Topic: Introduction to information technology and information systems

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  • 5 Marks

BMIS – Nov 2021 – L1 – Q5b – Introduction to information technology and information systems

Differentiate between explicit knowledge and tacit knowledge in an organizational context.

Organisational knowledge is the sum of all knowledge contained within an organisation that can provide business value. Organisational knowledge is composed of explicit knowledge and tacit knowledge.

Required:
Differentiate between explicit knowledge and tacit knowledge. (5 marks)

Explicit Knowledge:
Explicit knowledge refers to knowledge that is formalized, documented, and easily transferable across individuals and departments within an organization. It is the type of knowledge that can be written down and stored in databases, manuals, documents, or other formats that make it easily accessible and shareable among employees. Examples of explicit knowledge include company policies, standard operating procedures (SOPs), technical manuals, financial reports, and databases of customer information. This type of knowledge is often structured and organized in a way that allows it to be retrieved and used by others who need it. Because explicit knowledge is codified, it is easier to transmit across time and space, making it highly valuable in large organizations where information needs to be consistent and easily accessible.

Tacit Knowledge:
Tacit knowledge, on the other hand, is the knowledge that is personal, context-specific, and often difficult to formalize or communicate. This type of knowledge is rooted in individual experience, intuition, insights, and the skills that are often developed over time through personal involvement in specific tasks or activities. Unlike explicit knowledge, tacit knowledge is not easily articulated or shared because it is deeply ingrained in an individual’s actions, behaviors, and perceptions. For example, a seasoned employee might have a deep understanding of how to manage complex customer relationships or troubleshoot a specific piece of equipment, but this knowledge is based on years of hands-on experience and is not easily documented or transferred to others. Sharing tacit knowledge typically requires close interaction, mentoring, or apprenticeship, where the less experienced learn through observation and practice rather than through written or verbal instructions.

(2 detailed explanations @ 2.5 marks each = 5 marks)

  • 5 Marks

BMIS – Nov 2021 – L1 – Q3b – Introduction to information technology and information systems

Explain the applications of Transaction Processing Systems and Decision Support Systems in business organizations.

Explain the following applications of information technology in business organizations:
i) Transaction Processing System.
ii) Decision Support System. (5 marks)

Applications of Information Technology in Business Organizations

i) Transaction Processing System (TPS):
A Transaction Processing System refers to any information system that supports the monitoring, collection, storage, and processing of data from an organization’s primary business transactions, each of which generates data. A transaction processing system is used to collect and process daily transactions of an organization. TPS serves as an input for an organization’s customer relationship management, business intelligence, and knowledge management.

ii) Decision Support System (DSS):
A Decision Support System is an information system that aids managers in making decisions based on built-in models. The objective of a Decision Support System is to support managers in their work with reference to all decisions at the management level.

(2.5 marks for each = 5 marks)

  • 10 Marks

BMIS – May 2019 – L1 – Q6a – Introduction to information technology and information systems

Identify and explain controls for network and communication security.

In a sophisticated business environment, computer systems are exposed to security risks that threaten the security and integrity of both the system and the data held in it. The risks associated with hackers, eavesdroppers, and viruses can be minimized through a variety of controls that provide network and communication security.

Required:
Identify FIVE (5) controls that can provide network and communication security and comment on each one of them. (10 marks)

Controls for Network and Communication Security

  1. Anti-virus software:
    Anti-virus software, such as McAfee or Norton, searches systems for viruses and removes them. These programs include an auto-update feature that downloads profiles of new viruses, enabling the software to check for all known or existing viruses. Very new viruses may go undetected by anti-virus software until the software vendor updates their package and the organization installs the update.
  2. Firewall:
    External email links can be protected by a firewall, which may be configured to virus-check all messages and may also prevent files of a certain type, such as .exe files, from being sent via email. Firewalls can be implemented in both hardware and software, or a combination of both, and they disable part of the telecoms technology to prevent unauthorized intrusions.
  3. Encryption:
    Data transmitted across telecommunications links is exposed to the risk of being intercepted or read during transmission, known as ‘eavesdropping.’ Encryption reduces this risk by scrambling the data at one end of the line, transmitting the scrambled data, and unscrambling it at the receiver’s end of the line. A person intercepting the scrambled data is unable to make sense of it.
  4. Electronic signatures:
    Electronic signatures can be provided using public key (or asymmetric) cryptography. Public key cryptography uses two keys: public and private. The private key is only known to its owner and is used to scramble the data contained in a file. The received ‘scrambled’ data is checked against the original file using the public key of the person who signed it.
  5. Authentication:
    Authentication ensures that a message has come from an authorized sender by adding extra data in a form previously agreed upon between the sender and recipient.
  6. Dial-back security:
    Dial-back security operates by requiring the person wanting access to dial into the network and identify themselves first. The system then dials the person back on their authorized number before allowing access.

(6 points well explained @ 1.67 marks each = 10 marks)

  • 5 Marks

BMIS – Nov 2016 – L1 – Q6a – Introduction to information technology and information systems

Differentiate between Decision Support Systems (DSS) and Executive Information Systems (EIS).

