Accounting Information Systems (AIN1501) Part 1 - Topic 1 ... · The environment affects it and it,...

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AIN1501 E-tutor:HCarrim

AccountingInformationSystems(AIN1501)Part1-Topic1StudyUnit1–Information

Inthisstudyunit,welookedatInformation,thecharacteristicsofinformationandtheusesandusersofinformation.

Whatisinformation?

Informationisasetoffactsordataorganisedandprocessedinsuchawaythatitprovidesadditionalvaluebeyondthatofthefactsthemselves.Informationisderivedfromdataorrawfactsthatrepresentreal-worldelementsasillustratedinFigure1.1and1.2onpage5ofyourstudyguide.

Inotherwords,informationisdatathathavebeenprocessedinsuchawayastobemeaningfultothepersonwhoreceivesit.Thisinformationprovidesknowledgethatleadstheusertomakedecisions.

**Dataaretherawmaterialavailableforprocessingintoinformation.Dataconsistofnumbers,letters,audioandvideodataandrelatetofacts,eventsandtransactions.

Thecharacteristicsofinformation

Accurate

Accessible

Up-to-date

Detailed

Flexibility

Relevant

Cost-effective

Reliable

Timely

Formatofinformation

Usesandusersofinformation

Internalusers:

Management

Financialmanagers

Productionmanagers

Staffmanagers

Marketingmanagers

Salesmanagers

Purchasemanagers

Employees

Externalusers:

Shareholders

Suppliers

Customers

Financialinstitutions

Government

Possiblefutureemployees

Summary

Informationisakeyresourcewithintheorganisationandformsthebasisofdecisionsmadebyinternaluserssuchasmanagementandexternaluserssuchascustomersandsuppliers.Itisessentialtokeepthecharacteristicsofinformationinmindwhencollectinginformationandtoensurethattheinformationobtainedisuseful.

``Informationisanecessaryresource,producedbyinformationsystemsandisakeybuildingblocktothemanagementanddecision-makinginanyorganisation''

AccountingInformationSystems(AIN1501)Part1-Topic1StudyUnit2–InformationSystems

Organisationsuseinformationsystemstomanagetheirinformation,toreduceuncertaintiesandcostsandtoincreaserevenuesandservicedelivery.

Whatisasystem?

Asystemisasetoftwoormorecomponentsthatserveacommonpurposeandinteracttoachieveacommongoal.

Componentsofasystem:

Input Processing Output

Openorclosedsystems

Asystemthatisisolatedfromitsenvironmentiscalledaclosedsystem.

Anopensysteminteractswithitsenvironment.Theenvironmentaffectsitandit,inturn,affectsitsenvironment.

Systemperformancemeasurement

Systemperformancemeasurementisthemonitoringoftheworkingofthesystemtoensureitiseffective,fulfilitsresponsibilityandmakethecontributionitissupposedtomake.

Systemperformancecanbemeasuredasfollows:

Effectiveness

Efficiency

Performancestandards

Whatisaninformationsystem?

Aninformationsystemisanorganisedwayofcollecting,processing,managingandreportinginformationforinformeddecision-makingtoachievegoals

Theroleofinformationsystemsinorganisations

Informationsystemsassistorganisationswiththefollowingfunctions:

Planning

Recordingtransactions

Decision-making

Controlandperformancemeasurement

Computerisedinformationsystems

Peoplecanuseacomputerisedinformationsystemtogainaccesstomeaningfulinformation.

Acomputerisedinformationsystemisasetofhardware,software,telecommunication,peopleandproceduresthatisusedtocollect,storeandprocessdataintoinformation.

Acomputerisedinformationsystemconsistsofdifferentcomponents:

Hardware

Software

Telecommunication,networksandtheinternet

People

Procedures

Databases

Acomputerisedinformationsystemprocess:

Activities

Inputofdata

Processing

Storedataorinformation

Outputofinformation

Makingdecisions

Accountinginformationsystem(AIS)

Anaccountinginformationsystemcollects,records,storesandprocessesfinancialdatatosupplyinformationfordecisionmakers.

Summary

Informationproducedbyinformationsystems,formsthebasisformajorday-to-daydecisions.Peopleandorganisationsuseinformationsystemstohelpthemachievetheirgoals.Touseinformationsystemseffectively,itisessentialforindividualstounderstandtheminordertoperformtheirdailytasks.

Computerisedinformationsystemsareessentialfortoday'sorganisationsastheyprocessinformationmoreaccuratelyandmuchfaster.Thatisalsothereasonwhyanaccountinginformationsystemhavebecomeanimportantcomponentofanysuccessfulbusiness.

AccountingInformationSystems(AIN1501)Part1-Topic1StudyUnit3–InformationStrategy

Inthissection,wewillprovideyouwithinformationtohelpyoutoobtainabetterunderstandingoftheterminformationstrategyanditsrelationshiptotheprevioustwoterms.

Whatisinformationstrategy?

Aninformationstrategyreferstoourdecisionsorplanonhowtousetheavailableinformation,howtocollectmorerelevant,usefulinformationandhowtousetheinformationtechnologytomanagetheprocess.

** Informationtechnologyreferstotheprocessingofdata,usingelectronicsystems(computersystems)andallcommunicationlinksandsoftwarethatgowithit.

agementanddecision-makinginanyorganisation''

Therelationshipbetweeninformation,informationsystemandinformationstrategy

Youneedtodifferentiatebetween:

-information-thewayitiscollected,processedandstored-theplantomanageandcontrolinformationandaninformationsystem

Informationstrategy

Theinformationstrategyshouldbeinlinewiththeoverallstrategyoftheorganisationandsupporttheorganisation'sstrategicplan.Informationstrategyreferstotheoverallplananorganisationhastocreateanddevelopitsinformationsystem

Thethreeelementsofinformationstrategy:

Theinformationsystemstrategyisalong-termplanforsysteminordertoprovideinformationtosupportbusinessstrategy.

Theinformationtechnologystrategyentailsselecting,operatingandmanagingthetechnologyelementsoftheinformationsystemstrategy.

Theinformationmanagementstrategyreferstothepeopleinvolvedintheuseofinformationtechnologyandthesepeople'sroles.Itdealswiththerelationshipsbetweenthemandwiththemanagementprocessneededtouseinformationtechnology.

Benefitsofaninformationstrategy:

Aninformationsystemcontributestotheachievementofgoalcongruencebetweentheinformationsystem'sobjectivesandtheorganisation'sobjectives.

Informationstrategiesensurethattherequiredinformationisacquired,retainedandsharedwithallstakeholders.

Informationstrategiesminimisedevelopmentandmaintenancecosts,whichareexpensive.

Organisationsaremorelikelytocreateasustainablecompetitiveadvantage.

Informationstrategiesensurebetterqualityinformationandthereforebetterdecisionsbymanagement.

Summary

Owingtorapiddevelopmentsinthefieldofinformationtechnology,aninformationstrategyshouldbemanagedeffectivelyandmanagementshouldplancarefullywaysinwhichtohandletheinformationsystem.Suchaplanisknownasaninformationstrategy.Informationtechnologyassistsorganisationswiththemanagementofinformation,theinformationsystemandtheinformationsystems'strategy.Anorganisationthatdoesnothaveaninformationsystemstrategyislikearowingboatadriftonabigocean.Bydrawingupaproperstrategyfortheorganisation'sinformationsystem,thecapitalandotherresourcesinvestedcanbeusedtotheorganisation,itscustomersandstakeholders'advantage.

AccountingInformationSystems(AIN1501)Part1-Topic1StudyUnit4–TheInformationSystemdepartmentInthisstudyunit,wewilltalkabouttheestablishmentofanefficientinformationsystem(IS)departmentasamethodtoprovideuserswithusefulinformation.InformationSystemdepartmentTheinformationsystem(IS)departmentisasupportfunctionwithintheorganisation.Thisdepartmentplaysavitalroleinthatitaidsinprovidinginformationinanaccurate,functionalformatbyformingthebackboneoftheinformationsystem.TheISdepartment'srolecanbroadlybedescribedasensuringthattheinformationsystemisoperatingefficientlyonaday-to-daybasisandismaintainedandupgradedwhenappropriate.

ObjectivesoftheISdepartment:

• developinganISstrategythatalignsISgoalswiththeorganisation'sgoals• monitoringreturnoninvestmentsinIS• settingstandardsforthepurchaseanduseofhardwareandsoftware• constantlyseekingnewwaystomeettheneedsofinternalusers• implementingmeasurestoensurethatplannedbenefitsfromsystemsolutions

areactuallyrealised• minimisingdatabaseredundancyandincreasingthereusabilityofasystemby

integratinginformationsystemarchitecture• providingtechnicalassistancetoensurethatthereisanefficientlinkbetween

theISdepartmentandtherestoftheorganisation.

CompositionoftheISdepartment

ThestructureoftheISdepartmentwillvarydependingonthesizeandnatureoftheorganization.

HiringandterminatingISstaff

AlthoughalotoftimecouldhavebeenspentonplanningthestructureoftheISfunctionanddocumentingISpoliciesandprocedures,theultimatesuccessoftheISfunctiondependsonthequalityandmotivationoftheorganisation'sISstaff.

Investtimeandmoneyonconductinginterviewsandevenbackgroundcheckstoappointthemostsuitablestaffandprovideeffectivetrainingprogrammestofillpossibleknowledgegapsandkeepstaffuptodateandequippedforuserassistance.

OrganisingtheISdepartment

TherearedifferentwaysfororganisinganISdepartment.Accordingly,theorganisationcouldcentralise,decentraliseoroutsourcetheISdepartment.TheorganisationwillneedtoconsiderthemostefficientwaytoorganisetheISdepartment.

CentralisationofanISdepartment

AcentralisedITdepartmentmeansthatISstaffandfunctionsaresituatedinasinglelocationsuchastheheadoffice.

DecentralisationoftheISdepartment

AdecentralisedISdepartmentmeansthatISstaffandfunctionsaredistributedthroughouttheorganisation,witheveryregionalofficeorbusinessunitusuallyhavingitsownISdepartment.

OutsourcingtheISdepartment

TheISfunctiondoesnotnecessarilyneedtobeperformedbyadepartmentwithintheorganisationitself.ISfunctionscanalsobeoutsourcedtoanexternalserviceprovider

andmonitoredbymeansofaservicelevelagreement.Theresponsibilityformaintainingtheservicelevelagreementcanbeassignedtoanindividualwithintheorganisation.

EvaluatingtheISdepartment

TheISdepartmentneedstobeevaluatedtodeterminethecostversusbenefitimpactregardingtheinvestmentintheISdepartment.

