Exam 1 Chapters 1-2-4 Flashcards
What is a System?
A system is a set of two or more interrelated components that interact to achieve a goal.
Systems are almost always composed of smaller subsystems, each performing a specific function supportive of the larger system.
What is Data?
Data are facts collected, recorded, and stored in the system.
A fact could be a number, date, name and so on.
For example: 2/22/19, ABC company and 123, 99, 3, 20, 60
What is considered information?
If you can organize the data within a context of a sales invoice, for example it is meaningful and considered information.
Decision quality
Usually more information and better information translates into better decisions
What is information overload?
Information overload is when you get more information then you can effectively assimilate, which can also reduce decision quality
What is information technology (IT)?
IT is used to help decision makers more effectively filter and condense information
Value of Information
Information is valuable when the benefits exceed the costs of gathering, maintaining, and storing the data
Value of information =
Benefit (improved decision making) - Cost (time and resources used to get the information) = value of information
14 characters to make information useful first 7
- Access restricted- limit access to authorized parties
- Accurate- accurate, correct, and free of error
- Available- available to users when needed
- Reputable- perceived as true and credible
- Complete- does not omit important aspects of events or activities.
- Concise- clear, succinct, brief, but comprehensive
- Consistent- presented in the same format over time
What makes information useful next 7
- Current- up to present data and time
- Objective- unbiased, unprejudiced, and impartial
- Relevant- reduces uncertainty and improves decision making
- Timely- provided in time for decision maker to make decisions
- Useable- easy to use for different task
- Understandable- easily comprehended and interpreted
- Verifiable- two independent people can produce the same information
Machine- reader format
Data is most useful when it is in a machine- reader format that be can read and processed by a computer.
Example of machine readeable format
XBRL- can improve many of the characteristics that make information useful
Business Process
A business process is a set of related, coordinated and structured activities and tasks performed by people, machines or both to achieve a specific organizational goal.
Transactions
Transactions are an agreement between two entities (internal and external stakeholders) to exchange goods, services, or any other event that can be measured in economic terms by an organization.
Internal Stakeholders
Are employees in the organization (employees and managers)
