Managing Information Critical Evaluation of Relevant Issues

MBA TOP UP INTAKE 8

MANAGING INFORMATION CRITICAL EVALUATION OF RELEVANT ISSUES

MODULE: MANAGING INFORMATION

Managing Information Critical Evaluation of Relevant Issues

Table of Contents Sr. no. 1. 2. 3. 4. 5. 6. Contents Page no.

Introduction............................................................................................3 Definition of Information Systems...........................................................3 Information System as an Organizational and Management Solution.........3 Information Manager and Information System..........................................4 Environmental and Industrial Analysis.....................................................4 Recommended Information Systems for a Medium Sized Accountancy and Management Consultancy Firm........................................................5

6.1. 6.2. 6.3. 6.4. 7.

Management Information System.............................................................5 Decision Support System..........................................................................6 Knowledge Management System..............................................................6 Transaction Support System.....................................................................6 Evaluation of Organizational, Technical and Management Aspects of the Information Systems Used........................................................................6

8. 9. 10.

Successful Implementation of Information Systems...................................7 Security Threats Faced By The Consultancy Firm......................................8 Recommendations to Control Security Threats Faced By The Consultancy Firm.....................................................................................8

11. 12. 13.

Recommended Solutions for Ethical Concerns Faced By The Firm.............9 Conclusion..............................................................................................10 References...............................................................................................10

Managing Information Critical Evaluation of Relevant Issues

1. Introduction This report examines the role of Information Manager who has been appointed to manage a newly established medium-sized consultancy firm offering accountancy and management solutions in UK. The report assesses what information system is as an effective organizational and management solution. The report shows how the Information Manager assists the newly established firm by carrying out industrial and environmental analysis to assess the suitable conditions in which the firm is going to operate and also recommendations made by the Information Manager with regards to the type of information system that can be successfully implemented to the business. The report also analyses the organizational, technical, management, security and ethical concerns that the medium sized consultancy firm may face during the implementation of the suggested information system. 2. Definition of Information Systems Kenneth C. Laudon and Jane Price Laudon define Information Systems in their book Management Information Systems as; An information system is a set of procedures that collects (or retrieves), processes, stores and disseminates information to support decision making control. Larry Long and Nancy Long (2005, p.370) defined information system as; A system is any group of components (functions, people, activities, events and so on) that interface with and complement one another to achieve one or more predefined goals. The above definitions help in describing information systems as computer based systems that are used within a certain firm or organization and these systems help the organization in collecting, analyzing, manipulating and disseminating information or data. Different information systems use different mediums in order to retrieve data. Some systems are internet based while others might require certain computer systems as well as other communication systems. Information system is typically computerized or computer based system that comprises of a structured database which enables in the collection of optimized data. This type of system enables the use of data throughout the different levels of organization in a very structured way. 3. Information System as An Organizational and Management Solution Whether a firm is small-sized, medium sized or large sized every organization has unlimited amount of information. This information content available to a particular business help it identify and carry out the desired procedures and functions. Information system is indeed an organizational and management solution as it helps an organization in its decision making process. Management information systems help to collaborate, amend, store and format both internal and external data so that it can be used later to assist in performing different organizational functions. Information system is considered as a very useful tool by many businesses nowadays because without the help of appropriate information content a particular firm cannot operate properly.

Managing Information Critical Evaluation of Relevant Issues

4. Information Manager and Information System As an information manager of a newly established medium-sized consultancy firm that is offering accountancy and management solutions, it is very important for the manager to understand the basic structure of the firm before implementing any procedures or processes. It is the responsibility of the manager to figure out the relationship between the firm and its business strategy and then formulate an authentic information system accordingly. As the firm is newly established so it is vital to identify and examine the surrounding atmosphere of the market place and build a strategy which is suitable for the information system to operate to its fullest. A good information system would be one that would allow the consultancy form to have competitive advantage over others. It is the responsibility of the manager to have knowledge regarding strategic uses of the information system that is to be implemented. In order to run a consultancy firm that provides accountancy and management solutions, then the information manager should work on an information system that provides structured use of information with regards to financial advising, risk management, management consultancy, wealth management, financial and credit services. 5. Environmental and Industrial Analysis The overall vision of an accounting and management consultancy firm is achieve the desired goals or targets while getting the most out of the available resources. For a medium-sized consultancy firm it is more likely that there would be a lot of competitors out there so survival becomes very challenging. Considering this particular industry, there are many good accounting and management consultancy firms operating in UK like; PAAT and Elano and to compete with such professional firms becomes a very challenging task for a newly formed consultancy firm. The information manager should focus on the social trends and economic forces that may affect the information system. Determine the strategies that can be used by the organization and also puts the firm in a distinctive position as compared to other firms. As this particular industry is very competitive therefore there are certain competitive rules that must be followed by this medium sized consultancy firm at the same time. There are certain factors that may help in determining and analyzing the industry and environment in which a particular firm is going to operate. These factors should be assessed deeply to figure out the correct environment for the firm to operate. First of all, as the firm is medium-sized therefore its competitors would also be medium sized. As the firm is a newly established consultancy firm therefore it poses a threat to the currently operating firms as well as other newly established firms. At the same time the accounting and management consultancy firm is on the verge of getting threatened by the existing firms as well. Another thing to evaluate is the amount of rivalry among the competitors if the level of rivalry is high that means this particular firm needs to be always on the top in order to compete against each other.

