Mics Total

Information Systems Management 27/06/2010
Systems, Information & Management
Trevor M Sharpe MA
 Reading list
 Course plan
 Assignment
 Lectures
 Examination
© Trevor Sharpe 15/06/2010 2
 What is the difference between data,

information and knowledge?
 What information systems are available to
organisations?
 How are these information systems
integrated into the organisation?
© Trevor Sharpe 1
 A strategic approach
 Based on business needs
 Based on information needs
 Ignore (?) technology
A system to convert data from internal and

external sources into information and to
communicate that information, in an
appropriate form, to managers at all levels in
all functions to enable them to make timely
and effective decisions for planning, directing
and controlling the activities for which they
are responsible.
T Lucey – Management Information Systems
The acquisition, processing, storage and

dissemination of vocal, pictorial, textual and
numeric information by a micro-electronics'
based combination of computing and
telecommunications.
T Lucey – Management Information Systems
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Strategic
Tactical
Operational
Transaction Processing
Characteristics of Information Operational Tactical Strategic
Source Largely internal ………… External
Scope Well-defined, ………… Very wide

narrow
Level of aggregation Very detailed ………… Aggregate
Time horizon Historical ………… Future
Currency Very current ………… Quite old
Required accuracy High ………… Quite low
Frequency of use Very Frequent ………… Infrequent
 Operational systems
◦ Transaction Processing Systems
◦ Office Automation Systems
◦ Knowledge Work Systems
 Tactical Systems
◦ Decision Support Systems
◦ Executive Support Systems
© Trevor Sharpe 3
Computer systems at any level of the

organisation that change goals, operations,
products, services or environmental
relationships to help the organisation gain a
competitive advantage.
Laudon & Laudon
Information = Data
+
Relevance
+
Purpose
Information + Insight = Understanding
Understanding + Communication = Intelligence
Intelligence + Action = Effectiveness
Information + Accessibility = Knowledge
© Trevor Sharpe 4
A collection of elements or components that

are organized for a common purpose
 A computer system consists of hardware components
that have been carefully chosen so that they work well
together and software components or programs that
run in the computer.
 A filing system is a group of files organized with a plan
(for example, alphabetical by customer)
Paul Bocij et al
An assembly of parts where:

• The parts or components are connected together in an
organised way
• The parts or components are affected by being in the
system (and are changed by leaving it)
• The assembly does something
• The assembly has been identified by a person as being
of special interest
The Open University
No exchanges
with environment
© Trevor Sharpe 5
 Predictable systems where the output can

be predicted from the input.
 For example: a calculator, where the

outcome of a calculation can be predicted
with complete accuracy.
 Deterministic systems are sometimes called

Mechanistic systems
ENVIRONMENT ENVIRONMENT
Known Subject to Known and Predictable

Unknown Inputs and
Unknown Environmental Unpredictable
Disturbances
Disturbance
Outputs
Inputs
 Where some conditions of the system can

be predicted from the previous state but
only in terms of probable behaviour and
there is always a certain degree of error
attached to what the system will do.
 For example: in an inventory control system

the average demand or the average stock
can be predicted, but the exact value of
these factors cannot be predicted.
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 Systems that have the ability to monitor and

regulate their own performance or behaviour
 What is the most adaptive system you know?
 Systems have:
◦ Holism
 the whole is greater than the sum of the parts
◦ Entropy
 levels of disorder
◦ Equifinality
 more than one way to put the system together
 Ashby‟s Law of Requisite Variety
◦ systems must be flexible
 Hard vs. Soft Systems
◦ hard systems have explicit objectives. Soft systems are
unpredictable
Specific Social General Social

Environment Environment
◦ Customers & ◦ Social Cultural &
Marketing Demographic
◦ Finance Factors
◦ Technology ◦ International
◦ Competition Influences
◦ Personnel & Unions ◦ Green Issues
◦ Suppliers & ◦ Legal Influences
Materials ◦ Government
◦ Economic
Framework
© Trevor Sharpe 7
 Hardware
 Software
 Stored Data
 Personnel
 Procedures
Planning External
Requirements Environmental
Influences
Decision
Organisation Making
Structure Requirements
Management
Information
Primary
system
Management Function
Style & Size of
Organisation
Use of Legal Control

Information Requirements Structures
Technology
T Lucey
 Determining the value of information

systems
 Understanding the behavioural background
to information systems
 Selecting the correct information
architecture
 Understanding the social and ethical
aspects of modern information systems
© Trevor Sharpe 8
1. What specific information does a business

need?
2. What data gives this information?
3. What is the input from people?
4. What knowledge can be gained?
Valuing Information Systems
Trevor M Sharpe MA
Valuing Information Systems
Trevor M Sharpe MA
© Trevor Sharpe 9
 What are the methods of valuing systems and

the information they contain?
 What are the advantages and drawbacks of
valuing information systems in this way?
 What is the value of an information system to
an organisation?
 Operational  Strategic
◦ The Payback method ◦ Porter‟s 5 Forces
◦ Return on Investment ◦ Porter‟s Value Chain
◦ Net Present Value
◦ Internal Rate of
Return
◦ Cost Benefit Analysis
Calculate the Cost-Benefit Ratio:
Total benefits
Total costs
By assigning monetary values to both the costs
and the benefits
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◦ Hardware ◦ Support
◦ Software ◦ Security
◦ Installation ◦ Networking
◦ Environmental ◦ Training
◦ Running ◦ Organisational
◦ Maintenance ◦ Downtime
◦ Improved ◦ Improved
Customer Service Information
◦ Competitive ◦ Improved Product
Advantage Quality
◦ Timely ◦ Improved
Information Communication
◦ Support for the ◦ Innovation
core business ◦ Job Enhancement
 Costs and Benefits do not occur within the

same time frame.
 IT can change during the time of the project.
 There is a real difficulty in valuing
information
 Therefore, use the financial models cautiously
and not in isolation
© Trevor Sharpe 11
 Analyse the strategic business importance of

IS
 Analyse the IS strategy options
 Manage the evolving portfolio in direct
proportion to business value and not
technical peculiarities.
 IT as a resource?
 IT as a means of supporting and/or
enhancing current organizational capabilities?
 IT as a basis for enabling new capability
creation?
 IT as infrastructure for the firm?
 IT as a means of communication within and
beyond the firm?
 IT as a distribution channel for products?
 Is IT all of these, or something else
altogether?
Drnevich, Hahn, & Shanley
An organisation‟s ability to learn, and translate

that learning into action rapidly, is the
ultimate competitive advantage.
Jack Welch, Chairman, General Electric
© Trevor Sharpe 12
 Prahalad & Hamel suggest that the key

issue facing organisations is to assess their
“core competencies”
 We need to ask:
◦ Will the investment in IT maintain or enhance our
future core competencies?
◦ To what extent will better information help us to
identify the core competencies needed in the
marketplace?
Can IS build
barriers to
entry?
Can IS change the Can IS change Can IS build

balance of power the basis of in switching
with suppliers? competition? costs?
Can IS generate
new products or
services ?
Robson
Administration and Management

