SIS(H.P.D.Mandara)

Download as pdf or txt
Download as pdf or txt
You are on page 1of 58

Higher Nationals

Internal verification of assessment decisions – BTEC (RQF)


INTERNAL VERIFICATION – ASSESSMENT DECISIONS

Programme title BTEC Higher National Diploma in Computing

Mis.Tharika Amali
Assessor Internal Verifier
Unit 07: Strategic Information Systems
Unit(s)
Identifying and evaluating SIS for a chosen organization
Assignment title
H.P.Dileesha Mandara Prawarshana
Student’s name
List which assessment criteria Pass Merit Distinction
the Assessor has awarded.

INTERNAL VERIFIER CHECKLIST

Do the assessment criteria awarded match


those shown in the assignment brief? Y/N

Is the Pass/Merit/Distinction grade awarded


justified by the assessor’s comments on the Y/N
student work?
Has the work been assessed
Y/N
accurately?
Is the feedback to the student:
Give details:
• Constructive? Y/N
• Linked to relevant assessment criteria? Y/N
• Identifying opportunities for Y/N
improved performance?
• Agreeing actions? Y/N
Does the assessment decision need
Y/N
amending?

Assessor signature Date

Internal Verifier signature Date


Programme Leader signature (if required)
Date

Confirm action completed


Remedial action taken
Give details:

Assessor signature Date

Internal Verifier
Date
signature
Programme Leader
Date
signature (if required)

H.P.D.Mandara prawarshana 1 Unit 07:


Strategic Information Systems
Higher Nationals - Summative Assignment Feedback Form
Student Name/ID H.P.Dileesha Mandara Prawarshana/E131272

Unit Title Unit 07: Strategic Information Systems

Assignment Number 1 Assessor


25/06/2022 Date Received
Submission Date
1st submission
Date Received 2nd
Re-submission Date
submission
Assessor Feedback:
LO1 Analyse the information requirements of organisations
Pass, Merit & Distinction P1 P2 M1 D1
Descripts

LO2 Discuss the types of information systems that are used within all levels of an organisation
Pass, Merit & Distinction P3 P4 M2 D2
Descripts

LO3 Demonstrate the use of an information system to produce management information


Pass, Merit & Distinction P5 P6 M3 D3
Descripts

LO4 Evaluate the effectiveness of strategic information systems


Pass, Merit & Distinction P7 M4 D4
Descripts

Grade: Assessor Signature: Date:

Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

* Please note that grade decisions are provisional. They are only confirmed once internal and external moderation has taken place and
grades decisions have been agreed at the assessment board.

H.P.D.Mandara prawarshana 2 Unit 07:


Strategic Information Systems
Pearson Higher Nationals in
Computing
Unit 07: Strategic Information Systems
Assignment 01

H.P.D.Mandara prawarshana 3 Unit 07:


Strategic Information Systems
General Guidelines

1. A Cover page or title page – You should always attach a title page to your
assignment. Use previous page as your cover sheet and make sure all the details are
accurately filled.
2. Attach this brief as the first section of your assignment.
3. All the assignments should be prepared using a word processing software.
4. All the assignments should be printed on A4 sized papers. Use single side
printing.
5. Allow 1” for top, bottom , right margins and 1.25” for the left margin of
each page.

Word Processing Rules

1. The font size should be 12 point, and should be in the style of Time New Roman.
2. Use 1.5 line spacing. Left justify all paragraphs.
3. Ensure that all the headings are consistent in terms of the font size and font style.
4. Use footer function in the word processor to insert Your Name, Subject, Assignment No,
and Page Number on each page. This is useful if individual sheets become detached for any
reason.
5. Use word processing application spell check and grammar check function to help editing
your assignment.

Important Points:

1. It is strictly prohibited to use textboxes to add texts in the assignments, except for the
compulsory information. eg: Figures, tables of comparison etc. Adding text boxes in the body
except for the before mentioned compulsory information will result in rejection of your
work.
2. Avoid using page borders in your assignment body.
3. Carefully check the hand in date and the instructions given in the assignment. Late
submissions will not be accepted.
4. Ensure that you give yourself enough time to complete the assignment by the due date.
5. Excuses of any nature will not be accepted for failure to hand in the work on time.
6. You must take responsibility for managing your own time effectively.
7. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
8. Failure to achieve at least PASS criteria will result in a REFERRAL grade .
9. Non-submission of work without valid reasons will lead to an automatic RE FERRAL. You will
then be asked to complete an alternative assignment.
10. If you use other people’s work or ideas in your assignment, reference them properly using
HARVARD referencing system to avoid plagiarism. You have to provide both in-text citation
and a reference list.
11. If you are proven to be guilty of plagiarism or any academic misconduct, your grade could be
reduced to A REFERRAL or at worst you could be expelled from the course

H.P.D.Mandara prawarshana 4 Unit 07:


Strategic Information Systems
Student Declaration

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present
it as my own without attributing the sources in the correct form. I further understand what it
means to copy another’s work.

1. I know that plagiarism is a punishable offence because it constitutes theft.


2. I understand the plagiarism and copying policy of Pearson UK.
3. I know what the consequences will be if I plagiarise or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspect of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I acknowledge that the attachment of this document signed or not, constitutes a binding
agreement between myself and l Pearson UK.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the assignment.

[email protected] 25/06/2022
Student’s Signature: Date:
(Provide E-mail ID) (Provide Submission Date)

H.P.D.Mandara prawarshana 5 Unit 07:


Strategic Information Systems
Higher National Diploma in Computing
Assignment Brief
Student Name /ID Number H.P.Dileesha Mandara Prawarshana/E131272

Unit Number and Title Unit 7: Strategic Information Systems

Academic Year 2021/2022

Unit Tutor

Assignment Title Identifying and evaluating SIS for a chosen organisation

Issue Date

Submission Date 25/06/2022

IV Name & Date

Submission format

Report: The submission should be in the form of an individual written report. This should
be written in a concise, formal business style using 1.5 line spacing and font size 12. You
are required to make use of headings, paragraphs and subsections as appropriate, and all
work must be supported with research and referenced. Provide in-text citations and the
reference list using Harvard referencing system. The recommended word limit is 4000
words, although you will not be penalised for exceeding the total word limit.

Unit Learning Outcomes:

LO1: Analyse the information requirements of organisations.


LO2: Discuss the types of information systems that are used within all levels of an
organisation.
LO3: Demonstrate the use of an information system to produce management
information.
LO4: Evaluate the effectiveness of strategic information systems.

H.P.D.Mandara prawarshana 6 Unit 07:


Strategic Information Systems
Assignment Brief and Guidance:

Scenario
The success of any organisation is depends on the how data and information is
captured, processed, utilised and output. Information generated within the organisation
can be used to gain oraganisational efficiency, productivity and improved business
decision making. Modern organisations are heavily rely on use of Business
information systems to generate and disseminate desired information throughout the
organisation.

Assume that you have been recruited as the associate business analyst for the
organisation and you have been asked to prepare a management report to the top
management by highlighting the importance of using information systems to generate
productive results.

The organisation could be based on your own work environment or an organisation


that you have a knowledge and understanding about.

In this report you are required present the profile of the organization indicating the
vision, mission, objectives and organizational chart.
Activity 01
 Discuss the information needs of the main functional departments of the selected
organisation and compare different processing activities that happen within the
functional departments. your answers should be supported with the examples
taken from the selected organizational context.

 Produce an Input/out diagram to represent the data and information requirements


of each functional department of the chosen organization and evaluate
integration of data and information by considering input, output and processing
activities of the organization,s departments/functions.

Activity 02

 Identify and describe information systems that can be implemented to the


chosen organization with an explanation to the functionalities of each. You also

H.P.D.Mandara prawarshana 7 Unit 07:


Strategic Information Systems
are required to differentiate the identified information systems between
management levels and functional areas of the organization based on their
functions and purpose. Illustrate your answer with examples.
 Discuss the information needs required at operational, tactical and strategic
level of the organization with an analysis on how the effectiveness of each
management level can be improved with the support of the information systems
suggested by you.

Activity 03

 “Availability of current, valid, accurate data and information is absolutely


important to an organization”
Discuss the above statement with relevant to the context of the chosen
organization and critically evaluate with examples, how such information can
be used for effective decision making and forecasting in the organization.
 Demonstrate the use of an information system for management reporting
purposes and analyze the constraints that the organization may face when
gathering data and information for management reporting.

