Accounting Information Systems Final Exam

Internal Hardware

- can determine level of control/security/privacy -management +staff in house -capacity limited -fixed costs -tailored

Role of AIS/IT in BS Framework

-BS recognizes diff b/w investments in IT and capabilities created by that technology -information capital in L&G perspective is intangible, reflects readiness of org's tech - IC includes: computing hardware, infrastructure, applications & employees ability to use tech

Enterprise IT Examples

-CRM systems -ERM systems -Business intelligence systems

Type Images

-apply guidelines, constraints, and descriptive information to their resources, events, and agents to help manage the business process -also support summarization of the economic activity to support management's information requirements

Primary Key

-attribute or combination of attributes that uniquely identifies each instance in a class or row in a table -cannot be blank -controlled by organization that controls it so it won't change over time

eXtensible Business Reporting Language (XBRL)

-based on the XML language, a standard for Internet communication between businesses -uses: reporting on the firm's web site, filing to regulators (SEC, IRS, etc.) and providing information to other interested parties

Types Of Business Models

-business process models -structure models -activity models

Attributes

-data elements that describe the characteristics of instances in a class (or rows in a table) -include the primary keys that uniquely define instances of the class, foreign keys that support the links between classes shown in the associations, and other data elements for each class -specified in a table listing that accompanies each class diagram

Direct Approach

-disastrous if not carefully tested, could force users to learn new system b/c no old system -decrease user satisfaction b/c users don't like the change -most risk, least control -old then new

Value of Business Models

-graphical representations present information more concisely and clearly than a written description -manage complexity by incorporating only the essential elements -elicit requirements when used to interview involved parties -reconcile viewpoints by providing an integrated view -simulate potential changes -specify requirements for the actual business process

Parallel Approach

-output of two systems compared; old system not abandoned until users satisfied with new system -least risk, most control -old, then old+new, then new

Structure Models (UML, REA)

-overall, high-level blueprint -describe the data and information structures inherent in a business process. -create a blueprint for the development of a relational database to support the collection, aggregation, and communication of process information. -facilitate the use of databases after they are implemented.

BPMN Gateways

-show process branching and merging as the result of decisions -usually appear as pairs on the diagram; first shows the branching, second shows merging of the process branches DIAMONDS

Balanced Scorecard

-strategic planning/mgmt system -used extensively in business and industry, gov't and nonprofit orgs -aligns business activities to vision/strategy of org -improves communication -monitors org. performance against goals

Data Mining

-technique used to analyze data for business intelligence purposes -a process using sophisticated statistical techniques to extract and analyze data from large databases to discern patterns and trends that were not previously known

Information Value Chain

-the overall transformation of data from a business need to the ultimate decision -Need/Event -> data -> information -> knowledge -> decision

External Hardware

-varied level of control if many companies use same hardware -management/staff provided -addt'l capacity available -variable costs -tailoring varies

Activity Models describe...

...-events that start, change, or stop flow in the process -activities and tasks within the process -the sequence of flow between tasks -decision points that affect the flow -division of activity depending on organizational roles

XBRL serves as a means to...

...electronically communicate business information to facilitate business reporting of financial and nonfinancial data to users - greatly enhances speed/accuracy of business reporting

AIS is important because...

...it provides information that companies are required to have and also information that can be used to make important decisions

AIS usually serves as...

...the foundation for the enterprise (or ERP) system

BS Four Perspectives

1. financial perspective 2. customer perspective 3. business process perspective 4. learning & growth perspective

XBRL Assurances

1. most accurate XBRL taxonomy used 2. underlying financial/non-financial data is reliable 3. XBRL tagging accurate 4. reports using XBRL are complete and timely received

Three main differences of Big Data

1. volume 2. velocity 3. variety

Two types of Business Models

1.Activity Model (Business Process Modeling Notation) 2. Structure Model (Unified Modeling Language, REA)

Access IF Function

IIF ( )

Access Increased Wage Formula (new field)

Increased Wage: [Wage Rate]*1.1

Enterprise Resource Planning (ERP)

a centralized database that collects data from throughout the company including orders, customers, sales, inventory, and employees; information available to everyone in a useful and timely way

Field

a column of data

Record

a row of data

Accounting Information System (AIS)

a system that records, processes and reports on transactions to provide financial and non-financial information to make decisions and have appropriate levels of internal controls (security measures to protect sensitive data) for those transactions

Entity

a tangible thing or event (employees, customers, inventory, sales, hours worked)

Diagnostic Analytics

aid in assessing why certain events and results occurred

Network IT

allows people to communicate w/ one another

Spurious Correlation

an apparent but false relationship between two (or more) variables that is caused by some other variable ex: ice cream sales correlated to drowning? due to warm weather

Learning & Growth Perspective

are we able to sustain innovation, change and improvement? - emphasized for product leadership strategy

Data Warehouse

collection of information gathered from an assortment of external and operational (i.e., internal) databases to facilitate reporting for decision making and business analysis - often serve as the main repository of the firm's historical data -separate from operational database

Strategic Positioning

companies may choose a competitive strategy that seeks to obtain a relative advantage by emphasizing: 1. differentiation - customer intimacy - product/tech leadership 2. cost leadership - operational excellence

Table

consists of data that is arrayed in rows and columns

Composite Primary Key

consists of the primary key fields from the two intersecting relations; two variables are needed to uniquely identify each row

XRBL Instance Documents

contain the actual dollar amounts or the details of each of the elements within the firm's XBRL database

Information

data organized in a meaningful way to be useful to the user; data serves as an input

Query

database equivalent of a question that is posed about data in a table/tables

Data warehouses are often designed to facilitate...

decision making such as those often used in managerial accounting

XRBL Taxonomy

defines and describes each key data element (e.g., total assets, accounts, payable, net income, etc.)

UML Associations

depict the business relationship between two classes

UML Multiplicities

describe the minimum and maximum number of times instances of one class can be associated with instances in another class (1,N) Min: 0 or 1 Max: 1 or N

Activity Models (BPMN)

detailed, sequential picture, standard; standardized way of documenting processes -used to analyze business processes and design changes since well before 1920 -describe the sequence of workflow in a business process -represent the sequential flow and control logic of a set of related activities -tools for planning, documenting, discussing, and implementing systems

Collaboration Model

focuses on the message flows between the pools; clarifying interaction between pools

Predictive Analytics

help businesses determine what will most likely happen based on a series of variables

Descriptive Analytics

help businesses understand what has happened and what's happening right now in an organization

Prescriptive Analytics

help develop a course of action in response to a series of events - what should happen and what is the best option

Customer Perspective

how do we look to our customers? -emphasized for customer intimacy strategy

Financial Perspective

how do we look to our shareholders?

BPMN Swimlanes

identify departments or individuals; activities assigned to one participant to show responsibility show functional responsibilities

BPMN Pools

identify organizations; each must include at least one start and one end; sequence flow can't break b/w start and end

BPMN Events

include start, intermediate, and end events; intermediate events affect the flow of a process, but do not start or end

Buy Software

less costly + standard

Make Software

more costly + customized

ET: Solver

optimization tool (such as profit maximization or cost minimization): what are the optimal choices/paths given the constraints

Calculated Field

output field made up of over fields; created in the query generator

Function IT

performs a single function, such as enhancing worker productivity for standalone tasks ex: spreadsheets

Modular Approach (Phased Approach)

pilot testing and and elimination of any problems discovered before the full implementation -combine safety of parallel and cost/time saving of direct - old at time A, next at time B, next at time C

Updating Query

queries that update the original data in a database

BPMN Activities

represent specific steps in the business process; basic activities modeled as rounded RECTANGLES

BPMN Sequence Flows

represented by arrows to indicate the progression of activity within the process

REA Model

resource (classes), event, agents

Sunset Graphics REA Model

resources: products/cash events: quote, order, cash receipt agents: customers & sunset partner

Enterprise IT

restructures interactions within the organization as well as with external partners

UML Class

separately identifiable collections of things about which the organization wants to collect and store information; can represent org resources, people, events

Purpose of Swimlanes

show different jobs in the purchase process; show functional responsibilities

Data

simply raw facts that describe an event and have little meaning on their own

Customer Relationship Management (CRM)

software used to manage interactions with customers -track customer purchases -ensure customer satisfaction -analyze customer preferences

Supply Chain Management (SCM)

software used to optimize processes within the supply chain -determine levels of inventory in stock and to be ordered -determine timing to transferring inventory

XRBL Style Sheets

take the instance documents and add presentation elements to make them readable by humans

Select Query

they select certain data from specific tables based on a given criteria

Parameter Query

type of select query that finds the same kind of information repeatedly, but about different entities each time

Enterprise systems are often implemented using which approach?

using the direct approach

ET: Prediction/Trends

what are the most likely outcomes/paths in the future given the past data?

ET: Scenario Manager

what are the potential outcomes/paths in the future?

Business Processes

what business processes are the value drivers? -emphasized for operational excellence strategy