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Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
BTEC L3 ICT
Unit 3
Information Systems
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Learning Objectives for this unit:
LO1: Understand how organisations use business information
Types of information: qualitative, quantitative; primary; secondary Purposes of information: operational
support eg monitoring and controlling activity; analysis eg to identify patterns or trends; decision making
(operational, tactical, strategic); gaining commercial advantage
Sources of information: internal eg financial, personnel, marketing, purchasing, sales, manufacturing,
administration; external eg government, trade groupings, commercially provided, databases, research;
reliability of data sources
Good information: characteristics eg valid, reliable, timely, fit-for-purpose, accessible, cost-effective,
sufficiently accurate, relevant, having the right level of detail, from a source in which the user has
confidence, understandable by the user
Business functional areas: eg sales, purchasing, manufacturing, marketing, finance, personnel,
administration Information flows: internal information flows; information flows to external bodies; information
flow diagrams
LO2: Understand the issues related to use of information
Legal issues: relevant data protection legislation eg Data Protection Act 1998, Freedom of Information
Act 2000; other relevant legislation eg Computer Misuse Act 1990
Ethical issues: codes of practice eg on use of email, internet; ‘whistleblowing’; organisational policies;
information ownership
Operational issues: security of information; backups; health and safety; organisational policies; business
continuance plans; costs eg additional resources required, cost of development; impact of increasing
sophistication of systems eg more trained personnel, more complex software
LO3: Know the features and functions of information systems
Features of information systems: data; people; hardware; software; telecommunications
Functions of information systems: input; storage; processing; output; control and feedback loops;
closed and open systems
Transformation of data into information: distinction between data and information; collection,
storage, processing, manipulation, retrieval, presentation
Types of information system: management information systems; others eg marketing (sales
performance, competitors etc), financial (financial costs, investment returns etc), human resources (HR)
(staffing, professional development etc)
Management information systems (MIS): features; benefits; effectiveness criteria eg accuracy,
sustainability, response times, confidence
LO4: Be able to use IT tools to produce management information
Tools: software eg databases, artificial intelligence and expert systems, predictive modelling; internet;
others eg data mining systems
Gather information: define the requirement; establish sources of information; define other factors to be
considered eg constraints; select information
Analyse information: quality eg validity, accuracy, currency, relevance; identify alternatives
Management information: reports eg sales report, college enrolment statistics, marketing analysis (brick
versus click)
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Grading criteria:
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Assignment1 – Scenario
MegaMedia is a medium sized British company who specialise in the
purchasing and selling of a variety of media devices including
memory sticks, iPads, external hard drives and a range of different
tablets. The way the business currently sells products is through a
combination of online orders from their website or in store purchases
at one of their three shops based in London.
They rely on efficient suppliers to ensure they always have their
products in stock in a range of sizes and colours. Like any business
they have all of the key functional areas and rely on reports on
competitors to ensure they are selling their products for the best
possible price.
All reports are generated by the administration team but they have to
be sent for checking to the CEO, she then sends these on to the
relevant departments when she has had the time to look at them.
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Assignment 1 – How Our Business Works
P1 Explain how organisations use information
You should touch on much of the content outlined in the unit content for LO1, presenting the information in
a logical sequence, eg what is information ie types, sources, characteristics (may require some theoretical
content), where is it used (functional areas, purposes), how is it communicated (information flow). At least
three internal and two external functional areas should be included to provide sufficient complexity.
LO1 Content:
Types of information: qualitative, quantitative; primary; secondary
Purposes of information: operational support eg monitoring and controlling activity; analysis eg to identify patterns
or trends; decision making (operational, tactical, strategic); gaining commercial advantage
Sources of information: internal eg financial, personnel, marketing, purchasing, sales, manufacturing,
administration; external eg government, trade groupings, commercially provided, databases, research; reliability of
data sources
Business functional areas: eg sales, purchasing, manufacturing, marketing, finance, personnel, administration
Information flows: internal information flows; information flows to external bodies; information flow diagrams
Types of information
Qualitative information is subjective, personal and opinionated. Hard to analyse as some
information might not be factual. Commonly referred to as ‘qualativiate research’ is not found in
numerical form, more common would be surveys, questionnaires, diary accounts and instructive
interviews. This information is used to allow organisations like Mega Media to find out personal
information, something that facts and figures fail to show. Companies such as Mega Media would
not necessarily need to use qualitative information all the time but they could when it comes to
interviewing for staff recruitment. This is due to the nature of unstructured interviews playing to
the advantage of the company as it should be personal and opinionated to recruit staff.
Mega Media would first gather quantitative information through applications, and the successful
candidate would have subjective, opinionated questions given to them, further allowing the
company to see if the candidates have good communication skills. Quantitative information is
factual and commonly number based. It is gathered through reliable and accurate sources. Mega
Media would need to use quantitative information to collect data regarding the stores employees,
stock and products.
Primary information is specifically collected by individuals and first hand by companies. The
information collected could be a variety of things including information regarding products and
their sales figures, and as the data is collected first hand it is 100% reliable and accurate.
Secondary information is acquired through sources and more directly taken. An example of this is
to collect information regarding product storage from a separate branch or company, which could
be unreliable. It is data that could be unreliable or reliable as it has not directly been collected
by the company. Therefore when using secondary information it’s extremely important that Mega
Media don’t rely purely on it.
Purposes of information
Mega Media can use information for operational support. It can be used to control and monitor
activity regarding the staff, check up on what’s going on, whether they should be doing that are
actually working and what areas are they working in. for instance, primary information can be
used to monitor in the form of 24 hour cctv which Mega Media has installed in their store. The
information gathered for the company can be used to check on employees.
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Mega Media can further use analysis of information within their company to identify trends of
patterns emerging and if necessary change the style of the specific topic to which the information
was collected. An example of this is sales products. The company can get the statistics for the list
of sales for particular products and then look over them to decide a plan of action, seeing if it has
sold well or not sold well. This is important for companies such as Mega Media because it allows
them to monitor the performance of staff wok or product sales and make decisions that could be
beneficial for their customers. The more information and data that is analysed, the easier the
decisions the company has to make regarding financial situations.
Decision making is essential to businesses as decisions can be made at operation, tactical and
strategic levels. An operational decision is one that is made by a manager who runs day to day
operations. A prime example of an operational decision might be to stop selling certain products
to certain shop as a result of poor selling. As this is a day to day decision and would use stores
shock he would not need to consult his district manager about it. Tactical decisions however
would need to be introduced by someone with more authority such as the district manager and a
long term decision would be made from head office by a senior manager
Gaining commercial advantage over a competitor is very important for a local business such as
Mega Media as if they were competing with another business and drove them to bankruptcy they
would acquire that businesses products as a cheap rate, further making a profit. This will gain the
customers form that company which will bring massive increase in revenue to Mega Media
Sources of information
Internal information
Internal information is generated within businesses such as Mega Media and is considered to
be primary information. Firstly Mega Media use financial information to observe how the business
is doing in terms of money, whether the business experiencing loss or gains. The information that
is extracted consists of price for terms, price for staff, costs, sales, stock and taxes.
