Tabitha_Saalfrank_Unit1HW.docx - Tabitha Saalfrank 15 September 2019 Chapter 1 Questions Case 1.1 Discussion Question 1.4 How do an organization’s

Tabitha_Saalfrank_Unit1HW.docx - Tabitha Saalfrank 15...

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Tabitha Saalfrank 15 September 2019 Chapter 1 Questions/ Case 1.1 Discussion Question 1.4 : How do an organization’s business processes, and lines of business affect the design of its AIS? Give several examples of how differences among organizations are reflected in their AIS. The organization’s AIS should reflect their line of business and their business processes. There are several ways that an organization’s differences are reflected in their AIS. For example: Financial institutions, such as banks, would not need extensive inventory accounts, because their business process is not designed around reselling merchandise. Manufacturing companies require more documents about procedures and regulations for production while others do not. Transportation services would not need much of an accounts receivable basis, because they receive their payments ahead of time; instead they would need more focus on revenue for services not yet rendered, or more prepaid accounts. Serviced based companies, like cleaning services, will need more raw materials and inventory for their business specifically, but not for resale. Their focus will be more on accounts receivable and collecting and sending invoices. Discussion Question 1.6 : Figure 1-4 shows that developments in IT affect both an organization’s strategy and the design of its AIS. How can a company determine whether it is spending too much, too little, or just enough on IT? A company can determine its value of expenditure for IT by collected as much data as possible. They can study sales trends and marketing expenditures, or ways to reduce costs. If the study prevails that the spending toward IT is in fact beneficial, then they are spending just enough. If there are things they could eliminate from the program, that shows they are spending too much.
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