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					Jonathon Morris
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  Information Systems In Organisations




                     Module Leader: Jyoti Bhardwaj
                                 j.bhardway@naiper.ac.uk


                                            Supported by:




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DATA, INFORMATION AND KNOWLEDGE.................................................................................. 4
    IMPORTANCE OF INFORMATION ............................................................................................................ 4
    DATA .................................................................................................................................................... 4
    DATA TYPES ......................................................................................................................................... 4
    DATA STORAGE QUANTITIES................................................................................................................. 4
    DATA MODELLING ............................................................................................................................... 4
    DATA MODELS ...................................................................................................................................... 5
    ENSURING GOOD QUALITY .................................................................................................................... 5
    INFORMATION....................................................................................................................................... 5
    GOOD INFORMATION ............................................................................................................................ 5
    THE LINKS BETWEEN DATA, INFORMATION AND KNOWLEDGE .............................................................. 5
LECTURE TWO .................................................................................................................................... 6
    A SYSTEM ............................................................................................................................................ 6
    GENERAL SYSTEMS THEORY ................................................................................................................ 6
    FEATURES OF THE SYSTEM APPROACH .................................................................................................. 6
    SUB-SYSTEM HIERARCHIES .................................................................................................................. 6
    SUB-SYSTEM OVERLAPS ...................................................................................................................... 7
    OPEN AND CLOSED SYSTEMS ................................................................................................................ 7
    CHARACTERISTICS OF OPEN SYSTEMS................................................................................................... 7
    SYSTEMS INPUTS AND OUTPUTS ............................................................................................................ 8
    SYSTEM BOUNDARY ............................................................................................................................. 8
    THE ENVIRONMENT OF SYSTEMS .......................................................................................................... 8
    CLOSED SYSTEM .................................................................................................................................. 9
    RELATIVELY CLOSED SYSTEMS AND OPEN SYSTEMS ENVIRONMENT..................................................... 9
    CONTROL PROCESSES ........................................................................................................................... 9
    MISSING LECTURE SLIDES {DAY OFF} .............................................................................................. 9
    SPAN OF CONTROL ............................................................................................................................. 10
    CONFIGURATION AND NUMBER OF LEVELS ......................................................................................... 10
    CHARACTERISTICS OF FLAT ORGANISATION STRUCTURES .................................................................. 10
    CHARACTERISTICS OF TALL ORGANISATION STRUCTURES .................................................................. 10
LECTURE THREE .............................................................................................................................. 11
    THE DEFINING CHARACTERISTICS OF ORGANISATIONS ....................................................................... 11
    THE FORMAL ORGANISATION............................................................................................................. 11
    THE INFORMAL ORGANISATION ......................................................................................................... 11
    SPECIALISATION: ................................................................................................................................ 12
      Functional Specialisation ............................................................................................................. 12
      Geographical Specialisation ......................................................................................................... 12
             Advantages include .................................................................................................................................. 12
             Disadvantages include.............................................................................................................................. 12
        Product and Service Specialisation .............................................................................................. 12
             Advantages include .................................................................................................................................. 12
    MATRIX (TEAM) STRUCTURES ............................................................................................................ 12
    SPAN OF CONTROL ............................................................................................................................. 13
    CONFIGURATION AND NUMBER OF LEVELS ......................................................................................... 13
LECTURE FOUR ................................................................................................................................ 13
    HARD & SOFTWARE ISSUES IN ORGANISATIONAL PROBLEMS ............................................................. 13
    HARD PROPERTIES.............................................................................................................................. 13
    SOFT PROPERTIES ............................................................................................................................... 14
    APPLYING SYSTEMS THINKING TO ORGANISATIONS .......................................................................... 14
    USING SYSTEMS TERMS TO MODEL REALITY ....................................................................................... 14
    ORGANISATIONS AS SOFT SYSTEMS .................................................................................................... 14
    STAKE HOLDER PERSPECTIVES IN SYSTEMS. ....................................................................................... 14
    MAIN STAKE HOLDERS IN IS DEVELOPMENT ....................................................................................... 15
    SOCIO-TECHNICAL SYSTEMS THEORY ................................................................................................ 15
    THE EXTERNAL ENVIRONMENT OF SYSTEMS ..................................................................................... 15



