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ch01 - Chapter 1 Business Processes Data Modeling and...

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Chapter 1 Business Processes, Data Modeling and Information Systems
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Learning Objectives Identify entities and relationships in a business process Identify resources, events and agents (REA) in a business process Evaluate and determine the cardinalities Model a company’s business processes using an REA diagram
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Legacy versus Modern AIS Legacy accounting information systems Flat files with disconnected subsystems Modern accounting information systems Use database approach that emphasizes the integration and sharing of data across major functional areas Designed based on a company’s business processes Event-driven based upon business processes
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What is Data Modeling? The process of creating a logical representation of the structure of a database based on a company’s business processes The most important task in the development of an effective database is to provide useful information
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Entity-Relationship Diagram Entity-Relationship Diagram (ERD) is a commonly used business data modeling technique. The ERD uses a graphical representation to identify and document various entities and the relationships between those entities. Three major components of an ERD are the entity, the relationship, and the attribute.
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ERD An entity is anything about which a company would like to collect and store information. Example: inventory, purchase, vendor, etc. It is represented using a rectangle. A relationship is an association between entities. Example: one-to-one, one-to-many It is represented using a diamond. An attribute is a characteristic of an entity, such as the inventory number and the description of each item in the entity of “inventory.”
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Resource-Event-Agent (REA) Diagram REA diagram is a framework specifically designed for building accounting information systems in a shared data environment based on the ERD technique. Components in an REA diagram: Resources: Things that have economic value to a company, such as cash and inventory.
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