US 14926: IT DEPARTMENT OF AN ORGANISATION

FETC: Information Technology Technical Support NQF 4: SAQA ID 78964

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Page 1 of 22 IT TECH NQF 4 – IT TECH – LG 6 – US 14926 Issue 3: 01-01-2020

US 14926: IT DEPARTMENT OF AN ORGANISATION NQF Level 4 Credits 3 Purpose This unit standard is intended: to provide conceptual knowledge of the areas covered for those working in, or entering the workplace in the area of Information Systems and Technology Management; as additional knowledge for those wanting to understand the areas covered People credited with this unit standard are able to:

Describe the roles of IS departments in organisations

Describe the structures of IS departments in organisations The performance of all elements is to a standard that allows for further learning in this area. Learning assumed to be in place The credit value of this unit is based on a person having prior knowledge and skills to: Describe the management and use of computers in an organisation (IST001). Unit standard range N/A Specific Outcomes and Assessment Criteria Specific Outcome 1: Describe the roles of IS departments in business organisations: Includes, but is not limited to: IS Manager, Operations Mgmt., Systems support, Development Manager, Development Project Team (Analyst, DBA, Programmers). Assessment Criteria

The description identifies the roles typically found in an IS department

The description compares the tasks of each role

The description identifies the purpose of each role and outlines their tasks Specific Outcome 2: Describe the structure of IS departments in business organisations: Business Strategy, IS Strategy, IT Strategy. Assessment Criteria

The description identifies the position of an IS department via an organisation chart

The description outlines the purpose of systems and operations areas within an IS department, and their interaction.

The description explains the interactions of systems and operations Critical Cross-field Outcomes (CCFO)

Collect, analyse, organise, and critically evaluate information

Use science and technology effectively and critically, showing responsibility towards the environment and health of others

Demonstrate an understanding of the world as a set of related systems by recognising that problem solving contexts do not exists in isolation

Contribute to his/her full personal development and the social and economic development of the society at large by being aware of the importance of: reflecting on and exploring a variety of strategies to learn more effectively, exploring education and career opportunities and developing entrepreneurial opportunities.

ROLE OF IS DEPARTMENTS

Outcome

Describe the roles of IS departments in business organisations Assessment criteria

The description identifies the roles typically found in an IS department

The description compares the tasks of each role

The description identifies the purpose of each role and outlines their tasks


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Business information

We all know that we live in the information age. In fact, we have access to so much information that we at times suffer from information overload. Various business sectors are almost exclusively concerned with the handling of information. These include banking, advertising, insurance, public administration and communication. Furthermore, every organisation operating in the primary and secondary sectors of the economy has a wide range of administrative functions essential to the operation of the enterprise. Each of the administrative functions involves the processing of information. The growing burden of data processing was recognised long ago and people have tried to mechanise and automate the data processing functions common to all business organisations

Factors That Affect the Quality of Information For information to have value to the organisation, it should have the following characteristics: Information should be up to date After Saturday training, each store in a chain submits weekly sales returns to the central computer. The analysis of these returns is available for the directors’ scrutiny each Sunday. When the weekly board meeting is held on Monday, the directors have information that is thirty-six hours old. They can act on any apparent trends immediately, giving the company an advantage over competitors who gather their information more slowly. The importance of timely information cannot be stressed enough. Information should be accurate A sales clerk needs to know that the amount recorded on the till roll is the same as cash, cheques and credit vouchers in the till. The store manager needs to know whether trade is up or down and by how much in each department. The nearest R10 rather than the nearest cent might be sufficiently accurate information for the decision the manager needs to take. The directors may be content to work with figures that are accurate to the nearest R1000. The shareholders may be satisfied with information that is accurate to the nearest Rl0 000. In each case, the information is sufficiently accurate for the needs of those people who wish to use it. Senior managers usually do not require to know how much was taken in the food hall on Monday 18 March, although the department manager would want to know this. To devote more or less space to food, senior managers would want to know whether food sales were increasing or decreasing. Inaccurate information could lead to bad decision-making, loss of profit, etc. Information should be complete and relevant Rain in the Eastern Cape has meant that sales of umbrellas rose by 50% last week. If they had made no returns from Durban store in respect of umbrella sales, it would not be sound management to assume that it was similarly wet in Durban, that the sales were up 50%, and to increase the order to the supplier of umbrellas accordingly.

Nobody can make an informed decision if they do not have complete and relevant information.

