MIS Assingment

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Table of C ontents

1 Introduction ........................................................................................................................2

2 BIS (Business Information Systems) ..................................................................................2

2.1 Information System .....................................................................................................2

2.2 BIS ...............................................................................................................................3

2.3 Types of BIS ................................................................................................................3

2.3.1 OIS: office information system. ...........................................................................3

2.3.2 Enterprise System (TPS : Transition processing system and RPS: Resource

Planning System) ................................................................................................................3

2.3.3 MIS: management information systems ..............................................................3

2.3.4 DSS: decision support systems ............................................................................3

2.3.5 ES: Expert Systems ..............................................................................................3

2.3.6 EIS: Executive information systems ....................................................................4

Types of BIS & XX Plc. .........................................................................................................4

2.4 Development of BIS ....................................................................................................4

2.5 Theoretical Models of Development of BIS ...............................................................5

2.6 Characteristics of a BIS. ..............................................................................................5

2.7 Application of Theories of BIS & XX PLC; XX plc. Information System changing

PROJECT PLAN: A Critical Analysis with Suggestions .....................................................6

2.7.1 Stock Records ......................................................................................................6

2.7.2 Payroll ..................................................................................................................6

2.7.3 Extranet links .......................................................................................................7

2.7.4 Outsourcing; Cloud Computing: Suggestions for XX plc. ..................................7

2.8 Approaches for selection of a BIS ...............................................................................8

2.9 Bespoke & off shelf Packages and their Application Issues .......................................8

2.9.1 Bespoke BIS .........................................................................................................8

2.9.2 Off Shelf Packages of BIS ...................................................................................8


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2.10 Factor causing risk of failure of IT projects ................................................................9

3 Summery .............................................................................................................................9

4 List of References .............................................................................................................10

1 Introduction

In order to answer the informations challenges being faced by XX plc. It is important to

understand, why firms need BIS, what Business information system is, how they develop and

how one system is different than others. Suitable, accurate, time and cost efficient, user

friendly, speedy and reliable IS systems helps a firm to have timely, accurate, suitable and

efficient decision, run daily business operations, store previous performances, helps

management to forecast and take future decisions, help firm to save cost, gain competitive

advantage and answer customer required needs efficiently and timely. Before starting the

critical discussion about XX plc.s. It is important to understand what Information system and

business information is, why they are required and how they developed. This research work

very briefly covers all such areas with critical analysis and suggestion.

2 BIS (Business Information Systems)

To understand BIS it is better to understand IS first, Following is the definition of an IS.

2.1 Information System IS are the systems or set of systems combined in one large systems, includes hardware,

people, combination of set rules and procedures, network and software, used as tools of

gathering information, keeping safe and storing such information with a feature of future

retrieval and transforming such information into data along with the management of such

information as well the data generated through such information (Turban et al, 2002:p46 -

49). Each information is designed to fulfil some objectives and goal. And one common

purpose of information system is converting ordinary information into understandable(meaning full) data.


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2.2 BIS

Business information system is a combination of hardware, people, combination of set rules

and procedures, network and software system used in a business organisation to gather

business information, keeping business information safe (storing it) and retrieving it when

required. Such system transforms information into useful data ( Bocij, P. 2009) .

2.3 Types of BIS

According to users perspective a business information can be classified into 6 main types

and few others e.g. Supply chain systems etc. ( Rainer & Cegielsk, 2011) , which are

mentioned below;

2.3.1 OIS: office information system.

These system are used to improve and ease the day to day office operation e.g. software of

excellence or Kodak software used in NHS dental practices to register new patients.

2.3.2 Enterprise System (TPS : Transition processing system and RPS: Resource Planning

System)

Some system deals with the day to day handling of data generated by day to day transaction

e.g. wall mart check out system ( Rainer & Cegielsk, 2011) .

Enterprise resources planning integrates all systems e.g. SAP & Oracle ( Rainer & Cegielsk,2011:p44).