The human resources department or personnel hold bank details and current information for
its employees. This is in order to give the correct pay to the staff or if they hold information
regarding friends outside the company in their contract. It is very important that the company have
up to date information on the employees for health and safety reasons. Mega Media must further
check the employee’s qualifications to ensure they fit the job requirements.
Marketing information is used to spot which products r services are most successful to
businesses. Information can be collected from different departments such as sales to promote
and advertise certain products based purely on sales rates.
External information
Examples of external information sources are: government, trade groupings, commercially
provided information, database and research. Government information is definitely considered
reliable and companies need to use this reliable information to run the business efficiently. An
example would be if a company has thousands of employees paid below minimum wage outlined
by the government, the company in question must increase their hourly wages for the staff.
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Commercially provided information us used by many companies in order to help give advice
when it comes to decision making. This is commonly used in the form of primary information but
also secondary can be used. For example, a marketing group might use information about sales
of a particularly product that have or haven’t sold well, helping them make a decision regarding
what product’s need to be strongly advertised.
Companies used research to help them increase sales and interest in their business. Mega
Media can research information about a product on their database.Certian companies such as
Mega Media will pay to access public and commercial databases, offering plenty of information.
Business functional areas
Sales departments are responsible for communication between customers and gaining new
customers. The communication collected from customers will they be distributed to the
manufacturing department helping that department understand what to make for the customers.
However as Mega Media is a distributing companies not a manufacturing one, sale will be of
more importance. Sales will also need to send information they gain to the finance department in
order for finance to communicate with administration.
The purchasing department is relied on for buying goods, material and services required to run a
successful business. This department will work for Mega Media to find the best and most suitable
products needed. An example is a list of materials needed will be sent in order to produce the
finished product that the company sells.
The personnel department keeps records of staff, having detailed reports of addresses, by the
data protection act in order to keep running the business. This department communicate with all
departments when new employees are added to the business to offer contracts and ensure all
claimed qualifications are accurate. However, the main department they communicate with is the
financial department.
References used:
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
M1 illustrate the information flow between differentfunctionalareas
The addition of a clear, detailed, comprehensive information flow diagram will cover M1.
Key
Marketing and Personnel
Marketingand Personnel informationisof massive importance toacompanysuch as Mega Media.Thisis
because Personnelwill directthe strategyforthe Marketingteamtoadvertise andpromote theirproducts.These
strategiesare usedtoincrease profitonproductsthat maybe haven’tsoldaswell asothers. Personnel
Informationcanbe gatheredtoletcompaniesincluding MegaMediaknow whothe strongestmarketersare.
Finance and Purchasing
The purchasingdepartmentwill needtoknow the budgetinregardstopurchasingnew andcurrent stock.
Finance will informthe purchasingdepartmentabouthow muchmoneyisinthe budgetandwhichproductsto
spendhighandlowon. Thisisimportantfor MegaMedia because withnoguidelines,purchasingwillhave no
clue how much theycan spend.
Finance and Personnel
The linkbetweenfinance andpersonnel isthe employeesandtheir,hourly,weeklyandyearlysalaries.Thisisdo
the correct pay isgivenout to employees,preventinganycourtcases.Finance will alsoinformPersonnelwhether
or not Mega Mediawill be allowedtohire new employeesorif theyhave toomanyemployeesandneedto
produce staff cutbacks.
Finance and Marketing
Marketingisthe creative side,drivenbypassionforthe businessandusesthatinorderto successfullypromote
the business.Finance bycontrastfocusesonseeingbenefits. MegaMediawill needtohave excellent
communicationbetweenthe twodepartmentstoachieve the goalsMegaMediaaspire to,e.g.profit.
Salesand Finance
Salesneedtocommunicate withthe Finance departmentinformingthemaboutthe amountof profitmade daily,
weeklyandmonthly.Finance needtoensure thatthe salesteamare reachingthe requiredtargetorprofit. Mega
Mediawill needtohave fullycommunicatingsalesandfinance departmentinordertoassure the mostprofit.
Salesand Marketing
Marketingisimportantto the salesdepartmentbecause amarketingstrategywouldneedtobe explainedtothe
Salesdepartmentinordertosell the productsaccordingto the strategy.Anexample isCRM(Customer
RelationshipsManagement) datawhichisamarketingstrategyallowingthe salesteamtounderstandwhattheir
customersare most interestedinbyviewingtheiractions/behaviour.
Salesand Administration
Administrationcommunicateswiththe Salesdepartmenthow tomanage the ordersof stock and helptoimprove
fieldsales,doingthisbydealingwithcustomerqueries.The role of aSalesAdministratoristoprocessorders
generatedbysalesrepresentativesandcheckthe productdetailsforthe customersbenefit.
Salesand Personnel
Personnel communicate toSales,listsof oldandnew clientstowhomtheycan sell productstoo.Personnel
furtherassistthe salesstrategybycollectinginformationfromcustomersregardinglikedanddislikedproducts.
Administrationand Personnel
These departmentsare verysimilaranduse thisto have excellentcommunicationbetweenone anotherrelating
to data processingandfile maintenance.While the Administrationin MegaMediawill focusonthe business
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
recordsand statistics,the Personnel/HumanResourcesdepartmentwill focusonupdatingpayrollandemployee
paperwork.
Administrationand Purchasing
Administratorscommunicate tothe purchasingdepartmentinregardstothe buyingof productsand servicesfor
organisations.The Purchasingdepartmentspendmuchmore of theirtime usingcomputersandcataloguesand
Administrationrequire contactsbothinternallyandexternally.
Administrationand Finance
AdministrationandFinance providesfacilitiesoperatingdepartmentswithsharedservices that.These consistof:
 Budget
 Informationtechnologyhardware support
 Finance
 Contract administration
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
D1 explain how an organisationcould improvethe quality of its business
information
You should demonstrate an understanding of the characteristics of good information as outlined in the unit
content. Learners should support the theory with appropriate examples.
Mega Media could improve the quality of their information through multiple ways and ideas.
The first of those being the effectiveness of information. This is important to Mega Media
because this would allow employees of the business to work more efficiently. The information
handed over should be checked by employees before being transferred to senior management
as the irrelevant, useless information would be eradicated, with only the important information
reaching senior management. Another method to increase the effectiveness of information is
for the department whom want certain information would type a short request to
References used:
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
P2 discuss the characteristics of good information
You should touch on much of the content outlined in the unit content for LO1, presenting the information in
a logical sequence, e.g. what is information i.e. types, sources, characteristics (may require some
theoretical content), where is it used (functional areas, purposes), how is it communicated (information
flow). At least three internal and two external functional areas should be included to provide sufficient
complexity.
