Accounting Information System

Chapter 1: Information Technology in a Business Environment

customers. In government
Business and Information agencies, for example, delivering
Technology added value means a government
agency or organization provides
- Many people believe that useful and quality service to citizens
business nowadays could not that is more than the worth of the
resources used for rendering such
survive without the integration
service
and use of information
technology (IT). Business
organizations rely on computers Business Concept
to perform their daily operations.
Multinational corporations, the ● The word "business" is
government, non-government
traditionally defined as the
organizations (NGOs), local
exchange of products.
businesses, and even small
● Business is an enterprise or
businesses such as stores and
shops use computers and IT to activity with the intention to make
support their business activities. profits.
Therefore, in this modern world, it is ● The term business refers to an
essential for a business organization organization or enterprising entity
to integrate IT in their daily business engaged in commercial,
activities. industrial, or professional
- Example: banks have developed activities.
and designed new mobile ● Business also refers to the efforts
banking apps to replace and activities undertaken by
traditional banking. individuals to produce and sell
goods and services for profit.
Business Organization as a System
Objective of Business
- Any type of business
organization, whether - A business may have different
multinational or local and large, goals depending on its financial
medium, or small, can be viewed standing, products, industry, etc.
as a system because it consists However, generally, we can
of various parts that work categorize business objectives in
collaboratively to attain a certain four different ways.
goal. The main goal of many
organizations is to provide added 1. Economic Objectives
value to their clients and 2. Human Objectives
 3. Organic Objectives
4. Social Objectives
Types of Business
● A business may be of different
types, but generally, we can
categorize business into four
widespread types.
Four Categories of Business
1. Manufacturing - the manufacturer
or producer produces one or
more products and then sells
them to the end consumer to
earn profits.
2. Merchandizing - a type of
business in which the
seller/business sells tangible
products to the
customers/consumers.
3. Services - a type of business
where the seller offers intangible
goods to other businesses or
consumers.
4. Hybrid - are those businesses
where an organization practices
two or more business types at the
same time.
Types of Business
● Sole proprietorships - owned and
operated by a single person.
● Partnerships - a business
relationship between two or more
people who together conduct
business.
● Corporations - a business in
which a group of people acts as a
single entity.
● Limited liability companies (LLCs)
- A limited liability company
combines the pass-through
taxation benefits of a partnership
with the limited liability benefits of
a corporation.
● Limited Partnership - defined as
having limited partners and a
general partner, which has
unlimited liability.
● Co-op - a legal business structure
that is owned and governed by,
and functions for, the benefit of
those who use its services.
Cooperatives are owned by those
who work for it, are served by it,
or both.
● Non Profit - a group organized for
purposes other than generating
profit and in which no part of the
organization's income is
distributed to its members,
directors, or officers.
Business Size
● Micro
● Small Business
● Mid-Sized Enterprises
● Large Businesses
Data vs. Information
 ● Data are facts that are collected, ● IT is the study, design
recorded, stored, and processed development, application,
by a system. Insufficient for implementation, support or
decision making. management of Computer-Based
Information System (CBIS),
Data Represented by particularly software application
and computer hardware ( Laudon
Alphanumeric Numbers, letters, and and Laudon, 2009)
Data other characters ● IT is the application of technology
to solve business or
Image Data Graphic images and organizational problems on a
pictures
broad scale.
Audio Data Sound, noise or ● IT compromises a wide range of
tones hardware and software solutions
that support organizations and
Video Data Moving images or
evaluate data that help them
pictures
accomplish their targets.
● It also describes technology
● Information is data that have based workflow processes that
been organized and processed to enhance the proficiency of an
provide meaning and improve organization to provide services
decision- making. that produce profits.
● IT is defined as the study and
➢ Turning data into information is a application of computers,
process, or a set of logically network, and telecommunications
related tasks performed to that store, manipulate, retrieve,
achieve a defined outcome. manage, and send information.
➢ The process of defining ● IT includes a combination of
relationships among data to software and hardware resources
create useful information requires that are used together to perform
knowledge, which is the various functions that people
awareness and understanding of need in their everyday life.
a set of information and the ways
in which that information can be
made useful to support a specific Business in the Information Era
task or reach a decision.
● Most businesses established in
Information Technology and Its the Information Era mostly
Discipline depend on the use of advanced
technologies.
● It is a fact that people currently aspect of any business. It presents
live in the Information Era, both threats and opportunities for a
commonly known as the Digital business. Businesses must be
Age. aware of the ongoing changes and
use these changes as opportunities.
● Information Era is described as
enormous and incredible, where
huge amounts of information can Business that are popular in the
be shared around the world in Digital Age
just one click of a finger.
1. Call Centers
Business Environment in the - A call center agent refers
Information Age to a person who handles
incoming or outgoing
customer calls for a certain
● The Information Age enables
business. He/She might
businesses to compete in a
handle technical support
marketplace that is complex,
issues, customer
global, and customer focused.
Thus, companies must know exactly
complaints, and account
how to react to opportunities and inquiries.
problems that might come up from
this modern business environment, 2. Banking (Online Banking
which is a combination of various and Mobile Banking)
factors (internal and external) that - Online banking is one of
might affect business activities and the many business
influence a company's operations. banking services that
These factors may include clients, banks offer. It is popularly
suppliers, owners, technology, laws,
known as Internet banking.
and economic, social, political, legal,
- On the other hand, mobile
and government activities.
● A business can be easily established
banking allows an account
but difficult to sustain. For a holder to perform many
business to be successful in a online transactions
greater market, it must take the through an app using
challenge and be aware of the mobile phones (smart
various factors of the modern phones) instead of a
business environment. Businesses desktop computer. Mobile
must learn how to adapt easily to the banking requires an
changes in the market as quickly as account holder to register
possible.
on a mobile app. Although
● The business environment is
the features of online
considered the most fundamental
banking and mobile
 banking are relatively the
same, mobile banking
requires a mobile banking
app and SMS notifications.
The Changing Role of IT in
Business
● IT is about telecommunication
networks; all kinds of hardware
such as computers, routers,
memory, cables, servers, and
printers; and all types of software
including both systems and
applications such as operating
systems, productivity tools, office
application tools, data
management tools, and social
and mobile applications.
● IT has replaced the traditional or
conventional methods of
business activities with modern
and innovative technological
tools.
Productivity
- Technological tools and
applications such as computer -
aided design (CAD), office
application tools word
processors, spreadsheets, and
presentation software),
programming software, database
technology, and the like, improve
business productivity.
Monitoring
- IT tools are used for monitoring
purposes in various areas of
business organizations. The main
reason for this is to ensure that
all resources are being utilized
efficiently.
Business Performance
Management
- Developed as monitoring method
that most businesses use to
achieve their goals.
Role of Information Technology in
Other Fields
- Technology is no longer about
luxury; instead, it has become a
necessity. Technology has
become very popular in various
fields such as education,
manufacturing, communication,
and banking. Industries use
technology mainly to improve
their service and increase their
productivity.
Education
● IT plays a vital role in providing
quality education to students.
Nowadays, technology is a staple
part of most classrooms. For
example, in experiential learning
 students use simulates their students with special
learning activities. needs. It provides
● The following are some examples personalized therapy for
of emerging educational students with disorders in
technologies: communication, learning,
language, and others. It
➢ Glogster EDU also allows educators to
- Students can use this tool monitor students' progress
to present their research
creatively. It allows
students to create unique Learning Management System
projects or research
presentations.
- Learning management systems
➢ Mentimeter (LMSs) address this drawback.
- This is a website These systems are powerful
specifically designed to online applications containing
support teaching and designed and developed courses
learning in schools, for students. Course contents can
colleges, and universities. be uploaded anytime in LMSs.
This website increases the Through them, educators can
participation of students in prepare online assessments such
the classroom. It allows as a quizzes, assignments, and
teachers to prepare discussions. LMSs host forums
practice exercise and post announcements to
questions online and ask answer the queries of students
students to answer and cater to their needs.
virtually.

