IDM CC12803734

Acknowledgement

First f all I would like to thank my lecturer Miss. Wasana for giving great
knowledge about the Procedural programming subject and to her guidance
to complete the assignment.
Next I would like to thank my friends for their support.
Finally my thank goes to all the people who gave me their support in any
kind of ways to complete my assignment successfully.

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Contents
TASK 1..........................................................................................................................................................3
Task 1.1........................................................................................................................................................3
What is an Information System?..............................................................................................................3
The 3 Levels of management...............................................................................................................4
Administrative Level of Management..................................................................................................4
The main role of the top level management is summarized as follows:-.............................................4
The Middle Level Management...........................................................................................................5
The main tasks of middle level management are as follows:-..............................................................5
The Lower Level Management.............................................................................................................5
The activities of Lower Level Management..........................................................................................5
Finance................................................................................................................................................6
Why Information systems important for finance sector in a company?..............................................6
TASK 2..........................................................................................................................................................8
Task 2.1....................................................................................................................................................8
Types of Information Systems..............................................................................................................8
Transaction Processing Systems...........................................................................................................9
Batch Processing System......................................................................................................................9
Real-Time Processing System...............................................................................................................9
Time Sharing........................................................................................................................................9
Decision support system......................................................................................................................9
Benefits of DSS...................................................................................................................................10
Expert System....................................................................................................................................10
Information Report System................................................................................................................12
Introduction:-....................................................................................................................................12
Office Automation system.................................................................................................................12
Electronic Publishing..........................................................................................................................12
Electronic Communication.................................................................................................................12
Electronic Collaboration.....................................................................................................................13
Image Processing...............................................................................................................................13
Image Processing...............................................................................................................................13
Task 2.2..................................................................................................................................................14

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Enterprise resource planning system (ERP)........................................................................................14
M-Commerce.....................................................................................................................................14
TASK 3........................................................................................................................................................16
TASK 3.1.................................................................................................................................................17
Information storage and analysis.......................................................................................................17
Task 3.2..................................................................................................................................................18

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TASK 1

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Task 1.1

What is an Information System?

An information system is a system composed of people and computers that processes or interprets
information. An integrated set of components for collecting, storing, and processing data and for
delivering information, knowledge, and digital products. Business firms and other organizations rely on
information systems to carry out and manage their operations, interact with their customers and
suppliers, and compete in the marketplace. For instance, corporations use information systems to reach
their potential customers with targeted messages over the Web, to process financial accounts, and to
manage their human resources.

Information Systems help ease the process of companies. For example the following represents the main
sectors of an organization and how Information Systems help them:-

1. Finance
2. Accounts
3. Human resources
4. Stock control
5. Sales
6. Marketing
7. Research and development
8. Production
9. Distribution
10. Customer service
11. Administration

The 3 Levels of management

There are 3 main levels in management and they are:-

1. Administrative level of management.

2. Executive level of management.
3. Supervisory level of management.

Administrative Level of Management.

The Top Level Management consists of the Board of Directors (BOD) and the Chief Executive Officer
(CEO). The Chief Executive Officer is also called General Manager (GM) or Managing Director (MD) or
President. The Board of Directors are the representatives of the Shareholders, i.e. they are selected by
the Shareholders of the company. Similarly, the Chief Executive Officer is selected by the Board of
Directors of an organization.

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The main role of the top level management is summarized as follows:-
1. They mobilizes (assemble and bring together) available resources.
2. The top level management determines the objectives, policies and plans of the organization.
3. They spend more time in planning and organizing.
4. The top level management does mostly the work of thinking, planning and deciding. Therefore,
they are also called as the Administrators and the Brain of the organization.
5. They prepare long-term plans of the organization which are generally made for 5 to 20 years.
6. The top level management has maximum authority and responsibility. They are the top or final
authority in the organization. They are directly responsible to the Shareholders, Government and
the General Public. The success or failure of the organization largely depends on their efficiency
and decision making.
7. They require more conceptual skills and less technical Skills.

The Middle Level Management.

The Middle Level Management consists of the Departmental Heads (HOD), Branch Managers, and the
Junior Executives. The Departmental heads are Finance Managers, Purchase Managers, etc. The Branch
Managers are the head of a branch or local unit. The Junior Executives are Assistant Finance Managers,
Assistant Purchase Managers, etc. The Middle level Management is selected by the Top Level
Management.