How intelligible is the information? When information is presented, it needs to be well laid out and to the point. It should also not be too complex. It is better to simplify information. Can the information be verified? Users of information should be able to check the information to ensure that it is correct. In fact, checks about the accuracy of information should be carried out from where data is input through the process to where information is the output. Is the information accessible? The people who need the information must be able to access the information easily. Is the information secure? At the same time, the organisation wants to ensure that only authorised personnel have access to the information.


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What does it cost to gather information? Since businesses exist to make profits or to run at a minimum cost, there can be little justification for gathering information at a cost greater than its benefit. An analysis has to be done to find out if a manual or computerised system will be more beneficial in terms of cost. The cost of a computer system should of course be offset against the advantages of getting up to date information on time.

The Value of Information Information that has all or most of the above characteristics will have value to the organisation. Information will help managers and other decision-makers to achieve the goals of the organisation. It follows, therefore, that the value of information is directly linked to how it helps the organisation and the employees in the organisation to make decisions that will help the organisation achieve its goals.

Information Systems For a business to be successful it is imperative that managers and decision makers be involved in information systems. Knowledge of information systems can contribute to higher profits and lower costs, which is important in the business world today where the survival of a business is becoming more and more difficult. Furthermore, decisions have to be made quickly, while problems are becoming more complex. Without the required valuable information, you are likely to make a poor decision. This is where information systems play an important role. n this age, information systems are becoming more and more important. There is so much information available that a system to filter and monitor the information is very important. Managers today must not only understand how organisations operate, especially the organisation you are employed in, they must also know:

The role that information systems play in organisations

How information systems can improve the business

How information systems can help you do your work more efficiently

How to implement information systems projects in your area of business

This implies that information must be managed

Due to the need for business information systems, many information systems have been developed. Some are used by most businesses and some are more specialised information systems. The systems used most often include:

E-commerce systems

Transaction processing systems

Decision support systems

Management information systems Some specialised systems include:

Geographic information systems

Virtual reality systems

Artificial intelligence systems Whatever the information system used by an organisation, the purpose of the system is always to assist employees and managers in the organisation to do their work more efficiently: from processing to decision making. The most common example is the processing of payrolls, while some systems also assist in the implementation of projects from small to large.

E-commerce This is Electronic commerce, where you can do shopping on-line by visiting certain Web sites, but e-Commerce is also a lot more. It includes all business transactions that take place electronically between:

Companies: transactions that take place business to business

Companies and customers: transactions that happen between a business and a consumer

Business and the Public Sector: transactions between business and the Public Sector

Consumer and the Public Sector: transactions between consumers and the Public Sector


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Most of e-commerce transactions are business-to-business transactions, which simplifies the buying and selling process for both businesses.

Transaction Processing Systems IBM advertised their International Business Machines as early as 1953, so some form of computerised transaction processing has been around for a long time. In those days, the purpose was to automate routine, labour intensive work. By letting the business machine do most of this routine labour intensive work, the machine reduced costs to the business, while also allowing the employees to become involved in more meaningful work. When you implement a transaction processing system, you are automating repetitive and routine business transactions that are critical to the daily functions and efficient running of the business.

Workflow Systems When the business has interrelated sets of tasks that are arranged to form a business process, such as the:

Collecting,

Sending and

Delivering of documents, A workflow system would provide:

Entering of data,

Processing,

Tracking,

Routing,

Delivery and other required functions. Combining transactional and workflow systems improves productivity and the reliability of business processes. Such a system would

Eliminate the duplication of work by having to retype and edit documents,

It would make tracking and solving problems easier,

Errors should be less frequent and

Customer service will improve.

Management Information Systems The purpose of a MIS is to give managers

accurate,

useful,

timely and

complete information so that decisions can be made. These systems can be computer-based, manual or a combination of the two. Each organisation’s requirements for an information system will be different as the structure and management style differs. The system should, however satisfy the needs of all three levels of management:

First-line, supervisory or operational management

Middle management

Top management Each level of management will have different informational needs and the system should accommodate all these needs, to enable efficient and reliable decision-making to take place. The type of information and reports, the time frame within which decisions have to be made and the type of decisions vary with each level of management.


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Information Needed to Make Decisions Management makes decisions based on the information at hand. This implies that information should be valuable and have all or most of the characteristics discussed earlier. Information is collected from three sources:

Information produced through the normal data processing that takes place in the business every day.