Activity 04

 Identify and explain different models that can be applied to strategic information
systems and evaluate and justify how the chosen organization can use strategic
information systems to gain a competitive advantage in the global market using
the models identified. You are also required to evaluate how strategic
information systems can contribute to the competitiveness of organisations.
Support your answer with relevant examples, illustrations and explanations.

H.P.D.Mandara prawarshana 8 Unit 07:


Strategic Information Systems
Grading Criteria Achieved Feedback

LO1: Analyse the information requirements of organisations.

P1 Discuss the information needs and requirements for the


functional departments of an organisation.

P2 Produce an input/output (I/O) diagram to represent the


data and information requirements of a functional
department.

M1 Compare and contrast different processing activities


that occur within functional departments within an
organisation.
D1 Evaluate the inputs, outputs and processing activities of
a selected organisation.

LO2: Discuss the types of information systems that are used within all levels of an organisation.
P3 Describe the function of different information systems.

H.P.D.Mandara prawarshana 9 07:


Unit
Strategic Information Systems
P4 Discuss the information needs required at differing
levels within an organisation.

M2 Analyse the effectiveness of information systems at the


operational, tactical and strategic levels within an
organisation.
D2 Differentiate between the function and purpose of
information systems at different levels within an
organisation.
LO3: Demonstrate the use of an information system to produce management information

P5 Demonstrate the use of an information system for


management reporting purposes.

P6 Discuss the importance of an organisation having data


and information that is current, valid and accurate.

M3 Analyse the constraints that an organisation can face


when gathering data and information.
D3 Critique with examples, how a given organisation can
use information for effective decision-making and
forecasting.

H.P.D.Mandara prawarshana 10 07:


Unit
Strategic Information Systems
LO4: Evaluate the effectiveness of strategic information systems

P7 Identify different models that can be applied to strategic


information systems.

M4 Justify the ways in which an organisation can obtain


competitive advantage within a global market.

D4 Evaluate how strategic information systems can


contribute to the competitiveness of organisations.

H.P.D.Mandara prawarshana 11 07:


Unit
Strategic Information Systems
Acknowledgement

The timely and effective completion of the book would not have been possible without the
assistance and support of many people. I'd want to use this occasion to express my gratitude to
everyone who assisted me in some way throughout this crucial project, whether directly or
indirectly. First of all, I wish to express my sincere gratitude and due respect to my Mis.
Tharika amali lectures in department of Computing Esoft Metro Campus Matara. I give him a
great heartfelt thanks for his invaluable advice, constant encouragement, and positive support,
all of which greatly aided me during my time at work. I'd want to thank him for always taking
an active interest in my questions and making useful advice.

H.P.D.MANDARA PRAWARSHYAN

H.P.D.Mandara prawarshana 1 Unit 07:


Strategic Information Systems
Table Of Contents
Acknowledgement ......................................................................................................................... 1

Learning Outcomes:01 ...................................................................................................................5

1.1 The Sampath Bank's Introduction ....................................................................................5


1.2 Sampath bank Vision , Mission and Value ......................................................................7
1.3 Organizational chart .........................................................................................................7
1.4 Benefits of Organizational chart ...................................................................................... 8
1.5 Functional Area of an Organization .................................................................................9
1.6 The selected organization's main functional department of sampath bank. .................. 10
1.6.1 Finance Function ........................................................................................................10
1.6.2 Marketing Function .....................................................................................................11
1.6.3 Human Resource & Development Function ...............................................................12
1.6.4 Administrative Function ............................................................................................. 13
1.6.5 Information Technology Function ............................................................................. 14
1.7 Compare and contrast the various processing operations that take place inside the
Sampath Bank's functional departments. ............................................................................. 15
1.8 Input Output Diagrams .................................................................................................. 16
1.8.1 HR & Development Function ............................................................................. 17
1.8.2 Marketing Function .............................................................................................18
1.8.3 Finance Function .................................................................................................19
1.8.4 Administration Function ..................................................................................... 20
1.8.5 IT Function ......................................................................................................... 20

Learning Outcomes:02 .................................................................................................................22

2.1 Information System Types .............................................................................................22


2.2 Transaction Processing System (TPS) ...........................................................................22
2.3 Office Automation System (OAS) .................................................................................24
2.4 Management Information Systems (MIS). .................................................................... 25
2.5 Decision Support Systems (DSS) .................................................................................. 27
2.6 Executive Information Systems (EIS) .......................................................................... 29

H.P.D.Mandara prawarshana 2 Unit 07:


Strategic Information Systems
2.7 Information required at various levels within an organization. ..................................... 30
2.8 Strategic Level Management ......................................................................................... 31
2.9 Tactical Level Management ...........................................................................................32
2.10 Operational Level Management ...................................................................................33
2.11 Data Security ................................................................................................................33

Learning Outcomes:03 .................................................................................................................34

3.1 Gathering Data ...............................................................................................................34


3.2 Demonstrate the use of an information system for management reporting purposes. ...34
3.3 Analise the constraints that an organization can face when gathering data and
information. ..........................................................................................................................36
3.4 Data cleaning ................................................................................................................. 36
3.5 Data transformation ....................................................................................................... 37
3.6 Discuss the importance of an organization having data and information that is current,
valid and accurate. ............................................................................................................... 37
3.7 Management Reporting ..................................................................................................39

Learning Outcomes:04 .................................................................................................................41

4.1 Identify different models that can be applied to strategic information systems. ........... 41
4.2 Porter’s Five Forces Analysis ........................................................................................ 41
4.3 Wiseman’s Strategic planning process. ......................................................................... 44

References ....................................................................................................................................47

H.P.D.Mandara prawarshana 3 Unit 07:


Strategic Information Systems
Figures and Tables
Figure 1 -sampath bank(sampath bank.lk/2022) ...................................................................5
Figure 2 - organize chart (researchgate.net /2022) ............................................................. 8
Figure 3 -Common Functional Areas iedunote.com/(2022) .................................................9
Figure 4 - Finance and Planning department(financeguideonline.com/2022) .................. 11
Figure 5 -marketing department (verizon.com/2022) .........................................................12
Figure 6 -Human Resource and Development Department (hrmexam.com/2022) ............. 13
Figure 7 -administrative department( hrmexam.com/2022) ...............................................14
Figure 8 - Information Technology Department ( hrmexam.com/2022) ............................ 15
Figure 9 -Input Output Diagrams(study.com/2022) ...........................................................17
Figure 10 - - information system (sketchbubble.com/2022) ............................................... 22
Figure 11 - - Office automation systems(sketchbubble.com/2022) .................................... 24
Figure 12 - MIS (topeer.com/2022) ...................................................................................26
Figure 13 - EIS (slideplayer.com/2022) ............................................................................. 29
Figure 14 - Levels of Management(sketchbubble.com/2022) ............................................. 31
Figure 15 - 3.1Gathering Data(jooinn.com/2022) ............................................................. 34
Figure 16 - data cleaning (erpinnews.com/2022) .............................................................. 37
Figure 17 - example chart (sampath.lk/2017) .................................................................... 40
Figure 18 - example chart (sampath.lk/2017) ................................................................... 40
Figure 19 - 1Porter’s Five Forces Analysis(quora.com/2022) ........................................... 41
Figure 20 - Wiseman’s Strategic planning process (Slidetodoc.2022) ............................... 44

Table 1 advantage and disadvantage (the author/2022) .................................................... 25


Table 2 - advantage and disadvantage (the author/2022) .................................................30

H.P.D.Mandara prawarshana 4 Unit 07:


Strategic Information Systems
Learning Outcomes:01

1.1 The Sampath Bank's Introduction


Sampath bank was established on march 1986 in Sri Lanka as a licensed commercial bank of
Ceylon. Meanwhile, Sampath bank won the bank of the year award for the second
consecutive year and the national business excellence award in 2010 by London-based
financial times limited and banker.

Accordingly ,Sampath bank has set up 229 branches island wide and 373 ATM machine
island wide. Here accordingly, 4048 employees are employed island wide.

Accordingly, it is listed on the Colombo stock exchange under the companies Act no.17 of
1982 and is supervised by the central bank under the backing act no.30 of1988. Today,
sampath bank is also leaning to wards smart banking. Smart banking makes it easy for the
customer to carry out their transactions and these banks are adapted in such a way that they
can do their backing work from their mobile phone. The following is the logo of sampath
bank.

Figure 1-sampath bank(sampath bank.lk/2022)

In addition, sampath bank maintains various accounts and services for its customers.as
follows services maintained by sampath bank.

