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OBJECTIVES On completion of this paper candidates should be able to: • identify the information requirements of different levels of management and understand how information is used to s

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This paper aims to ensure that students

can exercise judgement and technique in

identifying, implementing and managing

information systems as part of the strategic

management of the organisation

OBJECTIVES

On completion of this paper candidates

should be able to:

• identify the information requirements of

different levels of management and

understand how information is used to

support the objectives of the organisation

• apply a coherent approach to business

analysis including the identification of the

current business situation and the gap

between that and the required business

objectives

• identify and implement desirable and

feasible changes resulting from business

analysis

• prepare a detailed business case to

support system changes and use the

appropriate tools to support business

analysis

• identify opportunities to use information

systems to improve the competitive

position of an organisation

• identify the impact of the development

of information systems on the

organisation and its environment

POSITION OF THE PAPER IN THE OVERALL SYLLABUS

This paper assumes the knowledge and understanding of the underpinning principles

of Paper 2.1 Information Systems

SYLLABUS CONTENT

1 Organisational information

(a) From a business perspective an information system is an organisational and management solution, based on information technology, to any challenge posed

by the environment

(b) Levels of management and types of information/system required

(c) The tasks of the manager The requirements for effective information management

(d) Types of information system (i) strategic information systems (ii) management information systems (iii) transaction processing systems

(iv) automation and support systems (v) batch processing

2 Knowledge management and information systems

(a) Data workers and knowledge workers (i) distribute knowledge: office automation systems (ii) share knowledge: group collaboration systems (iii) create knowledge: knowledge work systems

(iv) capture and codify knowledge: artificial intelligence systems (b) Data management

(i) principles of database management systems (ii) principles of datamining and data warehousing

3 IS and the strategic planning process

(a) The organisation and information management

(i) the business context 3.4 Business Information Management

2.1 Information Systems

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(ii) new organisational structures and

information

(iii) information and organisational

strategy

(b) PEST analysis

(c) Strategic information systems

(i) alignment

(ii) using IS to create focus, support

linkages and develop information

leadership

(d) Porter's value chain

4 Business systems, systems thinking

and systems analysis

(a) Hard systems approach

(i) structured systems life-cycle

(ii) deliverables from each stage

(b) Soft systems approach

(i) Checklands soft systems

methodology

(c) Business process engineering

(i) business processes are analysed,

simplified and redesigned A

radical business strategy

5 Gap analysis and business case

development

(a) General framework:

(i) where we are W2R

(ii) where we want to be W32B

(iii) going to get there (GT)2

(b) Business case development

(i) reasons, estimating costs and

timescales

(ii) estimating benefits

(iii) benefit realisation dependencies

(v) justification

(c) Applications portfolio / IT investment decisions:

(i) portfolio analysis; risks and benefits An analysis of the portfolio of potential applications within a firm to determine the risks and benefits and select among alternatives for IS Scoring model (ii) determining the best fit with the current system

6 IS and competitive position

(a) SWOT analysis (i) identify drivers for change (ii) agree fundamental guiding principles governing design of change

(b) IS/IT management partnership – internal/outsourcing (in all its forms), facilities management

(c) Links between business strategy and information systems strategy

7 Electronic commerce, internet as a strategic business tool

(a) Globalisation (i) the virtual company (ii) the internet, intranet and extranet (iii) security issues

(b) The internet (i) the changing world of the internet (ii) good practise requirements, infrastructure required, change of business functions/strategy (iii) the internet as a system,

8 Implementing change

(a) Implementing new systems (i) strategies for implementation (ii) managing risk at implementation (b) Structuring the information systems function

(i) managing the IT function (ii) management of change (c) Project management

(d) Commitment, coordination and communication in change management

9 Impact of IT on work practices

(a) Using IT to manage individuals' information requirements (i) design of Critical success factors (ii) identification of sources of data capture

(iii) measurement of performance (b) Impact of IS/IT on employee/ employer relations

(i) shorter chain of command, flatter structures

(ii) wider span of control (iii) de-skilling of operatives (iv)socio-technical design

(c) Ethical issues in Information Management

EXCLUDED TOPICS

The following topics are specifically excluded from the syllabus:

• program design, flowcharting, object oriented design

• specific hardware platforms

Business Information Management (Continued)

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KEY AREAS OF THE SYLLABUS

The key topic areas are as follows:

• information resource management

• business analysis

• information systems and competitive

position

• information systems and the

organisation

APPROACH TO EXAMINING THE

SYLLABUS

The examination is a three hour written

paper in two sections

Section A is based on a case study This

section will have three compulsory

questions from across the syllabus, which

relate to the scenario Each question will

be worth between 10 to 25 marks giving a

total of 60 for this section

Section B contains three independent

questions, drawn from across the syllabus

Each question is worth 20 marks The

candidate must answer two questions

giving a total of 40 marks for this section

Number

of marks Section A: 3 compulsory scenario

based questions (no single 60

question will exceed 25 marks)