Data received from either higher or lower levels of management and brought into the equation

Data obtained from sources outside the company, e.g. statistics provided by the government, information about competitors such as prices and products, forecasts about trends made by experts

Computer-Based Information Systems Until a few years ago all information was processed manually, especially in smaller organisations. The advanced technology of the computer has permitted the following developments:

Databases can be created. A database contains all the data generated by an organisation. The data can be manipulated to allow the information needs of the organisation to be met. Specialised software (data description and data manipulation languages) has been created to ease the development of database management systems.

On-line updating. Transactions can be recorded as they occur so that the information available to management is up to date. This has been a consequence of the failing cost of direct access storage technology.

Speedier communication. Networks have linked together a wide range of intelligent equipment. Because of this, information transmission is speedier and can be directed, if necessary, to a wide group of people at little extra cost.

Improved software. Spreadsheet programs, graphics packages and word processing programs have become popular because they eliminate the repetitious element that occurs in information processing and which staff find time-consuming.

Computer-aided design and computer-aided manufacture (CAD and CAM) have improved the manufacturing process. Cars are designed with the aid of a computer that can calculate the strength of the design and the resistance of the bodywork to airflow. Robots can also do part of the assembly.

Mathematical techniques, such as linear programming and critical path analysis can be applied routinely to business problems to find the best solutions to these problems.

Turning data into information using a computer A computer-based information system is allowing the input, processing, output and storage of data to take place by making use of a computer.

Components of a computer-based information system Some of the components needed for a computer-based system are similar to a manual system, with some extra components:

Hardware: found in computer systems

Software: found in computer systems

Data/information: found in manual and computer systems

Procedures: found in manual and computer systems

People: found in both manual and computer systems By its nature, a computer-based information system is driven by people. Humans are needed to input the data, process the data and interpret the outputs. The interaction between people and the computer as far as an information system is concerned happens as follows: Input First, a computer user (you) must enter data in a computer, called capturing data. This has to happen in a format that is usable by the computer, but this part is very easy as you will see later on. This is usually done using a form, as with a manual system. For this to happen, the data must be collected and then you have to access the software package that you will need to capture the data. By doing this, you are in effect instructing the computer to start with data input activities. You will enter the data by making use of input devices: they keyboard, mouse and monitor. These devices translate your input into digital (electronic) signals that the computer can recognise. The same procedures as is the case with a manual information system have to be followed. Someone has to check the data before it is


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entered, all the data has to be entered and after the data has been captured, someone must check that all the data has been captured and that it has been captured correctly. You will use the keyboard and mouse as well as the monitor to capture data. Process Then data has to be processed by the computer, in order for meaningful and useful information to come out. The processing of data can include performing calculations, classifying and sorting the data, summarising the data and performing logistical processing activities where information can be listed in a specific order. Many of these processing functions will be automated, but you may be required to give the computer commands for certain functions to happen. You may, for example, have to tell the computer to do a calculation or the software may ask you questions that you have to respond to. Most of the processing is done by the CPU (Central Processing Unit) and the main memory. This is found inside the tower. Output Once the data has been processed, the outputs will be available. The information can now be printed in the format as required by the manager or yourself. An example is the payslips, or a report about the total amount of salaries or a demographic report about the employees. If the system is set up properly, the information will be of value to the organisation. The output can be in hardcopy, for example printing of reports or other information on paper or microfilm. It can also be in soft copy, meaning that it will be read from the computer monitor. Although we still have the tendency to print reports, we should be moving towards working without paper, so employees should learn to read the information from the monitor without printing it first. You will also be able to provide information, whether in hard copy or soft copy, with graphics, colour and pictures together with text. Information can also be produced in audio form, such as a telephone number given over the phone by directory assistance. In the near future, we may even be able to enter data by talking to the computer instead of typing the data. How the information (output) is prepared and distributed would depend on the procedures and business processes of the organisation. Whatever the requirements, once the information has been processed it has to be prepared for distribution, distributed and then analysed by the recipients. Decisions affecting the company will then be made according to the output. Storage Once the data has been processed and turned into information, it is stored in the storage devices of the computer. The devices available for storage include: the hard drive, flash drive, floppy disk, CD, DVD or tapes. In computer terms storage is called saving. The software will request you to nominate the storage device you wish to store the information on. Once the data and information has been stored you can retrieve it, send it to other computer users, update it, make printouts again, store it in a different device or erase it. Company policy and procedures should dictate where information is stored and when it should be deleted. In this respect, once again, the computer-based system is similar to a manual system where documents are filed in a specific format, archived and destroyed after a period of time.

