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Case Study: Textbook Case Study: Case 9.1 Opening Case: Ducati Redesigns Its Operations This activity addresses the following module outcomes: MO1: Evaluate how omni-channel retailing is changing the nature of shopping for consumers. (CO3) MO2: Evaluate the connections between human resources information systems, business to employees’ communications, workforce productivity, and compliance with federal employment law. (CO2) Case Study: Ducati updated their business systems and the consumer’s ability to interact with them. In this module, you have learned about the importance of business systems and e-commerce to an organization. In this case study, you will focus on improvements and benefits made by Ducati. Write a 2-3 page paper not including the cover page or reference pages, that answers the questions from the textbook case study 9.1 - Ducati Redesigns Its Operations.  You must cite at least five independent scholarly sources to support your position, using appropriate APA format. Before you begin writing, please review the Case Study Guidelines for information. Please take note of the resource listed below as you select external scholarly sources for this assignment: Excelsior College Library Homepage Library Overview [VIDEO]: A brief introduction to the EC Library (Links to an external site.)  [Video file, 03:53 mins] Starting Your Research Guide (Links to an external site.) : It is highly recommended you utilize the Excelsior College Library to conduct your research. All students/researchers must be able to discern what is solid source/reference material and what is not. What is scholarly (sometimes referred to as peer-reviewed) (Links to an external site.) ? [Video file, 04:00 minutes] Scholarly sources can generally be identified by several features: Content (topic being discussed) Audience (for the layperson or someone familiar with the research on the subject?) Language (higher level language and discipline-specific terminology) Intent (case study, report of experimental results, etc.) Authorship (qualifications of author to write on the topic, usually an advanced degree with years of experience and research on the topic) Peer-reviewed (material is evaluated by experts and only published if it meets the discipline’s standards) References (other materials used in the research process are listed in a bibliography or footnotes) Listing (Check Ulrich’s in the Research Databases to see if the publication is listed as refereed.) Your assignment is due at the end of Module 5. Compose your work in a .doc or .docx file type using a word processor (such as Microsoft Word, etc.) and save it frequently to your computer. For those assignments that are not written essays and require uploading images or PowerPoint slides, please follow uploading guidelines provided by your instructor. Check your work and correct any spelling or grammatical errors. When you are ready to submit your work, click “Upload Submission.” Enter the submission title and then click on “Select a file to upload.” Browse your computer, and select your file. Click “Open” and verify the correct file name has appeared next to Submission File. Click on “Continue.” Confirm submission is correct and then click on “Accept Submission & Save.” Turnitin® This course has Turnitin® fully integrated into the course dropbox. This means that you should only submit your assignments to the dropbox below. Please do not submit your assignment directly to Turnitin.com . Once submitted, your assignment will be evaluated by Turnitin® automatically. You will be able to view an Originality Report within minutes of your first submission that will show how much of your work has been identified as similar to other sources such as websites, textbooks, or other student papers. Use your Originality Report as a learning tool to identify areas of your assignment that you may not have cited appropriately. You may resubmit your assignment through this dropbox as many times as you need to check to see if you have made improvements, until the due date of the assignment. However, once you have made your first submission, you will need to wait 24 hours after each subsequent submission to receive a new Originality Report. Plan accordingly as you draft your assignment. Once the due date has passed, your assignment submission will be considered final. Evaluation This assignment will be graded using the SBT Case Study Rubric located on the Course Rubrics page within the Start Here section of the course. Please review the rubric prior to beginning your work so that you ensure your submission meets the criteria in place for this assignment. This assignment is worth 10% of your final course grade. IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability Eleventh Edition Turban, Pollard, Wood Chapter 9 Functional Business Systems Learning Objectives (1 of 5) 2 Copyright ©2018 John Wiley & Sons, Inc. Business Management Systems and Functional Business Systems Two types of information systems support different areas or activities in an organization: Business Management Systems (BMS) designed to support planning and the implementation process across the entire organization Functional Business Systems (FBS) designed to improve the efficiency and performance of a specific functional area within the organization 3 Copyright ©2018 John Wiley & Sons, Inc. Business Management Systems Modules Business Management Systems (BMS) aid leadership teams by using technology to improve the organizational planning and implementation