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    THE EXTERNAL ENVIRONMENT OF SYSTEMS ..................................................................................... 16
    ECONOMIC ENVIRONMENT ................................................................................................................. 16
    SOCIAL ENVIRONMENT....................................................................................................................... 16
    POLITICAL ENVIRONMENT .................................................................................................................. 16
    PHYSICAL ENVIRONMENT................................................................................................................... 16
LECTURE FIVE .................................................................................................................................. 17
    ACTORS IN THE ECONOMIC ENVIRONMENT ......................................................................................... 17
    PEST .................................................................................................................................................. 17
    SWOT ................................................................................................................................................ 17
LECTURE SIX ..................................................................................................................................... 17
    ORGANISATIONAL CULTURE ............................................................................................................... 17
    HANDY‟S FOUR MAIN CULTURE TYPES (1993) .................................................................................. 18
    CENTRALISATION AND DECENTRALISATION....................................................................................... 18
    CENTRALISATION ............................................................................................................................... 18
    DECENTRALISATION ........................................................................................................................... 19
    COMPETING VALUES MODEL (QUINN ET AL 2003) ............................................................................. 19
    OPEN SYSTEMS (EXTERNAL, FLEXIBILITY) ........................................................................................ 20
    RATIONAL GOAL (EXTERNAL, CONTROL) .......................................................................................... 20
    INTERNAL PROCESS (INTERNAL, CONTROL) ....................................................................................... 20
    HUMAN RELATIONS (INTERNAL, FLEXIBILITY) .................................................................................. 20
LECTURE SEVEN .............................................................................................................................. 20
    ORGANISATION DATABASES .............................................................................................................. 21
    CORE INTERNAL SYSTEMS.................................................................................................................. 21
    ENTERPRISE RESOURCE PLANNING (ERP SYSTEMS) .......................................................................... 21
    DATA WAREHOUSE ............................................................................................................................ 22
LECTURE EIGHT ............................................................................................................................... 22
    MANAGERS INFORMATION NEEDS ...................................................................................................... 22
    INFORMATION ASSISTS MANAGEMENT IN SEVERAL WAYS ................................................................ 22
    LEVELS OF MANAGEMENT ................................................................................................................. 23
    MANAGEMENT INFORMATION SYSTEMS............................................................................................. 23
    DECISION SUPPORT SYSTEM (DSS) .................................................................................................... 23
       They Use ....................................................................................................................................... 23
       Using (DSS) .................................................................................................................................. 24
       DAVID WESTLAKE.................................................................................................................. 25
    POLAND .............................................................................................................................................. 25




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Data, Information and Knowledge
Importance of information
        The need for information reflects the fact that organisation are OPEN
         SYSTEMS interacting with their environment
        They draw resources from the external environment (INPUTS) transform them
         by means of PROCESS into OUTPUTS and pass them back to the
         environment.
        The transform of inputs into outputs constitutes the key processes and
         activities of all organisations
        Information enables organisations to make decisions regarding processes and
         to meet the challenges of the changing environment (such as technology,
         market trends, laws & regulations)
        Information is replacing fossil fuels such as coal and gas as the primary
         resource for economic success in the post-industrial era/
        Human society has developed a succession of technologies that make
         information available more widely and more cheaply.

Data
        Refers to recorded descriptions of things, events, activities and transactions
         (e.g.: customers size, colour, weight, date)
        Raw or basic data are often records of the day to day transactions.

Data Types
        Most data in commercial is can be called STANDARD DATA
        Standard data types are text (strings of symbols), numbers (integer, decimal &
         real numbers), units of time and more complex data types such as images
         (graphics and photographical), audio & video

Data storage quantities
        Data types are coded in modern ICT systems using bits (binary digits) in sets
         of eight bits to a BYTES
        Capacities of ICT storage devices e hard drives, memory sticks are in
         Memory Size                Short Hand              Compared to bytes
         One Kilobyte               KB                      One thousand bytes or
                                                            (10)
         One Megabyte               MB                      One million bytes or (10)
         One Gigabyte               GB                      One billion bytes or (10)
         One Terabyte               TB                      One trillion bytes or (10)

Data Modelling
        A DATA MODEL establishes the set of principles for representing &
         organising the storage of data
        The syntax of any data model can be described as a hierarchy of three levels.
        A DATA ITEM is the lowest level & cannot be dividend any further.
        A DATA ELEMENT is a logical collection of data item.



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        A DATA STRUCTURE is a logical collection of data elements.

Data models
             The most common model for data storage in organisations.
             Denotes the architecture for a particular database & DATABASE
              MANAGEMENT SYSTEM (DBMS)
             Uses the interrelated constructs of fields, records & files.
                 o Fields correspond to data item
                 o Records are data elements
                 o Files are data structures

Ensuring good quality
   DATA VALIDATION is the process of ensuring that data captured and stored in
    an is actuality reflected its domain; validation rules are built into the system
   DATA VERFICATION normally refers to the process of ensuring that data
    entered and transmitted correctly.

   Module name           Level                  Course Code       Staff no.
Business                 1                      BIS               244
information
systems
Database systems         1                      BIS               244         Data element
Business analysis        3                      BIS               445
Informatics              3                      BIS               NULL
management
Project                  2                      BIS               247
management                                                                         Data
                                                                  Data Item        Structure

Information
        Is data plus sense making
        Is a subset of data that means something to the person receiving it, which they
         judge to be useful, significant or urgent?
        Comes from data that has been analysed summarised, filtered or otherwise
         processed (by people of technology) so that it has value for the recipient.

