Presentation on theme: "A Business process approach"— Presentation transcript:
1 A Business process approach Accountinginformation systemA Business process approachFREDERICK L. JONESDASARATHA V. RAMAJones Rama
2 INTRODUCTION TO ACCOUNTING INFORMATION SYSTEMS King Saud UniversityHana Ali AL-Mughamis
3 Contents BUSINESS STRATEGY AND THE VALUE CHAIN IT and value-chain Management :IT AND MULTI-USER SYSTEMS:E-commerce and E-business :ORGANIZING AND ANALYZING DATA:INTEGRATING BUSINESS PROCESSES, DATA, AND APPLICATIONS:
5 Using Technology to Enhance Business Process This chapter shows how value-chain analysis can help a company design its processes to implant strategy, and how IT can facilitate communications between users
6 BUSINESS STRATEGY AND THE VALUE CHAIN Due to severe market competition, companies were forced to focus on improving their business process and IT systems effectiveness to stay competitive and survive. This involves considering all value activities which includes :Inbound logistics .Operations transform.Outbound logistics.marketing .services .
7 BUSINESS STRATEGY AND THE VALUE CHAIN All these activities require the support of human resources and the acquisition and application of information technology.
8 THE THREE GENERIC STRATEGIES FOR COMPETITIVE ADVANTAGE: In order for any organization to gain competitive advantage, it should adapt on of the following strategies :cost leadership .differentiation .and focus on a specific group of customers .
9 IT and value-chain Management : In the past:communicating information with business partner in the value chain was seldom a primary concern of top ranking executives.Now :executive at the highest corporate level in many businesses are driving the development of value-chain strategies to enhance interactions with business partners.
10 IT AND MULTI-USER SYSTEMS: In such an environment users need to share the information so that each employee should have access to the information relative to his job functions.Hence, different computer devices used by multiple people must be linked into a network.Networks are of two types that are :1- Local area networks (LANS) .2- Wide area networks (WANS).
11 IT AND MULTI-USER SYSTEMS: We discuss three common for connecting data and application in networking:terminal emulationfile-server approachclient-server systems.
12 IT AND MULTI-USER SYSTEMS: terminal emulationWhere all data and applications stored on a large computer and accessed by users using dumb terminals, and lately after the decreasing costs of the PC, the dumb system was exchanged with PC system.File-server approachHere the data is being distributed among computers using powerful servers to store shared files.Client-server systemsIn the client-server systems, the processing tasks are shared between the clients and the server. Clients-server is superior to the file-server approach when there are many users and large databases.
13 IT AND MULTI-USER SYSTEMS It is important for accountants to know how the data and applications are organized in networked environments for selecting the standard program for their specific purposes and to understand e-commerce application.
14 E-commerce and E-business : It is of great importance here to identify e-commerce and e-business .E-business encompasses all kinds of electronic exchanges with customer and supplier as well as internal business operation and communications.E-commerce is a transaction-oriented part of e-business enabling buying and selling processes through the Web .
15 E-commerce and E-business : Those exchanges use a common language called Hypertext markup language (HTML).
17 Static and Dynamic Web Pages for E-Business Application: web pages for e-business applications can be classified according to the different functions as :static .dynamic .
18 Static and Dynamic Web Pages for E-Business Application: Static Web pages :are pages created in HTML that do not change automaticallyin response to users requests and it provide a simple low-cost way of presenting information about the company.Dynamic Web pages :are linked to real-time databases. It provides up to date information as the database is always updated to reflect current data and latest information. It help to make e-commerce possible. It costs more in comparison to static HTML but adds more value by making the ordering of goods and materials much easier for both customers and suppliers.
19 Static and Dynamic Web Pages for E-Business Application: Dynamic web pages require a three-tier :Client Tier.Middle TierBottom Tierthree-tier help a student to understand key business technologies and applications.
