 Hello, and welcome to this session in which we will discuss information technology systems or simply put IT system What is an IT system? It's a combination of hardware software and Telecommunication network that businesses or people use to collect process store and this disseminate data IT system can be used to support a wide range of business processes And that's why we have many IT systems in this session We're gonna review many parts of IT systems various parts such as business information system Transaction processing system office automation system management information system MIS Decision support system executive information system or executive support systems expert systems enterprise resource planning customer relationship management knowledge management systems Accounting information systems. Now. Here's what you need to know The one that are highlighted in yellow. I do have a separate recording for them Okay, because I believe those are they require more attention. So that's why I have them separate the one in red I'm gonna be discussing today going over today. So if you're looking for BIS or MIS look at those recording or especially ERP and CRM and AI especially if you're an accounting major or studying for the CPA or the CMA exam are these the only Information system and the answer is no, we could have many others Such as such as supply chain management system business Intelligence system not, you know, this is BIS and this is BIS. We could also have a bi simply called simply put called bi business Intelligence so we could have many system in this in this session I'm gonna start to discuss the systems and I'm gonna start with the one that you are most comfortable with and this is office automation system or AS before we proceed any further. I have a public announcement about my company farhat lectures comm Farhat accounting lectures is a supplemental educational tool That's gonna help you with your CPA exam preparation as well as your accounting courses My CPA material is aligned with your CPA review course such as becker Roger Wiley gleam miles my accounting courses are aligned with your accounting courses broken down by chapter and topics My resources consist of Lectures multiple choice questions through false questions as well as exercises go ahead start your free trial today No obligation no credit card required What is an office automation system? It's a computer-based system that automate routine Office tasks. What would you have in this word documents spreadsheet management email communication and scheduling? What are we looking at really? We're looking at office Microsoft office. This is where an office automation system. That's a system The goal of the system is to improve the efficiency and productivity of the office work by Streamlining repetitive tasks and reducing manual effort. We all use Excel word document email scheduling office 365 this is where an office automation systems. Is this the only one? No, but that's the it's the dominant one office 365 what are the key features of this system? It provides tools for editing text-based document Let such as letters report and presentation PowerPoint slides so on and so forth provide tools for creating and analyzing numerical data such as spreadsheets and graphs tools for sending and receiving electronic messages email instant messaging video conferencing and Tools for scheduling and managing appointments meetings and event a few 365, you know what an OAS is I started with this one So so these concepts are not foreign to you something you can touch it support Collaboration sharing allowing multiple users to work on the same document like the share drive or project and real life So this is called an office automation systems. You might see a multiple choice about the exam about this We could also have transaction processing system. Also, you may you may be familiar with this system or work with it without even knowing Transaction processing system is a system that does what? Process transactions in any place of work. You would have a transaction processing system whether you are buying selling being paid Paying for suppliers so on and so forth it support and automate business transaction sales purchases and Payments they are designed to process large volume of transaction quickly and accurately often in real time Think about point of sale where you buy something they scan it boom. It's done. This is transaction processing system They are critical for businesses as they support the core operation such as order fulfillment Inventory management and financial reporting. So it's important key feature of a TPS is it capture transaction data from various sources The main example point of sale terminal What's a point of sale terminal is when you buy something in a supermarket when they scan it This is point of sale terminal e-commerce website Maybe you purchase this course and you go through my website e-commerce This is transaction processing system for me because when you buy it It's a sale from my end and what captured the sale. This this is my transaction processing system Also, it validate transaction to ensure that it's accurate and meet specific business rules and requirement For example, when you input your credit card information if it doesn't match if you put invalid address It doesn't accept it process transaction data updating databases and generating report also It's stored transaction and databases for future retrieval and analysis. I can go in and look at sales report And other data as well It also implements security measures because you are processing transaction For example, my system will have security measures to make sure your data is protected from any unauthorized access and Modification a typical example of this TPS is an online retail store ordering management system Okay, or in a supermarket that teller or if you work in a supermarket and I work in a supermarket when I was in college When you scan, this is your your processing transactions scanning. You're not processing it manually