Accounting Information Systems

1. Accounting Information Systems UAA – ACCT 316 Accounting Information Systems Dr. Fred Barbee

2. Information What is it?

3. Information as a Resource • In the past, organizations were said to have five major resources . . . • Men The 5 Ms

4. Oops . . . that isn’t politically correct - Sorry about that!!!

5. Information as a Resource • Once more, organizations have five major resources: 1. Men (i.e., people) 2. Machines 3. Money 4. Materials 5. Management The 5 Ms

6. Information as a Resource Information is now regarded as the sixth resource.

7. Consider this scenario . . . It isn’t all that far-fetched!

8. Quick Give me all your ideas!

9. Decision Making Controlling Organizing Directing Functions of Management Planning

10. Information . . . After the human element . . . Quality, and Timely business information is an executive’s most important resource.

11. Information Anxiety Source: Information Anxiety Richard S. Wurman New York, Doubleday, 1989

12. A weekend edition of the NY Times contains more information than the average person was likely to come across in a lifetime in seventeenth-century England.

13. More new information has been produced in the last 30 years than in the previous 5,000.

14. About 1,000 books are published internationally every day, and the total of all printed knowledge doubles every eight years.

15. In a single year the average America will . . . • Read or complete 3,000 notices and forms; • Read 100 newspapers and 36 magazines; • Watch 2,463 hours of television;

16. In a single year the average America will . . . • Listen to 730 hours of radio; • Talk on the phone for 61 hours; and • Read 3 books

17. Information Overload Is it real?

18. How Much Information? http://www.sims.berkeley.edu/research/projects/how-much-info/summary.html

19. The world produces between 1 and 2 exabytes of unique information per year, which is roughly 250 megabytes for every man, woman, and child on earth.

20. Data Powers of Ten

21. Data Powers of Ten

22. Yearly Production of Published Information

23. Yearly Production of Published Information

24. S Y E Information Overload Is it real?

25. Information Overload . . . • The theory of bounded rationality (Simon, 1955). • Humans are organisms of limited knowledge and computational capacity. • Thus, simplifications (heuristics) are deliberately introduced into the choice mechanism.

26. The Challenge of Information `- http://wip.monroecc.edu/wipdepts/library/lib100/lim0p3.htm

27. 3,000 BC Date Clay Tablets Method 1 cci Characters/Cubic Inch 1450 A.D. Printed Page 500 cci 1990s Optical Disk 125,000,000,000 cci Information Storage

28. 5,000 BC Date Method Abacus 2-4 ips Speed in ips* 1945 A.D. Computer 100 ips 1960s Computer 100,000 ips 1970s Computer 1,000,000 ips 1980s Computer 10,000,000 ips 1990s Computer 1,000,000,000 ips Computation Speed . . . *Instructions per second.

29. 4,000 BC Date Messenger Medium Speed in wpm* .01 wpm 1844 A.D. Telegraph 50 - 60 wpm 1980s Cable/Fibre 1,000,000,000 wpm 1990s Fibre 100,000,000,000 wpm Transmission Speed . . . *Words per minute

30. 4,000 BC Date Written Medium 300 wpm Speed in wpm* Today Written 300 wpm 4,000 BC Visual 100,000,000 bpg** Today 4,000 BC Today Spoken Spoken Visual 100,000,000 bpg 120 wpm 120 wpm Human Processing Speed . . . *Words per minute **Bits per glance

31. Dealing With Information Overload.

32. Information Processing • People are consistency seekers; • People are Information Processors; and • People are Cognitive Misers

33. People as Consistency Seekers • Strive for consistency when processing information. • Find support for our beliefs.

34. People as Information Processors • Actively seek out information, • Observe facts, and • Reason

35. People as Cognitive Misers • Minimize cognitive efforts, and • Take shortcuts.

36. Managers as Cognitive Misers • Managers must be selective in the kinds of information they request. • The key to limiting the flow of data is to request only relevant information.

37. Stop and look at Ackoff’s 1st Assumption.

38. Assumption 1: Management needs more information. `-

39. Stop and look at Ackoff’s 2nd Assumption.

40. Assumption 2: Managers need the information they want `-

41. What kind of information do managers need?

42. To be information literate, a person must be able to recognize when information is needed and have the ability to locate, evaluate, and use effectively the needed information. Source: Presidential Committee on Information Literacy http://www.ala.org/acrl/nili/ilit1st.html January 10, 1989

43. To be information literate, a person must be able to recognize when information is needed and have the ability to locate, evaluate, and use effectively the needed information. Source: Presidential Committee on Information Literacy http://www.ala.org/acrl/nili/ilit1st.html January 10, 1989

44. To be information literate, a person must be able to recognize when information is needed and have the ability to locate, evaluate, and use effectively the needed information. Source: Presidential Committee on Information Literacy http://www.ala.org/acrl/nili/ilit1st.html January 10, 1989

45. To be information literate, a person must be able to recognize when information is needed and have the ability to locate, evaluate, and use effectively the needed information. Source: Presidential Committee on Information Literacy http://www.ala.org/acrl/nili/ilit1st.html January 10, 1989

46. Stop and look at Ackoff’s 3rd Assumption.

47. Assumption 3: Giving managers the information they need improves their decision making. `-

48. Information . . . What is it?

49. What is information? • Let’s define the term. • Don’t worry about stating it in formal terms. Just tell what it means to you. • Write a one sentence definition. • Then . . . we will compare.

50. What is Information