How can you help your boss who has no knowledge in information technology to differentiate between Decision Support System (DSS) and Executive Information System (EIS)? (5 marks)

  • Decision Support System (DSS): A DSS is an information system designed to provide managers with alternative solutions to a problem they face. (2 marks)
  • Executive Information System (EIS): An EIS is an interactive system that provides managers or executives with flexible access to information for monitoring the performance of the organization as well as general business conditions. (2 marks)
  • Difference: While Decision Support Systems are specifically used for unstructured decisions, Executive Information Systems may provide information (often in graphical format) that can inform top management on trends within the organization. (1 mark)

Grand total: 5 marks

  • 20 Marks

BMIS – Nov 2018 – L1 – Q1 – Introduction to information technology and information systems

Discuss the roles, features, testing, and benefits of a new enterprise-wide information system for Financial Service Overseas (FSO).

Financial Service Overseas (FSO) is a regulator of all companies providing financial services. It currently uses ‘stand-alone’ or unrelated software applications to manage its business processes. The business processes include procurement, inventory control, accounts, clients, and monitoring. It is now considering whether an enterprise-wide system is a suitable replacement for all the unrelated software applications.

Required:

a) Identify FOUR (4) roles the new information system may play in FSO. (4 marks)

b) Explain TWO (2) features of an ‘enterprise-wide’ system. (4 marks)

c) Describe the types of test that should be conducted before the new information system goes ‘live’. (4 marks)

d) Describe THREE (3) benefits an information system built around a database should bring to an organization. (8 marks)

 

a) Roles that the new system may play in the company are:

  • Planning future operations: The system can help in forecasting and planning future business operations based on historical data and trends.
  • Recording transactions: The system will ensure that all financial and operational transactions are accurately recorded in a centralized manner.
  • Performance measurement: It can compare actual results against planned objectives, helping in the evaluation of business performance.
  • Decision support: It provides critical data and insights to senior management to make informed business decisions.

(4 points for 4 marks)

b) Features of enterprise-wide system:

  • Coordination of business functions: Enterprise-wide systems are designed to integrate and coordinate all business functions, resources, and information across the organization.
  • Minimized duplication of information: These systems reduce the risk of duplicating information by using a common database shared across different business areas.

(2 points for 4 marks)

c) Testing should include:

  • User acceptance testing: To ensure that the system meets user requirements and expectations.
  • Volume tests: To verify that the system can handle the expected volume of transactions and data processing.
  • Realistic tests: To simulate real-world scenarios and data to test the system’s functionality.
  • Contrived tests: To assess how the system handles unusual and unexpected events.

(2 points for 4 marks)

d) Benefits of information systems based around a database include:

  • Reduced data duplication/data redundancy: Centralized data management reduces the chances of duplicate or redundant data entries.
  • Provision of tailored reports: The system allows for flexible reporting, such as generating reports on slow-moving products or supplier performance.
  • Ease of access to information for staff: Quick retrieval of information to respond to customer inquiries or internal needs.
  • Enhanced security: Centralized data management improves data security by controlling access and monitoring data usage.
  • Reduced IT maintenance costs: Centralized data maintenance simplifies IT tasks, reducing overall maintenance costs.

(3 points for 8 marks)

  • 10 Marks

BMIS – March 2024 – L1 – Q5a – Introduction to information technology and information systems

Explain five measures to ensure the reliability of a new information system being developed by Marine Trust Company for improved performance.

The management of Marine Trust Company is developing a new information system to facilitate excellent performance and effective customer service.

Required: Explain FIVE (5) measures to ensure the reliability of the new system. (10 marks)

Reliability of Information System

  • Network connections: The management of the company should ensure that there is constant and consistent network connections. This can be done by making sure the connectivity infrastructure in the company is always functional to avoid unnecessary downtimes.
  • Availability of expertise: There is the need to ensure the required personnel with the needed expertise are made available to facilitate efficient and constant operations and also to rectify all faults when they occur.
  • Data security: There is the need to ensure that organisational and customer details stored in the company’s database is protected. This is to prevent the incidence of unauthorised persons hacking into the system to steal or tamper with such details.
  • Back-up: There should be an efficient back-up system for the existing information system. This will ensure that the operational information system will have a support in case there is break down in the transmission of the main system.
  • Regular update and upgrading of software and hardware: The management of the company should ensure that there is constant update and upgrading of the software and hardware for the information system. This is to ensure that customers are provided with efficient services.
  • 10 Marks

BMIS – July 2023 – Q5a – Introduction to information technology and information systems

Explain a Transaction Processing System and describe four of its characteristics.

The company in which you work as Clients’ Services Manager has recently registered a steep growth in its customer base. To cater for this level of growth and future occurrences, you have decided to recommend to management to consider the acquisition and installation of a Transaction Processing System (TPS).

