Name : Ardzyka Raka Ramadhan 

Npm : 1910631030065 
Class : 3G / S1 Accounting 
Subject: Accounting Information System 
Lecturer : Prof. Dr. Sri Mulyani Ak., CA.
Mr. Alam Mauludina

Assignment Per 3 –
Problem from Romney and Steinbart's Book (2018)

1. Do the discussion question (17)-Number 1.1 - 1.6

1.1. The value of information is the difference between the benefits realized from using that
information and the costs of producing it. Would you, or any organization, ever produce
information if its expected costs exceeded its benefits? If so, provide some examples. If
not, why?
Answer :
Yes, there is like the following case example, there is an example of Alfamart and Indomart that made
a Ponta card and Indomart card program which costs money to get value information such as customer
data to then help them make decisions and understand the customer's desire that they will be in a third
party. to improve service quality So, in my opinion, it is clear that the costs involved in obtaining this
information outweigh the benefits
1.2. Can the characteristics of useful information listed in Table 1-1 be met simultaneously?
Or does achieving one mean sacrificing another?
Answer :
As in the case example in Table 1.1 there are criteria that can be met simultaneously. For example,
information that is more timely is also likely to be more relevant. Information that can be verified is
likely to be more reliable.but, achieving one goal may require the sacrifice of another. For example,
ensuring that information is more complete can reduce its timeliness. Likewise, increased verification and
reliability can reduce timeliness.The decision maker has to decide which trade-offs are guaranteed in
certain situations.
1.3. You and a few of your classmates decided to become entrepreneurs. You came up with
a great idea for a new mobile phone application that you think will make lots of money.
Your business plan won second place in a local competition, and you are using the
$10,000 prize to support yourselves as you start your company.

a) Identify the key decisions you need to make to be successful entrepreneurs, the information you need
to make them, and the business processes you will need to engagein.

Answer :
  The main decision I need to make is to focus on the target consumer to fit the purpose of this
mobile application product
 Then the information that I built to design this application is with knowledge about the
advantages and disadvantages of competing and comparing with the ideas I have and seeing
the problems that occur in the city so that this application can also help solve these problems
 The process for making this application is to compile the necessary information data into one,
then design the application system, then upload it in an application market such as Playstore /
iOS, after all that is done, then start it to market products such as web ads, discussion group
forums, and offline media.

b) Your company will need to exchange information with various external parties.Identify the external
parties, and specify the information received from and sent to each of them.

Answer :
 External parties can collaborate such as exchanging customer information with my company
to help their company and mine to improve product quality and make decisions

 The information that I need to exchange with external parties is customer data such as unique
habits and patterns of customer interaction they have with my product and as a form of
cooperation between my company I will get information such as data on the use of the
company's products.

1.4. How do an organization’s business processes and lines of business affect the design of
its AIS? Give several examples of how differences among organizations are reflected in
their AIS.
Answer :
Some things in the design of SIA in several companies will always different depending on the
organization or company that uses the SIA, for example in large companies, usually employees who hold
the accounting division have a program or application that can report their financial reports directly to the
head manager directly so information is more transparent and more efficient and also saves time such as:
 Financial institutions do not need extensive inventory control systems.
 Passenger service companies (e.g., airlines, bus, and trains) generally receive payments in advance of
providing services. Therefore, extensive billing and accounts receivable procedures are not
needed; instead, they must develop procedures to account for prepaid revenue.
 Construction firms typically receive payments at regular intervals, based on the percentage of work
completed. Thus, their revenue cycles must be designed to track carefully all work performed and
the amount of work remaining to be done.
 Service companies (e.g., public accounting and law firms) do not sell physical goods and, therefore,
do not need inventory control systems. They must develop and maintain detailed records of the
work performed for each customer to provide backup for the amounts billed. Tracking individual
employee time is especially important for these firms because labor is the major cost component.

1.5. Figure 1-4 shows that organizational culture and the design of an AIS influence one another.
What does this imply about the degree to which an innovative system developed
by one company can be transferred to another company?
Answer :
 AIS must be designed to reflect the values of the organizational culture. Organizational culture and
SIA design influence each other, because it is used in an organization. The SIA can also influence
organizational culture by controlling the flow of information within an organization. A well-designed
SIA will be able to carry out the main activities of the value chain more effectively and efficiently. If an
innovative system developed by a company can be implemented properly, then the impact will indirectly
extend to other companies. Implementation of a firm organization can also encourage efficiency and
organizational effectiveness so as to add value to the organization itself. To achieve its goals, an
organization must be able to develop an SIA and an innovative culture.

1.6. Figure 1-4 shows that developments in IT affect both an organization’s strategy and the
design of its AIS. How can a company determine whether it is spending too much, too
little, or just enough on IT?
Answer :
To be able to evaluate this, companies need a basic understanding of business strategies and how IT
can be used to implement these strategies and how new developments in the IT field can create
opportunities to modify these strategies. Companies must be able to evaluate costs and benefits. of new
IT developments. By evaluating and understanding these points, companies can determine whether they
have written off too much or too little or enough funds for information technology.

2. Do Problems (20) -Number 1.6

Based on Walmart’s success in the United States, many expected the company to
quickly dominate the British market after it bought the Asda grocery chain in 1999.
That did not happen; Walmart’s market share in groceries grew to a little more than
half that of its biggest competitor, Tesco. Initially, Tesco’s sales and net income rose
significantly while Walmart’s sales and net income increased at a much slower rate.
More recently, Walmart has made small gains in market share, and Tesco has had
small decreases.

