Accounting Information Systems: The Processes and Controls, 2nd Edition

IT ENABLEMENT OF BUSINESS PROCESSES (STUDY OBJECTIVE 4)

Generally, information technology (IT) comprises all forms of technology used to create, store, exchange, and utilize information in its various forms, including business data, conversations, still images, motion pictures, and multimedia presentations. For the purposes of this book, information technology is defined as the computers, ancillary equipment, software, services, and related resources as applied to support business processes. IT usage to support business processes accomplishes one or more of the following objectives:

1. Increased efficiency of business processes
2. Reduced cost of business processes
3. Increased accuracy of the data related to business processes

Any of the processes within an organization, including the linkages within the supply chain, are processes that may benefit by IT enablement. The touch-screen cash register at a McDonald's is an example of IT that increases the efficiency of the sales process. Another popular example of IT enablement of processes is e-commerce sales such those in place at Amazon.com, Inc. Amazon.com uses complex IT systems to present a sales model that allows customers to place orders on its website.

These two examples only scratch the surface of the types of processes that can be IT enabled. Any business process has the potential to be improved by IT enablement. In many cases, using IT to enable processes leads to a completely different approach to those processes. For example, ...