LO1 Content:
Good information: characteristics eg valid, reliable, timely, fit-for-purpose, accessible, cost-effective, sufficiently
accurate, relevant, having the right level of detail, from a source in which the user has confidence, understandable by
the user
Customer Information (bank details. personal details)
Customer information regards the information held by an organisation about their customers.
An example of the information held by a company such as Mega Media is bank details e.g.
debit card information and personal data. The personal data kept regards names, addresses,
phone numbers etc. This data must be kept up-to-date and remain secure in order to adhere
to the Data Protection Act 1998 (legislation for the storage and handling of data/information).
The information must be kept accurate and up-to-date as of this Act; failure to comply would
result in legal action, fines and prosecution for the company and its employees. Other reasons
to keep the data accurate and valid are so the company can advertise specific products to
their customers based on the information regarding the customers the company have. A
company that do this is Amazon, as they take in the details of what customers have looked at,
allowing them to advertise products more suited to the customers acquired taste.
Overall keeping reliable, accurate and up-to-date information of your (Mega Media)
customers will have better implications on the company in relation to profits and
trustworthiness. If the information Mega Media receives from their customers isn’t ‘good
information’ then Mega Media could not trust the information, resulting in the information being
invalid and inaccurate. Further, the information presented could be out-of-date, giving the
Mega Media unreliable results to process the data. The information gathered must be cost-
effective otherwise it would result in costing Mega Media in profits, resulting in a waste of
resources. One aspect of collecting data and processing it into information comes with
secondary data, data collected by a second company. This could be used to find out
information regarding the rival companies, however, in order for this to happen Mega Media
must have the confidence in their sources. Having confidence in a source shows the source
is reliable and used commonly by various different businesses, allowing the information
reviewed to be reliable.
The information distributed to Mega Media must be fit-for-purpose, requiring a certain level
of detail in order to become relevant. An example of this would be Mega Media looking at the
local population within a certain area of the business, viewing the amount of potential
customers and how to advertise to them.
Product Information (Inventory Information)
Product Information is of crucial importance to a company as it can depend on the quantity
and quality of products received from Inventory. Inventory will need to deliver information to
senior management at Mega Media regarding product availability, stock and information. This
information must be valid, accurate and to the correct level of detail, should these criteria
not be met, bad information will be transferred about Mega Media’s inventory, resulting in poor
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
communication and potentially a loss of business. Product stock is important and the
information regarding product stock must be communicated correctly in order for senior
management to understand what products need to be refreshed in stock. The information
needs to be up-to-date constantly as of the Data Protection Act and must be presented in the
correct level of detail to maintain effective communication between departments. In regards
to the sourcing of this information, the data collected and processed into information wouldn’t
be too high in costs as it would be internal, primary sourcing. The reasoning behind this
information being cheaper to view is due to the logs created by Inventory, showing information
of their activity regarding products, including how they have been brought, sold or and
distributed: and the product stock information must be kept up-to-date with even the smallest
changes shown e.g. the number of units sold, the number of units distributed from the
warehouse to the stores. Furthermore, this allows the logs kept by Inventory to be easily
accessible to Mega Media staff should the information need changing ensuring it is fit-for-
purpose.
Staff information
Staff information is very important in a company such as Mega Media because they are the
source of the information that is gathered by the company, meaning it is internal information.
The staffs at Mega Media or indeed any company has the responsibility inform their superiors
regarding any personal detail changes or contract disputes. In doing this the information is
kept up-to-date and fit-for-purpose. The Data Protection Act reads that out-of-date
information should not kept by an organisation, meaning that any personal details such as
home and email addresses must be updated whenever they change, making the information
kept by the company accurate and valid. The information that would be processed regarding
employees would be listed onto a record e.g. a database. Information could also be
transferred over the companies Intranet to higher listed members of staff e.g. senior
management. As the information would be collected internally, the cost for this information
would not amount to a figure.
Staff information can also help assist in the enrolment of new employees through primary data
collected through qualitative information. This information would be gathered through
interview form, adding the personal touch to employment, thus adding more quality to
information at Mega Media.
Internal Information
Internal information is gathered first hand by a business for example Mega Media, and can be
in form of emails, memos, notices or data. The data collected inside the company is extracted
by senior members of staff, subsequently processed into information, ready for analysis.
Internal information is used by a company in order to achieve the best possible results as the
quantitative information collected is reliable and accurate as it is taken first hand. The
information collected internally for Mega Media is ‘good information’. . The majority of internal
information comes from Managers analysing information, and subsequently making informed
decisions from the information.
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
External Information
External information by contrast is information collected by a second party/company; it is
collected outside the business asking for the information (secondary data). Now this
information can lack in level of detail and accuracy on occasions as the documentation of
results could be incorrect with the company having no way of knowing. However, the
information collected would remain reliable if Mega Media choose a reliable company to
gather their results. One reason to having secondary data collected is to observe what local
competition Mega Media face and how to combat the competition. Mega Media would need to
be made aware of all external factors including weather conditions; particularly surrounding
the warehouse. This is because the winter could affect the way products are distributed and
sold e.g. snowy, icy conditions could result road closure, preventing the distribution of
products to stores.
References used:
http://www.tutor2u.net/business/reference/the-difference-between-data-and-information
http://www.contentedwriter.com/characteristics-of-good-information/
http://www.contentedwriter.com/what-is-good-information/
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
P3 explain the issues related to the use of information
You should include at least two items from each of the three issues outlined in the unit content.
LO2 Content:
Legal issues: relevant data protection legislation e.g. Data Protection Act 1998, Freedom of Information Act 2000;
other relevant legislation e.g. Computer Misuse Act 1990
Ethical issues: codes of practice e.g. on use of email, internet; ‘whistleblowing’; organisational policies; information
ownership
Operational issues: security of information; backups; health and safety; organisational policies; business
continuance plans; costs e.g. additional resources required, cost of development; impact of increasing sophistication
of systems e.g. more trained personnel, more complex software
Legal issues
As businesses grow, more and more information is gained, and it is of vital importance that the
information held is under the laws that are in place. Companies such as MegaMedia need to abide by
laws such as the Data Protection Act 1998. This is a piece of law that is overseen by the Information
Commissioners Office, and the law is intended to protect and give rights to Data subjects (companies)
and Data users. The Data Protection Act has 8 regulations that companies and corporations must
abide by and they are;
1. Fairly and Lawfully
2. Processed for Limited purposes
3. Adequate, relevant and excessive
4. Accurate
5. Not kept longer than necessary
6. Processed accordance with the data subjects rights
7. Secure
8. Not transferred other countries without adequate protection
They a split into 2 prominent categories, Data Subjects and Data Users. Data subjects focuses on
the company aspect of the Act and Data Users however is personal data which focuses on the users
of the company. Companies such as MegaMedia could use this act to their advantage and
disadvantage, the advantage being distributing customer information to increase revenue through the
customers’ consent and the big disadvantage being distributing data without authorisation and
permission. This is a big issue with companies whom are handing out information with no
authorisation to do so. An example of this is certain supermarket chains that distribute data of
particular customer information across their company to increase revenue and marketing without even
consulting the customers whose information is being used and is something that MegaMedia should
avoid doing.
