In 1967, Russell Ackoff presented a classical analysis of misinformation in management ( Ackoff’s Management Misinformation Systems , Case 1-1, pg. 21 of the text). Now, you need to fast-forward to...

Student Name
Course Name
University Name
28th-July-2013
Financial Management and Accounting Information Systems
Financial management allows IT departments to establish control over their
own financial activities and lay the foundations to build financial credibility with the
usiness units that are the customers of IT. It also provides those customers with
accurate costing and charging for the IT services they consume. Service-based
costing and pricing are critical for IT as Engine Room if it is to remain financially
viable.
Five inco
ect assumptions in any Accounting Information System Model
 All future developments will be met by AIS: In IT as Engine Room, AIS
funding uses a service center model. It is an efficient provider of IT services,
ut many of the services are technical rather than business services (as in IT
as Global Service Provider). Funding of IT services is based on demand and
the value that those services provide to the enterprise.
 AIS helps in development of cost models: In IT as Engine Room, building
on the traditional asset-based view of spending to provide AIS cost
transparency at the service level, this typically remains an IT-centric view.
This area provides visibility into technology costs, including benchmarking by
technology component or domain (for example, servers, storage, network and
so on).
 AIS will help in product pricing: In IT as Engine Room, AIS delivery teams
attempt to price IT services at cost, or at least as closely as possible to the
cost figure. IT service cost is typically calculated at the IT component or
domain level (server, storage, network and so on) and combined into an IT bill
of materials.
 AIS will help in Chargeback: In IT as Engine Room, chargebacks in this
model require a higher level of sophistication than low-level or high-level
allocations. The majority of chargebacks are service-based pricing. However,
certain services still may be charged via negotiated flat rate, tiered access,
measured resource usage or direct cost.
 AIS will boost the revenue of the company: AIS is an information aid and it
will help decision making but ultimately it is the capability of the management
to use the information wisely.
Finance
Executional
Process and
Insight Areas
Business and Decision
Processes
Primary Data
Periodicity
and Type
Information
Sources
Analytic
Capabilities
Business
Apps Using
the Analysis
Finance
Operational
Close
Processes
Identify that all
transactions have been
posted, and that all
appropriate adjustments
have been made (e.g.,
accruals) to allow the GL
to close
Monthly,
alance and
transactional
GL, accounts
payable and
accounts
eceivable
Fixed assets
Inventory
accounting
Project
accounting
Order
management
Financial
eporting tools (to
produce trial
alance, profit
and loss [P&L],
and balance
sheet)
Online inquiries
from GL account
alances, with
drill down to
subledgers
CFO/controller
dashboard
Disclosure
management
apps
Finance
Corporate
Consolidation
and Close
Processes
Identify that all corporate...