Human Resources
Technology
Margin
Procurement
Inbound Operations Outbound Marketing Customer
Logistics Logistics and Sales Service
Source: M E Porter, Competitive Advantage, New York Free Press (1985)
© Trevor Sharpe 13
 Can we enhance the value added by that

activity?
 Is there an opportunity to reduce the cost of
that activity?
 Or eliminate that activity?
 Can we use the activity to differentiate
ourselves?
 What information is needed for that activity?
“The value of information is now defined not

by what it costs you, but by what you can do
with it.”
James Strachan, Managing Director, Britannica.co.uk

– Daily Telegraph, Wed 20th Oct 1999.
Companies that create value with digital assets

may be able to re-harvest them in an infinite
number of transactions.
J F Rayport & J J Sviokla, Exploiting the virtual Value Chain,

Harvard Business Review, Nov-Dec 1995, pp 75-85
© Trevor Sharpe 14
Physical Value Chain

Gather
Organise
Value
Select
matrix
Synthesise
Distribute
Virtual Value Chain
New New
markets markets
 Focus on the knowledge input into a business

process as a way of determining the costs
and benefits of changes
 These can be measured in terms of learning
time to master new processes
 Hence the return on knowledge can be
estimated
To make knowledge work productive will be

the great management task of this century,
just as to make manual work productive was
the great management task of the last
century.
Peter F Drucker, 1999
© Trevor Sharpe 15
The real value of Knowledge is only real if you

change the way business is done
B A.Pasternack & A. J. Viscio, The Centerless Corporation (1998)
A fool with a tool is still a fool
R. Banerjee in Knowledge
Management - Tools and Techniques.
(Ed. Rao) Elsevier (2005)
We are all used to Francis Bacon‟s view that

“Knowledge is Power”
But
Bacon also said “The desire of excessive

power caused the angels to fall; the desire
of knowledge caused men to fall.”
© Trevor Sharpe 16
Despite much talk about the "information

age" or the "knowledge-based enterprise"
there are no generally accepted principles
to guide executives in reconciling the
euphoric promises of the computer
advocates and their staff's ability to prove
that information technology investments
are profitable
P. A. Strassman – Strassman Inc.
Systems & Organisations
Trevor M Sharpe MA
 What are the strategic considerations for IS

development?
 What are the organisational considerations
for IS development?
 What are the cultural considerations for IS
development?
© Trevor Sharpe 17
Business
IS strategy set
strategy set
Mission System objectives

Objectives IS System constraints
strategic
Strategy System design
Other strategic planning Strategies
organisational process
attributes
W R King Strategic Planning for Management Information

Systems, MIS Quarterly, Vol. 2 No. 1 pp. 27-37 1978
 External considerations
 Internal considerations
 Structural considerations
 Cultural Considerations
 Any model could be used, but we will take:-
◦ Porter‟s Generic Strategies – a marketing approach
◦ The Information Intensity Matrix – trying to

understand the importance of information to the
business.
© Trevor Sharpe 18
 Again, there are many models, but we will

consider:-
◦ Nolan Stage Model – a development model
◦ Parsons Generic Strategies – a management

awareness model
 Overall Cost Leadership

 Overall Differentiation
 Focus/Niche
 Systems should replace or control costs

 Biggest costs are in labour
 Control systems e.g.:
◦ Inventory management
◦ Office automation
◦ Process control systems
© Trevor Sharpe 19
 Add unique features to product/services

directly
 Biggest differentiator is quality
 Example systems:
◦ CAD
◦ Quality assurance systems
◦ Quality monitoring systems
 Identify and create market niches directly

 Example systems:
◦ Marketing databases
◦ CRM systems
◦ R & D databases
High Oil Refining Newspapers

Legal Services Banking
Education
Information
Airlines
Intensity of
the Value
Chain Cement Fashion
Bricks Perishables
Low
Low High
Information Intensity of the Product
M E Porter & V E Miller, How information gives you competitive
advantage, HBR Vol. 63, No. 4 pp. 149-60 (1985)
1/03/08 © Trevor Sharpe 60
© Trevor Sharpe 20
 Try to understand what the strategy is trying

to achieve.
 Try to ensure that the Information System will
deliver or enhance that achievement.
1. Initiation
• The computer is used for low level transaction
processing
2. Contagion
• Enthusiasm grows, but understanding doesn‟t
3. Control
• The data processing department is reorganised
to provide more control of project development
4. Integration
• Data processing becomes more oriented
towards information provision
5. Data Administration
• Users become more accountable for the
integrity and correct use of the information
6. Maturity
 There is a recognition of the strategic
importance of information
R L Nolan, Managing the Crises in Data Processing, HBR, Vol. 57, No. 2 pp.
115-126, 1979
© Trevor Sharpe 21
Strategy Reasons for Role of IS

Adoption function
Centrally Management Service provider

Planned believes central
planning facilitates
the uncovering of
the whole picture

Adoption function
Leading Edge Management Experimenter and

believes that promoter
innovative
technology can
create business
gains
1/03/08 © Trevor Sharpe 65

Adoption function
Free Market Management Competitive

believes the market business unit
makes the best
decisions
© Trevor Sharpe 22

Adoption function
Monopoly Management Reactive –

believes that satisfying
information is a requirements
corporate asset

Adoption function
Scarce Management Making the best

Resource believes that use of limited
information is finite resources

Adoption function
Necessary Evil Management Providing

believes that minimum level of
information is not resource
important in their
business
G Parsons, Fitting Information Systems Technology to the Corporate Needs: The Linking
Strategy, Harvard Business School Teaching Notes (9-183-176) June 1983
© Trevor Sharpe 23
Technical view
◦ A stable, formal structure that takes resources
from the environment and processes them to form
outputs
Behavioural view
◦ A collection of rights, privileges, obligations and
responsibilities that are delicately balanced over a
period of time through conflict and conflict
resolution
 Entrepreneurial
 Machine bureaucracy
 Divisionalised bureaucracy
 Professional bureaucracy
 Adhocracy
Instruction CEO Information

flows Flows
Production Finance Marketing
What are the informational flows in an

adhocracy or matrix organisation?
© Trevor Sharpe 24
The values, attitudes and behaviour that

influence the way that people sense, collect,
organise, process, communicate and use
information
D. A. Marchand, Managing Strategic Intelligence"; "What is your company's

information culture?"; "The information infrastructure: promises & realities",
Financial Times Mastering Management, Ed T. Dickson & G. Bickerstaffe,
(Pitman Publishing, London, 1997), pp. 346-350, pp. 351-356, pp. 360-364.
 Functional
◦ Managers use information as a means of exercising power
or influence over others.
 Sharing
◦ Managers and employees trust each other to use
information wisely (especially about their problems or
failures) to improve their performance
 Inquiring
◦ Managers and employees search for information better to
understand the future and ways of changing what they do
to align themselves with future trends/directions
 Discovery
◦ Managers and employees are open to new insights about
crises and radical changes and seek ways to create
competitive discontinuities.
High ANTICIPATE CREATE

