AIS an Overview
AIS an Overview
Systems: An Overview
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LEARNING OBJECTIVES
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AIS - WHAT IS A SYSTEM?
• System
• A set of two or more
interrelated components
interacting to achieve a
goal
Process
• Goal Conflict 1
• Occurs when components
act in their own interest
without regard for overall
goal
Goal
• Goal Congruence Process
• Occurs when components 2
acting in their own interest
contribute toward overall
goal
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Q1. in a co – what components make up a co?
Q2. in UPSI – what components make up a university?
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DATA VS. INFORMATION
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DATA VS. INFORMATION
Example:
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VALUE OF INFORMATION
BENEFITS COSTS
• Reduce Uncertainty • Time & Resources
• Improve Decisions • Produce Information
• Distribute Information
• Improve Planning
• Improve Scheduling
Benefit $’s > Cost $’s
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• Timely
• Provided in time for decision makers to make
decisions
• Understandable
• Presented in a useful and intelligible format
• Verifiable
• Two independent, knowledgeable people
produce the same information
• Accessible
• Available to users when they need it and in a
format they can use
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Organizational Decisions And Information
Needed
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INTERACTIONS BETWEEN AIS AND INTERNAL
AND EXTERNAL PARTIES
Production
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BUSINESS PROCESS CYCLES
Transactions between the business organization and
external parties fundamentally involve a “give–get”
exchange. These basic business processes are:
• Revenue
• Expenditure
• Production
• Human Resources
• Financing
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BUSINESS TRANSACTIONS
• Give–Get exchanges
• Between two entities
• Measured in economic terms
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ACCOUNTING INFORMATION
SYSTEMS (AIS)
card)
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VALUE CHAIN
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PRIMARY ACTIVITIES
• 5 Primary Activities that directly provide value to its
customers:
• Inbound logistics consists of receiving, storing, and distributing
the materials an organization uses to create the services and
products it sells.
• Operations activities transform inputs into final products or
services
• Outbound logistics activities distribute finished products or
services to customers.
• Marketing and sales activities help customers buy the
organization’s products or services.
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Service activities provide post-sale support to customers.
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SUPPORT ACTIVITIES
• Support activities allow the primary five activities to be
performed efficiently and effectively. There are 4
Categories of Support Activities:
• Firm infrastructure is the accounting, finance, legal, and general
administration activities that allow an organization to function.
• Human resources activities include recruiting, hiring, training,
and providing employee benefits and compensation
• Technology activities improve a product or services includes
R&D, investment in IT & product design.
• Purchasing activities procure raw materials, supplies, machinery,
and the buildings used to carry out the primary activities.
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MIS VS AIS
• While MIS (management information system) is used to boost
management efficiency and effectiveness, AIS (a.k.a.
accounting information system) is an automated system utilized
by an organization to handle a company's accounting.
• AIS focuses on financial and accounting data, while MIS
focuses on operational data. AIS is used by accountants and
financial professionals, while MIS is used by managers and
executives. AIS is primarily concerned with the accuracy and
completeness of financial data, while MIS is concerned with the
relevance and timeliness of operational data.
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CONT’D
• MIS (Management Information Systems) and AIS (Accounting
Information Systems) are both crucial information systems
within an organization, but they serve different purposes:
• MIS is broader, focusing on operational data to aid managers
and executives in decision-making. It is concerned with the
relevance and timeliness of operational data.
• AIS is more specific, dealing with financial and accounting
data. It is used by accountants and financial professionals,
emphasizing the accuracy and completeness of financial data.
• AIS is often considered a subset of MIS because the financial
information from AIS is critical for the overall management
information that MIS provides
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THANK YOU 1-25