Information Systems and Data Analytics
Lecture 1
The invention of double-entry accounting
Luca Pacioli (1447-1517) was the first to publish detailed material on the double-entry
system of accounting.
Learning goals
You will be able to
1. Explain the components and functionalities of information systems in general and enterprise
resource planning systems in particular.
2. Identify, IT, data and information problems in an organization and propose control solutions
to solve these problems.
3. Make a mapping of the most relevant IT innovations that accountants will have to
understand and use now or in the near future.
4. Compare various types of data analytics and explain their relevance to accountants.
5. Apply the basics of data analytics to accounting, audit, and control problems.
Information disciplines
Example mini-case
An organization uses a chatbot for handling customer enquiries. This chatbot is part of the
organization’s customer relationship management (CRM) system. Which of the following statements
is incorrect?
A. The chatbot is an example of robotic process automation (RPA) that is combined with
artificial intelligence (AI)
B. The chatbot, when combined with other chatbots and other IT systems may mature into
business process automation (BPA)
C. The CRM system is an example of business process automation (BPA)
D. A robotic process automation (RPA) implementation often necessitates the involvement of IT
specialists.
Answer A is correct since a bot is an example of RPA. In combination with AI, this bot can have a
conversation with a human as is the goal of a chatbot (see Vaassen et al. 2022, Ch.4 p.33). Without AI
added, the chatbot would not be an example of RPA and the student would consider this answer
option incorrect.Answer B is correct since RPA is a subset and less mature application of BPA (see
Vaassen et al. 2022, Ch.4 p.33). Without a deep understanding of the concepts of RPA and BPA and a
1
,basic understanding of maturity models, the student would not consider RPA a simple application
within the wider concept of BPA and would therefore consider this answer option incorrect.Answer C
is correct since CRM systems are applications that automate business processes as in BPA. BPA is the
use of software for streamlining critical processes to reduce the complexity of managing multiple
tasks for one process within an organization. CRM systems then streamline the processes of
collecting, recording, and retrieving customer specific knowledge (see Vaassen et al. 2022, Ch.4
p.33). Without a deep understanding of the relationship between CRM and BPA and without grasping
the role of the chatbot in the case organization’s CRM system, the student would not consider the
CRM system an example of BPA and hence would consider the answer incorrect.Answer D is
incorrect since developing a bot for RPA does not need the involvement of the IT department. IT may
be needed when the bot must be installed on the user’s system and the user does not have the
required admin rights, but this is not an RPAspecific issue (see Vaassen et al., Ch.4 p. 31-32). Without
a deep understanding of the essential feature of RPA that it does not need the involvement of IT
specialists, the student would intuitively consider the answer correct.So, the correct answer option is
D.
Part 2: Information Systems
Part 3: Data Analytics
So, what’s getting ubiquitous and cheap? Data. And what is complementary to data? Analysis. So, my
recommendation is to take lots of courses about how to manipulate and analyze data: databases,
machine learning, econometrics, statistics, visualization, and so on.
An example
Your e-business is going well, but you have the feeling that certain products have lagging sales in
certain geographical regions whereas the same products in other regions perform extremely well. To
transform your gut feeling into hard facts you decide to collect data on the sales per product,
decomposed into geographical region. Indeed, there are big differences. To find explanations for
these differences you realize that you need to think about possible causes and choose which data to
collect on these causes. For example, differences in the average income per household or differences
in culture may be two important explanatory variables for differences in sales between geographical
regions. Fortunately, these data are publicly available, so your main task is to combine your company
data with the externally available data to gain some insight into the causes of the differences in sales
and take appropriate measures including adjusting your inventory policy or making changes to your
line of products for certain regions. The technical analysis is the data analytics part whereas the
transformation of these analyses into usable information is the business intelligence part.
Clip 1: Introduction to information systems and data analytics
1. Information systems
A system is an organized collection of connected components that form a more complex
whole, aimed at attaining certain goals.
An information system is an organized collection of software and hardware for inputting,
processing and storing data, and providing information aimed at the attainment of
organizational goals.
An accounting information system is an organized collection of software and hardware for
inputting, processing and sorting data on business events, aimed at providing information to
internal and external stakeholders that complies with specified quality criteria, and creating
the right conditions for effective and efficient delegation and accountability, decision-making,
and operating the business.
2
,Information-based control framework – alignment
The reality of what a company does is what happens in de business domain.
Information & communication domain providing information for decision making, there is a
recording of transactions.
Data domain: records the data, discusses all the issues to recording data.
Information & communication technology domain: when you want to record data you need
information & communication technology.
Each cell needs to be in line with the other cells, if something happens in one cell than
something happens in at least one other cell.
Information-based control framework – control
To implement strategy we need control mechanisms. Strategy formation is seen as given.
Information-based control framework – criteria
3
, Information system
Why do we have/need information?
Decision making
Delegation and accountability
Operating the business
Quality criteria of information
Reliability = information is in line with reality
Relevance = information can be used for decision making
o Timeliness = information needs to be on time for the decision making
Efficiency = when you as a company provide information, the information must serve a
certain purpose. If the costs are higher than the benefits, than the information is not
important/efficient
4
Lecture 1
The invention of double-entry accounting
Luca Pacioli (1447-1517) was the first to publish detailed material on the double-entry
system of accounting.
