Chapter 4 Software and systems- ACC 3300

What are the two types of online processing systems?

Online transaction processing (OLTP) systems and online analytical processing (OLAP) systems.

What is the primary function of an OLTP system?

To support core business functions by handling sales, accounting, purchasing, and more.

What is the focus of OLAP systems?

To leverage data for information analysis.

What type of system supports strategic decision making?

Executive support systems (ESS).

What do decision support systems (DSS) assist with?

Solving nonroutine problems and unstructured decision making.

What is the role of management information systems (MIS)?

To assist in routine management activities.

What do transaction processing systems (TPS) do?

Process day-to-day business activities and capture data for higher-level systems.

What are the two processing methods used by a TPS?

Batch processing and real-time processing.

What is batch processing?

Collecting data as it is generated and processing it later at a scheduled time.

What are the benefits of batch processing?

Efficiency, simplicity, and quality of data.

What is real-time processing?

Processing a transaction as it occurs, requiring high processing capabilities.

What is the role of software in an information system?

It acts as the interface between components and users, governing interactions.

What is systems software?

Specialized software that runs a computer's hardware and other software.

What is application software?

End-user programs that perform specific functions.

What are the two options for acquiring software?

Purchasing from a third-party vendor or developing in-house.

What is cloud computing?

Accessing shared resources over the internet, minimizing on-hand computer resources.

What are the three cloud deployment models?

Public cloud, private cloud, and hybrid cloud.

What are common technologies used by startups?

Square, Excel, Access, Internet of Things (IoT), and QuickBooks.

What is a major risk for startups compared to large corporations?

Fewer resources to mitigate risks.

What is a compensating control?

A control used to reduce risk when more expensive or complex controls are missing.

What is the purpose of control activity considerations for small businesses?

To identify and address controls that are often lacking.

What is the significance of SQL in software?

SQL can be used to model and extract data.

What is the main challenge of using third-party software?

Potential risks related to reliability and compatibility.

What is the advantage of using SaaS for startups?

It allows startups to access software without heavy upfront costs.

How do growing businesses enhance their systems?

By upgrading technology and adopting more complex systems as they expand.

What is the importance of data integrity in a TPS?

To ensure accurate and reliable data collection and processing.

What is the role of programming languages in software development?

They are written sets of coded instructions that the system understands.

What is the difference between systems software and application software?

Systems software manages hardware and software coordination, while application software performs specific tasks for users.

What are the two ways companies can grow?

Organic growth and acquisition-based growth.

What is organic growth?

Growth that occurs when a company uses its own resources and processes to increase sales, customers, and market share.

What is acquisition-based growth?

Growth that occurs when a company purchases and integrates other companies into its infrastructure.

What is the difference between a merger and an acquisition?

A merger results in a new company that combines two businesses, while an acquisition results in one company taking control of another.

What is systems integration?

The process of joining different systems or subsystems into one larger system to ensure they function as one.

What is a lift and shift in systems integration?

A method where the acquiring company moves the acquired systems to its data center while maintaining the existing systems.

What is immediate integration?

An approach where a company integrates systems right away, often focusing on priority systems.

What are the challenges of immediate integration?

Converting existing data to the new system format and eliminating original systems.

What are centralized systems?

Systems that connect all users to one central location for business processing and data storage.

What are decentralized systems?

Systems that utilize multiple locations, each maintaining a copy of the data needed for connected systems.

What is a distributed system?

A system where all users and systems are directly connected across the network, with processing and databases distributed among locations.

What is an enterprise resource planning (ERP) system?

A solution that integrates multiple systems into a single cohesive communication system.

What are the benefits of an ERP system?

Improved data transparency, future cost savings, increased efficiency, quality improvement, and automation of routine processes.

What is an ERP module?

A function within an ERP system that supports specific business processes.

What are the three common types of ERP solutions?

Out-of-the-box, configurable, and customizable ERP systems.

What are some costs associated with implementing an ERP system?

Licensing fees, customization, hardware, consultants, and training.

What is the purpose of ERP systems?

To address issues of disparate systems by providing a unified system for communication and data management.

What is a key consideration when selecting an ERP vendor?

Choosing a solution that meets the specific needs of the business.

What is a common misconception about ERP systems?

That they can provide unrealistic expectations for immediate results and improvements.

What is the goal of integrating systems into an ERP?

To create a cohesive communication system that enhances business functions.

What is the risk associated with ERP system implementations?

High risk due to complexity and the potential for failed implementations.

What is the role of data transparency in ERP systems?

To improve the quality and accessibility of data across the organization.

What does 'configurable ERP system' mean?

An ERP system that has some features that can be customized to meet customer needs.

What does 'customizable ERP system' refer to?

An ERP system whose features are fully tailored to an individual customer's requirements.

What is the significance of training in ERP implementation?

Training is essential to ensure users can effectively utilize the new system.

What is a challenge of integrating multiple systems?

Data in different systems may not be in the same format, complicating integration efforts.

What is the main advantage of a centralized system?

All business processing occurs at one central location, simplifying management.

What is a disadvantage of decentralized systems?

Not all users are connected to all access points, which can lead to data inconsistencies.

What is a key feature of distributed systems?

All users and systems are interconnected, allowing for real-time data communication.