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Habib Ullah Qamar
Govt. college of Commerce Gujranwala
1/18/2016
 Information levels
 Information Flow
 Stakeholders
 Information is a vital asset of an organization.
1/18/2016
 What is System
 Elements of system
 Characteristics of a System
 An Artificial System’s Example
 Information System Framework
1/18/2016
 A System is a set of
two or more
interrelated and
dependent
components that
interact to each other
to achieve a goal.
These components
may be referred as a
subsystem that
performs a specific
function important to
and supportive part of
the larger system.
1/18/2016
 Multiple Components : A system must
consists of more than one components or
subsystems.
 Relatedness: All these components must be
related to each other to serve a common
objective.
 System vs Subsystem : There must be clear
distinction between system and subsystem.
For us the terms are interchangeable, A
system may be called subsystem when it will
be viewed as the part of some larger system.
1/18/2016
1/18/2016
 Decomposition is the process of dividing the
system into smaller subsystem parts.
 convenient way of representing, viewing, and
understanding
 the relationships among subsystems.
 By decomposing a system, we can present the
overall system as a hierarchy and view the
relationships between subordinate and
higher-level subsystems.
 Each subordinate subsystem performs one or
more specific functions .
1/18/2016
 effective functioning and harmonious
interaction of its subsystems
 Vital subsystem fails results in the overall
system will failure. (PUMP System)
 Non Vital subsystem failure don’t result in the
failure of overall system. (Radio)
1/18/2016
 The information system is the set of formal
procedures by which data are collected,
processed into information, and distributed
to users. or
 A combination of hardware, software,
infrastructure and trained personnel
organized to facilitate planning, control,
coordination, and decision making in an
organization.
1/18/2016
1/18/2016
 In Previous Figure we saw two broad
categories of information systems to emerge
into An Information System.
 AIS and MIS
 This framework could be used to define the
position, domain and distinction of AIS from
MIS
1/18/2016
 In most organizations MIS and AIS might be
integrated to perform operations.
 An IS centers on Transactions.
 A transaction as an event that affects or is of
interest to the organization and is processed
by its information system as a unit of work
 There are two types of Transactions
 Financial and non-financial
1/18/2016
1/18/2016
 A financial
transaction is an
economic event that
affects the assets and
equities of the
organization, is
reflected in its
accounts, and is
measured in
monetary terms.
 It must be recorded
correctly
 Nonfinancial
transactions are
events that do not
involve any economic
value. For example,
adding a new
supplier of raw
materials to the list
of valid suppliers.
 It has no legal
obligation to process
it correctly.
1/18/2016
 We start with review of Information
 We define system and its characteristics
 We discussed a framework for an IS
 AIS and MIS are identified on the basis of
Transactions.
1/18/2016
See you again in sha ALLAH
1/18/2016

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Lecture 3 the information system by an accountant's prospective-2 ais an overview

  • 1. Habib Ullah Qamar Govt. college of Commerce Gujranwala 1/18/2016
  • 2.  Information levels  Information Flow  Stakeholders  Information is a vital asset of an organization. 1/18/2016
  • 3.  What is System  Elements of system  Characteristics of a System  An Artificial System’s Example  Information System Framework 1/18/2016
  • 4.  A System is a set of two or more interrelated and dependent components that interact to each other to achieve a goal. These components may be referred as a subsystem that performs a specific function important to and supportive part of the larger system. 1/18/2016
  • 5.  Multiple Components : A system must consists of more than one components or subsystems.  Relatedness: All these components must be related to each other to serve a common objective.  System vs Subsystem : There must be clear distinction between system and subsystem. For us the terms are interchangeable, A system may be called subsystem when it will be viewed as the part of some larger system. 1/18/2016
  • 7.  Decomposition is the process of dividing the system into smaller subsystem parts.  convenient way of representing, viewing, and understanding  the relationships among subsystems.  By decomposing a system, we can present the overall system as a hierarchy and view the relationships between subordinate and higher-level subsystems.  Each subordinate subsystem performs one or more specific functions . 1/18/2016
  • 8.  effective functioning and harmonious interaction of its subsystems  Vital subsystem fails results in the overall system will failure. (PUMP System)  Non Vital subsystem failure don’t result in the failure of overall system. (Radio) 1/18/2016
  • 9.  The information system is the set of formal procedures by which data are collected, processed into information, and distributed to users. or  A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. 1/18/2016
  • 11.  In Previous Figure we saw two broad categories of information systems to emerge into An Information System.  AIS and MIS  This framework could be used to define the position, domain and distinction of AIS from MIS 1/18/2016
  • 12.  In most organizations MIS and AIS might be integrated to perform operations.  An IS centers on Transactions.  A transaction as an event that affects or is of interest to the organization and is processed by its information system as a unit of work  There are two types of Transactions  Financial and non-financial 1/18/2016
  • 14.  A financial transaction is an economic event that affects the assets and equities of the organization, is reflected in its accounts, and is measured in monetary terms.  It must be recorded correctly  Nonfinancial transactions are events that do not involve any economic value. For example, adding a new supplier of raw materials to the list of valid suppliers.  It has no legal obligation to process it correctly. 1/18/2016
  • 15.  We start with review of Information  We define system and its characteristics  We discussed a framework for an IS  AIS and MIS are identified on the basis of Transactions. 1/18/2016
  • 16. See you again in sha ALLAH 1/18/2016