Chapter 2
CHAPTER 2: ORGANIZATIONAL INFORMATION SYSTEMS
1. General System Theory
It is a framework that can be used to help organizations identify critical aspects of their environment and the areas where information technology can play an important role.
I. Systems have inputs
II. Systems have outputs
III. Transformation Process
IV. Systems exist in an environment
V. Systems have boundaries
VI. Systems have feedbacks
2. Business Functions
i. Accounting – score keeping function
ii. Finance – responsible for acquiring and managing the source of capital for the company
iii. Marketing & Sales – Involves activities in identifying potential customer & customer preferences
iv. Production & Operations Management
v. Customer Support -
vi. Human Resource Management -
3. Legacy Information System
- It is a system that continues to be used because the organization does not want to replace or redesign it.
- is an old method, technology, computer system, or application program that continues to be used, typically because it still functions for the users' needs, even though newer technology or more efficient methods of performing a task are now available.
4. Enterprise Information System
- Enterprise resource planning systems are groups of software applications integrated to form enterprise information systems
5. The Systems Development Life Cycle
i. Systems planning
ii. Systems analysis
iii. Systems design
iv. Construction & Implementation
v. Systems Maintenance
6. Critics of Linear Systems Development Cycle
i. Phases may overlap
ii. Activities may have to be repeated
iii. Iterations are needed
iv. A great amount of time may have elapsed between the preliminary investigation and the final implementation
v. Technology requirement may have changed.
7. Accountants Roles in The Information Systems Development
i. Estimate the benefits accurately in order to determine the return on the systems investments.
ii. Evaluate business process transformation while mapping the business requirements
iii. Bridge communication gaps between top managers and functional managers by adding a sound business perspective to the considerations of information technology issues or vice-versa.
iv. Advise on control systems required to meet the needs of organization and management
v. Know it’s logical design as the logical design will form the blueprint of the system that will be implemented
vi. Participate in the various implementation of the new information system.
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