2. Accounting Information Systems (AIS)
An accounting information system is a system that combines traditional accounting
practices such as the Generally Accepted Accounting Principles (GAAP) with
modern information technology resources. Six elements compose the typical
accounting information system:
People - the system users.
Procedure and Instructions - methods for retrieving and processing data.
Data - information pertinent to the organization's business practices.
Software - computer programs used to process data.
Information Technology Infrastructure - hardware used to operate the
system.
Internal Controls - security measures to protect sensitive data.
Characteristics of AIS:
Timely
Flexible
Accurate
Reliable
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3. Complete
Verifiable
Economical
Accessible
Relevant
Secure
Simple
Inputs:
Input can be in the form of Sales order (record purchase requests from customers),
purchase data (data about purchases initiated with our vendors), Receiving data
(data about arriving goods), shipping data (data about goods sent to customers),
invoices (received from vendors). This data is obtained at the time when a
transaction is made. This data may also be in the form of the adjustments to those
transactions.
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4. Processes:
Checks that the data shown in the transaction is valid or not then it starts to sort the
data into various categories and sub-accounts and it then manipulates data.
Outputs:
Output is like the Invoice (sent to customer), Checks (sent to vendor), Profits and
Loss report, Accounts receivable report. These reports are prepared for the
customers, creditors, debtors, stakeholders. These reports are then issued to the
relevant party or customers for the sake of their interest.
Control:
Accounting information system makes it easier for us to establish internal controls.
These controls include various inventory decisions resulting from sales data. A
good accounting information system helps the organization to detect fraud, theft
and other mismanagement. It also assists in the management of various reports plus
maintaining the relations with the customers.
Feedback:
In this stage, stakeholders like customers, creditors, shareholders provide their final
opinion about the system. They also suggest some remedies necessary to be taken
in the improvement of the system.
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5. Marketing Information System (MKIS)
The concept of Marketing Information Systems has been around for many years.
Early systems were paper-based systems but, with the emergence of computers
with large storage capacities and later microcomputers with similar features,
marketing information systems have become more "electronic" in nature. MIS
(marketing information systems) can be classified under five headings:
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6. Planning systems- which provide information on sales, costs and competitive
activity, together with any kind of information which is needed to formulate plans.
Control systems - these provide continuous monitoring of marketing activities and
enable marketing executives to identify problems and opportunities in the
marketplace. At the same time, they permit a more detailed and comprehensive
review of performance against plans.
Marketing research systems - such systems allow executives to test decision
rules and cause/effect hypotheses. This permits the assessment of the effects of
marketing actions and encourages improved learning from experience.
Monitoring systems - these systems provide management with information
concerning the external environment in which they are operating.
A Marketing Information System is a “system in which marketing data is
formally gathered, stored, analyzed and distributed to managers in accordance with
their informational needs on a regular basis."
When designing a marketing information system a number of important questions
need to be answered in the first place. These are:
Exactly how much information will be entered in the database?
What information will be entered into the database?
How will it be entered into the database?
How will it be manipulated once it is in the database?
To whom will reports be sent?
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7. Inputs:
Input in the marketing information system is in the form of specifications as in the
research conducted by the organizations. It may be like the records maintained of
their usual customers.
Processing:
In this phase, data is processed by using some specific software. This work is done
in order to get the outputs.
Storage:
The results are then manipulated through the software are saved on a source: CD,
DVD, USB and HARD DISK.
Feedback:
This phase includes the response obtained from the community or area where
research is made.
For example: Unilever firstly launched SURF EXCEL as SURF but its quality and
result was very poor as compared with the ARIEL. Sooner it vanished from the
market. After that Unilever sent a research team for research in the market to check
the trends of people. They checked and then Unilever sent a team in a society with
1000 packets of SURF prepared with new formula. They got a good response from
the public. After that research, Unilever launched SURF as SURF EXCEL. This
innovated product gave a tough time to the ARIEL.
