Term
| IT's role in organizations |
|
Definition
| Where once the use of IT was restricted to financial applications, over the last 40 years it has permeated every area of the modern organization. |
|
|
Term
| information technology (IT) |
|
Definition
refers to the electronic storage, retrieval, and manipulation of data;
its conversion into human-usable form (information);
and its transmission from one point to another. |
|
|
Term
| IT (for CPA exam purposes) |
|
Definition
| synonym for computers, computer networks, and the use of computer programs (software). |
|
|
Term
|
Definition
People - Hardware - Hardware - People
Data Software Data Software
Network (not including people) |
|
|
Term
|
Definition
| any physical item that comprises a computer system; anything in IT that can be touched |
|
|
Term
|
Definition
| combination of computer programs that manipulate data and instruct the hardware on what to do; anything in IT that is intangible and/or is NOT hardware |
|
|
Term
|
Definition
collection of hardware devices that are interconnected so they can communicate among themselves
allows different hardware to share software and communicate data
Internets and intranets are networks. |
|
|
Term
|
Definition
| information, not instructions, that are stored in hardware |
|
|
Term
|
Definition
| anyone who uses hardware (computer and computer system) |
|
|
Term
| four major tasks of information systems (ITOS) |
|
Definition
input- capture data
transformation- convert data into information
output- communicate data to people
storage- of data in database |
|
|
Term
| business information system (BIS) |
|
Definition
combination of hardware, software, data, people and procedures employed to pursue an organizational objective
Like IT, it started in the finance function but is now used in every area of the organization. |
|
|
Term
|
Definition
| those who affect, or are affected by the IS output, including managers, employees, suppliers, and customers |
|
|
Term
| three strategic roles of BIS |
|
Definition
Support business processes and operations.
Support decision making.
Support managers in planning for the future. |
|
|
Term
| growing prevalence of electronic communication or networks (interconnected hardware devices) |
|
Definition
Computer-based systems have been woven into almost every facet of the modern organization.
The use of high-speed communications networks has enabled the growth of the truly global organization.
Organizations can use social networking sites to disseminate information and gather feedback. |
|
|
Term
| growing prevalence card 2- rich site summary (RSS) |
|
Definition
| allows for a website's content that changes often to be pulled and fed automatically to a user's computer. This saves the user the need to constantly revisit the site to get the latest information. |
|
|
Term
|
Definition
| all software and data are stored on the internet |
|
|
Term
| transaction processing system (TPS) |
|
Definition
| most common type of system used in the BIS environment; TPS captures fundamental data that reflect the economic life of an organization; example of TPS includes an accounting information system (AIS). |
|
|
Term
| distributed data processing |
|
Definition
| information processing made possible by a network of computers dispersed throughout an organization |
|
|
Term
| transaction processing modes |
|
Definition
| way in which a system is updated with new data. |
|
|
Term
|
Definition
transactions are accumulated and sent to the computer as a single "batch."
Batch processing is usually restricted to TPSs and systems that get output from TPSs. |
|
|
Term
| How long does batch processing take? |
|
Definition
| Time delay between batching and updating of the record can be overnight. Thus, errors in this system may not be detected immediately. |
|
|
Term
|
Definition
| computer processes each transaction individually as the user enters it; the user is in direct communication and feedback on the acceptance/rejection of the transaction is provided immediately. |
|
|
Term
| hybrid batch/online processing |
|
Definition
users continually enter transactions in online mode throughout the day, collecting them in batches.
The computer can then take advantage of the efficiencies of batch mode overnight when there are fewer users logged into the system. |
|
|
Term
|
Definition
| provide the latest information for systems in which up-to-date information is necessary to create immediate decisions. |
|
|
Term
| advantages of centralized IT infrastructure |
|
Definition
| better and more efficient security; consistent processing because it occurs at a set time in one location. |
|
|
Term
| advantages of decentralized IT infrastructure |
|
Definition
| remote locations have increased accountability over their data and processes; remote locations an get data without concern of bottlenecks of traffic over networks |
|
|
Term
|
Definition
| process of entering data into an information system |
|
|
Term
|
Definition
| loading a group of records at one time. |
|
|
Term
|
Definition
| involves entering single records, usu. in an interactive environment where the user gets immediate feedback. |
|
|
Term
|
Definition
| one type of online entry for capturing input |
|
|
Term
| point-of-sale (POS) transaction systems |
|
Definition
myriad uses, from forecasts, demand, customer service, promotions, demographics, promotions.