Developing an Information System

Phase 1 Analyse the Current System Before a new system is developed, the organisation may request a report, called a feasibility study, to be drawn up by experts. The purpose of a feasibility study is to determine if the advantages in developing a new system will be more than the cost involved and the disruption it will cause. The analyst who did the study will present the findings in the report and will also make a recommendation regarding the priority that should be assigned to the project. This step is optional but can assist management to make a decision about the development of the new system. Feasibility studies are also often conducted during all the phases of the project, as it keeps management up to date on the progress, the cost and the level of disruption. When the current system is analysed, the purpose is to give management a clear indication of the problems and shortcomings of the present system in order to determine what improvements can be made and how beneficial it will be to the organisation to develop a new system. Collecting data about the current system


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The analyst will gather data about the current system, regardless of whether it is a manual or a computer-based system. This data will be processed and analysed. The analyst will collect the data with the participation of the users of the system and a number of techniques can be used:

Conducting interviews

Questionnaires

Observing the flow of information during organisational operations

Collecting sample forms, documents, reports and memos, as well as any other relevant documentation

Studying policies and procedures currently in use An analyst will usually use more than one method to gather information.

Analyse the data Once the data has been gathered, it must be processed and analysed to identify problems, identify the cause of the problem and the effect it has on the department and the organisation and to determine what improvements can be made. The analyst can use the following criteria:

Level of activities: minimum, maximum and average

Importance of activities: prioritising the activities in order of importance

Procedures that are duplicated

Activities that are labour intensive that can be computerised

Activities that involve complex mathematical computing

Procedures that are obsolete and should not be used any more Once the information has been analysed, the analyst will report to management about the existing information system, what shortcomings there are and what modifications and adjustments are required for a computer-based information system to function as required. The report would include full details of policies and procedures, the method of collecting data, the analysis of the data, the discrepancies found and the recommendations that the analyst makes regarding the new system.

Phase Two: Define New System Requirements During phase 1 the problems associated with the current system were identified, the policies and procedures were scrutinised and the information was analysed. During phase 2 the requirements of the new system must be defined, using the information that was gathered during phase 1. The requirements for the new system must be defined in a lot of detail, enough to ensure that the users and the computer specialists know what the new system must do and how it should be done. The analyst will define the business requirements relating to input, processing, storage and output. When defining requirements for an organisation it makes sense to start with the big picture and then go smaller: start with the requirements of the organisation as a whole, then divide it into departments, sections and individual users: Software The analyst always first determines the requirements regarding software before looking at hardware requirements. Only once you know what the software must be able to do can you start looking for hardware. Once the analyst has determined the requirements, the focus shifts to the outputs that must be produced by the system:

Hardcopy output (paper-based output such as reports, forms, queries)

Softcopy output that is displayed on the monitor

Output that can be used by the computer where the files created by one department are inputs for another department. An example is when stores or warehousing add stock to the inventory and this becomes an input for the production line or despatch

Evaluate alternatives Now the analyst will consider alternative options that will also conform to the requirements of the system. This is done so that you do not jump to conclusions. Purchasing the required software and


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hardware and the implementation of a new system can become very costly so alternatives have to be considered. Sometimes a manual system can be modified to suit the requirements of the organisation or modifications to the current computer-based system will also be sufficient to meet the requirements. On the other hand, sometimes not converting to a computer-based system can cost an organisation more in terms of more staff that have to be employed or the loss of potential and real sales because information takes too long to reach the right department. The analyst has to weigh the advantages against the disadvantages of:

A manual system

A manual system supported by a computer-based system or visa-versa

A full computer-based system, based on the requirements of the organisation in terms of cost, speed, accuracy, labour, customer service and so on.

Phase Three: Design the New System Now the system has to be designed. The system will of course be designed according to the requirements defined during phase 2. The people responsible for designing the system will usually be computer specialists such as programmers. During this phase the system will be designed and the control framework within which the system must operate will be established. This will be done with reference to the organisation’s policies and procedures. Ending Phase Three Once the system has been designed, the designer has to report to management about the design of the system. The following information should be stated in the report:

An overview of the system, including details of how the system has been divided into processing modules

All the documentation that describes the input, processing and output activities required in each module and sub module

Details of the storage process of the new system: the files that have to be maintained, the anticipated size of the files and the organisation scheme of the files as well as the access methods that have to be used.

A full description of the controls, both general and related to the software, that have to be used with the new system.

The designer and management responsible for processing information, usually the administration department, will discuss the design, specifically the technical soundness of the design. After this meeting, a meeting will be held between the designer and management of the organisation. During this meeting the design will either be approved or recommendations for alterations will be made. If the design is approved, the project moves to phase four: develop the system.

