Module 5: ERP and cloud computing

Data Input

The first stage of the data processing cycle that involves capturing data, checking for accuracy, and ensuring company policies are followed.

Data Capture

The specific action of collecting information about an activity, the resources affected, and the people involved using source documents or automation.

Audit Trail

The traceable path of a transaction created by organizing data through journals and ledgers.

CRUD

The four main types of data processing: Creating new records, Reading existing data, Updating previous data, and Deleting data.

Batch Processing

Updating data periodically, such as posting all records at the end of the business day.

Real-Time Processing

Updating and processing data immediately as the transaction occurs.

Traditional AIS Limitation

It solely processes financial data, requiring separate systems for non-financial data, leading to redundancy.

Enterprise Resource Planning (ERP)

A modularized system that integrates all aspects of a company's operations (financial and non-financial) into one centralized database.

ERP Advantage: Data Entry

Data is captured only once (e.g., entered once for both sales and accounting), streamlining the flow of information.

ERP Disadvantages

Highly costly, requires a significant amount of implementation time, complex, forces standardization, and is prone to user resistance.

Cloud Computing

The delivery of computing resources (storage, applications, processing power) over the internet on a pay-as-you-go basis.

Cloud Computing Drivers

The need for anywhere/anytime access, compliance with privacy laws, security, limited internal IT capabilities, and mitigating risks of local disasters.

Cloud Computing Advantage: Peak Loading

Allows companies to handle sudden spikes in volume by instantly scaling up vendor resources instead of buying permanent hardware.

Cloud Computing Advantage: Cost Savings

Reduces IT capital expenses because firms only pay for the cloud resources they actually use.

Cloud Computing Risk: Independence vs. Dependence

Benefiting from a vendor's specialized expertise while becoming highly reliant on them for core daily operations.

Cloud Computing Risk: Owning vs. Using

The trade-off between retaining control over physical hardware versus renting infrastructure from a provider.

Cloud Computing Controls

Disaster recovery planning, enforcing document retention, careful vendor selection, clear contract terms, and vendor audits.

Encryption

Transforming readable plaintext into unreadable ciphertext using an algorithm and a key.

Encryption Limitation

It only protects data during storage or transmission, not during processing since data must be decrypted to be actively used.

Virtual Private Network (VPN)

A secure tunnel created by encrypting information before sending it over the internet.

Digital Signature

A hash of a document encrypted with a private key used to create a legally binding agreement.

Data Loss Prevention (DLP)

A preventive software control that blocks outgoing messages containing sensitive keywords or intellectual property.

Digital Watermark

A detective control embedded in documents used to identify confidential information that has been leaked.

Privacy vs. Confidentiality

Privacy focuses on protecting customer personal information, whereas confidentiality protects internal organizational data.

Identity Theft

Assuming someone's identity, usually for financial gain.

Spam

Unsolicited emails that contain advertising, offensive content, or malware.

Minimizing Identity Theft: Disposal

Using special software to thoroughly clean digital media prior to disposal, or physically destroying it.

Minimizing Identity Theft: Best Practices

Shredding sensitive documents, securely storing financial data, monitoring credit reports, and never sending personal info via unencrypted email.

Security Training

The most important control for protecting confidentiality; teaching employees safe practices like proper email use and always logging out.

CAP (The 3 Steps of Data Input)

Capture the data, check that it is Accurate/complete, and ensure Policies are followed.

V-CARD (Cloud Computing Controls)

Vendor selection, Contract terms, Audits, Retention policies, and Disaster recovery planning.