Good Information
        More information does not necessarily lead to better quality information.
        Managers need information that is relevant to the activities being managed or
         controlled.
        The presentation of information is important and requires
            o Clarity so it is easy to understand for its intended purpose.
            o The appropriate medium (e.g. textual report, graph, table)

The links between data, information and knowledge




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                                                                            Person‟s prior
                                                                            learning
                                                                            experience




 Data: Raw,              Data transformation:
                         Through people,                          Information:               Knowledge:
 unanalysed                                                            Has                   predisposes
  facts and              procedures,
                         hardware, software,                      meaning for                   people
   figures                                                         the receiver                towards
                         paper, etc




Lecture Two
A System
A Coherent set of interdependent components which exists for some purpose has
some stability, and can usefully be viewed as a whole. (Beynon-Davies, Page2)


General Systems Theory
        Terms coined by Bertalanffy (1951) the discipline of GST formulates
         principles that apply to all system.
        System ideas have had a significant impact on organisational and management
         science e.g. Emery and Trist‟s socio-technical system theory (1960)
        Complexity theory (e.g. Stacey 1991) arising from systems thinking is
         interested in how complex systems evolve and are organised (Beynon-Davies
         Page 38)


Features of the system approach
        All systems are composed of inter-related parts (sub-systems) and the system
         can only be explained as a whole (holism)
        The whole system is more than the sum of its individual parts (Synergy)
        When appropriate parts are combined , properties appear from the whole that
         the parts alone do not passes (emergent properties) (Beynon-Davis Page 37)


Sub-System Hierarchies
        We can view systems on number of levels where parts of a sub-system are
         made up of other smaller parts.
        Sub-systems should work towards the goal of their higher system (goal
         congruence) and not peruse their own objectives independently to the
         determined of the overall system (sub-optimality)




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                                              System


  Accounts                Sales Order                     Production
                          Processing



  Sales          Purchase                             Material     Operations
  Ledge           Ledge                              Production     Control
Processing      Processing



                              Manufacturing            Assembly
                                Process                 Process



 Sub-System Overlaps
                                                National Warehouse
                                                System



                                                   The Company                        The Local
                                                   Warehouse Sub-           Distribution System
             The Company
             System                                system




 Open and closed systems
         There exist closed systems i.e. those that are isolated from their environment.
          This idea can only be strictly applied to mechanical and physical systems with
          controlled inputs etc.
         Organisations are social systems. All social systems are open systems which
          have interaction with their environment the way that an organisation adapts to
          change in the environment is the key to its success


 Characteristics of open systems
         Systems of this type are generally follow the transformational or input-
          process-output model composed of:
             o A number of inputs and outputs from agents in the environment and
             o A number of operational processes or transformations as well
             o One or more control processes


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Systems inputs and outputs
        Systems inputs and outputs are specific and can be almost anything but mainly
         fall under one of the distinct broad categories:
              o Materials
              o Energy
              o Labour power
              o Information
              o Decisions
              o Money


        Important Planning Inputs                                     Important Planning Outputs
         Labour                                                       Finished Products
         Hours
         Raw Materials                                   A
         Machinery
                                                      Production
                                                       Process
        Less Important Inputs                                         Less Important Outputs
         Welfare                                                      Waste
         Social Facilities                                            Noise



        It is possible to consider the inputs and outputs as consisting of two types of
         flow physical & non-physical flows.
        Physical flows are material things to and from the environment e.g. plant,
         machinery, foodstuff
        Accompanying the flow of physical material is non-physical information


System Boundary
        Defining a system means deciding what is included within its system
         boundary, what is in its environment
        If we consider an organisation as a system, we might define its boundary in
         terms of activities. Preformed by its member with the activities of its
         customers & suppliers as not part of the system but instead part of the
         environment


The environment of systems
        Inputs come from and outputs are transferred to the environment of a system.
        The environment is defined as elements lying out with the boundaries of the
         system, changes in whose properties affect the state of the system and those
         external elements which are changed by the systems behaviour
        Environment is not a geographical concept


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Closed System
                                  Closed System
                                No Exchanges with the
                                    environment




Relatively closed systems and open systems environment
      INPUTS                                                               OUTPUTS
   Known &                                                               Known &
   Prescribed                                 Closed System              Prescribed
                                       Exchange with the environment




   Known                                        Open System              Predicted
   Unknown                              Subject to known & unknown       Unpredicted
   Disturbance                            inputs and environmental
                                                 disturbances




Control Processes
        (Beynon-Davies p48) discusses control as a monitoring sub-system that
         „steers‟ the behaviour of other operating sub-systems
        The control process ensures defined levels of performance for the system
         through use of a number of control inputs.
        In human-designed systems, controls are imposed; controlling natural systems
         emerges through process of self-organisation.


Missing Lecture Slides {DAY OFF}




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Span Of Control
        Is the number of subordinates over which a manager as direct control “in an
         established relationship of power and authority” (Beynon-Davies 2009)
        Smaller spans of control are favoured in technical, professional ad managerial
         spheres.
        Larger spans of control are more likely where the work is routine, eg “shop
         floor”
        However: the ideal span of control can vary even in single situation,
         depending on complexity of the work, ability of subordinates. To work
         unsupervised, riskiness of the work, skill of the manager.


