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Summary of all lectures of the course Information Systems & Data Analytics
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Summary of all lectures of the course Information Systems & Data Analytics
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Information systems & Data analytics (ISDA)Topic 1: Introduction to ISDA
Introduction
Definitions
- Accounting system: booklet used to write down all your business activities to keep track of
the flows of candy and money
- Controls: process aimed at safeguarding your candies and cash, recording reliable
information in booklet, and compliance with laws and regulation (bv tax laws)
- Double entry bookkeeping: basis of any internal control system
- Intermediaries: platforms that does not have physical products but are just intermediaries
between people that applies products and people that want to sell products (bv marktplaats,
booking.com, Airbnb, vinted) → this type of firms growing and IT in this type very important
- Enterprise Resource Planning system (ERP system): a system tat tracks every transaction
(flow of goods or money) that is going on in a company (bv SAP, exact, 4ps)
- Gartner’s hype cycle: graphical presentation of common pattern that arises with each new
technology or innovation (bv accounting: hype cycle for procurement and sourcing solutions)
Information disciplines
- Object of study: information is the object of study for all disciplines regarding AIS
- Approach: behavioral and mechanistic
- Perspective: demand for information (info users) and supply of information (info providers)
- Disciplines
o Information management
▪ Focal point: information and communication technology
▪ Supply: way in which info systems can provide needed info
▪ Behavioral and mechanistic: system development processes contain both
behavioral and technological components
o Management accounting and control, auditing, financial accounting
▪ Focal point: accounting and auditing
▪ Demand: way in which info is used for decision making
▪ Behavioral and mechanistic: accounting and auditing processes contain both
behavioral (influencing behavior through incentives) and technological
components (calculations)
o Accounting information systems (AIS)
▪ Focal point: control
▪ Demand and supply: info systems bridge the gap between 1 and 2
▪ Mechanistic: designing procedures, programmed controls, segregation
o Information systems & data analytics (ISDA)
▪ Demand and supply: data analytics spans entire spectrum demand supply
▪ Behavioral and mechanistic: data analytics in the middle of behavioral and
mechanistic
,Information systems
Systems
- System: organized collection of connected components that form a more complex whole,
aimed at attaining certain goals
- Information system: organized collection of hardware and software for inputting, processing,
and storing data, and providing information, aimed at attaining organizational goals
- Accounting information system: organized collection of hardware and software for inputting,
processing, and storing data, aimed at providing information to internal and external
stakeholders
Why information
- Operating the business: information needed for the business to function
- Delegation: manager delegate task to employee (vertical downwards stream of information)
- Accountability: employee is accountable for his task (vertical upwards stream of information)
- Decision-making
Information vs data
- Information: all the processed data that is understandable and usable for the user
- Data: representation of reality that does not have a meaning until it is processed
o Transaction data: temporary data that eventually will lead to changes in master data
(bv journal entries, purchase order, payment of debtor, payment to creditor)
o Master data: repositories (opslagplaatsen) of permanent data maintained over an
extended period of time (bv ledger, inventory file, acc rec file, acc pay file)
▪ Standing: name, address, debtor code
▪ Frequently changing: acc rec, acc pay
Information-based control framework
- Business domain: the object of information provision, what a company does to create value
- Information & communication domain: modelling the information before it is provided to the
business domain, recording information of what is happening in the business domain
- Data domain: modelling (collecting, recording, processing) the data that is needed for
information provision
- Information & communication technology domain (IT domain): modelling the required IT
applications and hardware, collecting the media (software and hardware) that influences the
efficiency of the data domain
,- Strategy formation: formulating a strategy so that the organization outperforms its
competitors (external environment). The deliberate choice by an organization’s
management..
o Business strategy: regarding the way the organization should gain CA
o Information strategy: between exploiting or reducing the differences in the
availability and quality of information
o Data strategy: between exploiting or reducing the differences in the availability and
quality of data
o IT strategy: between exploiting or reducing the differences in the availability and
quality of IT
- Strategy implementation: providing tools (accounting systems and related controls) so that
strategies can be implemented (internal environment)
o Operations: all the operational business activities that realizes the organization’s goal
o Information provision: content of the provided information
o Data engineering: recorded data used to provide that information
o IT infrastructure: hard and software used to record data and provide information
- Strategy formation
o Strategic control: process designed to formulate right strategy given circumstances
- Strategy implementation
o MAC course
▪ Management control: management activities designed to having employee
behavior in line with organization’s objectives
o ISDA course
▪ Internal control: the process designed to provide reasonable assurance
regarding the achievement of objectives
▪ Information control: internal control aimed at the information provision
▪ Data control: internal control aimed at the data engineering
▪ IT control: internal control aimed at the IT infrastructure
, Quality of operations
- Effectiveness and efficiency of internal processes (leading indicator)
- Innovative power (leading indicator)
- Customer satisfaction (leading indicator)
- Financial performance (lagging indicator)
Quality of information
- Effectiveness
o Reliability: information is in accordance with reality
▪ Validity: only existing events and positions are recorded
▪ Accuracy: no mathematical, transcription, conversion errors
▪ Completeness: every event and position is recorded
o Relevance: information fulfills its “why information” criterium
▪ Precision: degree of details
▪ Timeliness: timely enough to affect decision-making
▪ Understandability: format useful for user (quantitative, verbal, etc)
- Efficiency: cost-benefit analysis
Quality of data
- Input (of data on business events)
o Validity: data represents only existing events
o Accuracy: no mathematical, transcription, conversion errors
o Completeness: data represents every event
- Update (of master data files)
o Validity: no criteria as invalid data cannot be updated when it is not even inputted
o Accuracy: data on valid business events correctly recorded
o Completeness: data on all valid business events recorded
- Efficiency: cost-benefit analysis
Quality of IT infrastructure
- Technology
o Confidentiality: only authorized persons access to specific parts of IT infrastructure
o Integrity (reliability): recording data and processing information of high reliability
o Availability: information systems must be at the intended user, right place, on time.
- Organization
o Scalability: degree to which the system can be extended at reasonable costs
o Maintainability: degree to which the system can be adjusted at reasonable costs
o Transferability: degree to which the system can be transferred to another
environment (bv windows 7 to windows 10)
- Efficiency: cost-benefit analysis
- Compliance: laws and regulations regarding computer crime, privacy, data breaches etc.
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