Information Systems Flashcards
Review definitions or descriptions for Section B in E1 CIMA exams. as CIMA wants from you.
Explain the organisational benefits of introducing good Management Information
Sysems (MIS).
A management information system (MIS) refers to an organisational computer-based system that provides managers with the information needed to manage operations. The benefits of having good Management Information Systems include:
• Potentially improved management control, better managed departments and more effective operations.
• Better informed decision making and improved forecasting, etc. thanks to the comprehensive information available to managers.
• Improved satisfaction and motivation amongst managers as MIS will provide them with effective tools to enable them to cope with job requirements better.
• MIS provides middle managers with information to monitor the organisation’s activities leading to improved budgetary control, inventory control, etc.
(Other valid responses are possible such as responsiveness, efficiency and reduced errors, etc. and will receive credit.)
Describe FIVE significant advantages of web-based applications for an organisation.
There are many significant advantages associated with web-based applications including those given below:
• Improved marketing operations thanks to online survey tools for customer feedback and search engines for market research and competitor intelligence, etc.
• A platform for doing business and internet shopping offering the potential to reach new customers and markets.
• The internet offers a tool for improved communication with stakeholders both internally (amongst departments and groups) and externally (e.g. suppliers, customers, business partners etc.) leading to greater cohesion and enhanced relationships.
• The potential for members of the workforce to work at home or outside the organisation’s premises generally leading to greater organisational flexibility and staff satisfaction.
• Online customer services leading to enhanced customer responsiveness and loyalty.
(Other valid responses are possible including improvements to a supply chain leading to cost savings and new business thanks to online contract tendering, etc.)
Explain FIVE risks associated with a direct approach to changeover from one system to another.
A direct approach to changeover means that at a predetermined time an old system ceases completely and a new system starts. There are risks associated with such an approach.
Risk of errors being undetected. There is no parallel run under this approach. Instead there will be a direct changeover between the old and new systems. There are risks that errors may occur in migrating data between the two systems which may be difficult to identify because it would be impossible to compare the output from the two systems.
Risk to continuity of operations. Stopping one system and implementing another may have a significant negative impact on the organisation if the new system does not work.
Risk of misuse. Even if a new system is easy to use it is possible that users will not be aware of the most effective or efficient method of using it. Mistakes can be made, significant amounts of time can lost through ‘trial and error’ and users may become frustrated.
Risk of lack of user acceptance and inefficiencies. If users have not been involved in system testing, then they may not fully accept the new system when it goes live. In addition, the new system may not meet user requirements, leading to inefficiencies in operations.
Risk of outright rejection. The sudden introduction of the new system and a lack of user testing (which is a feature of direct changeover) carries the problem that because of this extreme approach users may reject the system completely.
(Other valid responses are possible and these will also receive credit.)
Explain the reasons for, and main types of, systems maintenance.
Systems maintenance is the repair, correction or further enhancement of systems that are operating. Systems maintenance can take several forms:
• Corrective maintenance remedies errors that are identified normally as a result of some problem occurring. This form of maintenance is reactive by nature and has the main aim of ensuring that a system can continue to operate on a daily basis.
• Adaptive (or adaptative) maintenance involves adjusting systems to reflect changing business operations or the wider external environment. This type of maintenance is likely to occur in the mid to long-term life of a system.
• Perfective (or preventative) maintenance anticipates and aims to prevent possible future system failures so improving efficiency and avoiding corrective maintenance. (The maintenance in effect aims to make the system nearer perfect).
Characteristics of good quality information
Accurate
Information should be fair and free from bias. It should not have any arithmetical and grammatical errors. Information comes directly or in a written form likely to be more reliable than it comes from indirectly (from hands to hands) or verbally which can be later retracted.
Complete
Accuracy of information is just not enough. It should also be complete which means facts and figures should not be missing or concealed. Telling the truth but not wholly is of no use.
