1. Management Information Systems And Data Analytics

Question 1

What are information systems?

Answer 1

Information systems consist of computer hardware and software, and communication networks to collect, store, process and communicate information.

Question 2

Differentiate between planning, control and decision making.

Answer 2

Planning: setting the organisation’s long-term strategic direction and planning for the medium and short term.

Control of the organisation: management needs to monitor how the organisation is performing against the plan and take actions to correct any significant deviations from the plan.

Decision-making: managers need to make decisions at many different levels. The information systems should provide them with the information to do this.

Question 3

Differentiate between strategic planning, tactical management and operational management.

Answer 3

Strategic planning is the highest level of management in an organisation, and, and it is usually carried out by the board of directors or an equivalent body. This management level concerns with setting goals and objectives for the organisation over the long term (typically 5-15 years).
May include:
- deciding on products or markets
- investment decisions

Tactical management, or management control, usually is carried out by a middle level of management. It involves taking the strategic plan and making it happen. The time for planning is usually one year.
- recruiting staff
- preparing budgets

Operational management focuses on the day-to-day running of the business, and operational managers will be responsible for departments within an organisation.
- routine planning E.g. scheduling staff
- ordering inventory

Question 4

What are some of the costs associated with information systems?

Answer 4

• development costs analysing current business process and how they will be automated in a new system.
• initial set-up costs eg hardware and software licensing
• data conversion of historical information from eg prom paper documents to spreadsheets
• staff and user training and IT support
• modifications and system upgrades
• communication charges eg for internet access

Question 5

What are the benefits of an information system?

Answer 5

• the main benefit is the ability to provide users with the information they need to do their work efficiently.
• strategic information provides strategic management with an overview of the entire business.
• the ability to extract customised information saves time and clerical expense. Many business decisions can be delegated to a lower level of the business.
• a system is more efficient because data is easier to use. The same data may be presented in customized formats for different users e.g. lists, tables or graphs
• information provided in real-time can drive improvements.