H.P.D.Mandara prawarshana 5 Unit 07:


Strategic Information Systems
 Deposits Products
Deposit products are a wide range of financial products in which consumers give (deposit)
monies to a financial institution (in cash or digitally) in exchange for a financial return, which
varies based on the deposit type and length. For this purpose, sampath bank has introduced
bank accounts according to different age levels.

 Deposits Products

Savings Accounts
1. Regular Savings ( sampath double S / sampath Hit server )
2. Children's Savings ( sampath sapiri / sampath pubudu )
3. Teenage Savings ( sampath X-SET account)
4. Ladies Savings ( ladies 1st)
5. Senior Citizens Savings (sampath sanhida server account)
6. Money Market (money market account)
7. Investment Accounts (sampath dream plans)

Fixed Deposits
1. Rigular deposits (Fix deposits / certificate of deposits / sampath ODFD )
2. Senior Citizens FD (Sampath sanhida FD )

 Lending Products
Any of the many bilateral credit products offered by private or governmental banking
organizations and institutions are referred to as lending products. The following are the
services provided by resource bank.

Loans
1. Housing Loans ( sevana house loan / sevana dayada house loan / foreign currency
house loan)
2. Business Loans ( Sampath saviliya)
3. Personal Loans ( Sampath samachara)
4. Refinance ( Refinance credit lines)
Pawning

H.P.D.Mandara prawarshana 6 Unit 07:


Strategic Information Systems
The above are the services provided by Sampath Bank. In addition, the bank has launched
smart banking and introduced mobile apps and electronic cards. That is, these are the services
provided to the customer.

1.2 Sampath bank Vision , Mission and Value


The vision statement focuses on the future and what the company aspires to be. The mission
statement concentrates on the present and the work of the organization. While mission and
vision statements are frequently used interchangeably, both are necessary. It's impossible to
have one without the other, because having a sense of purpose and meaning is essential for
every business.

Sampath bank Vision


"The Growing Force in Sri Lankan Financial Services" (sampath bank.lk/2022)

Sampath bank Mission


“Lending products are any of the wide variety of bilateral credit products that are offered by
private or public banking firms and institutions. Credit Cards. Car Loans. Mortgages.
Residential Mortgage.” (sampath bank.lk/2022)

Values
“Create a learning culture that promotes individual and organisational development as well as
promoting innovation and value for customers.Treat all internal and external customers the
way we would like to be treated.Encourage and promote teamwork in all aspects of behaviour.
Open to feedback and demonstrate an eagerness for personal development. Monitor and
demonstrate an impressive commitment to results. Uncompromising ethical and professional
standards of behaviour.” (samapth bank.lk/2022)

1.3 Organizational chart


An organizational chart is a visual representation of a company's internal structure that lists
the duties, positions, and interactions of each employee.
There are many uses for organizational charts, and they may be set up in many ways. They
might be utilized as a management tool, a planning tool, or a personnel tool, for

H.P.D.Mandara prawarshana 7 Unit 07:


Strategic Information Systems
instance.directory. Perhaps your company does not run in a "command and control" manner,
but rather through teams. The following is a simple organization chart.

Figure 2 - organize chart (researchgate.net /2022)

1.4 Benefits of Organizational chart


 The organizational chart depicts a clear reporting structure
You may create a clear organizational structure with organizational chart software. This gives
your workers a place to go to find out who's who, who they need to report to, who runs
certain departments, and so on.

 It is simpler to envision abilities and expertise in order to spot deficiencies.


You may maintain track of your company's staff and their specific abilities and traits by
utilizing an organizational chart to map out individual employees.

H.P.D.Mandara prawarshana 8 Unit 07:


Strategic Information Systems
 The employee has the ability to manage his or her work
When correctly implemented and managed, an organizational chart may assist your staff in
visualizing and staying on top of their assignments.

 It allows you to create and test Hypotheticals.


This is important in some situations, such as when a big organizational shift is approaching,
when expansion is expected, or when a large project is nearing completion.

1.5 Functional Area of an Organization


The term "functional area" refers to the grouping of activities or processes based on their
importance in completing one or more tasks. Because individuals work together in
departments, it is frequently easier to define discrete functional areas in a large business.
Each department is responsible for the responsibilities that pertain to its specific field.
The primary goal of functional areas is to guarantee that all critical business tasks are
completed effectively. This is necessary if the company is to meet its goals and objectives.
The Common Functional Areas of an Organization are listed below.

Figure 3 -Common Functional Areas iedunote.com/(2022)

H.P.D.Mandara prawarshana 9 Unit 07:


Strategic Information Systems
1.6 The selected organization's main functional department of sampath
bank.
Employees are arranged according to a functional organizational structure. Depending on
their individual skills and expertise, they are classified into groups. Each department is
organized vertically, with duties ranging from the president through the finance and sales
divisions, customer support, and personnel assigned to a single product or service.
Accordingly, the following are some of the divisions in sampath bank.

1.6.1 Finance Function


Sampath Bank is a large company in the financial sector. There for Finance and Planning
Department is very important in this organization. The Finance and Planning department
function involves the acquiring and utilization of funds necessary for efficient operations.

The finance department keeps track of all money generated and spent so that the company's
senior executives constantly know how much profit or loss each product or division generates,
as well as how much cash the company has on hand. Finance liquidity is extremely crucial in
the service industry. The finance and planning section is in charge of managing the
company's financial liquidity.

The finance and planning department needs information about daily cash balance and assets,
and liabilities in the branches. This information is needed to know the financial position of
the company and manage proper cash liquidity in the Bank. Also, this information is direct to
getting investment decisions and making a strategic plan in the Bank.

The finance and planning department needs to know how much money is coming in and
going out of the branches. This data is required to determine the profit or loss of the branches
and the entire bank. This book will help you make financial decisions and create a Branch
Business Development Plan.

They require financial data from the whole bank in order to prepare financial reports on a
monthly, quarterly, and annual basis. They also prepare financial reports at the end of the
year. These reports serve as guidelines for making management choices and anticipating the
future of the organization.

H.P.D.Mandara prawarshana 10 Unit 07:


Strategic Information Systems
Figure 4 - Finance and Planning department(financeguideonline.com/2022)

1.6.2 Marketing Function


The marketing department is a main functional area of an organization. Its main task is the
sale and distribution of company products. Sampath Bank has two main categories of
products. There are Savings products and Lending products. The marketing department's
main task is to sell these products to the customers.

The marketing department needs information on the amount of Pass Books stock in the
branches. This information is required to keep track of and print the Bank's passbook
requirements. It aids in the timely processing of branch day-to-day activities. The marketing
department needs information about how many customers are maintaining a number of
accounts product-wise. This information is needed to market segmentation and identify which
products want to be newly launched.

The marketing department requires information on which products are the most popular and
which are the least popular. This data is required for planning and arranging savings
promotion programs in order to sell the lowest-selling items.

Accordingly the functions of the marketing department of sampath bank are mentioned above.
Marketing activities separate to sampath bank to do a marketing team has been appointed.

H.P.D.Mandara prawarshana 11 Unit 07:


Strategic Information Systems
Figure 5 -marketing department (verizon.com/2022)

1.6.3 Human Resource & Development Function


An organization's Human Resource and Development Department is critical. Its primary
responsibility is to manage and develop an organization's human resources. The Human
Resource & Development department maintains and updates the organization's employee
information.

The Bank's human resource and development department need information on all employees'
performance evaluations. This data is required to plan a bank's overall training requirements.
Furthermore, this information is required for the delivery of promotions. The Bank's human
resource and development department need information on all of the employees' personal
information. This information is required to keep personal files for each Bank employee. All
workers' information must be kept up to date in this section. As a result, they required to
update personnel information on a regular basis.

The human resource and development department requires information on the employees
who meet the requirements for advancement. This information is required to call for
promotion applications and to schedule employment exams and interviews. The human
resource and development department need information on employees who have worked at
the same job station for more than five years. This data is required to set up a bank transfer
policy.

H.P.D.Mandara prawarshana 12 Unit 07:


Strategic Information Systems
Figure 6-Human Resource and Development Department (hrmexam.com/2022)

1.6.4 Administrative Function


The administrative department is in charge of the bank's general operations. It has complete
authority over the Sampath Bank's branches. The administrative section informs the Bank of
new rules and regulations. The sampath Bank's internal control and operation have been
improved thanks to new laws and regulations.