Managing Information Critical Evaluation of Relevant Issues

The information manager should also assess the scope and nature of the industry in which the firm is going to operate. That means one has to analyze whether the industry is challenging, overcrowded, demanding, competitive or just laid back. The findings suggest that for an accounting and management consultancy firm the atmosphere is very competitive and challenging. One must use strong tactics in order to gain and survive within the specific industry. The information manager should be familiar with the structure of the organization and should also have knowledge regarding the firms competitors, the types of products and services offered by the competitors, nature of the competitive firms and the overall background of the industry. Being an information manager for an accountancy and management consultant firm one would find out that the structure of the whole industry is build in a way that it is easy to get yourself in within the specific industry but surviving in there is a bit of challenge as one has to cope up with different issues on a daily basis. Moreover the information manager has to take into account the overall investment budget of the organization before implementing any new method of information service. With a medium-sized firm the budget allocated to information system sector is a bit limited so it is better to think and analyze before making any final decisions. 6. Recommended Information Systems for a Medium-sized Accountancy and Management Consultancy Firm After doing an extensive industry analysis and gaining understanding of the industry the information manager is then able to recommend a specific information system that would benefit the organization in the long run. The requirement or need for an information system within an organization depends upon its size and the type of business it belongs to. A medium sized accountancy and management consultancy firm possesses enough information content that requires the establishment of a medium sized enterprise information strategy system. Depending on the information requirements the information manager has to make the decision of implementing the relevant information system. As far as the consultancy firm is concerned due to its size and other business requirements it is recommended that a combination of different information systems can be used. The reason for that is because a specific information system helps in providing data regarding to a specific purpose therefore in order to gather useful data while using different sources a consultancy firm would require the following information systems to be implemented. 6.1. Management Information System This type of information system would help the accountancy and management consultancy firm to gather summarized data with regards to all the business transactions made within a particular time period. This information system helps the information manager to monitor all the business activities with the help of summarized management reports.

Managing Information Critical Evaluation of Relevant Issues

6.2. Decision Support System Along with the information management system this particular information system can also be implemented as it would help the information manager to work alongside with other top and middle management officials in order to make decisions at crucial times. This information system would help the consultancy firm in analyzing the possible options and alternatives available to the business. 6.3. Knowledge Management System Knowledge management system would help the accountancy and management firm to create and share information through intranet portals or web portals. The information manager needs to make sure that all the information shared through this management system is accurate and realistic. 6.4. Transaction Processing Systems This type of information system would help a medium sized consultancy firm to process daily routine procedures and activities in an automated manner. There are lots of different activities and procedures that need to be followed on a daily basis therefore, in order to process all such activities in an efficient manner the information manager can benefit from transaction processing system as it would help in automating the billing, payroll and other related activities. During the process of implementing and developing the combination of the above mentioned information systems it is recommended that a few other criterias should be kept in mind. The information manager has to prioritize certain requirements. These requirements are; y y y y Consideration and development of functions that are associated with different information systems. Consideration of possible future extensions and outcomes associated with the implementation of all or specific information systems. Proper knowledge regarding the type of documentation required in order to operate the systems in an efficient manner. Feasibility of the recommended information systems.

7. Evaluation of Organizational, Technical and Management Aspects of The Information Systems Used For an information manager it is quite a big task to make sure all the above mentioned information systems are accurately used but with the help of junior staff and support of senior management it is quite possible to use a combination of all these information systems in an efficient manner. It is important for the information manager to use all these systems in an organized way in order to avoid any technical or management difficulties.