MegaMedia should also look out for other laws that raise issues. One of which is the Computer
Misuse Act 1990, which relates more to the e-commerce companies and corporations and is
designed to reduce hacking and unauthorised access to privileged information. The Computer Misuse
Act covers three main points;
1. Unauthorised access to computer material
2. Unauthorised access with the intent to assist in or facilitate a serious crime
3. Unauthorised modification of computer material such as worms or virus’
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
This affects the company because if customer information is accessed by a hacker then the company
can be held liable for failing to stop unauthorized access into their systems. So if MegaMedia were to
fail to obey one of these acts, serious and legal implications would follow.
The final aspect of legislation MegaMedia should be concerned with is the Freedom of Information
Act 2000. This act gives public access to information that is stored by;
 Public services,
 Local government,
 Schools, colleges, universities,
 Health care services.
 Police, committees
This act can affect companies such as MegaMedia because failure to comply will breach the act,
resulting in fines, legal action and imprisonment. However, as MegaMedia is a private business and
does not receive any tax payer funding and therefore does not fall under the jurisdiction of the
Freedom of Information Act.
E-commerce directive requires the business to display the name of your business, company
registration number, geographical address, VAT registration number and contact information e.g.
email address, telephone number etc. You (as a website) must explain the terms and conditions of the
websites use must provide clear information regarding price, tax and delivery to buyers and must
acknowledge all orders placed.
The Consumer Credit Act and Distance Selling Act regulate all aspects of financial transactions
between consumers and companies including MegaMedia. It helps protect consumers from being miss
sold products or services and brings greater regulation to companies trading in the financial and credit
industries, such as licensing and a strict advertising protocol for specific sectors of the financial
markets. Also the website must send a written form of confirmation regarding purchases. Also, as part
of the regulation the company must provide a “cooling off” period for customers meaning should they
wish to cancel their order or return it they can. This particular law applies to MegaMedia in many ways
as there are required
Ethical Issues
Codes of Practice
Companies and corporations commonly have a code of practice explain the policies and procedures
employees must follow. A code of practice will determine the extent to which use of the computer is
permitted.
The other issues of using information consist of ethical reasoning. This includes use of email, internet,
whistleblowing on a company and many more. One aspect in particular MegaMedia should be well
aware of is the Internet. Majority of organistations have a code of conduct in relation to the internet,
including;
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
 What websites are appropriate
 What should employees be doing during work hours
 Example, Using social media sites, Looking for Gig tickets
These activities specified and many more are not acceptable in a company that includes these
guidelines and decrease work activity. Could also result in termination of employees and police action
against the company in question.
Companies such as MegaMedia require a code of practice. This is because of the potential risks in
place regarding the employees whom need guidelines prior to sending or receiving emails. These are
needed to prevent documents, language and information being released without authorisation. The
dangers that are in question are concerned with being unprofessional with colleagues, large quantities
of meaningless emails and a whole host of other offences. Should MegaMedia fail to build this
structure and put in place they could be found to be breaching the Data Protection Act 1998,
resulting in a criminal investigation.
Whistleblowing is another ethical issue that involves employees raising concerns about the company,
whether it is internally or externally. The concerns raised could entail crime, bad business practices,
danger or other risk that could potential cause problems to customers, colleagues and the public.
Finally, the use of emailsis what needs to be considered by companies, particularly in the case of the
employees. Threatening, harassing and distressing emails are banned in the company in question
along with spamming and large quantities of unsolicited emails.
Organisational issues
Security of Information is valuable to companies and is a real operational issue. It is because the
information is often not protected as much as it should. Management is responsible to specify who can
look at and update information. Commonly the IT department is responsible for security of information.
Companies can keep their information secure by putting certain defenses in place, these include;
 Level of access
 Encryption
 Passwords
 Account locking
 Low-level Firewalls
Organisations need to safeguard against physical data loss or processing problems. Backing up files
can protect against unintentional loss of user data, database corruption, hardware failures, and even
natural disasters. IT Departments should practise data recovery and restores constantly as it is
commonly said that “if you don’t have backups, you don’t have data” which exemplifies the
importance of backups.
Health and Safety is one aspect that is in all modern day corporations and companies as they have to
abide by the Health and Safety at work Act of 1974. The act consists of regulations for using, and
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
the position of screens and monitors. Including how far away you are from your work station.
Computer users are entitled to eye tests and users are permitted regular breaks away from the
computer. All computer appliances should be put through a PAT (Portable Appliance Testing) test. A
company such as MegaMedia can end up in court facing lawsuits as a result of failure to abide by this
Act. A simple example is water on a computer desk; it is under the Act because if the water were to
spill, information is being put at risk.
Disaster Recovery is the procedure that MegaMedia and indeed all companies must have in the
event of a serious incident. The plan covers backups and health and safety and the incidents could
include natural disasters, computer failure, cyber-attacks and hacking. E.g. the twin towers attack
prompted disaster recovery plans to preserve the data held and evacuate employees safely. For
MegaMedia this could be having backup systems in place for a disaster or having multiple rooms to
store data, should one of the rooms be un approachable.
References used:
 http://www.studymode.com/essays/Explain-The-Legal-Ethical-And-
Operational-1851816.html
 http://www.teach-ict.com/btec/level%203/unit_3/btec_level3_unit3.html
 http://www.slideshare.net/mrcox/btec-national-in-ict-unit-3-operational-issues
 https://www.nibusinessinfo.co.uk/content/sample-acceptable-internet-use-
policy
M2 assess how issues related to the use of information affectan organisation
You will show how each of these issues may affect their enterprise (or based on a case study).
Refer to Poster
References used:
P4 describe the features and functions of informationsystems
You could describe the features of information systems and explain which one they would use in their mini-
enterprise, and why.
Refer to PowerPoint
References used:
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
Suggested Assignment2 – ManagementInformation
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
P5 identify the information systems usedin a specified organisation
You could describe the features of information systems and explain which one they would use in their mini-
enterprise, and why.
You write here
References
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
P6 selectinformation to supporta business decision-making process
You should explain how they decided what data they would require to develop the required management
information and how they checked it for accuracy (see gathering and analysing information in the unit
content).
