Management information systems revision question and answer

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

a) Organisation information systems are categorised under:

i) Transaction Processing System (TPS)
ii) Management Information Systems (MIS)
iii) Decision Support System (DSS)
iv) Executive Information System (EIS)
v) Expert Systems (ES)

Required:
Suggest one application of each of the systems types listed above for each of the following functional areas of business:
• Sales and marketing.
• Finance
b) What impact might end-user computing have on the organisation of information technology functions?
c) Suggest examples of activities end-users might not be responsible for.
ANSWER
a) Organisation information systems

Application of each system for the following functional areas of business

i) Sales and marketing

• Transaction Processing Systems (TPS) – Recording cash sales.
• Management Information System – Production of exceptional report, for example, when sales go below the normal average.
• Decision Support System – Designing a marketing strategy. For example, through advertising, product differentiation etc.
• Execute Information Systems – Determining competitor‘s strategies.
• Expert systems – solving marketing problems for example the most feasible marketing method.
ii) Finance

• Transaction Processing Systems – solutions to short-term sources of finance for example, bank overdraft, or short-term loans.
• Management Information Systems (MIS) – Provision of information regarding the various sources of finance available to a business. These may include commercial papers, debentures corporate bonds etc.
• Decision Support System – evaluation of the cheapest sources of finance so as to undertake a given project.
• Executive Information System – Evaluation of the date of return of a project and measuring it against the company‘s cost of capital.
• Expert Systems – Solution to financing problems and projects selection. For example, the system will determine projects with the highest present values.
b) Impact of end user computing on an organisation‘s information technology function.

End user computing refers to direct hands on use of computers users and not indirect use through computer professionals. It presupposes that computer users who are not specialists solve their day-to-day problems without going through computer experts.

The following are the impacts that end user computing has resulted in the information technology functions:

1. End user computing has resulted to overwhelming requests for assistance in the information technology department thus making the information technology staff to divert their attention from more important aspects thus delimiting its effectiveness.
2. It leads to mismatching of user problems and computing alternatives for system development. For example, personal computing and mainframe packages.
3. End user computing has also led to lack of concern about equipment security and this has cost dearly to the information technology functions.
4. Since end user computing is piece meal in nature, the information technology function cannot adequately maintain user-developed systems.
5. End user computing results to systems administration difficulties since the information technology functions cannot adequately control the use of facilities users.
6. There is also the problem of lack of integration between the information technology management of personal computing and mainframe end user computing. Thus, end user computing may not be meaningful to the development of information technology.

c) Examples of activities end users might not be responsible for

1) Computer systems security design and controls
2) Systems development as well as program development
3) Provision of training to fellow end users.
4) Advising the company where new IT projects might be beneficial.
5) Systems maintenance.

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