Professional Documents
Culture Documents
ACCOUNTING INFORMATION
SYSTEM
GENERAL LEDGER/
MGT. REPORTING
TPS FINANCIAL
SYSTEM
REPORTING SYSTEM
AIS SUBSYSTEM:
TRANSACTION PROCESSING SYSTEM
• Supports daily operations with numerous reports,
documents and messages for uses throughout the
organization
• Use to keep track of the basic activities and transactions
of the organization
• Sales, Receipts, Payroll, Cash deposits, expenses…
• Purpose: answer routine questions, track flow of
transactions
• NOTE: At operational level: tasks, resources and goals are
predefined and highly structured.
A TPS FOR PAYROLL
AIS SUBSYSTEM:
FINANCIAL REPORTING SYSTEM
• General Ledger/ Financial Reporting System
• Produces the traditional financial statements, such as
the income statement, balance sheet, statement of
cash flows, tax returns, and other reports required by
law
AIS SUBSYSTEM:
MANAGEMENT REPORTING SYSTEM
• Management Reporting System
• provides internal management with special-purpose
financial reports and information needed for decision
making such as budgets, variance reports, and
responsibility reports
THE MIS
• Note:
Management
requires
information
beyond the
capability of
AIS
THE MIS
MIS is a need!
Processes nonfinancial transactions
that are not normally processed by traditional AIS.
MANAGEMENT INFORMATION SYSTEM
SUBSYSTEM
• Components of a larger system
• With subgoals but contributing to the main goal
• Can receive input from, and transfer output to, other systems or subsystems
• Example: a business firm composed of different departments (subsystem)
CLOSED vs OPEN SYSTEM
• Closed system
• stands alone; no connection to another system; nothing flows in from another system;
nothing flows out to another system.
• Open system
• interfaces and interacts with other systems
• Have form and structure
• Adapt to changes in environment so as to continue to exist..
THE ORGANIZATION
Business
Value
Added
Automation
Providing support to complete a task faster, more
cheaply, and perhaps with greater accuracy and/or
consistency
Styles of Processing
• Manual Processing
• Technology Supported Processing
• Fully Automated Processing
ORGANIZATIONAL LEARNING:
DOING THINGS BETTER
• Organizational Learning (Informating)
• Providing support to improve day-to-day operations
by creating, acquiring, and transferring knowledge
Economic Impact
• IT changes both the relative costs of capital and the costs of
information.
• ISs can be viewed as a factor of production that can be substituted for
traditional capital and labor.
• As the cost of IT decreases, it is substituted for labor, which
historically has been a rising cost. Hence, IT should result in a decline
in the number of middle managers and clerical workers as IT
substitutes for their labor (Laudon, 1990).
• I.T.’s goal:
• to reduce cost in order for the organization to grow
• Thru: fast processing of data, information are easily produced,
analyze and distributed.
IMPACT OF INFORMATION SYSTEMS IN
ORGANIZATION AND BUSINESS FIRM
• IT Flattens Organizations
• Behavioral researchers have theorized that IT facilitates
flattening of hierarchies by broadening the distribution of
information to empower lower-level employees and increase
management efficiency
• IT pushes decision making lower in the org. Because
employees receive information they need to make decision
without supervision
• Some org have downsized and reduced the number of
employees
• Reduced also the number of levels in the organizational
hierarchies (even departments are merged)
THE BUSINESS INTELLIGENCE SYSTEM
• Staffing
• Job placement system based on experience, expertise and
education
• Employee skill inventory
• Employee benefit system
• salary forecasting
• Incentive management & planning
• Performance and promotion evaluation system
• Payroll reporting & management
MIS APPLICATION IN DISTRIBUTION