MSS Jan 2013

Question 1
(a) Describe what is meant by each of the following terms, and how they
may be used in the context of business and organizational strategy.
(i)

Vision (3marks)

(ii)

Mission Statement (3 marks)

(iii)

SMART Objectives (3 marks)

(iv)

Key Performance Indicators (KPI) (3 marks)

Answer
Vision
A vision statement is used to give a picture of the core ideology of a business, it
provides the framework for long term , strategic planning . Every business will
have some sort of vision or core ideology made up of:

core values

core purpose

visionary goals

this usually embodies the long term vision for the business

Mission Statement:
The vision is often captured in a mission statement, by summarizing the aims
and values of the company, thus providing an explanation of the purpose of the
company.
The mission can be highlighted in a strapline using only a few words

London Metropolitan Universitys strapline is:

transforming lives

meeting needs

building careers

SMART Objectives
The mission statement may be expanded into key goals or objectives which
provide the company with focus. An effective way to set these objectives is to
use the SMART acronym when formulating them. The SMART acronym means:

S- Specific and written down

M- Measurable

A- Agreed, Aligned, Achievable

R- Realistic, Relevant

T- Time-framed

Key Performance Issues

A key performance indicator (KPI) is a business metric used to evaluate factors

that are crucial to the success of an organization. KPIs are used in business
intelligence to gauge business trends, provide support for tactical level action and
measure success against pre-determined goals. Examples include net revenue,
customer loyalty metric, and unemployment rates.

Objectives will be supported by Critical Success Factors (CSFs) and measurable

targets, or

Key Performance Indicators (KPIs). Organisations use key

performance indicators (KPIs) to:

identify success

identify whether they are meeting customer requirements

help them understand their processes

identify where bottlenecks, waste, etc. exist

ensure decisions are based on fact

show if planned improvements happened

SWOT ANALYSIS

Definition
Pearson (1999) states that a SWOT Analysis involves a detailed and
exhaustive assessment of the strengths and weaknesses of the business and
the opportunities and threats presented by its product, markets and other
environments such as suppliers and technology developers. That is an analysis
of the internal and external factors that can impact the business.

Explaining the diagram

As its name states, a SWOT analysis examines four elements:

Strengths - internal attributes and resources that support a successful

outcome.

Explaining the diagram

Weaknesses - internal attributes resources that work against a successful

outcome.

Opportunities - external factors the project can capitalize on or use to its

advantage.

Threats - external factors that could jeopardize the project.

FM Ltd. SWOT:
Strengths
Multiple Order Options - The Company allows many options where their
Customers can order products from catalogue ,telephone, online or visiting the
stores.

Product Database - There is a product Database for FOTS which allows orders
to be taken from clients & POTS which are used to purchase orders.

Established- The Company was established in 2004, so they have over seven (7)
years in the Business.

Growing Company- The Company is growing as they have intentions to open

other stores or a warehouse.

Customer Database - There is a Customer Database for the Regular Customers,

which allows the Company to keep track of their personal data.
FMIS Steering Committee - The FMIS Steering Committee has been set up to
assist in the management decisions that need to be made and will provide any
support needed for that decision.

Weaknesses
Lacking Historical Data - The Company loses valuable information when there
are no details of the purchases orders stored in a database.

Insufficient Staffing- There is insufficient Staffing which leaves a lot of stress on

one individual to handle everything.

No HR Policies - There is no recruitment policy, retention or reward strategies

No Customer Loyalty Programs for Casual Customers- There is no incentives

strategies in place to keep or lock in their regular Customers.

No System to Track Companys Performance - There is no system in place to

track the performance of the Company sales wise.

Opportunities
Casual Customer Conversion- The Company will like to convert the casual
customers into Regulars and that will be done by targeted offers.

New Locations- Customers can be gained by opening a new location for the
Business.

Data Mining- Data can be converted from the database to gather specific data.

Integrate FOTS & POTS into FMIS- Integrate of FOTS & POTS into FMIS which
provides detailed and useful information to all Managers.

