Unit 02 - LO4

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Information Systems
LO4 – Be able to use IT tools to produce Management Information
LO1
Scenario
Criteria
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5
Assessment
P1 – Explain how organisations use Information
P2 – Discuss the Characteristics of Good Information
M1 – Assess the improvements which can be made to an identified organisation’s Business
Information Systems
P3 - Explain the issues related to the use of information
D1 – Compare Legal, Ethical and Operational issues that may affect organisations.
P4 – Describe the features and functions of Information Systems
P5 – Identify the information systems used in a specified organisation
M2 – Illustrate the input and output if Information within a specified functional areas of an
organisation
D2 – Analyse the legal and ethical implications of the illustrated inputs and outputs.
P6 – Select Information to support a business decision-making process
P7 – Use IT tools to produce management information.
M3 – Explain the value of a management information system.
LO1
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Scenario
Criteria
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5
Assessment
P6 - Evidence could be in the form of a spreadsheet containing
information taken from business scenario the learners have worked
with. The learner must illustrate their ability to select information
accurately to support the decision making process for a specified
organisation. The learner must explain their choices for the types of
information selected.
P7 - Evidence could be in the form of graphs or charts to illustrate
their use of IT tools but the learner must justify their presentation
format. Graphs or charts or the presentation format must show the
detail of the data along with clear labelling of content and the purpose
of the produced information should be clearly explained. Learners
must check to ensure the data is valid and accurate.
M3 - For the merit criterion M3 which could be an extension of P7,
learners must explain the value of the management tool they selected
and the business decisions based on it which may follow.
LO1
Scenario
Criteria
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5
Assessment
Be able to use IT tools to produce management information
 The tutor should ensure that learners are aware of a range of IT tools that they
can use to produce management information. They should understand the
potential sources of information and the reliability of that information source.
An example that learners could consider would be an organisation with a
product which sells well, or a product that cannot sell at all and this must be
part of the company’s contingency plans and decision making process. The
company must consider faulty products which need to be returned. This can be
illustrated in a range of formats but a simple spreadsheet displaying a variety
of products which have sold, returned or stock that is clearly not selling is a
very visual example for learners. The tutor should discuss with the learners
what decisions they would make to help to keep the business profitable.
 Using the data discussed as part of their investigation into the decision making
process learners could create graphs or charts or presentations to illustrate
and back up good decision making for the business. They should be taught to
check their information and sources to ensure the data they use is valid and
accurate. In class discussion, explore the usefulness of such a management
tool and the outcomes which may follow.
LO1
Scenario
Criteria
1
2
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5
Assessment
There are several different types of software applications available to use in order to collect and manage information. Each
of these has their purpose and each has their inner tools that can be used to portray that information to the client or
customer. These are the widely known and widely used applications that have become common forms of tools that we use
in our day, common to the point where we name the company as the tool rather than the application, Word instead of Word
Processing, Excel instead of Spreadsheet etc.
Task 1 – P6.1 – Explain the different types of IT Tools that can be used, with examples of use.
Using a range of IT tool(s), create, annotate and evaluate the techniques used for:
◦ Apps
◦ Communication Software
◦ Computer-Aided Manufacturing Software
◦ Data Management Software
◦ Desktop Publishing Software
◦ Graphical Software
◦ Multimedia Software
◦ Spreadsheet Software
◦ Word Processor
◦ Utility Software
◦ Others
This can be done in the form of a presentation or report and must highlight the applications data management and display
in a range of examples.
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Apps
Communication
Software
Computer-Aided
Manufacturing Software
Data Management
Software
Desktop Publishing
Software
Graphical Software
Multimedia Software
Spreadsheet Software
Word Processor
Utility Software
Internet searches and facilities
Others
LO1
Scenario
Criteria
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Assessment
There are several different types of higher level applications available for companies to use in order to
analyse data and prepare information results. Each of these has their purpose and each has their
advantages that makes them useful to portray that information to the client or customer.
 Customer relationship management (CRM) is a model for managing a company’s interactions with
current and future customers. It involves using technology to organise, streamline with computer
interfaces or automatic recognition, and link together sales, marketing, customer service, and
technical support. Basically it does all the management of information under one package.
