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Chapter 5 Information

13.4 Information: The syllabus says . Understand management information needs: the concept of relevance and methods of interpretation. Understand that information has many characteristics and can be classified in many ways. Examples include: Level - strategic, tactical, operational Nature - quant

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Chapter 5 Information

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    1. Chapter 5 Information Syllabus 13.4

    2. 13.4 Information: The syllabus says Understand management information needs: the concept of relevance and methods of interpretation. Understand that information has many characteristics and can be classified in many ways. Examples include: Level - strategic, tactical, operational Nature - quantitative, qualitative, formal, informal Time - historical, current, future Source - internal, external, primary, secondary Type - disaggregated, aggregated, sampled. Use - planning, control, decision Form - written, visual, aural, sensory Frequency - real-time, hourly, daily, monthly Discuss the value of information in aiding the decision making process. Understand the difference between internal and external information requirements. Describe the characteristics of good information and delivery, e.g. relevant; accurate; complete; user confidence; to right person; at right time; in right detail; via correct channel of communication; understandable. Describe the advantages and characteristics of good information within an applications context.

    3. Classifying Information 1. Level ? Strategic to managing director In the form of a report including graphs, tables, summaries Where info from internal and external sources brought together To make decisions eg supermarket chain to offer credit service ? Tactical to middle management In the form of an aggregated report Where data from the data processing system summarised To make decisions eg least popular stock discontinued ? Operational to supervisors In the form of detailed transaction reports Where data processing information listed To make decisions about rotas and production times

    4. Classifying Information 2. Nature ??? Quantitative Info Can be measured in specific units Eg North West Sales total = Ł1,232,000 ??? Qualitative Info Comes from data based on value judgments Eg Most customers found chip and PIN easy to use ? ? Formal Info Created and given out as part of company procedures Eg Weekly management reports ? ? ?Informal Info Created and given out outside normal procedures on an ad-hoc basis Eg Telephone conversation

    5. Classifying Information 3. Time ? Historical Eg Last Oct-Dec graphs of toy sales for Xmas Eg Last 5 years profits from annual reports to shareholders ? Current Eg Graph of current toy sales for this month October Eg Table showing this months profit ? Future Eg Projected population figures grouped by age Eg Projected sales figures for the next 5 years

    6. Classifying Information SOURCE ? internal Produced inside the company Eg timesheets, current stock levels, current progress grades for pupils….. ? external Produced outside the company Eg Order forms from customers - ? primary Eg sifjsdfhsfhsfh ? secondary Eg s;fhdhf;fh;shf Look at exam Q7 Jun 05

    7. Exam Q7 Jun 05 (internal and external data) Information produced by ICT systems may be required both within (internal) and outside (external) organisations such as schools and supermarkets. (a) Describe two examples of internal information requirements, stating for each: o who needs the information; o what information they require; o what it is to be used for. 6 marks (b) Describe two examples of external information requirements, stating for each: o who needs the information; o what information they require; o what it is to be used for. 6 marks

    8. Answer: 1 for who (w), 1 for what info (i), 1 for use (u). Any 2 x (3,2,1,0) examples . • A supermarket fresh produce department manager (w), needs information about current stock levels on the shelf (i), so they can decide what needs stocking up and ultimately reordering from the warehouse (u) • A pastoral tutor in a college (w), needs up-to-date grades and attendance records (i), to use in a one-to-one progress review with their tutee (u) • The accountant at a hotel (w) needs to see what bookings have been made (i) so that they can predict revenue expected (u) (b) 1 for who (w), 1 for what info (i), 1 for use (u). Any 2 x (3,2,1,0) examples . • The inland revenue (w) receives lists of tax paid from payroll systems (i) so they can work out if any tax has been under or over paid (u) • Suppliers (w) receive automatic ordering information from customer stock control systems (i) so that they can fill the orders and satisfy their customers. requirements (u) • Examination boards (w) receive lists of candidate names and subjects from school exam control systems (i) so that they can administer their examination entry and result systems moreefficiently (u) • Shareholders (w) who want to see details of profit & loss (i) so they can decide whether to sell or buy more shares (u) • Parents (w) who like to see performance statistics for the school (i) to decide whether or not to send their child there(u) NB. Use must be active, not just ‘to see’ normally the computer can do the adding up!

    9. Classifying Information 5. TYPE – ???????disaggregrated (detailed) Can drill down to transaction level if necessary Reports at a customer or operational level Eg List of each customer order in the last month. ?aggregated (summary) Transaction values are added together to produce summary tactical and strategic reports Eg Totals report of customer orders over last month in descending order ??sampled (selected records) Certain customers, staff or products are chosen to produce a report Eg Exception Report – where customers sent a special offer are chosen in the above report format.

    10. Classifying Information 6. USE ?planning Managers use info to help plan strategies Eg Marketing manager plans to launch a new product uses historical info about similar products from other companies and external questionnaires from customers to decide how to market the product. ?control Managers use info to monitor and control the work done under her span of control. Eg Monthly sales figures allow salesperson targets to be monitored. ?decision Managers use info to make current decisions Eg Whether to take a product line off the shelves based on internal historical sales of the product compared with other products

    11. Classifying Information 7. FORM (Effective presentation of information) Information must be presented in a style and form that allows the audience to understand it best. ?written Memo, report, table…..all paper based ?visual Has more impact amongst written info eg graphs and pictures ?aural Conversation, telephone calls, presentation ?sensory Touch eg feel of fabric Activity P54-55 (See also Ch 17 at AS ICT2)

    12. Classifying Information 8. FREQUENCY ?real-time Immediate feedback from data – generally at a operational level – eg cashier at a ETFPOS would need to know whether the credit card was valid. Eg Double booking. ?hourly – generally operational ?daily – generally operational ?monthly – generally tactical The above are all needed at regular intervals to make regular decisions.

    13. Classifying Information LEVEL - ?Strategic ?Tactical ?Operational NATURE - ???quantitative, ???qualitative, ? formal, ? informal TIME - ? historical, ? current, ? future SOURCE - ?internal, ?external, ?primary, ?secondary TYPE – ??????? detailed, ?aggregated, ??sampled. USE - ?planning, ?control, ?decision FORM - ?written, ?visual, ?aural, ?sensory FREQUENCY - ?real-time, ?hourly, ?daily, ?monthly

    14. 13.4 Information Question

    15. Classifying Information Answer

    16. Characterising Good Info Answer

    18. Another Characteristic of Info Q An accountant calculates an organisation’s profit and loss based upon financial information from many sources. Name three characteristics that this information must have to be described as good information for the accountant and, for each characteristic, state why it is necessary. (6 marks) (Jun 2006)

    19. Characteristic of Info Answer 1 for characteristic(c), 1 for reason (r) to any 3 x (2,1,0) NB Need a reason, not just an example; Do not give negatives Accurate (c) as precision is of utmost importance when dealing with money (r) Complete/up-to-date (c) as the accountant needs all the information to be able to produce correct figures (r) Relevant (c) as relevant data will enable the accountant to keep to timescales/ make the correct calculations (r) From a reliable source/user confidence (c) so that judgements being made based on the information produced from the data will be valid(r) In the right format (c), the accountant works with numerical data/ a format easy to electronically merge into the existing data would save time and effort (r) At the right time (c), as the accountant is likely to be working to a deadline and needs all the data available to do the calculations (r)

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