1. 1 Business information needs (special thanks to Geoff Leese)

2. 2 Data & Information n Data-the raw figures n Information-structured, meaningful data

3. 3 Categories of information n Strategic ä -long-term planning, imprecise, external n Tactical ä -medium-term e.g. departmental sales forecasts n Operational ä -short-term, immediate goals, precise

4. 4 Levels of information n International information, n National information, n Corporate information, n Departmental information, n Individual information,

5. 5 Features of information n Appropriate detail n Degree of precision required n Timeliness n Task& person-directed n Value

6. 6 Possible data storage locations n local database e.g. Access on desktop PC n LAN database n company-wide database n groupware product such as lotus notes n Intranet-closed n Internet-open

7. 7 Management reports n Reports provide information for decision-making n based on data n underlying data stored in a database n extracted by software e.g. Reports

8. 8 Types of management report n Analyses n Forecasts n Optimizations n Regular cyclical reports e.g. payroll n Exception reports n Decision support

9. 9 Analyses n Summary e.g. sales figures last year n Should offer typical default reports n Should allow custom reports for specific data requirements n The higher the level, the less detailed and the more summarized the information

10. 10 Forecasts & Predictions n Predictions take historical data and project the future on their basis, e.g. time series predictions n Forecasts based on subjective, conjectural data rather than historical data n The further into the future the forecast or prediction, the less reliable it is n Important not to get blinded by sophisticated mathematical techniques n Need to consider the assumptions made

11. 11 Optimization reports n Concerned with choosing the ‘best’ mix n Need to consider what is meant by ‘best’ n Optimizing one factor is usually at the expense of other factors, e.g. time versus cost

12. 12 Examples of optimization techniques n Linear programming n Inventory modelling n Resource allocation techniques n Queuing theory n Simulation n Decision theory n Replacement theory n e.g. Goal Seek in Excel

13. 13 Exception Reporting n ‘No news is good news’ principle n ‘management by exception’ n how to decide what is exceptional? n parameters have to be continually reviewed

14. 14 Decision support systems n Goal is to provide information to help decision-making n Best where there are a number of possible alternative actions n may include automated OR or statistical techniques n often built on database queries or expert-systems

15. 15 Systems security and auditing n Preventing errors ä data controls n Guard against hardware and software failure ä backup and security procedures n Prevention of fraud and abuse ä security n To allow auditing

16. 16 Data controls should be exercised over: n *input n *file processing n *output

17. 17 Input controls n minimising transcription e.g. using bar codes n designing out errors n using clerical checking procedures such as the re-calculation of totals n use batch methods of input which allow the use of batch control totals

18. 18 Software validation techniques n Size Checks n Range Checks n Format Checks n Consistency Checks n Check Digit

19. 19 File Processing Controls n Header Records n File Validation Checks n New Record checks-no duplicate primary keys n Deleted Record-referential integrity n Data Consistency Checks n Data Integrity

20. 20 Types of audit n Statutory ä e.g. required by the UK Companies Act 1989 ä a ‘true and fair view’ of the companies affairs n Private n Internal n Management ‘audit’ n Quality ‘audit’

21. 21 Auditors are primarily concerned with the following: n The organisation’s system of internal controls n The validity of the values placed on the organisations assets and liabilities and its future viability n The potential for fraud of the organisations systems

22. 22 Typical problems picked-up by auditing: n addition, deletion and alteration of input transactions n changes to master files n changes to programs n improper computer operations

23. 23 Control totals n data or document loss n accidental or deliberate (fraudulent) insertion of records or data n fraudulent alterations to data n errors during processing

24. 24 Reading n Clifton, Ince, Sutcliffe, 2000, Business Information Systems, FT-Prentice-Hall sections 1.2-1.4, 8.7 n Bott et al section 3.11