Information
Date that has been organized to help answer questions and solve problems
Information systems
- An organized network of components that help collect/organize/analyze data.
- the purpose of the information system is to turn raw data into useful information that can be used in decision making
- an information that does not match the business processes will not produce valuable information
Components of information systems
1) hardware (computer)
2) software (windows, sage)
3) databases (store data)
4) Network (connections)
5) procedures (how data is processed)
Classification of Information systems (bottom to top)
1) transaction processing (staff) (operational level) (payroll system)
2) management information (middle managers) (management level) (budgeting system)
3) decision support (senior managers) (knowledge based level) (financial planning system)
4) Executive (executives) (strategic level) (very customized to find trends and plan)
Accounting information system
- collects/stores/processes financial/accounting data that will be used by decision makers
- AIS supports al departments of accounting (tax, audit, etc)
ERP
Enterprises resource planning
4 approaches to conversion
conversion when AIS is no longer adequate for decision making
1) run the new system parallel to the old system
2) phase in new system
3) use one location as a pilot site
4) direct changeover
At any point when data is captured…
controls must be put in place to ensure integrity of data
- Ex: POS sale is the data being captured, so the controls in place would be: when sale put through, inventory is checked and notice is sent to shipping, the sale will also be put through accounting, and if the item is low on stock a notice will be sent to purchasing for restock
Garbage in, Garbage out
- the idea that poor quality input (data) will produce faulty output (information)
Data quality is a result of
1) input data
2) methodology
3) quality control
- high quality data is the most important factor in analysis
