Transcript Accounting Information Systems

Accounting
information system
A Business process approach
FREDERICK L. JONES
DASARATHA V. RAMA
Jones Rama
LOGO
INTRODUCTION TO
ACCOUNTING
INFORMATION SYSTEMS
King Saud University
Hana Ali AL-Mughamis
Contents
BUSINESS STRATEGY AND THE VALUE CHAIN
IT and value-chain Management :
IT AND MULTI-USER SYSTEMS:
E-commerce and E-business :
ORGANIZING AND ANALYZING
DATA:
INTEGRATING BUSINESS PROCESSES, DATA,
AND APPLICATIONS:
Using Technology to Enhance Business Process
Using Technology to
Enhance Business
Process
Using Technology to Enhance Business Process
This chapter shows how value-chain analysis can
help a company design its processes to
implant strategy, and how IT can facilitate
communications between users
BUSINESS STRATEGY AND THE VALUE CHAIN
Due to severe market competition, companies were forced to
focus on improving their business process and IT systems
effectiveness to stay competitive and survive. This involves
considering all value activities which includes
1.
2.
3.
4.
Inbound logistics .
Operations transform.
Outbound logistics.
marketing .
5. services .
:
BUSINESS STRATEGY AND THE VALUE CHAIN
All these activities require the support of human
resources and the acquisition and application
of information technology.
THE THREE GENERIC STRATEGIES FOR
COMPETITIVE ADVANTAGE:
In order for any organization to gain competitive
advantage, it should adapt on of the following
strategies :
1. cost leadership .
2. differentiation .
3. and focus on a specific group of customers .
IT and value-chain Management :
In the past:
communicating information with business partner in the value
chain was seldom a primary concern of top ranking
executives.
Now :
executive at the highest corporate level in many businesses are
driving the development of value-chain strategies to
enhance interactions with business partners.
IT AND MULTI-USER SYSTEMS:
In such an environment users need to share the information so
that each employee should have access to the information
relative to his job functions.
Hence, different computer devices used by multiple people
must be linked into a network.
Networks are of two types that are :
1- Local area networks (LANS) .
2- Wide area networks (WANS).
IT AND MULTI-USER SYSTEMS:
We discuss three common for connecting data and application
in networking:
1. terminal emulation
2. file-server approach
3. client-server systems.
IT AND MULTI-USER SYSTEMS:
1. terminal emulation
Where all data and applications stored on a large computer and accessed by
users using dumb terminals, and lately after the decreasing costs of the PC,
the dumb system was exchanged with PC system.
File-server approach
Here the data is being distributed among computers using powerful servers
to store shared files.
Client-server systems
In the client-server systems, the processing tasks are shared between the
clients and the server. Clients-server is superior to the file-server approach
when there are many users and large databases.
IT AND MULTI-USER SYSTEMS
It is important for accountants to know how
the data and applications are organized in
networked environments for selecting the
standard program for their specific purposes
and to understand e-commerce application.
E-commerce and E-business :
It is of great importance here to identify ecommerce and e-business .
E-business encompasses all kinds of electronic
exchanges with customer and supplier as
well as internal business operation and
communications.
E-commerce is a transaction-oriented part of ebusiness enabling buying and selling
processes through the Web .
E-commerce and E-business :
Those exchanges use a common language
called Hypertext markup language (HTML).
HTML
Static and Dynamic Web Pages for EBusiness Application:
web pages for e-business applications can be
classified according to the different functions
as :
• static .
• dynamic .
Static and Dynamic Web Pages for EBusiness Application:
• Static Web pages :
are pages created in HTML that do not change automatically
in response to users requests and it provide a simple low-cost
way of presenting information about the company.
• Dynamic Web pages :
are linked to real-time databases. It provides up to date
information as the database is always updated to reflect
current data and latest information. It help to make ecommerce possible. It costs more in comparison to static
HTML but adds more value by making the ordering of goods
and materials much easier for both customers and suppliers.
Static and Dynamic Web Pages for EBusiness Application:
•
Dynamic Web pages :
Dynamic web pages require a three-tier :
1. Client Tier.
2. Middle Tier
3. Bottom Tier
three-tier help a student to understand key
business technologies and applications.
