Topic: Introduction to information technology and information systems

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  • 10 Marks

BMIS – Mar 2023 – L1 – Q5a – Introduction to information technology and information systems

Differentiates between data and information and explains essential qualities of information.

One of the most important resources Management of an organization requires in order to make meaningful decisions is credible information which has often been wrongly referred to as data.

Required:
i) Distinguish between data and information.
(2 marks)
ii) Explain FOUR (4) essential qualities of information.
(8 marks)

i) Distinguishing Between Data and Information:

  • Data:
    Data consists of raw, unprocessed facts and figures that have little or no meaning on their own. Examples include numbers, dates, and strings of text that require processing to become useful. (1 mark)
  • Information:
    Information is data that has been processed, organized, or structured in a way that makes it meaningful and useful for decision-making. Information provides context and answers questions, thereby supporting management in making informed decisions. (1 mark)

ii) Essential Qualities of Information:

  1. Accuracy:
    Information must be reliable and free from errors. Accurate information ensures that decisions are based on correct data, leading to effective outcomes. Accuracy involves having the right data at the right level of detail. (2 marks)
  2. Timeliness:
    Information should be available when needed. Timeliness means providing information at the right time to support decision-making processes. Even accurate information loses its value if it is not provided in time. (2 marks)
  3. Completeness:
    Complete information includes all relevant data necessary for a decision. Incomplete information can lead to poor decisions as it might overlook critical factors. Completeness ensures that no important detail is missing. (2 marks)
  4. Understandability:
    Information should be presented in a format that is easy to understand by the intended user. Understandable information ensures that users can correctly interpret and use the data to make decisions. This involves clear presentation, appropriate language, and proper structuring of the information. (2 marks)
  • 10 Marks

BMIS – May 2017 – L1 – Q5a – Introduction to information technology and information systems

Introduction to information technology and information systems

 

There are a large range of information systems available to an organisation, each with different characteristics, reflecting the different roles they perform. Many systems do not fit neatly into a single category.

Required: Describe each of the five systems listed below:

i) Transaction Processing Systems
ii) Management Information Systems
iii) Executive Information Systems
iv) Decision Support Systems
v) Office Automation Systems
(10 marks)

i) Transaction Processing Systems (TPS):
TPS are used for routine tasks where data items or transactions must be processed to continue operations. They support most business functions across various organizations. TPS are sometimes referred to as data processing systems. Examples include sales order systems, payroll systems, and employee benefits systems.

ii) Management Information Systems (MIS):
MIS convert data from mainly internal sources into information, such as summary and exception reports. This information enables managers to make timely and effective decisions for planning, directing, and controlling organizational activities. MIS typically provide regular reports and access to the organization’s performance data.

iii) Executive Information Systems (EIS):
An EIS pools data from internal and external sources, making information available to senior managers in an easy-to-use form. It helps in making strategic, unstructured decisions. EIS typically provide senior managers with easy access to key internal and external information, summarizing and tracking critical strategic information.

iv) Decision Support Systems (DSS):
DSS combine data and analytical models or data analysis tools to support semi-structured and unstructured decision-making. They are intended to provide a wide range of alternative information-gathering and analytical tools, emphasizing flexibility and user-friendliness. DSS enable managers to analyze large volumes of data for decision-making.

v) Office Automation Systems (OAS):
OAS are designed to increase the productivity of data and information workers, supporting activities such as document management, communication, and data management. Examples include word processing software, digital filing systems, email, voicemail, and videoconferencing tools.

  • 10 Marks

BMIS – Dec 2023 – L1 – Q5a – Introduction to information technology and information systems

Explains five factors to consider before implementing a Management Information Systems (MIS) package.

You recently submitted a memorandum to the Operations Sub-Committee of the Board of Directors of your company recommending the installation and implementation of a Management Information Systems (MIS) package in order to enhance operational efficiency.

In response, the Committee has requested you to outline the conditions to be fulfilled before the package could be successfully implemented.

Required:

Explain FIVE (5) factors to be considered before the implementation of the MIS package.

Factors to Consider Before Implementing an MIS Package:

  1. Organizational Function:
    The functions to be performed by the organization will greatly influence the adoption and implementation of a particular MIS. The MIS must be aligned with the specific operational needs of the organization.
    (2 marks)
  2. Cost:
    It is essential to consider the total cost involved in purchasing the required infrastructure for the MIS. This includes both initial and ongoing costs to ensure that the implementation is financially feasible for the company.
    (2 marks)
  3. Scalability:
    The organization should consider how the MIS can be expanded to accommodate additional operations in the future if necessary. Scalability ensures that the system can grow with the company’s needs.
    (2 marks)
  4. Management Support:
    For the successful implementation of the MIS package, top management must be prepared to offer the necessary financial and non-financial support. This includes commitment from leadership to drive the implementation process.
    (2 marks)
  5. Security:
    It is important for management to take every practicable step to ensure maximum security for the MIS package, especially in light of potential threats from hackers. Adequate security measures must be in place to protect sensitive organizational data.
    (2 marks)
  • 4 Marks

BMIS – May 2017 – L1 – Q1c – Introduction to information technology and information systems

Describe four qualities of useful information.

c) To be useful, information requires a number of specific qualities. Information systems should therefore aim to produce information that possesses these qualities.

