SHIRE ATVET COLLEGE

OUTCOME BASED TRAINING CORE PROCESS

DEPARTMENT OF NATURAL RESOURCE

Unit of Competence: Develop and manage information system

Module Title: Developing and managing information system

Prepared by: G/Michael Yiebyo

January, 2020
Shire Endasilasie, Tigrai, Ethiopia
 1. UTILIZE NR INFORMATION SYSTEMS
Most information about natural resources collected through inventorying, monitoring, research,
assessment and traditional knowledge should be broadly available to NR department employees, the
scientific community, and the public.

The term information system usually refers to a computer-based system that is designed to support
the operations, management, and decision functions of an organization. Information systems in
organizations thus provide information support for decision makers. Information systems encompass
transaction processing systems, management information systems, decision support systems, and
strategic information systems.

Information consists of data that have been processed and are meaningful to a user. A system is a set
of components that operate together to achieve a common purpose. Thus a management information
system collects, transmits, processes, and stores data on an organization's resources, programmes,
and accomplishments. The system makes possible the conversion of these data into management
information for use by decision makers within the organization. A management information system,
therefore, produces information that supports the management functions of an organization.

Data versus Information

Data refers to raw, unevaluated facts, figures, symbols, objects, events, etc. Information is data that
have been put into a meaningful and useful context and communicated to a recipient who uses it to
make decisions. Information involves the communication and reception of intelligence or
knowledge.

Characteristics of Information

The characteristics of good information are relevance, timeliness, accuracy, cost-effectiveness,

reliability, usability, exhaustiveness, and aggregation level.

Timeliness refers to the currency of the information presented to the users. Currency of data or
information is the time gap between the occurrences of an event in the field until its presentation to
the user (decision maker). When this amount of time is very short, we describe the information
system as a real-time system.

Value of Information

Information has a great impact on decision making, and hence its value is closely tied to the
decisions that result from its use. Information does not have an absolute universal value. Its value is
related to those who use it, when it is used, and in what situation it is used. In this sense, information
is similar to other commodities. For example, the value of a glass of water is different for someone
who has lost his way in Arctic glaciers than it is to a wanderer in the Sahara Desert.

Information as an Aid to Decision Making

Simon (1977) describes the process of decision making as comprising four steps: intelligence,
design, choice, and review. The intelligence stage encompasses collection, classification, processing,
and presentation of data relating to the organization and its environment. This is necessary to identify
situations calling for decision. During the decision stage, the decision maker outlines alternative
solutions, each of which involves a set of actions to be taken. The data gathered during the
intelligence stage are now used by statistical and other models to forecast possible outcomes for each
alternative. Each alternative can also be examined for technological, behavioral, and economic
feasibility. In the choice stage, the decision maker must select one of the alternatives that will best
contribute to the goals of the organization. Past choices can be subjected to review during
implementation and monitoring to enable the manager to learn from mistakes. Information plays an
important role in all four stages of the decision process.
 2. COLLECT, ANALYZE AND REVIEW NR INFORMATION

Data collection method

1. Review of existing data
Research and other official and unofficial studies and reports on socio-cultural, political, ecological
Conditions, national and area specific statistics, topical and area-specific articles from journals and
newspapers, archives and files, aerial and satellite photos and maps.
2. Direct observation
This helps identify different zones within appraisal area, economic activities, key indicators of
conditions, new topics or issues for discussion, besides helping in the assessment of differences
between reported conditions and real conditions.
3. Informal interviews
Much information can be generated this way, but care is needed to weed out the useless information,
and in validating much of the generated data. Interviewees can be typically key individuals, focus
groups or mixed groups.

4. Semi-structured interviews
Semi-structured interviews use some predetermined questions and topics but allows new topics to be
pursued as the interview develops. The interviews are informal and conversational but carefully
controlled. The facilitator not only has to be an effective communicator but also a good listener and
quick thinker.
5. Short questionnaires
Short and issue-specific questionnaires can be useful if conducted late in the research process.

