Information Systems in Business

1.1. Describe the functional areas of a business and why they must work together for the business to be successful.

 The functional areas of a business include accounting, finance, human resources, sales, marketing, operations management and management information systems. These functional areas are interdependent on all other functions. All departments must work together and share common information in order to perform all tasks more effectively and efficiently.

1.2. Explain information technology's role in business and how you measure success.

Information technology manages and processes information by use of technology. It measures success by the effectiveness and efficiency the technology produces.

1.3. Compare management information systems (MIS) and information technology (IT), and define the relationships among people, information technology, and information.

Information technology deals with the application of techonology in order to perform information processing. Management information systems applies people technology and procedures in order to complete business problems and tasks.

People use information technology to work with information.

1.4. Compare the responsibilities of a chief information officer (CIO), chief technology officer (CTO), chief security officer (CSO), chief privacy officer (CPO), and chief knowledge officer (CKO).

A chief information officer manages leads and communicates with all aspects of IT. A CIO overlooks the main objectives and goals of IT in order to ensure customer satisfaction. A chief technology officer is most concerned with the efficiency of the IT systems. A CTO focuses on all components of IT. A chief security officer protects the IT systems from any outside invaders including hackers and viruses by controlling networks and telecommunications. All ethical and legal aspects of a corporation are controlled by the chief privacy officer. CKO’s utilize systems knowledge. Together, all these responsibilities shape the success of the IT department.

1.5. Explain the gap between IT and the business, along with the primary reason this gap exists.

The gap that exists between IT and the business is primarily due to lack of communication. IT personnel have complete understanding of the technology that can positively or negatively affect the business. Business personnel control all strategy and business functions. IT personnel are often left out of certain business decisions that they could develop certain technologies in order to benefit these decisions.

Business basics

A. 1. Define the three common business forms.

Sole proprietorship- one person controls and manages all aspects of his business
Partnership- each partner is responsible for the profit and losses of a business
Limited partnership- an agreement in which the  partner shares all profits but is protected  by law against all losses

A. 2. List and describe the seven departments commonly found in most organizations.

Accounting-deals with the recording, measuring and describing financial information.
Finance- deals with increasing the value of a business while observing laws and social responsibilities Human resources- policies, plans and procedures for effective management of employees
Sales- Increasing customer revenues by increasing customer sales by selling  goods or services Marketing-Promoting the sale of goods or services
Operation/production-Systems that convert or transform resources into goods or services
Management information systems- The use of people technologies and procedures in order to solve business problems

A. 3. Describe a transaction and its importance to the accounting department.

A transaction involves two or more people exchanging goods, services or funds. Transactions are important to the accounting department because the transaction is recorded in a source document that is the first step to the accounting process and is proof that the transaction is made.

A. 4. Identify the four primary financial statements used by most organizations.

Balance Sheet
Income statement
Statement of owners’ equity
Statement of cash flows

A. 5. Define the relationship between sales and marketing, along with a brief discussion of the marketing mix.

Sales and marketing both focus on maximum customer sales at the same time increasing company revenues. Sales deal with the action of selling goods or services. Marketing deals with the promoting of deals or services. The marketing mix uses product, price, place and promotion in order to satisfy customers in the target market.

A. 6. Define business process reengineering and explain how an organization can use it to transform its business.

Business process reengineering is the redesign and reorganization in order to increase efficiency and effectiveness in and between businesses. This can completely transform the efficiency and success of a business by improving all previous flaws.