Use of Software-Generated Information to Make Organizational Decisions

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Use of software-generated information to make organizational decisions

CONTENTS
1 Introduction…………………………...………………………3 2 Analysis
4.1Use appropriate information processing tools………………………..4 4.2Prepare a project plan for an activity and determine the critical path.5 4.3Use financial tools for decision making……………………………..7 3 Conclusions………………………………………………….11 References…………………………..…………………………11

Introduction
The net present value method works out the present values of all items of income and expenditure related to an investment at a given rate of return, and then works out a net total. If it is positive, the investment is considered to be acceptable. If it is negative, the investment is considered to be unacceptable. The internal rate of return method of evaluating investments is an alternative to the NPV method. The NPV method of discounted cash flow determines whether an investment earns a positive or a negative NPV when discounted at a given rate of interest. If the NPV is zero (that is, the present values of costs and benefits are equal) the return from the project would be exactly the rate used for discounting. This assignment introduces NPV and IRR, and calculates the company NPV and IRR

Analysis
4.1Use appropriate information processing tools
Figure shows relation of information system to the levels of organization. The information needs are different at different organizational levels. Accordingly the information can be categorized as: strategic information, managerial information and operational information. Strategic information is the information needed by top most management for decision making. For example the trends in revenues earned by the organization are required by the top management for setting the policies of the organization. This information is not required by the lower levels in the organization. The information systems that provide these kinds of information are known as Decision Support Systems. The second category of information required by the middle management is known as managerial information. The information required at this level is used for making short term decisions and plans for the organization. Information like sales analysis for the past quarter or yearly production details etc. fall under this category. Management information system (MIS) caters to such information needs of the organization. Due to its capabilities to fulfill the managerial information needs of the organization, Management Information Systems have become a necessity for all big organizations. And due to its vastness, most of the big organizations have separate MIS departments to look into the related issues and proper functioning of the system. The third category of information is relating to the daily or short term information needs of the organization such as attendance records of the employees. This kind of information is required at the operational level for carrying out the day-to-day operational activities. Due to its capabilities to provide information for processing transaction of the organization, the information system is known as Transaction Processing System or Data Processing System. Some examples of information provided by such systems areprocessing of orders, posting of entries in bank, evaluating overdue purchaser orders etc。

Types of information system

4.2Prepare a project plan for an activity and determine the critical path (a) Using scenario 1 your are required to draw a network for the feasibility study and determine the critical path of the project (b) Draw up a work breakdown structure for house project, recruitment and family vacation and provide explanation to one of the WBS drawn Breaking down a project into phases or stages (work breakdown structure) is often the best way of: (a) Actually discovering the work that must be done in the project; (b) Determining the resources required; and

(c) Sequencing the work done, so that resources can...
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