What are the levels of control?
- strategic planning
- management control
- operational control
What are the key characteristics of strategic planning?
- takes place at the top of the organisation
- concerned with setting a future course of action for the organisation
What are the key characteristics of management control?
- concerned with the effective use of resources to achieve targets set at strategic planning
What are the key characteristics of the operational control?
- concerned with the day-today implementation of the plans of the organisation.
What is TPS (Transaction Processing Systems)?
- records historic information and represents the simple automation of manual systems
- routinely captures, processes, stores and output the low level transaction data
- for operational control
- facilitates the immediate processing of data
Management information systems (MIS)
- converts internal and external data into useful information which is then communicated to managers at all levels
- collate information from individual transactions recorded in the accounting system
- for middle management
- support for structured decision making
- provide an internal rather than external focus
-summary reports and comparisons - detailed information about the organisation’s operations
What are four broad types of MIS?
- database systems
- direct control systems
- enquiry systems
- support systems
Decision Support Systems (DSS)
- computer based systems which enable managers to confront ill-structured problems
- support for decision making
Tools of decision support system
- spreadsheet
- expert systems
- 4GLs
- databases
- statistical programs
Executive Information System (EIS)
- gives senior executives access to internal and external information
- information is provided in a summarised form
Expert systems (ES)
- at all levels of management and hold specialist knowledge
Enterprise resource planning system (ERPS)
- integrate the data from all operations within the organisation
- can be set up with extranet link to customers and suppliers
Customer Relationship Management (CRM) Systems
- is used to support these processes, information about customers and customer interaction can be entered
Big Data, what it is?
- large volumes of data beyond the normal processing, storage and analysis capacity of typical database application tools
What are five characteristics of Big Data?
- velocity - speed
- volume
- variety
- veracity - accurate, credibility of data
- value
What is data mining?
- is the process of identifying trends and patterns in large sets of data
What are 4 steps in The Big Data pyramid?
- data: a collection of facts
- information: facts put into context
- knowledge: some insight gained form the information provided
- wisdom/insight: adjusting our business decisions. Based on how our business is growing, we will accelerate the launch of our product
What means that business managers should be sceptical?
recognise the limitations of analytics based on predictions
What are the benefits of Big Data?
- driving innovation
- gaining competitive advantage
- improving productivity
What are the risks of Big Data?
- availability of skills
- security of data
- data protection