Section B: Choice of 2 from 3

questions (20 marks each) 40

100

ADDITIONAL INFORMATION

The examination will assume the use of specific and general modelling and analysis tools and techniques: PEST analysis, SWOT analysis, Porters value chain, Checklands soft systems methodology;

conceptual models, rich pictures and CATWOE Other models which are assessable are identified in the study guide

Some answers may draw on candidates' own experience or an interpretation of a topic, within the context of their own organisation or an organisation that they are familiar with

The Study Guide provides more detailed guidance on the syllabus

RELEVANT TEXTS

There are a number of sources from which you can obtain a series of materials written for the ACCA examinations These are listed below:

Foulks Lynch – ACCA's official publisher

Contact number: +44 (0)20 8831 9990

Website: www.foulkslynch.com

Accountancy Tuition Centre (ATC) International

Contact number: +44 (0)141 880 6469

Website: www.ptc-global.com

BPP

Contact number: +44 (0)20 8740 2211 Website: www.bpp.com

The Financial Training Company

Contact number: +44 (0)174 785 4302 Website: www.financial-training.com

Candidates may also find the following texts useful:

Kenneth Laudon and Jane Laudon

Management Information Systems

(6th Edition) Prentice Hall ISBN 0130156825

James O’Brien Introduction to Information Systems (9th Edition)

McGraw-Hill ISBN 0071169733

Kenneth Laudon and Jane Laudon

Essentials of Management Information Systems

(3rd Edition) Prentice Hall ISBN 0130115061

Wider reading is also desirable, especially regular study of relevant articles in ACCA's

student accountant.

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Business Information Management (Continued)

STUDY SESSIONS

ORGANISATIONAL INFORMATION

REQUIREMENTS

1 Levels of management

(a) Distinguish between strategic, tactical

and operational management and their

corresponding information

requirements

(b) Describe the importance of making

information accessible

(c) Discuss ways of ensuring the reliability

and accuracy of information, creating

secure information systems and

making information available at an

appropriate cost

2 Categories of information systems

(a) Discuss the seven major types of

Information Systems: Executive

Support Systems (ESS), Management

Information Systems (MIS), Decision

Support Systems (DSS), Expert

Systems, Knowledge

Work Systems (KWS), Office

Automation Systems (OAS) and

Transaction Processing Systems (TPS)

(b) Describe examples of each of the

above in terms of an organisations

strategic business position

3 & 4 Strategic role of information

systems

(a) Explain the strategic role of

information systems

(b) Identify the major management

information systems in organisations

(c) Describe the central and crucial role that information systems have within

an organisation

(d) Evaluate information systems and the strategic planning process

(e) Identify opportunities for use in forecasting, analysing competition, scenario planning, generic strategies/

business positioning, improving performance, measuring performance, opportunities for cost reduction, opportunities for service improvement, sales performance, evaluating proposals

(f) Explain Earl's IS, IT and IM Strategies

5 Ethical issues

(a) Analyse the relationship among ethical, social and political issues raised by the impact of information systems

(b) Identify the major moral dimensions

of an information society

(c) Apply an ethical analysis to scenarios

(d) Discuss the design of organisational policies for ethical conduct

KNOWLEDGE MANAGEMENT AND INFORMATION SYSTEMS

6 & 7 Knowledge management

(a) Describe the differences between data workers and knowledge workers and the appropriate types of

(i) Distribute knowledge: Office automation systems (ii) Share knowledge: Group collaboration systems (iii) Create knowledge: Knowledge work systems

(iv) Capture and codify knowledge: Artificial intelligence systems

7 & 8 Data Management

(a) Explain the principles of Database Management Systems (DBMS) (b) Describe the major characteristics of Integrity, Independence and Integration

(c) Discuss the difference between logical and physical data requirements Describe Logical models; hierarchical and relational

(d) Explain the principles of Datamining and Data Warehousing

(e) Discuss Datamining as the ability to analyse large pools of data to find patterns and rules that can be used

by an organisation to guide decision making and predict future behaviour (f) Discuss Data warehousing as a database with reporting and query tools, that stores current and historical data extracted from various operational systems and

consolidated for management reporting and analysis

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IS AND THE STRATEGIC PLANNING

PROCESS

9 Organisational requirements

(a) Discuss the establishment of

organisational information

requirements

(b) Evaluate linking information systems

to the business plan

(c) Discuss the requirement to

understand the business value of

information systems

10 Strategic Analysis

(a) Evaluate the importance of Political,

Economic, Social and Technological

influences on organisations PEST

analysis as a tool for Information

systems strategic planning

(b) Apply PEST analysis to scenarios

(c) Explain and apply Parson's six IS

strategies

(d) Apply Porter's Five Forces Model to

scenarios

11 Strategic information systems

(a) Discuss the role of Strategic Information

Systems, as computer systems within

an organisation that enables changes

to goals, processes, products, services

or environmental relationships

(b) Discuss the alignment with business

strategy and apply Earl's 'Three Leg

Analysis'

