Element 2.4 - Analyse Information Processing in a Business Organisation

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You may notice that many assignments are written in response to a given brief. These should be available soon.

 
Planning

It is important to make sure that the planning is used in the completion of this assignment, however I do have plenty of time in which to do this assignment in. The deadline for the assignment is September, after the summer holidays.

The plan should take the following format:

Start assignment:                                                                                   28th June

1. Research into systems of information processing                                 Deadline 5th August

2. Analyse the information processing systems used at Norwich Union.   Deadline 10th August

3. Research into Data Protection Act.                                                     Deadline 15th August

4. How does the Data Protection Act effect peoples' rights to
access information stored about them.                                                     Deadline 20th August

5. What effects should the Data Protection Act have on
Norwich Union.                                                                                      Deadline 25th August

6. Evaluation on report and assignment.                                                   Deadline 1st September

This assignment plan does look quite straightforward and offers a little time for any adjustments that may be needed. I shall monitor the plan by simply writing beside the task in hand. I should also have plenty of room at the bottom of the page if needed.

Changing Conceptions of Information Systems

A shareholders report from Norwich Union

Behind the growing strategic uses of information systems is a changing conception of the role of information in organisations. Organisations now consider information a resource, as useful as capital and labour. This has not always been the case.

Information as a "Paper Dragon"

In the past, information was often considered a necessary evil associated with the bureaucracy of designing, manufacturing and distributing of a product or service. Information was a paper dragon that could potentially strangle a business and prevent it from doing its real objectives. Information systems of the 1950's focused on reducing the cost of routine paper processing, especially in accounting. The first information systems were semi-automatic cheque-processing , issuing, and canceling machines - so called electronic accounting machines (EAM). The term electronic data processing (EDP) dates from this period.

Information for general support

By the 1960's, organisations started viewing information differently, recognising that information could be used for general management support. The information systems of the 1960's and 70's were frequently called management information systems (MIS) and were thought of as an information factory churning out reports on weekly production, monthly financial information, stock records, accounts receivable, accounts payable etc. To perform these tasks, organisations acquired general purpose computing equipment that could support many functions rather than simply processing cheques.

Information for management

In the 1970's and early 80's information and the systems that collected, stored, and processed it were seen as providing fine-tuned, special-purpose, customised management control over the organisation. The information systems that emerged during this period were called decision support systems (DSS) and executive support systems (ESS). Their purpose was to improve and speed up the decision making process of specific managers and executives in a broad range of problems.

Information as a strategic resource

By the mid 1980's the conception of information changed again. Information has since then been regarded as a strategic resource, a potential source of competitive advantage, or a strategic weapon to defeat and frustrate the competition. These changing conceptions of information reflect advances in strategic planning and theory.

In the modern office the main aim is to keep as much information on the computer system as possible compared to in files and on desks in a paper form. Obviously there will always be a need to keep hard copies of documents due to the fact that computers are susceptible to viruses and general problems, resulting in loss of data.

However, there are a number of reasons of how holding files on computer can be an advantage compared to copies on paper. When information in the form of documents are stored on a large mainframe computer, like the ones used in many large businesses, the information can be viewed using any of the terminals. This means for a business which has various information on its customers from a physically large geographical area, then information stored on the computer can be looked at from any terminal be that part of the mainframe or through a Wide Area Network (WAN). This has advantages over the real paper documents because it allows staff to see the files without the need for cluttering up their desks. A large business which has offices scattered across the country can have the documents stored in a secure place and have the documents reproduced onto the computer system through the use of relatively inexpensive scanners. This would allow any office connected to the network to see the information without having to wait for the documents to be posted or sent otherwise.

Keeping a customers personal details all in one place allows the staff of a business to know exactly where to look for all the customers details. However, many businesses will have separate departments, sales for when the customers receives some product or service, finance department to request customer for payment and receive payment, and many more which deal directly with the customer. It would therefore be useful for the company to have the data stored on their computer system so that each necessary department will know exactly what involvement the customer has had with the business and therefore know exactly how to deal with the customer. For example a customer which has not paid their bill on time would usually get some kind of letter demanding payment, but if that customer has in the past spent vast amounts of money on products you may want to rephrase the letter requesting payment, so that the customer is not upset by the matter.

As the competition in the financial sector has intensified over the year Norwich Union has seen the need for improvement in technology to offer the customer a quality of service that is exceeding service expectations. At Norwich Union a Vision Business Unit has been set up to provide customers with higher standards of service. The unit is helping Norwich Union move away from the cluttered and complicated paper based business environment towards a highly computerised system where information is at the fingertips of any trained operator.