The main tasks of middle level management are as follows:-

1. It co-ordinate the activities of all the departments.
2. It executes (implements) the policies and plans which are made by the top level management.
3. Middle level management gives recommendations (advice) to the top level management.
4. They also have to communicate with the top level Management and the lower level
management.
5. They spend more time in coordinating and communicating.
6. The middle Level Management has limited authority and responsibility. They are intermediary
between top and lower management. They are directly responsible to the chief executive officer
and board of directors.
7. They prepare short-term plans of their departments which are generally made for 1 to 5 years.
8. Require more managerial and technical skills and less conceptual skills.

The Lower Level Management.

The lower level management consists of the Foremen and the Supervisors. They are selected by the
middle level management. It is also called Operative / Supervisory level or First Line of Management.

The activities of Lower Level Management.

1. Lower level management directs the workers / employees.

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2. The lower level management informs the workers about the decisions which are taken by the
management. They also inform the management about the performance, difficulties, feelings,
demands, etc., of the workers.
3. They develops morale in the workers.
4. They spend more time in directing and controlling.
5. They have limited authority but important responsibility of getting the work done from the
workers. They regularly report and are directly responsible to the middle level management.
6. It maintains a link between workers and the middle level management.
7. The lower level managers make daily, weekly and monthly plans.
8. Along with the experience and basic management skills, they also require more technical and
communication skills.

The 3 levels of management can be shown clearly in the below diagram.

Finance.
Finance is a field that deals with the allocation of assets and liabilities over time under conditions of
certainty and uncertainty or we can simply say that Finance is all about money in a business. Finance
also applies and uses the theories of economics at some level. Finance can also be defined as the science
of money management.

Why Information systems important for finance sector in a company?

As described earlier finance is a major part in business due to that people end to use information system
and ease their work. For example the Toygo Company handles a big inflow and outflow of cash and
below are the reasons why information systems are required to them.

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Calculate Expense: - The Toygo has to calculate its expense in prior to make arrangements to have
enough fund to use when needed. If the calculation is inaccurate the company has to face a severe
problem when the production halts.

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TASK 2

Task 2.1
Types of Information Systems.
1. Transaction processing system.
2. Decision support system.
3. Expert system.
4. Information Reporting System.
5. Office Automation System.

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Transaction Processing Systems.

Transaction processing is a style of computing that divides work into individual, indivisible operations.
Simply saying Transaction Processing system can be explained as the system used in day to day
transaction activities. This is used mainly in Lower Level Management.

Transaction Processing System has 3 main types of processing method and they are: -
1. Batch Processing System.
2. Real-Time Processing System.
3. Time Sharing.

Batch Processing System.

Batch Processing means the execution of a collection of programs automatically without manual
intervention. Multiple transactions are collected and processed in the same time. The results of these
transactions are not available immediately, there are time delays from the time the transactions are
entered.

Real-Time Processing System.

Real-Time Processing System means that the transactions are entered as soon as they are done. Here we
don’t wait for a bulk to be collected. Due to the processes are done in a live and on the spot method the
data’s are very accurate and quick.

Time Sharing.
Time sharing means that the sharing of the computer system among the multiple users giving them the
illusion that they have all the things under control. The users might be on the same project but they are
under a few restrictions in the type of work each of the users are doing.

Decision support system.

Decision Support System is a very important system where it is a computer based Information System
which supports an organization in its decision taking activity. This mainly serves the Management,
Operation and Planning levels of an organization. This is a rapidly changing and updating process which
cannot be easily specified in advance. Decision Support System can either be of human, computerized or
a combination of both.

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Benefits of DSS
 Improves efficiency and speed of decision making activities.

 Increases the control, competitiveness and capability of futuristic decision making of the
organization.

 Facilitates interpersonal communication.

 Encourages learning or training.

 Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up
new evidences for an unusual decision.

 Helps automate managerial processes.

Components of a DSS

Following are the components of the Decision Support System:

Database Management System (DBMS): To solve a problem the necessary data may come from internal
or external database. In an organization, internal data are generated by a system such as TPS and MIS.
External data come from a variety of sources such as newspapers, online data services, databases
(financial, marketing, human resources).

1. Model Management system: It stores and accesses models that managers use to make
decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization. Forecasting demand of a product or service etc.

2. Support Tools: Support tools like online help; pull down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.

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Expert System

An Expert system is a system that imitate the decision making ability of an expert human being. These
are designed to help solve hard and complex problems by judging with knowledge. For example, there
are expert systems that can diagnose human illnesses, make financial forecasts, and schedule routes for
delivery vehicles. Some expert systems are designed to take the place of human experts, while others
are designed to aid them. This is used in both Strategic Level and Tactical Level.

