PQR Ltd. is a logistic service provider company, having presence at different locations in India as well as abroad. The company has been facing a lot of challenges due to its complex technical infrastructure and out-date

CS Professional · Information Technology and Systems Audit · PYQS · December 2019
PQR Ltd. is a logistic service provider company, having presence at different locations in India as well as abroad. The company has been facing a lot of challenges due to its complex technical infrastructure and out-dated legacy applications, including poor information system management. The employees of the company have also been facing a lot of issues in using the existing software systems. The poor quality of information resources and absence of proper information for strategic planning are leading to wastage of resources of the company and thus affecting the reputation of the company in the market. After a lot of deliberations with the stakeholders and with a consulting firm, the management of the company decided to adopt new IT enabled infrastructure including adoption of cloud computing services. Based on the above, attempt the following: Briefly explain any five (5) characteristics of the information required for Strategic planning.

Answer & Explanation:

Characteristics of Information required for Strategic Planning are as under: Ad hoc Basis: The information may be produced either regularly or periodically. For example, top management uses reports pertaining to periodic accounting system reports such as, the income statement, balance sheet, statement of sources and uses of funds, and capital statements in its planning functions. However, strategic planning information is more often produced when it is needed, on an ad hoc basis. Unexpected Information: The information produced by the system may not be the same that was anticipated. For example, information relating to economic forecast may be requested for the economy as a whole and for the industry in particular. The result of the economic forecast may be a surprise to the organization planners. Predicted nature: The information produced is usually predictive of the future events rather than descriptive of past events. Strategic planners try to set a course for an organization through an uncharted future. Their primary task is to choose a route that will improve the organization's level of success. Summary Form: The information produced is usually not detailed but in summary form. Long range planners are not usually interested in detailed information; they are concerned with more global data. For example strategic planners may not be interested in the customer invoices but overall buying trends for their product vis-à-vis the product of the competitors. External Data: A large part of data used for input to the system is acquired from the external sources. To mention, rate of borrowed capital, investment opportunities, demographic characteristics of a market group, and economic conditions etc. and the example of this type of information. Unstructured format: The data used for input to the system may contain data that are unstructured in format. For example: forecasts of future stock market trends may be using the opinions of stock buyers, sales people, or market analysts obtained in casual conversations. Subjectivity: The input to the system may be highly subjective in nature.

Topics: Information Systems

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