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Ldit 2114 Information Policy, Strategies and Systems Lesson 1 PDF
Ldit 2114 Information Policy, Strategies and Systems Lesson 1 PDF
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Learning Outcomes
Learning Resources
Online platforms , Zoom Whiteboard, computers and Resources, Journals and books ,
Course Evaluation
Total 100%
REFERNCES
Computer fundamentals 5th,sith edition pradeepk Sinha ,priti sinha
Computer organization 6th edition
Business Systems Development , by Tudor Dorothy and Tudor Ian (1997), NCC Education
Services LimitedISBN 1-90234-305-0
Human Communication and Information Systems, by Stuart Harris (1988), NCC Education
Services Limited, 1998ISBN 1-90234-300-X
The Complete A-Z ICT & Computing Handbook, by Bob Penrose and Bill Pollard, Hodder &
Stoughton Ltd
COURSE OUTLINE
What is Information?
Information is one of the main resources available to the manager.information can be managed
just as any other resource.
Computer information is used by managers,Non-managers and persons within the firms
environment.
Information is organized or classified data, which has some meaningful values for the receiver.
Information is the processed data on which decisions and actions are based.
For the decision to be meaningful, the processed data must qualify for the following characteristics
−
• Timely − Information should be available when required.
• Accuracy − Information should be accurate.
• Completeness − Information should be complete.
Information is needed to:
• To gain knowledge about the surroundings, and whatever is happening in the society and
universe.
• To keep the system up to date.
• To know about the rules and regulations and bye laws of society, local government, provincial
and central government, associations, clients etc. as ignorance is no bliss.
• Input(Data) − In this step, the input data is prepared in some convenient form for
processing. The form will depend on the processing machine. For example, when electronic
computers are used, the input data can be recorded on any one of the several types of input
medium, such as magnetic disks, tapes, and so on. Processing − In this step, the input
data is changed to produce data in a more useful form. For example, pay-checks can be
calculated from the time cards, or a summary of sales for the month can be calculated from
the sales orders.
• Output(information) − At this stage, the result of the proceeding processing step is
collected. The particular form of the output data depends on the use of the data. For
example, output data may be pay-checks for employees.
Information systems
This is a set of interrelated components that collect (or retrieve),process,store,and distribute
information.
provide many advantages to their users which range from simple transaction processing at the
operational level to difficult tasks such as making important and competitive decisions at the
strategic level of the organization. Several roles played by information systems in an organisation
can be identified but O’Brien and Marakas (2008) have identified three fundamental roles played
by information systems in businesses. These are; Information systems support business processes
and operations. Secondly, they support decision making of employees and managers and lastly,
they support strategies for competitive advantage. These three fundamental roles encompass any
ways. In a hotel for instance, customer check - ins and check-outs are done by computers and
software which makes work easy unlike the traditional method of using notebooks and paper to
record such information. Customers can now even make their own bookings through the hotels
website instead of visiting the hotel in person to do so, which may lead to pressure on front office
staff. Systems have now been developed to gather customer information easily and quickly. Now,
because of information systems, the various departments of an organization work together with
ease. The housekeeping department of a hotel can now inform the front office about which rooms
are ready for use and which are not, without personal interactions of staff as a result of information
systems. The running of an organization has now become smoother with well integrated
information systems.
Information systems also help employees and managers of a business to make well
informed decisions. This is because information systems have the capability of analyzing data that
has been collected from both within the organization and from external sources into useful
information which can be used by employees and managers in their decision making process.
Decision-making is an integral part of management and occurs in every function and at all levels.
Decisions are better made when accurate information is available which aids the decision maker
in making an objective decision (Terry Lucey 2005). Information systems types like Management
Information System (MIS), Decisions Support Systems (DSS) and Executive Information Systems
(EIS) are specially designed to help management of an organization in their decision making
process. These systems generate typical reports and graphs on issues such as trend of orders,
customer analysis, product profitability, finished stock positions and forecasts, accident and
absentee reports, job evaluation reports and many more. Managers and employees use these reports
and graphs as a basis for their decisions. For example, decisions on which meals that need to be
added or removed from a hotel menu may be taken by the food and beverage manager after a
Competition in today’s business is keen and what will become important is how quickly companies
can convert their reams of information they collect into knowledge so that they can provide
services and products that are ahead of their competitors. Strategic information systems can help
provide hospitality operations with the innovative mediums they need to provide products and
services that will give them comparative advantage over their competitors. Nhyiem et al (2005)
observes that, in the hospitality industry, competitive advantages may result in increased room
sales ( through efficient reservation systems and organisational websites), decreased cost of goods
( through reduction in operating cost and less expensive distribution channels), brand awareness
(through effective advertising campaigns targeted at the appropriate customer and delivered
through the most appropriate cost effective medium), good customer-organisational relationship
(by keeping database of customers and their needs) and effective decisions making that are timely.
Therefore, Information systems can perform three major roles in business organization.
3.stategic advantages
It helps the managers keep them looking for ways to gain a competitive advantages over the other
organizations.
Challenges facing information systems
1. information systems investment challenge.
The greatest challenge faced by managers is ensuring that their companies do obtain meaningful
returns from the money spend on Information Systems.
Maintaining the information systems may be costly hence making most of the managers not to
invest in them.
judgment.
Characteristics of a DSS
1. Support for decision-makers in semi-structured and unstructured problems.
2. Support for managers at various managerial levels, ranging from top executive to
3. line managers.
4. Support for individuals and groups. Less structured problems often requires the 5.
involvement of several individuals from different departments and organization
6. level.
