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Chapter 1

Information Management

Chapter Objectives:

♦ Information and decision making

• To understand the types of information and their
use for decision making and control processes

♦ Information systems
• To know the categories of information systems and
the challenges facing information systems in
business activities
Chapter 1
Information Management

Chapter Objectives:

♦ Management activities
• To understand the activities in managing
information systems

♦ Business and information systems

• To understand the relationship between business
and information systems, how to perform enterprise
analysis and identifying critical success factors
Information and Decision Making

♦ Characteristics of Information

• Time frame

• Expectation

• Source

• Scope

• Frequency

• Organisation
And the link to the types of controls

♦ Operational control

♦ Managerial control

♦ Strategic planning
♦ Types of decisions and controls

• Strategic decision

• Management control

• Knowledge-level decision

• Operational control

• Unstructured decisions

• Structured decisions

• Semistructured decisions
Information Systems

♦ What is an information system?

♦ Information systems

• Manual information systems

• Computer-based information systems

♦ Information systems from a business perspective

Categories of IS

♦ Types described in SA205

• Transaction processing systems

• Management information systems

• Executive information systems

• Decision support system

• Expert systems
♦ Alternative classifications (by the management

• Operational level systems

– Information systems that monitor the elementary

activities and transactions of the organisation

• Knowledge level systems

– Information systems that support knowledge and

data workers in an organisation
• Management level systems

– Information systems that support monitoring,

controlling, decision making and administrative
activities of middle managers

• Strategic level systems

– Information systems that support the long-range

activities of senior management
Challenges Faced By IS
♦ The Strategic Business Challenge
• How can business use information technology to
design organisations that are competitive and
♦ The Globalisation Challenge
• How can the firm understand the business and
system requirements of a global economic
♦ The Information Architecture Challenge
• How can organisations develop an information
structure that supports their business goals?
♦ The IS Investment Challenge

• How can the organisation determine the business

value of information systems?

♦ The Responsibility and Control Challenge

• How can organisations design systems that people

can control and understand, and yet ensure that it is
used in an ethical and socially responsible manner?
Management Activities

♦ Supervision and project management

♦ Planning

♦ Security management

♦ Personnel management

♦ Financial management
Business and Information Systems

♦ Linking to the business plan

• Deciding what to build

• Developing an information system plan

Establishing Organisational Information
♦ Enterprise analysis
• What it is
• How it’s done
• Strengths
• Weaknesses
♦ Critical success factors (CSF)
• What it is
• How it’s done
• Strengths
• Weaknesses