Configuration and number of levels
        The number of levels between the “workers” and top management determines
         the configuration or shape of the organisation
        The shape can range from nearly flat for small businesses and workers‟ co-
         operatives to tall for the civil service and armed services
        Organisations sometimes try to decrease the number of levels in order to
         promote easier communication and improve co-ordination.


Characteristics of flat organisation structures




        Indicative of smaller organisations (but not always)
        Few levels of authority and management
        Sort chain of command
        Tendency to suit mass production operations
        Broad span of control (especially in manufacturing organisations)


Characteristics of tall organisation structures
        More prevalent in large organisations
        Numerous levels of authority and management
        Narrow span of control
        Long chain of command
        More formality, specialisation and standardisation.




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Lecture Three
The defining characteristics of organisations
             It is difficult to predict how people will work and act/react within an
              organisation – we are SOFT systems.
             Organisations have porous boundaries; that is to say, information flows in
              and out.
             External factors can be difficult to measure or control.
             Organisations have purpose - i.e. they are not just random collections of
              people - they have mission statements defining their purpose (“We aim to
              please” or “Tijuana or bust”).
             Organisations also have structure and a hierarchy – formal patterns of
              relationships – chain of command.
             They practice Division of labour – “We bundle tasks and responsibilities
              into defined roles and assign them to people” (BD P59).
             They specify a formal source of authority (ie “The Boss”)

The Formal Organisation
             A formal pattern of relationships is defined by official roles, policies and
              systems.
             It dictates official communications channels.
             Often the person in charge has their authority as a result of access to
              technology and the information it holds (information = the ability to
              make decisions = power / autonomy).
             A formal organisation is designed to meet its objectives in the most
              efficient manner.
             Efficiency is defined as Maximum Output @ Minimal Cost.
             A formal organisation is often depicted in hierarchical diagrams and
              organisational charts; these show the reporting relationships between
              departments and functions and different levels of management.
             (See figure 2 and 3 of handout)

The Informal Organisation
             Informal organisations exist to some degree within EVERY organisation
              (even one person outfits – think “Off the books transactions / free to
              friends etc).
             Social groups develop behaviour patterns, beliefs and objectives which are
              different from those of the formal organisation in which they operate.
             Informal organisations exist because formal relationships are considered
              too impersonal.
             They provide a power base for those dissatisfied with their official
              influence.
             Informal channels can arise because the formal channels are not flexible,
              fast or credible enough.




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Specialisation:
             Specialisation arises from the division of labour (organising functions into
              departments).
             In almost all organisations, tasks and activities are divided and grouped
              into departments (Departmentation).
             This helps employees to specialise and become very proficient and gives a
              support network and a career ladder; it raises organisational efficiency.
             We can concentrate resources within these departments (Marketing
              databases, sales systems, technical helpdesks etc).
             As the organisation grows in size and complexity, there is more
              specialisation and division.

Functional Specialisation
             Functional Specialisation is the most widely practiced form of
              specialisation.
             Tasks are linked on the basis of common functions: Production, HR,
              Finance etc.
             It is widely encountered and therefore readily accepted by employees.

Geographical Specialisation
             Geographical Specialisation is increasingly the case in a global economy
              where the activities of organisations may be dispersed across countries
              eg: Production based in China or India.
             In these structures, the organisation is divided up on a regional basis and
              local management is given responsibility for each region / country.

         Advantages include
                 On the spot decision making using local knowledge.
                 Lower operating costs eg Staff, transport and storage.
                 Speedier reactions to changes in local markets and consumer
                  preferences.

         Disadvantages include
                 Loss of visibility and control at head office.
                 Duplication of key activities resulting in higher costs – however
                  FINANCE remains centralised.
    Product and Service Specialisation

         Advantages include
                 Development of specialist expertise.
                 Diversification and implementation of technical change can be easier.
                 Responsibility for whole product or service can be clearly and easily
                  identified.

Matrix (Team) structures
        Matrix structures work very well in project based organisations (see fig 3).



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        In matrix structures, a project team headed by a designated project manager
         combines the skills of people from each of the functions - these are ad-hoc
         structures and functions; that is, they are brought together for a specific
         purpose / task and disbanded once the task is complete.
        The Matrix structure combines stability with flexibility and innovativeness.

Span of Control
        The structure of an organisation is characterised by a heirachy; Span of
         Control is the number of people a manager has direct control of in “an
         established relationship of power or authority” (BD P59).
        Smaller spans of control are favoured in Tech organisations; larger spans of
         control in factory environments.
        This can vary even in a single situation depending on the complexity of the
         task.

Configuration and number of levels
        The Civil Service and Armed Forces are “Tall” organisations; that is, they have
         a lot of levels between entry level and senior management.
        Co-operatives are an excellent example of “Flat” organisations.
        Small Businesses are almost completely flat.
        The overall trend is toward flattening organisations to promote easier
         communications.
        An example of the advantages gained by a flattened structure would be an
         insurance company branching out into dental and pet insurance with the
         potential to sell to an existing customer base; this would be impossible to
         achieve unless everyone was on-board in the company – ie good
         communications are required.



