Information Systems in Business
Information Systems in Business Functions
Learning Objectives:
When you finish this chapter, you will: * Recognize different business functions and the role of ISs in these functions.
* Understand how ISs in the basic business functions relate to each other.
* Be able to show how ISs of different business functions support each other.
* Understand how IT is used in the most common business functions to make business processes more effective and more efficient.
* Understand the notion of Enterprise Resource Planning systems.
* Recognize business areas where information technology facilitates the work of managers and knowledge workers.
Effectiveness and Efficiency
ISs can help companies attain more effective and efficient business processes.
Effectiveness
The degree to which a goal is accomplished, or how much is the actual performance output (achievement)compared to the planned goal.
Sometimes effectiveness is viewed as better performance.
Efficiency
Determined by the relationship between resources expended and benefits gained (in terms of saving money and/or time) in achieving a goal
Effectiveness and Efficiency
Figure 3.1 Information technology supports a variety of business functions
Figure 3.2 Information systems in different business functions are interdependent.
ACCOUNTING
AISs automatically post transactions in the books and automate generation of reportsfor management and legal requirements.
Three types of AISs
Transaction processing systems (TPS)
Cost accounting systems
Managerial accounting systems
Electronic Data Processing (EDP) Audits * Ensure electronic systems comply with standard regulations and acceptable rules * Ensure systems cannot be manipulated to circumvent acceptable principles In recent years EDP auditor’s job title has changed to information systems auditors.
Figure 3.3 Accounting information systems include features that
Learning Objectives:
When you finish this chapter, you will: * Recognize different business functions and the role of ISs in these functions.
* Understand how ISs in the basic business functions relate to each other.
* Be able to show how ISs of different business functions support each other.
* Understand how IT is used in the most common business functions to make business processes more effective and more efficient.
* Understand the notion of Enterprise Resource Planning systems.
* Recognize business areas where information technology facilitates the work of managers and knowledge workers.
Effectiveness and Efficiency
ISs can help companies attain more effective and efficient business processes.
Effectiveness
The degree to which a goal is accomplished, or how much is the actual performance output (achievement)compared to the planned goal.
Sometimes effectiveness is viewed as better performance.
Efficiency
Determined by the relationship between resources expended and benefits gained (in terms of saving money and/or time) in achieving a goal
Effectiveness and Efficiency
Figure 3.1 Information technology supports a variety of business functions
Figure 3.2 Information systems in different business functions are interdependent.
ACCOUNTING
AISs automatically post transactions in the books and automate generation of reportsfor management and legal requirements.
Three types of AISs
Transaction processing systems (TPS)
Cost accounting systems
Managerial accounting systems
Electronic Data Processing (EDP) Audits * Ensure electronic systems comply with standard regulations and acceptable rules * Ensure systems cannot be manipulated to circumvent acceptable principles In recent years EDP auditor’s job title has changed to information systems auditors.
Figure 3.3 Accounting information systems include features that