Avoid Errors and Redefine the
Problems Criteria for
Success & Failure
UNCERTAINTY
CONTROL ADAPT
Monitors Errors Correct Errors
and Problems and Problems
Low
Low High
COMPLEXITY
© Trevor Sharpe 25
 What are the sources of information and

knowledge that provide a sustainable
competitive advantage to the business?
 How do the company culture, organisation
and practices currently influence
information cultures and behaviour?
 Does the company have the right mix of

information behaviour and cultures to
manage change successfully today and in
the near future?
 What gaps in capabilities and competencies
must managers address in order to align
their information culture with their business
and market strategies?
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 Flexibility is key
◦ Support a variety of styles, skills and knowledge
◦ Multiple analytical models
 Needs to reflect an understanding of
organisational processes
 Must be sensitive to bureaucratic and
political requirements
 Must reflect an awareness of its limitations
Systems & Management
Trevor M Sharpe MA
 What is the role of managers in the

organisation?
 What do managers use information for?
 How can information systems be designed to
enable managers to perform better?
© Trevor Sharpe 27
 Deciding
 Planning
 Controlling
 Coordinating
 Organising
 Programmed  Unprogrammed
◦ Repetitive ◦ Novel
◦ Routine ◦ Non-routine
◦ Known rules ◦ Rules not known
◦ Things not people ◦ Always involve
◦ Delegated people
◦ Automated ◦ Cannot be
delegated
 Intelligence
◦ Awareness that a problem exists
◦ Awareness that a decision must be made
 Design
◦ Identify all possible solutions
◦ Examine possible solutions
◦ Examine the implications of the possible
solutions
 Choice
 Implementation
 Evaluation
© Trevor Sharpe 28
1. Single unambiguous objective

2. Objective stated in numerical terms
3. All outcomes are known
4. Alternatives expressed in terms of outcomes
5. Alternatives are ranked
6. Best is chosen
 Descriptive and behavioural model that takes

account of imperfections of knowledge and
behaviour
 All alternatives are not always known
 Not always a single, clear cut objective
 Uses „rules of thumb‟
 Decision is reached which is acceptable to all

 Focus is on getting the right question
 Involves more people
 Greater chance that the real problem will be
identified
© Trevor Sharpe 29
 Consider the full range of objectives

 Explore a wide range of alternatives
 Carefully evaluate the costs and risks
 Seek out new information
 Assimilate expert opinion
 Re-examine all alternatives before
making the final decision
 Make detailed plans
 Review the decisions made
The MIS can perform two functions
a. It supplies information, explores

alternatives, and provides support
where the manager takes the decision
or
b. The MIS takes the decision itself. This is
only appropriate with routine
operational decisions where the rules
are known.
 Where are we now?

 Where are we going?
 How will we get there?
 How will we know we have arrived?
© Trevor Sharpe 30
 PESTEL
 5 Forces
 Boston Consulting Group
 Etc.
 Simple Planning Model

◦ Based on Profit & Loss Account
 Business Models
◦ Cash flow forecast, based on historical data
 Sensitivity Analysis
◦ Examines the sensitive variables
 Probability Models
◦ Normal Distribution, queuing etc.
 Standard specifying the expected

performance
 Measurement of actual performance
 Comparison of expected vs. actual
 Feedback of deviations
 Action to alter the performance
 Feed forward to higher authority
© Trevor Sharpe 31
 Control system is a rational system

◦ Set of logical rules is relied upon
 Focuses on a single task
◦ Scope is precise and narrow
 Control is
◦ Repetitive
◦ Stable
 Decisions are not judgement based
In order to achieve effective control, a system

must be capable of as much variety as the
environment in which it exists.
H R Ashby, Introduction to Cybernetics, Wiley, 1956
 Accounting Information Systems

 Financial Information Systems
 Marketing Information Systems
 Manufacturing Information Systems
 Human Resource Information Systems
© Trevor Sharpe 32
A manager is responsible for the

application and performance of
knowledge.
Peter Drucker
 Office Automation Systems (OAS)

 Knowledge Work Systems (KWS)
 Group Collaboration Systems (GCS)
 Artificial Intelligence Applications (AI)
The effort to develop computer based systems

that can behave like humans, with the ability
to learn languages, accomplish physical
tasks, use a perceptual apparatus and
emulate human expertise and decision
making
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 Expert systems/Knowledge based systems

 Case-Based Reasoning
 Computer Aided Software Engineering
 Natural Language Processing
 Fuzzy Logic
 Genetic Algorithms
 Neural Networks
 Semantic Search Engines and Link Machines
10
 Creating an organisational knowledge base

 Preserving expertise that may be lost through
retirement/illness etc.
 Increasing reliability
 Eliminating routine jobs
 Maintaining a company‟s strategic position
10
Someone who interprets and applies

information to create and provide value-
adding solutions, and to make informed
recommendations.
Winslow & Bramer, FutureWork, Free Press (1994)
10
© Trevor Sharpe 34
 Explicit
◦ Objective, rational and technical
◦ Policies, procedural guides,reports etc.
 Tacit
◦ Subjective and cognitive
◦ Experiences, insights expertise etc.
I. Nonaka & H. Takeuchi, The Knowledge Creating Company: How Japanese

companies Create the Dynamics of Innovation, Oxford University Press
(1995)
10
Knowledge is:-
◦ Applicable
◦ Contextual
◦ Experiential
◦ Historical
◦ Communal
◦ Individual
10
“Information is not the pathway to

enlightenment, happiness or wisdom.
Information is only data, after all, and it is
possible to have too much of it. In fact,
information can get in the way of wisdom,
unless we leave ourselves sufficient time
and energy to reflect on it, make sense of it,
and integrate it into our lives.”
Hugh Mackay – Australian columnist and author (1996)
10
© Trevor Sharpe 35
“Sometimes it seems that the more we know,

the more confused we get; that the more we
increase our technical capacity, the more
powerless we become”
Charles Handy – The Age of Paradox, Harvard School

