Software generated information for decision making in a business

Question 1

Define management information system (MIS) and its advantages/disadvantages

Answer 1

used by upper management to make key business decisions, it includes: HR records, financial data and business specific data

Adv - better decision making, real-time data and enables collaboration

Dis - time consuming, costly and can be inaccurate if incorrect data used

Question 2

Define project management

Answer 2

Decision making tool to embark on large projects, it includes: gantt charts and critical path analysis tasks, duration to complete, prioritises tasks and leads to financial outcome

Question 3

Define a critical path analysis and its advantages/disadvantages

Answer 3

Used to handle complex and time-sensitive operations

Adv - better prioritisation, accuracy and spot problems early on

Dis - only useful for certain projects and is resource insensitive

Question 4

Name some other financial tools

Answer 4

Net present value - identifies how much the business is worth at the time, no plans for future growth

Discounted cash flow - how much money is worth once invested into the business

Internal rates of return - How much return based on money invested by business