Required:
Describe FOUR qualities of a useful information.

(4 marks)

  • Accuracy: Figures in a report should add up, the degree of rounding should be appropriate, there should be no typographical errors, items should be allocated to the correct category, and assumptions should be stated for uncertain information. Information must be reliable.
  • Complete: Information should include everything relevant to the decision being considered. If relevant, comparative information should be included. Information should be consistent, for example, it should be collected on the same basis each time, to allow for meaningful comparison. Excessive information should be avoided.
  • Cost-effective: It should not cost more to obtain the information than the benefit derived from its use. Information collection and analysis should be efficient. Presentation should be clear, such that users do not waste time working out what the information means.
  • Understandable: The needs of the user are paramount. The information must be easy to read and well presented.
  • 10 Marks

BMIS – Aug 2022 – L1 – Q5a – Introduction to information technology and information systems

Explains five operational improvements that an organization can achieve by investing in information and communications technology (ICT) systems.

Quantum Manufacturing Ltd has invested GH¢1 million in information and communications technology systems to facilitate more effective operations which will result in operational improvements in their activities.

Required:

Explain FIVE (5) of such operational improvements.

Operational Improvements from ICT Investment:

  1. Improved Productivity:
    Investment in ICT systems can lead to increased overall organizational productivity by better managing manufacturing and operational activities.
    (2 marks)
  2. Cost Reduction:
    ICT systems can help reduce operational expenses by automating tasks that would otherwise be performed manually, leading to cost savings.
    (2 marks)
  3. Improved Information Management:
    ICT systems enhance the access, processing, storage, and distribution of information, aiding in better decision-making and control within the organization.
    (2 marks)
  4. Enhanced Administrative Efficiency:
    ICT systems, such as enterprise resource planning (ERP), enable the automation of processes across functional areas, improving the overall administrative efficiency of the organization.
    (2 marks)
  5. Improved Change Management:
    With ICT systems, organizations can implement changes more quickly and effectively, as machines are more adaptable to change than human resources, who may resist change to protect personal interests.
    (2 marks)
  • 10 Marks

BMIS – Nov 2020 – L1 – Q5a – Introduction to information technology and information systems

Describes five accounting information systems that could enhance the operational efficiency of a company.

The management of Marine Services Ltd intends to convert the existing manual accounting systems to an accounting information system to achieve its operational efficiency.

Required:

Explain FIVE (5) accounting information systems that could be used to enhance the operational efficiency of Marine Services Ltd.

Accounting Information Systems for Operational Efficiency:

  1. Order Processing System:
    This application records and processes customer orders and produces data for inventory control and accounts receivables. It helps in streamlining the order fulfillment process, ensuring accuracy and efficiency.
  2. Inventory Control System:
    This system processes data reflecting changes in inventory as well as shipping and re-order information. It helps in maintaining optimal inventory levels, reducing waste, and ensuring timely replenishment.
  3. Accounts Receivable System:
    This application records the amounts owed by customers and produces invoices and monthly information for them. It also provides monthly accounting transactions for customers, ensuring timely collection of receivables and improving cash flow management.
  4. Accounts Payable System:
    This system captures all purchases made by a company and tracks amounts owed to suppliers. It provides periodic statements to appropriate users, helping in managing payables and maintaining good supplier relationships.
  5. Payroll Administration System:
    This application facilitates the recording of employees’ outputs and other financial benefits, and provides periodic pay slips to them. It also generates periodic reports for management, ensuring accurate and timely payment of salaries and benefits to employees.
  • 20 Marks

BMIS – Nov 2015 – L1 – Q2 – Business and organisational structure, Introduction to information technology and information systems

Explain Business Process Re-engineering (BPR) and discuss how technology can change business activities.

CLife is a large manufacturing firm dealing in several product lines. Currently, there are plans to explore other foreign markets for its products. Forty staff are tasked with matching goods received notes with orders and then with invoices.

It has been observed that an appreciable length of time is spent trying to find out why some of the sets of three documents do not agree.

While some managers recommend the computerisation of the existing process to facilitate matching, others propose the use of Business Process Re-engineering.

a) Explain Business Process Re-engineering.

