Unit 02

1. Unit 02 Information Systems LO4 – Be able to use IT tools to produce Management Information

2. Assessment Criteria P1 – Explain how organisations use Information P2 – Discuss the Characteristics of Good Information M1– Assess the improvements which can be made to an identified organisation’s Business Information Systems P3 - Explain the issues related to the use of information D1 – Compare Legal, Ethical and Operational issues that may affect organisations. P4– Describe the features and functions of Information Systems P5– Identify the information systems used in a specified organisation M2 – Illustrate the input and output if Information within a specified functional areas of an organisation D2 – Analyse the legal and ethical implications of the illustrated inputs and outputs. P6– Select Information to support a business decision-making process P7 – Use IT tools to produce management information. M3 – Explain the value of a management information system.

3. LO4 – Assessment Criteria • P6 - Evidence could be in the form of a spreadsheet containing information taken from business scenario the learners have worked with. The learner must illustrate their ability to select information accurately to support the decision making process for a specified organisation. The learner must explain their choices for the types of information selected. • P7 - Evidence could be in the form of graphs or charts to illustrate their use of IT tools but the learner must justify their presentation format. Graphs or charts or the presentation format must show the detail of the data along with clear labelling of content and the purpose of the produced information should be clearly explained. Learners must check to ensure the data is valid and accurate. • M3 - For the merit criterion M3 which could be an extension of P7, learners must explain the value of the management tool they selected and the business decisions based on it which may follow.

4. LO4 - Assessment Scenario Be able to use IT tools to produce management information • The tutor should ensure that learners are aware of a range of IT tools that they can use to produce management information. They should understand the potential sources of information and the reliability of that information source. An example that learners could consider would be an organisation with a product which sells well, or a product that cannot sell at all and this must be part of the company’s contingency plans and decision making process. The company must consider faulty products which need to be returned. This can be illustrated in a range of formats but a simple spreadsheet displaying a variety of products which have sold, returned or stock that is clearly not selling is a very visual example for learners. The tutor should discuss with the learners what decisions they would make to help to keep the business profitable. • Using the data discussed as part of their investigation into the decision making process learners could create graphs or charts or presentations to illustrate and back up good decision making for the business. They should be taught to check their information and sources to ensure the data they use is valid and accurate. In class discussion, explore the usefulness of such a management tool and the outcomes which may follow.

5. P6.1 – Application of Information There are several different types of software applications available to usein order to collect and manage information. Each of these has their purpose and each has their inner tools that can be used to portray that information to the client or customer. These are the widely known and widely used applications that have become common forms of tools that we use in our day, common to the point where we name the company as the tool rather than the application, Word instead of Word Processing, Excel instead of Spreadsheet etc. Task 1 – P6.1 – Explain the different types of IT Tools that can be used, with examples of use. • Using a range of IT tool(s), create, annotate and evaluate the techniques used for: • Apps • Communication Software • Computer-Aided Manufacturing Software • Data Management Software • Desktop Publishing Software • Graphical Software • Multimedia Software • Spreadsheet Software • Word Processor • Utility Software • Others This can be done in the form of a presentation or report and must highlight the applications data management and display in a range of examples.

6. P6.2 – Analysis of Information There are several different types of higher level applications available for companies to use in order to analyse data and prepare information results. Each of these has their purpose and each has their advantages that makes them useful to portray that information to the client or customer. • Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organise, streamline with computer interfaces or automatic recognition, and link together sales, marketing, customer service, and technical support. Basically it does all the management of information under one package. • Marketing - CRM systems can track and measure campaigns over different media, such as email, search, social media, telephone and direct mail. These systems track clicks, responses, leads and deals. • Customer service and support - CRM systems can be used to create, assign and manage customers requests, such as call centre software which helps direct customers to agents. CRM software can also be used to identify and reward loyal customers over a period of time. • Appointments - CRM systems can automatically suggest suitable appointment times to customers via e-mail or web browsers. These can then be synchronised with the representative or agent's calendar • Social media - CRM often makes use of social media to build customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate with customers sharing opinions and experiences with a company, products and services.

7. P6.2 – Analysis of Information • Enterprise resource planning (ERP) is business management software that a company uses to manage business processes, including: • Product planning and development • Manufacturing • Marketing and sales • Inventory management • Shipping • ERP provides an single package live view of core business processes, using common databases maintained by a database management system. ERP systems track business resources such as cash, raw materials, production capacity etc. and the status of business functions: orders, purchase orders, and payroll. The applications that make up the system share data across the various departments such as manufacturing, purchasing, sales, accounting, etc. that entered the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders. • Knowledge Management System refers to a (generally IT based) system for managing knowledge in organizations for supporting creation, capture, storage and dissemination of information. • The idea of a KM system is to enable employees to have ready access to the organisation's databases, sources of information, and solutions. For example a typical claim justifying the creation of a KM system might run something like this: an engineer could know the metallurgical composition of an alloy that reduces sound in gear systems. Sharing this information organisation wide can lead to more effective engine design and it could also lead to ideas for new or improved equipment.