process. Typical modules in a BMS are: Definition of Organizational Mission Identification of Strengths Weakness Opportunities and Threats (SWOT Analysis) Establishing Goals and Measurable Objectives Defining Strategies, and Key Performance Indicators (KPIs) Articulation of Tactical or Action Plans – Assigning Responsibilities and Time Tables Monitoring and Reporting Progress and Performance 4 Copyright ©2018 John Wiley & Sons, Inc. Business Management Systems Overview Mission Set of outcomes an enterprise wants to achieve. Strategic Plan A document used to communicate the company’s goals and the actions needed to achieve them. Management Levels Planning occurs at three levels of the organization – strategic, managerial, and operational. Managers at each level operate with a different timeframe, which transitions from long-term (a few years) at the strategic level to “in the moment” (daily) at the operations level. 5 Copyright ©2018 John Wiley & Sons, Inc. Business Management Systems Management Levels Figure 9.3 Three organizational levels, their concerns, and strategic and tactical questions, planning, and control. 6 Copyright ©2018 John Wiley & Sons, Inc. 6 Functional Business Systems Traditional Functional Business Areas Finance and Accounting Production/Operations & Supply Chain Management Marketing and Sales Human Resources Management 7 Copyright ©2018 John Wiley & Sons, Inc. Cross Functional Coordination and Integration Departments or functions must be able to coordinate in the development of strategic plans and the performance of operations level actions. Integration makes it easier to identify problems or barriers to achieving objectives and develop solutions to those problems. Complex processes are managed more effectively through Standard Operating Procedures (SOP), a set of written instructions on how to perform a function or activity. 8 Copyright ©2018 John Wiley & Sons, Inc. Standard Operating Procedures: Data Properties The SOP documents three related data properties in company information systems: Data security the protection of data from malicious or unintentional corruption, unauthorized modification, theft, or natural causes such as floods. Data validity tests and evaluations used to detect and correct errors, for instance mistakes that might occur during data entry in fields, such as customer name and address. Data integrity the maintenance of data accuracy and validity over its life-cycle including the prevention of unintended modification or corruption. 9 Copyright ©2018 John Wiley & Sons, Inc. Transaction Processing Systems Transaction Processing information processing that is divided into distinct, undividable operations called transactions. used in the functional business systems of all areas. For example:  Production/Operations: The tracking of materials or component parts as they enter and exit a warehouse or manufacturing facility. Marketing and Sales: Management of sales orders and order fulfillment. Human Resources: Processing of payroll and employee records. Finance/Accounting: Processing of credits and debits to a customer’s checking account at a bank 10 Copyright ©2018 John Wiley & Sons, Inc. Transaction Processing Systems: The ACID Test Transaction processing systems (TPSs) collect, monitor, store, process and distribute transactional data according to certain criteria referred to as the ACID test. ACID Test Atomicity: If all steps in a transaction are not completed, then the entire transaction is cancelled. Consistency: Only operations that meet data validity standards are allowed. Isolation: Transactions must be isolated from each other. Durability: Backups by themselves do not provide durability. 11 Copyright ©2018 John Wiley & Sons, Inc. Transaction Processing Systems: Batch and Real Time Processing Transactions can be processed two ways: Batch: all events or transactions are processed together (in a batch) during scheduled times. Real Time: events or transactions are processed as soon as they occur. Increasingly, organizations today are employing Online Transactions Processing Systems (OTPS). Client server systems that allow transactions to run on multiple computers on a network, processing transactions in real time. 12 Copyright ©2018 John Wiley & Sons, Inc. Transaction Processing Systems: Batch and Real Time Processing Transactions can be processed two ways: Batch: all events or transactions are processed together (in a batch) during scheduled times. Real Time: events or transactions are processed as soon as they occur. Increasingly, organizations today are employing Online Transactions Processing Systems (OTPS). Client server systems that allow transactions to run on multiple computers on a network, processing transactions in real time. 13 Copyright ©2018 John Wiley & Sons, Inc. Solving Business Challenges at All Management Levels Figure 9.4 Information flows triggered by a transaction or event. 14 Copyright ©2018 John Wiley & Sons, Inc. 14 Solving Business Challenges at All Management Levels: Review Explain the purpose of Business Management Systems (BMS). Define what a standard operating procedure (SOP) is and give an example. Explain each component of the ACID test. Explain the differences between batch and online processing. Explain the relationship between Transaction Processing Systems (TPS) and Functional Business Systems (FBS). 15 Copyright ©2018 John Wiley & Sons, Inc. Suggested Answers: 1. Business Management Systems (BMS) are information systems designed to support planning and the implementation process across the entire organization. Functional Business Systems are information systems designed to improve the efficiency and performance of a specific functional area within the organization. 