An accounting as an information system (AIS) is a system of collecting, storing and processing financial

and accounting data that are used by decision makers. An accounting information system is generally a
computer-based method for tracking accounting activity in conjunction with information technology resources.
The resulting financial reports can be used internally by management or externally by other interested parties
including investors, creditors and tax authorities. Accounting information systems are designed to support all
accounting functions and activities including auditing, financial accounting & reporting,
managerial/ management accounting and tax. The most widely adopted accounting information systems are
auditing and financial reporting modules. Traditionally, accounting is purely based on manual approach.
Experience and skilfulness of an individual accountant are critical in accounting processes. Even using the
manual approach can be ineffective and inefficient. Accounting information systems resolve many of above
issues. AISs can support an automation of processing large amount of data and produce timely and accuracy
of information.
Early accounting information systems were designed for payroll functions in 1970s. Initially, accounting
information systems were developed "in-house" as no packaged solutions were available. Such solutions were
expensive to develop and difficult to maintain. Therefore, many accounting practitioners preferred the manual
approach rather than computer-based. Today, accounting information systems are more commonly sold as
prebuilt software packages from large vendors such as Microsoft, Sage Group, SAP AG|SAP and Oracle
Corporation|Oracle where it is configured and customized to match the organization's business processes.
Small businesses often use accounting lower costs software packages such as Tally.ERP 9, MYOB and
Quickbooks. Large organisations would often choose ERP systems. As the need for connectivity and
consolidation between other business systems increased, accounting information systems were merged with
larger, more centralized systems known as enterprise resource planning (ERP). Before, with separate
applications to manage different business functions, organizations had to develop complex interfaces for the
systems to communicate with each other. In ERP, a system such as accounting information system is built as a
module integrated into a suite of applications that can include manufacturing, supply chain, human resources.
These modules are integrated together and are able to access the same data and execute complex business
processes. Today, Cloud-based accounting information systems are increasingly popular for both SMEs and
large organisations for lower costs. With adoption of accounting information systems, many businesses have
removed low skills, transactional and operational accounting roles.

An example of architecture[edit]
An AIS typically follows a multitier architecture separating the presentation to the user, application processing
and data management in distinct layers. The presentation layer manages how the information is displayed to
and viewed by functional users of the system (through mobile devices, web browsers or client application). The
entire system is backed by a centralized database that stores all of the data. This can include transactional
data generated from the core business processes (purchasing, inventory, accounting) or static, master
data that is referenced when processing data (employee and customer account records and configuration
settings). As transactions occur, the data is collected from the business events and stored into the system's
database where it can be retrieved and processed into information that is useful for making decisions. The
application layer retrieves the raw data held in the log database layer, processes it based on the configured
business logic and passes it onto the presentation layer to display to the users. For example, consider the
accounts payable department when processing an invoice. With an accounting information system,
an accounts payable clerk enters the invoice, provided by a vendor, into the system where it is then stored in
the database. When goods from the vendor are received, a receipt is created and also entered into the AIS.
Before the accounts payable department pays the vendor, the system's application processing tier performs a
three-way matching where it automatically matches the amounts on the invoice against the amounts on the
receipt and the initial purchase order. Once the match is complete, an email is sent to an accounts payable
manager for approval. From here a voucher can be created and the vendor can ultimately be paid.

Advantages and implications[edit]