Phase Four: Develop the System Now that the system has been designed and accepted, the organisation can start looking at acquiring hardware and software, since the organisation only now knows what will be required of the hardware and software. During phase four, the organisation obtains the hardware and software, trains the users and tests the system. Test the System The system will be tested by capturing sample data into the system, processing the data and then storing the data. Then printouts will be made to verify that the information given is what was required. Sometimes testing the system can take months, but it is usually done in a much shorter time. During the testing period, all bugs must be removed from the system.


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Phase Five: Implement the System During this phase the company converts from the old system to the new system. The final operating documentation and procedures are created, files are converted and users start working on the new system. Operating Documentation and Procedures The analyst must ensure that the final documentation and procedures for the following users are in place:

For the users that will capture data: documentation, information and procedures for the capturing of data

Users responsible for controls: documentation, information and procedures to enable them to monitor the system controls and coordinate the distribution of reports

In a large organisation with a separate information processing department: all the information that is needed to operate the system daily as well as for future reference when the system has to be modified

Users who need to access the output: documentation, information and procedures to print reports and anything else they may require

Phase Six: Evaluation and Maintenance Systems have to be evaluated from time to time and this is especially true when a new system has been implemented. Once the system has been implemented, it is used for a couple of months and then evaluated. The purpose of this evaluation is to determine whether the system is meeting the requirements of the organisation or not. By this time, users will have identified errors in processing and their feedback will be used to make adjustments and enhancements to the system. This is called systems maintenance. This implies that you have to determine criteria against which to monitor and evaluate the system. As an example, we can look at a sales department and their interaction with the warehouse. Before a product is sold, the sales department of our imaginary organisation want to know the following:

Is there enough stock of the product on hand to sell immediately, or must an order be placed?

What is the recommended selling price?

How much discount can they give for bulk orders? This means that the warehouse must update inventory (stock) as soon as it is received, so that sales know how much of a product is available. Finance must update the selling prices as soon as the stock is received and entered into the system, so that sales know how much to sell for and how much bulk discount they can give to their customers. In order for the system to have updated information as soon as possible, the sales of products must be entered into the system immediately after the transaction, so that sales, warehouse and finance know how much stock is left and what the selling price of products were. Some of the criteria in our example could be:

The time it takes to enter new stock – does it happen as quickly as it should? Is the system updated immediately as required by sales and finance?

The new prices entered by finance: does it happen as quickly as it should? Is the system updated immediately?

When a product is sold, is the system updated immediately?

And, very important, if there is a user error can it be rectified immediately?

Can sales draw daily sales reports to show their accurate sales figures? Are the figures accurate?

Can finance draw daily sales figures to determine the profitability of the product?

Can inventory draw daily stock reports?

Are backups made regularly? There are many more criteria that can be added, depending on the requirements of your organisation. This evaluation is called a post implementation evaluation and at the end of the evaluation a report is prepared that indicates how well the system meets the requirements of the organisation and what changes and additions should be made to the system. We live in an ever-changing society, so chances are good that even the best-developed systems will require changes. The environment in which the


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organisation operates can change, government reporting regulations may change and even the requirements of the organisation may change. It is therefore important that every system be evaluated regularly. In order to find out if the system is being used effectively and is required by all the departments, you will have to request reports from the various departments on a regular basis, say every three to six months about:

How often they are using the system

Does the system still meet their needs, or do adjustments have to be made to the system?

Are they able to extract the information they require from the system?

Does the system make it easy for them to keep the information updated?

And any other relevant requirements

Roles found in an IS department

In a very large organisation, the Information Systems Department could be divided into the following departments:

STRUCTURE OF THE IS DEPARTMENT

Systems support Technicians In systems support, you will find technicians who have to solve hardware problems. They will help employees resolve queries about their computers, printers, modems, etc. Technicians that are part of an in-house technical staff, need to make sure that mission-critical activities continue when a failure occurs. Downtime is expensive for any organisation and must be kept to a minimum. When faced with multiple failures, they must determine which are most important from a business context. As an in-house technician will often find that his/her troubleshooting and repair responsibilities are set by organisational policy. For example, they may be responsible for minor repairs such as replacing failing keyboards or mice, while more serious problems will be referred to a third-party service provider.