The Analytic Process

Analysis and interpretation start from the moment the data are collected. It is a way by which data
are broken into parts or dissected in order to understand the true meaning of the data, and to
determine the relevance and significance to the objective of the study.
The analytic process involves:
 Observing events
 Selecting observations within the event on which to focus
 Interpreting (drawing conclusion about) the perceived situation
 Critically examining the constructed theory (conclusion)

Essential Elements of the Analytic Process

 Reading data: involves closely scrutinizing data in order to recall the events and experiences
they represent. What was done? What was said? What really happened?
 Selecting data: involves separating important factors from unimportant factors; group similar
factors; sorting and, where possible, simplifying complex details. Choose only the data
necessary to help reach the conclusions.
 Presenting data: involves reducing selected data to a form that is easy to take in at a glance,
such as a written outline or a diagram
 Interpreting data and drawing conclusions: involves explaining relationships and
constructing a practical theory (or model) to fit the situation being studied.

Critical examination of data includes:

 Questioning during your observation (the most important questions could why and so what?)
it signals for deeper inquiry as to the behavior/trend/outcome of the results
 Observing what seems to contradict your interpretation
 Taking a definite action to test your interpretation
Data presentation

The data presentation formats must be acceptable to and meet the needs of a wide range of users.
Graphs and tables must be plain, simple and attractive. Correct data interpretation is highly
dependent on the selection of indicators and method of dissemination. Simply presented, well
explained data can reach a wider audience.

Two fundamental questions need to be addressed when preparing tables and graphs:

· What is the most important information the reader can extract from this presentation?
· Have the tables and graphs been designed to meet users' needs?
 3. MANAGING THE NR INFORMATION SYSTEM

To maximize its use and comparability, data should be developed and maintained to meet agreed
international or national guidelines for the management of spatial information.

Principles for managing NRM information

Importance—decision making in NRM needs support from appropriate data and information.
accessibility—data and information relevant to NRM should be easy to find and access for a wide
range of users and, where possible, provided free online.
availability—data and information relevant to NRM will only be withheld in exceptional
circumstances (such as privacy or commercial-in-confidence). In these cases, the reasons for
withholding will be made explicit.
standardisation—nationally agreed standards for data and information collection, management,
transfer and reporting shuold be implemented to support the infrastructure.
Reciprocality—arrangements for data and information sharing will allow two-way flows between
nationaland regional NRM processes.
Responsibility—roles forcollection, care and reporting should be clearly identified and agreed.
Priority— keyinformation required for NRM should be given priority for collection and access.

Classification of Management Information Systems

There are four categories of management information systems: (1) databank information system, (2)
predictive information system, (3) decision-making information system, and (4) decision-taking
information system.

Databank Information System. is responsible to observe, classify, and store any item of data which
might be potentially useful to the decision maker. Examples of the kind of data that might be
recorded in such a database for a given village, region, or area are as follows:
 Number of farms
 Number of units of arable land (hectares, fedans, acres)
 Average farm size
 Amounts of selected farm inputs applied annually
 Production per year on a unit of land for selected crops

Predictive Information System. This system moves beyond pure data collection and the
determination of trends over time and provides for the drawing of inferences and predictions that are
relevant to decision making. Examples:
 The ratio between the number of farms and the various categories of extension staff members
 The ratio between the amount of farmland and the various categories of extension staff
members
 Amount of extension financial operating resources allocated per year to selected farmer
problems or concerns
 Amount of extension financial resources, both salary and operating expenses, allocated per
year to selected extension approaches to solving different farmer problems or concerns

Decision-Making Information System. This system goes one step further in the process of decision
making and incorporates the value system of the organization or its criteria for choosing among
alternatives. An extension organization's values are many and varied. They include concerns for
resolving farmer problems, increasing and providing for stability of farmer incomes, and improving
the quality of farm life. But they also including and providing for stability of farmer incomes, and
improving the quality of farm life. But they also include an intent to provide well for staff members
(training, adequate salaries, etc.) and to aid in the process of bringing about rural economic
development.
Information regarding these various attributes helps managers to make more enlightened decisions.
Examples of ways that an extension organization uses information from a decision-making
information system are as follows:

 Change in specific farm outputs (yields, practices) following selected extension activities
 Change in staff productivity following selected interventions (in-service training, better
transport)
 Comparison of relative costs and relative effectiveness of alternative extension delivery methods
 Analysis of economic returns to farmers who adopt recommended practices as compared to
those who do not

Decision-Taking Information System. Examples of decision-taking information systems are not

usually found in an extension organization. This is a decision system in which the information
system and the decision maker are one and the same. Airplanes carry automatic pilot systems, which
are an example of a decision-taking system. Once activated, the system itself keeps the plane on
course and at the proper speed and altitude (according to parameters determined by the pilot).
 4. DEVELOP BUSINESS PLAN/BUDGETS
Business Plan
Executive summary
• Name of business Contact address Owner(s) profile

• Type of business(Manufacturer, Service provider, Retailer, Wholesaler)

• Brief description of the business idea(Products or services, Target Market)

• The legal form of the business will be:

□ Sole proprietorship √ partnership □ limited company □ Corporation

• Description of the market (Geographical area, town, size of total market, description of
competitors, etc.)

Marketing Plan Product

• Detailed description of the product or product range or service

• What is special about the product/ the unique characteristics of the product?

• Specification of the product

Marketing Plan Price

• How much are customers willing to pay?(Highest, Average, Lowest )

• How much are competitors’ price?

• How much is your price?(Highest, Average, Lowest)

Marketing Plan Place

•

• Reason for choosing the location the business

• How to distribute the product to customers?(Directly to customers, Through retailers or

wholesalers)’

• Marketing Plan Promotion (Advertisement, Personal selling, etc.)

2.PRODUCTION PLAN

• List of production steps. Select raw materials(quantity, cost)

• List fixed assets needed and their cost Factory location and layout

• Brief description of production capacity of the project per month:

• Production costs of each item to be produced (Raw materials per month, Direct labor per
month, Factory overhead expenses per month)

3. FINANCIAL PLAN
Capital requirement
Capital requirement/project cost? Total fixed assets( land, building, Equipment) + Working
capital/operational costs of one month’s(Raw material costs, Administrative expenses, Staff cost
 of one month)

Profit & loss statement (for manufacturing business)

Revenue Amount
Sales

Operating expenses

 Salary expenses
 Rent expenses
 Selling Expenses
 Miscellaneous expenses
Net profit Before Tax
Estimated Income Tax
Net profit After Tax

Contingency-Based Planning
Contingency-Based Planning deals with uncertainly by identifying specific responses to possible
future conditions. A contingency-based plan consists of various if-then statements that define the
solutions to be deployed as needed: if a particular problem occurs then we will implement a set of
solutions, and if those prove to be insufficient then we will implement an additional set.
Contingency-based planning recognizes that the future is impossible to predict and conditions may
change, and so it is often best to apply flexible and responsive solutions.
 5. MANAGING RESOURCE PLANNING
It is important to take into account the resources that you have available prior to the drafting of your
business plan. Do a proper resource assessment. The types of resources that you may have at your
disposal can be identified as follows: Human resources, financial resources, Natural resources.

Human resources
This deals with the human resources you have available and what contribution they would make to
the business. The CV of the management must be included. This is critical as it could influence the
reader to know who will be in the driving seat of the business and what the ability of that person is.
The number of staff and management you have or will have will be put into this section.

Financial resources
Fixed asset is a long-term, tangible asset held for business use and not expected to be converted to
cash in the current or upcoming financial year, such as real estate and buildings.
Movable assets are considered furniture and equipment that is not part of a building (also includes
commonly moved business items such as laptop computers).
Own capital: If you are going to invest in your own business you need to include this in the business
plan. Investing in your own business capital wise will also be an indication for the reader that you
will try to make a success of your business. Capital contributed by the owner or entrepreneur of a
business, and obtained, for example, by means of savings or inheritance, is known as own capital

Natural resources (Water & land): The availability of the natural resources will determine your
operations and the size of it.