Press (1994)
10
The secret of business is to know

something that nobody else
knows.
Aristotle Onassis
10
Technology Considerations
Trevor M Sharpe MA
© Trevor Sharpe 36
 What are the criteria that direct our choice of

IT architecture?
 What hardware and software systems are
available?
 How should we choose our hardware and
software?
 Should we outsource our Information
Systems?
10
1. Business need
2. Application software
3. System software
4. Hardware
11
 Reflect choices made during strategy

assessment
 Used to add value through the value chain
 Fulfil operational needs
11
© Trevor Sharpe 37
 Operating Systems
 Communications
 Programming Languages
 Utilities
11
 Utilities
◦ Disk maintenance
◦ Anti Virus
◦ File Maintenance
 General System Software
◦ Word Processing
◦ Presentation Software
◦ Spreadsheet
11
 Moore‟s Law
 Architecture choice
 Network topology
 Metcalf‟‟s Law
 Coase‟s Law
 Peripherals
11
© Trevor Sharpe 38
 The power of Central Processing Units (CPUs)

will double every eighteen months.
 The cost of CPUs will halve every eighteen

months
11
 Proprietary Architecture
◦ State of the art?
◦ Vendor Support
◦ Expensive
 Open Architecture
◦ Standardised components allow migration,
scalability & interoperability
◦ Support variable
◦ Competitive
11
 Star or Client/Server (Point-to-Point

technology)
 Bus/Ring or Peer-to-Peer (Broadcast
Technology)
 Storage Area Networks
 Web technology based Intranets and
Extranets
11
© Trevor Sharpe 39
 Clients use but do not provide network

resources
 Servers provide network resources
 Peers both use and provide network
resources
11
 Strong central security

 Central file storage allows easy back-up of
critical data
◦ Easier to manage a large number of users
◦ Keeps data from getting lost amongst users
 Servers can pool hardware and software,
saving costs
 Servers can be optimised for speed
11
 Expensive dedicated hardware

 Expensive network operating system software
and client licenses
 Usually needs a dedicated network
administrator
12
© Trevor Sharpe 40
 No extra investment in server hardware or

software
 Easy set-up
 Little administration required
◦ Users control resource sharing
12
 Additional load on computers

◦ They tend to run more slowly
 Weak security
 Lack of central management/organisation
◦ Data gets lost
◦ Users administer their own computers
12
 A high-speed special-purpose network (or

sub network) that interconnects different
kinds of data storage devices with associated
data servers on behalf of a larger network of
users.
 Part of the overall network of computing
resources for an enterprise
12
© Trevor Sharpe 41
Direct Attached Network Storage Area

Storage (DAS) Attached Network (SAN)
Storage (NAS)
Application Application Application
File System Network File System
Disk Storage File System Network
Disk Storage Disk Storage
12
The power of the network increases

exponentially by the number of computers
connected to it. Therefore, every computer
added to the network both uses it as a
resource while adding resources in a spiral of
increasing value and choice
Robert M Metcalf – the inventor of Ethernet
12
 Architecture choice
 Outsourcing
 Vendor Choice
12
© Trevor Sharpe 42
 Firms will grow and manage activities

internally until it is cheaper to outsource that
activity.
◦ E.g. payroll. If it cheaper for a company to manage
payroll internally, they will do so. But, if a company
can outsource that activity more cost effectively,
they will.
R Coase, The Nature of the Firm, Economica 4 (1937), pp. 386-

405
12
Coase highlighted the following costs firms

should consider when contemplating make
vs. buy decisions:
◦ search and information costs
◦ bargaining and decision costs
◦ policing and enforcement costs
12
 There is a limited opportunity for an

organisation to distinguish itself
competitively through a particular systems‟
application or series of applications
 The predictability of uninterrupted
information systems service is not very
important
 The organisation‟s existing information
systems‟ capabilities are limited, ineffective
or technically inferior
12
© Trevor Sharpe 43
 Cost reduction
 Quality improvements
 Enables focus on core business
 Reduces risk of project failure
13
 User Support  Voice Network

 Disaster Recovery Management
 Data Network  Software Development
Management  Software Maintenance
 Data Centre Operations  IT Strategy & Planning
 Internet Services
 Support Services
 Business Process
 Application Hosting
13
 Branded products
 “Box Shifters”
 “Build yourself”
13
© Trevor Sharpe 44
 How much computer power do you need?

 Can you spread the load over a number of
smaller computers?
 Do users need power over their own
computing needs?
13
 Total freedom
 Data exchange
 Short list
 Fixed Standards
13
 Software has a longer life than hardware

 Architecture is more enduring than kit
 Don‟t migrate from one architecture to
another without good reason
 Connecting two or more vendor‟s
components is generally difficult
 Information requirements can never be fully
defined in advance
 Avoid pioneering
13
© Trevor Sharpe 45
Moore's Law, Metcalfe's Law, and Coase's

Theory of Transactional Costs are synergistic.
As the cost of computing declines, and the
utility of the network increases. transactions
which came at stupendously high
transactional costs in the past are now nearly
free.
B McNett, http://www.livejournal.com/users/cavemanog/4231.html
13
A computer will not make a good manager of a

bad manager. It makes a good manager
better faster and a bad manager worse faster.
Edward M Esber, CEO of Ashton Tate, Fortune Magazine, 1987
13
Systems Building Methods
Trevor M Sharpe MA
© Trevor Sharpe 46
 What are the major methods of designing

new systems?
 What are the major methods of modifying
systems?
 How do they compare?
13
 Systems Life Cycle

 Computer Aided Software Engineering
 Prototyping
 The Spiral Model
 The Exploratory Model
 Application Software Packages
 End-User Development
14
Determination of Scope
and objectives
Systems investigation
and feasibility study
Systems Analysis
Systems design
Detailed design
Implementation
Evaluation and
maintenance
14
© Trevor Sharpe 47
 Standard methodology
 Ordered process
 Easy to learn/teach
 Wide range of tools
 Good for complicated systems
14
 Unambitious systems design

 Inflexibility
 User dissatisfaction
 Documentation problems
 Lack of control
 Incomplete systems
14
 Deal with the difficult analysis stage of the

SDLC
 Systems are modelled on “paper” using data
flow diagrams
 Use a system of “structured walkthroughs” to
maintain quality assurance.
14
© Trevor Sharpe 48
 Built around flexible data structures

 Use of diagrams improves communication
 Built of business requirements
 Technical details are left to the end
 Consistent, rigorous and complete
documentation.
 Training requirements can be precisely
defined.
 System is independent of the developer.
14
 Effort is expended in the earlier stages of the

project which is largely intangible.
 Depends to a high degree on user
involvement.
 Designers maintain the intellectual property
rights of their designs.
14
 Uses the capabilities of the computer to

assist the analysis and design
 Capable of storing all the details
 Can produce all the documentation.
14
© Trevor Sharpe 49
 Experimental system
 Rapid
 Inexpensive
 End-user evaluation
 Iterative process
14
 Useful when there is uncertainty about the

requirements
 Better suited to smaller applications
 Management may not see the need for full
design
 Encourages lack of documentation
14
 Initial Specification Development.