Threats
Competitors- Other Competitors can reduce their prices as well as have
incentives which will attract the Companies Customers. Because of the lack of
retention and reward policies, competitors can head hunt FM Ltds staff.

Inflation- Inflation either caused by prices too high or inflation from the
Government can have major effect on sales for the Company.

Government- Government can make changes which will affect how the Company
operates.

Question 2
Databases, management information systems, expert systems and knowledge
based systems all support management decision making. However, different
types of decisions require different types of support.
(a) Consider the types of decision that are made at the strategic level in an
organization
(i)

Describe the characteristics made at the strategic level (6 marks)

(ii)

Identify the type of management support systems that would be

appropriate at the strategic level, with specific reference to the FM
Ltd (5marks)

Answer
Strategic Level
(i)

The characteristics of decisions made at the strategic level include:

-

determining the

long-term objectives, resources and policies of the

organization
-

these decisions have a large impact on the organization and are

infrequent

-Decisions that are Unstructured (or non-programmable): fuzzy, complex

problems which have no clear solution procedure

Data and information characteristics at the strategic level are:

Contained within a wide time period, that is long range and time scale

Infrequent, unfamiliar and less certain and more risky, thus requiring
planning

Primarily external

wide in scope requiring some orientation

summarized

(a)

(ii)

Strategic decisions are made by Top Management, such as the

directors of a company. Examples of strategic decisions include setting

sales goals, deciding to relocate the business, purchase a new location or
merge with another company.

For FM Ltd., the strategic decisions facing top level management include:

Location of a new FM Ltd. Store

Location of a new warehouse

Best geographic location for business

In order to fulfill the data and information requirements given the characteristics
of data and information at this level as stated previously, a Decision Support
System, as well as an Executive Information System (EIS) would be the most
suitable Management Support Systems.

For FM Ltd., the data- oriented DSS classified by Turban et al (2014) would be
appropriate for strategic level decisions. This type of DSS would consist of a
database and use a program such as MS Access to build said database. MS
Access facilitates reporting based on queries. The results will then be used to
assist management with the decision- making process.

The use of an Executive Information System to further analyze data and

information is recommended for FM Ltd.
used by senior management

Executive Information Systems are

to select, retrieve and manage information in

order to support the achievement of an organisation's business objectives.

An effective Executive Information System (EIS) for FM Ltd, can be found in

using Pivot Table feature in MS Excel. The Pivot table feature will allow the
following EIS characteristics:

easy-to-use graphical user interface, e.g. an executive dashboard

provide reporting and analysis (OLAP*) features

enable managers to drill down from summary information to detail data

based on an organization-wide repository of information, e.g. a data

warehouse (with data from multiple TPS sources)

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Question 2
(b)

Consider the types of decision that are made at the tactical level in an
organization
(i)

Describe the characteristics of decisions made at the tactical level

(6 marks)

(ii)

Identify the type of management support systems that would be

appropriate at the tactical level, with specific reference to the FM
Ltd (5marks)

Answer
b) (i)

The characteristics of decisions made at the tactical level can be

described as:
-

Decisions that are considered medium- term, medium- impact and not
uncommon

Decisions concerned with efficient and effective use of resources in

achieving objectives

Decisions that are Semi-structured: between the two extremes; i.e. some
structured (operational) elements and some unstructured (strategic)
elements

Examples of tactical level decisions include determining whether the goals set by
top management are being met, adapting plans/ rules to meet these goals and
dealing with situations which are exceptional to these goals.

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b) (ii)

A tactical level decision facing FM Ltd is the need to develop an HR recruitment,

retention and reward strategies.

Identifying staff training needs as well as

performance recognition are also part of the strategy. This directly involves HR
Manager- Sarah Winder and indirectly, IT & IS Manager- Harry Lime and Sales
and Marketing Manager- Eileen Dover.

More than one management support system can be recommended for FM Ltd in
this situation:
Decision Support System (DSS)- MS Access can be used to create a database
storing employee information and their skills, i.e a skill base. Queries can then
be used to identify and match employees with specific skills, the results of which
can be used to identify training needs.