A big advantage of computer-based accounting information systems is that they automate and
streamline reporting, develop advanced modelling and support data mining.[1] Reporting is major tool for
organizations to accurately see summarized, timely information used for decision-making and financial
reporting. The accounting information system pulls data from the centralized database, processes and
transforms it and ultimately generates a summary of that data as information that can now be easily consumed
and analyzed by business analysts, managers or other decision makers. These systems must ensure that the
reports are timely so that decision-makers are not acting on old, irrelevant information and, rather, able to act
quickly and effectively based on report results. Consolidation is one of the hallmarks of reporting as people do
not have to look through an enormous number of transactions. For instance, at the end of the month, a financial
accountant consolidates all the paid vouchers by running a report on the system. The system's application
layer provides a report with the total amount paid to its vendors for that particular month. With large
corporations that generate large volumes of transactional data, running reports with even an AIS can take days
or even weeks.
After the wave of corporate scandals from large companies such as Tyco International, Enron and WorldCom,
major emphasis was put on enforcing public companies to implement strong internal controls into their
transaction-based systems. This was made into law with the passage of the Sarbanes–Oxley Act of 2002 which
stipulated that companies must generate an internal control report stating who is responsible for an
organization's internal control structure and outlines the overall effectiveness of these controls. [2] Since most of
these scandals were rooted in the companies' accounting practices, much of the emphasis of Sarbanes
Oxley was put on computer-based accounting information systems. Today, AIS vendors tout their governance,
risk management, and compliance features to ensure business processes are robust and protected and the
organization's assets (including data) are secured.

Implementation[edit]
Many large and SMEs are now adopting cost effective cloud-based accounting information system in recent
years.
Looking back years ago, most organizations, even larger ones, hire outside consultants, either from the
software publisher or consultants who understand the organization and who work to help select and implement
the ideal configuration, taking all components into consideration.
The steps to implement an accounting information system are as follows:
Detailed Requirements Analysis
where all individuals involved in the system are interviewed. The current system is thoroughly
understood, including problems, and complete documentation of the system—transactions, reports,
and questions that need to be answered—are gathered. User needs that are not in the current system
are outlined and documented. Users include everyone, from top management to data entry. The
requirements analysis not only provides the developer with the specific needs, it also helps users
accept the change. Users who have the opportunity to ask questions and provide input are much more
confident and receptive of the change, than those who sit back and don't express their concerns.
Systems Design (synthesis)
The analysis is thoroughly reviewed and a new system is created. The system that surrounds the
system is often the most important. What data needs to go into the system and how is this going to be
handled? What information needs to come out of the system how is it going to be formatted? If we
know what needs to come out, we know what we need to put into the system. The program we select
will need to appropriately handle the process. The system is built with control files, sample master
records, and the ability to perform processes on a test basis. The system is designed to include
appropriate internal controls and to provide management with the information needed to make
decisions. It is a goal of an accounting information system to provide information that is relevant,
meaningful, reliable, useful, and current. To achieve this, the system is designed so that transactions
are entered as they occur (either manually or electronically) and information is immediately available
online for management.
Once the system is designed, an RFP is created detailing the requirements and fundamental design.
Vendors are asked to respond to the proposal, to provide demonstrations of the product, and to
specifically respond to the needs of the organization. Ideally, the vendor will input control files, sample
master records, and be able to show how transactions are processed that result in the information that
management needs to make decisions. An RFP for the information technology infrastructure follows
the selection of the software product because the software product generally has specific requirements
for infrastructure. Sometimes, the software and the infrastructure is selected from the same vendor. If
not, the organization must ensure that vendors will work together without "pointing fingers" when there
is an issue with either the software or the infrastructure.
 Documentation
As the system is being designed, it is documented. The documentation includes vendor documentation
of the system and, more importantly, the procedures or detailed instructions that help users handle
each process specific to the organization. Most documentation and procedures are online and it is
helpful if organizations can add to the help instructions provided by the software vendor.
Documentation and procedures tend to be an afterthought but is the insurance policy and the tool used
during testing and training—before launch. The documentation is tested during the training so that
when the system is launched, there is no question that it works and that the users are confident with
the change.
Testing
Before launch, all processes are tested from input through output, using the documentation as a tool to
ensure that all processes are thoroughly documented and that users can easily follow the procedures:
They know it works and that the procedures will be followed consistently. The reports are reviewed and
verified, so that there's no garbage in-garbage out. This is done in a test system not yet fully populated
with live data. Unfortunately, most organizations launch systems before thorough testing, adding to
end-user frustration when processes don't work. The documentation and procedures may be modified
during this process. All identified transactions must be tested during this step. All reports and online
information must be verified and traced through the audit trail so that management is ensured that
transactions will be handled consistently and that the information can be relied upon to make
decisions.
Training
Before launch, all users need to be trained, with procedures. This means a trainer using the
procedures to show each end user how to handle a procedures. The procedures often need to be
updated during training as users describe their unique circumstances and the "design" is modified with
this additional information. The end user then performs the procedure with the trainer and the
documentation. The end user then performs the procedure with the documentation alone. The end
user is then on his or her own with the support, either in person or by phone, of the trainer or other
support person. This is before data conversion.
Data Conversion
Tools are developed to convert the data from the current system (which was documented in the
requirements analysis) to the new system. The data is mapped from one system to the other and data
files are created that will work with the tools that are developed. The conversion is thoroughly tested
and verified before final conversion. There's a backup so it can be restarted, if necessary.
Launch
The system is implemented only after all of the above is completed. The entire organization is aware of
the launch date. Ideally, the current system is retained and often run in "parallel" until the new system
is in full operation and working properly. With the current mass-market software used by thousands of
companies and fundamentally proven to work, the "parallel" run that is mandatory with software tailor-
made to a company is generally not done. This is only true, however, when the above process is
followed, the system is thoroughly documented and tested, and users are trained before launch.
Tools
Online resources are available to assist with strategic planning of accounting information systems.
Information systems and financial forms aid in determining the specific needs of each organization, as
well as assigning responsibility to principles involved.[3]
Support
The end users and managers have ongoing support available at all times. System upgrades follow a
similar process and all users are thoroughly apprised of changes, upgraded in an efficient manner, and
trained.
Many organizations chose to limit the time and money spent on the analysis, design, documentation,
and training, and move right into software selection and implementation. If a detailed requirements
analysis is performed with adequate time being spent on the analysis, the implementation and ongoing
support will be minimal. Organizations that skip the steps to ensure the system meets their needs are
often left with frustrated end users, costly support, and information that is not current or correct. Worse
yet, these organizations build the system three times instead of once.

