Chapter 1 Flashcards
(27 cards)
system
is a set of two or more interrelated components that interact to achieve a goal.
Goal conflict
occurs when a subsystem’s goals are inconsistent with the goals another subsystem or with the system as a whole.
Goal congruence
occurs when a subsystem achieve its goals while contributing to the organization’s overall goal
Data
are facts that are collected, recorded, stored and processed by an information system.
information
is data that have been organized and processed to provide meaning meaning and improve the decision-making process
information overload
occurs when those limits are passed, resulting in a decline in decision-making quality and an increase in the cost of providing that information.
value of information
is the benefit produced by the information minus the cost of producing it
characteristic of useful information
- relevant
- reliable
- complete
- timely
- understandable
- verifiable
- accessible
business process
is a set of related, coordinated, and structured activities and tasks that are performed by a person, a computer, or a machine and that help accomplish a specific organizational goal
transaction
is an agreement between 2 entities to exchange goods or service or any other event that can be measured in economic terms by an organization
the revenue cycle
where goods and services are sold for cash or a future promise to receive cash
expenditure cycle
where companies purchase inventory for resale or raw materials to use in producing products in exchange for cash or a future promise to pay cash
production or conversion cycle
where raw materials are transformed into finished gods
human resources/payroll cycle
where employees are hired, trained, compensated, evaluated, promoted and terminated
financing cycle
where companies sell shares in the company to investors and borrow money and where investors are paid dividends and interest is paid on loans
predictive analysis
the use of data warehouses and complex algorithms to forecasts future events, based on historical tends and calculated probabilities
value chain
linking together of all the primary and support activites in a business.
primary activities
value chain activities that produce, market, and deliver products and services to customers and provide post-delivery service
inbound logistics
consists of receiving, storing, and distributing the materials an organization uses to create services and products it sells. (primary))
operations
transform inputs into final products or services ex. assembly line (primary)
outbound logistics
activities distribute finished products or services to customers
marketing and sales
activities help customers buy the organization’s products or services
service
provide post-sale support to customers
support activities
value chain activities such as firm infrastructure, technology, purchasing, and human resources that enable primary activities to performed efficiently and effectively