The Vision Office that the Vision Business Unit has created consists of image technology whereby all paperwork coming into the office are scanned and put onto the computer system. Once the information has been scanned-in, anyone with access to the system can view the paperwork without actually having to touch it physically. The system is able to automate some administration which means therefore that fewer staff are being used in administration instead being used to assist the customer directly.

Norwich Union have a number of trained operators to operate the Vision Office, which can access and alter files connected with the client at hand. This means that because the operators have access to all of the information, so they can make informed decisions assisting the customer with any problems.

The Vision Office has the potential to become automated further by the use of voice activated technology and possible video phone conferencing which can improve speed and enhance the service provided for customers.

Overall the system is very impressive and will undoubtedly offer the customer an excellent quality service. The offices should be much neater without the need for any paper documents and therefore be more environmentally pleasing for the staff. Files will be much more accessible and therefore customers should have their questions answered in much shorter times. This will mean that staff can deal with more enquiries in a day than in the past, which should hopefully mean more customers overall.

In my opinion this is the way forward for all businesses, as this means the service will be cheaper to provide and the quality will be at its highest compared to other competitors.

Data Protection Act and its effect on personal rights to access the information

The Data Protection Act 1984 gives right to individuals who have information stored about them on computer. The act did not apply to information stored on a paper format, therefore now that Norwich Union has become computerised having all customers' information stored on computer, the customers have rights detailed in the Data Protection Act 1984.

Individuals may find out what information is stored on computers about themselves, challenge it and if appropriate claim compensation in special circumstances. The Data Protection Act places obligations on the people which record and use personal data.

All personal information recorded on a computer system must be kept up-to-date and be accurate. It must not be held longer than is necessary for which purpose it was originally intended. Information should be guarded by a proper use of security

The Data Protection Act 1984 states that individuals have a right to see what information is stored about them on computer. However, the data holder has the right to adjust the information and show the data subject an amended view and even charge for administration. Some businesses can charge as much as £50.00 just for the privilege of seeing the information stored about them. Doctors and other institutions have also been known to omit information when showing the data subject what information is stored about them.

In special cases as described below the data subject cannot have access to the information stored about them:

Individuals have the right to seek compensation if damage is caused through loss, unauthorised disclosure or destruction of data. Data subjects can also apply to court to correct/delete incorrect data.

The legalities regarding the Data Protection Act are very weak and the actual act does not commit the data user to definite guidelines and legal structure. However, the Data Protection Registrar can serve three types of notice:

  1. An enforcement notice, requiring the data user to take specified action to comply with the particular Principle. Failure to comply with the notice would be a criminal offence.
  2. A de-registration notice, canceling the whole or part of the data user's entry. It would then be a criminal offense for the data user to continue to treat the personal data which are subject to notice as though they were still registered in the same way.
  3. A transfer prohibition notice, preventing the data user from transferring personal data overseas if the Register is satisfied that the transfer is likely to lead to a Principle being broken. Failure to comply with the notice would be a criminal offence.

The Data Protection Principles which are the main constraints of the Data Protection Act 1984 are detailed below and are which the above types of notice refer to.

The Data Protection Principles are detailed below:

Personal Data shall

 

Data Protection Act and its effect on Norwich Union

As has been detailed above there are several considerations that need to be made to keep within the guidelines set out by the Data Protection Act. Security was one aspect of the data protection principles. Norwich Union hope to achieve a voice activated computer system whereby customers can simply talk to the computer to gain information they want to know about their personal details as well as to solve their problems. One important fact that Norwich Union have overlooked is that someone could impersonate another in order to retrieve information about them for their own personal benefit. The Data Protection Act does not allow this and Norwich Union could be faced with a notice from the registrar. It would be an idea for Norwich to use either a password system as those used in banks to confirm the identity of the person on the phone.

The owner of the information stored on computer can also have a bearing on how the data is maintained. The Data Protection Act does not apply to certain institutions as outlined below:

As you can see these exceptions to the Data Protection Act are somewhat vague, so it is essential that they are abided by as best as possible. The Data Protection Act would be relevant to Norwich Union.

Failure to keep the information stored on computer accurate about the customers details may result in one of the notices being served by the registrar to Norwich Union. As a result Norwich Union may want to make positive steps to ensure that data is regularly kept up-to-date.

Information Seeking & Validity

In order to have all of the necessary information to be used in the report on Norwich Union I have decided to select the following sources.

A photocopied sheet summarising the Data Protection Act.

This sheet was given out by the subject tutor in order to back up our class notes. The sheet gave a fairly detailed summary of the Act and the main consequences it has on individuals and organisations. There is no name of the source as to where this came from, however my subject tutor assures me that it is accurate and a reliable source.

