AIS Chapter 1 Overview PDF

AIS Chapter 1 An Overview  Topic Covered 1. Data, Information, and System 2. Value of Information 3. Qualities of Useful Information 4. Users or Information 5. AIS 6. Decisions using the Information 7. AIS in Value Chain 8. Investment in Technology  Data, Info,...

AIS Chapter 1 An Overview  Topic Covered 1. Data, Information, and System 2. Value of Information 3. Qualities of Useful Information 4. Users or Information 5. AIS 6. Decisions using the Information 7. AIS in Value Chain 8. Investment in Technology  Data, Info, and System Data Information System  Value of Information Benefits o Reduce uncertainty o Improve decision making o Help in planning Costs o Time o Resources Benefits – Costs = Value (difficult to quantify)  Qualities of Useful Information 1. Relevant 2. Reliable (error free) 3. Complete 4. Accessible 5. Timely 6. Understandable 7. Verifiable  Users of Information External users (e.g. Government, Banks, Shareholders) Mandatory Info (annual reports) Info needed to do Business (Invoices) Minimize Cost and Comply Internal users (e.g. management, employees) Discretionary Info Look at Benefit and Cost  AIS A system to collect, record, store, and process data* to produce information with or without advanced technology. *Financial and Non-Financial Data about Resources, Events, and Agents (REA)  Decisions using the Information Decision Structure o Structured Decisions o Semi-structured Decisions o Unstructured Decisions  Decisions using the Information Decision Scope o Operational control decisions o Management control decisions o Strategic planning decisions  AIS in the Value Chain The objective is to return value to shareholders by providing value to customers It is provided by performing a series of activities referred to as the value chain. o Primary activities (inbound logistics, operations, outbound logistics, marketing & sales, service) o Support activities (firm infrastructure, HR, technology, purchasing)  AIS in the Value Chain Smith Supply Co. The linking of multiple value chains creates a supply Inbound Logistics chain. Operations Pharmaceuticals, Inc. Outbound Logistics Inbound Logistics Marketing & Sales Operations Service Outbound Logistics Customer Pharmacy Marketing & Sales Inbound Logistics Service Operations Information technology can facilitate synergistic linkages Outbound Logistics that improve the performance of each company’s value Marketing & Sales chain. Service  Investment in Technology Should be according to the business type and strategy as resources are limited while options are not Business Type Business Strategies - Merchandising - Product-differentiation - Manufacturing - Low-cost - Service  Investment in Technology Strategic Positions o Variety-based (Starbucks) o Needs-based (QU) o Access-based (CBE Cafeteria)  We Discussed 1. Data, Information, and System 2. Value of Information (Benefit – Cost) 3. Qualities of Useful Information 4. Users or Information (External and Internal) 5. AIS (Process Data to Produce Information) 6. Decisions using the Information 7. Investment in Technology