Information Technology Reference
In-Depth Information
revolutionize accounting systems, way before there were computers or
software? Pacioli explained this in 1494. This is the “true” system.
Luca Pacioli, a Franciscan friar wrote, Summa de Arith-
metica, Geometrica, Proportioni et Proportionalita in
1494. This topic included the first published description
of the method of keeping accounts that Venetian mer-
chants used during the Italian Renaissance, known as
the double-entry accounting system. Although Pacioli
codified rather than invented this system, he is widely
regarded as the “Father of Accounting.” The system he
published included most of the accounting cycle as we
know it today. He described the use of journals and
ledgers, and warned that a person should not go to
sleep at night until the debits equaled the credits! His
ledger had assets (including receivables and invento-
ries), liabilities, capital, income, and expense accounts.
He demonstrated year-end closing entries and pro-
posed that a trial balance be used to prove a balanced
ledger. Also, his treatise alludes to a wide range of top-
ics from accounting ethics to cost accounting.
—”Luca Pacioli.” Wikipedia, The Free Encyclopedia. Jan-
uary 24, 2007, Wikimedia Foundation, Inc.,
<http://en.wikipedia.org/>
Technology, of course, works hand in hand with the “true” system to
deliver expanded systems that are reorganizations of work and knowledge,
in simple to complex ways. Trade and retail systems have existed since
ancient times. E-commerce extends certain aspects — location, time,
search, etc. — in brilliant ways. This thread of thought — separating the
“true” system from its automation — is a key point. This distinction
is necessary and important because, when one talks of
information
, one should strategize about the “true” system as well as its
automation.
For those who have already dismissed “true” systems as nothing more
than “business requirements,” there is a word of caution. The business
requirements that most IT personnel deal with are business requirements
targeted at IT personnel. “True” systems are rarely discussed because of
domain issues, or because it is taken as well understood. Major strategic
strategy
