1 Chapter 1 Introduction to Accounting Information Systems Chapter 6 Electronic Business (E-Business)

Learning Objectives Understand major approaches to transfer data electronically during business events processing Recognize complexities of electronic doc. mgt. Understand complexities of EDI Appreciate challenges of direct business links to customers via the Internet Appreciate business advantages of effective use of electronic commerce

3 Electronic Business Involvement of two or more individuals and/or organizations in completion of electronic business transactions Byproduct: elimination of sales staff, normally intermediary between two parties to transactions Transactions completed more quickly, more efficiently, and more effectively

4 Batch Processing Business event occurs Record business event data Update master data Generate outputs

5 Automated equivalent - manual system

6 Online transaction entry (batch)

7 Online Real-time Processing Transaction occurrence/recording in transaction files Update master files Generate reports - support queries

8 Online real-time processing

9 Online Transaction Processing RT system that performs all or part of processing at data terminal location Updating of master data may be immediate or delayed Can have memorandum update in RT and full batch update at night (referred to as remote batch)

10 Traditional real-time processing system

11 Online transaction processing

12 Advances in Electronic Communication Automated Data Entry –Bar Code Readers –OCR –Scanners Digital Image Processing Communication Networks –LANs –WANs –Internet

13 Digital image processing

14 EDI transaction set

15

16 Typical Internet Connection

Learning Objectives Understand major approaches to transfer data electronically during business events processing Recognize complexities of electronic doc. mgt. Understand complexities of EDI Appreciate challenges of direct business links to customers via the Internet Appreciate business advantages of effective use of electronic commerce