20 Dynamic Web pages : Client Tier : Middle Tier: Bottom Tier: consists of the browser software running on a user's PC, to locate Web sites selected by users and interprets the HTML documents to be used for entering sales' orders, etc.Middle Tier:middle tier interacts with the client tier and the backend database using a standard interface i.e. ODBC (Open Database Connectivity) to interact with the database server.Bottom Tier:also called (the data base server) is for storing databases and databases management software.
21 E-Business and Business Processes: There are keys costs to consider when any firm plan to use e-commerce for enhancing its marketing and/or operations process .These cost are :the cost of re-engineering process of the businessThe cost of designing the graphical user interface.the cost of integrating back-end operations.
22 E-Business and Business Processes: Interacting with Customers:E-business can be used to enhance interactionsWith customers throughout the revenue process.Interacting with Suppliers :Businesses are also focusing on the concept of supply chain management .Internal Operation :To communicating with customers and suppliers, companies can use Internal technology for internal operations and decision making.
23 ORGANIZING AND ANALYZING DATA : Many companies have a great deal of data about historical transactions . The amount of data has been growing as e-business and e-commerce technologies become more common.E-commerce can collect information about customer tastes and preferences and other data transactions .We discuss two such technologies-Data warehousing .And data mining .
24 ORGANIZING AND ANALYZING DATA: Data Warehousing :There are two types of data storage:one is called OLTP (on-line transaction processing systems)which is required to provide fast reliable data processing .2. The second one is the data warehouse .
25 ORGANIZING AND ANALYZING DATA: The second one is the data warehouse .which is for storage of huge historical data used for high level analysis and decision making.Data warehouses integrates information for various operational databases to select only the information required for the decision-making.Data stored in database warehouses is always old data and does not need regular updating.It is also used to record historical data about customers, their bills, transactions, hours worked, etc.Another way of organizing data in warehouses is as a multi-dimensional database (MDDBs).
26 ORGANIZING AND ANALYZING DATA: Data mining :- is the process of data selection, exploration, and building of modes using vast data stores to uncovered previous unknown patterns.- The must advanced type of data mining high-tech machine learning artificial and intelligence tools .-The data analysis can be categorized into four categories:standard query reportingmulti-dimensional analysisstatistical analysisartificial intelligence
27 The data analysis can be categorized into four categories: 1standard query reporting4artificial intelligence2Content Layoutsmulti-dimensional analysis3statistical analysis6
28 E-Commerce and Data Mining : Data mining effects e-commerce site as from data mining companies knew customer behavior and their preferences,therefore, they make the right decision about the products customer want and make it available on their sites.These systems also generate a list of other related products that they feel customers would like to purchase because of their irrelativeness or as those other products complement main products.
29 INTEGRATING BUSINESS PROCESSES, DATA, AND APPLICATIONS: Another important technology involves the increased integration between business processes, applications, and data. These technologies are as under:Enterprise Resource Planning System (ERP) :which helps in accounting, marketing, human resources, planning and manufacturing processes.Integration of the supply chine through E-Commerce :E-commerce between businesses enables companies to exchange commercial documents that can go directly into the companies computer systems.Customer Relationship Management Systems (CRM).Emphasize the integration of all customer-facing application including marketing, sales, and service.
30 IT AND BUSINESS PROCESSES: RISK AND CONTROLS : Privacy: is a key concern with modern information system.Data collection : the key types of data collected by on-line system include :1-cookies,2-IPaddresses.3-personally.User control: there are two broad approaches to privacy in terms of giving control over data collection to user. the first one is “opt in” which business agree not to collect or use personal data .The second one “opt out” assume that you want to participate and you must explicitly forbid a site to collect information about you .
31 IT AND BUSINESS PROCESSES: A ROLE FOR ACCOUNTANT : Accountants can use their knowledge of a client`s business and processes and specialized accounting , auditing , and IT knowledge to help businesses use IT effectively. accountants can help businesses in the following areas:Assurance service .Analyze IT investments .Design and implement IT solution.Enhance value of current services.