Career[edit]
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This section uses second-person

("you") inappropriately. (April 2017)

This section does

not cite any sources. (April 2017)

Many AIS professionals work for consulting firms, large

corporations, insurance companies, financial firms,
government agencies and public accounting firms, among
other types of companies. With technological advancement,
traditional accounting practice will shift to accounting
information systems practice. Both accounting and
information technology professional bodies are working on
the new directions of accounting programs and industry
practices. System Auditors is one of the top choices in the
past two decades, they look at the controls, data processing,
data integrity, general operation, maintenance, security and
other aspects of all types of information systems used by
businesses. A lot of the companies will deal with software
and finding a software that is right for the company, or
maintaining a software for a company. If you are interested
in the career, you might have the choice of working in the
financial department of any type of business, or of working
with a financially oriented company or a programming-
oriented company that specializes in AIS. Some job titles in
this field of work include financial manager, financial
examiner and chief financial officer. You could also become
a computer systems analyst, a computer information
systems manager or a computer software engineer or
programmer specializing in financial software.
If you are working with a financially oriented company, your
job duties could range from analyzing an AIS for data
integrity to managing the entire AIS. In a programming-
oriented company, your focus may be directed towards
developing new software in AIS or fixing bugs in an AIS. In
both cases, you may also have the option of consulting,
which requires travelling to different companies to provide
analysis and advice concerning the company's AIS.
There are industry associations offer certificates that related
to AIS area include CISA, AIS, CISSP, CIA, AFE, CFE, and
CITP.

