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According to Theory of the Firm why were firms established?
Because it was profitable to do so.
What are the 4 drivers of business and information system change?
- Advances in technology
- Outsourcing & downsizing
What are the 3 components of design?
- Determine objectives
- Determine what needs to be done to achieve the objectives
- Chose the best components
What is a system?
A set of two or more interrelated components that interact to achieve a goal.
What is it called when a subsystem is inconsistent with the goals of another subsystem or the system as a whole?
What is it called when a subsystem achieves its goals while contributing to the organisation's overall goal?
What is data?
A set of facts that are collected, recorded, stored and processed by an information system.
What is information?
Data that has been organised and processed to provide meaning and improve decision making.
What is it called when there is more information available than the human mind can process?
What are the ten characteristics of useful information?
What information characteristic means that uncertainty is reduced and decision making is improved?
What information characteristic means that information is free from error and bias?
What information characteristic means that the transactions generated by the system exist?
What information characteristic means that only the transactions authorised by the firm are processed?
What information characteristic means that the information does not omit any important aspect or events?
What information characteristic means that information is available in time for decision making?
What information characteristic means that transactions processed by the system are measured accurately?
What information characteristic means that information is presented in a useful and intelligible format?
What information characteristic means that two independent people can produce the same information?
What information characteristic means that information is available to users when they need it?
What are the 5 business processes/transaction cycles?
- Revenue cycle
- Expenditure cycle
- Human resources management cycle
- Production cycle
- Financing cycle
What occurs in the revenue cycle?
Goods or services are sold for cash or credit.
What occurs in the expenditure cycle?
Inventory is purchased for resale or raw materials purchased for production.
What occurs in the human resources management cycle?
Employees are hired, trained, promoted and terminated.
What occurs in the production cycle?
Raw materials are transformed into finished goods.
What occurs in the financing cycle?
Shares are sold and dividends paid to investors, money is borrow and interest is paid.
What are the 6 components of an AIS?
- Procedures & instructions
- IT infrastructure
- Internal controls & security measures
What are the 3 business functions that an AIS fulfils?
- Collect & store data
- Transform data into information
- Provide controls & safeguards
What are the 6 ways an AIS can add value to an organisation?
- Improving quality & reducing costs of products & services
- Improving efficiency
- Sharing knowledge
- Improving efficiency & effectiveness of its supply chain
- Improving internal control structure
- Improving decision-making
What are the 5 primary activities of the value chain?
- Inbound logistics
- Outbound logistics
- Marketing & sales
What are the 4 support activities of the value chain?
- Firm infrastructure
- Human resources
What are the steps in the supply chain?
- Raw materials supplier