3. Data (Singular form datum) are the raw
materials of which Information Systems
are built.
Information is processed or value-added
data.
Knowledge is understanding the meaning of
information – knowledge is personal and
subjective.
What is information?
What is a system?
What is information system?
What is an accounting information system?
Why do business need IS?
Why do accountant need to know about IS?
4. ‘A collection of parts that work together to
achieve some purpose.’
Systems can be man-made or natural
Identify some systems that you know about –
what do they have in common?
Can you give an example which links all
three?
Data
Information
Knowledge
5. System – data conversion
Inputs Data
Processing
Outputs Information
6. Processes are the sets of activities that are
performed on the inputs into the system
Examples:
o Format checks on data
o Validity checks on data
Manual keying
Scanning through barcode technology
Scanning through image scanners
Magnetic ink character recognition [MICR]
Voice recognition
Optical mark readers
7. A system whose purpose is the efficient
storage, manipulation, processing and
retrieval of information.
A set of interrelated components that collect
(or retrieve), process, store, and distribute
information to support decision marking and
control in an organization.
Outputs refer to what is obtained from a
system, or the result of what the system
does
Examples:
o Receipts
o Invoices
Outputs are normally the starting point
when designing a system
8. Source: Laudon and Laudon 2006
The components of an information system
are:
◦ People
◦ Data/information
◦ Procedures
◦ Software
◦ Hardware
◦ Communication
9. We can use technology to create barriers to
competition.
We can use technology to lower the costs of
market entry.
We can shorten timelines, speed cashflow, cut
out intermediaries,
We can be better informed than our
competitors.
Internet growth and technology convergence.
Transformation of business enterprise.
Growth of a globally connected economy.
Growth of knowledge and information-based
economies.
Emergence of the digital firm.
11. Transaction Processing Systems (TPS)
◦ serves the operational level of an organization.
◦ are designed to process routine transactions
efficiently
◦ E.g. Systems to calculate the weekly and monthly
payroll and tax payments
Knowledge management systems (KMS)
◦ helps businesses create and share information.
◦ uses group collaboration systems such as an
intranet.
1. When describing systems, a component may
belong to more than one system.
2. Information Systems is purely and simply about
technology
3. Successful Information Systems are centered on
technology
12. ◦ improves the productivity of employees who need to
◦ provides individuals effective ways to process personal and
documents. e.g. word processing, spreadsheets, file
◦ serves the management level of the organization.
usually take data from the TPS and summarise it into a
◦ MIS reports tend to be used by middle management and
Decision-support systems (DSS)
◦ helps management make decisions in situations where
there is uncertainty about the possible outcomes of those
decisions.
◦ DSS comprise tools and techniques to help gather relevant
information and analyse the options and alternatives.
◦ DSS often involves use of complex spreadsheet and
databases to create "what-if" models.
Executive support systems (ESS)
◦ serves the strategic level of an organization.
◦ It gathers, analyses and summarises the key internal and
external information used in the business.
Office automation systems (OAS)
process data and information.
organisational data, perform calculations, and create
managers, personal calendars, presentation packages
Management information systems (MIS)
◦ mainly concerned with internal sources of information. MIS
series of management reports.
operational supervisors.
13. A collection of data and information
processing procedures aimed at converting
economic data into the accounting
information needed by users for decision
about the allocation of scare resource.
AIS = Accounting + Information System
Source: Laudon and Laudon 2006
14. Accounting and IS – a changing relationship
Evolution ofAIS
Pre 15th century: recording economic
activities
15th century: Pacioli’s development
of double-entry
accounting
19th century: adding machines and
cash registers >>
batch totals
20th century: punch cards >> fully
integrated computerised
systems
21st century: accounting information
systems
15. For more details on Assignment Help/ Homework Help/ Online Tuitions visit our website at
http://www.helpwithassignment.com
Thank You