 System Construction/Modification.
 System Test.
 System Implementation.
15
© Trevor Sharpe 50
 Used when it is very difficult, if not

impossible to identify any of the
requirements for a system at the beginning
of the project.
 It is limited to use with very high-level
languages, such as LISP.
 It is difficult to measure or predict its cost-
effectiveness.
 Often yields inefficient or crudely designed
systems.
15
 Planning.
 Risk Assessment.
 Engineering.
 Customer Evaluation.
15
 It is difficult to assess its strengths and

weaknesses due to its relative newness.
 The risk assessment component of the
Spiral model provides both developers and
customers with a measuring tool that earlier
SDMs do not have.
 The practical nature of this tool helps to
make the Spiral model a more realistic SDM
than some of its predecessors.
15
© Trevor Sharpe 51
 Readily available
 Pre-tested
 Technical Back-up
 Not geared to unique requirements
 The cost of customisation can be enormous
15
 Users “rent” the software rather than buy it.

 Access is available over the Internet.
 Preferred Microsoft model?
 Need methods of micro-payment before
individual users can adopt it.
15
Prioritised Capabilities
business of the
requirements standard
package
Unmet needs Surplus to needs
Map of discrepancies
Customise the Modify the Tolerate the Surround the package

package business process mismatch with extra functionality
15
© Trevor Sharpe 52
12
10
Cost Multiplier
0
0% 1% 2% 3% 4% 5%
Percentage Code Rewritten
15
 Made possible by use of 4GL tools

 Professional expertise not involved
 Uses commercially available products
 Can lead to software anarchy
15
 Improved requirements determination

 Increased user involvement & satisfaction
 Reduced application backlog
15
© Trevor Sharpe 53
 Relatively inefficient
 May carry high cost
 Large files can degrade performance
 Nonprocedural approach may hamper logic
& updating requirements
16
 Design
◦ Fails to capture essential business
requirements
◦ Poor user interface
◦ On-line information retrieval may be
unintelligible
 Data
◦ High level of inaccuracy
◦ Incomplete
16
 Cost
◦ Smooth = Costly
◦ Cost outweighs the benefits
 Operations
◦ Not timely
◦ Not efficient
16
© Trevor Sharpe 54
◦ Correct resource allocation

◦ Software Metrics
◦ Thorough testing
◦ Use proper quality assurance tools
◦ Object Oriented Development (CASE etc.)
◦ Use a sympathetic conversion method
16
 Parallel:
◦ Old & new run same problems. Give same
results?
 Direct cutover:
◦ Risky conversion to new system
 Pilot:
◦ Introduce into one area. Does it work? Yes:
introduce into other area
 Phased:
◦ Introduce in stages
16
Databases and Database Management
Trevor M Sharpe MA
© Trevor Sharpe 55
 What are the components of quality data?

 How is data organised?
 What are the trends in data management?
16
1. Data should be entered into the system once

and once only
2. Data should be captured as close to the
source as possible
3. All data should form part of a coherent
database
4. Data should be available to everybody with a
need to know
16
 Raw facts and figures in two forms:

◦ Discrete
 Rarely changes
◦ Continuous
 Constantly changing
 Collect discrete data wherever possible
16
© Trevor Sharpe 56
 A collection of many inter-related items of raw

facts and figures
 A database is made up of a number of inter-related
files
 A file is the whole of the stored information for a
particular application e.g., information on all the
customers of a company
 A file is made up of a collection of records
 A record is made up of a collection of fields. Each
field contains a single item of information
16
ONE-TO-ONE: STUDENT ID
CLASS
ONE-TO-MANY:
STUDENT STUDENT STUDENT
A B C
CLASS CLASS
MANY-TO-MANY:
1 2
STUDENT STUDENT STUDENT

A B C
17
ROOT Employer
FIRST Compensation Job Benefits

CHILD Assignments
2nd
Ratings Salary Pension Insurance Health
CHILD
17
© Trevor Sharpe 57
 Processing efficiency: high

 Flexibility: low
 User friendliness: low
 Program complexity: high
17
 Variation of hierarchical model

 Useful for many-to-many relationships
NETWORK NETWORK
1 2
NETWORK NETWORK NETWORK

A B C
17
 Processing efficiency: medium/high

 Flexibility: low/medium
 User friendliness: low/moderate
 Program complexity: high
17
© Trevor Sharpe 58
 Data in table format

 Relation: table
 Tuple: row (record) in table
 Field: column (attribute) in table
NAME HOURS RATE TOTAL
ABLE 40.50 £10.35 £419.18
BAXTER 38.00 £8.75 £332.50
CHEN 42.75 £9.25 £395.44
DENVER 35.50 £9.50 £337.25
17
 Processing efficiency: low but improving

 Flexibility: high
 User friendliness: high
 Program complexity: low
17
Interface
Definition and Processing Enquiry

Description Software Software
Software
Defines and Manipulates and Handles all forms

Organises Data Retrieves Data of requests
Data Dictionary
Database
17
© Trevor Sharpe 59
 Reduces complexity
 Reduces data redundancy/inconsistency
 Central control of data creation/definitions
 Reduces program/data dependence
 Reduces development/maintenance costs
 Enhances system flexibility
 Increases access/availability of information
17
 DISTRIBUTED PROCESSING: multiple

geographical / functional systems connected
with network
 DISTRIBUTED DATABASE: data physically
stored in more than one location
◦ Partitioned - has files unique to that site
◦ Duplicate - has copies of common files
17
 OBJECT- ORIENTED: Data and procedures

stored together; can be retrieved/shared
 HYPERMEDIA: Nodes contain text,
graphics, sound, video, programs.
Organizes data as nodes.
 MULTIDIMENSIONAL: 3D (or higher)
groupings to store complex data
18
© Trevor Sharpe 60
 DATA WAREHOUSE: Organisation‟s

electronic library stores consolidated
current & historic data for management
reporting & analysis
 ON-LINE ANALYTICAL PROCESSING (OLAP):
ability to manipulate, analyse large
volumes of data from multiple perspectives
– DATA MINING
18
OPERATIONAL,
HISTORICAL DATA
DATA WAREHOUSE
EXTRACT, DATA
INTERNAL TRANSFORM ACCESS &
ANALYSIS
DATA
SOURCES
QUERIES &
REPORTS
INFORMATION
DIRECTORY OLAP
DATA MINING
EXTERNAL
DATA
SOURCES
18
The extraction of hidden predictive information

from large databases.
A powerful new technology with great potential
to help companies focus on the most
important information in their data
warehouses.
18
© Trevor Sharpe 61
 Predict future trends and behaviours

