Exam 1 ReviewChapter 1- Themes of texto Enterprise systems: integrate the business processes and information from all of an organizations functional areas, such as marketing and sales, cash receipts, purchasing, cash disbursements, human resources, production and logistics, and business reportingo E-business: the application of electronic networks (including the internet) to undertake business processes between individuals and organizationso Internal control: a process-effected by an entities board of directors, management, and other personnel-designed to provide reasonable assurance regarding achieving  objectives: - efficiency and effectiveness of operations- reliability of reporting- compliance with applicable laws and regulations- Information systems: is a man made system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output information to users- Accounting information system: specialized subsystem of the IS, the purposed is to collect, process, and report information related to the financial aspects of business eventso Roles of accountants in relation to AIS Designer User Auditor- Logical components of a business processo Management process: man-made system consisting of the people, authority, organization, policies, and procedures whose objective is to plan and control theoperations of the organizationo Operations process: man-made system consisting of the people, equipment, organization, policies, and procedures whose objective is to accomplish the work of the organization Elements- Production- Personnel- Marketing and sales- Accounting- Finance- Warehousing- Distributiono Information process: the portion of the overall IS related to a particular business process- SOX (Sarbanes-Oxley Act of 2002)o Section 404: management must identify, document, and evaluate significant internal controls Auditors must, as a part of an integrated audit of financial statements, report on the effectiveness of the organization’s system of internal controlo Section 409: requires disclosure to the public on a “rapid and current basis: of material changes in an organization’s financial condition Compliance requires the application of legal, financial, and technical expertise to ensure that the organization’s AIS are able to produce financial data in a timely and accurate manner- Data vs. informationo Information: data presented in a form that is useful in a decision-making activity Has value to the decision maker because it reduces uncertainty and increase knowledge about a particular area of concerno Data: facts or figures in raw form Represents the measurements or observations of objects and eventso Data must be transformed into information- Qualities of informationo Understandability: enables users to perceive the information’s significance, presented in a form that permits is application by the user in the decision making situation at hando Comparability: is the information quality that enables users to identify similarities and difference in two pieces of informationo Accuracy: is the correspondence or agreement between the information and theactual events or objects that the information representso Completeness: the degree to which information includes data about every relevant object or event necessary to make a decision and includes that information only onceo Verifiability: there is a high degree of consensus about the information among independent measurers using the same measurement methodso Timeliness: is available to a decision maker before it loses its capacity to influence a decision o Relevance: when it is capable of making a difference in a decision making situation by reducing uncertainty or increasing knowledge for that particular decisionChapter 2- Primary goal of an ERP systemo Allow companies to standardize systems across multiple locations and multiple divisions to link business processes and data in a consistent fashion and provideorganization-wide data accessibility- ERP add-onso CRM (Customer relationship Management) Software Builds and maintains an organizations customer related database This data is collected from multiple customer interactions, integrated, managed, and coordinated across the entire organization to support identification, acquisition, and retention of customers to maximize the benefits of the relationshipso CSS (customer self-service) software Allows an organization’s customers to complete an inquiry, perform a task, or troubleshoot problems without the aid of the organization’s employees Customers can check the status of their orders, review inventory availability, and even check production planso SRM (supplier relationship management) software Manages the interactions with the organizations that supply the goods and services to an enterprise The goal is to reduce product costs and production costs and to enhance product qualityo PLM (product life-cycle management) software Manages product data during a products life, beginning with the design of the product, continuing through manufacture, and culminating in the disposal of the product at the end of its life Integrates data across many units of an organizationo SFA (sales force automation) software Automates sales tasks such as order processing, contact management, inventory monitoring, order tracking, and employee performance evaluationo SCM (supply chain management) software Helps plan and execute the steps in an organizations supply chain (demand planning, acquiring inventory, and manufacturing, distributing, and selling the product)- Value chain activities (which on primary and which are supporting)o Value chain: a chain of activities performed by the organization to transform inputs into outputs value by the customer o The activities in the value chain are business processes that convert inputs to valued outputso Primary activities: those directly involved in marketing, selling, producing, and delivering the good or service to the customero Support activities: provide the supporting infrastructure to enable the primary activities and include functions such as procurement, information technology (IT), human resources, and accounting- IT additional valueo IT has been able to assist in creating additional value by reducing the cost or improving quality in the performance of these activities Lowering the cost and