5 Components of IT
1. Hardware-actual physical computer or computer peripherals device
2. Softwares-programs that turn data into information
3. Data-raw facts (information=processed data that is meaningful)
4. People
5. Network-Shares data
Software Categories
1. System software
2. Programming languages
3. Application software
Business Information Systems
Computer systems that can accurately record and summarize business transactions
BIS allows a business to perform the following functions on data
1. Collect
2. Process
3. Store
4. Transform
5. Distribute
3 Primary Roles of BIS
1. Process Detailed Data-TPS (Transaction processing systems)
2. Assist in making daily decisions- MIS/KS (Management information systems/knowledge systems)
3. Assist in developing business strategy-EIS (Executive information systems)
1. Accounting Information System
2. Type of management information system, partly transaction processing system & partly knowledge system
Objectives of AIS
1. Record valid transactions
2. Properly classify transactions
3. Record at proper values
4. Record in proper accounting period
5. Properly present the transactions & related info in F/S
AIS’s create audit trails. Example?
Source documents (invoice, timecard)→File
Journal→Ledger→Trial Balance→Financial Statements
Production data VS. Test data
Production: Live, real; data stored on devices, results from production processing & is stored in production systems
Test: Staged, fake; data stored on devices, results from test processing & is stored in test systems
Components of BIS
1. TPS; transaction processing system
2. DSS; Decision Support System
3. MIS: Management Information System–AIS: Accounting Information System
4. KS: Knowledge System
5. EIS: Executive Information System
Well Designed AIS
1. Should allow transaction to be traced from input to output
2. be vouched from output from input
1. Transaction Processing System
2. Useful for processing daily transactions
Examples of TPS
1. Sales order entry
2. Tracking systems
3. Hotel & airline reservation systems
4. Payroll & HR systems
5. Accounting systems
6. Manufacturing, plant scheduling, securities trading & shipping systems
1. Decision Support System (Expert Systems)
2. Assists managers in making daily business decisions by providing objective analytical data
Examples of DSS
1. Production planning
2. Inventory control
3. Bid preparation
4. Revenue optimization
5. Traffic planning & capital investment planning systems
Management Information System
Provide managers and end users with
Made up of communication media that allows multiple computers to share data & info simultaneously
1. Executive Information Systems

2. Provides senior executives with immediate & easy access to internal & external information to assist the executives in monitoring business conditions in general

Types of Reports
1. Periodic report
2. Exception report
3. Demand report
4. Ad hoc report
5. Push report
Demand Reporting
can pull whenever
Ad hoc Reporting
1. on the fly
2. does not exist yet
3. Many programs come with this functionality to submit a query
Push Reporting
1. Comes up every time you log in; Infor pushed & sent to a computer screen or computer desktop

2. Traditional pull reporting: entails the end user or report programmer defining what information is desired & then extracting the information using some tool

People in IT
1. System Analyst
2. Computer Programmer
3. Computer Operator
4. IT Supervisor
5. File Librarian
6. Data Librarian
7. Security Administrator
8. System Administrator
9. Data Input Clerk
10. Hardware Technican
11. End User
Systems Analyst
Architect of overall computer
Computer Programmer
EG: Software Developer
1. Write/ Maintain application programs.
2. Also test application and write instructions. A large portion of budget goes to application maintenance
System Programmer
1. Maintain/troubleshoot the OS
2. May also forecast hardware capacity
4. Only test data
Computer Operator
Archaic title

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