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
D2 justify the information selectedto supporta business decision-making
process.
You will need to justify the decisions made in P6.
You write here
References used:
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
P7 use IT tools to produce managementinformation.
Management reports will provide the evidence
Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]
M3 generate valid,accurate and usefulinformation.
Your reports should be valid, accurate and relevant, ie show useful information that is, importantly, fit for
purpose.

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Unit 3 Backup

  • 1. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] BTEC L3 ICT Unit 3 Information Systems
  • 2. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Learning Objectives for this unit: LO1: Understand how organisations use business information Types of information: qualitative, quantitative; primary; secondary Purposes of information: operational support eg monitoring and controlling activity; analysis eg to identify patterns or trends; decision making (operational, tactical, strategic); gaining commercial advantage Sources of information: internal eg financial, personnel, marketing, purchasing, sales, manufacturing, administration; external eg government, trade groupings, commercially provided, databases, research; reliability of data sources Good information: characteristics eg valid, reliable, timely, fit-for-purpose, accessible, cost-effective, sufficiently accurate, relevant, having the right level of detail, from a source in which the user has confidence, understandable by the user Business functional areas: eg sales, purchasing, manufacturing, marketing, finance, personnel, administration Information flows: internal information flows; information flows to external bodies; information flow diagrams LO2: Understand the issues related to use of information Legal issues: relevant data protection legislation eg Data Protection Act 1998, Freedom of Information Act 2000; other relevant legislation eg Computer Misuse Act 1990 Ethical issues: codes of practice eg on use of email, internet; ‘whistleblowing’; organisational policies; information ownership Operational issues: security of information; backups; health and safety; organisational policies; business continuance plans; costs eg additional resources required, cost of development; impact of increasing sophistication of systems eg more trained personnel, more complex software LO3: Know the features and functions of information systems Features of information systems: data; people; hardware; software; telecommunications Functions of information systems: input; storage; processing; output; control and feedback loops; closed and open systems Transformation of data into information: distinction between data and information; collection, storage, processing, manipulation, retrieval, presentation Types of information system: management information systems; others eg marketing (sales performance, competitors etc), financial (financial costs, investment returns etc), human resources (HR) (staffing, professional development etc) Management information systems (MIS): features; benefits; effectiveness criteria eg accuracy, sustainability, response times, confidence LO4: Be able to use IT tools to produce management information Tools: software eg databases, artificial intelligence and expert systems, predictive modelling; internet; others eg data mining systems Gather information: define the requirement; establish sources of information; define other factors to be considered eg constraints; select information Analyse information: quality eg validity, accuracy, currency, relevance; identify alternatives Management information: reports eg sales report, college enrolment statistics, marketing analysis (brick versus click)
  • 3. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Grading criteria:
  • 4. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Assignment1 – Scenario MegaMedia is a medium sized British company who specialise in the purchasing and selling of a variety of media devices including memory sticks, iPads, external hard drives and a range of different tablets. The way the business currently sells products is through a combination of online orders from their website or in store purchases at one of their three shops based in London. They rely on efficient suppliers to ensure they always have their products in stock in a range of sizes and colours. Like any business they have all of the key functional areas and rely on reports on competitors to ensure they are selling their products for the best possible price. All reports are generated by the administration team but they have to be sent for checking to the CEO, she then sends these on to the relevant departments when she has had the time to look at them.
  • 5. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Assignment 1 – How Our Business Works P1 Explain how organisations use information You should touch on much of the content outlined in the unit content for LO1, presenting the information in a logical sequence, eg what is information ie types, sources, characteristics (may require some theoretical content), where is it used (functional areas, purposes), how is it communicated (information flow). At least three internal and two external functional areas should be included to provide sufficient complexity. LO1 Content: Types of information: qualitative, quantitative; primary; secondary Purposes of information: operational support eg monitoring and controlling activity; analysis eg to identify patterns or trends; decision making (operational, tactical, strategic); gaining commercial advantage Sources of information: internal eg financial, personnel, marketing, purchasing, sales, manufacturing, administration; external eg government, trade groupings, commercially provided, databases, research; reliability of data sources Business functional areas: eg sales, purchasing, manufacturing, marketing, finance, personnel, administration Information flows: internal information flows; information flows to external bodies; information flow diagrams Types of information Qualitative information is subjective, personal and opinionated. Hard to analyse as some information might not be factual. Commonly referred to as ‘qualativiate research’ is not found in numerical form, more common would be surveys, questionnaires, diary accounts and instructive interviews. This information is used to allow organisations like Mega Media to find out personal information, something that facts and figures fail to show. Companies such as Mega Media would not necessarily need to use qualitative information all the time but they could when it comes to interviewing for staff recruitment. This is due to the nature of unstructured interviews playing to the advantage of the company as it should be personal and opinionated to recruit staff. Mega Media would first gather quantitative information through applications, and the successful candidate would have subjective, opinionated questions given to them, further allowing the company to see if the candidates have good communication skills. Quantitative information is factual and commonly number based. It is gathered through reliable and accurate sources. Mega Media would need to use quantitative information to collect data regarding the stores employees, stock and products. Primary information is specifically collected by individuals and first hand by companies. The information collected could be a variety of things including information regarding products and their sales figures, and as the data is collected first hand it is 100% reliable and accurate. Secondary information is acquired through sources and more directly taken. An example of this is to collect information regarding product storage from a separate branch or company, which could be unreliable. It is data that could be unreliable or reliable as it has not directly been collected by the company. Therefore when using secondary information it’s extremely important that Mega Media don’t rely purely on it. Purposes of information Mega Media can use information for operational support. It can be used to control and monitor activity regarding the staff, check up on what’s going on, whether they should be doing that are actually working and what areas are they working in. for instance, primary information can be used to monitor in the form of 24 hour cctv which Mega Media has installed in their store. The information gathered for the company can be used to check on employees.