the system is processing the transaction Another system called DSS or decision support systems Those are computer-based. They're all computer-based that support decision by providing managers with Informations and tools they need to analyze data Identify patterns and evaluate alternative courses of action. It's a little bit more advanced than the previous system Remember, the previous system is routine. We're looking here at routine transaction automating routine transaction That's you know sales purchases payment. Those are routine. They happen on a regular basis that the decision support system is more for Analyzing data identifying pattern and evaluate alternative course of action This is what it is. So it's a little bit more advanced comparing to the transaction processing system So if we start with TPS now, let's start with TPS here So if we start with TPS, this is kind of more advanced DSS So if you think TPS or let's assume the TPS employees uses TPS DSS Let's say middle middle level management middle level management MM some key features of a DSS include data access DSS provide managers will access to internal and external data such as financial data market research and customer data Because now you're look you're looking you are working on the managers level DSS provide tools for analyzing the data such as spreadsheets that the statistical software and predictive analytics You might say hold on a second then the OAS the office automation system also have a spreadsheet Yes, but here you might have more advanced features or you're gonna be using the spreadsheet to conduct analysis rather than just keeping the data You could have statistical software that's integrated in it and it could have predictive analytics It could have a modeling feature which modeling for evaluating alternative actions like what if analysis? What if we do this? Okay, such as cost benefit and scenario planning it might have a visualization Power such as graphs charts and maps to help managers again Who uses the DSS like the managers understand complex data and relationship? It has also a collaborative feature by providing platform for stakeholders to work together for example managers and share insights An example of this will be maybe a financial planning and analysis system used by a company's finance department It's could be a DSS system could have many type in different industries EIS or Executive support system ESS depending on your textbook or in your CPA course. They might use it differently Remember we have TPS we set TPS employees uses the TPS Again, I just want you to understand this Then we have ESS executives uses Executive which is the top management and we have the middle-level management. They use which system the SS so notice here we go from TPS to DSS basically I'm going to a higher level It's a computer computer based system They're all computer based system that provide high level executives with summarized view of the organization performance So it's not transaction. It's not data That you know mid-level management high-level views some key feature include a dashboard a dashboard There's basically one screen where you it could be multiple screen where you can see the big picture of what's going on This is a dashboard provide executive with real-time dashboard that display KPI such as sales revenues and customer relationship Or it could also have it could have the ability to generate report to provide for executives a Summarized view of the organization performance such as financial reports Operational reports and market report of course because managers what they're interested in having reports Reports about what about the company overall not specific product not specific not specific Not specific Area the overall how everything is going and when we talk about display keep II keep yeah keep II is key performance Indicators it could be for different companies could be many things to just gauge the process the progress of the company It will also have a data visualization feature just like the DSS Graphs chart maps for example, you want to know what's going on geographically that help executives understand complex and Relationship data They would have also data access provide executives with access to data and information from multiple sources Internal databases external databases and sensors as well an example would be maybe a CEO CEO dashboard most software For example right now. I'm using a an educational software. It has a see it. It's called the CEO dashboard For example, you will have access of everything what's going on in terms of activity within the company For example CEO dashboard used by a CEO large retail chain Then we have expert system expert system is a little bit different than the previous three It's a computer program that designed to mimic the decision-making ability Here you are making decision of a human expert in a specific domain when you think of expert system think of AI or Robotics although we're not gonna call them robotics and AI because we're gonna have you know separate session about artificial intelligence But they are I don't know how different they are they are mimicking decision-making ability of a human in a specific situation Some key features will be expert system use a knowledge base to represent the expertise of a human expert in a specific domain So it might have enough information in a specific domain where it can tell you Something of an expertise of a human based on the knowledge it you fed it rule based system Okay, it could be used as a set of rules to make decision based on information in the knowledge base So for example you tell it once you find this information you will you know produce these results here We have again artificial intelligence capability again artificial intelligence and expert system. There's blurry Line there uses artificial intelligence techniques such as machine learning natural language processing to improve their decision-making abilities And basically artificial intelligence is basically looking