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8. Sales Information System (SIS)
The Sales Information System is a flexible tool which allows you to collect,
consolidates, and utilizes data from Sales and Distribution processing. From the
mass of data which exists in the S&D System, you can filter out only the most
important through consolidation. In this way, you get compact, useful information
which meets your particular information needs. It is for you to determine the depth
of information you receive.
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9. The various levels of this information enable you to recognize market
developments and economic trends early on and to take the appropriate action.
It is not only possible to collect and consolidate actual data from Sales and
Distribution processing, you can also create your own planning data. Comparing
actual data and planning data can assist you considerably in your decision making.
Input: Sales information system has various information’s like the customers
demographic profile, the customer’s geographic profile, personal information’s,
contact number and many other things as Input.
Processing:Sales Information System captures order data from customer service
employees or from customers directly, stores the data in a central database and
sends order information to the accounting and shipping departments, if applicable.
Sales Information System provides tracking data on orders and inventory for every
step of the way.
Output:Mostly Sales Information System provide following outputs:
Computerized Billing
Sales Invoice
Daily, Weekly and monthly Sales Report
Sales History
Stock level
Storage:The Sales Information System stores the whole data and also creates its
back up in case of data lost. It maintains record of stock in and number of unit
remaining in stock. It also records the number of unit sales and their selling price.
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10. Controlling:Sales Information System provides the feature of password protection
to protect the data from everybody access. It gives the option to check the stock
level at any time. It gives warning when there a shortage of stock.
Human Resource Information System
(HRIS)
A human resource management system (HRMS) or human resource information
system (HRIS) refers to the systems and processes at the intersection
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11. between human resource management (HRM) and information technology. It
merges HRM as a discipline and in particular its basic HR activities and processes
with the information technology field, whereas the programming of data
processing systems evolved into standardized routines and packages of enterprise
resource planning (ERP) software. On the whole, these ERP systems have their
origin on software that integrates information from different applications into one
universal database. The linkage of its financial and human resource modules
through one database is the most important distinction to the individually and
proprietary developed predecessors, which makes this software application both
rigid and flexible.
Input:
It contains personal and organization-related information, such as name, address,
sex, minority status, marital status, citizenship, years of service or seniority data,
education and training, previous experience, employment history within the
organization, salary rate, salary or wage grade, and retirement and health plan
choices.
Processing:
Processing is based on number of hours worked by an employee. It is used to
compute the payroll of an employee according to his working hours. It is generally
used to compute employee’s bonuses, commissions and payrolls.
Output:
HRIS having following outputs:
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12. Payroll
Time and attendance
Appraisal performance
Benefits administration
HR management information system
Recruiting/Learning management
Performance record
Storage:
It makes job easier. HRIS departments and tech think tanks are running out of time
and space as they scramble for methods in handling large unorganized files and
hosting platforms that require large and complicated applications.
Feedback:
At every step of an audit, you have to consider risks and their associated controls.
Generally, you look at three inherent human resources risk factors: the supply and
demand of competent employees, existing labor contracts, and regulatory
compliance.
In addition, a huge human resources risk involves payroll controls — or lack of
them. If a company is paying people who don’t actually provide work during the
pay period, a serious issue exists. Your audit must confirm that your client has firm
controls in place to prevent such problems.
Library Information System (LIS)
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13. An integrated library system (LIS), also known as a library management
system (LMS) or as library automation is an enterprise resource planning system
for a library, used to track items owned, orders made, bills paid, and patrons who
have borrowed.
An ILS usually comprises a relational database, software to interact with that
database, and two graphical user interfaces (one for patrons, one for staff). Most
LIS separate software functions into discrete programs called modules, each of
them integrated with a unified interface. Examples of modules might include:
Acquisitions (ordering, receiving, and invoicing materials)
Cataloging (classifying and indexing materials)
Circulation (lending materials to patrons and receiving them back)
Serials (tracking magazine and newspaper holdings)
OPAC (public interface for users)
Inputs:
In this stage, all the new arrivals are recorded in the system. Also is contains the
records of the books issued and in some libraries there exists a record of the digtal
books.