Online Analytical Processing (OLAP)- After identifying and matching employees

with skills, an analytical approach using MS Excel can be used to graphically the
data stored in the DSS. This will be useful in preparing reports for managers.

Expert System (ES)- After the two previous Management Support Systems are
used, an ES can be used to satisfy the training needs identified.

The benefits of using an ES are:

Monetary savings fewer human experts needed

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Improved quality of decisions / solutions ES are more consistent, fewer

mistakes are made

ES do not forget the rules

Compatible with various decision styles

Use as a training vehicle less time than gaining expertise the hard way

Expert is freed from repetitive, time consuming tasks

Scarce expertise is preserved

Ability to operate in hazardous environments

(c)

Consider the types of decision that are made at the operational level in an
organization
(i)

Describe the characteristics of decisions made at the operational

level (6 marks)

(ii)

Identify the type of management support systems that would be

appropriate at the operational level, with specific reference to the
FM Ltd (5marks)

Answer (c) (ii)

The characteristics of decisions made at the operational level are:

Decisions tend to be structured,

Decisions tend to be short-term, day to day tasks or transactions

Decisions tend to be small impact,

Decisions tens to be frequent, regular, repetitive

Decisions tend to be structured and can be programmed using standard

procedures in order to obtain the best known solution
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Operational data and information characteristics include:

Data and information occur in a narrow time period and are narrow in
scope and can be controlled daily or hourly

Data and information occur frequently and are more stable (low risk),
therefore decisions can be more structured and rule- based

Data and information are primarily internal and more detailed

Answer (c) (ii)

Operational level decisions are carried out by the lowest level of managementOperations, these include the heads of the various departments in a company.
Examples of decisions made at this level include, verifying customer information,
stock levels, updates on products and pricing. Suitable management support
systems for FM Ltd to use at the operational level would be:
1) Online Transaction Processing (OLTP)

update the database with day-to-day transactions (eg LINX payment

system)

database updated dynamically

shows up-to-date position

2) Decision Support System (DSS)- through the use of simple forms in MS

Access, customer, product, order and delivery information can be entered,
updated and deleted. FM Ltd has its own version to achieve this FOTS
and POTS.

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Jan 2013 Question 3

(a) Briefly explain the key components of a Decision Support Systems

According to Turban et al (2014), DSS is an umbrella term that is used to

describe any computerized system that supports decision making.

The following are the characteristics of a DSS.

support decision making in all its phases

use data (similar to MIS), with significant analysis capabilities (e.g. using
modeling techniques)

link intellectual resources of people with computing capabilities to improve

decision quality

can support the process by helping to identify a range of valid solutions to

a given problem

A DSS is made up of several components:

(i) Data- this is the 1st component of the DSS architecture
(ii) Models- the data components are manipulated by using models which can
be customized (eg Excel functions)
(iii) Users- this is a very important component of the DSS architecture, users
interact with the system through the user interface.
(iv) The user interface is also viewed as a separate component

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Decision Support Systems consist of

1) Data management sub-system (DSS Database; Database Management
System (DBMS); Data directory; Query facility)
2) Model management subsystem (Model Base; Model Base Management
System;

Modelling

Language;

Model

Directory;

Model

execution,

integration and command processor)

3) User interface subsystem which consists of a User interface management
system (UIMS) and the user.

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The User Interface Subsystem may contain a Knowledge management

subsystem.

User Interface Management System (UIMS)

This is software that manages the user interface providing:
o GUI, colour, 3D graphs, etc., windows for multiple functions
o storage of input & output data, interaction with input & output
devices
o help capabilities, prompting, diagnostics, training by example, etc.
o flexibility and adaptability

Hardware
o Input and output devices

The User
o Managers and staff specialists...