TheITdepartment'sefficiencycanbeevaluatedby,forexample,answeringthefollowingquestions:

• Didusercomputerliteracyincrease?• AretheISstaffmoreawareofbusinessmatters?• Didusergroups'levelofparticipationincrease?• TowhatextentareusersmakinguseoftheISsupportfunction?• Howsuccessfulwastheimplementationofnewsystem?• AreISapplicationsfocusingonbusiness?• Didtheresponsetimetousercomplaintsdecrease?• Didsystemdowntimedecrease?

Theidealsituationwouldbetoansweryestoallthequestionsabove.

Summary

ThestructureandorganisationoftheISdepartmentisdeterminedbythenatureandsizeoftheorganisation.ThisstudyunitdescribedthetypicalstructureofanISdepartmentinalargeorganisationandhowitcanbeevaluated.Wealsolookedatcentralisation,decentralisationandoutsourcingasoptionsfortheISdepartmentandtheprosandconstoconsiderinmakingadecisiononwhichtouse.

AccountingInformationSystems(AIN1501)Part2-Topic2StudyUnit5–Hardware

Computerhardwarereferstothephysicalpartsofacomputersystem.

Internalhardwaredevices,alsoreferredtoascomponents,includethemother-board,centralprocessingunit(CPU),RandomAccessMemory(RAM),harddiskdrive,andtheBD/DVD/CD(opticaldisc)drive.

Externalhardwaredevices,alsoreferredtoasperipheraldevices,includethemonitor,keyboard,mouse,speakers,printerandscanner.

Roleofhardware

Thefunctionandpurposeofcomputerhardwareistoassistuserswiththeinput(capturingofdata),processing,datastorage,andoutputactivitiesofaninformationsystem.

Hardwarecomponents

Computerhardwareincludesinputdevices(keyboard,mouse,scanner),acentralprocessingunit(alsocalledtheCPU)thatprocessesdataintoinformation,aprimarymemorythatprovidesworkingstoragespacefortheCPUforprograminstructionsanddatatobeprocessed,secondarystorageforstoringdataandinformation,andoutputdevices(monitor,printer,speakers).

Inputdevices

Inputdevicesrefertothephysicalperipheraldevicesusedfordataentryandinputandareusedtoprovidecontrolsignalsfortheuserinterface.

• Keyboard• Computermouse• Imagingandvideoinputdevices• Touch-sensitivescreens(monitor)• Audioinputdevices

PROCESSING-THECENTRALPROCESSINGUNIT(CPU)ANDPRIMARYMEMORY

Dataandinstructionsareenteredintoacomputerforprocessing.ThisprocessingiscarriedoutbytheCPU,whichutilisestheprimarymemoryforstoringandretrievingdata.

Centralprocessingunit(CPU)

TheCPUisthecomponentofacomputersystemthatcarriesouttheinstructionsofcomputerprograms,andistheprimarycomponentofacomputer.

ACPUconsistsofthreecomponents:

-Thearithmetic/logicunit(ALU),whichperformsmathematicalcalculationsandlogicaloperations

-Thecontrolunit,whichfetchesprograminstructions,decodesthemanddirectstheinstructionsinandoutoftheALU,theregisters,theprimaryandsecondarystorage,andtheoutputdevices

-Registers(primarymemory)aretemporaryhigh-speedstorageareasusedtoholdprograminstructionsbefore,duringandaftertheirexecutionbytheCPU

Executinginstructions

Executinginstructionsinvolvestwophases:Thefirstphase,consistingofsteps1and2,iscalledtheinstructionphase.

Step1:Fetchinstruction.Step2:Decodeinstruction.

Thesecondphase,consistingofsteps3and4,iscalledtheexecutionphase.Step3:Executeinstruction.

Step4:Storeresults.

Clockspeed

Clockspeed,alsocalledclockrate,isthespeedatwhichaCPUexecutesinstructions.

Primarymemory

Primarymemoryormainmemoryisalsojustcalled``memory''.

Twotypesofmemorytechnologyimplementprimarymemory.Thefirstiscalledrandomaccessmemory(RAM)andtheotherisreadonlymemory(ROM).

Secondarystorage

Secondarystorage,alsocalledpermanentstorage,referstostoragedevicesormediathatareabletostorelargeamountsofdata,instructionsandinformationpermanently,unlesserased.

Secondarystoragemediaanddevicesincludethefollowing:

• Magneticharddiskdrives• Opticaldisks• Flashmemory• Othersecondarystoragedevicesandmedia• Tertiarystorage

Outputdevices

Outputdevicesarethephysicalperipheraldevicesusedtocommunicatetheresultsofdataprocessedbyacomputertotheusers.

• Monitor/displayscreen• Printer• Speakers

Otherhardwarecomponents

• Computer case • Motherboard • Power supply • Video card • Sound card • Network card

Typesofcomputersystems

Computersdifferintermsof:

• size• functionality

Mobiledevices

Mobiledeviceisatermusedforavarietyofsmallportablecomputerdevices.Theseinclude:

• Laptops• Netbooks• TabletPCs• SmartphonesandPDAs(personaldigitalassistants)

Desktopcomputers

Desktopcomputersareinexpensivecomputersthatarepowerfulenoughtoperformmostbusinesscomputingtasks.

Workstations

Aworkstationissimplyadesktopcomputerthatmaycontainspecialhardwareenhancementssuchasamorepowerfulprocessor,additionalmemoryandenhancedcapabilitiesforperformingspecificorspecialisedtasks

Servers

Aserverisacomputerthatisdedicatedtoprovidingaspecificserviceorperformingaspecifictask.

Mainframecomputers

Mainframecomputersarelargepowerfulcomputersusedinorganisationstoservicemultipleusersusingsmaller,singleusermachines.

Supercomputers

Supercomputersarethemostpowerfulcomputersystemsofall.Thesecomputershavethefastestprocessingspeedandthebestperformance.Supercomputersareusedforperformingcalculation-intensivetaskssuchasweatherforecasting,fluidandaerodynamics,nuclearsimulations,andcomplexscientificcomputations.

Computersystemhardwareselectionandupgrading

Selectingthecorrectcomputerhardwarewillrequireanunderstandingoftheinformationneedsoftheorganisationandthecomputersoftwareneededtoperformthespecifictaskstheorganisationrequires.

Certainhardwareconsiderationsarelistedbelow.

Processorspeed

Primaryormainmemory

Secondarystorage

Outputdevices

Networkdevices/internetconnectivity

Summary

Computerhardwarereferstothephysicalpartsofacomputersystem.Computerhardwareincludesinputdevices,aCPUforprocessingdataintoinformation,primarymemoryprovidingworkingstoragespacefortheCPU,secondarystorageforstoringdataandinformation,andoutputdevices.Computersalsodifferfromoneanotherintermsofsizeandfunctionality.Alloftheaboveneedtobeconsideredwhenselectingacomputersystem,thuskeepingtheinformationsystemneedsoftheorganisationinmind.

AccountingInformationSystems(AIN1501)Part2-Topic2StudyUnit6–Software

Computersoftwareconsistsofcom-puterprogramsandrelateddatathatgiveinstructionstothecompu-terhardware,thuscontrollingthecomputerhardware.

Systemsoftwareisdesignedtomanageandcontroltheactivitiesandfunctionsofthehardwareandprovidesaplatformforapplicationprogramstorunonthecomputersystem.

Operatingsystem

Anoperatingsystemperformthefollowingimportanttasksandfunctions:

Processortaskmanagement

Memorymanagement

Devicemanagement

Filemanagement

Userinterface

Networkcapabilities

Typesofoperatingsystem:

Single-user,singletask

Single-user,multi-tasking

Multi-user

Embedded

Factorstoconsiderwhenchoosingacomputeroperatingsystem:

Easeofuse

Theintendeduse

Levelofsecurity

Hardwarecompatibility

Softwarecompatibility

Technicalsupport

Utilitysoftware

Utilitysoftwarewasdevelopedtohelpanalyse,configure,maintainandoptimiseacomputersystem.

Pleaserefertothetableonpage52and53ofyourstudyguide.

Databasemanagementsystem

Adatabasemanagementsystem(DBMS)isaprogramorcollectionofprogramsthatenablesausertostore,modify,andextractinformationfromadatabase.

Networkoperatingsystemandmanagementsoftware

Anetworkoperatingsystem(NOS)allowsacomputersystemanddevicesconnectedtothenetworktocommunicatewithoneanother.

Applicationsoftware

Applicationsoftwareisusedtoaccomplishspecifictasksotherthanrunningthecomputersystemandassistsusersinperformingspecifictasks.

Typesofapplicationsoftware:

Wordproces-sing

Spreadsheet

Database

Presentation

Multimedia

Webbrowser

Factorstoconsiderwhenchoosingapplicationsoftware

Theapplicationsoftwareselectedisinfluencedbythespecifictasktobeundertaken.Thus,certainapplicationsoftwareismoresuitedtoperformcertaintasks.

Also,keepinmindthatapplicationsoftwareisdevelopedtoworkonaspecificoperatingsystemandhaveminimumhardwarerequirements.

Softwaretrendsandissues

Withtheincreasedcompetitioninthecomputersoftwareindustry,softwaredevelopersneedtomakesurethattheyattendtotheneedsoftheusersoftheirsoftware.Softwareisbecomingmoreandmorepowerful,includingmorefeaturesandbecomingeasiertouse.

Softwarebugs,updatesandupgrades

Copyrightandlicences

Themajorityofsoftwareproductsareprotectedbycopyrightandlicensinglaws.Thesoftware'slicencegivestheusertherighttousethesoftwareinthelicensedenvironment.

Softwarepiracyistheillegaldistributionofsoftwareandprogramsforbusinessorpersonaluse.Softwarepiracyisillegalandpunishablebylaw.

Softwaredevelopment

Softwaredevelopmentisthedevelopmentofasoftwareproduct.programminglanguageisanartificiallanguagedesignedtoexpresscomputationsthatcanbeperformedorexecutedbyacomputer

Softwaredevelopmentincludesalloftheprocessesinvolvedfromtheconceptionofthedesiredsoftwarethroughtothefinaldevelopmentofthesoftwareprogramorproduct.

Softwareisdevelopedforavarietyofpurposes.Thisincludes:

• meetingthespecificneedsofaclientorbusiness(inthecasewheresoftwareisspecificallydevelopedforthatcustomer)

• meetingaperceivedneedofpotentialusers(inthecaseofcommercialandopensourcesoftware)

• forpersonaluse(eganaccountantwhoisabletoprogrammaywritesoftwaretoautomaticallyretrieveexchangeratesfromtheinternetandsavethisinformationtoaspecificfileonhiscomputeronadailybasisforeasyaccessanduse)

Summary

Computersoftwarecomprisescomputerprogramsthatprovideinstructionstothecomputerhardware.Therearetwomaintypesofcomputersoftware:systemsoftware(managingtheactivitiesandfunctionsofthecomputerhardware)andapplicationsoftware(usedtoperformspecifictasks).Softwareisintangible,thusitcannotbetouched.Softwaretrendsandissueswerealsomentionedincludingsoftwarebugs,updatesandupgrades,copyrightandlicences,aswellasshareware,freeware,publicdomainsoftwareandopen-sourcesoftware.

