Accounting Information Systems 3rd Edition by Vernon Richardson Solution manual

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The use of IdeaStorm at Dell helped Dell get to know its customers and their needs. The primary activity in the value chain that directly addresses the use of CRM is marketing and sales activities, which identifies the needs and wants of their customers to help attract them to the firm’s products and buy them.
 
Using customer feedback to get to know their customers helps Dell get the right product at the right price to the right customer.It will potentially increase revenues and potentially reduce obsolete inventory by having the products that the customers need.
 
(Connect) Ingersoll Rand operates as a manufacturer in four segments: Air Conditioning Systems and Services, Climate Control Technologies, Industrial Technologies, and Security Technologies.  They installed an Oracle enterprise system, a supply chain system and a customer relationship management system.  They boast the following results:
 
Decreased direct product costs by 11%
Increased labor productivity by 16%
Increased inventory turns by four times
Decreased order processing time by 90% and decreased implementation time by 40%
Ensured minimal business disruption
Streamlined three customer centers to one
 
Please take each of these results and explain which of these systems most directly affected those results.
 
Decreased direct product costs by 11% - this likely came about by efficiencies gained by the supply chain system.
Increased labor productivity by 16% - this likely came about by efficiencies gained by the supply chain system.
Increased inventory turns by four times - this likely came about by efficiencies gained by a combination of the supply chain system and customer relationship management (by having the right product to the right customer)
Decreased order processing time by 90% and decreased implementation time by 40% (this was likely caused by a combination of the implementation of supply chain management, customer relationship management and enterprise systems).
Ensured minimal business disruption - uncertain how this is tied to the implementation of supply chain management, customer relationship management and enterprise systems
Streamlined three customer centers to one - uncertain how this is tied to the implementation of supply chain management, customer relationship management and enterprise systems
 
 
(Connect) Using the explanations of each IT strategic role below, suggest the appropriate IT strategic role (automate, informate or transform) for the following types of IT investments.  Depending on your interpretation, it is possible that some of the IT investments could include two IT strategic roles.
 
Digital Health Records - automate
Google Maps that recommend hotel and restaurants along a trip path - transform
Customer Relationship Management Software - informate
Supply Chain Management Software - informate
Enterprise Systems - automate
Airlines Flight Reservations Systems - informate
PayPal - transform
Amazon.com Product Recommendation on your homepage - transform
eBay – informate or transform
Course and Teacher Evaluation conducted online for the first time (instead of on paper) – automate
Payroll Produced by Computer - automate
 
 
(Connect) Information systems have an impact on financial results.  Using Figure 1-8 as a guide, which system is most likely to impact the following line items on an income statement?  The systems to consider are enterprise systems, supply chain systems and customer relationship management systems.
Revenues
Cost of Goods Sold
Sales, General and Administrative Expenses
Interest Expense
Net Income
 
 
Income Statement ItemSystem
RevenuesCustomer relationship management system
Cost of Goods SoldSupply chain system
Sales, General and Administrative ExpensesEnterprise system
Interest ExpenseSupply chain system
Net IncomeAll of these
 
 
(Connect) Accountants have four potential roles in accounting information systems: user, manager, designer and evaluator.  Match the specific accounting role to the activity performed.
Controller meeting with the systems analyst to ensure accounting information system is able to accurately capture information to meet regulatory requirements -- Designer
Cost accountant gathering data for factory overhead allocations from the accounting information system -- User
IT auditor testing the system to assess the internal controls of the accounting information system -- Evaluator
CFO plans staffing to effectively direct and lead accounting information system – Manager