The administrative department need information on prospective new branch locations. This
information is required in order for the Sampath Bank to pick regions in which to build new
branches. Here, The administrative department needs information about how many managers
and deputy managers retire in the current year. This information is needed to assign new
managers and deputy managers to relevant branches.

The administrative department requires information on how many loss-making branches there
are. This information is required in order to devise a strategy for converting loss-making
branches to profitable ones.It is also a matter for the administration to get a top name among
the banks. An experienced team has also been appointed to look in to the matter. Also any
organization can be properly developed through proper management. As administrative
department is very important for this.

H.P.D.Mandara prawarshana 13 Unit 07:


Strategic Information Systems
Figure 7 -administrative department( hrmexam.com/2022)

1.6.5 Information Technology Function


The Information Technology Department is acting as the bank's heart. It's a crucial part of the
Bank's operations. The major responsibility of the information technology department is to
update and manage the Bank's data and information. Here , Employee names, employee user
names, and all employees' EPF numbers are needed by the information technology
department. This information is required in order to create a Bank system login for each bank
employee.

The information technology department needs information about daily day-end cash balances,
General Ledger, and Trial balance of the branches. This information is needed to generate
financial statements for the finance and planning division. Here ,Information technology
department needs information about no of Personal Computers and servers requirement of the
Branches. This information is needed to place an order to buy servers and mini computers.

The IT department need information on how many branches require the Microsoft Office
bundle. This data is required to obtain a Microsoft Office license for Bank. The department
also needs to know the number of computers that work and the number of computers that do
not work properly as well as the software used by resource bank. In addition, more attention
should be paid to safety. This protection should be tightened to minimize damage to
computers. It is the responsibility of the department of technology to increase security by
deploying open equipment for this purpose.

H.P.D.Mandara prawarshana 14 Unit 07:


Strategic Information Systems
Figure 8 - Information Technology Department ( hrmexam.com/2022)

1.7 Compare and contrast the various processing operations that take place
inside the Sampath Bank's functional departments.
Diverse functional departments' processing operations inside an organization may take on
different or identical looks. Each functional department in the Sampath Bank has distinct and
equivalent processing tasks.

The most crucial functional area of Sampath Bank is the finance and planning department.
Different processing operations might be seen by the finance and planning department. The
primary processing function of the finance and planning department is the creation of
financial statements for management decision-making. The finance department, for instance,
produces an annual report. A centralized system that is overseen by the IT department
collects the data required to organize financial reports.

As an illustration, the financial department computes employee compensation while thinking


about the processing tasks performed by the department further. Some of the information
from the HR & Development department is required when the finance department calculates
salaries. Finally, the IT department receives the result of the pay computation and deposits it
into the employee's account. Here For processing purposes, the financial department needs
financial and numerical data.

H.P.D.Mandara prawarshana 15 Unit 07:


Strategic Information Systems
Information about personnel is gathered and updated as part of processing operations by the
human resource and development department. A training program, a transfer policy, and the
creation of employee personal files all require this data. The person's Financial information is
not required by the resource and development department.

Processing operations in the marketing department are comparable to those in the finance and
planning departments. For processing purposes, the marketing division also requires financial
and numerical data. For instance, the marketing department needs a large number of
passbooks at the branches in order to print new passbooks.

Data processing tasks performed by the IT department include data storage, data updating,
and data safeguarding. Processing activities in the IT department are distinct from those in
other departments. All other departments offer help to the IT department. The IT department
wants to work with other functional areas to store and manage data.

All banking operations in the Branches are processed by the administrative department,
which also keeps an eye on everything. The administrative division updates the Bank's rules
and regulations. The Sampath Bank's internal control and operation have been facilitated by
new rules and regulations. Processing activities in the administrative department are distinct
from those in the bank's other functional departments.

1.8 Input Output Diagrams

The most basic type of flow diagram used in industry is an input-output diagram. The inputs
and outputs are located on opposite ends of a single block in input-output diagrams. Input
here is a set of data from which no definite conclusion can be drawn. That is, they cannot be
understood and the end result obtained. For this, the input data is processed. That is, data is
collected in one place.that data is also processed properly here. After the data is processed,
the data is returned. Here the data is converted in to information and returned. Here you can
understand something from the information. Giving out information provides feedback
related to that information. This action works like a cycle. Below is a diagram of the input
and output process.

H.P.D.Mandara prawarshana 16 Unit 07:


Strategic Information Systems
Figure 9 -Input Output Diagrams(study.com/2022)

Accordingly, the departments of the resource bank will also use this cycle. Here the input,
process , output and feedback department are diversely essential. The following is how the
input and output process affects the department of resources bank.

1.8.1 HR & Development Function

The input output diagram also affects the HR department of sampath bank. That is employees
data is retrieved and processed and information is returned. Accordingly, the following is a
digram relevant of the department of HR.

INPUT (DATA)
 Employee name
PROCESS OUTPUT
 Employee EPF
(INFORMATION)
No
 Employee
 Sorting and  Personal files
number
compiling each for each
 Employee
employee data employee
address
 Educational
Qualification

FEEDBACK

First the data is retrieved and processed to obtain information. The following is an example
of this action.

H.P.D.Mandara prawarshana 17 Unit 07:


Strategic Information Systems
Ex = INPUT the data - Employee name , Employee number , Employee address ,
Educational Qualification and other details.
Process - Collects information of all employees. Once the information is collected, the
employee is given a unique EPF number.
Output - The employee refers to the EPF number for retrieving any employee information.
Then all the information of the relevant employee will be displayed.

1.8.2 Marketing Function

The input-output diagram also affects the Marketing department of Sampath bank. Here is
the type of passbook relevant to the bank. The number of current passbook and the number of
relevant passbook in the future will be calculated here. Accordingly, the following is how it is
inserted in to the relevant digram.

OUTPUT
INPUT (DATA) (INFORMATION)
PROCESS

 Each branch's  Number of


 SUM of the
required number passbooks to be
number of
of passbooks newly print
passbooks that
the bank
requires

FEEDBACK

First, the data will be retrieved and processed. Then it becomes meaningful information. The
following is an example of this.
EX = Input data - Each branch's required number of passbooks.
Process - SUM of the number of passbooks that the bank requires.
Output - Number of passbooks to be newly print

H.P.D.Mandara prawarshana 18 Unit 07:


Strategic Information Systems
1.8.3 Finance Function

Here the salary of the employees is calculated. Obtaining employee data takes place
first.(EPF number , employee name , basic salary ETF deductions and other deduction. After
obtaining the data, the employees salary is calculated using the relevant formula for
calculating the salary. The final salary of the employee can then be obtained as information.

INPUT (DATA)
 EPF number PROCESS OUTPUT
 Employee name (INFORMATION)
 Net salary =
 Basic salary
((Basic Salary+  Salary record
 ETF deductions Allowance) - (ETF
Deduction + Other
 Other
Deduction))
Deductions

FEEDBACK

The following is an input and output diagram that will be used to retrieve employee data and
generate the final salary.

EX = Input the data - Need data for monthly salary calculation. EPF No, Employee Name,
Basic Salary, Allowances, ETF deductions, other Deductions
Process - The formula used to prepare salaries.
Net Salary = ((Basic Salary + Allowance) – (ETF Deduction + Other Deduction))
= ((60000+30000) – (4800+22000))
Output - calculate the salary of the employee and get the final salary.
EPF number -1011 / employee name - mandara / employee adress - matara / net salary -
55000

H.P.D.Mandara prawarshana 19 Unit 07:


Strategic Information Systems
1.8.4 Administration Function
All matters relating to the administration to the administration of the resource bank are
handled by this department. This department also used the input output digram.
Accordingly ,this department needs information on where the sampath bank subsidiaries are
located and where the new ones will be built. After adding the above information to an input
output digram.

OUTPUT
INPUT (DATA) (INFORMATION)
PROCESS
 Information on  Potential
prospective  Conduct locations for
locations for research to opening
new branch select additional
openings acceptable branches
locations.

FEEDBACK

After inputting the relevant data by this department , the data will be processed and the
information will be returned. This is illustrated by the following example.

EX = Input data - Details of the potential areas for new Branch Opening.
Process - Do a physicality study to choose appropriate places.
Output - Potential locations for opening additional branches.

1.8.5 IT Function
This input output diagram also applies to the IT department. That is, all companies are
leaning towards technology. Sampath bank is also leaning towards new technology.
Accordingly, the department of information technology has decided o facilitate all banks

H.P.D.Mandara prawarshana 20 Unit 07:


Strategic Information Systems
through technology. By taking all the information of the bank to the computers, the
employees can go to their computers and carry out their day to day activities. The following
is an input output digram of the process by which employees log in to their computer.