Required:
i) Explain a Transaction Processing System. (2 marks)
ii) Explain FOUR (4) characteristics of a Transaction Processing System. (8 marks)

i) Definition of Transaction Processing System (TPS):
A Transaction Processing System (TPS) is an information system that keeps track of the transactions required to conduct business. It is usually computer-based.

ii) Characteristics of a Transaction Processing System (TPS):

  1. Detailed Reports: TPS produces detailed reports on specific information about routine business activities.
  2. Transaction Data Inputs and Outputs: Inputs to the system are transaction data, whereas outputs consist of processed transactions.
  3. Departmental Ownership: Each functional unit or department can own its TPS.
  4. Support for MIS: The database of transactions stored on a TPS is used to support the Management Information System (MIS) of an organization.
  5. Operational Importance: It is of immense importance to managers and supervisors because it deals with day-to-day business matters.
  • 10 Marks

BMIS – Nov 2017 – L1 – Q4a – Introduction to information technology and information systems

Identify five ways in which IT and IS might improve Akosua Textiles Ltd.'s operations.

a) Akosua Textiles Ltd has grown from a hand weaving “kente” factory to a modern textiles and fabric processing company with shops spreading across the country. The company faces a lot of system challenges, and the Board appointed a systems expert to conduct a review of systems and technology within the company.

The findings of the expert were:

  • The systems are generally weak and the benefits of modern software applications are lacking.
  • The accuracy and completeness of information received by head office from shops need to improve.
  • The existing financial system is struggling to cope with the rapid growth of sales.
  • Common computerized stock records will also be required for proper inventory management and control.
  • Internet possibilities are being missed and there is no virtual network.

Required:
Identify FIVE ways in which Information Technology and Information Systems might improve Akosua Textiles Ltd.
(10 marks)

  • Establish a Well-Designed Website: Akosua Textiles could invest in a website to provide information to customers, enhance the brand, offer online booking for optical appointments, and sell own-brand products. The site should include e-commerce and be a key marketing tool integrated with back-office systems.
    (2 marks)
  • Establish a Wide Area Network (WAN): By linking computers at shops together, a WAN would facilitate improved communication and collaboration between shops. It would enable data and information sharing quickly and effectively, providing a platform for organization-wide systems.
    (2 marks)
  • Implement a New Integrated Sales, Stock, and Financial System: A common stock and point-of-sale system, integrated into the proposed new financial system, would save time analyzing and searching for information in shops and enable quicker and more accurate production of financial information.
    (2 marks)
  • Introduce Consistent, Simplified Operational Procedures: The new sales system should include an Electronic Funds Transfer at Point of Sale (EFTPOS) system. This would enable staff to process sales more efficiently, improving customer service and reducing time spent on accounting and administration tasks.
    (2 marks)
  • Implement an Executive Information System (EIS): An EIS would enable senior managers to produce tailored high-level information to support strategic decisions. The software should facilitate the monitoring of Key Performance Indicators (KPIs) linked to Critical Success Factors (CSFs).
    (2 marks)
  • 16 Marks

BMIS – Nov 2017 – L1 – Q2b – Introduction to information technology and information systems

Illustrate how businesses use MIS in Finance, Manufacturing, Sales, and Human Resources.

b) Businesses use Management Information Systems (MIS) in their operations. Illustrate with ONE example each of how businesses use MIS in the following functional areas:
i) Finance and Accounting
ii) Manufacturing and Production
iii) Sales and Marketing
iv) Human Resource Management
(16 marks)

i) Finance and Accounting:
Finance and accounting information systems assist in maintaining records relating to the flow of funds in the firm by producing financial statements. Examples of financial statements include cash flow forecasts and income statements.
(4 marks)

ii) Manufacturing and Production:
Manufacturing and production information systems assist in the collection and supply of data to operate, monitor, and control the production systems, including the purchase of raw and other materials. An example would be material handling, material planning, and inventory control systems.
(4 marks)

iii) Sales and Marketing:
Sales and marketing information systems support the sales and marketing function by enabling the effective and efficient movement of goods and services from producers to end users. An example is sales support systems that keep customer records.
(4 marks)

iv) Human Resource Management:
Human resource information systems assist with recruitment, placement, compensation, and career development of employees within the organization, such as personnel records keeping, applicant tracking, and training updates.
(4 marks)

  • 4 Marks

BMIS – Nov 2017 – L1 – Q2a – Introduction to information technology and information systems

Convince a CEO about the benefits of investing in Management Information Systems (MIS).

a) Your friend who is the Chief Executive Officer of a food processing company recently discussed with you the need for his organization to adapt to technological changes by investing in Management Information Systems (MIS). His problem, however, is that the benefits that will accrue to the business may not justify the costs involved in such huge investments.

Required:
Convince your friend by stating FOUR benefits that will accrue to the company for investing in such a project.
(4 marks)

  • Better Administration and Coordination: MIS will lead to better administration and coordination within the firm.
  • Enhanced Public Image: The implementation of MIS will enhance the public image of the organization.
  • Improved Decision Making: MIS improves decision-making processes by providing timely and accurate information.
  • Closer Relationships Among Employees: The use of MIS can lead to closer relationships among employees by fostering better communication and collaboration.

(4 marks)

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