AccountingInformationSystems(AIN1501)Part2-Topic3

StudyUnit7–Componentsofcommunicationnetworks

Acomputernetwork,alsoreferredtoasanetwork,consistsoftwoormorecomputersordeviceslinkedtooneanotherbycommunicationmedia,whichfacilitatecommunicationamongtheseconnectedcomputersordevices.Thepurposeofnetworksistoallowuserstoshareresources,dataandinformation,andtofacilitatecommunication.

Purposeofcommunicationnetworks

Computernetworksareusedforvariouspurposes:

• Facilitatingcommunication• Sharinghardware• Sharingfiles,data,andinformation• Sharingsoftware• Informationpreservation

Componentsofcommunicationnetworks

Componentsofcommunicationnetworksincludeboththehardwareandthesoftware

1.Communicationmediaorchannels

Communicationmediaenablesignalstomovefromonepointtoanother.

• Wiredtransmission

o twistedpairwireo coaxialcableo fibreoptics

• Wirelesstransmission

o Microwavetransmissiono Satelitetransmissiono Radiotransmissiono Infraredtransmission

2.Specifichardwareneededforcommunication

Networkinghardwareincludesnetworkinterfacecards,networkcablesorcommu-nicationmediums,switchesandhubs,routers,modems,firewallsandotherrelatedhardwareneededforcommunicationwithinanetwork.

-Networkinterfacecard

-Thecommunicationmediumorchannel

-Switchorhub

-Routers

-Modems

-Firewalls

3.Datacommunicationprotocols

Aprotocolisasetofrulesthatgovernstheexchangeofinformationandcommunicationbetweencomputersanddevicesonanetwork.

4.Softwareneededforcommunication

Anetworkoperatingsystem(NOS)allowscomputersystemsanddevicesconnectedtoanetworktocommunicatewithoneanother.

Networkmanagementsoftwareincludessoftwaretoolsandutilitiesformanagingnetworks.

Summary

Computernetworksallowcommunication,thesharingofresources(includinghardware,files,dataandinformation)andenablesoftwaresharingandinformationpreservation.Thecomponentsofcommunicationnetworksincludecommunicationmedia,specifichardware,datacommunicationprotocols,aswellassoftware.

AccountingInformationSystems(AIN1501)Part2-Topic3StudyUnit8–NetworkConfigurations

Networkscanbeclassifiedandconfiguredinvariouswaysdependingonthesizeofthenetwork,thedistance,orareaofnetworkcoverage,aswellasthemediatobeused.

CommunicationNetworkConfiguration

Networksmaybeclassifiedaccordingtoawidevarietyofcharacteristics.

1.Networktopologies

Incomputernetworking,atopologyreferstotheshapeorlayoutofconnecteddevices.Atopologyisanetwork'sphysicallayoutorvirtualshapeorstructure.

Thefivemostcommontypesofnetworktopologyarethefollowing:

• Bustopology• Ringtopology• Startopology• Treetopology• Meshtopology

2.Geographicalscope

Networkscanalsobecategorisedaccordingtotheirgeographicalscope.Geographicalscopereferstothedistanceorcoverageareaofthenetwork,aswellasthecommunicationmediaorchannelsconnectingthewholenetworktogether.

Examplesofdifferentnetworkmethodsincludethefollowing:

• Personalareanetwork• Localareanetwork• Metropolitanareanetwork• Wideareanetwork• Virtualprivatenetwork

3.Selectingasuitablenetworkconfiguration

Selectingthecorrectnetworkconfigurationwillrequireanunderstandingofthenetworkingandinformationsystemneedsoftheorganisation.

Inselectingasuitablenetworkconfiguration,thefollowingfactorsshouldbeconsidered:

• Areaofcoverage/distancebetweennodes• Datacommunicationvolumeandspeed• Security• Hardwareandsoftwarecompatibility

Distributedprocessing

Inacomputer-networkingenvironment,computersconnectedtothenetworkmayaccessandusetheresourcesprovidedbytheothercomputersanddevicesonthenetwork.

Distributedprocessingreferstomultipleremotecomputersystemslinkedtogether,whereprocessingisdistributedtomorethanoneofthesecomputers.

Clientserversystems

Inaclient/servernetworkarchitecture,certainpowerfulcomputersystemsarededicatedtoprovidingaspecificserviceorperformingaspecifictask.Thesecomputersystemsarecalledservers.

Cloudcomputing

Cloudcomputingreferstotheprovisionofapplicationsandservicesofferedtoauser,byanothercompany(alsoknownasaserviceprovider)overtheinternet.

Examplesincludeonlinebackupservices,socialnetworkingservicesandweb-basede-mailsuchasHotmailandGmail.

Summary

Inthisstudyunit,welookedatdatacommunicationnetworks,specificallyhownetworksareclassified.Thisincludesnetworksclassifiedaccordingtotheirtopologiesaswellastheirgeographicalscope.Otherconceptswerealsobrieflyexplained,includingdistributedprocessing,client/serversystemsandcloudcomputing.

AccountingInformationSystems(AIN1501)Part2-Topic3StudyUnit9–Theinternet,intranetandextranet

Theinternetisaglobalnetworkofcomputernetworks,whichsupportscommunicationandthesharingofdataandoffersvastamountsofinformationthroughavarietyofapplications(servicesandtools).

1.Howtheinternetworks

Aninternetserviceprovider(ISP)isacompanythatprovidesaccesstotheinternettoindividualpeopleandorganisations.

2.Internetapplications

• Theworldwideweb(WWW)• E-mailandinstantmessaging• FileTransferProtocol

3.E-commerce

Electroniccommerce,alsoknownase-commerce,istheonlinebusinessprocessofselling,buying,delivering,servicingandpayingforproductsandservicesovercomputernetworkssuchastheWWWortheinternet.

4.Usingtheinternetasaresearchtool

TheWWWcanbecomparedtoalibrarytowhichusersdonatedocuments;however,intheabsenceofaclassificationsystem,itisdifficulttofindinformation.Searchenginesarewebsearchtoolsthatsearchesthewebforkeywords.Googleisoneofthemostpopularinternetsearchenginesfreelyavailableontheweb.Examplesofinformationavailableonthewebforresearchincludejournals,encyclopaedias,dictionaries,governmentreports,calendars,indexes,statisticalreports,researchreports,books,manuals,manuscripts,videomaterial,geographicmaps,unpublishedmaterial,previouslypublishedtextbooksandinteractivecommunication

IntranetsandExtranets

Inthecurrentbusinessenvironment,organisationshavetobeabletocommunicatemoreeffectively,bothinternallywiththeiremployeesandexternallywiththeirtradingpartnersandcustomers.

Anintranetisaninternalorprivatenetworkthatisunderthecontrolofasingleorganisation.

Anextranetisanetworkthatlinksanintranettotheinternet.

Summary

Inthisstudyunit,welookedattheinternet:howitworksaswellasvariousinternetapplications,includingtheWWW,e-mailandFTP.Otherconceptswerealsobrieflyexplained,includingintranetsandextranets.

AccountingInformationSystems(AIN1501)Part3-Topic4StudyUnit10–Threatsincomputerizedinformationsystems

Today,mostorganisationshavebecomestronglyreliantoncomplexinformationsystems.Eventhemostinsignificantweaknessinaninformationsystemmighthaveasignificantnegativeimpactontheconfidentiality,integrityandavailability(alsoknownastheCIAtriad)oftheinformationproducedbytheinformationsystem.Thisistrueforbothamanualinformationsystemandacomputerisedinformationsystem.

Therelationshipbetweenvulnerability,threats,exposureandrisks

Itisimportanttounderstandthatalthoughthetermsvulnerability,threat,exposureandriskareoftenusedinterchangeably,theyallhavedifferentmeanings.

• Vulnerabilityrefertoasecurityweaknessorflawintheinformationsystemthatcreatesanopportunityforanattackonconfidentiality,integrityandavailabilityoftheinformation(CIAtriad).

• Thepotentialexiststhatvulnerabilitiesmightbeexploited,eitherintentionallyoraccidentally.Thispotentialisknownasathreat.

• Theexistenceofvulnerabilitiesinthesystemexposestheorganisationtofinanciallossesandcanbeexpressedasafunctionofthefinancialimpactandtheprobabilitythattheseeventswilloccur.

• Ariskcanbeexplainedasthelikelihoodoftheattackoninformationassuranceoccurring,thatis,theprobabilityofthevulnerabilitybeingexploited,andcanthereforebequantified.

Commonthreatstoaninformationsystem

Naturalthreats(resultingfromnatural,externalvulnerabilities)

Environmentalthreats(resultingfromenvironmental,internalvulnerabilities)

Humanthreats(asaresultoftheactsofhumanbeings)

Errors-ncludemistakes,failures,omissionsandcomputerproblemsduetounintentionalstaffintervention,resultingintheoutputofaninformationsystembeinginaccurateoruseless

Waste-usuallytheresultofpoorcomputerresourceandtimemanagement

Computercrime-Computer-relatedcrimeincludesawiderangeofillegalactivitiesinwhichacomputerand/ornetworkareusedasatooltocommitacrimeorwhereacomputerand/ornetworkarethetargetofacrime

Summary

Westartedthisstudyunitbyexplainingthetermsvulnerability,threats,risksandexposuresanddiscussedhowtheseconceptsarelinked.Ourfocusinthisstudyunitwasthethreatsfacedinacomputerisedinformationsystemenvironment.Weestablishedthethreemaincausesofthreats,thatis,natural,environmental,orhumanbehaviouralcauses.Threatsresultingfromhumanbehaviourincludeerrors,wasteandcomputercrime.Wealsospenttimetolookatthevariousformsofcomputercrime.

Thesethreatsarepresenteverydayanddonotonlyaffectorganisations,butalsoourprivatelives.You,asanaccountant,mustbeawareofthesethreatsastheymightaffecttheorganisation'sreputationandprofitability.Thisstudyunithasdrawnourattentiontotheproblemofcomputercrime.

AccountingInformationSystems(AIN1501)Part3-Topic5StudyUnit11–Computerandaccountinginformationsystemcontrols

Informationisnolongeronlyanice-to-have,butratheranecessityinthebusinessenvironment,enablinguserstomakesensibledecisions.

Inorderforinformationtoallowuserstomakeinformeddecisions,informationshouldmeettherequirementsoftheCIAtriad,thatis,confidentiality,integrityandavailability.

Athreatisthepotentialthatavulnerabilityinasystemwillbeexploited,whileariskreferstotheprobabilitythatthevulnerabilitywillbeexploitedandthereforeriskcanbequantified.