OUTPUT
INPUT (DATA) (INFORMATION)
 Employee user PROCESS
name  If the data is
 Employee correct, it can
 Check that the
password
correct data is enter the system
 Employee NIC
provided
number

FEEDBACK

Here the relevant user name and password of the employee is entered in the IT department.
The employees can still log in to their computer by entering the user name and password. The
IT department has all the information related to his action. The following is the input and
output process related to an activity performed by the IT department.

EX= Input data - employees user name , employee password , EPF number , NIC number
and employee register number.
Process - Create system login credentials for each employee.

Output - System login for every employee

H.P.D.Mandara prawarshana 21 Unit 07:


Strategic Information Systems
Learning Outcomes:02

2.1 Information System Types


Users of information systems can gather, store, organize, and disseminate data tasks that can
be useful for businesses for a number of reasons. Information systems are used by many firms
to manage resources and boost productivity. Here the information system is divided into two
parts. That is operational support and management support. That is, five information systems
have been identified for this purpose. The following five information system are explained
separately.

Figure 10 - - information system (sketchbubble.com/2022)

2.2 Transaction Processing System (TPS)

An information system that facilitates the gathering, editing and retrieval of all transaction
data is known as a transaction processing system (TPS). Real-time processing and transaction
processing are other names for it. Here, Operational level employees in the company mostly
utilize the Transaction Processing System (TPS). As an illustration, the Sampath bank
employs counter tellers and front office personnel. Another information system receives data
from transaction processing systems. Many additional information systems in the bank use
TPS data.

The following is an example of a transaction processing system (TPS).


A computerized system known as a transaction processing system carries out and documents
the everyday transactions required for commercial operations. The following are examples of
this.

H.P.D.Mandara prawarshana 22 Unit 07:


Strategic Information Systems
 Attendance record Systems
 Banking Systems
 Payroll Systems
 Stock Management Systems

There are two different kinds of transaction processing systems (TPS).


1. Batch processing
A TPS interprets collections, or batches, of data through batch processing by putting things in
groups based on similarities. Because batch processing examines several data sets
concurrently and needs greater computer resources, it might cause a delay.
2. Real-time processing
Processing transactions as they happen is known as real-time processing. As a result, the
processing isn't delayed and the outcome could be more precise. Real-time processing doesn't
have a time delay and handles one transaction at a time.

The organizational objectives of TPS are as follows,


 Improved clientèle service
 Improve the effectiveness of operation level personnel
 Other groups can learn from a successful competition.
 Produce up-to-date reports and documents

Advantage and disadvantages Transaction processing system.


Advantage Disadvantage

error correction High processing costs

Simple to use No established formats

Real-time or batch processing is supported. Discrepancies between hardware and


software
Productivity and customer satisfaction gains

Table 1- advantage and disadvantage (the author/2022)

H.P.D.Mandara prawarshana 23 Unit 07:


Strategic Information Systems
2.3 Office Automation System (OAS)
Office automation systems (OAS) are programs that are intended to boost worker
productivity, especially among knowledge workers, and improve workplace communication.
Here ,Office automation systems gather, process, store, and send electronic communications
between people, teams, and organizations.

Word processing (MS Office), desktop publishing, voice mail, e-mail (MS Outlook, Lotus
Note), video-conferencing (MS Teams), and multimedia systems are a few examples of office
automation systems. Information storage, data interchange, and data management are the
Office Automation System's core functions. The picture below illustrates this further.

Figure 11 - - Office automation systems(sketchbubble.com/2022)

Office Automation System Features.


1. Integrated with other software.
The process of combining several software sub-systems into a single, cohesive system is
known as software integration. There are several situations when software integration is
necessary, including transferring data from an old database system to a new one that uses
cloud storage. Here , It's crucial to pick a system that permits connectivity with other
software if the already utilize other tools, such as email marketing, CRM, banking systems,
etc.

H.P.D.Mandara prawarshana 24 Unit 07:


Strategic Information Systems
2. Automating of manual tasks.
Task automation is the use of software to carry out tasks at work. Work flow accuracy and
consistency are increased by task automation, which also drives more effective operations.
3. Easy work flow design.
Laying out all jobs and processes in a visual map is the process of work flow design, which
gives team members and stakeholders a high-level perspective of each activity involved in a
certain process.
4. Minimize the office workload.
Here, A facilitator organizes, leads, and oversees a group activity to achieve its objectives.
Being impartial and concentrating on the "group process" are essential for good facilitation.
Specifically, how teams collaborate to complete tasks, reach decisions, and address issues.
5. Multitasking.
An operating system's multitasking feature enables a user to handle many computer tasks
simultaneously, such as running application software.

Advantage and disadvantages Office Automation System .


Advantage Disadvantage
Minimize the lost of documents and Training needed for work with office
information leaks automation systems.
Management of data Office automation software and equipment's
high start-up costs.
Exchanging data Maintenance costs for equipment.

Save more time and resources

Table 1 advantage and disadvantage (the author/2022)

2.4 Management Information Systems (MIS).

A designed system for gathering, storing, and disseminating data in the type of information
required to carry out management tasks is known as a management information system (MIS).
Here, The fundamental goal of MIS is to give middle- and lower-level management paper or
electronic reports with information for making decisions. The objectives of MIS are to put the

H.P.D.Mandara prawarshana 25 Unit 07:


Strategic Information Systems
organizational structure into place, effectively manage the company, and realize the
information system's potential for competitive advantage. Data from TPS are often extracted
and summarized using computerized MIS. The picture below illustrates this further.

Figure 12 - MIS (topeer.com/2022)

Management information system Features.


1. Decision-making
MIS is set up to deliver data for making decisions. The inclusion of real-time data aids in
practical decision-making. It produces periodical reports and carries out research as necessary.
2. Flexible
It should be simple, fast, and seamless to implement new modifications. Rapid change is
occurring in information technology. The accuracy and usefulness of information increase
when such novel procedures are applied.
3. Variety
The system should be flexible. New changes should be incorporated easily, quickly, and
smoothly. Information technology is changing rapidly. When such new techniques are used,
the accuracy and utility of information improve.
4. Continuous flow
A well-designed MIS offers a steady stream of data for making decisions. Retailers and
suppliers are linked directly through electronic cash registers and computer systems. As a
result, ongoing customer purchase information is made public.

H.P.D.Mandara prawarshana 26 Unit 07:


Strategic Information Systems
Report types of MIS
1. Planned (regular) reports.
Daily, weekly, or monthly reports are provided.
2. Drill-down reports.
Reports that give specific information on a problem.
3. Reports on exceptions.
When a situation is unique or demands management action, reports are automatically
generated.
4. Demand reports.
On someone's request, reports or screen outputs are created to provide pertinent
information.

Characteristics of a MIS
1. Create both hard-copy and electronic reports.
2. Enabling individuals to create their own unique reports
3. Reports should be delivered in a consistent format.
4. Rely on both internal and external data.
5. Management Oriented.

Advantage and disadvantages Management information system .


Advantage Disadvantage
It makes planning easier Inability to adapt to new information.

It facilitates coordination Because senior management changes often,


effectiveness declines
Control is facilitated. Need ongoing supervision of sensitive
information
Decentralization is Encouraged by MIS

Table 3- advantage and disadvantage (the author/2022)

2.5 Decision Support Systems (DSS)


A decision support system (DSS) is computer software that an organization or corporation
uses to support decisions, judgement, and courses of action. DSS generates data patterns and

H.P.D.Mandara prawarshana 27 Unit 07:


Strategic Information Systems
trends using analytical algorithms. Here, Decision-making, prompt problem-solving, and
increased effectiveness in handling operations, planning, and event management are all made
possible by decision support systems.
Data patterns and trends are produced by a decision support system. DSS is used in business
situations that are semi- or unstructured.

A decision support system's components.


 knowledge base
Here, Information from both internal (information gathered in a transaction process system)
and external sources are included in the knowledge base (newspapers and online databases)
 user experience
Tools that aid a DSS end-user in navigating the system are included in the user interface.
 Model Management System
Models that managers can utilize in their decision-making are stored in the model
management system. The models are used to anticipate demand for goods and services and
make decisions about the organization's financial health.