 Scour databases for hidden patterns
 Can be implemented rapidly on existing
software and hardware
18
 Massive data collection

 Powerful multiprocessor computers
 Data mining algorithms
 On-line Analytical Processing (OLAP)
 Hypermedia
 Rule induction
18
 Two keys
◦ Precise formulation of the problem to be solved
◦ Using the right data
 The more the model builder can “play” with
the data, the better the resulting model will
be.
18
© Trevor Sharpe 62
 Association
◦ looking for patterns where one event is connected
to another event
 Sequence or path analysis
◦ looking for patterns where one event leads to
another later event
 Classification
◦ looking for new patterns
18
 Clustering
◦ finding and visually documenting groups of facts
not previously known
 Forecasting
◦ discovering patterns in data that can lead to
reasonable predictions about the future
18
In any collection of data, the figure most

obviously correct, beyond all need of
checking, is the mistake.
◦ Corollary #1 – No-one you ask for help will spot the
mistake.
◦ Corollary # 2 – Anyone who stops by with unsought
advice – especially a superior – will spot the
mistake, immediately.
Anon
18
© Trevor Sharpe 63
The Internet and e-Commerce
Trevor M Sharpe MA
 What is the difference between the Internet

and the World-Wide-Web?
 How has internet technology changed our
methods of working?
 What are the problems of managing this new
technology/interface?
19
 Began by the US government as the

ARPANET
 Taken up by the US Universities as USENET
 Taken up by the UK Universities as JANET
 Individuals joined through Bulletin Boards
 No central control
19
© Trevor Sharpe 64
 The Internet is the physical connection of

computers
 The World Wide Web is the abstract
connection of information and ideas on the
internet
T Berners-Lee, Inventor of the World Wide Web
19
 e-MAIL: person-to-person messaging;

document sharing
◦ USENET: electronic bulletin boards for discussion
groups
◦ LISTSERVs: e-mail list servers for discussion groups
◦ IRC: interactive conversations
 HTTP: web pages on the Internet
 TELNET: log on to one computer, work on
another
 FTP: transfer files from computer to computer
19
 Global connectivity
 Reduced communications cost
 Reduced agency costs
◦ Lower transaction costs
 Interactivity, flexibility, customisation
 Accelerated knowledge
◦ Technology has been expanded into intranets and
extranets
19
© Trevor Sharpe 65
 Business to Business (B2B)

◦ Collaborative Commerce
 Business to Consumer (B2C)
 Consumer to Business (C2B)
 Consumer to Consumer (C2C)
 Intrabusiness (B2E)
 Government to Citizens(G2C)
 Mobile commerce (m-commerce)
 Peer to Peer (P2P)
19
 An Intranet is an internal network

 An Extranet allows external users to connect
directly to the company
 WWW technology
 Often installed on existing network
infrastructure
◦ Overcomes computer platform differences
19
 Connectivity
 Can be tied to legacy system & transaction
processing
 Interactive applications with text, audio, video
 Scalable to larger or smaller systems as
required
19
© Trevor Sharpe 66
 Easy to use browser interface

 Low start-up costs
 Rich, responsive information environment
 Reduced information distribution costs
19
DATABASES
CUSTOMER
SUPPLIER INTERNET FIREWALL SERVER
BUSINESS
PARTNER
CLIENTS
20
 Easy to link with other businesses, customers

 Can update product information, ordering,
customer support
 Enhanced business forms
 Customer-centred retailing
 On-line storefronts
20
© Trevor Sharpe 67
 CONTENT PROVIDER
◦ creates revenue through providing advertising
and content for a fee.
 ON-LINE SERVICE PROVIDER
◦ provides service, support for hardware, software
products
 APPLICATION SOFTWARE PROVIDER
◦ rents software usage, on-line
20
 TRANSACTION BROKER
◦ buyers view rates, terms from various sources
 ELECTRONIC CLEARINGHOUSE
◦ auction-like setting, products, prices, change in
response to demand
 REVERSE AUCTION
◦ buyers set what prices they want to pay
20
 COMMUNITY PROVIDER
◦ User communities for personal web pages etc
 INFORMATION BROKER
◦ provides information for a fee
 VIRTUAL STOREFRONT
◦ sells goods, services on-line
20
© Trevor Sharpe 68
 WEB HOSTING SERVICES

◦ provides large servers for Web sites of fee-paying
customer
 ELECTRONIC PAYMENT SYSTEM
◦ using Web for electronic funds transfers, credit ,
smart & debit cards
 ADVERTISING AGENCY
◦ Places banner ads on sites
◦ Affiliate advertising
20
 e-Contact
 e-Catalogue
 e-Commerce
 e-Courier
©Sharpe & Boohene
20
 e-Tailing issues
 Management Issues
 Legal issues
 Issues in m-commerce
20
© Trevor Sharpe 69
 Resolving channel conflict

◦ Direct sales or via retailers?
 Resolving conflict with click-and mortar
organisations
◦ Direct from the shop or via the web-site?
 Organising order fulfilment and logistics
 Brand development on the Internet
◦ How/where do you advertise?
 Identifying appropriate revenue models
20
 Channel conflicts
◦ Customers in or employees out?
 Technology hurdles
 Security & privacy
 Unproven business models
 Who builds the website?
◦ IS Department?
◦ Marketing Department?
 Who controls the website?
◦ What should be on it?
◦ Who manages the information generated?
 How do we harness the increasing bandwidth?
20
 Bandwidth will rise at a rate three times the

rate at which processing power is
increasing, or three time the rate of Moore's
Law.
 In other words, with processing power
doubling every 18 months, bandwidth will
double every six months.
 At the moment processing power is
doubling every year and bandwidth every
four months.
G Gilder, The Bandwidth Tidal Wave, Forbes ASAP, December 5, 1994
21
© Trevor Sharpe 70
 E-mail, web content, B2B, P2P etc. increase