Model management sub-system

Model Base
o Contains routine and special quantitative models (statistical,
financial etc.) to provide analytical capabilities, including model
building blocks, e.g. random number generators, regression
analysis packages

Model base management system (MBMS)

o High-level languages used to customise the DSS

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Modelling Language
o Software designed to create models using subroutines and other
building blocks, generate reports and edit the model base

Model directory
o Analogous to the database directory
o Describes the models available

Model execution, integration & command processor

(b) Outline the benefits of using a Decision Support System (6marks)

Benefits of DSS
1) DSS augment decision-makers innate knowledge handling abilities. The
human brain is limited in its ability to handle and process inofmation
(cognitive limits), computerized DSS enables humans quick access to a
large amount of stored information.
2) Decision-maker can use DSS to solve problems that

would not be

attempted alone. Employees based in different geographic locations can

collaborate on problems a the same time via web- based tools, particularly
helpful in supply chain management,
3) would consume too much time due to their complexity. Decision making
that involves complex computations and large and varied amounts of data
can be carried out quickly by a DSS.

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4) Even for relatively simple problems, DSS may be able to reach solutions
faster and/or more reliably.

DSS enables decision maker to reach a

decision faster and can also lower costs.

5) Provide evidence to justify decision-makers position (e.g. to aid in
securing agreement)
6) Competitive advantage to organization due to enhanced internal
productivity. The agility of DSS can improve the competitive advantage of
the organization by enabling staff to make more informed decisions by
using intelligent systems.
7) Even though a DSS might be unable to solve a problem, it could be used
to stimulate thoughts about the problem, e.g.
o exploratory retrieval
o analysis
o advice
o solving a similar problem may trigger insight about present
problem
(Holsapple & Whinston, 2000)
8) Activity of constructing DSS may reveal new ways of thinking about
decision domain and formalize aspects of decision making
(Holsapple & Whinston, 2000)

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(c) Outline the limitations of a DSS (5 marks)

Limitations of DSS
1) Unable to replicate (or improve on) some innate human skills/talents
2) May be too specific (how to co-ordinate many DSSs working on a single
decision?)
3) May not match users mode of expression or perception
4) Cannot overcome a faulty decision-maker makes a poor selection from
choices available
5) Danger of over-dependencecannot make decision without the system
(Holsapple & Whinston, 2000)

(d) Distinguish between Online Transaction Processing (OLTP) and Online

Analytical Processing (OLAP). Give examples in context of FM Ltd.
(10 marks)
According to www.datawarehouse.info , On Line Transaction Processing (OLTP)
information systems are characterized by a large number of short online
transactions (INSERT, UPDATE, DELETE).

Online Analytical Processing (OLAP) is an information system that enables the

user to query the system and conduct an analysis of the results in real time as
the results are generated in seconds.

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The differences between OLTP and OLAP are as follows:

(i)

Source of data for OLTP is operational data, the actual transactions,

whereas the source of data for OLAP consist of a consolidation of
OLTP data from various OLTP databases.

(ii)

The purpose of OLTP is to control and run fundamental business tasks

where as the OLAP system purpose to help plan, analyze, provide
problem solving and assist in decision making.

(iii)

OLTP provides a snapshot of the business transactions whereas the

OLAP provides a multi- dimensional view different business activities.

http://datawarehouse4u.info/OLTP-vs-OLAP.html

How could OLTP be used FM Ltd?

1)

update the database with day-to-day transactions

2)

database updated dynamically

3)

shows up-to-date position

4)

concurrent updates across distributed databases

o orders from clients
o purchase orders
o delivery of products
o recruitment of staff
o products reaching reorder level

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Jan 2013- Question 4

(a) Describe the characteristics of each of the following types of expertise as
identified by Clare (1989) (2 marks each)

Practitioner
The characteristics of a Practitioner are:

expertise based on organized principles and methods

expertise gained from
o theoretical knowledge
o developed from experience and practice
work environment may not offer fully coherent basis for development of
expertise such expertise is therefore rare

