Learning Outcomes Assessed.
1. Use and evaluate a variety of information technology
2. Identify the factors to be considered in the selection and management of information systems
3. Explore the implications of legislation in relation to information technology and information systems
4. Analyse the impact of information technology developments
* This board will take place in the summer. We can release unofficial marks only when papers have been properly moderated.
· Subject to ratification at London South Bank University Progress Board.
The goal of any business is to obtain the maximum benefits possible. To get this, the company must have a correct computer culture, this will allow and provide the necessary conditions for information systems help to achieve the planned objectives.
DEFINITION OF INFORMATION SYSTEM
An information system consists of a process that provides the information needed by organisations to support their activities in achieving the objectives of their business. They help with analysis, visualisation and product creation.
For example the information system of a Bar consists of all the data that the staff input into the till. The till registers all the drinks and food that is sold. At the end of the day (week, month, etc.) the manager can access the information through a report.
This is useful to make an analysis of the business, such as the preferences of the customers or what stock is required. It is also determines the prices of the products (supply and demand).
Another example of an information system is found in a Hospital. When a patient uses the service for the first time the administration creates a record of his/her details. The hospital keeps all history of the patients in the system.
Another information system is Oyster Card. Travellers use the card and the journeys are registered. The travellers can check the places where they have been, cost and the details of the routes, etc. This enables the company to improve and give better service.
MAJOR COMPONENTS OF AN INFORMATION SYSTEM
The major components of an information system are:
- Hardware is a term for all of the physical parts of an information system. It refers to objects that you can actually touch, like disks, disk drives, display screens, keyboards, printers, boards, and chips. The primary functions are input, processing, storage, and output.
- Software is the various kinds of programs used to operate computers and related devices. Includes for example, word processors, spreadsheets, database management systems etc. basically it is anything that can be stored electronically.
The main function is to mediate between the user and the information stored.
- People are probably the most important part of an information system; they use the system to input data.
- Telecommunications are the communication of information electronically, usually over long distances. Today much of the telecommunications transmission takes the form of digital data. E.g. Internet, e-mail to communicate globally.
- Database can be defined as a collection of related information that is grouped or structured.
From the standpoint of the computer, the database is a system consisting of a set of data stored on disks that allow direct access to them and a set of programs that manipulate that data set.
- Procedures are the management of the information (manipulation and transformation) for the organization.
HOW THE INFORMATION SYSTEM SUPPORT AN ORGANISATION
The Information System helps the company to achieve its goals at different levels. It will help the executive level in the planning of the company; the managerial level to control the activity of the company and the operational level to carry out their tasks daily.
The choice of the suitable information systems will result in operational excellence within the company; a good service to customers, the improvement decision making, greater effectiveness and productivity and cost reduction. This will differ from competitors.
TASK 2. 1
INFORMATION SYSTEMS SUITABLE FOR SNAPPY HAPPY CATERING LTD.
After analysing the current situation of the company "Snappy Happy Catering”, two information systems will be recommended that will help improve and achieve their goals.
These information systems are:
- Transaction processing systems (TPS)
Electronic commerce is the way to carry out such changes in the company, allowing it to be more efficient and flexible in their internal operations in order to work more closely with its suppliers and become more aware of the needs and expectations of its customers. The implementation of e-commerce will expand the offering (this will help to branch out), interactivity and immediacy of the purchase (it will improve the delivery service) guarantees the availability of 24 hours a day. Also it lets you select the best suppliers regardless of their geographical location; in that way it can be sold to a global market. It is an alternative cost reduction and an essential tool in business performance; important part in the Internet world, which knows no borders and is transforming the world.
The E-commerce uses a Web site on which is installed an online store. The online store besides offering information about the services, provides a way to select the products to purchase, the delivery method, payment method, and other information necessary to make the sale. The transaction is completed by a system for online payments, order confirmation and communication between seller and buyer.
This system not only enables customers to order on-line but Happy Snappy can make orders on-line for products and services and use the Internet to communicate with customers, suppliers and between head-office and the various facilities.
To improve aspects such as managing perishable foods, improving the stock control, accurate purchasing or to improve invoicing procedures or staffing payment, e-commerce offers Enterprise Resource Planning (ERP). These are information systems that integrate computer applications to manage all departments and functions of a business: accounting, finance, production, logistics, human resources, inventory, asset management, purchases and payments, sales and charges, banks, portfolio, project management, etc.
The other chosen information system is Transaction Processing Systems ("TPS") because it is designed to process routine transactions efficiently and accurately. This will help us to achieve the Snappy Happy's goals.
These are the different areas the TPS systems can support Snappy Happy's aims and how different programs can do it:
- Sales order processing: with a suitable program is possible to have a precise control of the sales orders and obtaining valuable reports.
- Purchase order processing: it may do orders on-line of food, uniforms, stationery, etc.The orders arrive at the receiver immediately thus saving time.
- Receiving and distribution: with the new programs the orders are done by Internet, consequently the times of receipt and delivery will diminish.
- Payroll (wages and salaries): There are programs that provide full-service solution to manage the payroll.
- Accounting (financial accounting and management accounting): programs would be used to realice the accounting. It will be fully updated and it will offer reports with the necessary information to make decisions.
- Production planning. The programs offer a great variety of detailed reports that help managers to make planning.
- Production control. The programs offer many benefits in this area because there is a complete visibility of inventory.
- Inventory (or stock) control: using a program to control stock levels.
