A2 ICT Unit 4 :Information Systems In Organisations

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A2 ICTUnit 4 Information Systems In
Organisations
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The role of a Management Information System
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What managers do

• The 5 classical functions of managers
• Planning
• Organising
• Coordinating
• Decision-making
• Controlling
• Management information systems must be designed
  to support managers in as many of these functions
  as possible, at different levels (operational,
  tactical, strategic) of an organisation.

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Types of decision

• Management decisions can be
• Structured (i.e. repetitive, routine, definite
  procedures)
• Or
• Unstructured (i.e. require judgement, insight,
  evaluation)

Stages of decision-making

• Recognition that there is a problem
• Consideration of possible solutions
• Choosing a solution
• Implementing the solution

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Typical functions of a MIS

• a comprehensive database holding all the
  information about products, customers, suppliers
  and finance that would be needed to provide
  managers with reports for decision-making
• the ability to analyse the information in the
  database to highlight situations that need
  attention
• the ability to show figures over a period of
  time, perhaps in graphical format including
  production and sales figures
• ability to show a snapshot of the companys
  financial situation over a period of time
• ability to perform what-if calculations to show
  what the effect would be of raising production
  levels, hiring more staff, acquiring a new
  building etc.
• warning signals to indicate that decisions are
  required, such as low stock levels, expenditure
  exceeding information, numbers of faulty products
  exceeding expectations
• audio and visual warnings when incoming orders
  exceed production capacity
• daily calculation of productivity levels by
  analysis of costs and output
• monthly graphs of price comparison with
  competitor goods or services resulting from
  regular market research

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Relationships between departments and external
agencies an example
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Information flow
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Other external agencies

• For example
• Stationery suppliers
• Telephone company
• Utilities companies (water, gas, electricity)
• Local Council
• Accountant
• Auditor
• Recruitment agency
• Inland Revenue
• Insurers
• Advertising agencies
• Bank
• VAT office
• Training organisations