4. Information technology and information systems in business Flashcards
define data.
numbers, letters and transactions that have been recorded but not yet processes into a form that is suitable for making decisions.
define information.
data that has been processed that can be used to make decisions.
why do managers require information? (4)
- to make informed decisions
- to monitor performance
- to analyse what is happening in the business
- to provide records
who is information most commonly shared with? (4)
- shareholders
- government agencies
- customers
- employees
good information is… (8)
ACRONYM
Accurate Complete Cost effective Understandable Relevant Adaptable Timely Easy to use
what is the difference between information systems (IS) and information technology (IT)
information systems refer to the management of information whereas information technology is any equipment used concerned with data.
in relation to the three types of management, what data is needed?
strategic: long-term planning
tactical: summarised
operational: in-depth
what types of information systems are used at each level of management? (3)
- strategic: management information systems (MIS) and executive information systems (EIS) used.
- tactical: management information systems (MIS)
- operational: transaction processing system (TPS)
what is a TPS?
Transaction Processing System
- records daily transactions of the organisation
what is a MIS?
Management Information System
- convert TPS data into information for tactical managers
what is a DSS?
Decision Support System
- computer system that supports decision making. tailored to needs of particular business
what is an EIS?
Executive information system
- combines information from the entire business and relevant environment. summarised and detailed reports for strategic managers.
what is an ES?
Expert system
- used by higher levels of management for expert knowledge, such as by an accountant to calculate a tax liability.
what is a software application? what are the 3 named in the exam?
a computer programme that is designed to help users with certain tasks.
- spreadsheets
- databases
- accountancy packages
what are the advantages of computerisation? (6)
- speed
- accuracy
- amount/volume
- complexity
- cost
- presentation
what is cloud computing?
what are the benefits of cloud computing? (10)
computing that uses the internet rather than software, applications or services.
- store and share data
- on demand
- flexible
- collaboration
- competitive
- easier scaling
- reduced maintenance
- back-ups
- better security
- disaster recovery
what is artificial intelligence?
an area of computer science which creates intelligent machines to work like human beings.
what is machine learning?
algorithms that detect patterns and make predictions and recommendations.
what is machine learning used for in accounting? (4)
- code accounting entries
- fraud detection
- forecast revenue
- analyse unstructured data (i.e. contracts and emails)
what is big data?
term for a collection of data which is so large that it becomes difficult to store
what are the four Vs of big data? who said this?
Gartner
- volume
- variety
- velocity
- veracity (truthfulness)
what are the benefits of big data? (3)
- innovation
- gaining competitive advantage
- improving productivity
how is big data changing... management accounting? financial accounting? reporting? audit? (3)
management: control systems and budgeting
financial: control systems and budgeting
reporting: quality of accounting standards
audit:
- test entire populations
- better evidence
- higher risk and fraud occurrence
what is a block chain technology?
technology that allows people who do not know each other to trust a shared record of events.