  • 6. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Mega Media can further use analysis of information within their company to identify trends of patterns emerging and if necessary change the style of the specific topic to which the information was collected. An example of this is sales products. The company can get the statistics for the list of sales for particular products and then look over them to decide a plan of action, seeing if it has sold well or not sold well. This is important for companies such as Mega Media because it allows them to monitor the performance of staff wok or product sales and make decisions that could be beneficial for their customers. The more information and data that is analysed, the easier the decisions the company has to make regarding financial situations. Decision making is essential to businesses as decisions can be made at operation, tactical and strategic levels. An operational decision is one that is made by a manager who runs day to day operations. A prime example of an operational decision might be to stop selling certain products to certain shop as a result of poor selling. As this is a day to day decision and would use stores shock he would not need to consult his district manager about it. Tactical decisions however would need to be introduced by someone with more authority such as the district manager and a long term decision would be made from head office by a senior manager Gaining commercial advantage over a competitor is very important for a local business such as Mega Media as if they were competing with another business and drove them to bankruptcy they would acquire that businesses products as a cheap rate, further making a profit. This will gain the customers form that company which will bring massive increase in revenue to Mega Media Sources of information Internal information Internal information is generated within businesses such as Mega Media and is considered to be primary information. Firstly Mega Media use financial information to observe how the business is doing in terms of money, whether the business experiencing loss or gains. The information that is extracted consists of price for terms, price for staff, costs, sales, stock and taxes. The human resources department or personnel hold bank details and current information for its employees. This is in order to give the correct pay to the staff or if they hold information regarding friends outside the company in their contract. It is very important that the company have up to date information on the employees for health and safety reasons. Mega Media must further check the employee’s qualifications to ensure they fit the job requirements. Marketing information is used to spot which products r services are most successful to businesses. Information can be collected from different departments such as sales to promote and advertise certain products based purely on sales rates. External information Examples of external information sources are: government, trade groupings, commercially provided information, database and research. Government information is definitely considered reliable and companies need to use this reliable information to run the business efficiently. An example would be if a company has thousands of employees paid below minimum wage outlined by the government, the company in question must increase their hourly wages for the staff.
  • 7. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Commercially provided information us used by many companies in order to help give advice when it comes to decision making. This is commonly used in the form of primary information but also secondary can be used. For example, a marketing group might use information about sales of a particularly product that have or haven’t sold well, helping them make a decision regarding what product’s need to be strongly advertised. Companies used research to help them increase sales and interest in their business. Mega Media can research information about a product on their database.Certian companies such as Mega Media will pay to access public and commercial databases, offering plenty of information. Business functional areas Sales departments are responsible for communication between customers and gaining new customers. The communication collected from customers will they be distributed to the manufacturing department helping that department understand what to make for the customers. However as Mega Media is a distributing companies not a manufacturing one, sale will be of more importance. Sales will also need to send information they gain to the finance department in order for finance to communicate with administration. The purchasing department is relied on for buying goods, material and services required to run a successful business. This department will work for Mega Media to find the best and most suitable products needed. An example is a list of materials needed will be sent in order to produce the finished product that the company sells. The personnel department keeps records of staff, having detailed reports of addresses, by the data protection act in order to keep running the business. This department communicate with all departments when new employees are added to the business to offer contracts and ensure all claimed qualifications are accurate. However, the main department they communicate with is the financial department. References used:
  • 8. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] M1 illustrate the information flow between differentfunctionalareas The addition of a clear, detailed, comprehensive information flow diagram will cover M1. Key Marketing and Personnel Marketingand Personnel informationisof massive importance toacompanysuch as Mega Media.Thisis because Personnelwill directthe strategyforthe Marketingteamtoadvertise andpromote theirproducts.These strategiesare usedtoincrease profitonproductsthat maybe haven’tsoldaswell asothers. Personnel Informationcanbe gatheredtoletcompaniesincluding MegaMediaknow whothe strongestmarketersare. Finance and Purchasing The purchasingdepartmentwill needtoknow the budgetinregardstopurchasingnew andcurrent stock. Finance will informthe purchasingdepartmentabouthow muchmoneyisinthe budgetandwhichproductsto spendhighandlowon. Thisisimportantfor MegaMedia because withnoguidelines,purchasingwillhave no clue how much theycan spend. Finance and Personnel The linkbetweenfinance andpersonnel isthe employeesandtheir,hourly,weeklyandyearlysalaries.Thisisdo the correct pay isgivenout to employees,preventinganycourtcases.Finance will alsoinformPersonnelwhether or not Mega Mediawill be allowedtohire new employeesorif theyhave toomanyemployeesandneedto produce staff cutbacks. Finance and Marketing Marketingisthe creative side,drivenbypassionforthe businessandusesthatinorderto successfullypromote the business.Finance bycontrastfocusesonseeingbenefits. MegaMediawill needtohave excellent communicationbetweenthe twodepartmentstoachieve the goalsMegaMediaaspire to,e.g.profit. Salesand Finance Salesneedtocommunicate withthe Finance departmentinformingthemaboutthe amountof profitmade daily, weeklyandmonthly.Finance needtoensure thatthe salesteamare reachingthe requiredtargetorprofit. Mega Mediawill needtohave fullycommunicatingsalesandfinance departmentinordertoassure the mostprofit. Salesand Marketing Marketingisimportantto the salesdepartmentbecause amarketingstrategywouldneedtobe explainedtothe Salesdepartmentinordertosell the productsaccordingto the strategy.Anexample isCRM(Customer RelationshipsManagement) datawhichisamarketingstrategyallowingthe salesteamtounderstandwhattheir customersare most interestedinbyviewingtheiractions/behaviour. Salesand Administration Administrationcommunicateswiththe Salesdepartmenthow tomanage the ordersof stock and helptoimprove fieldsales,doingthisbydealingwithcustomerqueries.The role of aSalesAdministratoristoprocessorders generatedbysalesrepresentativesandcheckthe productdetailsforthe customersbenefit. Salesand Personnel Personnel communicate toSales,listsof oldandnew clientstowhomtheycan sell productstoo.Personnel furtherassistthe salesstrategybycollectinginformationfromcustomersregardinglikedanddislikedproducts. Administrationand Personnel These departmentsare verysimilaranduse thisto have excellentcommunicationbetweenone anotherrelating to data processingandfile maintenance.While the Administrationin MegaMediawill focusonthe business
  • 9. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] recordsand statistics,the Personnel/HumanResourcesdepartmentwill focusonupdatingpayrollandemployee paperwork. Administrationand Purchasing Administratorscommunicate tothe purchasingdepartmentinregardstothe buyingof productsand servicesfor organisations.The Purchasingdepartmentspendmuchmore of theirtime usingcomputersandcataloguesand Administrationrequire contactsbothinternallyandexternally. Administrationand Finance AdministrationandFinance providesfacilitiesoperatingdepartmentswithsharedservices that.These consistof:  Budget  Informationtechnologyhardware support  Finance  Contract administration
  • 10. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] D1 explain how an organisationcould improvethe quality of its business information You should demonstrate an understanding of the characteristics of good information as outlined in the unit content. Learners should support the theory with appropriate examples. Mega Media could improve the quality of their information through multiple ways and ideas. The first of those being the effectiveness of information. This is important to Mega Media because this would allow employees of the business to work more efficiently. The information handed over should be checked by employees before being transferred to senior management as the irrelevant, useless information would be eradicated, with only the important information reaching senior management. Another method to increase the effectiveness of information is for the department whom want certain information would type a short request to References used:
