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Accounting Information Systems 1st Edition by Vernon Richardson,Chengyee Chang ,Rod Smith
Edition 1ISBN: 978-0078025495Accounting Information Systems 1st Edition by Vernon Richardson,Chengyee Chang ,Rod Smith
Edition 1ISBN: 978-0078025495 Exercise 1
Explain the information value chain. How do business events turn into data, then into information, and then into knowledge? Give an example starting with the business event of the purchase of a CD at Best Buy all the way to useful information for the CEO and other decision makers.
Explanation
Verified
Verified
Value chain: The overall implementation from first stage of production to the final stage of service is called Value chain. This implementation provides the data that can become useful information that might be help in making decisions.
The entire transfer of information from business requirement and business event to the maintaining data and information for making decisions is called as information value chain. The information value chain starts with the identification of requirements of business and ends with final decisions taken by management.
Company needs to know how much CD it should have distributed to every retailer (Business requirements) it will collect the information on CD sales (Business event). After that company can analyze the data and turn data into information that helps to make decisions to management.
The information value chain can be shown the purchase of CD at best buy in the following way:
The sale from CD can be recorded as revenue and deducts all costs associated with it and after that remaining revenue will add or (deduct) from corporate income. This will help to determine the profitability of company.
The particular CD's which at best buy those all are recorded in the information. This will help to its suppliers that which CD are selling and which type of CD might be recorded in the information. This information helps to marketing department also for understand the expectation of the customers and identify the demographic segment of sale.
The CEO can analyze the profitability associated with CD and identify the demographic area of high demand of CD's.
Hence, CEO could analyze the performance of product due to information value chain.
The entire transfer of information from business requirement and business event to the maintaining data and information for making decisions is called as information value chain. The information value chain starts with the identification of requirements of business and ends with final decisions taken by management.
Company needs to know how much CD it should have distributed to every retailer (Business requirements) it will collect the information on CD sales (Business event). After that company can analyze the data and turn data into information that helps to make decisions to management.
The information value chain can be shown the purchase of CD at best buy in the following way:
The sale from CD can be recorded as revenue and deducts all costs associated with it and after that remaining revenue will add or (deduct) from corporate income. This will help to determine the profitability of company.
The particular CD's which at best buy those all are recorded in the information. This will help to its suppliers that which CD are selling and which type of CD might be recorded in the information. This information helps to marketing department also for understand the expectation of the customers and identify the demographic segment of sale.
The CEO can analyze the profitability associated with CD and identify the demographic area of high demand of CD's.
Hence, CEO could analyze the performance of product due to information value chain.
Accounting Information Systems 1st Edition by Vernon Richardson,Chengyee Chang ,Rod Smith
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