Theonlywaytoaddressthethreatsmentionedinstudyunit10istodevelopanorganisationalinformationsystemsecuritypolicystipulatingthecontrolprocedurestobefollowed.

Anorganisationwillneedtodetermineanythreatstotheexistinginformationandthenperformariskassessment.Ariskassessmentreferstothequantificationofthelikelihoodofthesethreatsresultingintheinformationsystembeingattacked.

Informationsystemsecuritypolicies

1.Defininganinformationsystemsecuritypolicy

Aninformationsystemsecuritypolicyisaformaldocumentdescribingtheprocedurestobefollowedbytheorganisationwhenaddressingthreatstotheinformationsystem.

2. Documents containing guidelines for an information system policy

There are, however, a number of documents containing guidelines for information system control. These are aimed at helping the organisation when compiling an information security system policy.

These documents include the following:

• The CobiT framework • The King III report • Information Security Framework (ISF)

Controls

Controlscanbeclassifiedusingvariousmethods.

1.Controlsclassifiedbytype

Generalcontrols

Generalcontrolsareoverallcontrolsaffectingalltransactionprocessing.Generalcontrolsareimplementedtoensuretheeffectiveoperationoftheorganisation'saccountinginformationsystem.

Applicationcontrols

Applicationcontrolsarespecifictothefunctioningofindividualapplications.

2. Controls classified by function

Preventivecontrols

Preventivecontrolsarethefirstlayerintheinternalcontrolshield.Preventivecontrolspreventanddiscourageadverseeventssuchasfraud,errors,theft,loss,andsoonfromoccurring.

• Backupofdataanddocumentation• Antivirussoftware• Antispyware• Spammanagementsoftware• Trainingofstaff• Softwarechangeandimplementationcontrols• Adequatedisposalofused/damaged/redundantequipment

Detectivecontrols

Detectivecontrolsarethesecondlayerintheinternalcontrolshield.Detectivecontrolssearchfor,uncoverandidentifyadverseeventsaftertheyhaveoccurred.

• Checkdigit• Programmededittests• Activitylogs• Intrusiondetectionsystem(IDS)• Hashtotals

Correctivecontrols

Correctivecontrolsarethelastlayerintheinternalcontrolshield.Correctivecontrols,alsosometimescalledcorrectivemeasures,commenceassoonasthedetectivecontrolshaveuncoveredandidentifiedanadverseevent.Thepurposeofcorrectivecontrolsistolimitandrepairthedamagecausedbytheadverseeventandshouldbringtheorganisationbacktoitsnormalworkingoperationsaseffectivelyaspossible.

• Datarecovery• Disasterrecoveryofcompletesystem(inordertominimisefinanciallossand

preventamaterialimpactonthefinancialreportingprocess,controlsshouldbeinplacethatenableabusinesstoresumenormaloperationsassoonaspossibleafteradisasterhasstrucktheorganisation)

• Fireextinguishers(tominimisethedamagecausedbyafire)• Backuppower(tominimisetheimpactofapoweroutage)• Insurance(torecoverdamagetobeabletobeinoperationassoonaspossible).

Disasterplanning

Disasterplanningformspartofmitigatingtheriskofsubstantialfinanciallossresultingfromanunexpecteddisruptionofnormalbusinessoperations.

Disasterplanningcomprisestwoelements:

-Controlstoanticipateorpreventpossibledisasters(coveredintheprevioussection).

-Disasterrecoveryorcontingencyplanningaftertheevent

Thefocusofthissectionwillbeonthesecondofthese-disasterrecovery

Adisasterrecoveryplanisimplementedaccordingtothefollowingthreesteps:

Step1:Whendesigningtheplan,planningshouldcommencewithananalysisoftheorganisation'sneeds(needsanalysis),thatis,thecriticalresourcesneeded,shouldbeidentified.

Step2:Alistofprioritiesforrecoveryshouldbecompiledbasedontheneedsanalysis.

Step3:Oncethishasbeendone,aplanningcommitteecanbeformedtodesignadisasterrecoverystrategyforapprovalbytheboardofdirectors.

Systemcontrols

Controlsneedtobeputintoplacetoensuredatacommunicationbetweenusersisreliableandassetsaresafeguarded.

Summary

Inthisstudyunit,weexaminedwaysofalleviatingthethreatsfacedinacomputerisedinformationsystemenvironmentandwereferredtotheseascontrols.Controlscanbeclassifiedbytypeorbyfunction.Finally,weexaminedthecontrolsthatshouldbedesignedandimplementedinordertominimisetheimpactofadisaster.Youwilllearnmoreaboutcontrolsinyourauditingmodules.

StudyUnit12–Privacyandethicalconcernsandmeasures

Oneofthegreatestadvantagesoftheinternetandacomputerisedinformationsystemisthatitmakesinformationmoreavailableandaccessiblethaneverbefore.However,thereisanothersidetothecoin.Theorganisation,andindeedtheindividual,issuddenlyexposedbecauseofalossofprivacy.Thisisnottheonlyconcernthatneedstobeaddressed.Thequestionofwhatcanberegardedasethicalbehaviour,thatis,howpeopletreatinformation,orwhattheydowithitalsoneedstobeaddressed.

Privacyandtheindividual

Respectingsomeone'sprivacyinvolvesvaluingtheconfidentialityoftheirpersonalinformationbyusingitappropriatelyandprotectingtheinformation.

Youcandothefollowingtoprotecttheintegrityofyourpersonalinformation:

-Bealert,donotsharepersonalinformationunlessitisabsolutelynecessary.-Beproactiveabouttheprotectionofyourpersonalinformation,beinformedaboutthelatestscamssoyoudonotbecomeavictim.

-Donotprovideyourpersonalinformationwhenregisteringforaservicewithoutthinkingtwice.

-Becarefulwhenyoushoponlineandmakesureyourcreditcarddetail,personalinformationandpasswordsarekeptsafe.

-FamiliariseyourselfwithSouthAfrica'slegislationontheprotectionofpersonalinformation.Whenwewrotethisstudyguide(2011),thePersonalInformationProtectionBillwasstillindraftform.Whenaccepted,itwillhaveasignificantimpactonthewayorganisationstreattheinformationattheirdisposal.

Privacyandtheorganisation

Inthecontextoftheorganisation,privacyreferstoallinformationthatisconsideredconfidentialandinneedofprotectionfrompublicdisclosure.Privacyhasbecomeanimportantissueowingtothevastamountsofdatabeingmadeavailabletostakeholdersoforganisations.

Itisimportantthatpropercontrolmeasuresbeputinplacetoensurethatinformationismanagedaswellasthatitreachesitsintendedrecipientsonly.Individualshaveto

respectthevalueandownershipoftheinformationtheyreceiveandshouldnotdiscloseanyofitscontentswithouttheappropriateauthority

Thefollowingareexamplesofhowtheorganisationcanprotectuseofitsassetsandcompanytime:

Computermonitoring

Computermonitoringsoftwareenablesanemployertomonitorthetimeanemployeespendsonspecifictasks.

Electronicmailandvoicemail

E-mailandvoicemailraiseanumberofprivacyissuesintheworkplace.

Videomonitoring

Oneformofcontrolthatmanyorganisationsuseisvideomonitoring.Videomonitoringisamethodfordeterringtheft,maintainingsecurityandmonitoringemployees.

Firewalls

Internetprivacycanbedescribedasthemandateofpersonalprivacyconcerningtransactionsortransmissionofinformationovertheinternet.

Ethicalissues

Whenprivacyisdiscussed,astrongemphasisisplacedonitsimportanceintermsofthecontrolofinformation.Themannerinwhichpeopletreatinformationorwhattheydowithitmaycalltheirethicalbehaviourintoquestion.Individualsarenottheonlyonesfacingethicalissues.Organisationsarealsoaffected,especiallyintermsoftheirinformation.

1.Ethicsandtheindividual

Inaninformationenvironment,theindividualmayactunethicallyforvariousreasons.Thesemayincludeself-interestorfamiliaritywithorganisationinformation,orbecauseofintimidationbyadominantseniorstaffmembertryingtoinfluencethedecision-makingprocess.

2.Ethicsandinformation

Informationethicsexaminestheethicalissuesarisingfromthedevelopmentandapplicationofinformationtechnologies.Itisclearfromthiskindofstudyhow

individualsandorganisationsfeelaboutmoralissuesconcerning,forexample,privacy,access,ownership,protectionandcopyrightofinformation.

Thefollowingprinciplesrelatetotheethicaltreatmentofinformation:

Integrity Objectivity

Confidentiality

Professionalism

3.Ethicsandtheorganisation

Theorganisationshouldalwaysstrivetobehaveethically.Asethicsisnotgovernedbyrules,itisratherhardtoenforceethicalbehaviourinanorganisation.Agoodstartingpointwouldbetosetanethicaltoneintheorganisation.Thiscanbeachievedbymanagementandstafftogetherdrawingupacodeofconduct.Acodeofconductincludesanorganisation'svaluesanditsresponsibilitiestowardsallstakeholders.Variousdescriptionsofcodesofconductcanbefoundinliterature.

Summary

Thisstudyunitexaminedtwoimportantissues;privacyandethicalmattersinacomputerisedinformationsystemenvironmentwithreferencetotheindividualandtheorganisation.Waystoensureprivacyandethicalbehaviourwerealsosuggested.

StudyUnit13–Systemdevelopmentlifecycles

Thisstudyunitdealswiththedevelopmentofaninformationsystemanddifferentdevelopmentlifecycles.Theadvantagesanddisadvantagesofthedifferentdevelopmentapproachesarediscussedindetail.

Whatisinformationsystemdevelopment?

Informationsystemdevelopmentistheprocessofcreatinganewinformationsystemormodifyingacurrentinformationsystem.Byemployinginformationtechnologytodevelopasystem,problemsoropportunitiesaretransformedintosolutions.

Reasonswhyaninformationsystemneedtobereplacedorimproved

Wehavealreadysaidthatallbusinesssystemsshouldbeopensystemsandtheseareconstantlyinfluencedbychangesintheenvironment.

Typicalchangesincludethefollowing:

-Changesintechnology

-Changesindecision-makingpolicies

-Changesintheneedsanddemandsofusersandstakeholders

-Changesinthebusinessenvironment

-Changesinthenatureoftheorganisation

-Changestomaintainacompetitiveadvantage

-Changestoimproveperformanceandproductivity

Factorsaffectingthesuccessofsystemdevelopment

Systemdevelopmentcanbeconsideredsuccessfulifthesystemmeetstheneedsoftheusersandtheorganisationontimeandwithinbudget.Systemdevelopmentleadershaveidentifiedthefollowingfactorsthatcancontributetosuccessfulsystemdevelopmenteffortsatareasonablecost:

-Theextentofchangesinthesystem

-Theinvolvementofusersandstakeholders

Theplanningoftheproject

-Theselectionofthedevelopersusedtodevelopthenewsystem

-Theuseofprojectmanagementtools

-Changemanagementachievedbythenewsystem

Re-engineeringbusinessprocesses

Re-engineeringinvolvesdrasticallyrethinkingandredesigningbusinessprocesses,businessstructuresandinformationsystemstoachieveabreak-throughinbusinessresultsandtoimproveperformance.