(c) Identify ways of using IS to create

Focus, support Linkages and develop

Information Leadership

(d) Describe the design of Rockart's Critical Success Factors

(e) Identify sources of data

(f) Identify key performance indicators and how to measure performance

12 Strategic impact of information systems

(a) Evaluate Porter's value chain

(b) Apply Porter's value chain to scenarios

BUSINESS SYSTEMS, SYSTEMS THINKING AND SYSTEMS ANALYSIS

13 Business strategy

(a) Describe the stages in the development

of business systems and strategies

(b) Explain the concept of business automation

(c) Explain the concept of business rationalisation

(d) Evaluate and discuss the principles

of business process engineering

14 Hard Systems approach

(a) Evaluate the Structured systems life-cycle emphasising the deliverables from each stage, clarifying the importance of these from a management perspective

15 & 16 Soft Systems approach

(a) Evaluate the principles of Checkland’s soft systems methodology

(b) Apply the major tools employed in Checkland’s soft systems methodology: Root definitions,

CATWOE, rich pictures, conceptual models

(c) Evaluate the difference between Hard Systems and Soft Systems approaches

GAP ANALYSIS AND BUSINESS CASE DEVELOPMENT

17 Business analysis

(a) Discuss the need for a general framework in the development of a business case:

Where we are W2R Where we want to be W32B Going to get there (GT)2 (b) Discuss Business Analysis vs Systems Analysis in terms of: A framework for business analysis, exploring and expressing problem situations, understanding what people do – and why they do it, modelling the current situation, Introduce the notion of Gap Analysis, modelling the required situation Apply Earl's ‘Systems Audit Grid’ and Peppard's ‘Strategic Grid’

18 Business case development

(a) Discuss the major elements of a business case development concentrating on the strategic issues of: Estimating costs and timescales, estimating benefits, benefit realisation dependencies, sensitivity analysis, and business justification

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19 Gap analysis

(a) Discuss applications portfolio/IT

investment decisions

(b) Evaluate Portfolio analysis; Risks

and benefits An analysis of the

portfolio of potential applications

within a firm to determine the risks

and benefits and select among

alternatives for IS Scoring model

(c) Describe determining the best fit

with the current system

IS AND COMPETITIVE POSITION

20 Competitive position analysis

(a) Evaluate Strengths, Weaknesses,

Opportunities and Threats (SWOT

analysis) as a technique for

identifying opportunities for

information systems development

(b) Apply SWOT analysis to scenarios

(c) Apply Mclaughlin et al's possible

SWOT responses to scenarios

(d) Relate McFarlane's model to the

BCG matrix

(e) Describe and explain Nolan's ‘Stage

Hypothesis’ and Zuboff's ‘Automate,

Informate, Transformate’ model

21 Linking business strategy and

information systems strategy

(a) Identify and discuss the links

between Business Strategy and

Information Systems Strategy using

IS/IT as an enabler: Analysis of

external (competitive) environment,

change, agree guiding principles, infrastructure standards and planning

(b) Discuss the potential advantages and disadvantages of IS/IT management partnership- internal/

outsourcing (in all its forms), facilities management

(c) Evaluate advantages of package solutions versus bespoke solutions

ELECTRONIC COMMERCE, INTERNET AS

A STRATEGIC BUSINESS TOOL

22 Web based technology

(a) Discuss the business impact of the Internet

(b) Identify good practise requirements, infrastructure requirements, and changes of business functions/

strategy

(c) Understand the Internet as a system

(d) Explain how to integrate with existing systems

(e) Discuss and describe the uses of an extranet and an intranet

(f) Evaluate the problems associated with using web based technology and the issue of security

23 Electronic commerce

(a) Discuss the impact of globalisation

on business strategy

(b) Describe the implications of globalisation in terms of:

management and control in a global

markets, global work groups, and global delivery systems

(c) Explain the Virtual Supply Chain (VSC)

(d) Discuss Electronic Marketing

IMPLEMENTING CHANGE

24 Success and failure

(a) Identify major problem areas when implementing information systems (b) Apply organisational impact analysis (c) Identify the criteria needed to assess whether a system is successful (d) Describe the principle causes of information system failure and how

to overcome them

(e) Discuss problems of implementation: people-oriented theory, system oriented theory, and interaction theory (f) Describe the relationship between the implementation process and the system outcome

(g) Explain and apply Lewin's “Three Stage” change process

25 Managing change

(a) Discuss the appropriate strategies to manage the implementation process (b) Discuss formal planning control framework and tools

(c) Evaluate impact of alternative system building techniques and tools (d) Explain how to manage risk (e) Understand the importance of having

a process to manage change in an Business Information Management (Continued)

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(f) Explain the importance of

commitment, coordination and

communication in the change

process

IMPACT OF IT ON WORK PRACTICES

26 Individuals information requirements

(a) Discuss the use of IT to manage

individuals’ information

requirements

(b) Identify how information systems can

support the tasks of the manager

27 Employee/employer relations

(a) Discuss the impact of IS/IT on

employee/employer relations in

terms of: Shorter chain of command,

flatter organisational structures,

wider span of control, de-skilling of

operatives

(b) Describe the concept of

Socio-Technical design in respect to

employee/employer relations

(c) Discuss the organisational

development issues resulting from

the need to develop and implement

information systems

28 Revision

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