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CIS 105 Chapt. 12 Notes

by: Brigette Maggio

CIS 105 Chapt. 12 Notes CIS 105

Brigette Maggio
GPA 3.9

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These notes cover CIS 105 Chapt. 12.
Computer Appls&Info Technology
Wood, McCarthy
Class Notes
CIS 105
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This 4 page Class Notes was uploaded by Brigette Maggio on Monday January 4, 2016. The Class Notes belongs to CIS 105 at Arizona State University taught by Wood, McCarthy in Fall 2015. Since its upload, it has received 101 views. For similar materials see Computer Appls&Info Technology in Computer Information Systems at Arizona State University.

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Date Created: 01/04/16
CIS 105 10/27/15 McCarthy­ Chapter 12 *­business: organized entity to make a profit *­non­profit: different tax structure Most businesses share the same core business functional behaviors, or departments,  whether it is a global enterprise, or a sole proprietorship. *A broad definition of a business is  that is an organized entity designed to sell goods and/or services, usually in an endeavor to  make a profit. Business functional behaviors therefore can be defined as the necessary core  activities required to operate a successful business.  • Accounting Department  • Human Resource Department  • Marketing Department  • Research & Development Department  • Production Department 1.) *The Accounting Department  Accounting measures and provides financial information about an organization primarily for its  decision makers, investors, and taxing authorities. *Accounting is often referred to as the  language, or mathematics of business. *GAAP (generally accepted accounting principles) are accounting rules for preparing,  presenting, and reporting financial statements so the organization and its investors can have a  standard set of reports regarding a business’ well being. Some of these financial statements  include balance sheets, income statements, earning statements, and cash flow reports. To  insure the accuracy and fair reporting of these financial statements, *laws like the Sarbanes­ Oxley Act of 2002 were enacted to counter fraudulent reporting.  2.) The Human Resources Department  Economic terms like “firm­specific human capital” and even “human resources” suggest  that people are a commodity, which is true by some definitions. What is true is that people are  the most important asset in any business, and it’s the job of human resources departments to  administer people.  Traditional roles of human resource departments: involve recruiting and hiring new  employees, evaluating and managing personnel, tracking personnel data, administering payroll  and pensions, and sometimes providing advice to employees regarding work­related issues.  3.) The Marketing Department  Marketing is the promotion of a business’ products and is a core business functional  behavior. Marketing departments focus on customers and have core responsibilities like  advertising and branding a business’ products and services. Products are the actual goods and  services a business produces and how they relate to customer’s needs including warranties,  guarantees, and. Pricing refers to what a product costs, or at least what a business is willing to  exchange for their products. Promotion is the advertisement of a business’ products and services, as well as promotion.  Placement is how a product or service is delivered to a customer. How, where, and to whom a  product is delivered describes placement.  *­social media does NOT work in business, because there’s no way to calculate ROI  *­facebook follows your searches on google and your likes, and ads target the audience *­one exception: you can calculate an ROI because of facebook advertising 4.) The Research & Development Department  Research and development (R&D) departments take a creative and systematic approach to  evolve a business’ original idea and devise new ones. Part of an R&D department’s systematic approach is to consider if their ideas are feasible,  and if they can be implemented. R&D departments need to have a broad grasp of the business  they serve and its industry as well. Implementing new ideas can mean hiring new people which  means collaborating with the human resources and marketing departments.  *­IT and all 5 parts have to collaborate together 5.) The Production Department  Many businesses make tangible products like cars and machinery that are called “goods.”  Others create intangible products called “services,” like the advice from an attorney or  consulting from a financial advisor. Production departments make these goods and services to  be sold commercially. Production departments focus their efforts on which goods and services  to produce, how to produce them, and what it’s going to costs to produce them.  Production departments also focus their attention on the most efficient and cost effective way to  produce goods and services to maximize profits. For instance, a production department that  makes coat hangers may become aware of a manufacturing machine that will triple their output  of hangers.  Information Systems Collaboration  Since the five business departments are interrelated it is imperative that they share data and  information. The fact is business departments need to do more than just share data and  information to be successful; *they need to collaborate with one another. Although sharing  data and information can take many forms, like an annual budget printed on paper or an  electronic database file, it is important to understand that data and information is simply a tool  used for decision making. It is important to know that there is a difference between data and  information exchange and collaboration. Business collaboration is two or more people, or two or more departments working towards a common business goal. Collaboration is facilitated by the  exchange of data and information.  Information Systems Collaboration Information technology (IT) has to be leveraged  efficiently when sharing data and information to encourage collaboration. Keep in mind that IT  collaboration and data exchange almost always assumes the use of a network, whether it is  private, or even the Internet. Data and information exchange software and techniques can be  categorized as electronic computing tools whereas collaborative software and techniques can  be categorized as management tools.  One of the oldest of these business tools is an Internet discussion board. A discussion board,  sometimes called a forum, allows a virtual community of interested users post electronic  messages to a web page. *The first post to a discussion board is called a thread.  Instant messaging and online chat is another way to collaborate by exchanging data and  information. Instant messaging is similar to email except that it is real­time computer  communication. Businesses can use instant messaging across an office environment, or across  the world. Video and data conferencing allow businesses to collaborate through a network by  allowing two or more locations interact via video and exchange data during the conference often called a webinar. Webinars typically allow for collaboration and participation between an  audience and a presenter.   Project Management Software provides a business a collaborative roadmap for organizing  and managing resources to schedule a project from start to finish.  Knowledge Management Systems (KM) are collaborative systems that organize, create, and  distribute a business’ collective knowledge. A common example of a knowledge management  system within a business starts with distributing ideas, called knowledge transfer.  One of the newer online collaboration systems is called online application software. For  instance, two or more users can access the same spreadsheet, word processor, or presentation software and share its data and information. Google offers this free service called Google Docs  & Spreadsheets ( and is widely used by businesses and universities for  the purpose of collaboration.  *­opportunity cost: next best thing I can be doing New Chapter Business System Reporting or reporting for short is *informational output from an  information system to facilitate decision making. *Most reports are periodic in nature,  meaning that they are produced at given intervals, sometimes daily, weekly, monthly, etc.  *­in business, there are only 2 forms of decisions: new person­ tactical decision *­info. for tactical decision only comes from the company you come from *­CEO, top person, makes strategic decision, long­term planning  Reports can also be demand reports, meaning that they can be produced whenever they are  needed. Demand reports are sometimes called ad hoc reports. Reports help businesses  analyze information and can be predictive in nature to make strategic and tactical decisions.  *Strategic decisions refer to long­term planning designed to achieve a specific goal, whereas  tactical decisions are specific actions that serve a larger purpose.  *­what kodak could’ve done: a captive import: ordering a certain amount of cameras and having  another company produce them but put your sticker/ logo on it Reporting Summarization Levels refers to the level of detail or level of summarization in a  report. For instance, a hardware store produces a sales report from their computerized cash  registers on a daily basis. The computerized cash register has software installed called a  *transaction processing system (TPS) that collects and stores data (typically in a database)  about the hardware store’s daily sales.  *­summarize sales and just show your boss the total amount of sales *­came off exact same database, so it didn’t have the opportunity to go through reconciliation *­what percentage of the time is a spreadsheet wrong or fraudulent? only 6% *­actual: total number of sales *­if you subtract the actual from the previous, you get a variance *­predict the future* (key concept you should get out of coming here) *­money tied in 400 brooms is illiquid  *­if you have too many, then there will be a sale *­if you take actual and subtract the forecast *­if you reach a variance of 0 without the rest of the details, it doesn’t mean anything 


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