2. A SOP is a set of written instructions on how to perform a function or activity. SOPs provide the framework for complex processes to be managed more effectively.   Answers may vary. SOPs are written, for example, for handling purchase orders, order fulfillment, customer complaints, recruitment and hiring, emergency response, and disaster recovery.   3. The ACID test is short for atomicity, consistency, isolation, and durability: Atomicity: If all steps in a transaction are not completed, then the entire transaction is cancelled. Consistency: Only operations that meet data validity standards are allowed. For instance, systems that record checking accounts only allow unique check numbers for each transaction. Any operation that repeated a check number would fail to insure that the data in the database is correct and accurate. Network failures can also cause data consistency problems. Isolation: Transactions must be isolated from each other. For example, bank deposits must be isolated from a concurrent transaction involving a withdrawal from the same account. Only when the withdrawal transaction is completed successfully will the new account balance be reported. Durability: Backups by themselves do not provide durability. A system crash or other failure must not cause any loss of data in the database. Durability is achieved through separate transaction logs that can be used to re-create all transactions from a known checkpoint. Other ways include database mirrors that replicate the database on another server.   4. In online transaction processing (OLTP), events or transactions are processed as soon as they occur. Data are accessed at that time directly from the database, including updates.   With batch processing, like transactions are grouped together and the entire group is processed at a later time. This type of processing is more efficient and less costly, but results, including updates to the database, have to wait until the group is processed.   5. Transaction processing is information processing that is divided into distinct, undividable operations called transactions. While transaction processing certainly applies to the financial transactions that take place in a business (i.e. the data generated by a store cash register), transaction processing is used in the functional business systems of all areas. For example:   Production/Operations: The tracking of materials or component parts as they enter and exit a warehouse or manufacturing facility. 15 Learning Objectives (2 of 5) 16 Copyright ©2018 John Wiley & Sons, Inc. Production and Operations Management Production Operations Management Production/Operations is sometimes viewed in the larger context of supply chain management and supporting information systems. Production operations management and supply chain management information systems both play a critical role in managing these important functions. These systems facilitate coordination between different divisions within an organization or between the organization and its partners. 17 Copyright ©2018 John Wiley & Sons, Inc. Production and Operations Management: SCM Figure 9.5 Companies recognize that careful management of supply chain processes is critical for success in the highly competitive global economy 18 Copyright ©2018 John Wiley & Sons, Inc. 18 Transportation Management Systems Relied on to handle transportation planning including shipping consolidation, load and trip planning, route planning, fleet and driver planning, and carrier selection. Four trend factors contributing to TMS growth: Outdated transportation systems need to be upgraded or replaced Growth of intermodal transport TMS vendors add capabilities TMSs handle big data 19 Copyright ©2018 John Wiley & Sons, Inc. Logistics Management Inbound logistics refers to receiving. Outbound logistics refers to shipping. Inventory control systems are stock control or inventory management systems. Logistics management systems: Optimize transportation operations Coordinate with all suppliers Integrate supply chain technologies Synchronize inbound and outbound flows of materials or goods Manage distribution or transport networks 20 Copyright ©2018 John Wiley & Sons, Inc. Inventory Control Systems Inventory Control Systems Important because they minimize the total cost of inventory while maintaining optimal inventory levels. Inventory control systems minimize the following three cost categories: Inventory holding costs Ordering and shipping costs Cost of shortages Safety Stock Extra inventory used as a buffer to reduce the risk of stockouts. Also called buffer stock. Stockouts Inventory shortage arising from unexpected demand, delays in scheduled delivery, production delays or poor inventory management. 21 Copyright ©2018 John Wiley & Sons, Inc. Inventory Costs Figure 9.6 Inventory Control Systems help companies balance inventory ordering and carrying costs against the cost of inventory shortages. 