Process:
During processing, I/S processes the data provided and summarizes it accordingly.
Output:
The output may be in any form and we can access it any time.
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14. Storage:
This phase involves the process of storing the work done by the system on the
input. This result or output is then stored on any suitable storage media.
Control:
Control of the LIS is to get required information about any topic or any book. It
also provides some other information.
Feedback:
Feedback is the stage where readers and visitors suggest their feelings and tell their
experience regarding LIS and then the organization can easily improve its LIS.
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15. Research & Development Information
System
The R&D Information System is an information system of the public
administration for a collection, processing, publication and utilization of
information about the research and development, which has been supported by
public budgets.
The aim, content, rights, responsibilities and the way how the data have been given
into the R&D Information System, the integration of the data into the Information
System database, the processing of the data and the way of data publication are
determined by the R&D Act together with the regulation of the Czech government
about the R&D Information System, by some other rules and by the Standard
operating procedure manual of the R&D Information System.
Input:
New ideas for developing a product are the inputs for R&D Information System.
Ideas for new products can be obtained from basic research using a SWOT analysis
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16. (Strengths, Weaknesses, and Opportunities& Threats). Market and consumer
trends, company's R&D department, competitors, focus groups, employees,
salespeople, corporate spies, trade shows, or ethnographic discovery methods
(searching for user patterns and habits) may also be used to get an insight into new
product lines or product features.
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17. Processing:
Lots of ideas are generated about the new product after searching. During process,
we screen the ideas. The object is to eliminate unsound concepts prior to devoting
resources to them. Screening depend upon the different aspects like customers of
products, market for product, expected competitors, profitability of product etc.
Output:
R&D Information System provides information about developing a new product,
its advantages and disadvantages on the basis of statically analysis performed upon
the data received from research. It helps the managers to decide rather it is suitable
to develop a new product or not.
Storage:
R&D Information System saves the data collected from research for further use.
This information may be used as secondary data for some other purpose.
Controlling:
R&D Information System also provides help during the development of product.
The information collected may help for decisions like the product size, color,
shape, wait etc.
Feedback:
After the launching of product or providing the free samples to important
customers, organization take reviews from users about the product and analysis
their performance.
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18. Purchase Information System (PIS)
The Purchase information system allows users to search the purchasing system
database for purchase order, requisition, vendor, and commodity code information,
including requisition tracking information.
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19. Purchasing systems are ways for companies to efficiently purchase goods and
services at optimum terms and the best prices. Many companies use computerized
purchasing systems and even the smallest company can find a software program
that will manage the more common elements that are found in the more complex
purchasing systems.
Input:
Purchase information system has inputs like the Suppliers demographic profile and
their contact number, purchase level, format of purchase requisition.
Processing:
Purchase information system keep check the level of stock and give the message to
purchase the goods when repurchase point come. It also tells us about the
economic order quantity that must be purchased to save maximum money. It
creates the purchase requisition and in some companies send it self.
Output:
You would expect the most basic purchasing systems to have the following
outputs:
Automatic generation of purchase orders
Automatic ordering of the standard orders
Managing order requisitions
Maintenance of supplier catalogues allowing the company to "pick"
products as they need them
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20. The ability to order electronically, thus allowing for paperless
ordering
Forecasting future spending which helps with budgeting.
Storage:
The Purchase Information System stores the whole data regarding the purchase and
stock and also creates its back up. It maintains record of stock available. It also
records the number of unit issued from store.
Controlling:
Providing management the information of purchase and the quantity of goods used.
Also give them information about the available suppliers their prices and the
delivery time. It helps the managers to make comparison of available purchasing
options their pro and cons and make a suitable decision for organization.
Feedback:
As an organization seeks to improve its performance, feedback helps it to make
required adjustments. In Purchase Information System, the manufacturing
department and any other department give reviews about the product purchased
and on the behalf of these reviews the organization shortlist the better suppliers.
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