Walmart found out that Tesco is a formidable worldwide competitor. Tesco operates
almost 2,400 stores in Britain in four different formats. It has a very successful
operation in Central Europe, and it expanded to the United States with Fresh & Easy
stores. In Korea, Tesco’s 174 stores thrived while Walmart gave up after an eight-year
effort to succeed and sold its 16 stores.

One of the biggest reasons for Tesco’s success is its use of technology. In 1995,
Tesco started a loyalty card program, called Clubcard, and over 80% of its shoppers are
members. Shoppers fill out an application in the store and receive a plastic card and a
key fob in the mail that is scanned before they make a purchase. Tesco gathers massive
amounts of data about its customers’ 15 million purchases each week. Sales data are
analyzed and turned into information that provides Tesco with a significant competitive
advantage.
 As traditional advertising loses effectiveness, these large stores of data allow Tesco
to find new and creative ways to market its products.
Required
a) What kind of information do you think Tesco gathers?

Answer :

 The type of information Tesco collects is sales data, such as customer names, addresses,
household size, ages of children, dietary preferences, and income levels
 And also when the Clubcard is used to qualify for the discounts, Tesco computers record
everything a customer purchases.

b) How do you think Tesco has motivated over 22 million customers to sign up for its
Clubcard program?
Answer :
I think the things that make people sign up for the clubcard program are the discounts on the first
purchase and the guarantee of special promotions. Apart from that advertisement also plays an
important role in registration. And certain products can be purchased at a lower price than without
having a ClubCard and easy use can also make people interested in registering a ClubCard.

c) What can Tesco accomplish with the Clubcard data it collects? Think in terms of
strategy and competitive advantage.

Answer :
 Customized Coupons and promotions.
For some reason The Tesco company can analyze customer purchases and adjust its
marketing based on the results. and every few months Tesco will send coupons to active
customers and provide coupons for items they will buy or goods they will use
 Cross marketing.
Analysis of customer data can provide Tesco with purchasing data for customers such as
customers who have children under 10 years of age who often buy candy
 Improved decision-making.
In my opinion Tesco can make better decisions and set better company goals than ever before.
they can view data on purchases and ethnic makeup of the neighborhood around the store, and
then Tesco can store items that have a greater customer appeal.
 Customer loyalty.
On the one hand, the Tesco company could use Clubcard data to stabilize Wal-Mart's most
significant profits. Tesco identifies several items that are frequently purchased by price
sensitive buyers and lower their prices.
 New product rollouts.
From the clubcard analysis data, Tesco can determine what products customers buy.
Therefore, Tesco can set strategies in determining target consumers and goods to sell.
 Improved supplier relationships
Tesco can establish good cooperation with its suppliers to help them with the ClubCard
information data that suppliers use to make decisions. Example When Kimberly-Clark
introduced premium toilet paper, it used Clubcard data to track who bought it and who
continues to buy it. Further analysis showed that those who buy toilet paper are also big
buyers of skin care products. This has allowed Kimberly-Clark to develop a marketing
program that offers free beauty treatments to those who continue to purchase toilet paper.
 d) What are some of the disadvantages to the Clubcard program?

Answer :

 Additional Time in the Shop

Creating a ClubCard card can take a long time. Then after the customer has the card, the
customer must give it to the store every time he makes a purchase to get discounts and
coupons
 Privacy Concerns Customers
always have to provide some personal information - such as your full name, email address, or
telephone number - to sign up for the loyalty card program. Businesses use this information in
a variety of ways. They can sell customer information to third parties
 Excessive Contact and Spam Customers
may receive multiple emails, calls and advertisements to lead customers to purchase their
products
 Unlimited Savings For some customers
the amount they save with a Clubcard is not worth the hassle of providing personal
information. . You should review the terms of the program you're interested in to decide if it's
worth your time and effort.

e) Do an Internet search to find out how Tesco is doing in comparison to Walmart and other grocers and
retailers. Write a few paragraphs explaining your findings.
Answer :

What I found on the Internet is that when Tesco is compared to Walmart and other wholesalers and
retailers, Tesco has a big gun in its customer information. Tesco has enrolled 12 million Britons for its
Clubcard program, giving cardholders discounts in exchange for their names, addresses and other personal
information. Clubcard has helped increase Tesco's market share in groceries to 31%, nearly double the 16%
held by the Wal-Mart Asda chain, according to market research firm Taylor Nelson Sofres.
But As the US market becomes saturated, Wal-Mart sees growth overseas. It has worked, including
Mexico and Canada, but many overseas businesses have been hurt. The Japanese unit was confused. Last
month, Wal-Mart broke off its eight-year venture in South Korea by selling 16 of its outlets there to local
competitors for $ 872 million. Tesco said its 39 stores in Korea were successful.
As Wal-Mart grows in the US, Tesco is trying to attract rich and cheap buyers. It has several private
labels, from the "Tesco Finest" line which includes duck pate and cashmere sweaters to the "Tesco Value"
brand, which offers roasted peanuts and the like. The idea for the Finest line arose a few years ago when
Clubcard data showed that higher shoppers didn't buy Tesco's wine, cheese, and fruit. The retailer is
increasing its offering in that category.
The conclusion is that Tesco can take advantage of customer data with its clubcard when Walmart
comes to invade the market in the UK. With this strategy, Tesco can provide the best service to customers and
the owner of the CLUB card as customers also get benefits so that it adds more sides to Tesco than Walmart
and other wholesalers and retailers.