Conversion is where part of the organisation pilots the new system and evaluates it. Post Implementation Review p.215 Often shortcomings are only noticed when the system is being used. System Maintenance Maintenance can be: "Perfective" e.g. improvements, add-ons, new reports and queries "Adaptive" i.e. the system changes to meet the changing needs of the users "Corrective" i.e. to solve problems with the system Prototyping P216 This is where a prototype is developed and piloted by part of an organisation. Doing this familiarises users with the look and feel of the new system and it can help iron out misunderstandings between developers and users. Missing functions can be detected. Alternatively, the prototype can be used for training purposes. IMPLEMENTATION OF INFORMATION SYSTEMS Chapter 39 Implementation means preparing people for the introduction of the new system and then actually introducing it. Developers often think that a system is successful because "it works", even if nobody actually uses it. Other criteria are much better indicators. These include: (p.218) High level of use High level of user satisfaction Accomplishment of the original objectives Appropriate nature of use (e.g. user who thought his CD ROM tray was a beverage holder) Institutionalisation of the system Why do information systems fail? (P219) Not enough time and money. Inappropriate project team. Lack of involvement. Lack of flexibility Inappropriate management demands. Poor documentation Lack of skills. Poor test plan. Lack of user testing. Poor training. Evaluations not properly planned. Factors in Successful Implementation (P221) User involvement and user enthusiasm Training Proper management of the system development process to prevent cost overruns/delays etc. Management support (means that changes in work habits and any organisational changes are more likely to be accepted by the staff) 1997.1 (4 Marks) (a) What is the purpose of a Management Information System? (1 mark) (b) Why is such a system required by managers of an organisation? (1 mark) (c) Give one example of the use of a Management Information System within an organisation, clearly stating its purpose (2 marks) (a) Purpose: to convert data from internal and external sources into information. 1 (b) Why required: to enable managers to make effective decisions (1) OR information can be produced from a large quantify of data in a selective manner quickly (1). 1 Carry Back/Forward between (a) and (b) (c) Example (1) for accurate example, (1) for management use Example: any acceptable example however this must be related to management decision making. E.g. In a nation-wide distribution company the use of a MIS to monitor the movement of vehicles and revise strategic planning of the location of warehouses. 2 1998.3 (8 marks) (a) What is meant by a Management Information System? (4 marks) (b) State four factors which could contribute to the success or failure of a Management Information System. (4 marks) (a) Management Information System: a system to convert data from internal & external sources into information communicated in an appropriate form to managers at different levels of an organisation to enable effective decisions or planning to be made - or to monitor/control performance (b) Factors which could contribute to the success or failure: 4 @ (1) to max 4 inadequate analysis lack of management involvement in design emphasis on low-level data processing lack of management knowledge of IT systems/capabilities inappropriate management demands excessive management demands lack of teamwork lack of professional standards inadequate training resistance to change positive statement of any of these  1999.2 4 marks (a) What is meant by the term 'expert system'? (2) (b) Describe one example of the use of an expert system. (2) 2000.9 (3) One example of the use of an expert system is in the field of medical diagnosis. (a) What is meant by the term 'expert system'? (2) (b) Give one limitation of the use of such a system. (1) January 2003.2 Describe what is meant by the following terms, and give an example of each: a. a data processing system; (3 marks) b. a management information system. (3 marks) a. Data processing system - precise/low level/electronic data capture (1) used for repetitive/routine business activities/day-to-day transactions/transaction processing. (1) Examples: Stock control/payroll calculations/invoices/ point-of-sale (1) b. Management information system - a system to convert data from internal and external sources into information (1) communicated in an appropriate form/aid decision-making (1) Examples: Sales Information system/Financial Info system/Production summary (1) January 2003.3 Company management sometimes introduce new information and communication systems, giving little advance notice to their staff. This may contribute to the failure of these systems and cause other problems for their staff. a. State six factors that may cause the failure of a system that has been introduced too quickly. (6 marks) b. Describe three problems that staff might encounter in this situation. (6 marks) a. inadequate analysis/design/testing/other phase no time made for consultation with users lack of user/management involvement in analysis/design/testing/other phase emphasis on computer system/ not on info needs of users concentration on low level data processing not giving managers what they need/not meeting requirements lack of management knowledge of ICT and its capabilities/ being fooled by fancy package supplier marketing lack of team work not wide enough consultation/IS department making decisions for whole organisation lack of standards Incomplete technical documentation (e.g. Specification) due to speed of development problems with changeover/procedures not ready staff not prepared/ change in roles/ training not taken place etc lack of consideration for post-implementation maintenance b. 1 for problem(P), plus 1 for explanation/expansion(E). Any 3 x (2,l ,0) Problems using the system properly (P), because of lack of training/lack of skill (E) May lose job/be made redundant (P), due to new system doing what used to be a manual task (E) Changes forced upon staff(P) leading to resentment/attitude problems (E) Employment pattern changed (P) may want to relocate (E) May have a problem with new system and not know what to do (P), as new working procedures have been introduced but not communicated (E) Have problems with new/changed working conditions (P), which were without consultation (E) Fall foul new/updated rules (P) that are included in a new Code of Practice (E) June 2003.2 (a) Describe what is meant by a management information system (MIS). (2 marks) (b) Explain why an organisation would implement an MIS. (3 marks) June 2003.3 With the aid of an example, state what is meant by informal information. 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