Evaluation criteria

The advance of Information Technology means that a business must continually review the systems it uses to receive, use, store, distribute, and communicate information. The effectiveness of an information processing system in meeting the needs of a firm can be judged by asking the following questions:

Is it fit for its purpose? A good information system should do the job for which it is intended. If a business regularly needs to analyse large amounts of data, then a manual system would appear to be too slow and cumbersome, especially if the size of the firm has grown over time and its information processing requirements have expanded accordingly. A powerful computer can store millions of data observations and perform quick calculations using statistical techniques to analyse trends and arithmetic means, which can then be interpreted and used in decision-making by business managers. An organisation that needs a computer simply for writing business letters would not need a machine with a Pentium Processor and expensive CAD software. On the other hand, to run heavyweight graphics-type applications, a more powerful machine would be essential.

Is it good value for money? Before implementing change, a business must weigh up the cost and benefits of an information processing system. Costs will include:

· Computer hardware and software

· Installation costs

· Maintenance

· Staff training

· Labour costs

· Power costs

· Insurance

· Cost of providing safe and healthy working environment

Although manual processing may now appear less attractive than electronic systems, a business must still ask whether the efficiency gains in terms of speed and improved accuracy are enough to justify the expense. A small shop with minimal information needs would be ill-advised to spend thousands of pounds on the very latest Pentium machines and business software applications. An entry-level machine and simple, bundled business software costing a little more than £1,000 at 1995 prices would be more than adequate.

Is it secure? A lot of information held by businesses, such as production costs, product developments, and personnel records, is sensitive and confidential. A good information processing system should ensure that information remains free of error or corruption and safe from an unauthorised use. If necessary, filing cabinets should be locked; office staff should put away papers and computer disks at night, and computers should be protected by the use of passwords. A business could be open to fraud if unauthorised personnel were able to gain access to the records. It could also encounter trading difficulties if valuable information were lost due to fire, flood, theft, or malicious damage. Many businesses keep copies of important files, either paper-based or on computer disk, at different locations to minimise the risk of loss or damage. Others have been forced to devote more resources to security, in order to prevent systems being accessed by computer hackers. Firms also need to consider how well their information processing system meets the requirements of the 1984 Data Protection Act. For businesses using computer networks, this might mean that hardware and software require password protection, or that computers are only available for access in secure rooms. Access to computers by hackers using modems is another risk that big firms must consider.

Is it easy to use? An information processing system will be ineffective if staff cannot understand how to access and use it. For example, lists of files and where to find them need to be produced and regularly updated. Filing cabinets should be labelled. Security procedures need to be understood and adhered to. Users will also need to be aware of which documents to use in order to file and distribute information. If a business uses electronic processing, will staff be able to use the new hardware and software? What forms of training are required? Or will so much training be needed that it will be cheaper in the long run to keep the old systems? In recent years, computer software, particularly Windows applications, have become much easier to use, because applications are based on ‘user-friendly’ pictures or icons and point-and-click operation using a mouse. This has made training easier for most firms. However, like any other equipment, Information Technology can be poorly chosen for the job and be badly used. Mismanagement of Information Technology can mean that the efficiency gains in using new technology are lost. Information Technology on its own does not guarantee that a business will be well run and managed; sound management and an understanding of how to introduce new technology and use it to best effect are also required.

Дата добавления: 2015-12-08