1 Business information needs (special thanks to Geoff Leese)

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Business information needs

(special thanks to Geoff Leese)

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Data & Information

Data-the raw figures Information-structured,

meaningful data

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Categories of information

Strategic -long-term planning, imprecise,

external Tactical

-medium-term e.g. departmental sales forecasts

Operational -short-term, immediate goals,

precise

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Levels of information

International information, National information, Corporate information, Departmental information, Individual information,

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Features of information

Appropriate detail Degree of precision required Timeliness Task& person-directed Value

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Possible data storage locations

local database e.g. Access on desktop PC

LAN database company-wide database groupware product such as lotus

notes Intranet-closed Internet-open

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Management reports

Reports provide information for decision-making

based on data underlying data stored in a

database extracted by software e.g.

Reports

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Types of management report

Analyses Forecasts Optimizations Regular cyclical reports e.g.

payroll Exception reports Decision support

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Analyses

Summary e.g. sales figures last year

Should offer typical default reports Should allow custom reports for

specific data requirements The higher the level, the less

detailed and the more summarized the information

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Forecasts & Predictions

Predictions take historical data and project the future on their basis, e.g. time series predictions

Forecasts based on subjective, conjectural data rather than historical data

The further into the future the forecast or prediction, the less reliable it is

Important not to get blinded by sophisticated mathematical techniques

Need to consider the assumptions made

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Optimization reports

Concerned with choosing the ‘best’ mix

Need to consider what is meant by ‘best’

Optimizing one factor is usually at the expense of other factors, e.g. time versus cost

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Examples of optimization techniques

Linear programming Inventory modelling Resource allocation techniques Queuing theory Simulation Decision theory Replacement theory e.g. Goal Seek in Excel

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Exception Reporting

‘No news is good news’ principle

‘management by exception’ how to decide what is

exceptional? parameters have to be

continually reviewed

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Decision support systems

Goal is to provide information to help decision-making

Best where there are a number of possible alternative actions

may include automated OR or statistical techniques

often built on database queries or expert-systems

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Systems security and auditing

Preventing errors data controls

Guard against hardware and software failure backup and security procedures

Prevention of fraud and abuse security

To allow auditing

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Data controls should be exercised over:

* input * file processing * output

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Input controls

minimising transcription e.g. using bar codes

designing out errors using clerical checking procedures

such as the re-calculation of totals use batch methods of input which

allow the use of batch control totals

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Software validation techniques

Size Checks Range Checks Format Checks Consistency Checks Check Digit

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File Processing Controls

Header Records File Validation Checks New Record checks-no duplicate

primary keys Deleted Record-referential

integrity Data Consistency Checks Data Integrity

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Types of audit

Statutory e.g. required by the UK Companies Act

1989 a ‘true and fair view’ of the companies

affairs Private Internal Management ‘audit’ Quality ‘audit’

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Auditors are primarily concerned with the following:

The organisation’s system of internal controls

The validity of the values placed on the organisations assets and liabilities and its future viability

The potential for fraud of the organisations systems

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Typical problems picked-up by auditing:

addition, deletion and alteration of input transactions

changes to master files changes to programs improper computer operations

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Control totals

data or document loss accidental or deliberate

(fraudulent) insertion of records or data

fraudulent alterations to data errors during processing

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Reading

Clifton, Ince, Sutcliffe, 2000, Business Information Systems, FT-Prentice-Hall sections 1.2-1.4, 8.7

Bott et al section 3.11