5 IT - 6sl

Information needs Structured requirements
Development of strategies and achievement of goals Most or all variables are known and decision making
is routine, therefore requiring little judgement.
Decision making
Can be planned in advance
Planning, co-ordination and control
Often repetitive
Communication
Are precise – based on clear, pre-defined rules
Analysis and visualisation
Frequently objective
Often automated as easily programmed.
© Accountancy Tuition Centre (International Holdings) Ltd 2008 1 © Accountancy Tuition Centre (International Holdings) Ltd 2008 2
Unstructured requirements Semi-structured requirements
Solutions are not clear cut and depend on intuition or Involve a mix of standard solution procedures
judgement. (structured) and individual judgement (unstructured).
Unplanned, unique, no track record Difficult to wholly program as only structured

elements of the requirement may be computerised.
Intuitive, rely on professional judgement
Few, if any rules
Unpredictable, subjective, uncertain.
Data and information Qualities of information
Data = numbers, letters, symbols that relate to facts, Time period Conciseness
events and transactions.
Timeliness Understood
Information is data that has been processed so that it
has a meaning and (hopefully) enables improved Relevance Confidence
decision making.
Accuracy Channel
Completeness Cost benefit
1
Management levels Strategic management
Company board and executive committees

Control overall strategic planning process – mission
statement, strategy and overall goals.
Monitor the strategic performance of the organisation
and its overall direction within its operating
environment.
Information is therefore required to:
¾ enable strategic planning;
¾ to assess whether the plan is being achieved;
¾ to identify when the plan needs changing; and
¾ how it should be changed.
Strategic decisions Strategic information
Impact the whole organisation Needed/prepared on an ad hoc basis, unscheduled,

required infrequently
Often subjective, scenario based and pro-active
Summarised plus drill down
Involve long term planning
Forward looking, external
Higher level of risk, usually complex, unlikely to be
recurring Broad scope
Provide the framework and guidance for tactical Quantitative (past) and qualitative (forward looking)
decision making
Tactical management Tactical management
Business unit managers, divisional, departmental, Information is therefore required to:

team or workgroup managers – middle managers
allocate resources; and
Develop short to medium term objectives, plans,
policies, procedures, budgets and schedules for their monitor the performance and use of those resources.
operational units to enable implementation of the
organisation’s strategic plans.
Information is therefore required to:

¾ allocate resources; and
¾ monitor the performance and use of those resources.
2
Tactical decisions Tactical information
Implement the requirements of the strategic plan Primarily generated from internal sources, but may
have an external element
Affect significant parts of the organisation
Concerned with activities or business units (including
Based on a mixture of short and medium-term, divisions, departments)
internal and external information
Although summarised to reflect the business unit (e.g.
Usually based on internal financial analysis division, department, team) ......
Use a mix of qualitative and quantitative data Sufficiently detailed to allow “what if” analysis
Provide the rules for operational decision making.
Tactical information Operational management
Prepared on a routine, regular basis Line managers - day-to-day decisions concerning

detailed transactions and processes.
Relevant to the short and medium term
Direct the use of resources and the performance of
Based primarily on quantitative factors, but also tasks according to procedures, set routines, budgets
qualitative factors as some tactical issues cannot be and schedules established at the tactical level.
identified from financial information
Information is therefore basically required to ensure
the smooth running on a day-to-day basis, i.e. that
specific operational tasks are planned and carried out
as intended.
Operational decisions Operational information
Day-to-day routine operations, immediate (or very Very detailed

short-term), basically concerned with control rather
than planning Based on:
¾ internal data (quantitative) to ensure full control
Low level of risk/uncertainty ¾ past or present
Often repetitive Relevant to the immediate-term

Easily programmed Task or routine specific
Use internal information Prepared as frequently as required
Follow rules set by tactical decision making
3
Categories Anthony’s hierarchy
Transaction processing systems (TPS)
Office automation systems (OAS)
Knowledge work systems (KWS)
Decision support systems (DSS)
Management information systems (MIS)
Knowledge work systems (KWS)
Office automation systems (OAS)

Interaction
Executive Support
Sytems
(ESS)
Management Decision Support

Information Sytems Sytems
(MIS) (DSS)
Knowledge and Transaction

Office Sytems Processing Sytems
(KWS and OAS) (TPS)
© Accountancy Tuition Centre (International Holdings) Ltd 2008 21

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Information needs Structured requirements

 Often automated as easily programmed.

Unstructured requirements Semi-structured requirements

 Unplanned, unique, no track record  Difficult to wholly program as only structured

 Few, if any rules

 Unpredictable, subjective, uncertain.

Data and information Qualities of information

 Completeness  Cost benefit

 Company board and executive committees

Strategic decisions Strategic information

 Impact the whole organisation  Needed/prepared on an ad hoc basis, unscheduled,

Tactical management Tactical management

 Business unit managers, divisional, departmental,  Information is therefore required to:

 Information is therefore required to:

Tactical information Operational management

 Prepared on a routine, regular basis  Line managers - day-to-day decisions concerning

Operational decisions Operational information

 Day-to-day routine operations, immediate (or very  Very detailed

 Often repetitive  Relevant to the immediate-term

 Transaction processing systems (TPS)

 Office automation systems (OAS)

 Knowledge work systems (KWS)

 Decision support systems (DSS)

 Management information systems (MIS)

 Knowledge work systems (KWS)

 Office automation systems (OAS)

Management Decision Support

Knowledge and Transaction

© Accountancy Tuition Centre (International Holdings) Ltd 2008 21

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Often automated as easily programmed.

Unplanned, unique, no track record Difficult to wholly program as only structured

Few, if any rules

Unpredictable, subjective, uncertain.

Completeness Cost benefit

Company board and executive committees

Impact the whole organisation Needed/prepared on an ad hoc basis, unscheduled,

Business unit managers, divisional, departmental, Information is therefore required to:

Information is therefore required to:

Prepared on a routine, regular basis Line managers - day-to-day decisions concerning

Day-to-day routine operations, immediate (or very Very detailed

Often repetitive Relevant to the immediate-term

Transaction processing systems (TPS)

Office automation systems (OAS)

Knowledge work systems (KWS)

Decision support systems (DSS)

Management information systems (MIS)

Knowledge work systems (KWS)

Office automation systems (OAS)