bandwidth demands.
 Demand for bandwidth from Intranets and
Extranets is increasing dramatically
 Gilder‟s Law results in a bandwidth
“inversion”
◦ Networks are more data rich than servers
 Telecom companies gain profits by
providing “scarce resources”!
21
 Fraud
◦ Buyer Protection
◦ Seller Protection
 Privacy
◦ Web tracking
 Disintermediation
 Taxation
 Copyright
 Cybersquatting
21
 Which protocol?
◦ SMS, EMS, MMS, WAP?
 Location Based Commerce
◦ Needs location determining equipment
 Convergence
◦ All personal devices in one
 Usability
21
© Trevor Sharpe 71
It is clear we are all drowning in a sea of

information. The challenge is to learn to
swim in that sea, rather than drown in it.
Better understanding and better tools are
desperately needed if we are to take full
advantage of the ever-increasing supply of
information.
Lyman, P & Varian, H R, "How Much Information", 2000. Retrieved from

http://www.sims.berkeley.edu/how-much-info
21
 Search Engines and Directories

◦ Google vs. Yahoo
 Portals
◦ Whatis.com, Findarticles.com
 Intelligent Agents
◦ Softbots, knowbots
 Discussion Groups
◦ Usenet, Chat rooms
 The “Semantic Web”
21
 Extension of the current web, in which

information is given a well defined meaning
 Expected to facilitate search, interoperability
and the composition of complex applications
 Could provide “personal assistants” to people
in terms of software agents capable of
performing useful tasks such as booking
holidays/rooms etc. As well as searching for
information
21
© Trevor Sharpe 72
Towards Total Connectivity
Trevor M Sharpe MA
 What are the elements of connectivity?

 What are the advantages and disadvantages
of connectivity?
 How can connectivity change the
organisation?
21
A measure of how well computers and

computer-based devices communicate and
share information with one another without
human intervention
K. Laudon & J. Laudon
21
© Trevor Sharpe 73
Organisation using networks linking people,

assets and ideas to create and distribute
products and services without being limited
by traditional organisational boundaries or
physical location
K Laudon & J Laudon
22
Core:
Indispensabl
e core people
Interface: Suppliers:
Flexible Outsourced
labour force key services
Charles
Handy
22
◦ Intranet
◦ Extranet
◦ Internet
22
© Trevor Sharpe 74
◦ Connected Worker
◦ Teleworker
22
The use of telecommunication to work outside

the traditional office or workplace, usually at
home or in a mobile situation.
www.whatis.com
22
 An expanded pool of potential employees

 Improvements in employee productivity,
effectiveness and morale.
 A reduction in office space and parking
 An attractive working condition
◦ To aid in recruitment and retention of skilled
employees
◦ To help reduce voluntary separation of key
employees.
22
© Trevor Sharpe 75
 Decline in absenteeism
◦ Employees who may feel too ill to complete a full
day and commute, may be well enough to work a
partial day.
 Accommodation of trained employees with
health problems or disabilities.
 Decrease in time and travel costs for
meetings, conferences and training.
22
 Reduced commuting time

 Reduction in costs for transportation,
parking, food clothing and child care
 More control over their lives
◦ Increased flexibility to coordinate work schedules
with personal and family priorities
◦ Ability to capitalize on personal peak productivity
periods.
22
 Increased physical comfort

 A sense of renewal and motivation,
especially in ageing and plateaued workers
 Improvements in communication
◦ Studies show that telework usually compels
supervisors and employees to learn new methods
to communicate
22
© Trevor Sharpe 76
 Loss of direct control over employees

 Potential of distractions leading to decline
in work output
 Potential of negative public perception
22
 Availability of the teleworker for training

and counselling
 Morale issues of employee who would like
to, but were not selected for telework
 Costs. The return on investment for
telework is difficult to quantify and initial
hardware investments takes time to regain
23
 Interruptions by family members or social

interruptions
 Social isolation
◦ Peer availability for informal work related
discussions (i.e.: at the coffee machine).
 Overwork. Some employees find that
because they have their work resources at
home, they tend to work more. This could
interfere with family life.
23
© Trevor Sharpe 77
 Decline in career opportunities because of

decreased visibility within the company
 Inadequate physical accommodations
 Costs associated with the virtual office
 The ability to troubleshoot technical
problems, the availability of technical help
remotely
 Dependence on the computer networks and
telephone lines
23
 Availability of bandwidth (Guilder‟s Law)

 Social methodologies for balancing work
control and work freedom
 Perceived values and economies in
telecommuting
 The opportunities and need for working
collaboratively across large distances
23
 Motivation
◦ Self motivation
◦ Management by Objectives
 Control
◦ Use information system
 Communication
◦ Regular meetings
◦ Groupware
23
© Trevor Sharpe 78
Face to face meetings Administrative filing and

• Copy boards filtering
Same place
• Polling systems • Shared files

• Group decision rooms • Shift work
• Facilitation services • Group displays
Cross-distance meetings Ongoing coordination

Different place
• Conference calls • Group writing

• Screen sharing • Forms management
• Video teleconferencing • Group voice mail
Same time Different time
23
Computer – to – computer exchange

between two organizations of standard
business transaction documents
Seller Customer
Orders, payments
Computer Shipping notices, price Computer

Updates, invoices
23
1. Automating some of the existing processes

in a business function
2. Automating all of the processes in a
business function
3. Changing the way that the business function
is performed
4. Performing new business functions
23
© Trevor Sharpe 79
 Legal relationships
◦ Between partners
◦ Between users and providers of services
 Data protection/security
 Auditing and tracking
 Service levels
 Organisational issues
23
By recognizing the need to separate

connectivity from applications we have the
opportunity to unleash the power of the
marketplace that has served so very well in
computing and in the Internet.
Bob Frankston – The inventor of the Visicalc Spreadsheet
23
The technology of the computer allows us to

have a distinct and individually tailored
arrangement with each of thousands of
employees.
John Naisbitt – Megatrends
24
© Trevor Sharpe 80
The Control of Information and

Information Systems
Trevor M Sharpe MA
 What are the system‟s vulnerabilities?

