Henry Sy and John Gokongwei Swot Analysis
Chapter 1:
Accounting Information Systems:
An Overview 1. SYSTEMS, DATA, AND INFORMATION 1) A system is: (1) A set of interrelated components (2) That interact (3) To achieve a goal a) Most systems are composed of smaller subsystems . . . b) Every organization has goals. c) The susbsystems should be designed to maximize achievement of the organization’s goals d) Even to the detriment of the subsystem itself i) EXAMPLE: The production department (a subsystem) of a company might have to forego its goal of staying within its budget in order to meet the organization’s goal of delivering product on time. e) Goal conflict occurs when the activity of a subsystem is not consistent with another subsystem or with the larger system. f) Goal congruence occurs when the subsystem’s goals are in line with the organization’s goals. g) The larger and more complicated a system, the more difficult it is to achieve goal congruence. h) The systems concept encourages integration (i.e., minimizing the duplication of recording, storing, reporting and processing). 2) Data are facts that are collected, recorded, stored, and processed by an information system. i) Organizations collect data about: ii) Events that occur iii) Resources that are affected by those events iv) Agents who participate in the events j) Information is different from data. k) Information is data that have been organized and processed to provide meaning to a user. l) Usually, more information and better information translates into better decisions. m) However, when you get more information than you can effectively assimilate, you suffer from information overload. (4) Example: Final exams week! n) When you’ve reached the overload point, the quality of decisions declines while the costs of producing the information
Accounting Information Systems:
An Overview 1. SYSTEMS, DATA, AND INFORMATION 1) A system is: (1) A set of interrelated components (2) That interact (3) To achieve a goal a) Most systems are composed of smaller subsystems . . . b) Every organization has goals. c) The susbsystems should be designed to maximize achievement of the organization’s goals d) Even to the detriment of the subsystem itself i) EXAMPLE: The production department (a subsystem) of a company might have to forego its goal of staying within its budget in order to meet the organization’s goal of delivering product on time. e) Goal conflict occurs when the activity of a subsystem is not consistent with another subsystem or with the larger system. f) Goal congruence occurs when the subsystem’s goals are in line with the organization’s goals. g) The larger and more complicated a system, the more difficult it is to achieve goal congruence. h) The systems concept encourages integration (i.e., minimizing the duplication of recording, storing, reporting and processing). 2) Data are facts that are collected, recorded, stored, and processed by an information system. i) Organizations collect data about: ii) Events that occur iii) Resources that are affected by those events iv) Agents who participate in the events j) Information is different from data. k) Information is data that have been organized and processed to provide meaning to a user. l) Usually, more information and better information translates into better decisions. m) However, when you get more information than you can effectively assimilate, you suffer from information overload. (4) Example: Final exams week! n) When you’ve reached the overload point, the quality of decisions declines while the costs of producing the information