 Marketing - CRM systems can track and measure campaigns over different media, such as email,
search, social media, telephone and direct mail. These systems track clicks, responses, leads and
deals.
 Customer service and support - CRM systems can be used to create, assign and manage
customers requests, such as call centre software which helps direct customers to agents. CRM
software can also be used to identify and reward loyal customers over a period of time.
 Appointments - CRM systems can automatically suggest suitable appointment times to customers
via e-mail or web browsers. These can then be synchronised with the representative or agent's
calendar
 Social media - CRM often makes use of social media to build customer relationships. Some CRM
systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate
with customers sharing opinions and experiences with a company, products and services.
LO1
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Scenario
Criteria
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Assessment
Enterprise resource planning (ERP) is business management software that a company uses to manage
business processes, including:
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Product planning and development
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Manufacturing
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Marketing and sales
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Inventory management
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Shipping
ERP provides an single package live view of core business processes, using common databases
maintained by a database management system. ERP systems track business resources such as cash, raw
materials, production capacity etc. and the status of business functions: orders, purchase orders, and
payroll. The applications that make up the system share data across the various departments such as
manufacturing, purchasing, sales, accounting, etc. that entered the data. ERP facilitates information flow
between all business functions, and manages connections to outside stakeholders.
Knowledge Management System refers to a (generally IT based) system for managing knowledge in
organizations for supporting creation, capture, storage and dissemination of information.
The idea of a KM system is to enable employees to have ready access to the organisation's databases,
sources of information, and solutions. For example a typical claim justifying the creation of a KM system
might run something like this: an engineer could know the metallurgical composition of an alloy that
reduces sound in gear systems. Sharing this information organisation wide can lead to more effective
engine design and it could also lead to ideas for new or improved equipment.
LO1
Scenario
Criteria
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5
Assessment
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Artificial intelligence and expert systems are a computer system that emulates the decision-making ability of a human
expert. Expert systems are designed to solve complex problems by reasoning about knowledge, like an expert, and not by
following the procedure of a developer. The first expert systems were created in the 1970s and then proliferated in the
1980s.
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An expert system has a unique structure, different from traditional computer programming. It is divided into two parts,
one fixed, independent of the expert system: the inference engine, and one variable: the knowledge base. To run an
expert system, the engine reasons about the knowledge base like a human. Benefits include:
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Quick availability and opportunity to program itself - As the rule base is in everyday language, expert system can be
written much faster than a conventional program.
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Ability to exploit a considerable amount of knowledge - The expert system uses a rule base, unlike conventional
programs, which means that the volume of knowledge to program is not a major concern.
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Reliability and Consistency - The reliability of an expert system is the same as the reliability of a database, i.e. good,
higher than that of a classical program. Expert systems are apt to consistently make the same decisions. If the
knowledge base is set up with no ambiguity or subjectivity, then the expert system (with the same input criteria) will
always deliver the same output. This is useful for expert systems used to make decisions that need to have no bias
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Scalability - Evolving an expert system is to add, modify or delete rules. Since the rules are written in plain language, it
is easy to identify those to be removed or modified.
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Pedagogy - The engines that are run by a true logic are able to explain to the user in plain language why they ask a
question and how they arrived at each deduction. In doing so, they show knowledge of the expert contained in the
expert system.
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Preservation and improvement of knowledge - Valuable knowledge can disappear with the death, resignation or
retirement of an expert. Recorded in an expert system, it becomes eternal. To develop an expert system is to interview
an expert and make the system aware of their knowledge. In doing so, it reflects and enhances it.
LO1
Scenario
Criteria
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Assessment
Predictive modelling and forecasting is a process used in predictive analytics to create a
statistical model of future behaviour using a process of data mining in order to forecast
probabilities and trends. A predictive model is made up of a number of predictors, which are
variable factors that are likely to influence future behaviour or results. In marketing, for
example, a customer's gender, age, and purchase history might predict the likelihood of a future
sale.
 In predictive modelling, data is collected for the relevant predictors, a statistical model is
formulated, predictions are made and the model is validated (or revised) as additional data
becomes available. The model may employ a simple linear equation or a complex neural
network, mapped out by sophisticated software.