TASK 2. 2
BENEFITS OF ELECTRONIC COMMERCE
· For Companies
ü Eliminate the geographical limits and of time
ü Available 24 hours a day, 7 days a week all year.
ü It makes the labour of the business simpler with its clients.
ü Globalisation and market access of millions of potential customers.
Electronic Data Interchange (EDI) is used for E-commerce Business to Business (B2B). The EDI is to transmit electronic business documents, administrative and accounting (orders, invoices, etc.) Between applications in a standardized format so that these documents can be processed between firms without manual intervention. Because of this we also have:
ü Streamline business operations.
ü Reduction of paperwork.
Customer Relationship Management (CRM) is also used in E-commerce. These applications facilitate the management of customer information, allow a better relationship and maintain contact with them and implement strategies and marketing campaigns.
ü Reduction of real cost to do market research.
ü Proximity to customers and greater interactivity and personalisation of the offer.
ü Implement tactics in selling products to create loyalty in customers.
ü Reduction of prices for the low cost of the Internet use in comparison with other means of promotion, which implies greater competitiveness.
· For customers
ü It reduces costs and prices.
ü Immediacy to place orders.
ü Immediate information on any product and availability of access to information at the moment requires it.
LIMITATIONS OF ELECTRONIC COMMERCE
ü Ignorance of the company. It causes distrust of this company.
ü Privacy and security. Most users do not trust the Web as a pay channel.
ü Language. Sometimes the websites we visit are in another language different from ours
BENEFITS OF TRANSACTION PROCESSING SYSTEMS
ü Large amount of data processed for routine business activities (payroll,
inventory, accounting, etc..). It makes easier the way to have control of the stock and the different department.
ü Reduces the time of the activity.
ü Monitor and collect previous information.
ü It facilitates that the users realise requests of files or databases to the application that they are using.
ü Reduce Costs (control over resources, speed).
ü Create interfaces between different systems (Payroll-Accounting-Accounts Sales
LIMITATIONS OF TRANSACTION PROCESSING SYSTEMS
ü As any system is not 100% reliable.
ü Need a robust security scheme.
HARDWARE AND SOFTWARE REQUIRED
Hardware required for E-commerce and Transaction Processing Systems:
- Computers: Personal Computers and Servers.
- Storage: Hard drive, External hard drive, Universal Serial Bus (USB).
- Laser Printer
Software recommended for both systems:
- Operating system: Window XP
- Office suite: Latest version of Microsoft office, where we will find:
o Word: word processor.
o Excel: spreadsheet application.
o Access: database program.
o Outlook: program to communicate via email and do group work.
o PowerPoint: used for presentation.
- Web browser: Mozilla Firefox
- Antivirus: MacAfee
- Back up
LIST OF REPORTS THAT THE SYSTEMS CAN OFFER:
- Daily sales journal;
- Customers invoices;
- Stock report.
- Sales reports on daily, weekly and monthly.
- Daily purchases;
- Supplier orders
- Wages or salary statement;
- Payroll report of permanent staff;
- Payrolls report for employees at an event.
- Report of the budget request (potential clients).
- Report accounts payable and receivable.
The legislation to follow in introducing information systems are:
- Data Protection Act 1998
- European Parliament Directive on Privacy and Electronic Communication 2003
- Freedom of Information Act 2000.
The most important is the Data Protection Act 1998 it has three levels of offence:
• Unauthorised Access
• Unauthorised access with intent to commit another offence
• Unauthorised modification of data (writing viruses come under this level).
The company has to register and enforce these laws. Many personal or business information is provided in our relationships on the Internet or in doing business. We must establish and enforce these laws to provide data protection and the right of individuals.
The company must make sure employees understand and practice that legislation. The penalties for level 1 are called summary offence, ranging from 6 months' imprisonment and/or a maximum fine of £5000. The penalties for Level 2 and 3 are carry jail terms of up to 5 years and unlimited fines.
These are the applications that we use to keep safe our computer system:
Antivirus: Application or group of applications dedicated to the prevention, search, detection and elimination of malignant programs in computer systems.
Backup: They are used to have one or more copies of information considered important and so they can recover in case of loss master copy.
Firewall: It is a device used to protect a computer or an internal network from unauthorized access attempts from the Internet, denying transmissions and monitoring all network ports.
- Ensure that data, files and programs are used correctly.
- Restrict access to people who are not of the company or should not have access to certain documents. Using passwords.
- We must be cautious about the intrusion of Hackers and Crackers: people with advanced knowledge of computers and they invade computer systems that are not allowed.
- Continually update the passwords of access.
- Do not to accede to web sites with unknown links.
- Take precautions at the moment of downloading files.
The new information systems established, as we have explained previously, facilitate the tasks that previously required more time and more personal. This results in an impact on job roles:
- The decrease of the number of positions jobs in areas such as administration, marketing, human resources, etc.
- An increase in the computing and related technology development.
This will involve the workers' dismissal, mostly the older ones because they are more technologically backward and hiring people who are specialized in computers and advanced technology.
The company must ensure that workers know how to use the new systems to be able to extract the major performance from them and reach the goals of the company.
The recommended training package to train the staff in the new technology is "Computer aided instruction". This involves the transmission of content and practice for a person to a group aided by a computer.
It's the best way to describe the new systems because it offers a combination of visual representation and natural language which allows the interaction between the student and the computer and thus enables the staff to explore, conjecture and learn from their mistakes.
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