There are many different types of expert systems and following are a few examples:-

1. Repair: - Expert systems that define repair strategies are also very common. As well as
diagnosing the problem they can suggest a plan for the repair of the item. The repair
plan typically contains a scheduling structure and some control structure to validate the
repair process. Such systems have been employed in the automotive repair field and
similar areas.

2. Instruction: - Instructional expert systems have been used for individualised training or
instruction in a particular field. The system presents material in an order determined by
its evaluation of the user’s ability and current knowledge and monitor’s the progress of
the student, altering the sequence depending on this progress.

3. Interpretation: - Interpretive expert systems have the ability to analyse data to

determine its significance or usefulness. The knowledge base often contains models of
real world situations which it compares to its data. These are often used in exploration
for mineral, gas and oil deposits as well as in surveillance, image analysis and speech
understanding.

4. Prediction: - Predictive expert systems are used as a method to “guess” at the possible
outcomes of observed situations, usually providing a probability factor. This is used often
in weather forecasting.

5. Design and Planning: - This allows experts to quickly develop solutions that save time.
These systems do not replace experts but act as a tool by performing tasks such as
costing, building design, material ordering and magazine design.

6. Monitoring and Control: - In certain applications expert systems can be designed to

monitor operations and control certain functions. These are particularly useful where
speed of decision making is vitally important, for example in the nuclear energy industry,
air traffic control and the stock market.

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7. Classification/Identification: - These systems help to classify the goals in the system by
the identification of various features (these can by physical or non-physical) For example
various types of animals are classified according to attributes such as habitat, feeding
information, colour, breeding information, relative size etc. These systems can be used
by bird watchers, fishing enthusiasts, animal rescue shelters (to match animals to
prospective owners) to name a few.

Information Report System

Introduction:-

Information Systems Analysis and Design. Complex process whereby computer based information systems are
developed and maintained Application Software Result of systems analysis and design. Designed to support specific
organizational functions or processes.

Also, Introduction Software engineering processes have been developed to assist in analysis and design.
Methodologies Comprehensive, multi-step approaches to systems development. Techniques Processes that are
followed to ensure that work is well thought-out, complete and comprehensible to others on the project team. Tools
Computer programs to assist in application of techniques to the analysis and design process

Office Automation system

Office automation systems (OAS) are configurations of networked computer hardware and software. A
variety of office automation systems are now applied to business and communication functions that
used to be performed manually or in multiple locations of a company, such as preparing written
communications and strategic planning. In addition, functions that once required coordinating the
expertise of outside specialists in typesetting, printing, or electronic recording can now be integrated
into the everyday work of an organization, saving both time and money.

Types of functions integrated by office automation systems include

(1) Electronic publishing.
(2) Electronic communication.
(3) Electronic collaboration.
(4) Image processing.
(5) Office management.

Electronic Publishing
Electronic publishing systems include word processing and desktop publishing. Word processing
software, (e.g., Microsoft Word, Corel Word-Perfect) allows users to create, edit, revise, store, and print
documents such as letters, memos, reports, and manuscripts. Desktop publishing software (e.g., Adobe
PageMaker, Corel VENTURA, and Microsoft Publisher) enables users to integrate text, images,

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photographs, and graphics to produce high-quality printable output. Desktop publishing software is used
on a microcomputer with a mouse, scanner, and printer to create professional-looking publications.
These may be newsletters, brochures, magazines, or books.

Electronic Communication
Electronic communication systems include electronic mail (e-mail), voice mail, facsimile (fax), and
desktop videoconferencing.

Electronic Collaboration
Electronic collaboration is made possible through electronic meeting and collaborative work systems and
teleconferencing. Electronic meeting and collaborative work systems allow teams of coworkers to use
networks of microcomputers to share information, update schedules and plans, and cooperate on
projects regardless of geographic distance. Special software called groupware is needed to allow two or
more people to edit or otherwise work on the same files simultaneously.

Image Processing
Image processing systems include electronic document management, presentation graphics, and
multimedia systems. Imaging systems convert text, drawings, and photographs into digital form that can
be stored in a computer system. This digital form can be manipulated, stored, printed, or sent via a
modem to another computer. Imaging systems may use scanners, digital cameras, video capture cards,
or advanced graphic computers. Companies use imaging systems for a variety of documents such as
insurance forms, medical records, dental records, and mortgage applications.

Presentation graphics software uses graphics and data from other software tools to create and display
presentations. The graphics include charts, bullet lists, text, sound, photos, animation, and video clips.
Examples of such software are Microsoft Power Point, Lotus Freelance Graphics, and SPC Harvard
Graphics.

Multimedia systems are technologies that integrate two or more types of media such as text, graphic,
sound, voice, full-motion video, or animation into a computer-based application. Multimedia is used for
electronic books and newspapers, video conferencing, imaging, presentations, and web sites.