IS Manager

Manager Operations

Systems support:

Technicians to provide hardware and software support

Help Desk or contact Centre Operators

Development manager

Project Team Development:

Database analyst

Systems Analyst

Programmers


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Help Desk Analyst The Help Desk Analyst performs the basic operations of the Help Desk, processing calls and support requests. As can be seen from the description of the goals of Help Desk and the process of a call, the competencies required of a Help Desk analyst scarcely even start with knowledge of the hardware or software being supported. To perform well in his/her role, an analyst must demonstrate the following competencies:

Customer service techniques (for example, telephone etiquette, dealing with problems, active listening, questioning, assertiveness, empathy and rapport)

Effective use of Help Desk technologies

Creative thinking, problem-solving and knowledge management

Time and process management and prioritization

Team working and leadership

Use of supported product(s) and related technologies

Project Team Development Programmer A programmer or software developer is someone who programs computers, that is, one who writes computer software. The term computer programmer can refer to a specialist in one area of computer programming or to a generalist who writes code for many kinds of software. One who practices or professes a formal approach to programming may also be known as a programmer analyst, software engineer, computer scientist, or software analyst. A programmer's primary computer language (Java, C++, etc.) is often prefixed to the above titles, and those who work in a web environment often prefix their titles with web. Those proficient in computer programming skills may become famous, though this regard is normally limited to software engineering circles. Many of the most notable programmers are often labelled hackers. Ada Lovelace is popularly credited as history's first programmer. She was the first to express an algorithm intended for implementation on a computer, Charles Babbage's analytical engine, in October 1842. Nature of the work Computer programmers write, test, and maintain the detailed instructions, called computer programs that computers must follow to perform their functions. Programmers also conceive, design, and test logical structures for solving problems by computer. Many technical innovations in programming — advanced computing technologies and sophisticated new languages and programming tools — have redefined the role of a programmer and elevated much of the programming work done today. Job titles and descriptions may vary, depending on the organization. Programmers work in many settings, including corporate information technology departments, big software companies, and small service firms. Many professional programmers also work for consulting companies at client' sites as contractors. Programmers' work varies widely depending on the type of business they are writing programs for. For example, the instructions involved in updating financial records are very different from those required to duplicate conditions on an aircraft for pilots training in a flight simulator. Although simple programs can be written in a few hours, programs that use complex mathematical formulas whose solutions can only be approximated or that draw data from many existing systems may require more than a year of work. In most cases, several programmers work together as a team under a senior programmer’s supervision. Programmers write programs according to the specifications determined primarily by more senior programmers and by systems analysts. After the design process is complete, it is the job of the programmer to convert that design into a logical series of instructions that the computer can follow. The programmer codes these instructions in one of many programming languages. Systems analyst A systems analyst is responsible for researching, planning and recommending software and system choices to meet an organization's business requirements. Systems analysts may act as a liaison between vendors and the organization they represent. They may be responsible for developing cost


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analyses, design considerations, and implementation time-lines. They may also be responsible for feasibility studies of a computer system before making recommendations to senior management. Systems design is the process or art of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements. One could see it as the application of systems theory to product development. There is some overlap and synergy with the disciplines of systems analysis, systems architecture and systems engineering. The work of the systems analyst would include:

Analysis — free from any cost or unrealistic constraints, this stage lets minds run wild as 'wonder

systems' can be thought-up, though all must incorporate everything asked for by the management in the Terms of Reference section;

Architectural design - creates a blueprint for the design with the necessary specifications for the

hardware, software, people and data resources

Design — designers will produce one or more 'models' of what they see a system eventually looking like, with ideas from the analysis section either used or discarded. A document will be produced with a description of the system, but nothing is specific — they might say 'touchscreen' or 'GUI operating system', but not mention any specific brands

Software concept - identifies and defines a need for the new system

System Specification — having generically decided on which software packages to use and hardware to incorporate, you now have to be very specific, choosing exact models, brands and suppliers for each software application and hardware device;

Implementation and Review — set-up and install the new system (including writing any custom (bespoke) code required), train staff to use it and then monitor how it operates for initial problems, and then regularly maintain thereafter. During this stage, any old system that was in-use will usually be discarded once the new one has proved it is reliable and as usable.

