Key Idea: A management information system turns data into information managers can act on. This topic is where the data comes from, the technology that handles it, how it is kept safe, and who gains or loses.
Data into decisions
- A database stores data so it can be searched and sorted.
- Data analytics finds patterns: baking to the forecast cut unsold loaves from 130 to 70 a night.
- Big data and data mining: huge data sets searched for patterns, like Goldcrust's.
The technology
- Cloud computing, artificial intelligence, the Internet of Things, virtual reality.
- Data centres and networks are critical infrastructure.
- Cybersecurity protects systems and data from cybercrime.
People and ethics
- Loyalty programmes give data in exchange for rewards.
- Monitoring employees can raise output but cut trust (digital Taylorism).
- Privacy: customers must know what is collected and why.
The words to know
| Word | Means | Do not confuse with |
|---|---|---|
| Database | an organized store of data that can be searched, sorted and updated | a spreadsheet of one-off figures |
| Big data | data sets so large and fast-changing that ordinary tools cannot handle them | a large database |
| Data mining | searching large data sets for patterns that inform decisions | collecting the data |
| Cybercrime | crime carried out using computers or networks, such as fraud or data theft | a system breakdown |
| Digital Taylorism | using technology to monitor and time workers' tasks closely | ordinary performance appraisal |
Name the technology or data use, say which stakeholder it affects and how, and weigh the benefit against the risk to privacy, security or trust.
Exam-style question
Lena's Bakery Ltd keeps its orders, stock and loyalty-card members in a cloud database costing $90 a month. State two features of a database.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
Important: Every use of data has a cost for someone: customers' privacy, workers' trust, the risk of a breach. Name the stakeholder and weigh both sides.
Tap each card to check yourself.
How much does baking to the forecast save? 60 fewer unsold loaves × $0.90 = $54 a night, about $19,700 a year.
Give an example of cybercrime at the bakery. A fake Valley Grain email asking Kofi to pay $4,200 of flour into a new account.
One benefit of cloud computing? Data can be reached from every shop, and it is backed up away from the bakery.
Why run a loyalty programme? Members earn rewards; the business learns what, when and where they buy.
One risk of monitoring employees? Lower trust and morale, and higher labour turnover if staff feel watched.
What does data mining help Goldcrust decide? What to bake, where and when: its pies sell 40% more on wet mornings.
Exam tips
- Define the technology exactly: database, big data, data mining, cloud.
- Name the stakeholder before explaining the impact.
- Weigh benefits against privacy, security and trust.
- Cybersecurity is prevention; cybercrime is the threat.
- Apply every point with a detail from the case.