22 Copyright ©2018 John Wiley & Sons, Inc. 22 Just-in-Time Inventory Management Systems JIT inventory management attempts to minimize holding costs by not taking possession of inventory until it is needed in the production process. Eliminates costs associated with carrying large inventories at any given point in time. Higher ordering costs because of more frequent orders. Higher risk of stockouts Must have cooperative production and/or supply partners to succeed 23 Copyright ©2018 John Wiley & Sons, Inc. Lean Manufacturing Systems Leverages suppliers delivering small lots on a daily or frequent basis, and production machines are not necessarily run at full capacity. Empowers workers so that production decisions can be made by those who are closest to the production processes. JIT success factors also apply to lean manufacturing. Requires quality, on-time inventory 24 Copyright ©2018 John Wiley & Sons, Inc. Quality Control Systems Stand-alone or part of an enterprise-wide total quality management (TQM) effort providing data about the quality of incoming materials or parts, as well as the quality of in-process semi-finished and finished products. Data collection by sensors or RFID and interpreted in real-time, or stored in a database for future analysis. 25 Copyright ©2018 John Wiley & Sons, Inc. Computer-integrated Manufacturing (CIM) Systems Custom-designed software that controls day-to-day shop floor activities Data-driven automation Benefits: It simplifies manufacturing technologies and techniques Automates as many of the manufacturing processes as possible, Integrates and coordinates all aspects of design, manufacturing, and related functions. 26 Copyright ©2018 John Wiley & Sons, Inc. Manufacturing Execution Systems (MESs) Systems Manage operations in shop factories, sometimes a few critical machines, sometimes all operations on the shop floor. Typically broader infrastructure than CIM. Based on standard reusable application software instead of customer-designed software. 27 Copyright ©2018 John Wiley & Sons, Inc. Manufacturing, Production, and Transportation Management Systems Review What is the function of supply chain management in an organization? What trends are contributing to the growing use of TMS? Define logistics management. What are the three categories of inventory costs? What are the objectives of JIT? Explain the difference between EOQ and JIT inventory models. What is the goal of lean manufacturing? What is CIM? 28 Copyright ©2018 John Wiley & Sons, Inc. Suggested Answers: Supply chain management coordinates all of the factors that contribute to customer value, including supplier relationships, logistics, inventory management across the supply chain, leading to order fulfillment.   2. Four factors contribute to the growth of TMS:   1. Outdated transportation systems need to be upgraded or replaced. Many systems were installed over 10 years ago—before tablet computers and mobile technologies had become widespread in business. Similar to most legacy (old) systems, they are inflexible, difficult to integrate with other newer systems, and expensive to maintain.   2. Growth of intermodal transport. Intermodal transportation refers to the use of two or more transport modes, such as container ship, air, truck, and rail, to move products from source to destination. Many more companies are shipping via intermodals and their older TMSs cannot support or deal with intermodal movement, according to Dwight Klappich, a research vice president for Gartner.   When brick-and-mortar manufacturers began selling online, for example, they learned that their existing TMSs are inadequate for handling the new line of business. Shippers that expand globally face similar challenges when they try to manage multiple rail, truck, and ocean shipments. Thus, there is a growing need for more robust TMSs to handle multidimensional shipping arrangements.   3. TMS vendors add capabilities. The basic functions performed by a TMS include gathering data on a load to be transported and matching those data to a historical routing guide. Then the TMS is used to manage the communication process with the various carriers. New feature-rich TMSs are able to access information services to help the shipper identify optimal routes given all current conditions. For example, the latest TMSs can interact directly with market-data benchmarking services. An automated, real-time market monitoring function saves shippers time, errors, and cuts costs significantly.   4. TMS handle big data. Transportation tends to generate a high volume of transactional data. Managing the data isn’t easy. TMS vendors are developing systems that make valuable use of the big data that are collected and stored. By drilling down into specific regions or focusing on particular market trends, for example, shippers can use their big data to make better decisions.   3. Logistics management deals with the coordination of several complex processes, namely ordering, purchasing or procurement, inbound logistics (receiving), and outbound logistics (shipping) activities.   Logistics management systems: Optimize transportation operations Coordinate with all suppliers Integrate supply chain technologies Synchronize inbound and outbound flows of materials or goods Manage distribution or transport networks   4. The three inventory cost categories are:   1. Inventory holding costs: warehousing costs (see Figure 9.10), security costs, insurance, losses due to theft or obsolescence, and inventory financing costs based on the interest rate.   2. Ordering and shipping costs: employees’ time spent ordering, receiving, or processing deliveries; and shipping fees.   3. Cost of shortages: production delays and missed sales revenues because of stockouts.   5. The main objective of JIT inventory management is to minimize holding costs by not taking possession of inventory until it is needed in the production process. With JIT, costs associated with carrying large inventories at any given point in time are eliminated. However, the tradeoff is higher ordering costs because of more frequent orders.   