Academic
The characteristics of an Academic are:

individual expected to
o guide
o direct
o teach others in field of own expertise

Craftsman
The characteristics of a Craftsman are:

expertise gained in routine activities

individual solves similar problems
rote learning of methods and procedures

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Samurai
The characteristics of a Samurai are:

characterized by performance of expertise

performance is the key aspect
final outcome is consequence of performance

Question 4 part (b) (i) to (v) Describe the characteristics of each of the following
levels of expertise as identified by Dreyfus (1987). (2 marks each)
Dreyfuss Stages:
Novice

skill acquisition
novice receives instruction
rules followed blindly
lacks coherent sense of task
judges performance on use of rules

Advanced beginner

performance becomes barely acceptable after experience of real

situations
recognizes situations on perceived similarity to previous examples

Competence

increased experience
recognizes similarities
views decision-making in a hierarchical manner
improves performance
choice of plan is not a simple matter

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Proficiency

view altered by outcome of recent events

certain features stand out - others ignored
plan modified as necessary
understanding the task becomes intuitive
o triggered naturally without explicit thought

Expertise

proceeds without detached deliberation

acts without conscious contemplation of options
performance is fluid
not interrupted by detached deliberation or analysis

(c) In which of the above categories of types of expertise and levels of expertise
would you classify the following? Indicate whether the role would require an
experienced recently qualified person. (3 marks each)
(i) Operations Director Penny Pincher
Type of Expertise- Samurai
Level of Expertise- Expertise
Experience needed- Yes
(ii) Senior Consultant Walter Wall
Type of Expertise- Academic
Level of Expertise- Proficiency
Experience needed- Yes

(iii) Trainee Consultant Pauline Savage

Type of Expertise- Practitioner
Level of Expertise- Competence
Experience needed - Yes

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(iv) Supplier Liaison Manager Guy Ropes (newly appointed)

Type of Expertise- Practitioner
Level of Expertise- Proficiency
Experience needed- Yes

(v) IT & IS Manager Harry Lime

Type of Expertise- Practitioner
Level of Expertise- Proficiency
Experience needed- Yes

Question 5
(a)

Compare and contrast the support offered to managers by Expert Systems

over the Decision Support Systems (7 marks)

Expert Systems
An expert system is a computer program that simulates the judgment and
behavior of a human or an organization that has expert knowledge and
experience in a particular field. Characteristics of an expert system are:

highly specialized in nature

extend scarce resource (expertise)

allow non-experts access to knowledge of experts
aim to provide specific solution
require specialist development skills and tools
used when experts cannot be present

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DSS
According to Gorry, Scott-Morton (1971), a Decision Support System or DSS can
be described as an interactive computer-based system which help decision
makers utilize data and models to solve unstructured problems.
The characteristics of a DSS are:

extend range, capability and effectiveness of managers' decision-making

processes
applied where analytic aids of value but manager's judgment essential
do not attempt to automate the decision process, or impose solutions

The differences between the Expert System (ES) and the Decision Support
System (DSS) are:

http://www.slideshare.net/anitajohri/dss-vs-expert-system

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(b) Outline the benefits and limitations of Artificial Neural Networks (ANN) (10
marks)

Definition of Artificial Neural Networks (ANN)

An Artificial Neural Networks (ANN) is:

A system of programs and data structures

It imitates the operation of the human brain (as so many new
technologies are said to do...)
theoretically involves many parallel processors
in practice, neural networks are often simulated

Neural networks - benefits

Good at some tasks that people are good at

Suitable for solving unstructured & semi-structured problems
Pattern recognition, even from incomplete information
Classification, abstraction and generalisation
In theory, processing can be in parallel for faster computations
Ability to adapt to new data: learning
Copes with fault-tolerant situations

Neural networks - limitations

Not good at tasks that people are not good at

Not suitable for basic data processing or conventional arithmetic
calculations (conventional computer system better)
Need a vast amount of data
Might not learn what is expected
Limited to classification and pattern recognition
Lack of explanatory capabilities
Not economically viable for parallel processing

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(c) (i)
(ii)

What is meant by the term Augmented Reality? (3 marks)

Give two examples of how Augmented reality could be used by FM
Ltd. (5 marks)

