BMGT326 Exam 1 Review Ch 1 3 17 13 T F 47 multiple choice Chapter 1 Enterprise system application of electronic networks to undertake business processes between individuals and organizations integrate all processes and information from the organization s functional areas includes the interaction between back office and front office processes provides virtual marketplaces Enterprise resource planning ERP systems software packages used to support enterprise systems collect data about each business event and store in an enterprise database standardize processes and systems Internal control process designed to provide reasonable assurance regarding achieving objectives ensures that asset levels are correct and that operations are efficient effective Information system IS system of integrated computers and manual components that collect and store data and provide output information to users directed at the processing of business events Accounting information system AIS subsystem of an IS that focuses on financial aspects of a business hard to distinguish from IS with the integration of systems today ie ERP Two functions assist in daily operations support managerial activities Accountants participate as users business process owners choose data and report design ensure validity through audits and checking internal controls but don t actually program code the system Sarbanes Oxley Act SOX Section 404 management must document evaluate internal controls auditors must report on the effectiveness of the organization s internal controls Section 409 management must rapidly disclose to the public any material changes in the firm s financial condition Information data presented in a form that is useful for decision making and reduces uncertainty Qualities Understandability can perceive the information s significance Consistency same object event collected each time Comparability can identify similarities differences among information Accuracy agreement between information and actual event object Completeness includes data about every relevant object event only once Verifiability high degree of consensus about the information among measures Timeliness available while still useful for decision making Relevance capable of making a difference in decision making by reducing uncertainty increasing knowledge Components Predictive value improve capacity to predict Feedback value improve capacity to confirm correct earlier expectations Timeliness available while still useful for decision making Reliability appropriate information for management to operate the entity s responsibilities Components Accuracy agreement between information and actual event object Completeness includes data about every relevant object event only once Verifiability high degree of consensus about the information among measures Validity actual authorized events objects Neutrality free from bias information is objective quality measurements Data facts or figures in raw measurement form must be transformed into information Chapter 2 Primary goal of an ERP system allow companies to standardize systems across multiple locations and multiple divisions to link business processes and data in a consistent fashion and provide organization wide data accessibility ERP Software Add ons Customer Relationship Management CRM maintains a customer database name contact information tracks purchases and suggests products supports customer retention ie Amazon com Customer Self Service CSS extension of CRM that allows customers to perform tasks troubleshoot problems check order statuses retail self service options Supplier Relationship Management SRM manages interactions with organizations that supply goods services contract management reduces product production costs Product Life Cycle Management PLM manages product data through a product s life integrates data across organizational units Sales Force Automation SFA automates sales tasks used interchangeably with CRM even though CRM doesn t process orders Supply Chain Management SCM executes the steps on a supply chain handles inventory o o o o o o o o o o o o o o o o o o o Middleware generic term for a software product that connects 2 separate applications software modules helps them back data back and forth Enterprise Application Integration EAI approach that combines processes hardware linking 2 systems together internally or externally allows them to work as one examples CRM ERP systems Event Driven Architecture EDA approach that is triggered by business events events push send the messages between 2 different systems that are unaware of each other instead of waiting for the recipient to request Chapter 3 Types of Data o Master Data relatively permanent data maintained over an extended period of time contains data related to entities places things Standing Data relatively permanent portions of master data Data Updates Transaction processing information processing related to business events adjusting entries due to new transactions occurring updates the master data o Data maintenance adding to editing deleting the standing data Periodic mode processing mode in which a delay exists between the various data processing steps depends heavily on batch processing aggregation of several business events over some period of time for processing as a group Online Transaction Entry OLTE use computer to enter business event data online directly into the information system at the time place of the event Advantages low cost means of improving efficiency eliminates human error Disadvantages data still processed in batch mode periodic mode systems becoming less common Immediate mode data processing mode in which little no delay occurs between any data processing steps updates master data immediately at the time of each event real time processing Online Real Time Processing OLRT gathers business event data at the time of the occurrence and updates the master data instantly creating because of pressures for timely information flows and significant advances in information technology Advantages eliminates the delay in accessing up to date information Disadvantages Back Office v Front Office functions Back office internal business processes ie distribution manufacturing accounting Front office external business processes ie functions with customers and vendors By product of e Business decreasing the sales staff Electronic Data Interchange EDI computer to computer exchange of business data structured formats allow