Se
Cost Effectiveness
Accounting information system makes the maintenance of a bloated financial department
irrelevant. The software does most of the work that would otherwise require several
employees. The accounting software can journal and prepare documents such as the trial
balance. Journals and ledgers are recorded in the computer data bases. There is also
software that can perform functions such as billing budgeting and preparing payroll.
Accounting information systems help cuts the payroll for accounting staff substantially.

Efficiency
Computerized financial information systems are faster and more efficient in processing data.
The use of hardware such as scanners automatically generates accounting information
without much ado. The information is available almost immediately. The cost of hardware
such as computers is low and the availability of cheaper and user-friendly accounting software
makes accounting information systems affordable. Computerized financial systems enable
users to access it promptly by the click of a mouse. Unlike manual, which by the way is still
very much in existence as some companies want to keep both electronic and manual
accounting information systems, the user does not have to go through a pile of paper work in
order to locate the information he needs.

Cost Effectiveness
From your company's online store to the enterprise software your business uses to record
transactions and gather information, information technology has an essential role in your small
business's daily operations and success. The role of IT in business is seen in how it can help
your company become more productive, increase performance, save money, improve the
customer experience, streamline communications and enhance managerial decision-making.
It also plays a role in helping companies expand globally and in providing staff access to
company information wherever and whenever they need it.

Improved Organizational Communication

An important use of technology in business is for communication through platforms such as
conferencing software, email, video chat, company intranets and the internet in general. IT
allows businesses to easily hold virtual meetings with staff and clients around the world
without having to spend time and money on travel. At the same time, employees can access
and share information and collaborate on their work regardless of location; employees can
even work remotely so that the company can save on costs. Companies can also use
platforms such as social media to address customer concerns more efficiently.

More Efficient Daily Operations

Another role of IT in business is to improve the efficiency of operations so that the company
can complete tasks quicker and cheaper. This often happens with the help of enterprise
software and a centralized company database.

Rather than having to get workers to count and monitor inventory, companies can use
inventory management software that checks real-time levels, provides helpful reports to
 managers and can even trigger orders when the supply is low. Customer relationship
management software has automated common sales and marketing tasks such as generating
leads, sending promotions and tracking metrics. Companies can also take advantage of fully
featured enterprise resource planning software to make it easier to do accounting tasks,
manage human resources, monitor the supply chain, generate invoices and make supply
purchases.

Better Customer Experience

IT also makes it easier to provide a good customer experience through improved customer
service, easier customized marketing and e-commerce. Rather than only being able to
reach the company during business hours, customers can conveniently interact with the
company on its website and through social media, email and custom instant messaging
services. Through tracking customers' previous purchases with marketing software,
companies can send customized promotions that better meet customers' needs and result in
more likely sales. Customers also benefit from being able to purchase products and services
from the company's website, and this also increases the potential for more revenue and
growth for the company.

Information Technology and Business Decision-Making

The role of information technology in management decision-making is seen in tools such
as ERP software and decision support systems that help managers see company
performance data in real time so that they can make more informed decisions. Such software
presents an online dashboard with information about the company's finances, customers,
sales and marketing trends and inventory levels. Managers can use the data to decide which
products to promote or stop selling, where to cut expenses, which customers need support
and when to place supply and materials orders.

Other Business Roles of IT

Other examples of IT's role in business include the following:

 Internet-enabled systems, such as secure entry systems and wireless cameras, help
improve business security and reduce risks of theft and loss of confidential information.

 IT allows companies to store important company data in a database in the cloud to reduce
paper waste, increase security and allow for easy backups.

 IT allows companies to expand internationally as easily as setting up a multi-language website

that markets to global customers and allows purchases in multiple currencies.

 Companies can use online recruitment to find more qualified job candidates and handle
most of the hiring process online.
From enabE IMPORTANCE OF ACCOUNTING INFORMATION SYSTEMS TO
ACCOUNTANTS (STUDY OBJECTIVE 8)

Anyone pursuing an accounting career must study and understand accounting information systems (AIS)
and the related concepts. No matter which particular career path is chosen within accounting, it will in
some manner involve the use of an accounting information system. Accountants have several possible
roles related to accounting information systems: They may be users of the AIS, part of the design or
implementation team of an AIS, and/or auditors of an AIS.

