1-1 Data vs. Information • Data are facts stored in the system ▫ A fact could be a number, date, name, and so on. For example: 2/22/14 ABC Company, 123, 99, 3, 20, 60
1-2 Data vs. Information The previous slide just showed facts, if we put those facts within a context of a sales invoice, for example, it is meaningful and considered information.
1-6 Organizational Decisions and Information Needed • Business organizations use business processes to get things done. These processes are a set of structured activities that are performed by people, machines, or both to achieve a specific goal. • Key decisions and information needed often come from these business processes.
effective and efficient decisions. ▫ Having effective decisions means quality decisions ▫ Having efficient decisions means reducing costs of decision making
1-12 AIS and Strategy • An AIS is influenced by an organization’s strategy. • A strategy is the overall goal the organization hopes to achieve (e.g., increase profitability). • Once an overall goal is determined, an organization can determine actions needed to reach their goal and identify the informational requirements necessary to measure how well they are doing in obtaining that goal.
1-13 AIS in the Value Chain • The value chain shows how the different activities within an organization provide value to the customer. • These activities are primary and support activities. ▫ Primary activities provide direct value to the customer. ▫ Support activities enable primary activities to be efficient and effective.
• Capture transaction data triggered by a business activity (event). • Make sure captured data are accurate and complete. • Ensure company policies are followed (e.g., approval of transaction).
▫ Activity of interest (e.g., sale) ▫ Resources affected (e.g., inventory and cash) ▫ People who participated (e.g., customer and employee) • Information comes from source documents.
2-19 Source Documents • Captures data at the source when the transaction takes place ▫ Paper source documents ▫ Source data automation (captured data from machines, e.g., Point of Sale scanners at grocery store)
Data Processing Four types of processing (CRUD): • Creating new records (e.g., adding a customer) • Reading existing data • Updating previous record or data • Deleting data
Data processing can be batch processed (e.g., post
documentation and understand how a system works (e.g., auditors need to assess risk) • Sarbanes-Oxley Act (SOX) requires management to assess internal controls and auditors to evaluate the assessment • Used for systems development and changes
• Processes • Sources and destinations of the data • Data stores DFD are visually simple, can be used to represent the same process at a high abstract or detailed level.
3-35 Types of Flowcharts • Document: shows the flow of documents and data for a process, useful in evaluating internal controls • System: depicts the data processing cycle for a process • Program: illustrates the sequence of logic in the system process