Cost-beneficial
Information should be analysed for its benefits against the cost of obtaining it. It business context, it is not worthwhile to spend money on information that even cannot recover its costs leading to loss each time that information is obtained. In other contexts, such as hospitals it would be useful to get information even it has no financial benefits due to the nature of the business and expectations of society from it.
User-targeted
Information should be communicated in the style, format, detail and complexity which address the needs of users of the information. Example senior managers need brief reports which enable them to understand the position and performance of the business at a glance, while operational managers need detailed information which enables them to make day to day decisions.
Relevant
Information should be communicated to the right person. It means a person who has some control over decisions expected to come out from obtaining the information.
Authoritative
Information should come from a reliable source. It depends on qualifications and experience and past performance of the person communicating the information.
Timely
Information should be communicated in time so that the receiver of the information has enough time to decide appropriate actions based on the information received. The information which communicates details of the past events earlier in time is of less importance than recently issued information like newspapers. What is timely information depends on each individual situation. Selection of appropriate channel of communication is key skill to achieve.
Easy to Use
Information should be understandable to the users. Style, sentence structure and jargons should be used keeping the receiver in mind. If a report is targeted to new-comer in the field, then it should explain technical jargons used in the report.
Neutrality
Information should not be biased towards one particular perspective over all others or rely unduly on one particular source. Unless neutrality is maintained (by for instance reflecting a range of viewpoints and validating the information by the use of multiple sources) biased information is likely to result. Biased information can lead a decision-maker to make a faulty or an incomplete decision.
Describe FIVE features of a successful database system.
The essential features of a successful database system are as follows:
• Data seen as a corporate asset. Data is regarded as an asset of an organisation as a whole. Like other assets it will be owned and maintained for the use and benefit of the entire business.
Enterprise Operations 3 March 2014
• Data independence. The data must be defined and exist independently of the individual programs that use it. As both data and programs are independent either can be amended without changing the other
• Data sharing. The database must be capable of being shared. Different users, using different application programs, must be able to access the same data often at the same time.
• Elimination of duplication. Duplication of data and data redundancy should be eliminated as only one entry per record or transaction is needed in the database. Data inputs may also be reduced as data is only required to be input once to update all files.
• Data accuracy. Controls need to exist to ensure that the data remains accurate at all times and the integrity of the data in the database is maintained.
(Other valid answers might include that the database should be flexible enough to develop or evolve with changing organisational needs, ability to connect to web server to support e-business activities, to be cost efficient, user friendly and effective, etc.).
Describe the different organisational benefits of Information Systems (IS) and Information Technology (IT).
Organisations use IS and IT to:
• Achieve cost reduction through the automation of previously labour intensive tasks.
• Improve performance through time saving, ‘smarter’ working, the enhanced design of products and the elimination of human errors, etc
• Improve communication in terms of speed and efficiency of document transfer and messages both within an organisation and externally to customers and suppliers, etc.
• Improve customer service and sales through the use of technology to stay in touch with customers, identify their needs more precisely and possibly respond to those needs through better use of technology.
• Improve forecasting through technology assisted analysis of historical data and trends, etc.
(Other responses might include: improve quality, engage in scenario planning, significantly change or transform the organisation itself, improve budgeting and control, enhance marketing campaigns)
Systems review represents a stage in a systems development lifecycle.
Describe the main areas that should be considered as part of such a review
Systems review forms a stage in a systems development lifecycle and involves a review of the effectiveness of an often new system. There are a number of areas that should be considered.
Needs met. Establishing whether the new system satisfies user needs. Making recommendations
for improvement if necessary.
System performance. Evaluating the actual performance of the new system compared with anticipated performance. Making recommendations for improvements to the systems development procedures if necessary.
Project implementation review. Ascertaining the quality of project management of the system implementation (examine project costs, deadlines, activities, etc.) and recommending improvements to future project planning procedures.
Budget. Comparing the actual spent on the new system to the established budget and identifying reasons for differences.
Costs and benefits. Reviewing the original cost benefit analysis to ascertain if costs are in line and if perceived benefits have been achieved. Suggesting any other changes that might improve processes in the future.