  • 11. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] P2 discuss the characteristics of good information You should touch on much of the content outlined in the unit content for LO1, presenting the information in a logical sequence, e.g. what is information i.e. types, sources, characteristics (may require some theoretical content), where is it used (functional areas, purposes), how is it communicated (information flow). At least three internal and two external functional areas should be included to provide sufficient complexity. LO1 Content: Good information: characteristics eg valid, reliable, timely, fit-for-purpose, accessible, cost-effective, sufficiently accurate, relevant, having the right level of detail, from a source in which the user has confidence, understandable by the user Customer Information (bank details. personal details) Customer information regards the information held by an organisation about their customers. An example of the information held by a company such as Mega Media is bank details e.g. debit card information and personal data. The personal data kept regards names, addresses, phone numbers etc. This data must be kept up-to-date and remain secure in order to adhere to the Data Protection Act 1998 (legislation for the storage and handling of data/information). The information must be kept accurate and up-to-date as of this Act; failure to comply would result in legal action, fines and prosecution for the company and its employees. Other reasons to keep the data accurate and valid are so the company can advertise specific products to their customers based on the information regarding the customers the company have. A company that do this is Amazon, as they take in the details of what customers have looked at, allowing them to advertise products more suited to the customers acquired taste. Overall keeping reliable, accurate and up-to-date information of your (Mega Media) customers will have better implications on the company in relation to profits and trustworthiness. If the information Mega Media receives from their customers isn’t ‘good information’ then Mega Media could not trust the information, resulting in the information being invalid and inaccurate. Further, the information presented could be out-of-date, giving the Mega Media unreliable results to process the data. The information gathered must be cost- effective otherwise it would result in costing Mega Media in profits, resulting in a waste of resources. One aspect of collecting data and processing it into information comes with secondary data, data collected by a second company. This could be used to find out information regarding the rival companies, however, in order for this to happen Mega Media must have the confidence in their sources. Having confidence in a source shows the source is reliable and used commonly by various different businesses, allowing the information reviewed to be reliable. The information distributed to Mega Media must be fit-for-purpose, requiring a certain level of detail in order to become relevant. An example of this would be Mega Media looking at the local population within a certain area of the business, viewing the amount of potential customers and how to advertise to them. Product Information (Inventory Information) Product Information is of crucial importance to a company as it can depend on the quantity and quality of products received from Inventory. Inventory will need to deliver information to senior management at Mega Media regarding product availability, stock and information. This information must be valid, accurate and to the correct level of detail, should these criteria not be met, bad information will be transferred about Mega Media’s inventory, resulting in poor
  • 12. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] communication and potentially a loss of business. Product stock is important and the information regarding product stock must be communicated correctly in order for senior management to understand what products need to be refreshed in stock. The information needs to be up-to-date constantly as of the Data Protection Act and must be presented in the correct level of detail to maintain effective communication between departments. In regards to the sourcing of this information, the data collected and processed into information wouldn’t be too high in costs as it would be internal, primary sourcing. The reasoning behind this information being cheaper to view is due to the logs created by Inventory, showing information of their activity regarding products, including how they have been brought, sold or and distributed: and the product stock information must be kept up-to-date with even the smallest changes shown e.g. the number of units sold, the number of units distributed from the warehouse to the stores. Furthermore, this allows the logs kept by Inventory to be easily accessible to Mega Media staff should the information need changing ensuring it is fit-for- purpose. Staff information Staff information is very important in a company such as Mega Media because they are the source of the information that is gathered by the company, meaning it is internal information. The staffs at Mega Media or indeed any company has the responsibility inform their superiors regarding any personal detail changes or contract disputes. In doing this the information is kept up-to-date and fit-for-purpose. The Data Protection Act reads that out-of-date information should not kept by an organisation, meaning that any personal details such as home and email addresses must be updated whenever they change, making the information kept by the company accurate and valid. The information that would be processed regarding employees would be listed onto a record e.g. a database. Information could also be transferred over the companies Intranet to higher listed members of staff e.g. senior management. As the information would be collected internally, the cost for this information would not amount to a figure. Staff information can also help assist in the enrolment of new employees through primary data collected through qualitative information. This information would be gathered through interview form, adding the personal touch to employment, thus adding more quality to information at Mega Media. Internal Information Internal information is gathered first hand by a business for example Mega Media, and can be in form of emails, memos, notices or data. The data collected inside the company is extracted by senior members of staff, subsequently processed into information, ready for analysis. Internal information is used by a company in order to achieve the best possible results as the quantitative information collected is reliable and accurate as it is taken first hand. The information collected internally for Mega Media is ‘good information’. . The majority of internal information comes from Managers analysing information, and subsequently making informed decisions from the information.
  • 13. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] External Information External information by contrast is information collected by a second party/company; it is collected outside the business asking for the information (secondary data). Now this information can lack in level of detail and accuracy on occasions as the documentation of results could be incorrect with the company having no way of knowing. However, the information collected would remain reliable if Mega Media choose a reliable company to gather their results. One reason to having secondary data collected is to observe what local competition Mega Media face and how to combat the competition. Mega Media would need to be made aware of all external factors including weather conditions; particularly surrounding the warehouse. This is because the winter could affect the way products are distributed and sold e.g. snowy, icy conditions could result road closure, preventing the distribution of products to stores. References used: http://www.tutor2u.net/business/reference/the-difference-between-data-and-information http://www.contentedwriter.com/characteristics-of-good-information/ http://www.contentedwriter.com/what-is-good-information/
  • 14. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] P3 explain the issues related to the use of information You should include at least two items from each of the three issues outlined in the unit content. LO2 Content: Legal issues: relevant data protection legislation e.g. Data Protection Act 1998, Freedom of Information Act 2000; other relevant legislation e.g. Computer Misuse Act 1990 Ethical issues: codes of practice e.g. on use of email, internet; ‘whistleblowing’; organisational policies; information ownership Operational issues: security of information; backups; health and safety; organisational policies; business continuance plans; costs e.g. additional resources required, cost of development; impact of increasing sophistication of systems e.g. more trained personnel, more complex software Legal issues As businesses grow, more and more information is gained, and it is of vital importance that the information held is under the laws that are in place. Companies such as MegaMedia need to abide by laws such as the Data Protection Act 1998. This is a piece of law that is overseen by the Information Commissioners Office, and the law is intended to protect and give rights to Data subjects (companies) and Data users. The Data Protection Act has 8 regulations that companies and corporations must abide by and they are; 1. Fairly and Lawfully 2. Processed for Limited purposes 3. Adequate, relevant and excessive 4. Accurate 5. Not kept longer than necessary 6. Processed accordance with the data subjects rights 7. Secure 8. Not transferred other countries without adequate protection They a split into 2 prominent categories, Data Subjects and Data Users. Data subjects focuses on the company aspect of the Act and Data Users however is personal data which focuses on the users of the company. Companies such as MegaMedia could use this act to their advantage and disadvantage, the advantage being distributing customer information to increase revenue through the customers’ consent and the big disadvantage being distributing data without authorisation and permission. This is a big issue with companies whom are handing out information with no authorisation to do so. An example of this is certain supermarket chains that distribute data of particular customer information across their company to increase revenue and marketing without even consulting the customers whose information is being used and is something that MegaMedia should avoid doing. MegaMedia should also look out for other laws that raise issues. One of which is the Computer Misuse Act 1990, which relates more to the e-commerce companies and corporations and is designed to reduce hacking and unauthorised access to privileged information. The Computer Misuse Act covers three main points; 1. Unauthorised access to computer material 2. Unauthorised access with the intent to assist in or facilitate a serious crime 3. Unauthorised modification of computer material such as worms or virus’