Lecture Four
Hard & Software issues in organisational problems
        The systems approach to organisational problems requires us to consider both
         hard & soft properties
        We may want an organisation to behave in a controlled, predictable fashion
         but the presence of people causes the opposite: people, though they can be
         counted recorded & allocated to tasks like a hard property, behave as a soft
         party.
        To a greater or lesser extend any system in an organisation will contain soft
         elements.

Hard Properties
        Hard properties are those elements within a system that can be defined
         measured or assessed in an objective way.
        At operational levels certain systems can be considered hard for example,
         where the structure of the system is well known.


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        Hard problems are clearly defined and quantities decision methods are suitable
         for problem solving.
        An inventory Control System could be considered hard; it is relatively &
         mechanistic (Define: not organic)


Soft Properties
        Soft properties are more imprecise & at matters of subjective opinion &
         individual values; they are open to interpretation
        Soft systems can be characterised to change by vagueness and irrationality;
         objects are hard to define & subject to change.
        Decisions making is more uncertain, measures of performance most often be
         formed in quantities terms & systems must recognise the conflicts, aspirations
         & irrationalities of human behaviour.
        Sub-optimality occurs within soft properties.


Applying Systems Thinking to Organisations
        Considered as a whole an organisation can be seen as a complex system of
         human activity.
        An organisation consists of a collection of inter-related and interdependent
         sub-string. Each of which can be considered an organisation in its own right
        Activity Systems constitute sets of logically related activates by which
         organisations accomplish goals.


Using systems terms to model reality
        Beynon-Davies recommends (2009, p43) that we use systems, systems
         concepts & components to simplify complex real-world situations such as
         organisation problems
        By defining the hierarchy (sub-systems, sub-sub-systems)
        By defining the elements of the system, such as processes control &
         information flows between elements.
        Soft systems methodology (checkland, 1999) is a key method of modelling
         complex soft organisational problems.


Organisations as soft systems
        Such activity systems are soft because
            o Their boundaries or scoping be fluid
            o Their purpose is open to interpretation depending on the view of the
                stakeholders.
            o The purpose of the organisation reflects its long-term nature &
                characterises, and this purpose is expressed in its Objectives

Stake holder perspectives in systems.
        Stake holders are people or organisations to whom particular system is
         relevant. Their world view can be used to model an activity system.


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        Their perceptions about the activity system may conflict with other stake
         holders world view
        Their views on is may differ significantly from those of other stakeholders, eg
         management or those with technical responsibilities.

Main stake holders in IS development
        Client Group is typically managerial; sets major parameters for IS
         development project, provides budgets, defines expected benefits & sets
         constraints, strategies & allocates resources.
        Project Manager has overall responsibility for keeping project to schedule,
         budget, and specification; communicates and co-operates with all other parties
        Users (End-Users) involve the development process, providing input to
         systems analysis & design decisions, including functionally and usability of
         the intended systems.
        Developers tasked with analysis, designing, constructing and implementing
         the IS solution as specified by project manager based on systems analysis and
         design.

                                                Technology




                     Structure                                    People




                                                Tasks

Socio-technical Systems Theory
        Sees working system as a combination of material technology ( tools,
         machinery, techniques, location, and a social organisation ( people with
         capabilities, needs, relationships, communication patterns authority, structures
         etc.))
        Each affects the other, so people need to manage the material technology &
         social organisation together so they work in harmony rather than aiming to
         optimise one over the other.

The External Environment Of Systems
     Business is “the activity of transforming inputs into outputs…the activity at
      producing goods & services to meet the wants and needs of consumers (
      Weatherly & Otter, 2008 )
    We can picture the transformation as part of a longer supply chain, a whole
      series of organisations, relationships & processes that link the consumer or
      end-user or finished product back to the original raw materials used for the
      product.
Business Interaction with the Environment: The Transformation of Inputs and
Outputs


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       Inputs                        Production                   Outputs
       Stage 1                       Stage 2                      Stage 3
       Procurement                   Transformation               supply of outputs
       Or inputs                     of inputs into outputs       to customers
(Reference One)



The External Environment of Systems
        Beynon-Davis (p200) cites Worthington and Britons 2005 definition of the
         environment:
            o Environment is the general term for anything outside the organisation
                with which it interacts.
            o The Environment of most organisations can be seen as four major
                interdependent systems: an economic system, social system, political
                system and physical system. (Reference Two)

Economic Environment
        Defined by an organisations activities and relations with economic actors or
         agencies.
        Concerned with national and international trade and commerce
        Influenced by factors such as taxation, inflation rates, economic growth or
         downturn.
        IS are critical to organisations performance: economic markets as the primary
         means of money exchange.
        ICT is a key enabler of e-business (business-to-business) and e-commerce
         (business-to-consumer).


Social Environment
        Concerns an organisations position and the position it plays in the culture life
         of the social grouping surrounding it.
        The social environment can renter to the habits, preferences culture, traditions
         and consumption of the grouping.

Political Environment
        Concerns sets of activities and relationships concerned with power and
         exercise
        Deals especially with government and legal frameworks, which constrain the
         ways in which organisations operate.