Decision Support System Capabilities


 Support for different levels of decision-making
 assistance with various issue structures
 assistance with various decision frequencies
 Support for problem-solving phases

Advantage and disadvantages Decision support system


Advantage Disadvantage

Low cost Blame computer

Efficient Wrong coding of software:

Communication Wrong information

Fast limited abilities

Table 4- advantage and disadvantage (the author/2022)

H.P.D.Mandara prawarshana 28 Unit 07:


Strategic Information Systems
2.6 Executive Information Systems (EIS)

Senior executives are helped in their decision-making by an executive information system


(EIS). The executive support system is another name for this system. A type of management
information system that makes it simple for senior executives to obtain both internal and
external information that is pertinent to achieving the organization's strategic goals.
A user-friendly interface and graphical displays are typical elements of an EIS. Many
different kinds of businesses can utilize executive information systems to track business
performance and spot possibilities and issues.

Figure 13 - EIS (slideplayer.com/2022)


Features of the executive information system
1. Screen Hot Spots
Ares is sensitive to user interfaces.
The linked information will open in a new window after a mouse click.
2. Traffic light colour coding
To get the managers' attention, use colour schemes.
zones with red under performance
Marginal performed areas
Very successful green spaces(green)

Characteristics of executive information system


 Tailored to individual executives
 Help with uncertain situations

H.P.D.Mandara prawarshana 29 Unit 07:


Strategic Information Systems
 Support the need for external data
 Have drill-down abilities and future orientation

Advantage and disadvantages executive information system


Advantage Disadvantage

It has the capacity to analyse trends. It's difficult to keep recent data.

Improves the reporting system Executives deal with information overload.

Communication is more effective and has a It is challenging to put a number on the


larger capacity. benefits and support its use.
Increases the office automation's Due to its inability to do complicated
effectiveness, timeliness, and correctness computations, its capabilities are restricted.
Strategic control flexibility is involved. Results in data that is less secure and
dependable.
Aids CEO s in developing a more accurate
corporate mental model.
Early detection of an organization's
performance is possible.
Table 2 - advantage and disadvantage (the author/2022)

2.7 Information required at various levels within an organization.


There are 03 levels of the management can identify in the sampath Bank. Below are those
three management levels.
1. Strategic Level Management
The constant planning, monitoring, analysis, and assessment of all requirements that a
company requires to accomplish its goals and objectives is known as strategic management.
Organizations will need to continuously evaluate their success tactics as business
circumstances change.

2. Tactical Level Management


In order to accomplish a strategic goal or purpose, tactical management entails selecting an
appropriate path of action. The collection of everyday activities that support the execution of
long-term strategy is thus included in tactical management.

H.P.D.Mandara prawarshana 30 Unit 07:


Strategic Information Systems
3. Operational Level Management
The actions involved in directing the production of commodities and rendering of services,
including the management of resources, technology, personnel, and items, are referred to as
operations management. For the firm to be competitive, these factors need to be effectively
controlled.

The digram below shows how these three layers are located. In addition, the importance of
these three layers to the resource bank is explained below.

Figure 14 - Levels of Management(sketchbubble.com/2022)

2.8 Strategic Level Management

The constant planning, monitoring, analysis, and assessment of all requirements that a
company requires to accomplish its goals and objectives is known as strategic management.
Management at the strategic level creates the organization's overall vision and mission as
well as strategic goals and policies. Here ,It points the organization on the appropriate path so
that it may accomplish its aims. In a cut-throat corporate climate, keep an eye on the
organization's strategic performance and general direction. preserving communication
between the company and the outside world. That is, The strategic level management of the
Sampath Bank is the Chairperson, Board of Directors, and General Manager.

H.P.D.Mandara prawarshana 31 Unit 07:


Strategic Information Systems
The strategic management level of Sampath Bank requires a summary of bank finance
information. To make investment decisions and develop strategies to meet company goals
and objectives, this information is required. Information on the Bank's current market status
is still needed. To create a bank's strategy plan, these data is required.

Executive Information Systems employ strategic level management (EIS). Executive


Information Systems (EIS) offer drill-down capabilities and an overview of the available
information. A summary of the data is required for management at the strategic level. Making
an ad hoc decision is supported by this knowledge. Both quantitative and qualitative
information is possible. Information systems created for the strategic level primarily address
corporate business requirements. Here, Sampath Bank's strategic level management makes
use of reports on the financial statement summary and the marketing statement summary.
Thus ,it has been demonstrated above that sampath bank maintain good strategic management.

2.9 Tactical Level Management

For the organization's divisions, tactical-level management creates short- and medium-term
plans, timetables, budgets, specialized policies, procedures, and business goals. encouraging
lower-level managers to perform better. Top-level management should inform lower-level
management on organizational policies. Managers at the tactical level Obtain quantitative
data on a routine basis from the operational level of management in addition to information
from the strategic level of management.
Deputy General Managers and Assistant General Managers are in charge of Sampath Bank's
tactical-level management.

In the Sampath Bank, operational level management must provide routine and regular
quantitative information, as well as information from the strategic level of management. As
an illustration, the branches' monthly progress reports include information regarding the
branch's current situation. These details help tactical level managers make management
judgement.Tactical level management is used in Management Information systems (MIS).
The basic goal of MIS is to offer printed or electronic reports with query capabilities to lower
and intermediate management. This information is support making a semi-structured decision.
Supplied in summarized form, but detailed enough to allow tactical planning. That is
Sampath Bank tactical level management uses monthly progress report reports.

H.P.D.Mandara prawarshana 32 Unit 07:


Strategic Information Systems
2.10 Operational Level Management
The daily supervision of line employees falls within the purview of operational managers.
Create short-term plans. necessitates input and guidance from the tactical level of
management. basically concerned with how duties are carried out on a daily basis. That is
Operational level management of the Sampath Bank are Regional Managers and Branch
Managers.

Information at the operational management level must be precise and in-depth at the Sampath
Bank. To make choices for the day-to-day operations of the bank, this information is required.
For instance, the branch manager needs knowledge of the current day's updated cash balance.
With the help of this information, the branch can manage a sufficient cash balance. It also
instructs in estimating future monetary needs.

Operational level management is used for the Transaction Processing System. (TPS)
Transaction Processing Systems (TPS) provide inputs to other information systems. This
information is support making a semi-structured decision. Operational level management of
the Sampath bank use reports of Attendance Reports, Inventory Reports.

2.11 Data Security


safeguarding digital data from harmful elements like databases and uninvited human
behaviour like cyber attacks or data leaks. The department of information technology also has
data security at sampath bank. The department also adopts various measures to protect the
data. Here , the following is the importance of data security.
 Here this data should be secured as assets of sampath bank.
 Data is important for the bank to make decisions for the future.
 The bank should protect the data as it has the information of its customers.
 This data should be protected for future investments.

The Security Triad(CIA)


Confidentiality, Integrity, and Availability are the three letters that make up "The CIA Triad."
A prominent model that serves as the foundation for the creation of security systems is the
CIA triad. They are used to identify weaknesses and develop strategies for resolving
problems.

H.P.D.Mandara prawarshana 33 Unit 07:


Strategic Information Systems
Learning Outcomes:03

3.1 Gathering Data


The process of gathering, measuring, and analyzing precise insights for research using
accepted, established methods is known as data collection. On the basis of the evidence
gathered, a researcher might assess their hypothesis. Regardless of the subject matter of the
research, gathering data is typically the first and most crucial phase. Thus, sampath bank can
also make decisions for the future by collecting data.

Figure 15 - 3.1Gathering Data(jooinn.com/2022)

3.2 Demonstrate the use of an information system for management


reporting purposes.
Reports that management utilizes to operate the company, make business decisions, and track
success is known as management reports. To track the effectiveness of their operations and
enterprises, organizations utilize a variety of management reports. These reports assist in
making business decisions.

Operational level management at Sampath Bank employs a variety of reports. General Ledger
Abstract Report, Trial Balance Report, Cash Scroll Report, Payroll Report, and Inventory
Report are a few of them. Transaction processing systems produce these kinds of reports.
These report formats aid, operational-level managers, in making organized choices. As an
illustration, the branch manager supports data from cash scroll reports in order to keep a
sufficient cash balance at the branch. Effective decision-making and forecasting of cash
requirements are supported by these sorts of reports' information.

H.P.D.Mandara prawarshana 34 Unit 07:


Strategic Information Systems
Here, In the Bank, MIS reports are mostly employed at the tactical level of management.
Scheduled (periodic) reports, Demand reports, and Exception reports are the three main types
of MIS reports.

What is the MIS report ?