2.3.3 MIS: management information systems

These type of systems designed to help managers for issue solving, supervising the activities

and monitor progress of such acts. That include the employee data systems, performance

measurement systems etc. e.g. Sage 200, SAP, Oracle etc. ( Rainer & Cegielsk, 2011).

2.3.4 DSS: decision support systems

These systems are designed to help decision making and enable the person access data and

analysis means to take decision when required to do so e.g. What if analysis. These systems

require both organisations internal and external data. E.g. Credit Card Approval Analysis

(Rainer & Cegielsk, 2011) , Web focus reporting application (Information builder, 2012).

2.3.5 ES: Expert Systems

The unique feature of such systems is artificial intelligence, minimise human role. These

system uses expert knowledge and expertise to help people to with low level of expertise and


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knowledge. E.g. employee access control system where recognition is made through voice

match and retina scan (Lukasheh, et al. 2001).

2.3.6 EIS: Executive information systems

Executive information are designed for executives of the firm. Such systems enableexecutives of the organisation or business to have structured and processed information. Such

system uses internal data as compare to DSS systems. Such systems consist of different

module and process the huge data from a general daily business transaction to a single

employee progress. E.g. Executive Dash Board showing status of sale by each product.

Types of BIS & XX Plc.

XX plc. Is looking for three new information systems to meet organisations information

requirement. XX plc. Is looking to have its own Stock Record systems currently they are

relying upon third party software probably the suppliers and buyers reports or may be

outsourced stock system. Which seems to be very old and outdated.2 nd system which XX plc.

Is looking for is the system for salary system. As current salary system is consist of three

different non -integrated salary systems. Here there are two expert opinions available 1) to

develop in house salary system 2) get a readily available ready to available software

2.4 Development of BIS

Each business information system is developed to achieve some goals and fundamental aims

are to convert general information into business data, present such data into required format

to enable management to run business daily activities, monitor such activities, take strategic

business decisions and gain competitive advantage as discussed by Porter (1985) cited by

Rainer & Cegielsk (2011) .

There are different BIS and before discussing their type its import to know their development

process. BIS is developed based upon the nature of its use. Due to which many systemcomplement each other and many systems differ. All systems development has the common

stages, which are shown in table 1.1.

Table 1.1: Phases of development of BIS, Reference; Ratzan (2004:p153)


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All these three phases involves following seven steps to develop a BIS (Ratzan, 2004).

i. Planning for a BIS.

ii. Analysis (Enterprise) of the requirement of BIS

iii. Planning for change (resulting from new BIS)

iv. Critical and strategic analysis for the success of BIS development

v. Business process re-modification

vi. System development and testing of such system

vii. Analysis of newly developed System.

2.5 Theoretical Models of Development of BIS

There many approached but due the time limitation for this current research only two models

are mentioned here ( Pokorny et al, 2011) .

i) Waterfall model (Stair & Renold, 2010)

ii) Goal Oriented Model

iii) Develop and fix

iv) Prototype Approach Frame work

2.6 Characteristics of a BIS.

A business Information System design is affected by following elements (Wigand et al,

2003);

i) Vision and mission statement.

ii) Business strategy

iii) Goals of information system.

iv) Use and Support Mechanism

v) Transitions Methods

vi)

Control mechanismvii) Input Mechanism


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viii) Data storage and mining

ix) System security

x) Output mechanism

xi) Medium

xii) feedback Mechanism

2.7 Application of Theories of BIS & XX PLC; Information System Changing

PROJECT PLAN: A Critical Analysis with Suggestions

2.7.1 Stock Records

Companies buy stuff to sell or consume or some time but to add value and then re -sell or use,

and build stock of such goods. At XX the stock records are being kept at third party this

shows the lack of XX plc.s own stock keeping system. And XX plc. Is depend on third party

for majority of information linked to stocks this can effect information that information

cannot be timely, reliable and so efficient.