 What are the problems of controlling data and
information?
 How can systems and information be made
more secure?
 What are the problems of managing the
workforce in the new systems‟ environment?
24
 Control of the system

 Control of the information
 Control of the workforce
24
© Trevor Sharpe 81
 Procedures cannot be replicated manually

 No visual trace of changes
 Requires specialised technical expertise
 The effects of disaster much more extensive
24
 Hardware
 Software
 User Errors
 Theft
 Fire
 Flood
 Electrical Problems
 Viruses, trojans and worms
24
 Denial of Service Attacks

 Spoofing
 Spamming
 Sniffing
 Phishing
24
© Trevor Sharpe 82
 Data loss
 Data integrity
 Data disclosure
 Libellous content
24
Information Rights & Property Rights &

Obligations Obligations
Political
Issues
Social Issues
Ethical Issues
IT &
Systems
Individual
System
Society Quality
Accountability &
Control Politics
Quality of Life
24
 Data must be:-

◦ Obtained and processed fairly and lawfully.
◦ Held only for lawful purposes which are
described in the register entry.
◦ Used or disclosed only for those or compatible
purposes.
◦ Adequate, relevant and not excessive in relation
to the purpose for which it is held.
24
© Trevor Sharpe 83
 Data must be:-

◦ Accurate and, where necessary, kept up to date.
◦ Held no longer than is necessary for the purpose
for which they are held.
◦ Able to allow individuals to access information held
about them and where appropriate correct or erase
it.
◦ Surrounded by proper security.
25
 There should be no personal record

systems whose existence is secret.
 Individuals have rights of access,
inspection, review and amendment to
systems that have information about them.
 There must be no use of information for
purposes other than those for which it was
gathered, without prior consent.
25
 Managers of systems can be held accountable

and liable for the damage done by systems,
their reliability and security.
 Governments have the right to intervene in
the information relationships between private
parties.
25
© Trevor Sharpe 84
 Do unto others as you would have them do

unto you
 If an action is not right for everyone to take
then it is not right for anyone
 If an action cannot be taken repeatedly,
then it is not right to be taken at any time
 Take the action that receives the higher
value
 Take the action that produces the least
harm
 There is no such thing as a free lunch
25
 Prevention and deterrence

 Detection
 Limitation of damage
 Recovery
 Correction
 Awareness and compliance
25
 Firewalls
◦ Proxy Servers
◦ Anti Virus Software
◦ Anti Malware Software
25
© Trevor Sharpe 85
 Both Software and Hardware

 Hardware comprises a computer with two
network cards
 Software is a combination of antivirus and
access control software
 Proxy servers strip out the network address
of each computer.
25
 Reliability
◦ Only as good as the latest virus/trojan etc.
◦ Therefore needs to be up-dated on a regular basis
◦ Use needs to be enforced
 On network
 To all software loaded
25
 Something only the user is

◦ Biometric controls
 Something only the user knows
◦ Password
 Something only the user has
◦ Smart card or token
 Easily stolen/misused?
25
© Trevor Sharpe 86
 Photograph of face
 Fingerprint
 Hand geometry
 Iris scan
 Retinal scan
 Voice scan
 Signature
 Keystroke dynamics
25
 Password Control
◦ Frequent changing
◦ Eight characters or more
◦ No proper names
◦ Mix of characters
26
Design your security by looking to your

technology, your processes and your people.
The security should be the sum of all three
because the bad guys are going to look to the
weakest element, and if it's your people, they
are going to exploit it, it is done all the time.
Kevin Mitnick – Security Consultant and (ex) hacker
26
© Trevor Sharpe 87
 Risk Management
◦ Manage for all risks?
 Backups
◦ When/how are they done?
◦ Usually use RAID devices
 Access
◦ Needs education of personnel
26
 Whose laws prevail?

 Are cookies acceptable?
 Intellectual property rights – who owns the
information?
◦ Copyright – mp3, pictures etc.
26
 Dependence on information systems.

 Rapidity of change.
 Downsizing of the workforce.
 Reengineering job loss.
 Equity and access
 Health risks
26
© Trevor Sharpe 88
 Who is responsible?
 What are they responsible for?
 Who reports to whom?
 Where does the buck stop?
26
 Corporate security programs need to:

◦ Be aligned with organisational goals
◦ Include everyone in the organisation
◦ Be continuous
◦ Be proactive
◦ Be validated
◦ Be formal
M W Doll et al., Defending the Digital Frontier, Wiley (2003)
26
 Understanding the moral risks of the new

technology.
 Establishing corporate ethics policies that
include information systems.
26
© Trevor Sharpe 89
Man is simply designed wrong for

any mechanistic system.
Tom Peters & Robert Waterman – In Search of

Excellence
26
“The truth is out there”

The X files (1993)
But
A fool with a tool is still a fool
26
© Trevor Sharpe 90

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Information Systems Management 27/06/2010

Systems, Information & Management

© Trevor Sharpe 15/06/2010 2

 What is the difference between data,

© Trevor Sharpe 15/06/2010 3

© Trevor Sharpe 15/06/2010 4

A system to convert data from internal and

© Trevor Sharpe 15/06/2010 5

The acquisition, processing, storage and

T Lucey – Management Information Systems

© Trevor Sharpe 15/06/2010 6

© Trevor Sharpe 15/06/2010 7

Characteristics of Information Operational Tactical Strategic

Source Largely internal ………… External

Scope Well-defined, ………… Very wide

Time horizon Historical ………… Future

Currency Very current ………… Quite old

Required accuracy High ………… Quite low

Frequency of use Very Frequent ………… Infrequent

© Trevor Sharpe 15/06/2010 8

© Trevor Sharpe 15/06/2010 9

Computer systems at any level of the

Laudon & Laudon

© Trevor Sharpe 15/06/2010 10

© Trevor Sharpe 15/06/2010 11

Information + Insight = Understanding

Understanding + Communication = Intelligence

Intelligence + Action = Effectiveness

Information + Accessibility = Knowledge

© Trevor Sharpe 15/06/2010 12

A collection of elements or components that

© Trevor Sharpe 15/06/2010 13

An assembly of parts where:

The Open University

© Trevor Sharpe 15/06/2010 14

© Trevor Sharpe 15/06/2010 15

 Predictable systems where the output can

 For example: a calculator, where the

 Deterministic systems are sometimes called

© Trevor Sharpe 15/06/2010 16

Known Subject to Known and Predictable

© Trevor Sharpe 15/06/2010 17

 Where some conditions of the system can

 For example: in an inventory control system

© Trevor Sharpe 15/06/2010 18

 Systems that have the ability to monitor and

 What is the most adaptive system you know?

© Trevor Sharpe 15/06/2010 19

© Trevor Sharpe 15/06/2010 20

Specific Social General Social

© Trevor Sharpe 15/06/2010 21

© Trevor Sharpe 15/06/2010 22

Use of Legal Control

© Trevor Sharpe 15/06/2010 23

 Determining the value of information

© Trevor Sharpe 15/06/2010 24

1. What specific information does a business

© Trevor Sharpe 15/06/2010 25

Valuing Information Systems

Valuing Information Systems

 What are the methods of valuing systems and

© Trevor Sharpe 2/02/08 28

© Trevor Sharpe 2/02/08 29

Calculate the Cost-Benefit Ratio: