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2 or more interrelated components that interact to achieve a goal.
What are most systems composed of?
Smaller subsystems that support the larger system.
When a subsystem's goals are inconsistent with the goals of another subsystem or the system as a whole.
When a subsystem achieves its goals while contributing to the organization's overall goal.
The larger and more complicated the system is, the harder it is to obtain...
Facts that are collected, recorded, stored, and processed by a system.
Data that have been organized and processed to provide meaning and improve decision making.
What happens when the quantity and quality of information increases?
Better decisions are made.
When the amount of information a human mind can absorb and process is exceeded.
Information overload results in what 2 things? (DI)
- 1. A decline in decision-making quality
- 2. An increase in the cost of providing information. (?)
Computers and other electronic devices that are used to store, retrieve, transmit, and manipulate data.
Information technology (IT)
The value of information is the... (formula)
Benefit produced by the information - The cost of producing it.
3 benefits of information. (RII)
- 1. Reduced uncertainty
- 2. Improved decisions
- 3. An improved ability to plan and schedule activities
The 2 costs of producing information are...
the time and resources that were spent.
7 Characteristics that make information useful and meaningful. (RRCTUVA)
- 1. Relevant
- 2. Reliable
- 3. Complete
- 4. Timely
- 5. Understandable
- 6. Verifiable
- 7. Accessible
A set of related, coordinated, and structured activities and tasks, performed by a person, computer, or machine that help accomplish a specific organizational goal.
An agreement between 2 entities to exchange goods or services or any event that can be measured in economic terms.
The process that begins with capturing transaction data and ends with informational output.
Give-get exchanges are grouped into what 5 major business processes/transaction cycles? (REPHF)
- 1. Revenue cycle
- 2. Expenditure cycle
- 3. Production/Conversion cycle
- 4. HR/Payroll cycle
- 5. Financing cycle
The cycle that consists of goods and services being sold for cash or a promise to receive cash in the future.
The cycle that involves incurring costs to get goods ready.
The cycle that consists of raw materials being transformed into finished goods.
The cycle that involves employees being hired, trained, compensated, evaluated, promoted, and terminated.
The cycle that consists of companies selling shares in the company to investors and borrow money, and where investors are paid dividends and interest is paid on loans.
A system that collects, records, stores, and processes data to produce information for decision makers.
6 components of an AIS. (PPDSII)
- 1. The people who use the system
- 2. The procedures used
- 3. The data about the organization
- 4. The software used
- 5. The IT infrastructure
- 6. The internal controls and security measures
The 6 components of an AIS enable it to fulfill what 3 business functions? (CTP)
- 1. Collect and store data about org. activities
- 2. Transform data into information
- 3. Provide adequate controls to safeguard assets and data
6 ways an AIS can add value to an organization. (IISIII)
- 1. Improves quality and reduces cost of products/services
- 2. Improves efficiency
- 3. Shares knowledge
- 4. Improves efficiency and effectiveness of supply chain
- 5. Improves internal control structure
- 6. Improves decision making
Making a wise decision requires...
an understanding of the organization's overall business strategy.
3 factors that influence the design of an AIS. (OBI)
- 1. Organizational culture
- 2. Business strategy
- 3. IT
The use of data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities.
The linking together of all the primary and support activities in a business.
When is value added in the value chain?
As a product passes through the chain.
5 primary activities in the value chain. (IOOMS)
- 1. Inbound logistics
- 2. Operations
- 3. Outbound logistics
- 4. Marketing and sales
- 5. Service
These allow the primary activities in a value chain to be performed effectively and efficiently.
4 support activities in a value chain. (FHTP)
- 1. Firm infrastructure
- 2. HR
- 3. Technology
- 4. Purchasing
The financing cycle deals with...
debt and equity.