Stock keeping system can be TPS or MIS, there are stock keeping systems exist in and can be

ready to available on minimum time span provided paid. XX plc. can develop such system in

house as well, but I think best is if management go for cloud. Through cloud stock system

can be accessible at any terminal and any point, without risking the system of big storage,

security, and maintenance support and cost issues.

2.7.2 Payroll

Payroll systems are part of TPS (Stair & Reynold, 2010:p.19) and also impact MIS. In small

firms payroll can be OIS. According to HMRC companies with more than 10 employees

cannot provide information to HMRC in paper form. (HMRC, 2012). Plus every year tax

code changes, in 2009 government issued two tax codes. And due the change in employees

personal circumstance tax codes changes as well. So in todays environment maintained of payroll is not just paying to employees. A good and efficient payroll system can keep

employees personal data, performance record and their payment and earning details while

paying to employees through bank and sending information to HMRC online and generating

reports for management and employees information. Good payroll system can integrate with

third party system and within house systems without any hassle. Most famous available

system in market is Sage payroll (sage, 2012). Where as many banks (Barclays, 2012) are

also providing such service as outsource agent. Plus many companies are offering Cloud as

in house system and as third party system (Sage, 2012).


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2.7.3 Extranet links

It is the part of DSS, where higher management needs internal and external information

higher legal of decision making, normally long term policy and strategy making. In that case

BIS should have ability to scan and link with external sources and systems and integrate such

information with the internal system and information to generate reliable and credible

information for higher management to use.

Due to the volume and secrecy nature of data cloud is not very suitable choice. For these big

companies get system designed just for their needs or but expenses available BIS e.g. Oracle

or SAP

2.7.4 Outsourcing; Cloud Computing: Suggestions for XX plc.

In case of stock out sourcing is not working and not a suitable choice, where in house

development needs lot of time and resources in that case either ready available or cloud is the

best choice,

In case of Payroll system scenario in -house development is not a good choice as due to

changing nature of laws and employees personal affairs, the support for such system would

be difficult and expensive. Where market available systems such as Sage Payroll or cloud is a

good choice. Out sourcing can also be an option but the issue of integration of such out

sourced system with XX plc.s other systems such as stock and external links would rise and

impact the BIS and its performance.

In case of Extranet Links best option could be out sourcing or cloud form some

professional doing this business, there could be many sources of such required information

and many factors such as legal, political, global change etc. can impact such information so

its better to get such links from outside professional rather than developing in house large

team to so which could take time to give exactly required information and it may be

expensive.

Cloud systems bring less changes in work place, they are efficient in terms of capital

investment, more reliable as already test, and support & maintained is part of package. Cloud

can help integration of XX plc by linking all systems at one place as a part of one BIS.

Cloud systems are not suitable for large firms e.g. Oil companies due to the huge data and

urgent and quick need of information. Important things are that sometimes could systems

become more vulnerable.


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2.8 Approaches for selection of a BIS

According to Heinz & Bause (1995) there are three main approaches are can be used to select

a BIS, which are briefly as follows;

i) Logical & Critical Cost procedures approachIn this approach a system is valued in theoretical and mathematical manner.

ii) Simulation or Mathematical Logic Model approach

In this approach BIS is measured by using some application or application and system is

tested by use of more complex mathematical models.

iii) Measurement approach

In this approach the performance and conduct of a BIS is evaluated and measured internally

and externally by the use of sold and reliable theoretical frame works.

2.9 Bespoke & off shelf Packages and their Application Issues

2.9.1 Bespoke BIS

Such systems are also called as proprietary systems. Such systems are designed as per the

requirement of the firm (tailor made) from scratch and firms owns such systems as assets.

Developing such systems are not easy tasks, it requires lot time and resources (Bocij, 2006).

System development process is briefly discussed earlier in this current research report. Such

system has its own merit and demerits. It is useful, more secure and efficient for firms who

can afford such as big steel mills or big oil companies. Firm can buy totally newly developed

system or get a modified and altered readily available system (Stair & Reynold, 2010).