7. Support for interdependent or sequential decisions.
8. Support for intelligence, design, choice, and implementation.
9. Support for variety of decision processes and styles.
10. DSSs are adaptive over time.
2.KNOWLEDGE MANAGEMENT SYSTEM
This is an information system that is programmed to imitate human solving by means of artificial
intelligence and reference to a database of knowledge on a particular subject .
A knowledge management system comprises a range of practices used in an organization
to identify, create, represent, distribute, and enable adoption to insight and experience.
Such insights and experience comprise knowledge, either embodied in individual or
embedded in organizational processes and practices.
Importance of KMS
1. Improved performance
2. Competitive advantage
3. Innovation
4. Sharing of knowledge
5. Integration
An Executive Support system (ESS), also known as an executive information system (ESS),
This is a user friendly information system that lay more emphasis on presentation of summary
information, exception report techniques and establish link with basic operations of the
enterprise
Executive support systems are intended to be used by the senior managers directly to provide
support to non-programmed decisions in strategic management
ESS is a type of management information system that facilitates and supports senior executive
information and decision-making needs. It provides easy access to internal and external
information relevant to organizational goals. It is commonly considered a specialized form of
Decision Support System (DSS).
ESS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting
and drill-down capabilities. In general, ESS are enterprise-wide DSS that help top-level executives
analyze, compare, and highlight trends in important variables so that they can monitor performance
and identify opportunities and problems
Component
1. Hardware
When talking about computer hardware for an EIS environment, we should focus on the hardware
that meets the executive’s needs. The executive must be put first and the executive’s needs must
be defined before the hardware can be selected.
The basic hardware needed for a typical ESS includes four components:
• . Input data-entry devices. These devices allow the executive to enter, verify, and update
data immediately
• .The central processing unit (CPU), which is the most important because it controls the
other computer system components
• .Data storage files. The executive can use this part to save useful business information, and
this part also helps the executive to search historical business information easily
• .Output devices, which provide a visual or permanent record for the executive to save or
read. This device refers to the visual output device such as monitor or printer
2. Software
Choosing the appropriate software is vital to an effective EIS.[citation needed] Therefore, the
software components and how they integrate the data into one system are important. A typical
3. User interface
An EIS must be efficient to retrieve relevant data for decision makers, so the user interface is very
important. Several types of interfaces can be available to the EIS structure, such as scheduled
reports, questions/answers, menu driven, command language, natural language, and input/output.
The ESS information is often external, unstructured and even uncertain. Exact scope and context
of such information is often not known beforehand.
This information is intelligence based:
1. Market intelligence
2. Investment intelligence
3. Technology intelligence
Following are some examples of intelligent information, which is often the source of an ESS:
1. External databases
2. Technology reports like patent records etc.
3. Technical reports from consultants
4. Market reports
5. Confidential information about competitors
6. Speculative information like market conditions
7. Government policies
8. Financial reports and information
Advantage of ESS
Disadvantage of ESS
Batch processing
All transactions are accumulated over a period of time and processed as a single unit.
Expert systems are computer applications which embody some non algorithm expertise for solving
certain types of problem.
3. Facilitate real time, low cost expert level decisions by the non expert.
5.Free up the mind and the time of the human expert to enable him or her concentrate on more
creative activities
The MIS has more than one definition, some of which are given below:
• The MIS is defined as a system which provides information support for decision-making in
the organization.
• The MIS is defined as a system based on the database of the organization evolved for the
purpose of providing information to the people in the organization.
Though there are a number of definitions all of them converge on a single point, i.e. the MIS is a system
that support the decision-making function of the organization. The difference lies in defining the elements
of MIS. However, in today’s world, the MIS is a computerized business processing system generating
information for the people in the organization to meet the information needs for decision-making to
achieve the corporate objective of the organization.
MIS is a computer-based system that provides flexible and speedy access to accurate data. The
organizational information system which in general relates to the planning, operation and control
CHARACTERISTICS OF MIS
Components of MIS
a. People: People is the only living component of MIS which operates and controls the other
components of MIS. They enter, analyze and diagnose data, so that useful information is produced
and provided to top executives for decision making.
b. Data process: Data process uses different procedures so that data can be properly analyzed
and effective information generated. Procedures explains to users how to operate the computer
hardware, what program to run, what data to use and what to do with the results.
c. Data communication: There are different ways of communicating data. May be orally or
in the form of written report. Written reports are more appropriate than oral as it is permanent and
systematic way of organizing information.
d. Information: data are facts and figures that are not currently being used in decision
making. Data is process by applying different procedures to obtain information. It may be recorded
in computer, storage media or manual files and is retrieved whenever required.
e. Hardware and software: the hardware consist of computer equipment’s. Software consist
of programs or instructions given to the computer such as payroll processing
Pyramidical structure of MIS
i. Lower level: The bottom layer consist of information required for transaction processing and
inquiry processing.
ii. Operational level: This layer has the information required for day to day performance of activities
and their control.
iii. Middle level: This layer has information useful for tactical planning and decision making to
implement the policy of top management. iv. Top level: This layer has information useful for strategies
i. The MIS satisfies the diverse needs through variety of systems such as query system, analysis
system, modeling system and decision support system.
ii. The MIS helps in strategic planning, management control, operational control and transaction
processing. The MIS helps in the clerical personal in the transaction processing and answers the queries
on the data pertaining to the transaction, the status of a particular record and reference on a variety of
documents.
iii. The MIS helps the junior management personnel by providing the operational data for planning,
scheduling and control , and helps them further in decision-making at the operation level to correct an
out of control situation.
iv. The MIS helps the middle management in short term planning, target setting and controlling the
business functions. It is supported by the use of the management tools of planning and control.
v. The MIS helps the top level management in goal setting, strategic planning and evolving the
business plans and their implementation.