Image Processing
Image processing systems include electronic document management, presentation graphics, and
multimedia systems. Imaging systems convert text, drawings, and photographs into digital form that can
be stored in a computer system. This digital form can be manipulated, stored, printed, or sent via a
modem to another computer. Imaging systems may use scanners, digital cameras, video capture cards,
or advanced graphic computers. Companies use imaging systems for a variety of documents such as
insurance forms, medical records, dental records, and mortgage applications.

Presentation graphics software uses graphics and data from other software tools to create and display
presentations. The graphics include charts, bullet lists, text, sound, photos, animation, and video clips.

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Examples of such software are Microsoft Power Point, Lotus Freelance Graphics, and SPC Harvard
Graphics.

Multimedia systems are technologies that integrate two or more types of media such as text, graphic,
sound, voice, full-motion video, or animation into a computer-based application. Multimedia is used for
electronic books and newspapers, video conferencing, imaging, presentations, and web sites.

Task 2.2
In modern business organizations, there are trends in using information systems applications in solving
business problems. Some of them are: -

 Enterprise resource planning system (ERP).

 M-Commerce.

Enterprise resource planning system (ERP).

Enterprise resource planning (ERP) is business process management software that allows an organization
to use a system of integrated applications to manage the business and automate many office functions
related to technology, services and human resources. ERP software integrates all facets of an operation,
including product planning, development, manufacturing, sales and marketing.

ERP software is considered an enterprise application as it is designed to be used by larger businesses and
often requires dedicated teams to customize and analyze the data and to handle upgrades and
deployment. In contrast, Small business ERP applications are lightweight business management software
solutions, customized for the business industry you work in.

M-Commerce
The use of wireless handheld devices such as cellular phones and laptops to conduct commercial
transactions online. Mobile commerce transactions continues to grow, and the term includes the
purchase and sale of a wide range of goods and services, online banking, bill payment, information
delivery and so on. Also known as m-commerce.

Therefore I suggest Enterprise Resource Planning for the complex nature of Toygo enterprise. The reason
for such decision is as described below under research done by NETSUITE.
http://www.netsuite.com/portal/products/netsuite/erp.shtml

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Benefits of ERP
 Accelerate the order-to cash process by 50%+.
 Slash financial close by over 50%.
 Drive better, faster decision-making with real-time data and reporting, and personalized
dashboards.
 Improve workforce productivity with anytime, anywhere access.
 Lower cost of ownership by eliminating upfront and ongoing IT expenditures, and delivering
automatic product upgrades.

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TASK 3

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TASK 3.1
There were several glitches in the manual systems which the Toygo Company has to face if they did not
imply the best information system into their business. Below mentioned points will guide how the
Information System has the upper hand than normal manual functions.

Information storage and analysis.

At the date of publication, many companies no longer manage their data and information manually with
registers and hard-copy formats. Through the adoption of information systems, companies can make use
of sophisticated and comprehensive databases that can contain all imaginable pieces of data about the
company. Information systems store, update and even analyze the information, which the company can
then use to pinpoint solutions to current or future problems. Furthermore, these systems can integrate
data from various sources, inside and outside the company, keeping the company up to date with
internal performance and external opportunities and threats.

Assist With Making Decisions.

The long-term success of a company depends upon the adequacy of its strategic plans. An organization’s
management team uses information systems to formulate strategic plans and make decisions for the
organization's longevity and prosperity. The business uses information systems to evaluate information
from all sources, including information from external references such as Reuters or Bloomberg, which
provide information on the general economy. This analysis of and comparison to market trends helps
organizations analyze the adequacy and quality of their strategic decisions.

Assist With Business Processes.

Information systems aid businesses in developing a larger number of value added-systems in the
company. For example, a company can integrate information systems with the manufacturing cycle to
ensure that the output it produces complies with the requirements of the various quality management
standards. Adoption of information systems simplifies business processes and removes unnecessary
activities. Information systems add controls to employee processes, ensuring that only users with the
applicable rights can perform certain tasks. Further, information systems eliminate repetitive tasks and
increase accuracy, allowing employees to concentrate on more high-level functions. Information systems
can also lead to better project planning and implementation through effective monitoring and
comparison against established criteria.

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Considerations.

Implementing information systems within an organization can prove to be costly. Implementation costs
include not only installation of the systems but also employee training sessions. In addition, employees
may see the adoption of information systems as an unwarranted change and, thus, may resist this
change. Resistance to change can hinder business operations and can cause employee turnover.
Companies should have leadership in place to assess the adequacy of the decision to have an
information system and to guide the company through the transition phase and weigh information
systems cost against the potential benefits.