USERS OF THE AIS

Accountants within any organization must use the accounting information system to accomplish the
functions of accounting, generating accounting reports, and using accounting reports. For example, a
controller in an organization must oversee a staff of accountants who record all accounting transactions,
do the monthly closing of the accounting records, and generate the reports needed by management and
external users. The accounting information system is the mechanism that allows the accounting staff to
accomplish those functions. Accountants must therefore understand AIS concepts in order to perform
these accounting jobs.

DESIGN OR IMPLEMENTATION TEAM

Accountants are usually part of a multiple-discipline team that designs and/or implements accounting
information systems. When an organization considers a change to its AIS, accountants must be involved
in decisions related to such matters as evaluating which software to purchase, ...

Wi
rom cost centre to business leader
There was a time when the IT department was largely viewed as a cost centre, a necessary
function that performed a valuable role but wasn’t regarded as being central to the business in
terms of revenue growth or strategic direction.

Traditionally, it was the department of people who were called upon to solve their tech-related
questions and deal with administrative issues.

Fast forward to 2017 and things have changed significantly. IT teams are now crucial to any
business’s future ambitions and have a vital role to play in not only enabling innovation, but
shaping strategic direction.
Indeed, a massive 97% of respondents to a digital transformation survey carried out
by Brocade acknowledged that IT departments are important to enabling the organisation to
grow and innovate.

>See also: Business metamorphosis: digital transformation of the enterprise

The department is now widely represented at boardroom level and IT teams are often being
tasked to lead and inform business strategy. They understand the strategic value of IT related to
the industry they are in and are working side-by-side with management to meet business
demands.

The simple reason for this is that technology has changed the way businesses work. Most
employees now use multiple devices daily, internal business processes are largely controlled
through IT applications and customers expect to be able to communicate with organisations
through several digital channels, simultaneously.

The common thread through all of this is IT. From network expansion and data management to
cyber security and application development, modern IT departments have a hand in virtually all
the essential cogs that keep organisations up and running.

Growing in influence
In today’s new world of business, IT is well and truly leading the charge and recent research
from Spiceworks has highlighted the increased level of influence IT professionals are enjoying
across organisations.

The study revealed that IT decision makers (ITDMs) have more influence on major
infrastructure purchases than business decision-makers, with 80% evaluating and
recommending technology solutions compared to 40% of business decision makers (BDMs).

>See also: Digital transformation: business first, technology second

They are also a more trusted source for strategic insight. When it comes to purchasing
decisions, BDMs in EMEA rely more on insights from ITDMs (66%) than from their business
peers (44%).

Ultimately, IT decision makers have more purchase influence than business decision makers for
nearly all technologies, a clear indicator of their growing presence and the vital role they now
play in shaping strategic direction.

Infrastructure and innovation

Given that businesses must now be digital to thrive and survive in today’s landscape, the
importance of having access to a robust IT infrastructure cannot be underestimated.

Organisations are relying on their IT departments to be able to develop – or partner

appropriately to deliver – an infrastructure that enables them to leverage the capabilities of
technologies such as cloud computing (be that public or private), virtualisation and the Internet
of Things, all of which have quickly become essential for business success.
 The growth of ‘Big Software’ provides a perfect example of the demands being placed on
modern infrastructure. Businesses today are relying on the likes of machine learning, big data
and OpenStack architectures to stay ahead of the competition and the level of configuration
required is unprecedented combined with the need to innovate rapidly and at scale, efficiently
managing an infrastructure that enables this is essential.

