Page 9 - CIMA OCS Workbook May 2019 - Day 1 Tasks
P. 9
CIMA MAY 2019 – OPERATIONAL CASE STUDY
EXERCISE TWO (INFORMATION SYSTEMS)
BRIEFING NOTES
To: Juliette Goh
From: You
Date: Today
Subject: Information systems
Information systems
Information systems refer to the provision and management of information to support the running of
the organisation. It is different to information technology which is the supporting equipment
(hardware) that provides the infrastructure to run the information systems.
Information systems can be used in our factory by way of computer aided design (CAD) and computer
aided manufacturing (CAM). CAD and CAM have resulted in innovative solutions to product design
and can lead to the use of robots. We already use programmable machinery e.g. for mixing, weighing,
tableting and polishing but it may be difficult to extend this where there are elements of productions
that need to be carried out by hand. Another angle to consider is computerised inventory
management, in conjunction with our just in time system.
Information systems are also used in our offices by way of the internet, email, video/ teleconferencing
and we could introduce electronic data interchange (EDI). EDI replaces traditional paper based
documents; it allows the computer-to-computer transmission of data contained in standard business
documents such as customer invoices and purchase orders.
Organisations are increasingly using the internet, intranets and extranets to disseminate information.
A database combines data from multiple and varied sources (internal and external) into one
comprehensive, secure and easily manipulated data store.
Management information systems
A management information system (MIS) converts internal and external data into useful information
which is then communicated to managers at all levels and across all functions to enable them to make
timely and effective decisions for planning, directing and controlling activities. A hierarchy of decision
based management information systems may be used:
• At the strategic level – executive information systems can be used which give senior executives
access to internal and external information. Information is presented in a user-friendly,
summarised form which an option to ‘drill down’ to a greater level of detail.
• At the tactical level – decision support systems can be used which aid managers in making
decisions. The system predicts the consequences of a number of different scenarios and the
manager then uses their judgement to make the final decision.
• At the operational level – transaction processing systems process routine business transactions,
often in large volumes e.g. sales and purchase information.
Benefits and drawbacks of a new information system
The information system could be a source of competitive advantage but it is not without its
drawbacks.
62 KAPLAN PUBLISHING
