ACC200 Ch1 Set 4 Flashcards
(20 cards)
How can an AIS add value to an organisation?
1) improving the quality & reducing costs of products or services
2) improving efficiency
3) sharing knowledge
4) improving efficiency & effectiveness of its supply chain
5) improving the internal control structure
6) improving decision-making
Steps to decision-making?
1) identify the problem
2) collect & interpret information
3) evaluate ways to solve the problem
4) select a solution methodology
5) implement the solution
How can an AIS help improve decision-making?
- it can identify situations requiring management action
- it can reduce uncertainty & thereby provide a basis for choosing among alternative actions
- it can store information about results of previous decisions, which provides valuable feedback that can be used to improve future decisions
- it can provide accurate information in a timely manner
How can an AIS help improve decision-making?
Factors influencing design of an AIS?
- organisational culture
- business strategy
- information technology
Predictive analysis
Value chain
a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market .
Primary activities
Value chain - five primary activities that directly provide value to customers?
1) Inbound logistics
2) Operations activities
3) Outbound logistics
4) Marketing & sales activities
5) Service activities
Inbound logistics
consist of receiving, storing & distributing materials an organisation uses to create services & products it sells
Operations activities
transform inputs into final products or services
Outbound logistics activities
distribute finished products or services to customers
Marketing & sales activities
help customers buy an organisation’s products or services
Service activities
provide post-sale support to customers
Support activities
allow the 5 primary activities to be performed efficiently and effectively
Support activity categories
1) Firm infrastructure
2) Human resources activities
3) Technology activities
4) Purchasing activities
Firm infrastructure
usually made up of accounting, finance, legal and general administration activities that allow an organisation to function. An AIS is part of a firm’s infrastructure
Human resources activities
Technology activities
improve a product or service
Purchasing activities
procure raw materials, supplies, machinery & buildings used to carry out primary activities
