Chapter 1 Themes of text Exam 1 Review o 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 reporting o E business the application of electronic networks including the internet to undertake business processes between individuals and organizations o 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 events o Roles of accountants in relation to AIS Designer User Auditor Logical components of a business process o Management process man made system consisting of the people authority organization policies and procedures whose objective is to plan and control the operations of the organization o 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 Distribution o 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 control o 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 information activity o Information data presented in a form that is useful in a decision making Has value to the decision maker because it reduces uncertainty and increase knowledge about a particular area of concern o Data facts or figures in raw form Represents the measurements or observations of objects and events o Data must be transformed into information Qualities of information o 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 hand o Comparability is the information quality that enables users to identify similarities and difference in two pieces of information o Accuracy is the correspondence or agreement between the information and the actual events or objects that the information represents o Completeness the degree to which information includes data about every relevant object or event necessary to make a decision and includes that information only once o Verifiability there is a high degree of consensus about the information among independent measurers using the same measurement methods o 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 decision Chapter 2 Primary goal of an ERP system o 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 add ons o 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 relationships o 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 plans o 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 quality o 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 organization o SFA sales force automation software Automates sales tasks such as order processing contact management inventory monitoring order tracking and employee performance evaluation o 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 outputs o Primary activities those directly involved in marketing selling producing and delivering the good or service to the customer o 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 value o 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 differentiating the product Core applications of an ERP o Sales and distribution SD functions related to the sale of the goods to customers and includes recording a
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