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F1 BPP ST(August 2020) [Unlocked by www.freemypdf.com] (1)

 
461 
6.9 Information in the organisation 
A modern organisation requires a 
wide range of systems
to hold, process and analyse information. We 
will now examine the various information systems used to serve organisational information requirements. 
Organisations require different types of information system to provide different 
levels of information
in a 
range of functional areas.
System level 
System purpose 
Strategic
To help senior managers with long-term planning. Their main function is to ensure 
changes in the external environment are matched by the organisation's 
capabilities. 
Management/ 
tactical
To help middle managers monitor and control. These systems check if things are 
working well or not. Some management-level systems support non-routine 
decision-making, such as 'what if?' analyses. 
Operational
To help operational managers track the organisation's day-to-day operational 
activities. These systems enable routine queries to be answered, and transactions 
to be processed and tracked. 
6.9.1 Example 
Finance subsystem

The 
operational level 
would deal with cash receipts and payments, bank reconciliations and so 
forth.

The 
tactical level 
would deal with cash flow forecasts and working capital management.

Strategic level 
financial issues are likely to be integrated with the organisation's commercial 
strategy, but may relate to the most appropriate source of finance (eg long-term debt, or equity). 
The type of information at each level can be seen in the table below. 
 
Inputs 
Process 
Outputs 
Strategic 
Plans, competitor information, 
overall market information 
Summarise 
Investigate 
Compare 
Forecast 
Key ratios, ad hoc 
market analysis, 
strategic plans 

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