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Accounting Information Systems. Examine the typical computer based information system used in your chosen area, how they support that business area and the benefits they bring both to that business area and the organisation as a whole.

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Introduction

Information Systems Accounting Examine the typical computer based information system used in your chosen area, how they support that business area and the benefits they bring both to that business area and the organisation as a whole. 1. Examine The Typical Computer Based Information System Used In Your Chosen Area 2 1.1. Introduction to Accounting informational Systems 2 1.2. What is the purpose? 3 1.3. What does it do? 3 1.4. How does it do it? 3 2. How It Supports That Business Area 4 2.1. Porter's 5 Forces 4 2.2. Porter's Value Chain 6 2.3. Advantages of using Information systems 6 3. What Are The Benefits That They Bring To That Business Area And To The Organisation As A Whole 7 4. Conclusion 7 1. Examine The Typical Computer Based Information System Used In Your Chosen Area 1.1. Introduction to Accounting informational Systems There are four different types of organisational levels. Operational is at the bottom of the triangle where it has the most sectors compared to Strategic, Management and Knowledge. Accounting, falls under the Operational level system. These are TPS's or Transaction Processing Systems. A TPS is a "computerised system that performs and records the daily, routine transactions necessary to conduct the business" Kenneth C Laudon and Jane P Laudon. ...read more.

Middle

If there are less companies to compete with, the likelihood is more profit can be made and vice versa. Economically speaking, a profit of over 0 in an industry will attract new companies. More companies entering will make the market less attractive. A company that is already established would stop making so much of a profit. III. Threat of Substitute products Every industry is constantly updating products. Sometimes this means replacing old ones. If we look at the example of a basic timeline of the storage industry, the floppy disk was (in it's time) the data storage device. This was soon replaced by CD's which is now replaced by memory sticks. With each new invention being superior to the previous, it is easily to see why the memory stick industry is currently much more attractive to a new company than say the floppy disk one. IV. The Power of the Buyers This can also be seen as the elasticity of demand. If the buyer shows no interest in buying from the company, it cannot survive. The simply might not be willing to buy from a customer due to factors such as loyalty. An example of this is with cola drinks. Many people have a loyalty to the brand name Coca-Cola instead of any other. ...read more.

Conclusion

It massively saves time for them so they can spend time doing other things rather than exhaust so much of their limited time on data processing. The benefits to an organisation as a whole are that they make it much cheaper. Due to time saved for the accountant, they can pay them less and they can get more done. Less people have to be employed to process data. This brings down the companies costs. Due to the specialisation of the machines, economies of scale can be obtained and further reduce costs. An information system would be able to detect any values that are deviate from the norm and reduce the chance of mistakes in the system. 4. Conclusion In conclusion, not only does information system help the people using them, but the company as a whole. It eliminates the problem of time wasting, mistakes and boost efficiency. Information systems push out Porter's five forces which makes their business more successful in the unattractive market. Their contributions in the value chain make their product more valuable and hence the company becomes increasingly economical. In the business world, it is crucial to have information systems as they are one of the fundamental building blocks on not only the running and maintenance of a firm, but its success too. ...read more.

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