(3 marks)

b) State FIVE characteristics of a re-engineered business process. (5 marks)
c) Explain SIX examples of how technology can change the way business activities are conducted, with reference to the CLife scenario where appropriate. (12 marks)

a) Business process re-engineering (BPR) is the fundamental re-thinking and radical design of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service, and speed. BPR asks “why do we do what we do?” without making any assumptions or looking back at what has always been done in the past. It should also achieve very high performance and not just marginal incremental improvement. (3 Marks)

b) Characteristics of re-engineered business processes include:

  • Several jobs are often combined into one.
  • Workers are able to make decisions.
  • The steps in the process are performed in a logical order.
  • Work is performed where it makes most sense.
  • Checks and controls may be reduced, and quality ‘built-in’. (5 Marks)

c) Technology has changed the way business activities are conducted in a number of ways, including:

  • Shared databases make it possible for information to appear simultaneously in as many places as required. For example, orders entered into a database at CLife will facilitate matching with goods received notes and invoices.
  • The use of expert systems means that a generalist can do the work of an expert.
  • Telecommunication networks enable businesses to reap the rewards of centralisation and decentralisation simultaneously. CLife could easily engage in electronic data interchange (EDI) with its business partners.
  • Decision support tools mean that decision-making is part of everyone’s job. These tools will help CLife management in inventory decisions.
  • Wireless data communication and portable computers mean that field staff can send and receive information wherever they are, thus taking advantage of telecommuting.
  • Automatic identification and tracking technology will make it possible to locate certain assets wherever they are, and CLife can use this to track orders.
  • Through the use of the internet, CLife can apply electronic commerce to help in the more efficient handling of ordering and payment for goods. (12 Marks)

Total: 20 Marks

  • 6 Marks

BMIS – May 2021 – L1 – Q4b – Introduction to information technology and information systems

Explain the advantages of a Transaction Processing System (TPS) for a supermarket.

The Management of My Hope Enterprise Ltd, a family-owned supermarket with branches throughout the country, has refused to adopt modern communication technology in its operations, citing heavy initial capital outlay. You have decided to convince the General Manager of the firm who is your friend on the benefits to be accrued from the use of modern technology.
Explain FOUR (4) advantages of Transaction Processing System (TPS) to the General Manager of My Hope Enterprise Ltd.

Advantages of Transaction Processing System (TPS):

  1. Operational Efficiency: TPS facilitates the smooth operations of the supermarket by processing large volumes of transactions quickly and accurately, which enhances overall efficiency.
  2. Access to a Wider Market: By integrating TPS with internet capabilities, the supermarket can reach a broader customer base, allowing for online sales and better customer service.
  3. Activity Tracking: TPS helps information systems managers to keep track of all activities and transactions within the organization, providing valuable data for reporting and analysis.
  4. Backup and Data Integrity: TPS provides robust backup features that ensure data is securely stored and can be recovered in case of system failures, ensuring business continuity.
  5. Time-Saving: TPS can process large amounts of data within a short period, reducing the time required for transactions and improving customer service.
  6. Database Stability: In the event of network failure, TPS ensures that the information is stored securely in the database and transactions can resume once service is restored.
  • 4 Marks

BMIS – May 2021 – L1 – Q4a – Introduction to information technology and information systems

Explain the concept of Management Information System (MIS) and its benefits to a company.

The Management of My Hope Enterprise Ltd, a family-owned supermarket with branches throughout the country, has refused to adopt modern communication technology in its operations, citing heavy initial capital outlay. You have decided to convince the General Manager of the firm who is your friend on the benefits to be accrued from the use of modern technology.

Required:
a) Explain Management Information System (MIS) to the General Manager in order to convince him of the benefits that will accrue to the company from the use of modern technology.

Management Information System (MIS):
A Management Information System (MIS) is a system that digests data that has been fed into a computer and processes it into useful information for management to use in decision-making. This data consists of pieces of information such as facts, words, and figures. The MIS provides management with timely, relevant, and accurate information, which aids in making informed decisions, improving efficiency, and enhancing overall organizational performance.

  • 10 Marks

BMIS – May 2016 – L1 – Q7a – Introduction to information technology and information systems

State five advantages that would accrue to a firm from installing a Transaction Processing System (TPS).

You work as an accounts officer in a supermarket in Accra. The supermarket has recently witnessed a dramatic growth in its customer base. Management has therefore decided to install a Transaction Processing System (TPS) to cater for this growth. State FIVE advantages that would accrue to the firm with this decision.

i) Time Saving: TPS can process large volumes of data within a short period of time.

ii) Operational Efficiency: TPS will facilitate the smooth operations of the supermarket and will provide the base for other internal information systems.

iii) Database Stability: TPS facilitates database stability in the sense that in the event of network failure, the information will be stored in the database and the transaction will continue when service is restored.

iv) Activity Tracking: TPS assists information system managers and staff to keep track of all activities and transactions of the company, such as sales and receipts.

v) Access to a Wider Market: TPS will enable the supermarket to access potential customers to buy the goods when linked to the internet.

vi) Time Sharing: TPS facilitates the sharing of the system and its properties among multiple users working on the same transaction at the same time.

vii) Back-up: TPS provides the basic building blocks for other systems in that it has a backup in case of system failure.

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