Definition
Augmented reality is the interaction of superimposed graphics, audio and other
sense enhancements over a real-world environment thats displayed in real-time.
http://www.digitaltrends.com/mobile/what-is-augmented-reality-iphone-apps-games-flash-yelpandroid-ar-software-and-more/#ixzz2qRsRyTul

What Augmented Reality does:

allows computer-generated images to appear in the world viewed through

a camera/smartphone
provides additional information on real-world images
can be used for computer games
can be used for business applications
helping sales staff visiting clients
providing directions
business card
allowing to visualize stock levels of products
check prices of product in different stores
3D maps
checking environmental conditions
training undertake repairs under guidance

Examples of how Augmented Reality could be used by FM Ltd:

1) Provide customers and suppliers with directions to their branches using
3D maps and making it available on mobile devices.

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2) Provide customers with visual that allows them to virtually place the
furniture so they can actually see the layout and visualize how the
furniture would look in their home, allow the customer to see size and
color of furniture.

3) Provide employees with visual training aids; make the training aids more
interactive and interesting. Provide 3 D visuals that will create a learning
environment similar to real world.

(d) Describe the essential features of Intelligent Agents and explain how they can
provide management support. (8 marks)
Intelligent agents are programs that...

work in the background without direct human intervention...

perform specific, repetitive, and predictable tasks...
for an individual user, business process, or software application...
with some degree of independence

Agents use in-built/learned knowledge to accomplish tasks/make decisions for

the user

Intelligent Agents can provide Management Support through these applications:

Performing like a personal digital assistant by scheduling appointments. For
example a Meeting Scheduler can

identifying a mutually appropriate time for all the participants to attend a

meeting
reserving an appropriate venue for the meeting
organising associated facilities (e.g. lunch, OHP etc.)
issuing reminders for the meeting
handling any problems which might arise at a later date
cancelling meetings

Intelligent Agents can provide business solutions such as data warehousing, data
mining and data visualization.

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Intelligent Agents can provide computerized help desk solutions by finding and
filtering information for users.
Workflow and Administrative Management: [2]
Administrative management includes both workflow management and areas such
as computer/telephony integration, where processes are defined and then
automated. In these areas, users need not only to make processes more efficient,
but also to reduce the cost of human agents. Much as in the messaging area,
intelligent agents can be used to ascertain, then automate user wishes or
business processes;

http://www.hermans.org/agents/h31.htm

Other Intelligent agents applications

can be programmed to make decisions based on user's personal

preferences e.g.
o delete junk e-mail
o schedule appointments
o travel over interconnected networks to find the cheapest airfare
An agent is like a personal digital assistant collaborating with the user in
the same work environment
can help the user by
o performing tasks on the user's behalf
o training or teaching the user
o hiding the complexity of difficult tasks
o helping the user collaborate with other users
o monitoring events and procedures

There are different levels of Intelligent Agents, they are as follows:

Level 0 - e.g. web browsers eg firefox

agents retrieve documents for user under direct orders

e.g. user specifies URL

Level 1 - search engines eg using google

agents provide a user-initiated search facility

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Level 2 - software agents eg Webwatcher which serves as a tour guide for the
worldwide web. The software acts as a guide to the user and alerts the user to
possible sites that may interest them through hyperlinks, based on the users
browsing history.

maintain users profiles

monitor Internet information
notify users when relevant information is found
http://www.cs.cmu.edu/~webwatcher/

Level 3 - learning or truly intelligent agents an example of this is Diff Agent.

have a learning and deductive component of user profiles to help a user

who cannot formalise a query or target for a search

http://wps.prenhall.com/wps/media/objects/5073/5195381/pdf/Turban_Online_TechA
ppC.pdf

Can be used in travel reservation system and integrated supply chain management

Define DSS
According to Gorry, Scott-Morton (1971), a DSS can be described as interactive
computer-based systems which help decision makers utilize data and models to
solve unstructured problems. Turban, Sharda and Delen (2014), classify two
types of DSS a model-oriented DSS which uses quantitative models to generate
a recommended solution to problems and a Data- oriented DSS which
supports ad hoc reporting and queries.

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Define MIS

Distinguish between the two

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