8. P6.2 – Analysis of Information • Artificial intelligence and expert systems are a computer system that emulates the decision-making ability of a human expert. Expert systems are designed to solve complex problems by reasoning about knowledge, like an expert, and not by following the procedure of a developer. The first expert systems were created in the 1970s and then proliferated in the 1980s. • An expert system has a unique structure, different from traditional computer programming. It is divided into two parts, one fixed, independent of the expert system: the inference engine, and one variable: the knowledge base. To run an expert system, the engine reasons about the knowledge base like a human. Benefits include: • Quick availability and opportunity to program itself - As the rule base is in everyday language, expert system can be written much faster than a conventional program. • Ability to exploit a considerable amount of knowledge - The expert system uses a rule base, unlike conventional programs, which means that the volume of knowledge to program is not a major concern. • Reliability and Consistency - The reliability of an expert system is the same as the reliability of a database, i.e. good, higher than that of a classical program. Expert systems are apt to consistently make the same decisions. If the knowledge base is set up with no ambiguity or subjectivity, then the expert system (with the same input criteria) will always deliver the same output. This is useful for expert systems used to make decisions that need to have no bias • Scalability - Evolving an expert system is to add, modify or delete rules. Since the rules are written in plain language, it is easy to identify those to be removed or modified. • Pedagogy - The engines that are run by a true logic are able to explain to the user in plain language why they ask a question and how they arrived at each deduction. In doing so, they show knowledge of the expert contained in the expert system. • Preservation and improvement of knowledge - Valuable knowledge can disappear with the death, resignation or retirement of an expert. Recorded in an expert system, it becomes eternal. To develop an expert system is to interview an expert and make the system aware of their knowledge. In doing so, it reflects and enhances it.

9. P6.2 – Analysis of Information • Predictive modelling and forecasting is a process used in predictive analytics to create a statistical model of future behaviour using a process of data mining in order to forecast probabilities and trends. A predictive model is made up of a number of predictors, which are variable factors that are likely to influence future behaviour or results. In marketing, for example, a customer's gender, age, and purchase history might predict the likelihood of a future sale. • In predictive modelling, data is collected for the relevant predictors, a statistical model is formulated, predictions are made and the model is validated (or revised) as additional data becomes available. The model may employ a simple linear equation or a complex neural network, mapped out by sophisticated software. • Predictive modelling is used widely in information technology. In spam filtering systems, for example, predictive modelling is sometimes used to identify the probability that a given message is spam. Other applications of predictive modelling include customer relationship management, capacity planning, change management, disaster recovery, security management, engineering, meteorology and city planning. Task 2 – P6.2 –Explain the different types of higher levels of IT Tools that can be used to analyse information with examples of use.

10. P6.3 – Preparation of Information • Cube Systems is an IT company with a range of Mobile Data Collecting devices on the market. After a period of years their hand scanners for Optical Character recognition have not become cost effective to continue producing and a decision has been made to calculate the cost of discontinuing production. The product that cannot sell at all and this must be part of the company’s contingency plans and decision making process. • In doing so, the company must consider what will happen to faulty products which need to be returned or replaced. This eventual analysis of sales against discontinuing can be illustrated in a range of formats but a simple Spreadsheet displaying a variety of products which have sold against Scanner sales, returned or stock that is clearly not selling is a very visual method of proposing the discontinuation to management. The proposal needs to highlight what decisions they would make to help to keep the business profitable if it changes the current product range. • Task 3 – P6.3 - Using a range of IT tool(s) to evidence the following purposes: (create, annotate and evaluate the techniques used) • An article for the company newsletter that focuses on the discontinuation of older technologies to a make way for newer technologies already embraced by the industry. (DTP) • A memo to the director, regarding an emergency boardroom meeting to discuss the breakdown of the results of the predictive Modelling Program on company sales and the impact of continuing production of loss leaders. (Word processing software) • A chart/graph to represent the sales of the product/services offered by your business (Spreadsheet software) Information can be created from the Database. • Find a list of alternative scanning technologies on the market and future developments that might assist the company in making a decision on production and R&D (Internet) • A searchable list of recent and prior product sales in report and query form (Database) • Present this information as a presentation using the gathered information and forms above. (Powerpoint)

11. P6.4 – Prediction of Solutions • The reliability of information from external sources is vital for the correct decisions within a company to be made. The aim of trustworthiness in a qualitative inquiry is to support the argument that the inquiry’s findings are “worth paying attention to”. In any qualitative research project, four issues of trustworthiness demand attention: credibility, transferability, dependability, and confirmability. • Credibilityis an evaluation of whether or not the research findings represent a “credible” conceptual interpretation of the data drawn from the participants’ original data. • Transferabilityis the degree to which the findings of research can apply or transfer beyond the bounds of the project. • Dependabilityis an assessment of the quality of the integrated processes of data collection, data analysis, and theory generation. • Confirmabilityis a measure of how well the inquiry’s findings are supported by the data collected. • The trustworthiness and validity of a qualitative study can be increased by maintaining high credibility and objectivity. We all know that Wikipedia is not trustworthy but we still go there, it is credible, it looks true but this is not a guarantee. “It’s on the Internet so it must be true” is the common saying • Task 4 – P6.3 - Using domain tools, evidence and discuss the reliability of your sources use to prepare and present selected information. • Task 5 - M3.1 - Explain the value of a management information system that could be used to predict future results. (CRM, ERP, KMS, AI Expert System or Predictive Modelling)

12. Task List • Task 1 – P6.1 – Explain the different types of IT Tools that can be used, with examples of use. • Task 2 – P6.2 – Explain the different types of higher levels of IT Tools that can be used to analyse information with examples of use. • Task 3 – P6.3 - Using a range of IT tool(s) to evidence the following purposes: (create, annotate and evaluate the techniques used) • Task 4 – P6.3 - Using domain tools, evidence and discuss the reliability of your sources use to prepare and present selected information. • Task 5 - M3.1 - Explain the value of a management information system that could be used to predict future results. (CRM, ERP, KMS, AI Expert System or Predictive Modelling)