Q1. Computers have been used as tools to support managerial decision-making for more than 20 years and the various tools/decision aids can be grouped into the following categories:
1.transaction processing systems
2.management information systems
3.decision support systems
4.expert systems.
Required:
(a) Define and distinguish between these categories, ensuring that each is considered under the headings of applications served, database facilities, decision capabilities, type of information available and level of organisation served. (12 marks)
(b) In the context of typical computer-based information systems in an organisation's personnel department, identify tasks, which might be carried out for each of the categories of information system listed above. (8 marks)
(Total: 20 marks)

ANSWER OUTLINE
(a) Answer refer to table on page 6; Attributes of different IS at various levels.

(b) Personnel Dept – IS applications
TPS – Payroll, incentive schemes, flexi-time system.
MIS - Summary reports of balance annual leave not taken.
- Budgeting
- Monitoring performance appraisals
- Analysis of HR expenses & other benefits

DSS – Special ad hoc analysis – eg
Report on safety records
Equal opportunity
Long range planning of HR requirement
Redeployment
Incentive schemes
Pension plans
Expert System
- Legal advice regarding personnel matters eg health &
safety at work requirements
- Legal implication for non compliance or partial compliance.
- Tax implication for new benefit schemes
- Advice on tax matters to redundant staff
- Counseling retrenched staffs

Q2. RG LTD
RG Ltd manufactures industrial glues and solvents in a single large factory. Approximately 400 different inputs are used to produce the 35 specialist outputs, which range from ultra strong glues used in aircraft manufacture to high-impact adhesives that are required on construction sites.

Two years ago, with the company only just breaking even, the directors recognised the need for more information to control the business. To assist them with their strategic control of the
business, they decided to establish a MIS. This is now operational but provides only the following limited range of information to the directors via their networked computer system:

A summary business plan for this and the next two years. The plan includes details of the expected future incomes and expenditure on existing product lines. It was produced by a new member of the accounting department without reference to past production data.

Stock balances on individual items of raw materials, finished goods etc. This report is at a very detailed level and comprises 80% of the output from the MIS itself.

A summary of changes in total demand for glues and solvents in the market place for the last five years. This information is presented as a numerical summary in six different sections. Each section takes up one computer screen so only one section can be viewed at a time.

Required:
(a) (i) Comment on the weaknesses in the information currently being provided to the directors of the company. (8 marks)
(ii) Suggest how the information may be improved, with particular reference to other outputs which the MIS might usefully provide to the directors. (6 marks)

(b)Explain what strategic information any MIS is unlikely to be able to provide.(6 marks)
(Total: 20 marks)

Answer (a i)
What is the IS requirement for strategic level?
Refer to page 7 table on IS for strategic level.

Comment on weaknesses
Summary Biz Plan:
I. Prepared by inexperienced person – WHY? Must explain.
II. No reference to previous production data.
III. By someone from accounting dept – not a balance view, should be a collaborated work for all biz units.
IV. Biz plan = usually estimates – sales, expenditure budget, therefore experience is essential.

Stock balances report
Too detailed for the strategic level, need only summary.

Changes in total demand
I. Should be viewed on one screen to be able to see comparisons.
II. Looks like too detailed.
III. 5 years back data is too long way back. - not relevant to show current trends over the last 2 years.
IV. Too numerical – should have some analytical comments.

(ii) Improvement recommendation
Summary Biz Plan:
I. Look further ahead > 2 years
II. Show historical data
III. Show assumption of projections/forceast model
IV. Show income/expenditure on likely new products
V. Include market & competitor infor (external report)
Stock balances report
I. Highlight material/major variances
II. Arrange in priority of importance to company

Changes in total demand
III. Present comparatively all sections on one screen
IV. Use graphics & commentary
V. 3 years historical data instead of 5 yrs
VI. Other external info such as:
- Industry statistics
- Market growth
- Market shares & changes
- Major competitors

Additional info for strategic info:
I. Use financial modeling – to see effects of different inputs & assumptions.
II. Summary account info – to show analysis of past trends as basis for forecast or projection.
III. Sales analyses by – product, client, client type, sales rep,
- geographical areas, sales value/volume,
- gross profit %.

(b) Strategic information any MIS is unlikely to be able to provide (ie weakness of MIS)
I. Although contain both internal & external info, MIS is mainly internally focused.
II. Usually external data such as market growth & size can be entered but requires constant update form external sources & may not be timely (or be outdated).
III. Have very little analytical capability.
IV. Is mainly to provide summarized, comparative, ad hoc, scheduled report.

IN SUMMARY
MIS will not be sufficient to meet strategic level info which requires:
I. Analyses of SWOT
II. Predicting changes in customer tastes & preferences
III. Predicting technological advances
IV. Incorporating the effect of PEST.
V. Making use info about competitors

Q3. Why is business interested in Artificial Intelligence? (AI)

Answer Q.4
1)Preserve expertise of human that might be lost when an acknowledged expert leaves the firm.

2)Create a knowledge database that other non-specialist staff could use/assess.

3)To create a mechanism/system that is not subject to the weakness of human feelings, worry, limitation of physics & fatigue.

4)Work in environment that is dangerous for human beings.

5)Eliminate routine & unsatisfying jobs help by people. (Intelligent Agent, doing repetitive tasks)

6)Handle complex analytical work dealing with large
amount of data & variables.