Besides instant updating of accounting and inventory records, POS transaction systems can help management identify and respond to forecast trends, make sales forecasts, determine which products are or are not in demand, improve customer service, target products and promotions to customers with different demographic traits and evaluate the effects of promotions, including coupons and work with warehousing. |
|
|
Term
| processing/transformation |
|
Definition
| act of converting raw data into usable information. This is performed by the combination of hardware and software that makes up the organization's IT infrastructure. |
|
|
Term
|
Definition
| can be fairly static or very volatile |
|
|
Term
|
Definition
| authorized vendor file; doesn't change much |
|
|
Term
|
Definition
| G/L file; changes quite often |
|
|
Term
|
Definition
| relative frequency with which the records in a file are inserted, updated, or deleted during a period |
|
|
Term
|
Definition
| contains the data that reflect ongoing business activity |
|
|
Term
| Do transaction files and master files interact? If so, give an example. |
|
Definition
Constantly.
Before an invoice can be paid, the payables transaction file must be matched against the vendor master file to see whether the vendor really exists. |
|
|
Term
|
Definition
| In general, a report refers to a printed hardcopy; advances in technology allow for report viewing on and printing from a computer. |
|
|
Term
|
Definition
| certain reports are required at regular intervals. |
|
|
Term
|
Definition
| one whose design is programmed into the system; user specifies the date and time the report is run. |
|
|
Term
|
Definition
| can be designed to the user's own specifications w/out the involvement of IT personnel; user specifies the date and time the report is run. |
|
|
Term
|
Definition
daily practice; finding outliers in a batch of daily transactions
common practice after daily processing to generate reports of transactions or activities that lie outside predefined boundaries; appropriate personnel can then follow up. |
|
|
Term
|
Definition
| rather than wait for paper copies to be hand delivered, reports can be sent digitally to the appropriate personnel. |
|
|
Term
|
Definition
| crucial part of monitoring security over a system; includes reports already described plus reports as longs of system sign-in and sign-out times to monitor who was doing what on the system. |
|
|
Term
| management information system (MIS) |
|
Definition
| MIS typically receives input from a TPS, aggregates it, then reports it in a format useful by middle management in running the business. For this reason, MISs are often classified by function or activity. |
|
|
Term
|
Definition
| single-function/division MIS; limited focus, and are gradually being replaced by integrated systems that link multiple business activities across the enterprise. |
|
|
Term
| accounting information system (AIS) |
|
Definition
| subset of MIS that processes routine, highly structured financial and transactional data relevant to cost and financial accounting |
|
|
Term
| What is AIS concerned with? |
|
Definition
F/S reported in conformity w/GAAP
Internal activities recorded in cost accounting system.
Preparation of related reports and analyses. |
|
|
Term
| What is the best set of documentation for an AIS for a mfg. organization? |
|
Definition
| purchase orders, purchase requisitions, receiving reports, and vendor invoices. |
|
|
Term
| enterprise resource planning (ERP) |
|
Definition
| latest computerized management program; intended to integrate enterprise-wide information systems by creating one database linked to all of an organization's applications. |
|
|
Term
|
Definition
the reengineering needed for its implementation should improve business processes.
