Académique Documents
Professionnel Documents
Culture Documents
COPYRIGHT 2011 South-Western, a division of Cengage Learning. Cengage Learning and South-Western
are trademarks used herein under license
downward
INFORMATION REQUIREMENTS
Each user group has unique information requirements.
The higher the level of the organization, the greater
the need for more aggregated information and less
need for detail.
INFORMATION IN BUSINESS
Information
is a business resource
that:
needs to be appropriately
managed
is vital to the survival of
contemporary businesses
WHAT IS A SYSTEM?
A group of interrelated multiple components or
subsystems that serve a common purpose
System or subsystem?
System Decomposition
the
System Interdependency
distinct
TRANSACTIONS
A transaction is a business event.
Financial transactions
economic
Nonfinancial transactions
all
TRANSACTIONS
Financial
Transactions
Nonfinancial
Transactions
Information
System
Information
User
Decision
Making
and
communicates economic information
about a firm using a wide variety of
technologies.
It captures and records the financial
effects of the firms transactions.
It distributes transaction information to
operations personnel to coordinate many
key tasks.
process
financial
Management
process
nonfinancial
AIS SUBSYSTEMS
Transaction
supports
produces
General
Management
(MRS)
produces
Reporting System
Information
data with context
processed data
value-added to data
summarized
organized
analyzed
5/10/07
Information
Data
6.34
6.45
6.39
6.62
6.57
6.64
6.71
6.82
7.12
7.06
$6.60
$6.40
$6.20
$6.00
$5.80
1
Last 10 Days
10
DATA INFORMATION
KNOWLEDGE
Data
Summarizing the data
Averaging the data
Selecting part of the data
Graphing the data
Adding context
Adding value
Information
DATA INFORMATION
KNOWLEDGE
Information
How is the info tied to outcomes?
Are there any patterns in the info?
What info is relevant to the problem?
How does this info effect the system?
What is the best way to use the info?
How can we add more value to the info?
Knowledge
DATA SOURCES
Data
1. DATA COLLECTION
Capturing transaction data
Recording data into forms
Validating and editing the data
2. DATA PROCESSING
Classifying
Transcribing
Sorting
Batching
Merging
Calculating
Summarizing
Comparing
3. DATA MANAGEMENT
Storing
Retrieving
Deleting
4. INFORMATION GENERATION
Compiling
Arranging
Formatting
Presenting
CHARACTERISTICS OF USEFUL
INFORMATION
Regardless
serves a purpose
Timeliness: no older than the time period of the action it
supports
Accuracy: free from material errors
Completeness: all information essential to a decision or
task is present
Summarization: aggregated in accordance with the users
needs
INFORMATION SYSTEM
OBJECTIVES IN A BUSINESS
CONTEXT
The goal of an information system is
to support
the
stewardship function of
management
management decision making
the firms day-to-day operations
ORGANIZATIONAL STRUCTURE
accountability
FUNCTIONAL AREAS
Inventory/Materials Management
purchasing,
Production
production
Marketing
Distribution
Personnel
Finance
Accounting
Computer Services
ACCOUNTING INDEPENDENCE
Information
reliability requires
accounting independence.
Accounting
Reorganizing the
computer services
function into small
information processing
units that are distributed
to end users and
placed under their control
Centralized Data
Processing
All data processing
is performed by
one or more large
computers housed
at a central site
that serves users
throughout the
organization.
Primary areas:
database administration
data processing
systems development
systems maintenance
helps
R
Inventory
E
M
Line items
Sales
M
M
Party to
Sales
person
M
1
Pays for
Made to
Customer
1
Cash
Increases
Cash
Collections M
Received
from
Received
by
Cashier
34
REA MODEL
REA model is an accounting
framework for modeling an organizations
The
Entity-relationship
ENTERPRISE RESOURCE
PLANNING SYSTEMS
Enterprise
ACCOUNTANTS AS INFORMATION
SYSTEM USERS
Accountants must be able to clearly convey their needs
to the systems professionals who design the system.
The accountant should actively participate
in systems development projects to ensure
appropriate systems design.
attest
Auditors
IT
Auditors
evaluate
in-house
Internal
Auditors