A.2.3 Typical IT Functions and Technology Types

A.2.3.1

Detail the most common IT functions within an organisation A.2.3.2

Describe the attributes of transaction processing systems, process control
systems, planning systems, automation systems, and all types of MIS
A.2.3.3

Explain the concepts of databases, data mining and data warehousing

Definitions:

1. From a technical perspective, a Transaction Processing System (or Transaction Processing Monitor) monitors transaction programs, a special kind of programs. The essence of a transaction program is that it manages data that must be left in a consistent state.
2. A control system is a device or set of devices to manage, command, direct or regulate the behavior of other devices or systems.
3. 'MIS' (Management information system) is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management.
4. A Computer Database is a structured collection of records or data that is stored in a computer system. The structure is achieved by organizing the data according to a database model.
5. Data mining is the process of sorting through large amounts of data and picking out relevant information.
6. A data warehouse is a repository of an organization's electronically stored data. Data warehouses are designed to facilitate reporting and analysis.
   This classic definition of the data warehouse focuses on data storage. However, the means to retrieve and analyze data, to extract, transform and load data, and to manage the data dictionary are also considered essential components of a data warehousing system.

A.2.2 The IT Needs of Different Organisational Structures

A.2.2.1

Describe differing IT requirements within given organisational scenarios
A.2.2.2

Describe appropriate matches between organisational need and IT

A.2.2.3

Compose a technology impact statement within a given situation

A.2.1 IT Strategy

A.2.1.1

Understand the need for an IT strategy
A.2.1.2

Describe how to integrate the IT strategy with the business strategy
A.2.1.3

Relate IT strategy to business processes

Definitions:

1. 
   Information Technology Strategy, IT Strategy, IT Governance or ICT (Information & Communications Technology) Strategy, is a subset discipline of Corporate Strategy focused on information technology (IT) systems and their performance and risk management. The system by which the current and future use of ICT is directed and controlled. It involves evaluating and directing the plans for the use of ICT to support the organisation and monitoring this use to achieve plans. It includes the strategy and policies for using ICT within an organisation.
2. A business process or business method is a collection of interrelated tasks, which accomplish a particular goal.
   There are three types of business processes:
   1. Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".
   2. Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.
   3. Supporting processes, which support the core processes.

A.1.9 The Information Society

A.1.9.1
Assess the impact of IT within society and its subsets
A.1.9.2
List the advantages and disadvantages of IT in society
A.1.9.3
Describe the digital divide

Definitions:

1. An information society is a society in which the creation, distribution, diffusion, use, integration and manipulation of information is a significant economic, political, and cultural activity. The knowledge economy is its economic counterpart whereby wealth is created through the economic exploitation of understanding.
2. Digital divide: "Refers to the gap between individuals, households, businesses and geographic areas at different socio-economic levels with regard to both their opportunities to access information and communication technologies (ICTs) and to their use of the Internet for a wide variety of activities. The digital divide reflects various differences among and within countries. [OECD] "web.worldbank.org"
3. The term digital divide refers to the gap between those people with effective access to digital and information technology and those without. It includes the imbalances in physical access to technology as well as the imbalances in resources and skills needed to effectively participate as a digital citizen. "en.wikipedia.org"

A.1.8 Computer Based Training and e-Learning

A.1.8.1

Describe computer-based training
A.1.8.2
List the technical requirements for computer-based training, multimedia, etc.
A.1.8.3
Discuss the advantages and disadvantages of computer-based learning

Definitions:

1. Electronic learning (or e-Learning or eLearning) is a type of education where the medium of instruction is computer technology. In some instances, no in-person interaction takes place.
2. computer-based training or CBT is a type of education in which the student learns by executing special training programs on a computer. CBT is especially effective for training people to use computer applications because the CBT program can be integrated with the applications so that students can practice using the application as they learn.