Re-engineeringusuallytakesplacebeforeanewsystemisdeveloped,orittakesplaceintheinitialphasesofsystemdevelopment.

Systemdevelopmentlifecycles

Therearevariousapproachestothedevelopmentofanewinformationsystem.

1.Traditionalsystemdevelopmentlifecycle(SDLC)

Thedevelopmentofaninformationsystemandmeetingtheneedsofthebusinessarecomplex,difficultandexpensiveendeavours.

AnoverviewofatraditionalSDLC:

AdvantagesanddisadvantagesoftheSDLC:

2.Prototyping

Thedevelopmentofnewsoftwareisveryexpensive.

Onewaytocutthiscostistobuildascaled-downexperimentalversionofthenewinformationsystem(Prototyping).Prototyping,alsoknownasevolutionarylifecycle,meanstheend-userscanidentifywhattheydonotwantasopposedtowhattheydowant.

Advantagesanddisadvantagesofprototyping:

Pleaserefertoyourstudyguideformoreadvantagesanddisadvantagesofprototyping.

3.Rapidapplicationdevelopment(RAD)

Rapidapplicationdevelopmentisasystemdevelopmentapproachwherework-shopsandfocusgroupsgathertherequirementsofthenewsystemfromtheend-users.Thismethodspeedsupdevelopment.RADmakestheadaptingofchangestosystemrequirementseasierandreducespaper-baseddocumentation.Userparticipationisfacilitatedandsourcecodeisautomaticallygenerated.

AdvantagesanddisadvantagesofRAD:

4.End-userdevelopmentlifecycle

End-userdevelopmentisaprocesswhereend-usersdeveloptheirownapplications,usingexistingapplicationsoftware,tosolvetheirinformationneeds.

Advantagesanddisadvantagesofend-userdevelopment:

Outsourcingtheinformationsystem

Outsourcingtheinformationsystemmeansobtainingsomeorallactivitiesoftheinformationsystemfromanexternalserviceprovidertohandleallorpartsofthedatacapturingandprocessingatapredeterminedannualrate,ratherthandevelopingtheorganisation'sinformationsysteminternally.

On-siteoutsourcing:Thisiswhentheserviceproviderprovidestheresourcesorfacilitiesattheorganisationitself.

Off-siteoutsourcing:Thisiswhentheserviceproviderprovidestheserviceatalocationotherthanattheorganisationitself.

Blendedoutsourcing:Thisreferstoacombinationofon-siteandoff-siteoutsourcing.

Pleaserefertoyourstudyguidefortheadvantagesanddisadvantagesareattachedtooutsourcing.

Summary

Organisationsthatuseaninformationsystemthatdonotmeetallusers'requirementshaveadefinitecompetitivedisadvantageinthemarket.Therefore,organisationsneedtoadapttheirinformationsystemconstantly,usingthelatesttechnology,upgradingtheexistingsystem,oracquiringanewsystem.TheSDLCwillleadthemthroughthisprocess.OneoftheadvantagesofusinganSDLCmodelisthataprojectcanbemanagedproperly.Itisthereforepossibletoensurethattheorganisationmakesthenecessaryprogress.However,SDLCmodelsdonotguaranteethateachstepiscompletedsuccessfullybeforethenextoneisstarted.Ifoneofthestepswereneglected,itwillhaveanegativeeffectonthenextstepandthefinalresult.

StudyUnit14–Systeminvestigationandsystemanalysis

Duringthisstudyunit,weinvestigatethefirsttwostepsofthesystemdevelopmentlifecycle.Systeminvestigationwillidentifytheproblemandsystemanalysiswilldeterminehowtosolvetheidentifiedproblem.

Systeminvestigation

Systeminvestigationisthefirstphaseinthesystemdevelopmentlifecycleofanewormodifiedbusinessinformationsystem.

Duringthesysteminvestigationphase,theneedsoftheorganisationshouldbeinvestigatedandthepotentialproblemsandopportunitiesneedtoberecognisedandconsideredinthelightoftheobjectivesofthecompanyanditsinformationstrategy.

1.Developmentteam

Onceadecisionhasbeenmadetoinitiateasysteminvestigation,thefirststepistodeterminewhichmembersofthedevelopmentteamshouldparticipateintheinvestigationphaseoftheproject.

-aprojectmanager-upper-levelmanagers-middlelevelmanagersFinformationsystemstaffFend-users-otherstakeholders

2.Feasibilityanalysis

Akeypartofthesysteminvestigationisafeasibilityanalysis.Theseauthorsrefertothefollowingtypesoffeasibility:

Technicalfeasibility

Economicfeasibility

Legalfeasibility

Operationalfeasibility

Schedulefeasibility

3.Systeminvestigationreport

Theprimaryoutcomeofsysteminvestigationisasysteminvestigationreport,whichsummarisestheresultsoftheinvestigationandtheoutcomeofthefeasibilityanalysis.

Thereportalsoincludesrecommendations;thesecanbeto:

-continuewiththedevelopmentofanewsystem,orFmodifytheexistingsysteminsomeway,or-notchangetheexistingsystem.

Systemanalysis

Asystemanalysisdetermineswhattodotosolvetheidentifiedproblem.Itstartsbyclarifyingtheoverallgoalsoftheorganisationanddetermininghowtheexistingorproposedinformationsystemhelpsmeetthesegoals.

1.Thestepsinvolvedinasystemanalysis

Whenanalysingamajorinformationsystem,largeorganisationsusuallyfollowaformalisedanalysisprocessinvolvingthefollowingsteps:

-Setupacommitteeorteamtodothesystemanalysis

-Collectdataandunderstandtherequirements

-Investigatehecollecteddata

-Preparingareportontheexistingsystem,newsystemrequirementsandprojectpriorities,afterthesystemanalysisisconcluded

2.Differenttechniquestogatherinformationontheexistinginformationsystem

Typically,theanalysiswillstartbylookingattheexistingsystemtodeterminethedegreeofchangeneededtosolvetheproblem.

-Interviews

-Jointapplicationdevelopmentworkshop(JAD

-Questionnaire

-Observation

-Documentreview

Summary

Duringthesysteminvestigationstage,problemsareidentifiedandthesystemanalysisdeterminesthepossiblemethodstosolvetheseproblems.Aftereachstage,areportcontainingallrelevantinformationshouldbeproduced.Appropriateandeffectiveplanningduringtheinvestigationandanalysisstageswillresultinawell-organisedandsmoothdesignprocess.

StudyUnit15–Systemdesign

Inthisstudyunit,wewilldescribehowtheresultantanalysiscanbeusedtodesignasolution.Thisdesignstageconcernsthetechnicaldesign.Thenewsystemshouldovercometheshortcomingsoftheexistingoneandhelptheorganisationachieveitsgoals.

Systemdesignanditspurpose

Systemdesignisthestageofsystemdevelopmentinwhichasolutiontoaproblemisplannedanddocumented.Thesystemdesignstageusestheinformationfromtheinvestigationandanalysisofthecurrentmethodsandidentifiesmethodsthatmightachievebetterresults.

Thesystemdesignprocess

Duringthisprocess,thetwokeyaspectsofsystemdesignarethelogicalandphysicalsystemdesign.Usingtheinformationgleanedfromtheprevioustwostages,thedesignerscanstarttothinkaboutwhatthenewsystemshouldlooklike.

Designerswilloftenbreakdownthedesignprocessintosmallerunitstomaketheprocesseasier.Theseunitscouldbebasedonthebusinessprocessesorstakeholders.

Thisiswheredesignersalsoneedtodecidewhethertobuildanewsystemfromscratchortoconsidersomeoff-the-shelfsoftware.

Lastly,thefinaldecisionsshouldbewrittenupinareportcalledthedesignreport.

1.Logicalandphysicalsystemdesign

Logicaldesign:Logicaldesignentailsatheoreticaldesignofthestructureofthenewsystem.Itdescribesthepracticalrequirementsofasystemandconceptualiseswhatthesystemwilldotosolvetheproblemsthathavebeenidentifiedbyearlieranalysis.

-outputdesign-inputdesign-processdesign-fileanddatabasedesignFproceduredesign-telecommunicationdesign-controlsandsecuritydesignFstaffandjobrequirements

Physicaldesign:Duringphysicaldesign,thebroad,user-orientedrequirementsofthelogicaldesignaretranslatedintodetailedspecificationswhichareusedtocodeandtestthecomputerprograms

Hardware

Software

Database

Telecommunication

Procedureandcontrolspecifications

2.Interfacedesign

Duringinterfacedesign,somematterstotakeintoconsiderationincludedecidingwhetheritshouldbeamenu-drivenorcommand-lineinterface.Menu-drivensystemmeansthatuserscansimplyclickorselectwhattheywanttodofromalistofcommands.Inacommand-linesystemusershavetotypethecommand(whattheywanttodo)intothecomputer.

3.Systemsecurityandcontrols

Thebesttimetodealwithpossibleerrorsinanewsystemisearlyinthedesignphase.Dealingwithproblemsatthattimewillbethemostcost-effectivefortheorganisation.

Thisstepinthedesignprocessentailsthereview,modifyingandevaluatingofthesystemcontrols.

Systemcontrolscanhelpstopcomputerabuseandcomputercrimebyemployeesandothers.

4.Generatingsystemdesignalternatives

Differentdesignsneedtobeputonthetabletoensureaninformeddecision.Whenpeopleororganisationsrequirewholesystemsorasystemtoperformadditionalfunctionsthatanexistingsystemcannotsupport,theyoftenturntooutsidevendorstodesignandsupplytheirnewsystem.

5.Evaluatingandselectingasystemdesign

Thelaststepinthesystemdesignprocessisevaluatingthevariousalternativesandselectingtheonethatoffersthebestsolutionintermsoftheorganisationalgoals.Thisstepusuallyinvolvesbothaninitialandafinalevaluationofalternativesbeforethefinaldesigncanbeselected.

Aninitialevaluationeliminatestheunwantedproposalsanditisdoneafteralltheproposalshavebeensubmitted.

Thefinalevaluationentailsadetailedinvestigationoftheproposalsremainingafterthepreliminaryevaluation.Thefinalreviewprocessisusuallydoneusingpresetcriteriaandascoringpointsystem.

6.Financialoptions

Thereareseveralfinancialoptionsavailableforacquiringacomputersystem,includingpurchase,lease,orrent.

