Chapter 1 Chapter 6 Introduction Electronic to Accounting

Chapter 1 Chapter 6 Introduction Electronic to Accounting Information Business Systems (E-Business)

Learning Objectives • Understand major approaches to transfer data electronically during business events processing • Recognize complexities of electronic doc. mgt. • Understand complexities of EDI • Appreciate challenges of direct business links to customers via the Internet • Appreciate business advantages of effective use of electronic commerce

Electronic Business • Involvement of two or more individuals and/or organizations in completion of electronic business transactions • Byproduct: elimination of sales staff, normally intermediary between two parties to transactions • Transactions completed more quickly, more efficiently, and more effectively 3

Batch Processing • • Business event occurs Record business event data Update master data Generate outputs 4

Automated equivalent - manual system 5

Online transaction entry (batch) 6

Online Real-time Processing • Transaction occurrence/recording in transaction files • Update master files • Generate reports - support queries 7

Online real-time processing 8

Online Transaction Processing • RT system that performs all or part of processing at data terminal location • Updating of master data may be immediate or delayed • Can have memorandum update in RT and full batch update at night (referred to as remote batch) 9

Traditional real-time processing system 10

Online transaction processing 11

Advances in Electronic Communication • Automated Data Entry – Bar Code Readers – OCR – Scanners • Digital Image Processing • Communication Networks – LANs – WANs – Internet 12

Digital image processing 13

EDI transaction set 14

Typical Internet Connection 16

Learning Objectives • Understand major approaches to transfer data electronically during business events processing • Recognize complexities of electronic doc. mgt. • Understand complexities of EDI • Appreciate challenges of direct business links to customers via the Internet • Appreciate business advantages of effective use of electronic commerce