ERP subsumes traditional MISs. |
|
|
Term
|
Definition
| subsystems share data and coordinate their activities. |
|
|
Term
| subsystems (in traditional ERP) |
|
Definition
| internal to the organization. The information produced is principally intended for internal use by the organization's managers. |
|
|
Term
|
Definition
| prepare reports for internal use by organization's managers (subsystems do this). |
|
|
Term
|
Definition
| connect the organization with customers, suppliers, owners, creditors, and strategic allies. |
|
|
Term
|
Definition
| extent and complexity, which make implementation difficult and costly. |
|
|
Term
|
Definition
| centralized database for transaction-level data from more than one of the organization's TPSs (relates data from multiple systems) |
|
|
Term
| What does a data warehouse do? |
|
Definition
| Strictly a query-and-reporting system; not used for routine operations. Data warehouses store a large quantity of data and require that the transaction records be converted into a standard format. |
|
|
Term
| online analytical processing (OLAP) |
|
Definition
| technique through which data warehouse can be accessed using analytical and graphics tools |
|
|
Term
|
Definition
| important component of OLAP; user is first presented with data at an aggregate level and then can display successive levels of detail for a given date, region, product, etc. until finally reaching the original transactions (deductive- general to specific) |
|
|
Term
|
Definition
search for unexpected relationships among data
Database – extract, transform, and load (ETL) – Data Warehouse – OLAP Tools and Data Mining are both on the same level. |
|
|
Term
| decision support system (DSS) |
|
Definition
| examines the relevant data and presents a manager with choices between alternative courses of action. The DSS solves the structured part of the problem and gives alternative courses of action for the unstructured part, so DSS is best used with semi-structured problems. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| contains raw data that are relevant to the decision; in this context, a data warehouse is very useful. The data can come from both within and outside of the organization. |
|
|
Term
|
Definition
| set of equations, comparisons, graphs, conditions, assumptions, etc. into which the data will be fed. |
|
|
Term
|
Definition
user specifies which data goes into which model
user interface that allows the user to specify the appropriate model and the particular set of data to which the model should be applied |
|
|
Term
|
Definition
| aids in the collaborative solution of unstructured problems; users in separate areas of the organization can specify parameters pertinent to their functions. |
|
|
Term
| artificial intelligence (AI) |
|
Definition
| computer software designed to perceive, reason, and understand |
|
|
Term
|
Definition
| Boolean expressions, but human reasoning is more complex than that. |
|
|
Term
|
Definition
| AI attempts to imitate decision making, which hinges on this combination of knowledge and intuition. |
|
|
Term
|
Definition
| can work 24 hours a day; will not become idle, die, or be hired away; are extremely fast processors of data, especially if numerous rules (procedures) must be evaluated |
|
|
Term
|
Definition
| neural networks, case-based reasoning systems, rule-based expert systems, intelligent agents, expert system |
|
|
Term
|
Definition
| collection of processing elements working together to process information much like the human brain, including learning from previous situations and generalizing concepts. |
|
|
Term
| case-based reasoning systems |
|
Definition
| use a process similar to that used by humans to learn from previous, similar experiences |
|
|
Term
| rule-based expert systems |
|
Definition
| function on the basis of set rules to arrive at an answer; these cannot be changed by the system itself; they must be changed by an outside source. |
|
|
Term
|
Definition
| programs that apply a built-in or learned knowledge base to execute a specific, repetitive, and predictable task |
|
|
Term
|
Definition
| interactive system that attempts to imitate the reasoning of a human expert in a given field; useful for addressing unstructured problems when there is a local shortage of human experts |
|
|
Term
| expert support system (ESS) |
|
Definition
| Assists senior management in making nonroutine decisions, such as identifying problems and opportunities, and provides information about competitors' activities. |
|
|
Term
| From where does an ESS retrieve information? |
|
Definition
| Sources both within and outside the organization, including information from nontraditional computer sources. |
|
|
Term
|
Definition
Should have the ability to provide overviews- often as graphs- to drill down to the detailed data (deductive- general to specific).
Can be used on computers of all sizes. |
|
|
Term
| business intelligence (BI) |
|
Definition
| BI gives upper management the information it needs to know where the organization is and how to steer it in the intended direction. BI gives an executive immediate information about an organization's critical success factors. |
|
|
Term
|
Definition
|
|
Term
|
Definition
BI tools display information about the organization in a format considered appropriate to upper management's decision making.
BI tools use data from within and outside the organization. |
|
|
Term
|
Definition
| displays of information for decision making that are grouped by a particular executive's needs |
|
|