Management Information System is what MIS stands for. An MIS report is essentially a
system that delivers crucial data to your company's management, to put it simply. Within an
organization, MIS works in conjunction with personnel, technology, and business procedures.
More details about the MIS report are given above. Thus the features of an MIS report are as
follows.
 Allow end-users to develop their own custom reports
 Reports should be delivered in a consistent format.
 Use internal and external data
 Produce hard copy and soft copy reports

Here , Management Information Systems produce reports of this nature. These reports kinds
provide information that helps tactical level managers make semi-structured choices. For
instance, data from monthly success reports serve as a roadmap for tactical level managers
when it comes to making wise choices and predicting the organization's financial future.
Managers at the strategic level frequently utilize information summary reports. easy-to-use
user interfaces and graphic displays. provide powerful drill down and reporting tools.
managers at the strategic level report to,
 support for establishing a broad vision
 Support for strategic control
 assistance with strategic staffing and organizing
 Support for strategic planning

Here , Executive Information Systems produces these kinds of reports. These reports kinds
provide information that helps managers at the strategic level make unstructured choices. For
instance, bank financial statement reports aid strategic level management in making smart
choices and projecting the bank's future financial health.

H.P.D.Mandara prawarshana 35 Unit 07:


Strategic Information Systems
3.3 Analise the constraints that an organization can face when gathering
data and information.
Data - Data are pieces of information that describe the quantitative or qualitative properties
of a particular variable or set of variables. Data can also refer to items in a computer that have
not been processed. Data can include things like a word, a value, a picture, etc.
Information - Information is structured or categorized data, which has some significant
values for the recipient. Information is the processed data that serves as the foundation for
choices and activities.

Here ,When gathering data and information organizations can face the constraints. Data and
information are very important things to the organization. Accurate data can be received as
well as inaccurate data. That is , Noisy data is information that cannot be properly
comprehended and analysed because it is contaminated, inaccurate, or distorted. Noisy data
values can happen because,
 Data entry problems
 Data transmission problems
 Technology limitations
 Flawed data gathering methods

Organizations mostly struggle with noisy data when collecting data and information. The
management decision-making process is immediately impacted when noisy data is included
in the data and information. The Sampath Bank has always needed reliable data because it is
a financial institution. For instance, precise data is required to make the right judgement for
the financial statement. Unwise decisions are made when noisy data is included in the
financial accounts. Making accurate data and choosing the right course of action is crucial.
To deal with noisy data, data cleansing might be utilized.

3.4 Data cleaning


Data cleaning is the process of eliminating or changing data that is inaccurate, lacking,
unnecessary, duplicated, or structured incorrectly in order to prepare it for analysis. The noisy
data are removed using data cleaning. Data cleansing helps provide accurate reports and aids
in informed decision-making.

H.P.D.Mandara prawarshana 36 Unit 07:


Strategic Information Systems
Figure 16 - data cleaning (erpinnews.com/2022)

The Benefits of Data Cleansing.


 Improved decision-making.
 Clean data can make it easier to make decisions for the future.
 Save time and work more efficiently.
 Minimize compliance risk.

3.5 Data transformation


The process of changing data or information from one format to another, often from that of a
source system into that needed by a new destination system, is known as data transformation.
Data transformation is used in the data collection process to change data from many sources,
which may include data in various forms, into a common format. It aids in the organization's
decision-making process being corrected.

3.6 Discuss the importance of an organization having data and information


that is current, valid and accurate.
Data and information are the most important things in the present competitive business world.
In the Sampath Bank, data and information are the most important thing. Sampath Bank has
customers' most important data and information.

H.P.D.Mandara prawarshana 37 Unit 07:


Strategic Information Systems
Data are abstract facts that are used as inputs by computers. Data is a discrete unit that
consists just of raw materials and has no inherent significance. Information is the output of
processed data. Information is the product and group of data that collectively carry as logical
meaning. Future data and information are explained above. That is ,The most crucial aspects
of data and information must be true, accurate, and up to date. These characteristics are
crucial for a company.

For day-to-day operations, Sampath Bank needs up-to-date data and information. Branch
managers, for instance, want up-to-date data and details on the branch's cash balance. The
branch's daily operations need management of acceptable cash levels based on the most
recent data and information. For accurate forecasting and decision-making, more recent data
and information are required. In this case, branch managers want up-to-date information
regarding the branch's cash balance. This data serves as a guide for ordering cash from the
bank's treasury. This case illustrated the significance of current data and knowledge in aiding
efficient forecasting and decision-making.

Another illustration would be the Sampath Bank Supplies division's demand for data on the
branches' passbook requirements. The supply department must have up-to-date knowledge of
each branch's passbook requirements. New passbooks must print this information. New
passbook printing is unsuccessful when outdated data and information are received from the
supply department. For the organization, it results in needless expenses.

As a result, up-to-date data and information are extremely useful to a business. In this case,
up-to-date data and information help accurate forecasting and decision-making. Making
decisions regarding how many passbooks to print and estimating future passbook demand are
assisted by current data and information.

Sampath Bank's banking activities require accurate data and information. For instance,
accurate statistics and information are required on the current total loss or profit in the Bank.
These reliable facts and details aid strategic level management in making decisions and
creating a bank's strategic plan. It aids in making wise decisions. Decision-making is
influenced by inaccurate facts and information. Additionally, it aids in protecting the Bank's
future financial stability.

H.P.D.Mandara prawarshana 38 Unit 07:


Strategic Information Systems
Sampath Bank, as another example, requires accurate statistics and information on how many
accounts are there in each category. These reliable facts and details serve as guidelines for
developing a promotion strategy for each product. It aids in making wise decisions.
Additionally, it helps predict which products will be released soon.

Accurate data and information are crucial for a finance organization. For its entire banking
operations, Sampath Bank needs reliable data and information. For instance, generating
financial reports requires precise data and information. To understand the Bank's current
financial soundness, precise facts and information are required. These precise facts and
statistics serve as guides for deciding on investments, creating a strategic company plan, and
making financial judgements. These accurate data and information support effective decision-
making and forecasting the future financial stability of the Bank.

3.7 Management Reporting

A crucial definition of business intelligence that includes reports designed to assist managers
in monitoring operations and performance is management reporting. Many new corporate
solutions that seek to automate or improve the management reporting process are built around
these kinds of reports. Accordingly, management reports are also very important for Sampath
bank. Management reports are required to make decisions for the future of the bank. In
addition, management report are required to monitor the progress of the bank. That is,
Numerous management reports are used by organizations to assess the effectiveness of their
ventures and operations. Accordingly, the objectives of the management report are as follows.
 Determine probable issues beforehand
 Ensure improved dialogue among all parties.
 Improves decision making
 enhances the timeliness and accuracy of information flow.

Here managers use different methods to keep management records. That is, management
records are maintained using management techniques.Graphical management records are also
used for this purpose.Using these graphical management records makes it very easy for
managers to make decisions. The following are graphical management records.

H.P.D.Mandara prawarshana 39 Unit 07:


Strategic Information Systems
Figure 17 - example chart (sampath.lk/2017)

Managers use evolving methods to prepare these reports .This records are prepared using a
variety of different color charts .These record processing makes it easier for managers to
make decisions for the future. The following is a management report prepared using
different colors.

Figure 18 - example chart (sampath.lk/2017)

H.P.D.Mandara prawarshana 40 Unit 07:


Strategic Information Systems
Learning Outcomes:04

4.1 Identify different models that can be applied to strategic information


systems.
A company's ability to successfully use its resources, manage to increase consumer value,
and position itself ahead of its rivals is what is known as a competitive edge. That is,
Competitive advantage analysis is very important to successfully face the marketing
competitive. It is direct to the success of the business. There are two tools having measured a
competitive advantage.
1. Porter’s Five Forces Analysis
2. Wiseman’s Strategic planning process

4.2 Porter’s Five Forces Analysis


A framework for examining a company's competitive environment is Porter's Five Forces. A
company's profitability is impacted by the quantity and strength of its rivals in the
marketplace, possible new market entrants, suppliers, consumers, and competing goods. That
is, it can be seen as five models. That is, threat of new entrants , threat of
substitutes ,bargaining power of buyers , bargaining power of suppliers and rivalry among
existing competitors. The picture below illustrates this further.