Learning goals
You will be able to
1. Explain the components and functionalities of information systems in general and enterprise
resource planning systems in particular.
2. Identify, IT, data and information problems in an organization and propose control solutions
to solve these problems.
3. Make a mapping of the most relevant IT innovations that accountants will have to
understand and use now or in the near future.
4. Compare various types of data analytics and explain their relevance to accountants.
5. Apply the basics of data analytics to accounting, audit, and control problems.
Information disciplines
Example mini-case
An organization uses a chatbot for handling customer enquiries. This chatbot is part of the
organization’s customer relationship management (CRM) system. Which of the following statements
is incorrect?
A. The chatbot is an example of robotic process automation (RPA) that is combined with
artificial intelligence (AI)
B. The chatbot, when combined with other chatbots and other IT systems may mature into
business process automation (BPA)
C. The CRM system is an example of business process automation (BPA)
D. A robotic process automation (RPA) implementation often necessitates the involvement of IT
specialists.
Answer A is correct since a bot is an example of RPA. In combination with AI, this bot can have a
conversation with a human as is the goal of a chatbot (see Vaassen et al. 2022, Ch.4 p.33). Without AI
added, the chatbot would not be an example of RPA and the student would consider this answer
option incorrect.Answer B is correct since RPA is a subset and less mature application of BPA (see
Vaassen et al. 2022, Ch.4 p.33). Without a deep understanding of the concepts of RPA and BPA and a
1
,basic understanding of maturity models, the student would not consider RPA a simple application
within the wider concept of BPA and would therefore consider this answer option incorrect.Answer C
is correct since CRM systems are applications that automate business processes as in BPA. BPA is the
use of software for streamlining critical processes to reduce the complexity of managing multiple
tasks for one process within an organization. CRM systems then streamline the processes of
collecting, recording, and retrieving customer specific knowledge (see Vaassen et al. 2022, Ch.4
p.33). Without a deep understanding of the relationship between CRM and BPA and without grasping
the role of the chatbot in the case organization’s CRM system, the student would not consider the
CRM system an example of BPA and hence would consider the answer incorrect.Answer D is
incorrect since developing a bot for RPA does not need the involvement of the IT department. IT may
be needed when the bot must be installed on the user’s system and the user does not have the
required admin rights, but this is not an RPAspecific issue (see Vaassen et al., Ch.4 p. 31-32). Without
a deep understanding of the essential feature of RPA that it does not need the involvement of IT
specialists, the student would intuitively consider the answer correct.So, the correct answer option is
D.
Part 2: Information Systems
Part 3: Data Analytics
So, what’s getting ubiquitous and cheap? Data. And what is complementary to data? Analysis. So, my
recommendation is to take lots of courses about how to manipulate and analyze data: databases,
machine learning, econometrics, statistics, visualization, and so on.
An example
Your e-business is going well, but you have the feeling that certain products have lagging sales in
certain geographical regions whereas the same products in other regions perform extremely well. To
transform your gut feeling into hard facts you decide to collect data on the sales per product,
decomposed into geographical region. Indeed, there are big differences. To find explanations for
these differences you realize that you need to think about possible causes and choose which data to
collect on these causes. For example, differences in the average income per household or differences
in culture may be two important explanatory variables for differences in sales between geographical
regions. Fortunately, these data are publicly available, so your main task is to combine your company
data with the externally available data to gain some insight into the causes of the differences in sales
and take appropriate measures including adjusting your inventory policy or making changes to your
line of products for certain regions. The technical analysis is the data analytics part whereas the
transformation of these analyses into usable information is the business intelligence part.
Clip 1: Introduction to information systems and data analytics
1. Information systems
A system is an organized collection of connected components that form a more complex
whole, aimed at attaining certain goals.
An information system is an organized collection of software and hardware for inputting,
processing and storing data, and providing information aimed at the attainment of
organizational goals.
An accounting information system is an organized collection of software and hardware for
inputting, processing and sorting data on business events, aimed at providing information to
internal and external stakeholders that complies with specified quality criteria, and creating
the right conditions for effective and efficient delegation and accountability, decision-making,
and operating the business.
2
,Information-based control framework – alignment
The reality of what a company does is what happens in de business domain.
Information & communication domain providing information for decision making, there is a
recording of transactions.
Data domain: records the data, discusses all the issues to recording data.
Information & communication technology domain: when you want to record data you need
information & communication technology.
Each cell needs to be in line with the other cells, if something happens in one cell than
something happens in at least one other cell.
Information-based control framework – control
To implement strategy we need control mechanisms. Strategy formation is seen as given.
Information-based control framework – criteria
3
, Information system
Why do we have/need information?
Decision making
Delegation and accountability
Operating the business
Quality criteria of information
Reliability = information is in line with reality
Relevance = information can be used for decision making
o Timeliness = information needs to be on time for the decision making
Efficiency = when you as a company provide information, the information must serve a
certain purpose. If the costs are higher than the benefits, than the information is not
important/efficient
4