6. To minimize the sum of the three categories of inventory costs, the POM department has to decide when to order and how much to order. One inventory model that is used to answer both questions is the economic order quantity (EOQ) model. The EOQ model takes all costs into consideration. JIT inventory management attempts to minimize holding costs by not taking possession of inventory until it is needed in the production process. With JIT, costs associated with carrying large inventories at any given point in time are eliminated. However, the tradeoff is higher ordering costs because of more frequent orders.   Because of the higher risk of stockouts, JIT requires accurate and timely monitoring of materials’ usage in production.   7. In a lean manufacturing system, suppliers deliver small lots on a daily or frequent basis, and production machines are not necessarily run at full capacity. One objective of lean manufacturing is to eliminate waste of any kind; that is, to eliminate anything that does not add value to the final product. Holding inventory that is not needed very soon is seen as waste, which adds cost but not value. A second objective of lean manufacturing is to empower workers so that production decisions can be made by those who are closest to the production processes.   8. Computer integrated manufacturing (CIM) systems control day-to-day shop floor activities. In the early 1980s, companies invested greatly in CIM solutions even though they were complex, difficult to implement, and costly to maintain. They had required the integration of many products and vendors. Today’s CIM systems provide scheduling and real-time production monitoring and reporting. CIM data-driven automation affects all systems or subsystems within the manufacturing environment; design and development, production, marketing and sales, and field support and service. CIM systems can perform production monitoring, scheduling and planning, statistical process monitoring, quality analysis, personnel monitoring, order status reporting, and production lot tracking. 28 Learning Objectives (3 of 5) 29 Copyright ©2018 John Wiley & Sons, Inc. Sales and Marketing Systems  Digital advertising Social media monitoring and promotions Sales and customer support Automated ad placement and media buying Market research Intelligence gathering Distributing products and services to customers Order tracking Online and mobile order processing Online and mobile payment methods 30 Copyright ©2018 John Wiley & Sons, Inc. Sales and Marketing Systems and Subsystems Figure 9.7 Sales and Marketing systems and subsystems. 31 Copyright ©2018 John Wiley & Sons, Inc. 31 Data-Driven Marketing Data-driven, fact-based decision making relies on hot, current data, that has immediate impact on the business. Pay-per-click (PPC) advertising is one use of this type of data. FaceBook pushes ads to people based on their self-reported demographics 32 Copyright ©2018 John Wiley & Sons, Inc. Sales and Distribution Channels Ways to optimize product and service distribution. Example channels: Electronic channels. Mobile channels. Physical channels. 33 Copyright ©2018 John Wiley & Sons, Inc. Social Media Customer Service Monitoring Social Media Many companies now employ customer support representatives to monitor social media platforms. Offer support and solutions to customer problems Retains the customer’s loyalty and demonstrates the brand’s commitment to customer satisfaction. Companies stand to benefit by demonstrating their responsiveness to a wide audience of prospective customers 34 Copyright ©2018 John Wiley & Sons, Inc. Marketing Management Pricing of Products or Services Sales volumes as well as profits are determined by the prices of products or services. Salesperson Productivity Collected in the sales and marketing TPS and used to compare performance along several dimensions, such as time, product, region, and even the time of day. Profitability Analysis Profit contribution or profit margin of certain products and services derived from the cost accounting system. 35 Copyright ©2018 John Wiley & Sons, Inc. Sales and Marketing Systems Explain pay-per-click marketing. List two sales and distribution channels. Describe profitability analysis. How do some online businesses determine the prices they will charge to customers? 36 Copyright ©2018 John Wiley & Sons, Inc. Suggested Answers: 1. In pay-per-click (PPC) marketing, ads use data about the person to determine whether the ad should appear; i.e., online advertising that “appears” on the screens of consumers’ devices is based on the user’s location, behavior, interests, or demographic information. This capability creates opportunities for highly targeted advertising programs.   2. Answers may vary. They fall into three categories: electronic, mobile, and physical channels. A PPC advertising campaign with other online and offline advertising initiatives generally provides the best overall results. A dealer is another example of a physical channel.   3. In deciding on advertising and other marketing efforts, managers need to know the profit contribution or profit margin (profit margin 5 sale price minus cost of good) of certain products and services. Profitability metrics for products and services can be derived from the cost accounting system. 4. Online retailers can personalize the webpages shown to individual customers and display a combination of products and prices customized to entice that customer to make a purchase. The automated decisions about what products and prices to display to a customer are determined by a complex algorithm based on the customer’s previous purchases, web viewing history, activity on social media and product searches. 