Pleaserefertotheadvantagesanddisadvantagesofeachoption,demonstratedinthetableonpage135

Systemdesignreport

Theresultsandconclusionsofthesystemdesignprocessareincludedinareport,knownasthesystemdesignreport.

Thesystemdesignreportcanbedraftedintwostages:

a.Logicalsystemdesignreport:

Thisreportisneededtoguidetheactivitiesofthephysicaldesignandexplainhowtheinformationneedswillbemet.Itcontains

b.Physicalsystemdesignreport:

Thisreportsonwhathasbeenaccomplishedandisvitaltoallowmanagementtodecidewhethertocontinuewithimplementation.

Summary

Theinformationsystemdesignprocesswillaffectthedailyfunctioningoftheorganisation.Likealltheotherstages,thedesignstagestrivestoachieveorganisationalgoals.Themaingoalofthisphase,however,istodesignanewormodifiedsystemtodelivertherequiredinformationattherighttimetotherightpersonattherightprice.

StudyUnit16–SystemImplementation

Inthisstudyunit,wediscussthetasksinvolvedinthesystemimplementationstepofthesystemdevelopmentprocess.Mostoftheplanninghasnowbeendoneand,duringthisstage,thedevelopmentteamgoesintoaction.

Systemimplementation

Thepurposeofsystemimplementationistofinaliseandinstallthesystemandtomakeeverything,includingusers,readyforitsoperation.Theimplementationstageputstheplannedchangesornewsystemintoaction.

Stepsinthesystemimplementationprocess

Step1:HardwareacquisitionStep2:SoftwareacquisitionordevelopmentStep3:PreparationofcurrentusersStep4:HiringandtrainingofnewstaffStep5:SitepreparationStep6:DatapreparationStep7:InstallationStep8:TestingStep9:Start-upStep10:Useracceptance

*Pleaserefertoyourstudyguideformoredetailsregardingtheabovesteps.

Summary

Duringthesystemimplementationprocess,thenewsystemisinstalledandputintoaction.

Thereareseveralstepstofollowinimplementingthenewinformationsystem.Theseincludepreparationofphysicalsites,trainingofusers,appointingstaff,acquiringofandinstallingcomputerequipment.

StudyUnit17–Systemreviewandmaintenance

Duringthelifecycleofaneworcurrentsystem,thesystemshouldbereviewedandmodifiedperiodicallytoaddressthechangingneedsofitsusers.Moreover,theuseofshortcutsmightresultinproblemsandunnecessarilyhighcosts.

Inthisstudyunit,someimportantactivitiesassociatedwithsystemreviewandmaintenanceisdealtwith.Thedevelopmentofanewsystemisanexpensiveprocess,thereforesystemmaintenanceiscriticalforthecontinuedsmoothoperationofthesystemaswellastoensurethatthesystemstaysrelevantforaslongaspossible.

Systemreviewandmaintenance

Systemreviewisthemonitoringandevaluationofthesystemtodeterminethesuccessofthesystemdevelopmentprocessandtomakesureitcontinuestosatisfythegoalsoftheorganisation.

Systemmaintenancereferstoacontinuousstageofsystemdevelopmentduringwhichtheoperationalsystemischeckedandchangedormodifiedtoimproveitandmakeitmoreusefulintermsofmeetingthegoalsofusersandorganisations.

Systemreviewandmaintenanceapproaches

Ifnotmonitoredandmodifiedonaregularbasis,asystemwillonlyberelevantandeffectiveforashortperiod.Reviewandmaintenancearerequiredinordertoextendthelifeofthecurrentsystemforaslongaspossible.

Time-drivenapproach:Atime-drivenprocedureisperformedperiodically.

Event-drivenapproach:Anevent-drivenprocedurestartswhenaproblemoropportunitysuchasanerror,acorporatemerger,anewmarket,ornewproductarises.

Eventscanincludethefollowing:

-newinformationneedsbyusersandmanagersresultingfromchangesintheindustryandnewcompetitorsenteringthemarket -errors,anomaliesandproblemsintheprogramthatwerenotpickedupduringthedevelopmentstages-businessprocessesthathavechangedforsomereason-corporatemergersandacquisitionsthatrequiretheintegrationofadifferentsystemF

changesintechnologythatresultintheuseofnewhardware-technicalproblemswithsoftwareandhardware-newgovernmentregulationsthataffecttheoperationalsystemandrequirements-unforeseeneventsthatresultintheneedtomakechangestothesystem

Mostorganisationsuseacombinationofthetwoapproaches.

Thesystemreviewprocess

Thesystemreviewprocesshastwomainobjectives:

Inthefirstplacetoreviewwhetherthesystemisdevelopedasintended.

Secondly,thesystemreviewprocesscanalsobeusedtoreviewwhetherthenewsystemreallyfulfilstheuserandorganisationalneedsasenvisaged.Anindependentreviewteamusuallyperformsthistypeofreview.

1.Reviewteam

Iftheorganisationhasalreadydecidedtodevelopanewsystem,adevelopmentteamwouldbethebestpeopletoreviewthecurrentsystem.

2.Factorstoconsiderduringthesystemreviewprocess

Duringasystemreview,importantfactorstoconsiderare:

-themissionandgoalsoftheorganisationFhardwareinuse-softwareinuse-controlsinplace --costsofdevelopmentandoperation

3.Differentaspectsofthereviewprocess

Thereviewphaseconsistsofthefollowingtwoaspects:

A.Post-implementationreview

Thedevelopmentteamneedstoinitiateapost-implementationreviewtomeasurethesuccessofthedevelopmentprocess,todeterminewhethertherequiredobjectiveshavebeenmetandifnot,whynot.

Post-implementationreviewmeasures:

-thesuitabilityoftheconversion,transferandintroductionprocedures

-whethertheunderlyingprinciplesofthechangeshavebeenclearlyexplained

-thesuitabilityandeffectivenessofthedocumentationcreatedduringthesystemimplementationprocess

-whethertheusertrainingconductedduringtheimplementationprocesswaseffectiveFwhethertherewasaclosureprocesswiththeusersandstakeholders

B.Resourcemanagementreview

Theresourcemanagementreviewisdonetodeterminetheeffectivenessoftheuseoforganisationalresourcesduringthesystemdevelopmentstages.

Aninternalauditingteamwillusuallydothisreview;whereaninternalauditingteamdoesnotexist,aseniormanagementteamwilldothereview.

4.Reviewmethods

Therearefourpossiblemethodsforconductingreviewsnamely:

Questionnaires

Focusgroups

Performancemeasures

Carryoutasurvey

5.Thesystemreviewreport

Afterthereviewprocesshasbeencompleted,thefactsneedtobecollectedandthedevelopmentteamneedstoprepareaformalsystemreviewreport.

Thesystemmaintenanceprocess

1.Themaintenanceteam

Accordingtoorganisationalpolicies,thepeopleinthesystemmaintenanceteammaybedifferentstaffmembersfromthedevelopmentteammembers.

-Theteamwhodesignedandbuiltthesystemmayalsoberesponsibleformaintainingthesystem,or

-Itcanbeaseparatemaintenanceteam.

Thesystemmaintenanceteam'sresponsibilitywillbetoensurethat:

-systemchangesarecarriedoutquicklyandeffectivelyFfailedhardwareisfixedquicklyandproperly-existingsoftwareisfixedifnecessary-existingsoftwareisupdatedregularly --existingsoftwareismodifiedwhenrequired

2.Typesofsystemmaintenance

StairandReynolds(2008:553)mentionthefollowinggenerallyacceptedcategoriessignifyingtheamountofchangeinvolvedinsystemmaintenance:

- Slipstreamupgrade:Aslipstreamupgradeisaminorupgrade,typicallyasoftwarecodeadjustmentorminorbugfix,whichisnotworthannouncingtousers.

- Patch:Apatchisaminorchangetocorrectaproblemormakeasmallenhancement.

- Release:Areleaseisasignificantprogramchangethatoftenrequireschangesinthedocumentationofthesoftware.

- Version:Aversionisamajorprogramchange,typicallyencompassingmanynewfeatures.

3.Systemmaintenancedocumentationandfinancialimplications

Inorderforsystemmaintenancetobeperformed,manyorganisationsrequirearequestformaintenanceformtoapprovethemodificationofasystem.Consequently,theneedforthepossiblechangeisrecordedandthechangeprioritiesidentifiedrelativetootherworkthathasbeenrequested.Therequestformaintenanceformusuallyhastobesignedbyamanager.

Thecostofmaintainingasystemformsalargesectionofthecostinvolvedintheoverallsystemdevelopmentprocess.Asystemthatiswelldesignedanddocumentedasefficient,structuredandflexibleislessexpensivetomaintain.Thismeansthatifmoretimeisspentondesignitcanresultinlesstimespentonmaintenanceatalaterstage.

Summary

Systemreviewreferstoacontinuingprocessinwhichthecurrentornewsystemisreviewedbymonitoringhowwellthesystemissupportingthegoalsoftheorganisation.

Theongoingsystemmaintenanceprocess,ontheotherhand,guaranteesthatthesystemremainseffectiveandrelevantforaslongaspossible.

Sufficienttestingofthesystemcanenhancethesuccessofnewsystemimplementationandensurethatthecurrentsystemkeepstrackofchangesintheorganisation.Independentreviewersshoulddothereviewprocess,butthesamepeoplewhodevelopedthesystemcandomaintenance.However,theITdepartmentisusuallyresponsibleformaintenance.

StudyUnit18–Overviewofinformationsystemsandoperationalinformationsystems

Inthisstudyunit,theinformationsystemsgenerallyusedatoperationallevel,whichincludeatransaction-processingsystemandanenterpriseresourcemanagementsystem,arediscussedbriefly.

Informationsystemsinperspective

Organisationsusehighlyintegratedinformationsystemsthatinfluenceallaspectsofthebusiness.Withouteffectiveandefficientsystems,organisationscannotoperate,manage,orplanproperlytoachievetheirgoals.

Transactionprocessingsystem

1.Whatisatransactionprocessingsystem(TPS)?

ATPScollectsanorganisation'sdailybusinesstransactions,processestheseintousefulinformation,storesthedataandinformation,andretrievesthetransactions(rawdata)andinformation(processeddata)toprovidedocumentsandrecordsforbusinessfunctions.

2.Businessfunctions

ATPSsupportsbusinessfunctionssuchas

-sales-purchasingFaccounting

ATPSusesinputfrommanysourcestoprocessthisdata:Somepossibleexamplesoftheseinputsareinformationof

-placedorders-purchasedsupplies-receivedordersfromcustomersFpaymentsmade-employeessignedinandout

3.AdvantagesofaTPS

TheadvantagesofaTPSareasfollows:

-Excellentcustomerservice

-Bettersupplierrelationships

-Competitiveadvantage

-Accuracy

-Betterproductivityofstaff

-Timelyuserresponseandreports

Anenterpriseresourceplanningsystem(erp)

1.WhatisanERP?