A.1.7 Collaborative Technology

A.1.7.1

Identify the attributes of different workflow systems
A.1.7.2

Distinguish between virtual team-working and physical, co-located team-working
A.1.7.3

Describe the features of collaboration and co-operation, teams and groups
A.1.7.4

Describe the main features of collaborative technologies
A.1.7.5

List the major factors for successful implementation of collaborative technologies

Definitions:

1. Collaboration is a recursive process where two or more people or organizations work together toward an intersection of common goals — for example, an intellectual endeavor that is creative in nature—by sharing knowledge, learning and building consensus. Collaboration does not require leadership and can sometimes bring better results through decentralization and egalitarianism. In particular, teams that work collaboratively can obtain greater resources, recognition and reward when facing competition for finite resources.
2. A workflow is a depiction of a sequence of operations, declared as work of a person, work of a simple or complex mechanism, work of a group of persons, work of an organization of staff, or machines.
3. A team comprises a group of people or animals linked in a common purpose. Teams are especially appropriate for conducting tasks that are high in complexity and have many interdependent subtasks.
4. A Virtual Team — also known as a Geographically Dispersed Team (GDT) — is a group of individuals who work across time, space, and organizational boundaries with links strengthened by webs of communication technology. They have complementary skills and are committed to a common purpose, have interdependent performance goals, and share an approach to work for which they hold themselves mutually accountable.
5. Collaboration is a recursive process where two or more people or organizations work together toward an intersection of common goals
6. Cooperation, co-operation, or coöperation is the process of working or acting together, which can be accomplished by both intentional and non-intentional agents. In its simplest form it involves things working in harmony, side by side, while in its more complicated forms, it can involve something as complex as the inner workings of a human being or even the social patterns of a nation. It is the alternative to working separately in competition. Cooperation can also be accomplished by computers, which can handle shared resources simultaneously, while sharing processor time.

A.1.6 IS Support for Organisational Management

A.1.6.1
Define the role(s) and responsibilities of management
A.1.6.2
Categorise the types of computer support for management
A.1.6.3
Define organisational knowledge, memory and learning
A.1.6.4
Describe the major decision-making and problem-solving techniques
A.1.6.5
Assess the support Management Information Systems (MIS) provide

Definitions:

1. An information system (IS) is an arrangement of information technology used to capture, store, and distribute data to meet an organization's needs. This information technology includes computer hardware, operating system and application software as well as telecommunications and networking technologies. For-profit business enterprises, not-for-profit charities, social organizations and government agencies all rely on information systems to be effective.
2. Management Information System (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.

A.1.5 Business Processes

A.1.5.1

Define basic business processes

A.1.5.2

List major applications deployed in supporting business processes

A.1.5.3

Recognise the business processes used by organisations in different sectors

A.1.5.4

Detail the IT requirements to improve organisational competitiveness

Definitions:

1. A business process or business method is a collection of interrelated tasks, which accomplish a particular goal.


2. There are three types of business processes:

• Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".
• Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales.
• Supporting processes, which support the core processes. Examples include Accounting, Recruitment, IT-support.

A.1.4 Business Plans

A.1.4.1

Define the attributes of a business plan

A.1.4.2

List the major techniques used in preparing business strategies

A.1.4.3

Detail the Information Technology that will deliver a given business plan

Definitions:

1. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
   
2. Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal.

A.1.3 Internal / External Environment

A.1.3.1
Show, using diagrams, the position of organisations within their environments

A.1.3.2
Define a system in terms of co-ordination, monitoring and control

A.1.3.3
Demonstrate how external and internal factors impact throughout environments

Definitions:

1. Coordination is the act of coordinating, making different people or things work together for a goal or effect.

A.1.2 The Role of IT in Information Processing within an Organisation

A.1.2.1
Differentiate between data and information

Definitions:

1. Data is a computers form of information. It is simply endless lists of information. This means it is raw and unprocessed and therfore meaningless to us.


2. Information is data that has been processed for use.

A.1.2.2

Show, using diagrams, information processing models

Definitions:

1. Information processing is the change (processing) of information in any manner detectable by an observer.

A.1.2.3

Classify the layers of information processing within an organization
A.1.2.4

Describe the decision flow within these layers
A.1.2.5

Describe the role of IT in supporting Information Systems within an organisation

A.1.1 Organisational Types and Structures

A.1.1.1
Define major organisational types, their characteristics and corresponding internal structures (e.g. hierarchical vs “flat”), addressing aspects of legal status (e.g. charity vs. partnership), size (SME vs corporation)

Definitions:

1. An organization (or organisation — see spelling differences) is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment.
2. A hierarchy is an arrangement of objects, people, elements, values, grades, orders, classes, etc.
3. Flat organization (also known as horizontal organization) refers to a organizational structure with few or no levels of intervening management between staff and managers. The idea is that well-trained workers will be more productive when they are more directly involved in the decision making process, rather than closely supervised by many layers of management.
   This structure is generally possible only in smaller organizations or individual units within larger organizations. When they reach a critical size, organizations can retain a streamlined structure but cannot keep a completely flat manager-to-staff relationship without impacting productivity.
4. Charity organization, an organisation formed for charitable purposes
5. A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business undertaking in which all have invested. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners
6. Small and medium enterprises (also SMEs, small and medium businesses, SMBs, and variations thereof) are companies whose headcount or turnover falls below certain limits.
7. A corporation is a separate legal entity, usually used to conduct business. Corporations exist as a product of corporate law, and their rules balance the interests of the shareholders that invest their capital and the employees who contribute their labor. People work together in corporations to produce. In modern times, corporations have become an increasingly dominant part of economic life. People rely on corporations for employment, for their goods and services, for the value of the pensions, for economic growth and social development.

A.1.1.2
Describe the role IT plays in an organisation

Definitions:

1. Today, the term information technology has ballooned to encompass many aspects of computing and technology, and the term is more recognizable than ever before. The information technology umbrella can be quite large, covering many fields. IT professionals perform a variety of duties that range from installing applications to designing complex computer networks and information databases. A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as the management and administration of entire systems.

A.1.1.3
Show, using diagrams, the workflow within a number of different organisational structures

A.1.1.4
Identify the purpose of IT within an organisation

Definitions:

1. A workflow is a depiction of a sequence of operations, declared as work of a person, work of a simple or complex mechanism, work of a group of persons, work of an organization of staff, or machines. Workflow may be seen as any abstraction of real work, segregated in workshare, work split or whatever types of ordering. For control purposes, workflow may be a view on real work under a chosen aspect, thus serving as a virtual representation of actual work.

