Solution

In general practice, before selecting the data and information to be used in supporting decision making, environment scanning is essential. To achieve this, Choo (2001) four-mode model for environmental scanning can be used, which focuses on undirected viewing, enacting, conditioned viewing and searching. In the context of ABC case scenario, this model can be used in environment scanning (see figure 1).

Figure 1: Four Modes Model of Environmental Scanning

Source: Summarised from Choo (2001)

After successful scanning of the environment, Reich and Benbasat (2013) study quoting Cashmore and Lyall (1991) noted the information sourced from environmental scanning to include external information, corporate information and internal information. This is a wide array of data which is broad and in its status cannot be inference for any decision making. For instance, in ABC bookkeeping practices, external information can include clients’ needs and preferences, technology knowledge, distribution channels and customer networks. Corporate information, on the other hand, would consist of the reputation of financial statements, advertisements and brand names. Lastly, internal information includes corporate practices, managerial skills and international management. For instance, to decide whether to transition from traditional bookkeeping manual strategies to QuickBooks and sage usage, information was collected on accounting service customers preferences. This data-informed a transition to modern practice. The criteria followed included;

Benchmarking on how other accounting companies are doing in terms of usage of manual or technology-enabled bookkeeping strategies
The demand for new bookkeeping services to ABC company with a survey of the customers’ needs implemented
Monitoring and controlling operations for efficiency purposes and noting the need to change for cost savings and time
Exchanging relevant information with engaged partners in ABC company including suppliers as an operational strategy
Engaging stakeholders both externally and internally to agree on best future strategy

The last phase in selecting data to make an appropriate decision, Robert Mitchell et al. (2011) nature of decision-making and its relationship with management information is adopted. The managerial decision-making is based on intelligence, design and choice. The transition to QuickBooks and sage was more of design as forecasts and predictive models were employed and opportunity which involve performing a risk analysis of manual system alternative.

A.C. 1.3 – Evaluate the impact of a management information system (MIS) to an organisation

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