Dynamic Web pages :
• Client Tier :
consists of the browser software running on a user's PC, to
locate Web sites selected by users and interprets the HTML
documents to be used for entering sales' orders, etc.
• Middle Tier:
middle tier interacts with the client tier and the backend
database using a standard interface i.e. ODBC (Open
Database Connectivity) to interact with the database server.
• Bottom Tier:
also called (the data base server) is for storing databases and
databases management software.
E-Business and Business Processes:
There are keys costs to consider when any firm plan to use ecommerce for enhancing its marketing and/or operations
process .
These cost are :
• the cost of re-engineering process of the business
• The cost of designing the graphical user interface.
• the cost of integrating back-end operations.
E-Business and Business Processes:
• Interacting with Customers:
E-business can be used to enhance interactions
With customers throughout the revenue process.
• Interacting with Suppliers :
Businesses are also focusing on the concept of supply chain
management .
• Internal Operation :
To communicating with customers and suppliers, companies
can use Internal technology for internal operations and
decision making.
ORGANIZING AND ANALYZING DATA :
Many companies have a great deal of data about historical
transactions . The amount of data has been growing as ebusiness and e-commerce technologies become more
common.
E-commerce can collect information about customer tastes and
preferences and other data transactions .
We discuss two such technologies• Data warehousing .
• And data mining .
ORGANIZING AND ANALYZING DATA:
•
Data Warehousing :
There are two types of data storage:
1. one is called OLTP (on-line transaction
processing systems)
which is required to provide fast reliable data
processing .
2. The second one is the data warehouse .
ORGANIZING AND ANALYZING DATA:
The second one is the data warehouse .
•which is for storage of huge historical data used for
high level analysis and decision making.
•Data warehouses integrates information for various
operational databases to select only the information
required for the decision-making.
•Data stored in database warehouses is always old
data and does not need regular updating.
•It is also used to record historical data about
customers, their bills, transactions, hours worked, etc.
•Another way of organizing data in warehouses is as a
multi-dimensional database (MDDBs).
ORGANIZING AND ANALYZING DATA:
• Data mining :
- is the process of data selection, exploration, and building of
modes using vast data stores to uncovered previous
unknown patterns.
- The must advanced type of data mining high-tech machine
learning artificial and intelligence tools .
-The data analysis can be categorized into four categories:
• standard query reporting
• multi-dimensional analysis
• statistical analysis
• artificial intelligence
The data analysis can be categorized into four
categories:
1
standard query reporting
4
artificial intelligence
2
multi-dimensional analysis
3
statistical analysis
6
E-Commerce and Data Mining :
• Data mining effects e-commerce site as from data
mining companies knew customer behavior and
their preferences,
• therefore, they make the right decision about the
products customer want and make it available on
their sites.
• These systems also generate a list of other related
products that they feel customers would like to
purchase because of their irrelativeness or as those
other products complement main products.
INTEGRATING BUSINESS PROCESSES, DATA, AND
APPLICATIONS:
Another important technology involves the increased integration between business
processes, applications, and data. These technologies are as under:
• Enterprise Resource Planning System (ERP) :
which helps in accounting, marketing, human resources, planning and
manufacturing processes.
• Integration of the supply chine through E-Commerce :
E-commerce between businesses enables companies to exchange
commercial documents that can go directly into the companies
computer systems.
• Customer Relationship Management Systems (CRM).
Emphasize the integration of all customer-facing application including
marketing, sales, and service.
IT AND BUSINESS PROCESSES: RISK
AND CONTROLS :
• Privacy: is a key concern with modern information
system.
• Data collection : the key types of data collected by
on-line system include :1-cookies,2-IPaddresses.3personally.
• User control: there are two broad approaches to
privacy in terms of giving control over data
collection to user. the first one is “opt in” which
business agree not to collect or use personal data .
The second one “opt out” assume that you want to
participate and you must explicitly forbid a site to
collect information about you .
IT AND BUSINESS PROCESSES: A ROLE
FOR ACCOUNTANT :
Accountants can use their knowledge of a client`s
business and processes and specialized accounting ,
auditing , and IT knowledge to help businesses use
IT effectively. accountants can help businesses in
the following areas:
• Assurance service .
• Analyze IT investments .
• Design and implement IT solution.
• Enhance value of current services.
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