Tutorial 1

1. What is an information system? In your answer be sure to give what components make up the system, and give at least two examples of information systems used in business.

Information system is a set of hardware, software, data, people and procedures that work together to produce information. An information system is a collection of components that work together to provide information to help employees and managers operate and manage an organization.

The components are hardware, software, data, personnel and procedures. Examples: point of sale, general ledger, inventory control, order entry, production scheduling.

2. Briefly explain why organizations collect data on daily events that occur throughout their operations.

Organizations collect data on daily events,that occur throughout their operations because these data'can be used to monitor the performance of events in order to detect any abnormalities or problems so that they can be resolved as soon as possible. These data can also be compared to expected outcomes. If the difference between actual and expected outcomes is significant then it is the manager's responsibility to investigate the cause of the discrepancy.

3. Sally recently opened her very own fabric shop. After observing customer response for the first few weeks in her new business, Sally knows that most of her customers arrive early morning (before 9:00 am) or late afternoon (between 3:00 pm and 5:30 pm)- Based on this information, she decided to close her fabric shop at 6.00 pm).

a) Is Sally making her decision under conditions of certainty, uncertainty or risk?

Sally is making her decision under conditions of certainty- From experience, she knows in advance of making the decision that most of the customers would not patronize her store after 5 p.m. she recognizes that there may be some uncontrollable variables, but she is able to estimate the probability of environmental variable; therefore risk is minimal.

b) Is her information most likely based on information or experience?

Her information is based on experience. She is a heuristic decision maker who observes her customer's patterns and makes her decision based on personal

observation

4. "People" is one of the key elements of information systems in system development within an organization. Determine and describe THREE (3) of the responsibilities for each of the role.

Information System Managers

The manager of an information system department may have a direct role in the system development process if the organization is small or if that is the manager's style. Typically, information system managers are more involved in allocating resources to and overseeing approved system development process rather than in actual development process. Thus, Information System Managers may attend some project review meetings and certainly will expect written status reports on project progress covering their areas of concern. Information System Managers may prescribe what methodologies, techniques, tools are to be used and the procedure for reporting the status of projects. As department leaders, Information System Managers are also responsible for career planning and development for system analysts and other employees and for solving problems that arise in the course of development projects

System Analysts

System Analysts are the key individuals in the system development process. To succeed as system analysts, they need to have four skills: analytical, technical, managerial and interpersonal skills. 

Programmers

Programmers convert the system specifications given to them by the analysts into instructions the computer can understand. Writing a computer program is sometimes called writing code or coding.

End Users

Non information system professionals in an organization who specify the business requirements for and use software applications. End users often request new or modified applications, test and approve applications and may serve on project terms as business experts.

Business Managers

Another group important to system development effort is business managers, such as functional department heads and corporate executives. These managers are important to systems development because they have the power to fund development projects and to allocate the resources necessary for the project's success.

Other Information System Managers/ Technicians in the System Development

In large organization where information system roles are more differentiated, there may be several additional information system professionals involved in the systems development effort. 

Database administrator usually involved in any systems project affecting the firm's databases.

Network and telecommunications experts help develop system involving data and/ or voice communication, either internal or external to the organization.

Human factors departments that are concerned with system interfaces and case of use issues, training users and writing users documentation and manuals.

Internal auditors who ensure that required control are built into the system.

5. Sandy works as a staff for Wow-Wow Dog Food Company. Since there are several different suppliers of ingredients and their prices fluctuate, she has come up with several different formulations for the same dog food product depending on the availability of different ingredients from different suppliers. She then orders ingredients accordingly based on the price quotation from suppliers. Even though she cannot predict the availability of a particular ingredient, her ordering of supplies can be considered routine. In which level of organisational management is Sandy working? Justify your answer.

Sandy is working at the operations management level. She makes decisions using predetermined rules that have predictable outcomes. Her responsibility is to manage inventories, a basic task of the organization, which must be accomplished on time and in accordance with organizational constraints.

6. Woodline Limited manufactures and retails a range of high quality wooden furniture products. The company now has made use of a number of business information system categories such as Transaction Processing System (TPS), Management Information System (MIS), Office Automation System (OAS) and Decision Support System (DSS) to assist in the company daily operation. These organizations' information systems provide data to internal support their decision-making and control activities. Briefly describe the three levels of management decision making in an organization and provide examples of decisions made for each level.

The characteristics of the decisions could be as follows:

Strategic decisions(top management):

- very long term horizon, e.g. five to ten years

- radical implications for the whole organization, e.g. new products, new market

- high risk, e.g. investment in overseas markets, new technology development 

- non-routine, e.g. setting up a new company / department 

- information on hand is very little/uncertain lead to unpredictable outcome

Tactical decisions(middle management): 

- medium time horizon, e.g. less than five years

- implication for a function under control, e.g. accounting or production

- information on hand is limited lead to moderately uncertain outcome involving the possible use of forecasting technique and information technology

- less routine / less frequent decision compare to operational decision

- moderate risk as the levels of investment is smaller and the decision are more predictable, e.g. setting product price, setting stock levels, budgetary control decision

Operational decisions(lower management): 

- Short timescale, e.g. one day to one week 

- routine and information on hand is complete/enough lead to specific outcomes

- low levels of risk with much more decision support/ information on hand

- predictable, well-documented information requirement, e.g. routine office procedures

- E.g. sales and order taking procedures, subsequent invoicing and collection of payment for the goods and services, number of items manufactured in a particular

day.

While a distinction has been drawn between these three levels, one should recognize that in practice it is often difficult to allocate a particular decision clearly to one category as opposed to another.