Physical Environment
        Is the ecosphere surrounding the organisation
        Can affect organisations by forcing them to minimise harmful effects on the
         environment




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        Can generate changes by causing companies to adopt new ways of working
         and new ways of communicating enabled by ICT, e.g. distance working &
         Virtual meetings.

Lecture Five
Actors in the economic environment
        Economic activities occurs between organisations groups, & individuals
         within defined networks of relationships between economic actors
        Information is essential and accompanies each defined transaction between,
         say a buyer and a seller.
        For example information in the form of invoices, delivery notes and payments
         accompanies the movement of goods
        We can consider an organisations economic environments defined by
         activities and relationship between the organisation and a number of major
         types of external stakeholders (Beynon-Davies page 202)
        Competitors other organisations in the same fundamental area at business,
         looking to sell similar goods or services to the same consumer.
        Partners other organisations co-operating in the provision of goods and
         services, e.g. by adding value or performing outsourcing functions.
        Suppliers provide resources (e.g. materials, components) to the organisation.
        Customers individuals (consumers) or organisations (e.g. retailers) who
         purchase products or services from the organisations
        Regulators organisations, often government agencies that set boundaries and
         regulations within which organisations and their industries must operate.

PEST
( Political, Ethical, Social, Technological )
     This is a simple framework for environmental analysis that distinguishes four
         categories area.
     Variation on this basic type includes further facts.

SWOT
( Strengths, Weaknesses, Opportunities, Threats)
     This is another simple framework whose sophistication depends on quality of
        the analysis under each heading.
     This analysis combines internal and external factors: the strengths and
        weaknesses of the organisation couple with the opportunities and threats of
        external environment.

Lecture Six
Organisational culture
        A culture is a set of behaviours expected in a social group (Beynon-Davis p60)
        An organisation is assumed to be a long-standing coherent social group in
         which expected behaviours develop over time.




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        Beynon-Davies argues (p61) that in practice medium to large organisations are
         likely to have a number of Subcultures which grow up in structural units (eg
         departments) or within different stakeholder groups


    Fig 1: Main Factors Influencing Organisational Culture (Adapted from Lucey,
    2005, p102)
                    Organisation‟s          Operating environment    Employee‟s
                     history and            (suppliers, customers,   attitude and
                     background                competitors, etc)         skills

             Organisation                                               Organisation‟s
              goals and                                                 structure, jobs,
               purpose                                                 departments, etc

    Communication                                                            Organisational
     and decision-                                 Culture of                   policies
    making systems                                    the
                                                  organisation
      Rules,                                                                           Use and
  procedures and                                                                    knowledge of
 legal framework                                                                     technology



Handy’s Four Main Culture Types (1993)
             Power Culture typical of the owner-managed, entrepreneurial firm where
              power is concentrated in the hands of a single person.
             Role Culture typically found in large organisation with a relatively stable
              environment and clearly defined rules, duties and hierarchies.
             Task Culture where the power tends to be exercised by those with job
              expertise; task orientated organisations seem to be best at coping with
              rapidly changing products, market conditions and processes.
             Person Culture is suited to organisations containing professional
              employees who have independence within there are of expertise; these
              have flat structures and considerable power sharing.

Centralisation and Decentralisation
        Centralisation is when those at the top of the organisation make most decisions
         with those at the middle and lower levels following the policies thus
         established.
        Decentralisation is when a relatively larger number of decisions are made by
         those working at middle and lower levels.


Centralisation
        Avoids duplication of processes
        Allows central co-ordination and control of expensive resources such as IS
         (Information Systems)


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        Enables economies of scale
        Enables people to respond consistently
        Can lead to ignorance of local conditions and “remoteness”


Decentralisation
        Brings decision making closer to the areas affected.
        Allows more local autonomy which may improve motivation
        Could result in sub-optimisation.
        Can lead to wasteful duplication of effort.

    Fig 2: Organisational Culture Classifications (Adapted from Lucey, 2005)

                                         High Formalisation

                  Role Culture                                    Task Culture


High                                                                                             Low
Centralisation                                                                         Centralisation

                        Power Culture                             Personal Culture



                                         Low Formalisation

Competing Values Model (Quinn et al 2003)
        This theory proposes that organisation have inherent tensions along two
         dimensions between flexibility & control on one axis & between an internal
         and an external focus on the other axis.
        The resulting four cultural types express “competing values” that influence has
         people work and interact.

    Fig 3: Information Systems Associated With Culture Types (Boddy et al,
    2008, based on Quinn et al, 2003)

    Human Relations                              Flexibility                           Open Systems
        Computer-aided instruction                                  Environmental scanning and
        Interpersonal communicating and                              filtering
         conferencing                                                Inter-organisational linking
        Group Decisions supporting                                  Doubt and argument promoting
    Internal                                                                                  External
        Internal monitoring                                         Modelling
        Internal controlling                                        Forecasting
        Record keeping                                              Sensitivity analysing
        Optimising
    Internal Process                             Control          Rational goal




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Open Systems (External, Flexibility)
(Refer to figure three)
    In an open system culture, people focus on the external environment
    They see it as a vital source of ideas, energy and resources
    They see the external environment as complex and turbulent, requiring
        entrepreneurial, visionary leadership and responsive behaviour.
    Key motivating factors are growth, stimulation, creativity and variety


Rational Goal (External, Control)
(Refer to figure three)
    In a rational goal culture members see the unit as a rational, effacing seeking
        operation.
    They define effectiveness in terms of production or economic goals that met
        familiar and stable external requirements.
    Leadership tends to be directive, goal-orientated and functional.
    Motivating factors include competition and achieving targets.