 Predictive modelling is used widely in information technology. In spam filtering systems, for
example, predictive modelling is sometimes used to identify the probability that a given
message is spam. Other applications of predictive modelling include customer relationship
management, capacity planning, change management, disaster recovery, security management,
engineering, meteorology and city planning.
Task 2 – P6.2 – Explain the different types of higher levels of IT Tools that can be used to analyse
information with examples of use.
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software (e.g. databases such as
CRM, ERP, KMS)
artificial intelligence and expert
systems
predictive modelling and
forecasting
LO1
Scenario
Criteria
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3
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Cube Systems is an IT company with a range of Mobile Data Collecting devices on the market. After a
period of years their hand scanners for Optical Character recognition have not become cost effective to
continue producing and a decision has been made to calculate the cost of discontinuing production. The
product that cannot sell at all and this must be part of the company’s contingency plans and decision
making process.
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In doing so, the company must consider what will happen to faulty products which need to be returned
or replaced. This eventual analysis of sales against discontinuing can be illustrated in a range of formats
but a simple Spreadsheet displaying a variety of products which have sold against Scanner sales,
returned or stock that is clearly not selling is a very visual method of proposing the discontinuation to
management. The proposal needs to highlight what decisions they would make to help to keep the
business profitable if it changes the current product range.
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Task 3 – P6.3 - Using a range of IT tool(s) to evidence the following purposes: (create, annotate and
evaluate the techniques used)
◦ An article for the company newsletter that focuses on the discontinuation of older technologies to a
make way for newer technologies already embraced by the industry. (DTP)
◦ A memo to the director, regarding an emergency boardroom meeting to discuss the breakdown of
the results of the predictive Modelling Program on company sales and the impact of continuing
production of loss leaders. (Word processing software)
◦ A chart/graph to represent the sales of the product/services offered by your business (Spreadsheet
software) Information can be created from the Database.
◦ Find a list of alternative scanning technologies on the market and future developments that might
assist the company in making a decision on production and R&D (Internet)
◦ A searchable list of recent and prior product sales in report and query form (Database)
◦ Present this information as a presentation using the gathered information and forms above.
(Powerpoint)
DTP
Word processing
Spreadsheet
Database
Internet
4
Powerpoint
5
Assessment
LO1
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Scenario
Criteria
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The reliability of information from external sources is vital for the correct decisions
within a company to be made. The aim of trustworthiness in a qualitative inquiry is to
support the argument that the inquiry’s findings are “worth paying attention to”. In any
qualitative research project, four issues of trustworthiness demand attention: credibility,
transferability, dependability, and confirmability.
Credibility is an evaluation of whether or not the research findings represent a
“credible” conceptual interpretation of the data drawn from the participants’ original
data.
Transferability is the degree to which the findings of research can apply or transfer
beyond the bounds of the project.
Dependability is an assessment of the quality of the integrated processes of data
collection, data analysis, and theory generation.
Confirmability is a measure of how well the inquiry’s findings are supported by the data
collected.
The trustworthiness and validity of a qualitative study can be increased by maintaining
high credibility and objectivity. We all know that Wikipedia is not trustworthy but we
still go there, it is credible, it looks true but this is not a guarantee. “It’s on the Internet
so it must be true” is the common saying
Task 4 – P6.3 - Using domain tools, evidence and discuss the reliability of your sources
use to prepare and present selected information.
Task 5 - M3.1 - Explain the value of a management information system that could be
used to predict future results. (CRM, ERP, KMS, AI Expert System or Predictive
Modelling)
4
5
Assessment
LO1
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
Scenario
Criteria
1
2
3
4
5
Assessment
Task 1 – P6.1 – Explain the different types of IT Tools that can be
used, with examples of use.
Task 2 – P6.2 – Explain the different types of higher levels of IT
Tools that can be used to analyse information with examples of
use.
Task 3 – P6.3 - Using a range of IT tool(s) to evidence the following
purposes: (create, annotate and evaluate the techniques used)
Task 4 – P6.3 - Using domain tools, evidence and discuss the
reliability of your sources use to prepare and present selected
information.
Task 5 - M3.1 - Explain the value of a management information
system that could be used to predict future results. (CRM, ERP,
KMS, AI Expert System or Predictive Modelling)
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