Computer Applications in Business and Finance This course unit surveys the range of applications software used in business and finance and gets candidates to develop applications using a spreadsheet. Aims
Programme Content and Learning Objectives After completing the programme, students should be able to: 1. Describe typical applications of software in business and finance. 2. Demonstrate an awareness of the cost and benefits involved in the adoption of IT sufficient to discuss and review its impact upon the organisation. 3. Critically analyse a case study and explain how the software contributes to the success of the operation. 4. Explain the potential and limitations of software for information systems. 5. Demonstrate an awareness of legal, ethical, social, economic and political consequences of the use of IT for individuals, organisations and society. 6. Use Microsoft Excel to develop solutions to simple business needs and incorporate simple macros using Visual Basic for Applications. Syllabus Content A survey of the range of typical applications software. General business applications, sales order processing, stock control, accounts, payroll, e-mail, electronic diaries, EDI, e-commerce. Database applications, spreadsheet models, GIS. Real-time transaction processing, booking and inquiry systems, tele-sales, banking (ATM, CHAPS, BACS) retail (EPOS, EFTPOS). Adoption of IT The nature of contribution: efficiency, effectiveness, strategic. Types of costs and benefits, different stakeholders. Common issues in its adoption: legal, ethical, moral, social, health and safety, economic and political. The Role of Applications Software Modes of operation: batch, interactive, transaction and real-time. Methods of data capture, verification and validation. Analysis of case studies from the finance and retail sectors to explore the role and significance of computer applications. Implementation Types of software: system, application, bespoke, specific and generic packages. The stages of the system life cycle. Overview of the variety of techniques and methods. Planning and project management. Security needs and risk management. The concept of quality in software systems. Spreadsheets Spreadsheet principles, formula, functions, sort, formatting, charts, pivot tables, macros, printing, object linking and embedding. Creation of simple applications using Microsoft Excel. Creation and amendment of simple macros using Visual Basic for Applications. Method of Assessment By written examination. The pass mark is 40%. Time allowed 3 hours. The question paper will contain Four questions, each question carries 25 markes. One question will be compulsory, based upon a short unseen case study. Three further questions may be chosen from a selection of five. Candidates will be expected to have done practical work using both Microsoft Excel and Visual Basic for Applications but this work will not be directly assessed by ABE. Certain questions may test the student’s understanding of these systems and it would be difficult if not impossible to answer such questions adequately without having had some practical experience. Computer and software access Required Microsoft Excel on either a PC or an Apple Macintosh platform. Guidance Notes for Tutors Topics 1 to 4 of the syllabus will be studied theoretically whilst topic 5, spreadsheets, is essentially practical. It is recommended that between one third and one half of the contact time, spread evenly throughout the unit, should be given over to the teaching and practice of spreadsheets. Students will also need access to Microsoft Excel during part of their independent study time. This unit should draw on examples and case studies to illustrate the various points. This will probably be done using a combination of local examples that are familiar to candidates and international exemplars to illustrate the possible. Particular emphasis should be given to the finance and retail sectors. 1. Typical Applications Software This section introduces candidates to the range of typical applications software used in business and finance. Candidates should have an understanding of both an application’s role and its relationship to other applications. An example of this would be how a sales order processing system should not only process customer orders, but also integrate with the stock control and accounts systems. This example could be developed by looking at how some businesses have extended integration to the point where suppliers receive an automatic order via EDI; in other words, e-commerce. Having described the core systems of a typical business, other types of application such as management information systems, business models, ad hoc databases as well as shared diaries and e-mail should be explained. 2. Adoption of IT The justification for adopting any computer application has to be that it meets a business need. In looking at the benefits of an application, it is necessary to explore the nature of any contribution - efficiency, effectiveness, strategic - the particular application is intended to make. Candidates should be able to distinguish between the different types of costs and benefits that can relate to the adoption of IT and how each can be measured. These might include money, speed, volume, accuracy, staff morale and company image. They should also gain an insight into how different stakeholders can have different views about the value of these costs and benefits as well as the business needs. Although local laws vary and are subject to change, there are generic issues in the adoption of IT that a candidate should be aware of: legal, ethical, moral, social, health and safety, economic and political. Candidates should be able to identify these issues and understand how they relate to local conditions. 3. The Role of Applications Software This section considers the technical aspects of different application software. Candidates need to be able to describe the terms: batch, interactive, transaction and real-time process, listing the advantages and disadvantages of each and explaining their uses. They should understand the various methods of data capture and the need for data verification and validation. It needs to be made clear that these various elements are usually combined in all but the simplest environment and how this allows both the most appropriate solution to be selected and the maximum utilisation of resources. An analysis of case studies from the finance and retail sectors should be used here to explore the role of the applications and the type of technical requirements they produce. For example, an analysis of an automatic teller machine (ATM) would contrast the need for current information in dispensing cash with the need for a quick response in displaying the ‘current’ balance. 4. Implementation Candidates should be able to distinguish between system and application software. They should understand the advantages and disadvantages of bespoke development, off-the-shelf and customised packages. Candidates should be aware of the stages in the system life-cycle, the role of each in the effective deployment of computer applications in business and finance, and how appropriate techniques such as planning, data modelling and testing assist these. Candidates should understand the risk to a computer system such as power failure, operator error, unauthorised access or major disaster and how these risks can be minimised. They should have an awareness of quality issues in software systems from exploring concepts like fitness for purpose as well as reliability and conformance. 5. Spreadsheets Candidates must understand the concepts of spreadsheets as well as how to implement them within Microsoft Excel. It is essential, therefore, that they have explained the ‘Why’ as well as the ‘How’. They should be able to design their own solutions to the kind of small problems commonly found in business organisations. Examples would range from simple record keeping and charts for the annual report to financial models. Candidates should cover the basic spreadsheet principles of cells, worksheets and workbooks and be able to write formulae and format cells. They should be able to save and print their work. They should be able to select and use appropriate functions including the IF function and Goal Seek. They should be able to incorporate filtering and sorting, look-up and pivot tables, and charts in order to select and present data within a spreadsheet. They should understand the concept of object linking and embedding (OLE) to incorporate a spreadsheet in other applications (experience of OLE a chart or table in Microsoft Word would be quite adequate for this unit). Candidates should understand the need for automating tasks and be able to record and amending macros. Candidates should practice their skills and test their understanding by creating simple applications using Microsoft Excel and creating and amending simple macros using Visual Basic for Applications. Initially, such exercises may be no more than following a set of instructions, but candidates should move on to developing their own solutions. |