Chapter 13 - Information Management Flashcards
Contextualise information management in terms of the decision making process
Computer based Information systems play a major role in the operations, management and strategic success of organisations. Information systems transfer data from the organisations internal and external environments into information that can be used in decision making.
Importance of managing information for sustaining competitive advantage
Competitive advantage is the ability of an organisation to provide greater value to customers than its competitors. Sustainable competitive advantage occurs when other organisations tried unsuccessfully to duplicate an organisations competitive advantage.
3 Questions need to be addressed in order to sustain a competitive advantage through information technology:
1st Does using IT lower costs and provide a better p/s?
2nd: Is the IT the same or different among competing organisations?
3rd: Is it difficult for another organisation to create or acquire the IT used by the organisation.
Explain the basic functioning of an Information System
An IS uses resources of hardware, software and people to perform input, processing, output, storage and control activities that transform data resources into information products.
Data collected for processing, then converted into information, stored for future use, or communicated to the ultimate user, according to the correct processing procedures.
**Characteristics of USEFUL information
R
A
S
T
_ Relevant
_ Accurate
_ Sufficient
_ Timely
**Costs of USEFUL information
_ Acquisition Costs _Processing Costs _Storage Costs _Retrieval Costs _Communication Costs
Discuss the organisation of information systems in
modern organisations;
Most organisations organise information systems in such a way that it has a similar status as other functions of the organisation such as the marketing function or the finance function.
3 Classification of Information Systems
Operations information systems
Management Information Systems
Other Classifications
Operations Information Systems
Supports business operation by processing data generated by and used in business operations.
Examples are:
Transactions-processing systems - sales, inventory changes
Process control systems - Adjusting a physical control process
Office Automation Systems - Used to support office communication and productivity.
Management Information Systems
Supports the decision making needs at the operational, tactical and strategic levels of management.
Information reporting Systems - provide lower-level managers with reports on information for decision making.
Decision support systems - Provides middle management with interactive information support for decision making
Executive information systems - information systems tailored to the strategic needs of top management.
Expert System (Top Level Management)
A branch of Artificial intellegence
An attempt to mimic human experts consisting of a decision making or problem solving package of hardware and software that can reach or outperform a human expert.
Business Function Information System
An information system directly supporting the business functions in an organisation.
Example: Marketing managers need information on sales performance and trends, provided by marketing IS.
Steps of developing an IS
Step 1 - Systems investigation - determine nature and scope of the need for information
Step 2 - Systems Analysis - in-depth study of end-user requirements
Step 3 - Systems Design - specifies how an IS will meet the requirement of end-users
Step 4 - Systems implementation, maintenance and security