Mostly they are DSS or ES, altered readymade systems are mostly MIS.

2.9.2 Off Shelf Packages of BIS

According to Stair & Reynolds (2010) off shelf systems are opposite to proprietary systems.

They are already tested and known in the market and available in shorter time and at very low

cost as compare to bespoke systems. In case of cloud there is very low capital cost in some

case no capital cost and so less hassle of maintain assets and easy to manage and get support.

They are MIS, OIS and TPS.

For large companies and companies where strategic decision making is require on very

frequent intervals its not a very good choice readymade BIS are not a very suitable idea.


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2.10 Factor causing risk of failure of IT projects

According to Ratzan (2004:p156) anything can go wrong and sometime very UN noticeable

and minute thing act a factor to failure. According to Rainer & Cegielski (2011:p.153), is I.T

all success has answer which is no. Following are the factors which can bring an I.T project

to failure;

i) Organisations culture and Change (Rainer & Cegielski, 2011)

Plays an important role, miss handling can cause failure.

ii) Difference of agenda

If aim of desired I.T project is not clear and lack of existence of clear cut manner to achieve

desired goals of I.T project, that could cause difference of opinion among people involved in

the development of a BIS.

iii) Deficiencies

Any limitations e.g. time, resources, expertise, information about requirement etc. could lead

an I.T project to failure.

iv) Risks

Anything can go wrong and sometimes wrong can be caused by even any minute thing. Many

risks such as delay in hardware shipment, power failure or breach or physical and I.T securitycan generate risks for an I.T project.

The risks linked with a project can be technical or non -technical (Johnson & Tengstrom,

2010: pp.185 -192). Technical risks are financial risks, Resource Allocation risk & Physical

harm risk. Whereas non -technical risks are classified as political, politically related,

economic and social risks.

v) Jealousy and rivalry

Any unhappy colleague or work rival can trigger the failure for an I.T Project.

3 Summery

In todays competitive and challenging business environment timely, efficient, useful and low

cost informal is vital to any organisation to keep its existence and excel. BIS consist of

software and hardware and they record, obtain, gather and process information into

meaningful data for business management to achieve their organisational goals. There are

different type of BIS due to their nature of use and there are many stages involved in the


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development of such systems. Each type of system has its own merits and demerits. Every

firm wants updated, efficient, reliable, and user friendly and sometimes cost efficient and

effective system. There are many different factors which impact the selection process of a

BIS. XX Plc may use cloud or semi altered ready available systems.

4 List of References

Bocij, P. 2009. Business Information: Technology, Systems and Management. 4th Edition.Financial Times Management.

Heinz, B. & Bause, F. 1995. Quantitative evaluation of computing and communication

systems. 8th ed. Berlin, Germany: Die Detushe. P.p52 -56.

Lukasheh, et al, 2001. Review of Expert System (ES), Geographic Information System (GIS),

Decision Support System (DSS), and their applications in landfill design and management.

Sage Journal, [Online]. 19 (2), 177 -185. Available at:

http://wmr.sagepub.com/content/19/2/177.full.pdf+html [Accessed 23 August 2012].

Pokorny, et al. 2011. Information Systems Development: Business Systems and Services:

Modelling and Development. 1st ed. U.S.A: springer.

Rainer, & Cegielski. 2011. Introduction to Information Systems: Enabling and Transforming

Business. 3rd ed. U.S.A: John Wiley & Sons

Ratzan, L. 2004. Understanding information systems. USA: American Library Association.

Pp154 -156.

Stair, R & Reynolds, G, 2010. Principles of Information Systems. 3rd ed. U.S.A: Course

Technology.

Turban, et al. 2002, Information Technology for Management, 3rd Edition, and USA: John

Willy and Sons

Wigand, et al. 2003. Introduction to Business Information Systems. 1st ed. U.S.A: springer.

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MIS Assingment