  • 15. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] This affects the company because if customer information is accessed by a hacker then the company can be held liable for failing to stop unauthorized access into their systems. So if MegaMedia were to fail to obey one of these acts, serious and legal implications would follow. The final aspect of legislation MegaMedia should be concerned with is the Freedom of Information Act 2000. This act gives public access to information that is stored by;  Public services,  Local government,  Schools, colleges, universities,  Health care services.  Police, committees This act can affect companies such as MegaMedia because failure to comply will breach the act, resulting in fines, legal action and imprisonment. However, as MegaMedia is a private business and does not receive any tax payer funding and therefore does not fall under the jurisdiction of the Freedom of Information Act. E-commerce directive requires the business to display the name of your business, company registration number, geographical address, VAT registration number and contact information e.g. email address, telephone number etc. You (as a website) must explain the terms and conditions of the websites use must provide clear information regarding price, tax and delivery to buyers and must acknowledge all orders placed. The Consumer Credit Act and Distance Selling Act regulate all aspects of financial transactions between consumers and companies including MegaMedia. It helps protect consumers from being miss sold products or services and brings greater regulation to companies trading in the financial and credit industries, such as licensing and a strict advertising protocol for specific sectors of the financial markets. Also the website must send a written form of confirmation regarding purchases. Also, as part of the regulation the company must provide a “cooling off” period for customers meaning should they wish to cancel their order or return it they can. This particular law applies to MegaMedia in many ways as there are required Ethical Issues Codes of Practice Companies and corporations commonly have a code of practice explain the policies and procedures employees must follow. A code of practice will determine the extent to which use of the computer is permitted. The other issues of using information consist of ethical reasoning. This includes use of email, internet, whistleblowing on a company and many more. One aspect in particular MegaMedia should be well aware of is the Internet. Majority of organistations have a code of conduct in relation to the internet, including;
  • 16. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015]  What websites are appropriate  What should employees be doing during work hours  Example, Using social media sites, Looking for Gig tickets These activities specified and many more are not acceptable in a company that includes these guidelines and decrease work activity. Could also result in termination of employees and police action against the company in question. Companies such as MegaMedia require a code of practice. This is because of the potential risks in place regarding the employees whom need guidelines prior to sending or receiving emails. These are needed to prevent documents, language and information being released without authorisation. The dangers that are in question are concerned with being unprofessional with colleagues, large quantities of meaningless emails and a whole host of other offences. Should MegaMedia fail to build this structure and put in place they could be found to be breaching the Data Protection Act 1998, resulting in a criminal investigation. Whistleblowing is another ethical issue that involves employees raising concerns about the company, whether it is internally or externally. The concerns raised could entail crime, bad business practices, danger or other risk that could potential cause problems to customers, colleagues and the public. Finally, the use of emailsis what needs to be considered by companies, particularly in the case of the employees. Threatening, harassing and distressing emails are banned in the company in question along with spamming and large quantities of unsolicited emails. Organisational issues Security of Information is valuable to companies and is a real operational issue. It is because the information is often not protected as much as it should. Management is responsible to specify who can look at and update information. Commonly the IT department is responsible for security of information. Companies can keep their information secure by putting certain defenses in place, these include;  Level of access  Encryption  Passwords  Account locking  Low-level Firewalls Organisations need to safeguard against physical data loss or processing problems. Backing up files can protect against unintentional loss of user data, database corruption, hardware failures, and even natural disasters. IT Departments should practise data recovery and restores constantly as it is commonly said that “if you don’t have backups, you don’t have data” which exemplifies the importance of backups. Health and Safety is one aspect that is in all modern day corporations and companies as they have to abide by the Health and Safety at work Act of 1974. The act consists of regulations for using, and
  • 17. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] the position of screens and monitors. Including how far away you are from your work station. Computer users are entitled to eye tests and users are permitted regular breaks away from the computer. All computer appliances should be put through a PAT (Portable Appliance Testing) test. A company such as MegaMedia can end up in court facing lawsuits as a result of failure to abide by this Act. A simple example is water on a computer desk; it is under the Act because if the water were to spill, information is being put at risk. Disaster Recovery is the procedure that MegaMedia and indeed all companies must have in the event of a serious incident. The plan covers backups and health and safety and the incidents could include natural disasters, computer failure, cyber-attacks and hacking. E.g. the twin towers attack prompted disaster recovery plans to preserve the data held and evacuate employees safely. For MegaMedia this could be having backup systems in place for a disaster or having multiple rooms to store data, should one of the rooms be un approachable. References used:  http://www.studymode.com/essays/Explain-The-Legal-Ethical-And- Operational-1851816.html  http://www.teach-ict.com/btec/level%203/unit_3/btec_level3_unit3.html  http://www.slideshare.net/mrcox/btec-national-in-ict-unit-3-operational-issues  https://www.nibusinessinfo.co.uk/content/sample-acceptable-internet-use- policy M2 assess how issues related to the use of information affectan organisation You will show how each of these issues may affect their enterprise (or based on a case study). Refer to Poster References used: P4 describe the features and functions of informationsystems You could describe the features of information systems and explain which one they would use in their mini- enterprise, and why. Refer to PowerPoint References used:
  • 18. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] Suggested Assignment2 – ManagementInformation
  • 19. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] P5 identify the information systems usedin a specified organisation You could describe the features of information systems and explain which one they would use in their mini- enterprise, and why. You write here References
  • 20. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] P6 selectinformation to supporta business decision-making process You should explain how they decided what data they would require to develop the required management information and how they checked it for accuracy (see gathering and analysing information in the unit content).
  • 21. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] D2 justify the information selectedto supporta business decision-making process. You will need to justify the decisions made in P6. You write here References used:
  • 22. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] P7 use IT tools to produce managementinformation. Management reports will provide the evidence
  • 23. Sam Davies-Batt|BTEC Unit 3 InformationSystems|Nobel School |v1.1 [sept2015] M3 generate valid,accurate and usefulinformation. Your reports should be valid, accurate and relevant, ie show useful information that is, importantly, fit for purpose.