Database analyst Since the entire information system usually runs from a database, a database analyst has a very important role to play. This person(s) is involved in the entire system, from the planning stage (phase 1) to the point where the system is evaluated and maintained (phase 6). Evaluation and maintenance is an ongoing process and bigger organisations have database analysts that are permanently employed. This person would be responsible for ensuring that the database, where everyone in the organisation, gets their information from, functions properly every day and that employees have access to the information they require. The DBA would be responsible for resolving queries about the database, evaluating and maintaining the database and proposing improvements, if needed. The work of the database analyst would include:

Requirements analysis - analyses the information needs of the end users

Fact Finding and Recording — how is the current system used? Often questionnaires are used here, but also just monitoring (watching) the staff to see how they work is better, as people will often be reluctant to be entirely honest through embarrassment about the parts of the existing system they have trouble with and find difficult if merely asked;

Feasibility Study — asks whether the managements' concept of their desired new system is actually an achievable, realistic goal, in-terms of money, time and end result difference to the original system. Often, it may be decided to simply update an existing system, rather than to completely replace one;

System testing - evaluates the system's actual functionality in relation to expected or intended functionality.

STRUCTURE OF IS DEPARTMENTS

Outcome

Describe the structure of IS departments in business organisations Assessment criteria

The description identifies the position of an IS department via an organisation chart


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The description outlines the purpose of systems and operations areas within an IS department, and their interaction.

The description explains the interactions of systems and operations

Organisation Hierarchy An organisation is structured to show the various relationships between individuals and the different departments. The structure of the organisation also shows

the channels of reporting and communication

as well as the channels of command in the organisation: who makes the decisions and who reports to who.

Everyone needs to know what they have to do and who they have to report to. Each person is responsible for a particular function or job. Each individual is given a position with responsibilities, so that everyone knows who is doing what. This structure is sometimes called an organisational chart or organogram. The reason for having structure in a business is to ensure that there is a framework within which the various functions or departments can work effectively. The hierarchy of the organisation is also known as the chain of command: instructions are passed from top management to middle management to junior management to workers by following the hierarchy (chain of command) of the organisation.

Top Management Usually consists of the board of directors, the managing director and a few assistant general managers, who together make up the management committee. Top management normally concentrates more on the long term or strategic aspects and makes the most important decisions in the operation. They look at the marketplace, where the organisation is and where they want the organisation to go in the future. They do the strategic planning for the organisation. Strategic planning is usually long term, up to five years or longer. The board of directors are appointed from the ranks of the shareholders. Top management therefore spend

Most of their time on strategic planning,

A reasonable amount of time on management planning and

Little of their time on operations planning.

Middle Management Is responsible for the functions or departments of the organisation and each head of department must make sure that his function or department achieve the goals that are set by top management and that the company and department policies are applied. Middle management is mainly concerned with:

medium and short term planning: three months to a year, sometimes longer. This planning is called tactical planning.

organising, activating and controlling so that the work in their department gets done the way it should

and makes less important decisions following the guidelines set by top management. Middle management therefore spend:

Most of their time on management planning

A reasonable amount of time on operations planning

Some time on strategic planning


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First Line Management Is responsible for smaller sections in the business operation. A first line manager must implement the objectives of middle management and see to it that workers who are responsible to them perform satisfactorily. First line management is also a link between workers and higher levels of management. A first line manager focuses on short term goals: the day-to-day operation of his/her section, weekly and monthly planning so that the job gets done the way it should. This is called operational planning. Supervisors therefore spend:

Most of their time on operations planning

Some time on management planning

Normally no time on strategic planning, except to pass strategic information on to higher levels of management

Summary Top management will focus on the strategic matters, such as the equity partners, which tenders to

tender for and what strategy to be followed in the tender process.

Middle management will focus on the planning of the service, vehicles required, service specifications, budgets, and so on.

Junior management (supervisors) will focus on the detailed operational planning – the day-to-day operation of the bus or transport service in terms of the parameters provided by middle and top management.

Smaller Business When you have a small business, it will not be profitable to employ many managers and workers to do all the work. In smaller businesses, functions are grouped together where it may happen that the purchasing function, the sales function and the marketing and financial functions are all done by the owner of the business. In this case someone is employed only to do the administration, and/or production. The business owner can also outsource consultants to assist with the HR function as well

Top Management

Middle Management

Junior Management

Employees


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as certain functions of the financial department. How the small business owner sets up his business will vary according to the knowledge and skills that the business owner has. He/she will normally outsource expertise of the knowledge and skills that he lacks, or employ one or more employees to assist him in those areas where he lacks the expertise.

Organogram The following pages show examples of the hierarchy of a big, corporate organisation, a small one-man business and how the hierarchy and structure of a business changes as it grows bigger. The organogram shows top management, middle management, junior managers and workers, for the different sized businesses. This organogram also shows some functions or departments typically found in business:

Sales and marketing

Production

Stores and transport

Finance

Administration

Human Resources Other departments that can be found are:

Purchasing

Marketing

Sales

Quality control


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In a group draw an organogram of your organisation or the organisation of the college.