36 Learning Objectives (4 of 5) 37 Copyright ©2018 John Wiley & Sons, Inc. Accounting, Finance, and Regulatory Systems Income Statement Summarizes a company’s revenue and expenses for one quarter of a fiscal year or the entire fiscal year. Also known as a P&L (profit and loss) or earnings statement. Compliance Generally accepted accounting principles (GAAP) and the Financial Accounting Standards Board (FASB). Financial Misrepresentation Occurs when a company has intentionally deceived one or more other parties. 38 Copyright ©2018 John Wiley & Sons, Inc. XBRL Tagging eXtensible Business Reporting Language (XBRL) Reporting (disclosure) system designed by the SEC to eliminate document “search and find” difficulties and improve how investors find and use information. Designed to: Generate cleaner data, including written explanations and supporting notes. Produce more accurate data with fewer errors that require follow-up by regulators. Transmit data more quickly to regulators and meet deadlines. Increase the number of cases and amount of information that staffers can handle. 39 Copyright ©2018 John Wiley & Sons, Inc. Creation of XBRL Documents Figure 9.9 Overview of the creation of SBRL documents. 40 Copyright ©2018 John Wiley & Sons, Inc. 40 Fraud Prevention and Detection Why Fraud Occurs Fraud occurs because internal controls to prevent insider fraud – no matter how strong – will fail on occasion. Terms used for Insider fraud are internal, employment, or occupational fraud. Insider fraud is a term referring to a variety of criminal behaviors perpetrated by an organization’s employees or contractors. 41 Copyright ©2018 John Wiley & Sons, Inc. Fraud Risk Management Fraud Risk Management A system of policies and procedures to prevent and detect illegal acts committed by managers, employees, customers, or business partners against a company’s interests. Fraud Risk Factors A high level of trust in employees without sufficient oversight to verify that they are not stealing from the company. Relying on informal processes of control. A mindset (belief) that internal controls and fraud prevention systems are too expensive to implement. Assigning a wide range of duties for each employee, giving them opportunities to commit fraud. 42 Copyright ©2018 John Wiley & Sons, Inc. Internal Controls Strong Internal Controls to prevent fraud consist of: Segregation of duties Job rotation Oversight Safeguard of assets IT policies 43 Copyright ©2018 John Wiley & Sons, Inc. Auditing Systems Auditing Information Systems Fraud can be easy to commit and hard to detect. Information systems can provide a federated approach to auditing payroll, scheduling, accounts payable/receivable, and other electronic data. Federated systems are the combination of independent systems designed with unique functions. 44 Copyright ©2018 John Wiley & Sons, Inc. Financial Planning and Budgeting (1 of 2) Financial Planning and Budgeting Budgeting: allocation of financial resources among participants, activities, and projects. Includes the process of analyzing and selecting investments with the highest ROI for the organization or capital budgeting. Forecasting: estimating expenses, inventory, or other corporate assets to secure sufficient cash flow. 45 Copyright ©2018 John Wiley & Sons, Inc. Financial Planning and Budgeting (2 of 2) Financial Planning and Budgeting Financial Ratio Analysis: used by external parties when they decide whether to invest in an organization, extend credit, or buy it. Profitability Analysis: understanding the profitability of individual products or services, product lines, or the financial health of the entire organization. Cost Control: financial management of assets, through proper estimation, to assure financial health and cash flow. 46 Copyright ©2018 John Wiley & Sons, Inc. Accounting, Finance, and Regulatory Systems Review What is eXtensible Business Reporting Language (XBRL)? Why does the SEC mandate data disclosure, whereby data items are tagged to make them easily searchable? What is insider fraud? What are some other terms for insider fraud? What is fraud risk management? What four factors increase the risk of fraud? Explain how accounting ISs can help deter fraud. 47 Copyright ©2018 John Wiley & Sons, Inc. Suggested Answers: 1. XBRL: eXtensible Business Reporting Language XBRL is a language for the electronic communication of business data. Each item, such as cash or depreciation expense, is tagged with information about various attributes, such as calendar year, audited/unaudited status, currency, and so on. XBRLtagged data can be read by any software that includes an XBRL processor, which makes them easy to transfer among computers. Creating XBRL documents does not require XML computer programming. Software is available to tag data, submit tagged data to various recipients, and receive and analyze tagged data from other sources.   XBRL helps companies: Generate cleaner data, including written explanations and supporting notes. Produce more accurate data with fewer errors that require follow-up by regulators. Transmit data faster to regulators and meet deadlines. Increase the number of cases and amount of information that staffers can handle.   2. The SEC’s financial disclosure system is central to its mission of protecting investors and maintaining fair, orderly, and efficient markets. Since 1934 the SEC …