Chapter Three Review

Chapter Three Review - Chapter Three Electronic Business...

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Chapter Three Electronic Business (E-Business) Systems Value chain (or supply chain) enterprise systems Value Chain – a chain of activities performed by the organization to transform inputs into outputs valued by the customer Organizations are using enterprise systems to capture business event data at the e- business connection with a customer or supplier – enterprise systems and flexible processes are fundamental to providing traditional companies with the capability to implement new streamlined processes and new services for their customers Amazon’s business processes are dependent on technology to provide efficient processing and the analysis of information to support product sales, product delivery, and replacement product acquisitions – virtually all of the company’s value chain Business Process Differences between Manual and Automated AIS Manual AIS 1. Journalize the business even in a book of original entry 2. Post the business event from the journal to a subsidiary ledger 3. Post the total from the journal to the general ledger 4. Summarize the business event by preparing a trial balance Automated AIS – makes the automated processes roughly equivalent to the manual process – when an AIS is computerized, we can change how the data are processed, but we do not change what tasks are performed 1. Record the invoice (input) – includes capturing data which is usually automatically updated and stored in a business event data store 2. Update AR master data (processing) – can be performed for each invoice or for a batch of invoices 3. Update GL master data (processing – update of storage) – also can be performed for an individual invoice or for a batch of invoices 4. Prepare trial balance – (process – of preparing output) – process retrieves general ledger master data from storage and prints the trial balance Figure 3.3 – Batch Processing of Accounting Data (4 sub-processes) 1. Business event occurs – information for the event is recorded on a source document 2. Record business event data – a batch of source document is transferred to a data entry operator who takes the information from the source documents and enters the data in a computerized format – resulting computerized format becomes the sales even data store 3. Update master data – the sales event data store is brought to the computer to be processed and any calculations and summarizations completed – this is used to update the
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Chapter Three Review - Chapter Three Electronic Business...

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