AIS

AIS

1. Function

   • Data collection
   • Data Storage
   • Transforming data into information
   • Providing adequate controls to safeguard the assets and data

2. Components

   • People
   • Procedures
   • Data
   • Software
   • IT infrastructure

3. Added value

   • improve quality
   • Reduce costs of products and services
   • Improve decision making
   • Share knowledge

4. Data processing cycle

   • Data input
     • Triggered by business activity
     • Historically: source documents
     • Now: Automation
     • Accuracy and completenss essential for quality
   • Data processing
     • Activity types
       • Creating
       • Reading
       • Updating
       • Deleting
     • Activity interval
       • Periodically
       • Online-real time
   • Data storage
     • Entity: anything about which the organization wishes to store data
     • Fields: Attributes of the entity
     • Record: all fields containing data bout one entity
     • File: all related records
     • Database: a set of interrelated, centrally coordinated files
       • Interrelated data files
       • Centrally coordinated data files with as little data-redundancy as possible
       • Database Management System
         • Manages and controls the data and interfaces between data and application programs
         • Maintains data dictionairy
           • information about structure of database
           • Per data element, corresponding record in data dictionairy describing that element
         • has several languages in order to provide a means of performing basic functions
           • Creating a database
           • Changing a database
           • Querying a database
             • Commands used are known as data query language (DQL). Is used to interrogate the database
               • Retrieving records
               • Sorting records
               • Ordering records
               • DQL contains easy-to-use, powerful commands that enable users to satify their own information needs
       • Advantages
         • data integration
         • data sharing
         • minimal data redundancy
         • cross functional analysis
       • Consequences for accounting
         • Ad hoc queries to provide the information needed for decision making
         • Information becomes available in customized formats
       • Related concepts
         • Data Warehouse
           • Large database
           • Contains detailed and summarized data
           • Data used for analysis rather than transaction processing
         • Data Mining
           • Using sophisticated statistical analysis to discover unhypothesized relationships in the data
     • Files vs Database
       • Developed to address the problems associated with the proliferation of master files
       • History: each new information need resulted in new files and programs which in turn resulted in an increase in master files
       • Resulting in problems
         • Duplicate information
         • more difficult to integrate data and obtain an organization-wide view of the data
         • chances of inconsistent information between files
   • Information output
     • Documents
     • Reports
     • Queries

5. ERP systems

   • Large, complex and demanding information systems implemented
   • Definitions
     • ERP systems are integrated cross functional systems containing selectable software modules that address a wide range of operational activities (Grabski, Leech, Schmidt)
     • ERP systems integrate several business procedures, applications and departments while sharing 1 database (Kannellou, Spathis)
   • Before and after ERP

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