AnERPintegratesthedatagatheringanddataprocessesofdepartmentsandfunctionsacrossanorganisationintoonesinglesystemofintegratedapplica-tions.Thissinglesystemcanhandlethevitaloperationsoftheentireorganisationandoftenincludessomefunctionsofthestrategicandtechnicalleveloftheorganisationaswell.

*Pleaserefertothediagramonpage157ontheexplanationofanERPsystem.

2.AdvantagesanddisadvantagesofanERPsystem

Summary

Therearealargenumberofinformationsystemsavailabletoorganisationsandeachoneplaysadifferentrole.Onanoperationallevel,aTPSisabletosupportthebusinessfunctionsofanorganisation,whileanERPcombinesomeorallsystemsinonesystem.Thisprovidesimportantbenefitsfortheorganisation.

StudyUnit18–Managementinformationsystemsanddecisionsupportsystems

Amanagementinformationsystem(MIS)andadecisionsupportsystem(DSS)aretwoofthemostimportantsupporttoolsonthetechnicalmanagementlevel.ThankstoaMISandaDSS,managersandemployeescanaccessusefulinformationinrealtime.ThevitalobjectiveofaMISandaDSSistoassistmanagerstomakebetterdecisionsandsolvekeyproblems.Thiscanresultinhigherrevenues,lowercostsandthesuccessfulrealisationoforganisationalobjectives.

Themaincomponentsofsuchasystemincludeadatabase,people,softwareandlinkstoexternalsourcesofdatasuchastheinternet,corporateintranetsandotherexternaldatabases.

Theproblem-solvinganddecision-makingprocess

AsanMISandaDSSassistmanagementwithdecision-making,weneedtodiscussthedecision-makingprocessfirst.

Solvingproblemsisacrucialactivityforanyorganisation.Onceaproblemhasbeenidentified,theproblem-solvingprocessbeginsbymakingsomevitaldecisions.Theproblem-solvingprocesscanbeexplainedasfollows:

Identifyanddefinetheproblem:Duringthisstage,possibleproblemsoropportunitiesareidentifiedanddefined,andinformationisgatheredthatrelatestothereasonfortheproblem.

Generateandevaluatealternatives:Inthisstage,differentsolutionstotheproblemaregeneratedandtheirviabilityisevaluated.

Selectpreferredsolution:Toselectthepreferredsolutionaplanofactionneedtobedrawnup;ifthisisnotpossible,theprocesswillstartagainfromthebeginning.

Implementtheselectedsolution:Problemsolvinggoesfurtherthandecision-makingandincludestheimplementationofthesolution.Itisduringthisphasethatthesolutionisputintoeffect.

Evaluatetheresults:Thisiswherethedecisionmakersevaluatetheimplementationinordertodeterminewhetherthepredictedresultshavebeenachieved.Inthelightofthisnewinformation,theprocessisthenmodified.

Managementinformationsystems(MIS)

1.WhatisanMIS?

AnMISisanintegratedsystemthatprovidesmanagementwithawidevarietyofdecision-orientedinformationinordertoaccomplishorganisationalobjectives.AnMISconvertsdatafrommainlyinternalsourcesintoinformationandofferregularreportsandonlineaccesstothepresentandpastperformanceoftheorganisation.ThefunctionsofanMISarebasedonthetransactionprocessingsystem,butextrainformationisprovidedtoassistthemanagementwithdecision-making.

2.CharacteristicsofanMIS

-providesreportsusingafixedandstandardformat;forexample,reportsforinventorycontrolwheredifferentmanagerscanusethesamereportfordifferentpurposes

-providesreportsinhardandsoftcopy;althoughmanagersusevisualdisplaysonscreen,reportsarealsoprinted

-providesthepotentialforuserstodrawuptheirowncustomisedreports

-supportsdecisionsatoperationalandmanagementcontrollevels

-usesmainlyinternaldatafromacomputersystemtoprovidereports;canalsouseexternaldatafromtheWeb,includinginflationrates,interestrates,sharepriceandinformationoncompetitors

-providesexceptionreportsonvariancesfrombudgetandallowsmanagerstofeedbackanychangestheyneedtomakeasaresultofthesevariances

-mainfocusofanMISisinternalasitisusedbymanagement

Decisionsupportsystem(DSS)

1.WhatisaDSS?

Asthenameindicates,aDSShelpsmanagementattechnicalandstrategiclevelwithdecision-makingbyprovidingtoolsandmodelstosolvestructured,semi-structuredandunstructuredproblems.ADSSoffersarangeofpossibilities.Itaidsdecisionmakersinavarietyofcircumstancesandprovidessupportforallphasesoftheproblem-solvingprocess.ADSSisaninteractivecomputer-basedsystemandsubsystemintendedtohelp

decision-makersusecommunicationtechnologies,data,documents,knowledgeand/ormodelstocompletedecisionprocesstasks.

2.ThecharacteristicsofaDSS

ThefollowingisasummaryofthecharacteristicsofaDSS:

-DSSisspecificallydevelopedtohelpwithdecision-makingthatvariesfromsolvinghighlystructuredproblemstounstructuredproblems.

-Managersareassistedwithdecision-makingthroughoutthedifferentstagesoftheproblem-solvingprocess.

-Thedecisionprocessesarestreamlined,asaDSShelpswithdecision-makingatstrategic,tacticalandoperationallevelsoftheorganisation,aswellaswithonce-offdecisionsandrepetitivedecisions.

-Informationcanbegeneratedinatimelymanner,becauseaDSSoffersquickaccesstoinformation.

-Usersareallowedtodrilldowntotheorganisation'sinformationandaDSShandleshugeamountsofdatafromvarioussources.

-TheDSSsmainfunctionistosupportdecision-makingratherthantoautomatedecision-making.

-TheflexibilityofaDSSallowsmanagerstocustomisereportsandpresentations.

-ADSSisabletoreactfasttothechangingneedsofusers.

-ADSShelpsbyperformingcomplicatedanalysesandcomparisonsusingadvancedsoftwarepackagessuchasMicrosoftExcel,inareassuchas`what-if'analysis,simulationandgoal-seekinganalysis.

ThedifferencesbetweenaDSSandaMIS

Summary

Inordertoreachtheorganisationalgoals,managersneedinsightintothenormaloperationsoftheorganisation.AnMIShelpsmanagementwiththisprocess,byproducingexceptionreportsbasedonvariancesfromthebudgets,longoutstandingorders,budgetsandprocessedtransactions.

ADSShasmoreanalyticalpowerthananyothersystem.Itisusedbymanagementandemployeestomakedecisionsaboutissueswithhighuncertainty.

StudyUnit20–Knowledgemanagementandotherspecialisedinformationsystems

Inthisstudyunit,wewilldiscusssomesystemsgenerallyusedonthestrategicmanagementlevel.Aknowledgemanagementsystem(KMS)or,morespecifically,expertsystem(ES)andcustomerrelationshipmanagement(CRM)system,willbeexplained.Youwillalsolearnmoreaboutagroupsupportsystem(GSS)andanexecutivesupportsystem(ESS).

Systemsonthestrategiclevelofmanagementuseinformationcapturedandprocessedtogetherwithotherinternalandexternalinformationtoproducecombinedreportsforvitaldecision-makingandplanning.AKMS(ESandCRMsystem)isusedinmanyindustriesandknowledgeaboutthesesystemswillhelpyoutodiscovernewwaystouseinformationsystemsinyourworkplace.AKMSallowsanorganisationtoshareknowledgeandexperienceamongitsmanagersandemployees.AGSSsavestimeandimprovesplanningbysupportingemployeesandmanagerstocommunicatewitheachother,schedulemeetingsonnetworksandsenddocumentstoeachother.

Knowledgemanagementsystem(KMS)

1.WhatisaKMS?

AKMSisasystemusedtosupportthecreation,capturing,storinganddistributionofexpertiseandknowledgebyusingpeople,procedures,software,databases,anddevices.ThereasonforusingaKMSistoprovidespecificaidinachievingtheorganisation'sobjectives(profitmaximisationandcostminimisation).

2.ThecharacteristicsofaKMS

ThemaincharacteristicsofaKMSareasfollows:

-AKMSsolvesappropriateproblemsrelativelyaccurately,dependingonthecomplexityoftheproblem.

-AlthoughaKMShasahighresponsespeed,thespeedislikelytodegradeasthedifficultyoftheproblemincreases.

-Largeamountsofpre-processeddataneedtobesubmittedtothesystem. -StaffrunningaKMSneedtobetrainedandtheyrequireahighlevelofuserknowledge.

3.TwoapplicationsofaKMS

A.Customerrelationshipmanagement(CRM)system

ACRMsystemisaformofKMSandinvolveinformationrelevanttoanorganisation'scustomers.ACRMsystemcomprisessoftwarethatconcen-tratesonprovidinginformationrelatingtoanorganisation'scustomersandproducts.

B.Expertsystem(ES)

AnESattemptstocapturetheknowledgeofexpertsandallowuserswhoarenotexpertsinthefieldtobenefitfromtheavailableknowledge.Thissystemisdevelopedforspecificexpertuseaswellastoidentifyproblems,forecastpotentialevents,andresolveproblems.

Groupsupportsystem(GSS)

1.WhatisaGSS?

AGSS,likegroupware,allowsuserstoworktogetherontasks,adjustthesamedocuments,planappointmentsoneachother'scalendars,sharefilesanddatabases,haveelectronicmeetingsanddevelopreadymadeapplications.

AGSSistypicallyeasytouseandoffersavarietyofdecisionsupport.OnetypeofGSSsoftware,calledgroupware,isdesignedtohelpgeneratelistsofdecisionalternativesandtoperformdataanalyses.

2.GSSalternatives

-Decisionrooms,whichareidealforsituationsinwhichdecisionmakersarelocatedinthesamebuildingorgeographicareaordecisionmakersareoccasionalusersoftheGSSapproach.

-Anotheralternativeisthelocalareadecisionnetwork,whichcanbeusedwhenmembersareinthesamegeographicareaandmeetfrequently.

-Theteleconferencingalternative,ontheotherhand,canbeusedwhendecisionfrequencyislowandthegeographicallocationofgroupmembersisdistant.

-Thelastalternative,wideareadecisionnetworkisusedforsituationswheredecisionfrequencyishighandthegeographicallocationsofmembersaredistant.

3.Thecharacteristicsofagroupsupportsystem(GSS)

-Parallelparticipation.Everyonecaninputideasatonce,soinfacteveryoneistalkingatoncewhichleadstobetterproductivity.Thismakesmeetingsshorterandsavestime.