Systems theory

The evolution of specialization


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In the business world, a system consists of a number of interdependent parts that function as a whole and have a common purpose.

A business or organisation is seen as a united, purposeful system with interdependent parts, functions and departments.

The different parts, functions and departments of the business system are dependent on each other and are therefore mutually bound to each other.

The different parts of the business system are orderly arranged according to a plan. The different parts of a system are called subsystems. It is very important to note that subsystems are dependent on each other and that all the subsystems make up the whole business system. The systems theory was formed in order to make it possible to understand the working of an entity, such as a business. Of course, the business is a whole system. When you look at a business and its place in the environment, the business becomes a subsystem.

Open and closed systems Open systems interact with their environment all the time and they also depend on the environment for their success and existence. A business is an example of an open system. The business interacts with the outside environment on a daily basis –

This is where their raw products and goods come from,

Where finished products and services go,

Where their employees come from,

Where the business gets resources such as water and lights from A closed system does not interact with the environment and the environment has no influence on the system. Closed systems are usually mechanical and they have predetermined activities that will be performed, irrespective of the environment. A watch is an example of a closed system.


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Flow through a system Information, material and energy flow into the system, through the system and out of the system. This is true of all the subsystems in the business, the business system as a whole and the interaction between the business and the environment. The basic elements of a system are called the inputs, processing and outputs of the system. The outputs of one system become the inputs of another system. In that system, the inputs are processed and become outputs, which then become inputs of another system. Inputs Inputs are what is needed to do the work. In manufacturing, inputs are raw materials that you start with to make something else. For example, if you want to bake a cake you need flour, eggs, milk, effort and skill of a person baking the cake, and so on. If you want to build a house you need sand, cement, bricks, and so on. When you are processing information, the gathering and capturing of raw data would be inputs. If you are working on the payroll, inputs would be salary and wage levels, employee details, overtime hours worked, bonuses that have to be paid, etc. Processes Processes bring together all the inputs in such a way that it produces the desired product. All the steps, processes, procedures and modifications to the raw materials to produce the products and services of the business come into play here. Often businesses have unique processes that make their products special. In manufacturing, for example, all the inputs are brought together to make the parts. In our examples above, the inputs are used in the process of building a house or baking a cake. Outputs The result of what is done in the process/production phase is called an output. The finished product, the finished house and the finished cake are all outputs. Outputs can be divided into tangible and intangible outputs:

Finance

Human Resources

Production

Quality

Marketing

Sales


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Tangible outputs are things that you can see and touch, like a box of matches

Intangible outputs are services such as in hospitals, training, telecommunications

Feedback No process is complete without feedback. After a business has sold a product or provided a service, it must get feedback. Examples of feedback include whether the customers buy or do not buy the product/service, financial figures, staff turnover, sales, and so on. In our examples, the comments about the house – does it look nice, are people eager to stay in the house, etc., in the case of the cake – do people eat it and tell you how good it tastes, how nice it looks, etc.

Business systems and the business process As mentioned, any business or organisation is made up of subsystems. All these subsystems have inputs, processes, outputs and feedback. The output of one system becomes the input of another system. The purchasing department have to ensure that they purchase the correct raw materials for production department. Their output is the raw material used by production. The raw material becomes the input for production department, the process is manufacturing the product, and their output is the finished product. The finished product becomes the input for sales department who have to sell the product. The process is the actual selling of the product to customers and the output is the sold product. In this way, all the subsystems of the business are linked to each other.

FEEDBACK

INPUT

OUTPUT

PROCESS

FEEDBACK

INPUT PROCESS OUTPUT

INPUT PROCESS OUTPUT


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From the previous section, we can make the following deduction: in any IS department, there are two main functions:

Project Team development function (can also be called the systems function) which is

concerned with the analysing and developing of the information system and the related software

Operations function which is concerned with the practical application of the system, including the evaluating and maintaining of the system and the Help Desk.

These two functions are actually closely linked, where the outputs of one department will become the inputs of the other, and vice versa.

The database input clerk identifies a problem with the database. She will notify her manager, who will send a request to the development project team to investigate the matter.

The output from Operations – the query – becomes the input for the development department.

The development department will investigate the matter, make improvements to the software or hardware as is required, and advise operations of the improvement.

The output from development – the improvement- becomes the input for operations – they have to test the new procedures, and give feedback to development

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