To check its validity I looked at the information from Internet at the government site and the information on the Data Protection Act was correct based on the full Act itself.

This proved that the information was valid and I therefore used it in the report.

In addition to this the actual Act was made law in 1984 and since then there has been no significant changes so if the photocopied resource was dated it would be irrelevant.

Overall, I was happy to use this source in the report.

Management Information Systems, Kenneth Laudon, published by Macmillan , 1994 3rd edition.

This book is a very comprehensive source, detailing the different types of computer systems and how they help decision making in an organisation. I found a small section in this book on the paper-less office which I have incorporated into my report. The author of the book is Kenneth Laudon, who is Professor of Information Systems at New York University's Stern School of Business. He holds a BA in Economics from Stanford and a PhD from Columbia University. He has authored nine books dealing with information systems, organisations, and society. Professor Laudon has also written over forty articles concerned with the social, organisational, and management impacts of information systems, privacy, ethics, and multimedia technology. Overall the author is a very experienced person in this field of work and the contents of the book are reliable. The publishers, Macmillan are educational publishers and this book is aimed to students studying Management Information Systems so I am further persuaded that the facts stated in the book are true. In addition to this, the book was published in 1994 and although changes in technology occur very fast, I still feel that the book is accurate for the needs of the report.

Internet Homepage of Data Protection Act Registrar

This is a British Government Internet site, this has all of the relevant details of the Act as it was originally set out. The registrar has the job of settling any disputes that individuals may have regarding their information being held with organisations and its misuse. This site provides much information on the act and I have used this information in the report for Norwich Union. I chose this site for my information because it is from the government which means it is very accurate and I have the actual Act itself and not a brief summary. I feel that this source is reliable and valid for the needs of this assignment.

Leaflet on Norwich Union detailing the changes that have been made and future considerations.

This leaflet was attached to the assignment brief and is provided to give a background on the systems that Norwich Union are incorporating. I feel that it is a reliable source for this assignment because it gives a good accurate background about Norwich Union systems which my own knowledge confirms. The leaflet may be biased in the favour of Norwich Union, but this will be acceptable because I am writing the report in their favour. When I used this source I was particularly careful to check the validity of certain parts as I have stated that is it biased in their favour. The method I used to check the parts, was to simply look carefully into other sources which I found backed up what was written. The other sources that I used to back up the information were those detailed in this list.

When I compiled my report for the next Annual Company Report of Norwich Union I used the above sources as a basis for the legal facts, and generally how advanced computer systems can improve the productivity of a large organisation, such as Norwich Union.

Evaluation

The work that I have done on this assignment as a whole is very comprehensive and I hope to have covered the necessary aspects of the performance criteria. My work should meet the criteria because I have completed the tasks as set out in the brief. For PC 2.4.1, I have written a good amount and gone quite in depth on the purpose and matter of information processing, I have also looked a little into the history and shown how it has changed over the years. For PC 2.4.2, I have described the information processing at Norwich Union and how they plan to modernise what they have already accomplished. For PC 2.4.3, I have written about the effectiveness of the information processing at Norwich Union. For PC 2.4.4, I have thoroughly explained the effects of the Data Protection Act on individuals and the Norwich Union organisation. I feel that I have thoroughly covered the performance criteria required for this assignment by writing the report.

My research into the Data Protection Act does reveal that the actual Act is not very specific for organisations and the penalties for not abiding by them are not too severe. Businesses can easily get round the legislation by not keeping some information on computer but by keeping it in files. So sensitive information can be treated by the organisation in any way that they desire providing it is within the law, but if the information is stored on paper and not on computer, the Data Protection Act does not apply.

I decided that a systematic approach was be the best for this assignment as the report would look better if the subjects discussed were in a logical order. If I had needed to apply for any information I would have made sure that this was applied for prior to starting the actual report and possibly researched further into other areas of the report. Luckily I had immediate access the information at all times.

I had a few problems in completing this assignment, the most important being timing. I had made a plan, but as the assignment was to be completed throughout the summer holiday I gave it last priority which was wrong as it meant that the work was completed in rather a hurry. This major problem meant that I was not able to reach the agreed deadline and therefore the assignment was quite late.

In future when I have work that needs to be completed I will make sure that I stick to my original plan where possible and prevent this from happening again. I should have completed the assignment at the start of the holidays.

The actual assignment was completed with no apparent problems despite the bad planning.

If I was to carry out this assignment again, I would have made sure that I made a good detailed plan and made sure that I kept to it. The information that I have included in the report may have perhaps too much content on the Data Protection Act compared to the content of information processing.

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