Task 3.2

Alternatively, there are some other ways to improve and develop a business without Information System
too. There are 3 such main possible ways of solving the problems.

1. SWOT.
2. PEST.
3. Brainstorming.

SWOT

SWOT stands for Strength, Weaknesses, Opportunities and Threats. This is an effective analyze done by
the strategic level managers to identify and help them to make decisions. The SWOT analysis enables
companies to identify the positive and negative influencing factors inside and outside of a company or
organization. Besides businesses, other organizations, in areas such as community health and
development and education have found much use in its guiding principles. The key role of SWOT is to
help develop a full awareness of all factors that may affect strategic planning and decision making, a goal
that can be applied to most any aspect of industry.

1. Strength in SWOT means the internal resources and support the organization has. For example
the employees of the Toygo Company is a major strength of them. So the Toygo should know to
handle the employees well and balance them in a manner so that the employees provide their
fullest support in the production or service sector which will enhance the profit making ability of
the organization.

2. Weaknesses in SWOT means the internal probability of the firm which may result in a backfoot
of the business production or profit making ability. For example if Toygo couldn’t provide the
best sanitary requirements to the employees then this will provoke the employees to leave the
organization which will create an extra expense of training and also the extra cost of recruiting.
So the Toygo always should have to know what their weaknesses are.

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Internal factors

The first two letters in the acronym, Strengths and Weaknesses, refer to internal factors, which means
the resources and experience readily available to you. Examples of areas typically considered include:

 Financial resources, such as funding, sources of income and investment opportunities.

 Physical resources, such as your company’s location, facilities and equipment.
 Human resources, such as employees, volunteers and target audiences.
 Current processes, such as employee programs, department hierarchies and software systems.

3. Opportunities in SWOT means the possibility created by the external environment such as the
market to enhance the profit making ability of Toygo. For example we can say that if a
competitor of Toygo has closed down his business which will result the existing customers of that
firm diverting to Toygo Company resulting in a higher sales and profit. Due to these sensitive
reasons the Toygo has to always have an eye on the opportunities which can be created in the
market.

4. Threat in SWOT means the possibility of the business to reduce its profit making ability due to
the situations aroused in the external environment. For example we can say that due to political
reason the government has decided to stop importing goods from the country from which Toygo
buys raw materials, this indirectly will affect the profit very badly to the Toygo. So it is
compulsory that Toygo has a well maintained records and updated details about these.

External factors

The last two acronyms in the SWOT, Opportunities and Threats refers about external factors. Every
company, organization and individual is influenced and affected by external forces. Whether connected
directly or indirectly to an opportunity or threat, each of these factors is important to take note of and
document. External factors typically reference things you or your company does not control, such as:

 Market trends, such as new products and technology or shifts in audience needs.
 Economic trends, such as local, national and international financial trends.
 Funding, such as donations, legislature and other foundations.
 Demographics, such as a target audience’s age, race, gender and culture.

PEST

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PEST is an acronym for Political, Economic, Social and Technological. This analysis is used to assess these
four external factors in relation to your business situation.

Basically, a PEST analysis helps you determine how these factors will affect the performance and
activities of your business in the long-term. It is often used in collaboration with other analytical business
tools like the SWOT analysis etc. to give a clear understanding of a situation and related internal and
external factors.

Political – Here government regulations and legal factors are assessed in terms of their ability to affect
the business environment and trade markets. The main issues addressed in this section include political
stability, tax guidelines, trade regulations, safety regulations, and employment laws.

Economic – Through this factor, businesses examine the economic issues that are bound to have an
impact on the company. This would include factors like inflation, interest rates, economic growth, the
unemployment rate and policies, and the business cycle followed in the country.

Social – With the social factor, a business can analyze the socio-economic environment of its market via
elements like customer demographics, cultural limitations, lifestyle attitude, and education. With these,
a business can understand how consumer needs are shaped and what brings them to the market for a
purchase.

Technological – How technology can either positively or negatively impact the introduction of a product
or service into a marketplace is assessed here. These factors include technological advancements,
lifecycle of technologies, the role of the Internet, and the spending on technology research by the
government.

Brainstorming.

Brainstorming is the name given to a situation when a group of people meet to generate new
ideas around a specific area of interest. Using rules which remove inhibitions, people are able to
think more freely and move into new areas of thought and so create numerous new ideas and
solutions. The participants shout out ideas as they occur to them and then build on the ideas
raised by others. All the ideas are noted down and are not criticized. Only when the
brainstorming session is over are the ideas evaluated.

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