Internal Process (Internal, Control)
(Refer to figure three)
    Members of an internal process culture pay little attention to the outside world
        and focus instead on internal issues
    Their goal is to make the unit efficient, stable and controlled.
    Goals are known; tasks are repetitive; methods emphasise specialisation rules
        and procedures.
    Leaders tend to be conservative and cautious, emphasising technical issues.
    Motivating factors include security and stability


Human Relations (Internal, Flexibility)
(Refer to figure three)
    People in a human relations culture emphasise the value of informal,
        interpersonal relations rather than formal structures.
    They place high values on maintaining the organisation and the well-being of
        its members.
    They define effectiveness in terms of developing people and their sense of
        commitment.
    Leaders tend to be participative and supportive.
    Motivating factors tend to be attachment and cohesiveness.


Lecture Seven
Reading: BD pages 110-117




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Organisation Databases
      These are at the heart of the internal IS of an organisation
      They are the core resource of information on which the most important
       business applications are based
    Major enterprise-week initiatives such as ERP and data warehouse are based
       on the collection of transactional data from core internal IS into databases.
[Reference One]


Core Internal Systems
      Sales Order Processing captures and processes customers order; produces
       data to inventory management & finance.
    Inventory management processes data flow which reflects changes in
       inventory (materials & stock).
    Purchase order processing captures & processes order to suppliers; produces
       data for finance.
    Finance records amounts owed by customers and produce customers invoices;
       records purchases from and amounts owed to suppliers.
[Reference Two]
[Reference Three]
[Reference Four]
[Reference Five]

Enterprise Resource Planning (ERP Systems)
        Are cross-functional company-wide systems driven by an integrated suite of
         software modules that supports the basic internal business processes of a
         company (O‟Brien and Maraksa, 2007)
        The most popular ERP system is SAP-ERP
        ERP gives the company a real-time integrated view of its core business +
         processes, such as production order processing & inventory management.
        These modules are tied together by the ERP application software and a
         common database.

Figure 7. Major application components of ERP systems (adapted from O‟Brien and
Marakas, 2007)

                                         Production Planning
                                                                  Integrated Logistics
        Sales Distribution
        And                               Customer /
        Order Management                          / Employee         Accounting
                                                                     & Finance


                                      Human Resources




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Data Warehouse
             Stores data that have been extracted from various internal operational
              database of an organisation
             External Data are sometimes added to the internal transactional data.
             It is a central source of data that has been cleansed, sorted and catalogued.
             Maybe subdivided into data marts which correspond to different functions
              of the company.
             Data warehouse data can be used by managers and other decision makers
              to carry out business analysis and as a source for decision support systems
              (Lecture 8)
             [Reference Seven]
             The data acquisition process can include consolidating data from several
              sources, filtering out and remaining unwanted data, correcting incorrect
              data, converting data to new elements.
             Unlike the data in transactional database, the data in a data warehouse is
              Static.
             A data warehouse and its data mort subsets hold data that have been
              extracted from various operational databases for business analysis; market
              research, decision support and data mining applications.

Lecture Eight
         Reading 90-94


Managers Information Needs
             ICT & information specialists need to understand the tasks & functions of
              management in order to produce relevant & usable information (See
              Lecture One).
             All Business stakeholders expect easy & instant access to information &
              web-based “self-service” data analysis
             The Growth of corporate intranets, extranets & the web has accelerated the
              development & use of information delivery & decision support software.
             Until recently, these were used by senior executives they are now being
              used by lower levels of management
             Business Intelligence tools (fig 3) are used by supplier‟s customers and
              other business stakeholders of a company for customer relationship
              management, supply chain management.


Information Assists Management in Several Ways
             The Reduction of uncertainty…
                 o As an aid to monitoring & control…
                 o As a means of communication…
                 o As a supplement to personal memory…
                 o As an aid to simplification…



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Levels of Management
             Operational management the lowest level of management involved with
              making structured decisions using detailed data.
             Tactical Management middle management which interferes between
              strategic & operational management.
             Strategic Management the top level of management concerned with
              making unstructured decisions base on heavily summaries data.


Management Information Systems
        Produce information in the form of reports, responses & displays that support
         many of the day-to-day decisions making needs of managers & business
         professionals.
        Provide predefined information to standard queries for decision makers mainly
         at operational & tactical levels who are faced with most more structure types
         of decision situations
        For example, a sales manager relies heavily on periodic sales analysis reports
         which show sales results (by product line/ sales territory, customers, sales
         person, etc) to help manage the performance of all the sales people on the
         staff.
        Managers use an MIS to request information at their networked
         PCs/Workstations
        This information takes the form of the periodic, exception & demand reports
         & immediate responses to enquiries
        Web browsers, applications program & database management software
         provide access to information in the intranet & operational databases.
        The operational databases are maintained by transaction processing systems.


