First of all you need to understand the structure or big picture of this

First of all you need to understand the structure or

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First of all, you need to understand the structure or big picture of this company. Chapter 1 tells you that there are five business cycles in your company: 1. revenue cycle, where we sell inventory or perform services;
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2. expenditure cycle, where we purchase inventory or receive services; 3. production cycle, where we use labor and raw materials to produce finished goods; 4. finance cycle, where we get external funding (typically from issuing stock or corporate bonds) and pay interests or dividends; 5. human resources/payroll cycle, where we pay the employees to get their labor input. Secondly, you need to understand the details of every business process in the company. For example, what are the steps, which employees, and what documents are involved in an expense reimbursement process? This is where Chapter 3 becomes useful. You need to interpret the company policy, which is similar to the narratives in Project 1, and then draw diagrams or flowcharts that we learn from Chapter 3. The diagram or flowchart shows, not surprisingly, a BIG picture. Thirdly, now we need to work on the real information system, which is basically a database, with additional functions. Chapters 2, 4, 17, and 18 come in handy here. You learn the basics of tables, database, and connected tables which is a relational database in Chapters 2 and 4. In Chapters 17 and 18, you learn the scientific method to determine exactly how many tables are needed in a relational database. With these knowledge points in mind, you will be able to create the framework of the information system. You create numerous tables that are needed in the big picture mentioned above. For example, independent tables for: bank accounts, inventory, fixed assets, employees, vendors, accounts receivables, accounts payables, sales, purchases, payrolls, bank loans, receive of inventory, etc. Apply the REA model and link all the tables systematically, and you now are looking at the baby format of the information system now. Fourthly, determine the internal control points and plant the control procedures in the system. Chapters 7, 8, 9, 10, 12, and 13 would be your best reference in this step. Now looking back, this is quite similar to produce a car from scratch. First, you need to know the big picture of a car: what main parts are needed in a car. Engine, transmission, chassis, frame, seats, doors, windows, electrics, and others. Second, what does each part look like, how do they work? Drawing a design of each part is necessary here. Third, how do you integrate all the parts? Draw a 3D design of the entire car. Fourth, what are the potential risks of riding the car? How do we mitigate the risks? Anti-theft mechanics, airbag, ABS, ESP, speed limit warning, radar systems, coolant, etc. Finally, other detail designs by different car manufacturers enrich the cars.
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  • Summer '18
  • PhilipRogers
  • Relational model

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