at the data Studying the data quickly and being able to decipher the data Into useful information could be a bunch of data It may take someone two three weeks to go over the data Maybe an expert system train on that data can give you the information that you need and spell it to you in simple language Rather than hiring a person for three weeks to generate this information It will have a user interface that's very user friendly It should be that allows users to interact with system and receive recommendation and solution Now if you Google or if you go on YouTube and you type Lita AI Lita artificial intelligence and you will see a an expert who's a doctor Dr. Alan Thompson talking to this artificial intelligence But the other person the other I said person the artificial intelligence looks like a person and talking to them So this is what we by user interface. It can be that realistic It would give explanation and justification For their decision allowing users to understand reasoning behind the decision An example of it could be in the medical diagnosis field where the doctor is feeding the information to get in to get an expert Opinion from this expert system. Obviously the doctor would use their own opinion, but it will help So an expert system used by a doctor to treat patient could be a good example The system provide explanation and justification for its diagnosis However, allowing the doctor to understand the reasoning now the doctor will make the final decision To make informed decision about the best course of treatment for their patient Maybe the doctor overlooked something the expert system don't because they don't get tired They're trained to be on their feet 24-7 Another another system called knowledge management system or KMS This system is designed to support the creation storage retrieval and dissemination of knowledge within an organization Basically knowledge-based system would for the employees some key features include knowledge repository Basically provides centralized about repository for installing and organizing knowledge as a document videos and audio file And I'm pretty sure at your company you have a place where if you need a document There's some you know somewhere on the hard drive if you need to view a video or an audio file This is basically a knowledge repository search and retrieval provide advanced search and retrieval capabilities for number one Making it easier for employees to find the information that they need it would have a collaboration and sharing for example If you find the file it will allow you to share it with other people per personalization it provide Features such as recommendation and customized views to help employee find the information. That's more relevant to their need Could have a social features for example forum wikis and blocks to support knowledge and sharing and collaboration an Example of knowledge management system is an employee portal used by a large corporation for example my wife She works and J&J and she always uses the system to look up information about her 401k Her pension if she need to get in touch with another person There are blogs wiki blogs by other employees that they talk about issues and that's within the company within the company itself Now let's take a look at a multiple choice questions that you could see on the CPA exam So or on the CMA exam or whatever exam you are studying for so it shows you how you would use this information Okay, for example, the question could be what's the main purpose of DSS decision support system DSS Do you know what's the main purpose of DSS? Hey to automate routine business transaction. Hmm. Is that the case? I? Would say no okay Automate it could do this it could definitely do this But that's not the main purpose of it the main purpose and anyway if you know you want to look at the other options But I don't think that's the main purpose because routine business decision Routine business processes either they can be done by a TPS or they could be done by OAS could be done by both So a is incorrect. This is not the main purpose This is not the main purpose. Let's look at B So a is out B provide high-level executives with summarized view of the organization performance Hmm high-level executives with summarized view not really because high-level executives They do have their own system the executive support system or the executive information system So no B is not the correct answer. Okay. This is the purpose of the executive information systems Not the DSS Three to mimic the decision-making ability of a human expert and in a specific domain Hold on a second. This sounds like artificial intelligence. This sounds like an expert system not a DSS indeed This is the definition of an expert system and by process of elimination We think we think these are good answer to support decision-making to improve operational efficiency. Yes DSS is used as I told you by middle-level management. For example, I told you TPS think of TPS used by employees Let's also I'm gonna add OAS. Let's assume. It's used by the support people, you know What could be used by the employee that they're like in a support position TPS by employees DSS by middle management ESS by executives top-level management now the expert system could be used by DSS ESS mean basically whoever has the ability or the capability or The qualification to use it but D is the correct answer The main purpose is to support decision-making and improve operational efficiency It provide decision-maker with information They need to make they need to make informed decision by analyzing data Identifying patterns and presenting result and easy to understand So what should you do now go to far hat lectures and look at similar MCQs That's gonna test your knowledge about these different information system. These are critical for your success You need to know this information for either the CPA exam the CMA exam accounting information system, whatever Certification you are working for. Good luck study hard and of course stay safe