Decision Support System (DSS)
             Decision makers at the strategic management level may look to decision
              support software to provide them with more summarised, ad hoc,
              unscheduled reports, forecasts & external intelligence
             These will support their more unstructured planning and policy-making
              responsibilities
             DSS are computer-based information systems that provide interactive
              information support to managers & business professionals during the
              decision making process.

         They Use
                 Analytical Models
                 Specialised database & model bases
                 A decision makers own insights & judgements
                 An interactive, computer-based modelling process to support the
                  making of semi-structure business decisions




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         Using (DSS)
                 Using a DSS software package for decision may result in a series of
                  display in response to alternative what-if changes enter by a manager?
                 Unlike the demand from MIS which use predetermined information,
                  the managers are exploring possible alternatives.
                 In what-if analysis, the user makes changes to variables or
                  relationships among variables, & observes the recruiting changer in the
                  values of other variables
                 For example if you where using a simple finical spreadsheet, you
                  might want to change a tax rate formula then command it to instantly
                  recalculate the affected variables in the spreadsheet.

Lecture Nine
E-commerce Defined
      E-commerce is the use of ICT to enable external activities & relationships
         with individuals, groups & oother business (laudon & Traver 2002)
      Boddy, boonstra & Kenedy (2008)




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                                                                   David Westlake

Poland
Q1) What role did Poland accomplish just before the start of the 2nd world war
in leaning how to decode those early enigma messages.
A1) the poles had broken the Enigma in 1932, when the encoding machine was
undergoing trails with the German Army. They even manage to reconstruct a
machine. At that time, the cipher altered only once every few months. With the advent
of war, it changed at least once a day, effectively locking the Poles out.
But in July 1939, they had passed on their knowledge to the British and French forces.
This enabled the code breakers to make critical progress in working out the order in
which the keys were attached to the electrical circuits, a task that had been impossible
without an enigma machine in front of them.

Q2) what role did the development of the 1st programmable computers have in
deciphering the even more advanced enigma machine messages?
A2) the bombe was an electromechanical device used by British cryptologists to help
break German enigma-machine-generated signals during World War II. The bombe
was design by Alan Turing, with an important refinement suggested by Gordon
Welchman
         A standard German enigma employed, at any one time, a set of three rotors (in
German Navy, from early 1942, four rotors) each of which could be set in 26
positions. The bombe tried each possible rotor position and applied a test. The test
eliminated thousands of positions of the rotors; the few potential solutions were then
examined by hand. In order to use a bombe, a cryptanalyst first had to produce a
“crib” – a section of cipher text for which he could guess the corresponding plaintext.
         The colossus machines were electronic computing devices used by British
code breakers to read encrypted German messages during World War II. These were
the world‟s first programmable, digital, electronic, computing devices. They used
vacuum tubes (thermionic valves) to perform the calculations.
         Colossus was designed by engineer Tommy Flowers with input from Allen
Coombs, Sid Broadhurst and Bill Chandler at the Post Office Research Station, Dollis
Hill to solve a problem posed by mathematician Max Newman at Bletchley Park. The
prototype, Colossus Mark 1, was shown to be working in December 1943 and was
operational Bletchley Park by February 1944. An improved Colossus Mark 2 first
worked on 1 June 1944, just in time for the Normandy Landings. Ten Colossi were in
use by the end of the war. The colossus computers were used to help decipher
teleprinter messages which had been encrypted using Lorenz SZ40/42 machine –
British code breakers referred to encrypted German teleprinter traffic as “Fish” and
called the SZ40/42 machine and its traffic “Tunny”. Colossus compared two data
streams, counting each match based on a programmable Boolean function. The
encrypted messages were read at high speed from a paper tape. The other stream was
generated internally, and was electronic simulation of the Lorenz machine at various
trail settings. If the match count for a settings was above a certain threshold. It would
be sent as output to an electric typewriter.
         In spite of the destruction of the Colossus hardware and blueprints as part of
the effort to maintain a project secrecy that was kept up into 1970‟s – a secrecy that
deprived some of the Colossus creators of credit for their pioneering advancements in



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electronic digital computing during their lifetimes – a functional replica of a Colossus
computer was completed in 2007

Q3) What role did the 10,000 code-breakers have at Bletchley Park?
A3) – at it‟s height, 10,000 people worked at Bletchley Park in various roles including
mathematicians and cryptanalysts.
Breaking the Enigma ciphers gave the Allies a key advantage, which according to
historians, shortened the war by two years thus saving many lives.

Q4) why did the recipients have to use the knowledge gained from the decoded
messages with a lot of care and wisdom?
A4) the recipients of the decoded messages from Bletchley Park had to extremely
careful to use the intelligence gained in sensitive and sparing manner so as not to alert
the Germans to the fact that the Enigma code had been broken.




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