Managing Information Critical Evaluation of Relevant Issues

Being an information manager it is important to evaluate whether the implementation of information systems would be done in an accurate and precise manner or not. The above mentioned combination of information systems is ideal for a medium sized firm as all the technical, organizational and management aspects are fully comprehended therefore there will be no difficulty with regards to implementing these systems within the organization. A good combination of information system adds to the understanding of all technical, organizational and management concerns that are faced by this particular firm. The accuracy of information systems is vital that means the data and figures collected through them should be appropriate and relevant to the organization. The systems should be free of any technical glitches or errors as that might affect the accuracy. Correct data should fall in correct category in an automated way otherwise there would be a lot of manual work which would require more staff and more time respectively. Moreover it is essential to make sure that the information gathered through different information systems is clear and precise. 8. Successful Implementation of Information Systems Once the information manager analyzes and examines each and every aspect of the recommended information systems then the need arises to consider the successful implementation of these systems within the organization. The manager must have enough information that provides details with regards to scope of the information systems that are being implemented within the management and accountancy consultancy firm. In order to successfully implement the recommended information systems the following recommendations are being made; y In order to make sure that the information systems are successfully implemented within the business the management must ensure that the staff which is involved in using those information systems is fully trained. The staff should be aware of all the technical, management and organizational issues involved with regards to the use of the recommended systems. Apart from training the staff should be able enough to handle any difficulties that may arise during the process. At the same time the staff should identify any problems that may be caused. Proper knowledge regarding risks and benefits involved while implementing the desired information systems is essential. If one is not able to assess the risks involved then it can be the case where the recommended information system might not work and the whole process would just end up in disaster. Time keeping and accuracy should be maintained throughout the implementation process so that there is no lag between the functioning of different information systems which are combined together at one place.

As the firm is using a combination of different information systems therefore the information manager should make sure that all the systems are integrated with each other. Proper integration would secure the whole unit and will help in accurate and persistent collection of data and figures throughout the course of time.

Managing Information Critical Evaluation of Relevant Issues

9. Security Threats Faced By The Consultancy Firm Although information systems act like tools for a specific business but still there are many security threats that the firms may face due to the use of different information systems. The medium sized accountancy and management consultancy firm is also challenged by many information system security threats. As the information systems require the usage of different computer tools and applications therefore these systems are always on a high risk of getting adversely affected. The information manager should have ample amount of knowledge regarding the risks and threats that may affect the consultancy business. A security threat can be anything that would adversely affect the information systems of the accountancy and management consultancy firm. These threats may lead the business to loss its important data, profits, etc. Another threat that is caused by the information systems is that sometimes these systems turnout to generate large amount of unwanted data. Such data is of no use at all. 10. Recommendations to Control Security Threats Faced By The Consultancy Firm It is essential to implement some specific control so that the information systems can be controlled in an effective way. Information manager is responsible for putting security controls in order to make sure that the systems are secured and are not exposed to unwanted threats and risks. There are certain controls that can be implemented to a medium sized firm in order to maintain smooth running of information systems. There are different types of controls that can be implemented to the business. They are; preventive controls, detective controls and corrective controls. It depends on the current situation of the firm that decides which type of control method should be used. For a medium sized consultancy firm it is always better to go for preventive control as these controls would help the business to take preventive measures before hand. Preventive controls consist of; input methods, processing controls, output controls, storage controls, files controls, hardware security control and standardization controls. Detective controls are the once that help the information manager to detect the threats that the consultancy firm might be facing. Detective control consist of; testing, training, operation controls, etc. Lastly comes the corrective controls these controls help the organization to correct the risks and threats that are already faced by a specific organization. In case of a consultancy firm if any problem in the system is detected the information manager is then responsible for taking steps in order to correct the problems. It can be recommended that software and technology tools used to run information systems must be upgraded in a timely manner to maintain high quality standard services. Moreover the employees must be trained effectively regarding using the upgraded versions of technology and software tools. One other security threat faced by the consultancy firm with regards to information systems is that as a combination of different information systems are used therefore it is most likely that very high volumes of data could be generated on a daily basis and such high volume of data