>See also: Is technology killing your business? 3 common problems to look out for

The amalgamation of these trends has prompted a shift in focus for IT teams. The emphasis is
now less geared towards just keeping the lights on and more towards building infrastructure that
enables innovation, whereas the past IT departments would spend their time thinking about how
IT works, they are now more concerned with how IT can support the business to solve specific
business problems and meet customer requirements.

Essentially, the distinction between business and IT is becoming ever-more irrelevant. IT is now
the businesses in the same way that the business is now IT.

Culture clash?
A culture of IT empowerment has been successfully created in many organisations, but there
are still issues that can hinder this transition, especially in large enterprises that don’t have the
luxury of starting from a clean slate.

>See also: Beyond technology: why every CIO needs to think like a business leader

IT professionals now need and deserve a seat at the boardroom table to help build the strategy
that will shape their organisation’s future. Equally, IT departments need to be able to justify their
growing role and be confident to lead the business forward when it comes to the likes of
efficiency and automation.

According to the IDG, IT decision makers now collaborate with an average of 5.8 different
functions across the business and enabling this collaboration is essential if today’s technological
opportunities are to be realised.

Constant innovation is undoubtedly the order of the day. Is your IT team in a position to make
that happen?

Sourced by Jason Bobb, senior vice president of global sales and business
development, Canonical

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mmunication Between Employees, Suppliers and Customers

For many companies, email is the principal means of communication between employees, suppliers and

customers. Email was one of the early drivers of the Internet, providing a simple and inexpensive means to

communicate. Over the years, a number of other communications tools have also evolved, allowing staff to

communicate using live chat systems, online meeting tools and video-conferencing systems. Voice over

internet protocol (VOIP) telephones and smart-phones offer even more high-tech ways for employees to

communicate.
Inventory Management Systems

When it comes to managing inventory, organizations need to maintain enough stock to meet demand without

investing in more than they require. Inventory management systems track the quantity of each item a company

maintains, triggering an order of additional stock when the quantities fall below a pre-determined amount.

These systems are best used when the inventory management system is connected to the point-of-sale (POS)

system. The POS system ensures that each time an item is sold, one of that item is removed from the inventory

count, creating a closed information loop between all departments.

Data Management Systems

The days of large file rooms, rows of filing cabinets and the mailing of documents is fading fast. Today, most

companies store digital versions of documents on servers and storage devices. These documents become

instantly available to everyone in the company, regardless of their geographical location. Companies are able

to store and maintain a tremendous amount of historical data economically, and employees benefit from

immediate access to the documents they need.

Management Information Systems

Storing data is only a benefit if that data can be used effectively. Progressive companies use that data as part

of their strategic planning process as well as the tactical execution of that strategy. Management Information

Systems (MIS) enable companies to track sales data, expenses and productivity levels. The information can be

used to track profitability over time, maximize return on investment and identify areas of improvement.

Managers can track sales on a daily basis, allowing them to immediately react to lower-than-expected numbers

by boosting employee productivity or reducing the cost of an item.

Customer Relationship Management

Companies are using IT to improve the way they design and manage customer relationships. Customer

Relationship Management (CRM) systems capture every interaction a company has with a customer, so that a

more enriching experience is possible. If a customer calls a call center with an issue, the customer support

representative will be able to see what the customer has purchased, view shipping information, call up the

training manual for that item and effectively respond to the issue.

The entire interaction is stored in the CRM system, ready to be recalled if the customer calls again. The

customer has a better, more focused

. Information system is very essential for running and managing a business today. Information
technology is helpful in managing important production data and based on the data it helps the
production, management, and owners of the company to better run their business and earn
maximum profits. The six reasons are operational excellence; business models;
customer/supplier intimacy; improved decision-making; competitive advantage, and day-to-day
survival.

What exactly is an information system? How does it work? What are its people,
organization, and technology components?