A.1.1.5

Identify the impact differing structures have on the management of IT

Some of principals of Strategic Management

Attractiveness-Strength Matrix
In the attractiveness-strength matrix, each business's location is plotted using quantitative measures of long-term industry attractiveness and business strength/competitive position.
Benchmarking
Benchmarking has proven to be a potent tool for learning which companies are best at performing particular activities and then utilizing their techniques (or "best practices") to improve the cost and effectiveness of a company's own internal activities.
Board of Directors
The central role of the board of directors in the strategic management process is (1) to critically appraise and ultimately approve strategic action plans and (2) to evaluate the strategic leadership skills of the CEO and others in line to succeed the incumbent CEO.
Business Model
A company's business model deals with whether the revenue-cost-profit economics of its strategy demonstrate the viability of the enterprise as a whole.
Business Strategy
Business strategy concerns the actions and the approaches crafted by management to produce successful performance in one specific line of business; the central business strategy issue is how to build a stronger long-term competitive position.
Cash Cow
A cash cow business is a valuable part of a diversified company's business portfolio because it generates cash for financing new acquisitions, funding the capital requirements of cash hogs, and paying dividends.
Cash Hog
A cash hog business is one whose internal cash flows are inadequate to fully fund its needs for working capital and new capital investment.
Company Competence
A company competence is the product of learning and experience and represents real proficiency in performing an internal activity.
Core Competence and Distinctive Competence
A core competence is something that a company does well relative to other internal activities; a distinctive competence is something a company does well relative to competitors.
Corporate Culture
Corporate culture refers to a company's values, beliefs, business principles, traditions, ways of operating, and internal work environment.
Corporate Intrapreneuring
Corporate intrapreneuring relies upon middle and lower-level managers and teams to spot new business opportunities, develop strategic plans to pursue them, and create new businesses.
Corporate Restructuring
Corporate restructuring involves making radical changes in the composition of the businesses in the company's portfolio.
Corporate Strategy
Corporate strategy concerns how a diversified company intends to establish business positions in different industries and the actions and approaches employed to improve the performance of the group of businesses the company has diversified into.
Cross-Market Subsidization
Cross-market subsidization-supporting competitive offensives in one market with resources and profits diverted from operations in other markets-is a powerful competitive weapon.
Differentiation Strategy
The essence of a differentiation strategy is to be unique in ways that are valuable to customers and that can be sustained.
Divestiture
Divestiture usually takes one of two forms-spinning a business off as an independent company or selling it to another company.
Driving Forces
Industry conditions change because important forces are driving industry participants (competitors, customers, or suppliers) to alter their actions; the driving forces in an industry are the major underlying causes of changing industry and competitive conditions.
Economies of Scope
Economies of scope arise from the ability to eliminate costs by operating two or more businesses under the same corporate umbrella; the cost-saving opportunities can stem from strategic fit relationships anywhere along the businesses' value chains.
Environmental Scanning
Managers can use environmental scanning to spot budding trends and clues of change that could develop into new driving forces.
Functional Strategy
Functional strategy concerns the managerial game plan for running a major functional activity or process within a business-R&D, production, marketing, customer service, distribution, finance, human resources, and so on; a business needs as many functional strategies as it has major activities.
Global competition
Global competition exists when competitive conditions across national markets are linked strongly enough to form a true international market and when leading competitors compete head to head in many different countries.
International (multinational) company
A company is an international (or multinational) competitor when it competes in a select few foreign markets. It is a global competitor when it has or is pursuing a market presence on most continents and in virtually all of the world's major countries.
Key Success Factors
Key success factors concern the product attributes, competencies, competitive capabilities, and market achievements with the greatest direct bearing on company profitability.
Mission Statement
A company's mission statement is typically focused on its present business scope-"who we are and what we do"; mission statements broadly describe an organization's present capabilities, customer focus, activities, and business makeup.
Multicountry (or multidomestic) competition
Multicountry (or multidomestic) competition exists when competition in one national market is independent of competition in another national market-there is no "international market," just a collection of self-contained country markets.
Objectives
Objectives are an organization's performance targets-the results and outcomes it wants to achieve. They function as yardsticks for tracking an organization's performance and progress.
Operating Strategy
Operating strategy concerns how to manage front-line organizational units within a business (plants, sales districts, distribution centers) and how to perform strategically significant operating tasks (materials purchasing, inventory control, maintenance, shipping, advertising campaigns).
Organizational Strategy
An organization's strategy deals with how to make management's strategic vision for the company a reality-it represents the game plan for moving the company into an attractive business position and building a sustainable competitive advantage.
Resource Strengths and Weaknesses
A company's resource strengths represent competitive assets; its resource weaknesses represent competitive liabilities.
Strategic Cost Analysis
Strategic cost analysis involves comparing how a company's unit costs stack up against the unit costs of key competitors activity by activity, thereby pinpointing which internal activities are a source of cost advantage or disadvantage.
Strategic Group Mapping
Strategic group mapping is a technique for displaying the different competitive positions that rival firms occupy in the industry.
Strategic Intent
A company exhibits strategic intent when it relentlessly pursues an ambitious strategic objective and concentrates its competitive actions and energies on achieving that objective.
Strategic Management
The term strategic management refers to the managerial process of forming a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then over time initiating whatever corrective adjustments in the vision, objectives, strategy, and execution are deemed appropriate.
Strategic Objectives
Strategic objectives relate to outcomes that strengthen an organization's overall business position and competitive vitality; Financial objectives relate to the financial performance targets management has established for the organization to achieve.
Strategic Plan
A strategic plan consists of an organization's mission and future direction, near-term and long-term performance targets, and strategy.
Strategic Vision
A strategic vision is a roadmap of a company's future-providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create.
Strategy Execution
Strategy execution deals with the managerial exercise of supervising the ongoing pursuit of strategy, making it work, improving the competence with which it is executed, and showing measurable progress in achieving the targeted results.
Strategy Implementation
Strategy implementation concerns the managerial exercise of putting a freshly chosen strategy into place.
Strategy
A company's strategy consists of the combination of competitive moves and business approaches that managers employ to please customers, compete successfully, and achieve organizational objectives.
Sustainable Competitive Advantage
A company that can expand its stock of strategic assets faster and at lower cost than rivals obtains sustainable competitive advantage.
TQM
TQM entails creating a total quality culture bent on continuously improving the performance of every task and value chain activity.
Unrelated Diversification
A strategy of unrelated diversification involves diversifying into whatever industries and businesses hold promise for attractive financial gain; exploiting strategic-fit relationships is secondary.
Value Chain
A company's value chain identifies the primary activities that create value for customers and the related support activities.