Managing Information Critical Evaluation of Relevant Issues

can be difficult to manager if there is no proper application or software that channels the data. Therefore it is recommended that there should be an application or software that handles this data in an accurate manner and channels it to different information systems as required. 11. Recommended Solutions for Ethical Concerns Faced by the Firm Being an information manager it is essential to make senior as well as junior management aware of the ethical concerns that are faced by the firm due to the implementation of certain information systems. The information manager can help the management and the organization to establish certain ethical values with regards to the implication of information systems. During the implementation of information systems the firm may face a few ethical concerns. According to Ethical and Social Issues, a study that was conducted in 2010 the relationship between information systems and ethics would explain ethics as a set of principles consisting of right and wrongs which are used by the individuals freely in order to demonstrate their behavior towards a certain situation. As the newly established firm provides accountancy and management solutions therefore it is at high risk of getting affected by the internet fraud and abuse. It is recommended that the information systems used should help in the prevention of internet and computer fraud. When certain information systems are implemented to the medium sized accountancy and management consultancy firm it is most likely that the firm would be affected by many ethical concerns. The implementation of information systems may create opportunities for extensive social change which affects the firm as well as its customers and employees. Social changes that are brought due to the implementation of information systems may affect the existing distribution of different technical, social, management, financial and administration tools within the organization. It may also affect the relationship between the new firm and its potential clients. The newly formed consultancy firm due to its nature has to interact with different customers and clients on a daily basis and the privacy of these clients must never be affected. While implementing certain information systems it is recommended to safeguard the privacy of potential customers and clients who would be using the services offered by the consultancy firm. Information systems can be used to bring about social progress only if used in a proper way otherwise the same systems can be used to exploit privacy of different clients and customers. In order to recommend solutions with regards to the ethical concerns faced by the firm the information manager is responsible for analyzing the type of relationship between ethical practices and the issues raised by the information systems. Also it is recommended that a thorough study or research should be done on the moral values and principles that are involved in making ethical decisions. Information systems can have a very strong impact on individual privacy and intellectual property therefore it is recommended that intellectual property rights and privacy of the customers should be protected even after the implication of certain information systems.

Managing Information Critical Evaluation of Relevant Issues

It is recommended that before implementing a specific information system the information manager should analyze the costs and benefits that the customers, employees and the firm would face. It is very important for the firm to protect the privacy and social values of its potential customers. 12. Conclusion It is concluded that of the recommended combination of information systems are implementation properly within the newly established medium sized accountancy and management consultancy firm then it is most likely that the firm would be able to compete very strongly against well established competitors. With the help of proper staff training and good communication the proposed information systems would help in converting data from both internal and external sources in an efficient manner. The information gathered through these systems would be used at different management levels hence, supporting every aspect of the business structure. Moreover the combination of suggested information systems would also help the organization in decision making process. Hence, the recommended combination of information systems would benefit the consultancy firm in its decision making processes regarding; planning, controlling, recording transactions (keeping in account all documentations, operational information and legal requirements), performance measurement and profitability analysis. So, the information manager can assist the firm in the decision making process while providing good quality information with the help of good use of information systems. It all depends on the proper and accurate implication of the information systems because if there is any flaw in the integrated systems or if the system faces any technical or other management issues then it is most likely that the firm would be faced by critical issues with regards to the use of information systems.

Managing Information Critical Evaluation of Relevant Issues

13. References 1. Abrams, M. & Weiss, J., Control System Cyber Security, Case Study, Washington. 2. Adamski, A., 2007 Information Management: Legal and Security Issues, pp.1-15. 3. Anon., 2008, Banking on Customer Service. New Jersey; Hudson Bank. 4. Currie, w., 1999. Rethinking Management Information Systems. Oxford; Oxford University Press. 5. Ethical and Social Issues in Information Systems, 2010, pp 124-165.

http://www.prenhall.com/behindthebook/0132304619/pdf/laudon%20MIS10_CH04%20FINAL.pdf 6. Mason, R., 1986. Four Ethical Issues of The Information Age. Management Information Systems Quarterly, 10(1), pp.5-12. 7. Pollack, T., 2006. Ethical and Legal Issues for the Information Systems Professional. Proceedings of the 2006 ASCUE Conference, pp. 172-180. 8. UK Academy for Information Systems, 1999. The Definition of Information Systems, pp.1-6. 9. London 2012,2010. London 2012 Sustainability Policy. Available at:

http://www.london2012.com/documents/locog-publications/london-2012sustainability-policy.pdf. 10. Basset, P.H., 1993. Computerized Accounts, 3rd edition, Manchester: NCC Blackwell. 11. Boczko, T., 2007. Corporate Accounting Information Systems. Financial Times Press 12. Kennith C, Laudon and Jane P, Laudon., 2010. Management Information Systems. Managing The Digital Firm, Upper Saddle River NJ: Pearson Education. 13. Larry Long and Nancy Long, 2005. Mastering Information Management by Donald A. Marchand. Prentice Hall.