➢ Electronic Learning Organizer Health

- This is a cloud-based
technology that helps
- IT also plays a significant role in
language teachers
the field of medicine. For
produce activities for their
example, a patient record
students in the form of
management system (PRMS),
digital learning objects.
which is designed to record all
transactions made by patients,
➢ Constant Therapy
are common nowadays in
- This is a mobile app-based
hospitals. Medical doctors take
educational technology for
 pictures of patients body parts to
detect illnesses or disorders
using machines like the
computerized axial tomography
(CAT) or magnetic resonance
imaging (MRI).
Information Technology Career
Opportunities
1. Help Desk Technical Jobs -
Technician must be
knowledgeable about computer
system and have good customer
service skills.
2. Technical Support Analyst Jobs-
Technical support analyst are
considered professionals who
assist staff within an organization
and support non- IT computer
users.
3. Business Intelligence Analyst
Jobs- Business intelligence
analyst are computer science
graduate who use computer
software programs to go through
big data and trace specific
information to formulate reports
and create presentations by
considering the company's level
of efficiency and its departments
advancements over a selected
timeline.
Trends in Information Technology
Development
The Adaptability of the Internet of
Things (IoT)
- loT is a system of interconnected
computing devices, mechanical
and digital machines, objects,
animals, or people. It has the
ability to transport data over a
network without requiring
human-to-human or
human-to-computer interaction.
Development of Web Applications
- These are web applications that
are composed of web pages or
websites similar to traditional and
most mobile application, program
that is stored on a remote server
and delivered over the Internet
through a browser interface.
The Brainpower of Artificial
intelligence
- (AI) is the simulation of human
intelligence processes by
machines, particularly computer
systems. These processes
include learning, reasoning, and
self- correction. Specific
applications of Al include expert
systems, speech recognition, and
machine