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Chap: 1 - Managing Information - Coggle Diagram
Chap: 1 - Managing Information
Link between management accounting and information systems:
An information system is a combination of hardware, software and communications capability, where information is collected, processed and stored.
Management Accounting and Information systems play a vital role in a PM because they provide information that managers use as basis for
planning, control, decision making and measuring performance.
Role of an Information System:
It can be used to improve processes within organisations as well as externally with suppliers and customers.
Organisations need information system to enable them to capture and generate the information that managers need for planning, control and decision making purposes.
They improve communication, allow better operations and manufacturing, enhance products and services provided and supply opportunities to reduce costs.
Why are Information Systems needed?
Supporting Operations:
Processing and recording transactions
- Supporting managerial activities:
Planning, Control, Decision Making and Performance measurement
Benefits of Information System:
Information is a now recognised as a valuable resource, and a key tool in the quest for a competitive advantage.
Easy access to information, the quality of that information and speedy methods of exchanging the information have become essential elements of business success.
Organisations that make good use of information in decision-making, and which use new technologies to access, process and exchange information are likely to be best placed to survive in increasingly competitive world markets.
Costs of Information Systems:
Hardware and software costs
Implementation costs
Day to day costs: such as salaries & accommodation
Types of Information Costs:
Direct data capture costs
Process costs
Indirect costs of internal information
How can information be shared:
-> Communicating information is much easier when computers are connected to form a network.
-> Various forms of network can be formed:
Global in the form of the internet
Local in the form of the intranet.
Networks
Intranets
Wireless Technology
The Internet
Extranet
Cloud Computing
Controls over information:
Reports
Distribution
Controls over internal generating information in routine reports
Controls over generating internal information in ad hoc reports
Controls over distributing internal information
If information is held on a server
Security and confidential information:
Passwords
Logical access systems
Database controls
Firewalls
Encryption
Anti-virus and anti-spyware software
Personnel policies
Other safety measures:
Authentication
Dial back security
Internal sources of information:
Financial accounting records
Other internal sources:
Payroll
External Sources of information:
Directories
Associations
Government Agencies
Customers/consumer panels
Suppliers
Internet
Databases/data warehouses
Information for control purposes:
Control is dependent on the receipt and processing of information, both to plan in the first place and to compare results against the plan, so as to judge what control measures are needed.
-
Plans
will be based on an awareness of the environment and on the current performance of the organisation.
Control
is achieved through feedback - information about actual results produced from within the organisation with control decisions.