Figure 19- 1Porter’s Five Forces Analysis(quora.com/2022)

H.P.D.Mandara prawarshana 41 Unit 07:


Strategic Information Systems
1. Threat of New Entrants
The risk that a new competitor poses to existing businesses in a given sector is known as the
threat of new entrants. When a new business starts offering a comparable good or service to
an established business, this happens. Here, this force decides if it will be simple or difficult
to join a new corporate organization. Markets with a healthy profit margin draw new
competitors.

New market entry obstacles:


 Economies of Scale
Economies of scale (ES) refer to a scenario when output surges and the cost per unit drops
and is described as a reduction in the average production costs when a corporation increases
its size of production.
 Switching Costs
When a consumer switches brands, goods, services, or suppliers, the term "switching costs" is
frequently used to describe the monetary expenses they suffer. But it's vital to remember that
these expenditures also cover non-monetary expenses.
 Natural / Geographical Barriers
A physical feature that protects or obstructs passage through or across is referred to as a
natural barrier. The most obvious examples of natural barriers include mountains, bogs,
deserts, and ice fields.
 Capital Requirements
A bank or other financial institution's needed capital, commonly referred to as regulatory
capital or capital adequacy, is determined by the financial regulator. Typically, this is shown
as an equity capital adequacy ratio as a percentage of risk-weighted assets.
 Legal Patents
A patent grants a person or organization the legal right to an invention without the
interference of third parties who might want to copy, use, or sell it. Governmental agencies
can award patents, which typically have a 20-year lifespan.

That is , The biggest savings institution in Sri Lanka is Sampath Bank. In Sri Lanka, there is a
seizable market for savings deposits. These new businesses find it difficult to get into the
market.

H.P.D.Mandara prawarshana 42 Unit 07:


Strategic Information Systems
2. Pressure From Substitute Products
occurs when businesses within a single sector are compelled to compete with sectors offering
alternatives to their goods or services. Instead of choosing the company's goods, customers
might choose an alternative. There are more financial enterprises on the financial market. In
the financial sector, these clients have additional options for alternative financial solutions.
To successfully compete in the market, financial organizations require more alluring products.

3. Bargaining Power of Buyers


The pressure that customers or consumers may apply to firms to persuade them to deliver
higher quality products, better customer service, or cheaper pricing is referred to as the
bargaining power of buyers, one of the factors in Porter's Five Forces Industry Analysis
framework. That is, Buyers compete with the industry by forcing down prices, and bargaining
for higher quality or more services. Here ,If the following conditions are met, a buyer group
is effective.
 The limited number of buyers
 Backward integration is a risk posed by the purchasing group.
 Large quantities of the company's products are purchased by the customer.
 Low switching costs

Buyers' negotiating power is applicable to businesses in the producing sector. The majority of
service sector businesses were unaffected.

4. Bargaining Power of Suppliers


That is the pressure that suppliers may exert on businesses by raising their prices, diminishing
their quality, or restricting the availability of their products is referred to as the negotiating
power of suppliers. The competitive climate and the purchasers' potential for profit may be
impacted by this industry's bargaining power. Here, Suppliers can exert bargaining power
over participants in an industry by threatening to raise prices or reduce the quality of
purchased goods and services. That is ,if the following are true, a supplier group is effective.
 The business is not a significant client of the supplier group.
 Switching cost of supplier
 Forward integration is threatened by the supplier group.
 It is dominated by a few companies

H.P.D.Mandara prawarshana 43 Unit 07:


Strategic Information Systems
5. Competitive Rivalry
Competitive rivalry is a gauge of how fiercely existing companies compete with one another.
Competitive activities like price lowering, higher advertising costs, or investing on
service/product innovation and upgrades can reduce profits and foster competition.
An indicator of how fiercely existing businesses compete is the level of competitive rivalry.
To take each other's profits and market shares, rivals are vying for dominance. That is, the
finance market has more finance companies. competitive rivalry is a usual characteristic
among finance companies. Sampath Bank also faces a competitive rivalry.

4.3 Wiseman’s Strategic planning process.


By adding the five categories of differentiation, cost, innovation, growth, and alliance,
Wiseman expands Porter's three general categories of low-cost producer, differentiation, and
focus. That is ,Wiseman proposed using a strategic option generator to identify the need for
an information system to achieve a competitive advantage.

Figure 20- Wiseman’s Strategic planning process (Slidetodoc.2022)

H.P.D.Mandara prawarshana 44 Unit 07:


Strategic Information Systems
1. Strategic Target
There are three main parties including Customers, suppliers, competitors or any combination
of the three.
 Customer Target
That is ,your target market is considerably more segmented since you have found certain
characteristics of the person who is most likely to buy your items as your target client.
Here ,Customer target is utilized in the Sampath Bank strategic objective to get a competitive
edge.
 Supplier Target
An entity that offers goods or services to another entity is known as a supplier.
 Competitor Target

2. Strategic thrust.
 Combine with other groups to create a more competitive position
 Concentrate on developing new goods or new strategies for producing, selling,
producing, or delivering goods.
 The goal is to save expenses or raise the competition's costs.
 Thrusts for differentiation. Concentrate your efforts on the unmet needs for products
or services.
 Cost Thrusts
 Innovation Thrusts
 Focus on the increasing size of the market size or adding more value.

3. Strategic mode.
The actual methods that managers use to develop and carry out their plans are known as
modes of strategic management. They deal with the questions of who has the most sway over
the strategic management process and how it is run. Here ,A firm has two choices for the
mode of a strategic thrust.they are,

1) The firm can act offensively to improve its competitive advantage


2) A firm can act defensively to reduce the opportunities available to competitors.

H.P.D.Mandara prawarshana 45 Unit 07:


Strategic Information Systems
4. Strategic direction.
The strategies that must be carried out in order for an organization to move closer to its vision
and achieve its objectives are referred to as its strategic direction. It guarantees that managers
and owners can convey the value of workers' efforts and their role in accomplishing
organizational goals.
1) There are two options for a strategic thrust's direction:
1. Internally, the business can use the information system to gain a competitive edge.
2. A company can provide the system to their chosen strategic goal.

2) Companies can create systems for internal use and then make them available to clients or
suppliers.

conclusion

The customer objective is chosen as the bank system's strategic aim since it is primarily
centered on consumers when Wiseman's strategic planning process is replicated in Sampath
Bank. The account holders, for instance, might be displayed. then the cost thrust might be
chosen once the strategic thrust has been pursued. By examining the bank's dealing history,
Sampath Bank can generate significant interest from trustworthy clients in the cost-cutting
effort. To learn about the interest rates of other competitive banks, a comparison with
Sampath Bank should be made. Then it becomes profitable while other banks continue to pay
standard interest rates. The customer objective is chosen as the bank system's strategic aim
since it is primarily centered on consumers when Wiseman's strategic planning process is
replicated in Sampath Bank. The account holders, for instance, might be displayed. then the
cost thrust might be chosen once the strategic thrust has been pursued. By examining the
bank's dealing history, Sampath Bank can generate significant interest from trustworthy
clients in the cost-cutting effort. To learn about the interest rates of other competitive banks, a
comparison with Sampath Bank should be made. Then it becomes profitable while other
banks continue to pay standard interest rates.

H.P.D.Mandara prawarshana 46 Unit 07:


Strategic Information Systems
References

1) Sampath bank. 2022. Sampath bank. [online] Available at:


<https://www.sampath.lk/en/about/history> [Accessed 20 June 2022].

2) market manager. [online] Available at: <https://www.researchgate.net/figure/Generic-


Organizational-Chart-for-Banks_fig1_237512628> [Accessed 22 June 2022].

3) Investopedia. 2022. What Is an Organizational Chart?. [online] Available at:


<https://www.investopedia.com/terms/o/organizational-chart.asp> [Accessed 21 June 2022].

4) Smartdraw.com. 2022. Organizational Chart - What is an Organization Chart? Definition, Types, Tips,
Tutorial, and Examples. [online] Available at: <https://www.smartdraw.com/organizational-
chart/> [Accessed 22 June 2022].

5) Slideshare.net. 2022. Advantages and Disadvantages of MIS. [online] Available at:


<https://www.slideshare.net/neetinaag/advantages-and-disadvantages-of-mis> [Accessed
23 June 2022].

6) CREDIBLE REVIEWS |. 2022. Advantages and Disadvantages of Office Automation in Business |


CREDIBLE REVIEWS. [online] Available at: <https://www.credible-
reviews.com/2013/08/advantages-disadvantages-office-automation/> [Accessed 23 June
2022].

H.P.D.Mandara prawarshana 47 Unit 07:


Strategic Information Systems

You might also like