OTHM Ltd Cert2

Use of Business Information

Systems
Introduction to the
Business Environment - Session 12
OTHM Ltd Cert2
Learning Outcomes
At the end of the session students will
be able to:
Demonstrate a broad appreciation of the need
for information in T, T and H organisations
Describe the role of information in the overall
business process
Explain the concept of knowledge management
and its importance in a knowledge-based
economy

OTHM Ltd Cert2
Decision Levels in Organisations
Strategic
Operational
Tactical
Product, pricing, distribution,
promotional, process and
people focused decisions
Customer service levels
Competitive responses
Day to day service
Business direction
Market decisions
Investment decisions
New product development
Positioning
OTHM Ltd Cert2
Information Processing
DATA
INFORMATION INTELLIGENCE
Input Output/input Output
Value
added
Value
added
Uninformed
Minimum cost
Total uncertainty
Informed
Maximum cost
Less uncertainty
Source: Hines
OTHM Ltd Cert2
Market size
Market profitability
Market growth trends
Main products in the market
Customer attitudes and buying behaviours
Major competitors and market shares
Distribution patterns
Marketing strategies used in the market
Typical Data Requirements:
1. Market Analysis
OTHM Ltd Cert2
New products
Gap between current
products & perception
Consumer
research
Research from
international markets
Competitor research
Long range economic
studies
Satisfaction levels and
trends with current
products
Source: Hines
Typical Data Requirements:
2. Product Research
OTHM Ltd Cert2
Competitor product prices
Consumer attitudes to price
what would they expect to pay?
what would they be prepared to pay
Cost/price/volume - what quantities are
likely to sell at different price levels?
Typical Data Requirements:
3. Pricing Decisions
OTHM Ltd Cert2
Size of potential market
Demographic characteristics of users
Demographic profiles of segments
Behaviours and attitudes of different segments
Language used by customers in talking about
product
Share of mind compared with competitors
Typical Data Requirements:
4. Advertising and Promotion
OTHM Ltd Cert2
Sales territories
Sales personnel efficiency
Sales statistics
Sales forecasts
Sales incentives
Typical Data Requirements:
5. Sales Decisions
OTHM Ltd Cert2
Huge volumes of information now
available
Managers need to be selective and
systematic
As data is drawn from multiple
sources, needs to be combined and
analysed for it to be of value
The Knowledge Age
OTHM Ltd Cert2
A system within an organisation that
supplies information and
communication services and
resources to meet organisation
needs.
The Management
Information System (MIS)
OTHM Ltd Cert2
Technology
infrastructure
Hardware
Systems software
Applications software
Communications
Data
infrastructure
Databases
Database management
Archiving
Personnel
Technology developers
Systems operators
Systems maintainers
Users
User support
The Structure of an
Information System
OTHM Ltd Cert2
Business needs analysis
Specification of needs
Design & development
System testing
Implementation
Acceptance & go live
Stages of System Development
OTHM Ltd Cert2
Information outputs (the benefits):
Relevance to managers needs
Accurate (or known accuracy)
Supports decision making
Timeliness
Costs involved in running and maintaining the
system
Criteria for Assessing the
Effectiveness of an IS