1 Accounting Information Systems: A Business Process Approach Chapter Twelve: Using Technology to Enhance Business Processes

2 Learning Objective After completing this chapter, you should understand: §The architecture of multi-user systems (local area net works, wide area networks, terminal emulation, file-server systems, and client-server systems). §The role of the following IT approaches in enhancing business processes: e-commerce, intranet, extranets, data warehousing, data mining, enterprise resource planning (ERP) systems, electronic data interchange (EDI), and customer relationship management (CRM) systems.

3 Learning Objective (Continue) §Privacy and security in networked systems §The role of accountants in helping business use IT effectively to enhance business processes

4 Learning Objective (Continue) After completing this chapter, you should be able to: §Explain how various IT approaches can be used to enhance business processes §Identify some important costs, benefits, risks, and controls associated with the use of these technologies

5 Tables:

6 Table 12.1 Examples of Value Activities for ELERBE, Inc. Support Value Activities________________________________ Primary ValueHumanTechnology ActivitiesResourcesAcquisitionsDevelopment MarketingDemonstrateHire salespeopleAcquire supplies,Develop marketing products toTrain salespeoplelaptops, and productstechnologies, facultyAssign salespeoplefor marketingincluding IT Calculate and pay salaries/commissions OutboundObtain ordersHire and train orderAcquire supplies,Develop technologies logisticsPick goodsentry clerks,packagingto enhance logistics Ship goodswarehouse, andmaterials, andincluding IT (e.g., shipping personneltechnology foron-line order Process payrolloutbound logisticsprocessing)

7 Table 12.2 Examples of Tags CategoryTagDescription Formatting Information between these two tags appears in bold (e.g., the book title). Starts a new paragraph. Line break. Creates a space between lines. Tables Starts and ends a table. Starts and ends a row in a table. You see two sets of and tags since there are two rows. Starts and ends each data item in a row. After each tag, you see two sets of tags since there are two columns and thus two data items in each row. Links. The HREF attribute is used to specify which file is being linked to. If a student clicks this link, the Chapter1.html file will be displayed.

8 Table 12.3 Tables Used in ELERBE’s Order Processing Application Inventory Table ISBNAuthorTitlePrice BarnesIntroduction to Business$ CromwellBuilding Database$65.00 Applications CromwellManagement Information$68.00 Systems JohnsonPrinciples of Accounting$ PlattIntroduction to E-Commerce$72.00

9 Table 12.4 Tables Stored On-Line in a Sales Application Custo-LastFirst2003 mer#NameNameTypeStreetCitySTZipSales 307SmithJohnRetail43 Main St.LupoTX , ClarkeLeeWhol.25 Blue St.BaltoMD212473, GarciaJohnRetail35 Lilly St.L.A.CA801054,500 Trans-Custo-Sales- action#Datemer#Product#QuantityPriceperson# /18/ $ /18/ $ /20/ $ /20/ $16344

10 Table 12.5 Records Stored in a Data Warehouse TypeDateProduct#QuantityPriceZip2003 Sales Retail12/18/ $ ,700 Wholesale12/18/ $ ,000 Retail12/20/ $ ,500 Wholesale12/20/ $ ,000

11 Integrating Business Processes, Data and Application §Enterprise resource planning (ERP) §E-commerce between business often uses electronic data interchange (EDI) and/or extensible markup language (XML) §Customer relationship management (CRM) system emphasize the integration of all customer-facing applications including marketing, sales, and service

12 IT Business Processes: Risks and Controls §Privacy §Data Collection §User Control §Privacy Policies §Secure Transaction Encryption and Authentication §Digital Signatures, Hashing,, and Message Integrity §Digital Certificates §Timestamping

13 IT Business Processes: A Role for Accountants §Assurance Service §Analyze IT Investments §Design and Implement IT Solutions §Enhance Value of Current Services