A. Information system is a way to collect, store and share data related to your business. This can
be related to financial planning, purchasing, manufacturing, and finally sale. With the help of
various programs such as SAP (System, Application, Products). The SAP system allows different
areas of business to view and share pertaining information that is stored in one centralized
location using its various components, such as material management-primarily used by
warehouse functions related to purchasing, finance-primarily used by the finance department
etc. From my readings, I have learned that the people component relates to solving issues such
as training, management behavior, and job attitudes. I have also learned that the organization
component relates to the specialty of functions that individuals perform business procedures,
business culture, and the organizations hierarchy. Technology component relates to the
company’s computer system, data management, telecommunicating, internet, and intranet.
Information system literacy helps employees store data and information that relates to their job
performance. Computer literacy is important to understand the various programs that are used
in the information system. Internet is a service that helps stay connected with the world, your
customers, and your stockholders. With a World Wide Web address, which is generally
accessible via the internet, you can sell products that your company produces, with only one
centralized warehousing facility, eliminating multiple warehousing costs.

How will information systems affect business careers and what information system skills
and knowledge are essential?

A. The role of information systems is very important for careers in accounting, finance,
marketing management, and operations management. An information system helps each career
in different ways to achieve one common company goal, which is to be profitable. New
technologies in the information systems are helping businesses be more productive, cut
operating costs, manage efficiently, and earn maximum profit. However, countries like, India,
Japan, and China who have developed their information systems and have a large highly
qualified work force that is much cheaper in labor costs are causing local businesses to
outsource some part of their business and its functions to those countries.

How do information systems support the major business functions: sales and marketing,
manufacturing and production, finance and accounting, and human resources?
A. Sales and marking systems are helpful in indentifying customer base for your products that
your company sales. The data related to demand helps market appropriate products to their
respective markets. This helps achieving maximum sales and profit from the sales.
Manufacturing and production system deals with planning, development, and production part
of the product your company manufactures. This system also helps plan and maintain the flow
of production to avoid over or under production to meet consumer demands on a consistent
basis. Finance and accounting systems help keep track of funds and the use of funds related to
manufacturing and sale of products produced. It also helps track the profits and losses. Human
resource system helps maintaining employee personal and professional records, track their skill
levels, job performance, and any required training to keep your staff up to date with the latest
technology. This system is also used to employee compensation and their career development.

How do systems serve the various levels of management in a business and how are these
systems related?

A. Operational management level uses the system for transaction processing system (TPS), for
example, payroll, and order processing. Middle management uses the decision-support systems,
this helps take decisions related to production, workforce etc. These are not a very complex or
analytical. However, executive support systems are very analytical. They are generally in the
forms of graphs and charts that are delivered by presentations to senior management to make
executive level decisions.

How do enterprise applications, collaboration and communication systems, and intranets

improve organizational performance?

A. There are multiple applications in the enterprise. I am going to define each of them
individually. Enterprise applications are a group of functions tied into one software system to
help improve synchronizing, efficiency, and decision-making. These applications are designed to
coordinate multiple functions that are used in a business. Supply chain management system is
helpful for material management, resource planning, manufacturing, and delivering final
products and services to the sales channel or in some cases directly to the customers. Customer
relationship management is a part of information system, and is used to plan and communicate
business processes to its customers to help obtain maximum revenue and customer satisfaction.
Collaboration and communications systems are a part of knowledge management system. They
help enable companies to optimize their product creation, sharing, and distribution of product
knowledge. Intranet is a part of web page that is only available for internal company use. The
company can also have an Internet site, which is available to access for anyone with World Wide
Web access. Often times companies that sale their products directly to the consumers, use
Internet as a major part of their sales system. Companies also have Extranets that are available
for use to the companies vendors for the access related to material management, ordering raw
material etc.

What is a role of the information systems function in a business?

A. Information systems function in a business is usually the technology department in a
business. This department is also known as Information Technology (IT). These groups of
professionals are responsible for maintaining the hardware, software, data storage, network that
the company uses for its infrastructure.