INFORMATION ON BUSINESS PROCESS

Businesses engage in a variety of activities
Each activity requires different types of decisions
Each decision requires different types of information
AIS is a platform to integrate information from different sources (internal & external)

Transaction and process:

We learned from lecture 1, data is a fact of activity, such as student sitting my class is a fact.
In business, we call the fact as transaction.
Formally, transaction is any event that can be measured in economic terms (such as money) by an organization. (such as sales transaction)

Business Cycles:
Business Cycle is a transaction cycle
Many business activities are paired in give-get exchanges (remember company is an entity)
The basic exchanges can be grouped into five major transaction cycles:
- Revenue cycle (Give Goods, Get Cash)
- Expenditure cycle (Give Cash, Get Goods or Services)
- Production cycle (Give Raw Materials & Labor, Get Finished Goods)
- Human resources / payroll cycle (Give Cash , Get Labor)
- Financing cycle (Give Cash, Get Cash)
Under these cycles are various of transactions. (Please refer to the powerpoint notes)
Every transaction cycle relates to other cycles.
Every transaction cycle interfaces with the general ledger and reporting system.
Inside the powerpoint notes are comprehensive example of cycles.

The Role of AIS in business cycles:
The people is call these cycles as modules in information system. Such as Sales modules.
In real world, some information systems has difference modules(just for your knowledge).
The role of AIS is process data from activities. We also call this data processing cycle.

Data Processing cycle
The data processing cycle consists four steps:
- Data input
- Data storage
- Data processing
- Information output