UNIT 3 INFORMATION SYSTEMS

What is an information system? Information systems are combinations of software, hardware and communication networks, used to collect, organise and distribute useful information within organisations.

Where does information come from? Information comes from: internal sources: finance, human resources, marketing, purchasing, sales, manufacturing, administration etc. External sources: government, trade groupings, commercially provided databases, research You always have to be careful about the reliability of your data sources

Criteria to be covered P1 explain how organisations use information M1 illustrate the information flow between different functional areas D1 explain how an organisation could improve the quality of its business information [EP2]   D2 justify the information selected to support a business decision-making process. [IE6] P2 discuss the characteristics of good information P3 explain the issues related to the use of information [IE1, IE2] M2 assess how issues related to the use of information affect an organisation P4 describe the features and functions of information systems P5 identify the information systems used in a specified organisation P6 select information to support a business decision- making process P7 use IT tools to produce management information. [IE4] M3 generate valid, accurate and useful information.

Types of Information There are 4 different types of Information: Qualitative, Quantitative, primary and secondary Qualitative is personal and subjective – it can be people’s opinions or based on experience Quantitative is more factual, usually statistically based and obtained from real data such as sales reports Primary Data is data that you collect yourself through observation, surveys, interviews etc. It can be expensive and difficult to get. Secondary data comes from external sources such as the internet, television, written information in journals, verbal information from others

PRESENTING THE INFORMATION FOR EACH TASK The tasks below will require a separate presentation in the same running order as the questions. It may be possible to use some of the information in your assignment so make sure it is going to be available to use in a variety of different software applications.

TASK A) Explain what qualitative and quantitative information can be used for – remember they contain different types of information B) Give 2 advantages and 2 disadvantages of using i Primary Information ii Secondary Information

How do companies use information Companies use information for monitoring and controlling activities, they also use it for analysis to identify trends and patterns, for decision making at different levels – operational, tactical and strategic and for gaining commercial advantage. Operational – short term decisions e.g. ordering more items for shelves or more staff at the week-end Tactical – Using statistics to compare company competitiveness e.g. weekly sales and costs reports to identify opening or closing hour options Strategic – These are usually high level decisions made for changes or improvements to the whole company e.g. opening new branches

TASK Using a company of your own choice give an example of one piece of Operational information, one piece of Tactical information, one piece of Strategic information that will be used by the company to make a decision at the appropriate level.

Characteristics of good information Good information is: Valid Reliable Timely Fit for purpose Accessible Cost effective Accurate Relevant Having the right level of detail Understandable Coming from a reliable source

TASK Choose 5 of the above, describe what each characteristic means and explain why each one of your choices is important if information is to be considered good, include examples to aid your explanation. P2 Discuss the characteristics of good information D1 explain how an organisation could improve the quality of its business information

Main Functional Areas Sales Purchasing Manufacturing Marketing Finance Human Resources Administration

Requests Insurance Information Sends Excess And Policy Information Information flowing from different functional areas for an insurance sales system Returns Invoice And Payment   Finance   HR Sends Sale Details And Commission Info Send Back Commission And Customer Details Sends Invoice details Sends Copy Of Quote Confirms Sale   IT Accepts Insurance Company Quote   Sales Customer Send Back Sales Report Sales Figure Requests Insurance Information   Marketing New Promotion Ideas Forward Quote Send Report And Comments Supplies Customer Details For Database Sends Quote To Sales Sends Final Quote   Administration Underwriters Sends Excess And Policy Information Customer Details Sent For Analysis Confirms Acceptance

TASK The above information slides describe some of the tasks performed by the various departments in an organisation; the graphic shows a typical information flow diagram for an insurance company. Your task is to research the functional areas for a company of your choice and design a data flow diagram for the information that flows to and from each department and has 2 outside entities. M1 illustrate the information flow between different functional areas

How the functional areas use the information Information flow is the movement of information relevant to the business. Information can flow up – staff report to management; flow down - from management about decisions taken; across – passed between different part of the organisation so that they can work together to achieve the common goals. It can also flow to and from external bodies to customers, suppliers etc.

Issues concerning information Legal: DPA, Freedom of Information Act, Computer Misuse Act Ethical: Codes of practice on email and internet use, whistleblowing procedures, organisational policies on where information should be kept, information ownership by departments to make sure that information is entered correctly and on time. Operational Issues: Backing up and security of company data, health and safety issues, business plans, costs of resources and development, the need for more trained personnel because of the more complex software required.

TASK A) Explain why the 3 Acts above have an impact on the way information is collected and kept. B) What are the main issues companies are concerned about when staff are using the internet for research and why is it important to check the way information is named, entered and within a suitable time frame? C) What are the problems if data isn’t backed up properly and kept secure? D) Why are companies wary of falling foul of H&S legislation when using computers to enter and develop data? E) Choose a company of your own choice and explain what issues in particular could affect that company and why? P3 explain the issues related to the use of information M2 assess how issues related to the use of information affect an organisation

ALTON TOWERS RESORT AS A BUSINESS

Organisational structure Alton Towers Resort has a decentralised structure which sets out: Job roles Levels of authority Channels of communication Company Owners Senior Managers Middle Managers Junior Managers Support Staff

Functional areas Alton Towers Resort Conference & Events Costume & Uniform Development Experience Entertainments F&B Finance Health & Safety Hotel HR Leadership Retail Sales Marketing Security Medical Tech Services Welcome

Functional area definitions Finance We manage how revenue and costs are spent and budgeted. Health and safety We work to protect employees and customers against any risks that may arise from working for Alton Towers Resort or visiting the Park. Human resources We are responsible for planning and implementing strategies and policies relating to the management of our employees. Leadership We plan all the strategy to ensure that Alton Towers Resort continues to succeed, develop and meet our evolving customers’ needs. Sales and marketing We plan and manage all our communications to ensure that we retain our current customers and recruit new audiences to the Park. IT Department We provide assistance to employees with technology products, such as mobile phones, computers or other electronic goods. Conferences and events We manage all events on the Park, from consumer events such as comedy nights, to corporate conferences or weekends away.