-Specialdesign.AGSSincorporatesthefactthatuniqueprocedures,devicesandapproachesarenecessaryingroupdecision-making.

-Availabilityofdata.Theminutesofnormalmeetingsaresometimesincompleteorpoorlywritten.EverythingthatiskeyedinduringaGSSmeetingissavedandassoonasthemeetingisover,areportoftheideasexchangedanddecisionsmade,canbeprinted.

-Userfriendly.AGSSiseasytolearn,understandanduse

-Anonymity.Eachparticipant'sinputremainsanonymous.Resultsaremadevisibleonacentral,publicviewscreensonooneknowswhatinputhascomefromwhom.Thismeansharmfulbehaviourisreducedanddominantindividualsarepreventedfromtakingoverthediscussions.

-Flexibility.Asdecision-makershavedifferentapproachesandstyles,aGSSneedstosupporttheiruniqueways,butenhancescompatibilitywithoneanotheraswell.

4.ApplicationsforaGSS

-Capture,storeanddistributememos,forexampleLotusnoteorMSOneNote.

-Microsoftnetmeetingsoftwaresupportsmultipartycalls.

-MicrosoftExchangeallowsuserstoaccessserversindifferentlocationsthroughtheinternet.

-MicrosoftOutlooksupportse-mailmessaging,appointmentschedulingandthesharingofdocuments.

-VideoconferencesarepossibleusingaGSS.

Executivesupportsystem(ESS)

1.WhatisanESS?

AnESSisaspecialiseddecisionsupportsystemthatpoolsdatafrominternalandexternalsourcesandmakeinformationavailabletoseniormanagementinauser-friendlymanner.Itisusedinstrategicmattersandforhigh-leveldecision-making.AnESSprovidestopmanagementwithawayoftrackingcriticalsuccessfactors.

2.CharacteristicsofanESS

-Managementcandrilldownintocompanyreportstoestablishhowinformationhasbeenproducedandtogetinformationthatismoredetailed.

-TheESScanbeapproacheddifferentlytosuitindividualexecutivesfortheirbenefit.

-NospecifictrainingisrequiredbecauseanESSisuserfriendly.

-UsinganESS,managementwilltrackinformationquickly,filterdata,deliverasummaryofthecompany'sinformationandsavetime.

3.ApplicationsforanESS

-ManagementcanuseanESStoassisttheminplanningtheacquisitionofnewequipment.

-OrganisationscananalysemergerpossibilitiesusinganESS.

-AnESStakesfulladvantageofdatamining,internetblogs,podcastsanddashboards.ManagementcangainanoverallvisionofasituationandanESShelpsthemwitheffectivestrategicplanning.

-AnESSsupportsstrategicorganisation,employmentandcontrol.

-Informationfromawidevarietyofsourcesisgatheredtohelpmanagementinmakinginformedtop-leveldecisions.

-Owingtocapacityandcomplexity,anESSmaybecomeslowandhardtomanage.

Summary

Tosummarise:AKMS,CRMsystemandanESusetheknowledgeofexpertstoimproveperformanceandachievetheobjectivesoftheorganisation.ACRMsysteminvolvesallcustomeractivitiesandhandleallinformationonthem,whileanESbehavessimilarlytohumanexperts,forexample;anESoftendeterminescreditlimitsforcreditcards.

AGSSwasdevelopedtoassistinthedecision-makingprocessbytakingaDSSandaddingsoftwarethatallowsittobeusedbygroupsofindividualswithaspecificprofile.AGSSisthecombinationofdata,analyticalmodelsanduser-friendlysoftwareinonesinglesoftwaresystem.

Usingauser-friendlyinterface,anESSoffersmanagementinstant,relevantinformationthatiseasilyaccessible.

StudyUnit21–Electroniccommerce

Therapidgrowthinthenumbersofinternet,cellphoneandothermobiletechnologyusershasledtoaboominelectronicandmobilecommerce.Thiselectronicenvironmentlevelstheplayingfieldbetweensmallandbigorganisationsasitallowssmallorganisationsinstantaccesstotheglobalmarketplaceinwhichtheycancompeteeffectively.Mostorganisationscanthereforenolongeraffordtoignoretheopportunitiescreatedbythisfast-movingenvironment.Inthisstudyunit,wewilllearnmoreaboutelectroniccommerce(e-commerce)andmobilecommerce(m-commerce).Tounder-stande-commerceandm-commercebetter,thebasicconceptsofe-businessande-marketingwillbeexplainedaswell.Wewillalsolearnaboutthedifferente-commercecategoriesandtheadvantagesanddisadvantagesofbothe-commerceandm-commerce.Wewillendthisstudyunitwithadiscussionoftheroletheorganisation'saccountingfunctionplaysinthee-businessenvironment.

Theimportanceofknowledgeaboute-businessconcepts

E-commercesystemsarebecominganimportantwayofconductingbusiness;therefore,anappropriateknowledgeofe-businessisrequired,foramongstothers,thefollowingreasons:

-Firstlyandmostimportantly,agoodknowledgeoftheorganisation'se-commercesystemandprocessesisrequiredtobeabletodeterminehoweachprocessimpactsondifferentdepartments.Thisknowledgewillhelp±forexample±tomitigatethreats.

-Toensurethatproperpoliciesareselectedandadheredto.Anexampleisaccountingpolicies.

-Relevantknowledgewillaidinunderstandingthatrelevantaccountingrecords,auditevidenceandaudittrailsneedtobemaintained.

-Toensurethatrelevantthreatsaremitigated,forexample,byadequatefirewalls,anti-virussoftwareandane-commercebusinesscontinuityplan.

-Toensurethattheorganisationcomplieswithallrelevantnationalandinternationallawsandregulations.

-Byunderstandinge-businessconcepts,youwillidentifytheneedforintegratingane-commercesystemintotherelevantfinancialoroperationalsystem.Thiswillensure

efficientworkingofthesystemandthataccurate,valid,relevantandtimelyinformationisproducedbythesystem.

Concepts,advantagesanddisadvantages

1.E-business,e-marketing,m-commerceande-commerce

E-commerceandm-commercearesubsectionsofe-business,thereforetounderstande-commerceandm-commercewefirsthavetohaveabasicunderstandingofwhate-businessis,aswellasabasicunderstandingofe-marketing,oneoftheothersubsectionsofe-business.

A.Whatise-business?

E-businessencompassesallbusinessprocessesincludingresearchanddevelopment,finance,marketing,manufacturingandhumanresourceactivitiesenabledbytechnology.

B.Whatise-marketing?

Electronicmarketing(e-marketing)useselectronictechnologiestocreateproduct,companyandbrandawarenesstogenerateleads,providecustomerserviceandofferincentivessuchasdiscountsforonlinepurchases.

C.Whatism-commerce?

Mobilecommerce,alsoknownasm-commerce,issimilartoe-commerce.

M-commerceusesmobiledevicessuchassmartphones,cellphones,PDAs(Personaldigitalassistant),tabletpersonalcomputers(egAppleiPad,Black-Berryplaybook)andsuchliketosell,deliver,serviceandpayforproductsandservices.

D.Whatise-commerce?

Electroniccommerce,alsoknownase-commerce,canbedefinedastechnology-mediatedexchangeincludingthebusinessprocessofselling,buying,delivering,servicingandpayingforproductsandservicesovercomputernetworks.

2.Themaine-commercecategories

E-commercecanbedividedinfivemaincategories,differentiatedaccordingtotheparticipants.

-Business-to-business(B2B)

-Business-to-consumer(B2C)

-Consumer-to-consumer(C2C)

-Consumer-to-business(C2B)

-E-government

3.Advantagesanddisadvantagesofe-commerceandm-commerce

Therearebothadvantagesanddisadvantagestousinge-commerceandm-commerceforcustomersandorganisations.

*Pleaserefertothetableinyourstudyguideregardingtheseadvantagesanddisadvantages.

Summary

Inthisstudyunit,welearntthebasicconceptsofe-businessande-marketing,asthisincreasedourunderstandingofe-commerceandm-commerce.Wethenlookedinmoredetailate-commerceandm-commerce,specificallythefivemaine-commercecategories,aswellastheadvantagesanddisadvantagesofe-commerceandm-commerce.Wealsolookedattheroleoftheorganisation'saccountantinane-businessenvironment.

StudyUnit22–Electroniccommercerelatedthreatsandcontrols

Althoughusinge-andm-commercemayhavemajoradvantagesforbusinessandcustomers,theirusealsocreatesuniquethreatsforbothparties.Inthisstudyunit,wearegoingtolookatsomeoftheuniquethreatsfacedbye-commerceandthepossiblestepsanorganisationcantaketomitigatethesethreats.

E-commercespecificthreats

E-commerceexposesallparticipantsinthee-commercetransactiontothreats.Thesethreatsareclassifiedintothreemaincategories,namelyinformation,technologyandbusinessthreats.Thecategoryclassificationisnotclear-cutassomethreatscanbeclassifiedinmorethanonecategory.Astechnologyadvances,thethreatstoacomputersystemande-commercewilladvanceaswell.Thethreatsdiscussedarethereforenotacompletelist.

1.Informationthreats

Informationthreatsentailallthreatsassociatedwiththeavailabilityofdataandinformationonwebsites,andthemisuseandthepossiblecorruptionofsuchinformationanddata.

2.Technologythreats

Technologythreatsincludethreatsinvolvingthetechnologiesusedinthee-commerceprocesssuchashardware,software,telecommunicationanddatabases.

3.Businessthreats

Businessthreatsincludethreatssurroundingtheinternetrelationshipbetweencustomersandorganisation,othercontractualrelationshipsandthethreatswithregardtoproductsandservicesmarketedanddistributedovertheinternet.

Controlstomitigatee-commercethreats

Organisationscannoteliminatee-commercethreatsaltogether,butcanimplementcontrolstoreduceexposuretothesethreats.Thecontrolsbelowarespecificallyapplicabletoane-commercewebsite.

-Installfirewalls,anti-virus,anti-spamandanti-spywaresoftwareandupdatethissoftwareregularlywiththelatestpatchesandupdates.

-E-commercewebsitedisclaimersmustbeappropriatelywordedandprominentlydisplayedontheapplicablewebsitepages.

-Installreputationmanagementsoftware.

-Establishane-commercebusinesscontinuityplanforallcriticale-commercecomponents.

-Organisationsmustinstallstrongauthenticationprocesses.Theseprocessesmustentailmorethanjustasimplepassword.

-Whenencryptinganelectronicmessage,theelectronicmessageisconvertedintoaformthatcanonlybeunderstoodbytheintendedrecipient.

Summary

Inthisstudyunit,welookedattheuniquethreatsanorganisationfaceswhenusinge-commerceandthestepsandcontrolssuchanorganisationcantaketomitigatethesethreats.