Information System

ACCA - F1   ACCOUNTANT  IN  BUSINESS

Source of data: Internal/in-house data collection system collects data using different transaction processing systems (e.g. payroll system, inventory management system, procurement system and sales system) and the collected data are stored within organisation for processing to generate information as well for legal compliance.  Data source can be external/out-house survey (market demand, market supply, demography, income level, credit history). This type of data is available from outside the organisation for no/marginal fee. Different government and non-government organisations periodically collect the data for their use some of which are available in public domain.

Not all data are easy to process. Data, which are quantitative in nature (expressed in term of numbers) are easy to process using mathematical rules. Qualitative data, which involve opinion on a particular issue, are hard to (summarize) process.

Data is processed and transformed to information. Information should be ACCURATE (Accurate, Complete, Cost beneficial, Understandable, Relevant, Adaptable, Timely and Easy to use). Data is manipulated to squeeze out information. A single data set can provide different information customized to different personnel holding different position.

Technological advancement has made data collection process easier and faster. In no time, organisations can collect 'real-time data,' manipulated them and use the information to maximize profit. However, the advancement has also affected individual's confidentiality issues.

For decision-making, different types of information systems are used by different personnel in an organisation. At operational level, Transaction- Processing System is used. This is the initial phase to collect data internally. It is also used as a source of information at operational level by staffs involved in repetitive work. At managerial level where decision-making is tactical in nature, the data gathered by the Transaction Processing System and from external sources are processed by Managerial Information System to generate information. Information generated from these systems are used by Executive Information System for strategic decision making. Further, decision Support System and Expert system are also used to tackle difficult decision-making situations.

Data are or data is?