ACCOUNITNG INFORMATION SYSTEMS (AIS)

TOPIC : EVOLUTION OF INFORMATION SYSTEMS

DRS. JAMES SITUMORANG, Akt.,

MBA., MM., CA.
EVOLUTION OF INFORMATION SYSTEMS

Main business process in a company:

1. Accounting and Finance

2. Production/Operation

3. Sales and Marketing

4. Human Resources and Payroll

EVOLUTION OF INFORMATION SYSTEMS

Evolution of information Systems :

1. Manual System Model

2. Flat File System Model

3. Data Base System Model

4. Enterprise Resource Planning System Model

EVOLUTION OF INFORMATION SYSTEMS FLAT FILE MODEL

Accounting and Finance

Production/Operation

Sales and Marketing

Human Resources and Payroll

 Flat File Model Problems

1. Data Redundancy Problems

James Hall

2. Application Problems James

Situmorang
 Data Redundancy Problems

Data Storage - excessive storage costs of paper

documents and/or magnetic form
Data Updating - changes or additions must be
performed multiple times
Currency of Information - potential problem of
failing to update all affected files
Task-Data Dependency - users inability to
obtain additional information as needs change
Data Integration - separate files are difficult to
integrate across multiple users
 Application Problems

4 Applications needs more human resources

to maintain each application.
4 Applications each vendor of application has
different service level of support
4 Applications company should pay annual
maintenance fee for each application
4 Applications upgrade of application to the
new release in different time
EVOLUTION OF INFORMATION SYSTEMS DATA BASE MODEL

Accounting and Finance

Production/Operation

Sales and Marketing

Human Resources and Payroll

EVOLUTION OF INFORMATION SYSTEMS DATA BASE MODEL

Accounting and Finance D

A
T
A
B
A
Production/Operation S
E

M
G
M
Sales and Marketing T

S
Y
S
Human Resources and Payroll T
E
M
Data Base Model Problem

1. Data Redundancy Problems

2. Application Problems
 Application Problems
4 Applications needs more human resources
to maintain each application.
4 Applications each vendor of application has
different service level of support
4 Applications company should pay annual
maintenance fee for each application
4 Applications upgrade of application to the
new release in different time
EVOLUTION OF INFORMATION SYSTEMS ERP MODEL

Accounting and Finance

Production/Operation

Sales and Marketing

Human Resources and Payroll

EVOLUTION OF INFORMATION SYSTEMS ERP MODEL

Accounting and Finance

Production/Operation

Sales and Marketing

Human Resources and Payroll

 ERP Model Problems

1. Data Redundancy Problems

2. Application Problems

No one ERP can meet all companys requirements

Some people say ERP expensive
Some people say difficult to implement ERP
Some people say take long time to implement ERP
etc
How to Solve ERP System Model Problems?

1. Modify the ERP

2. Implement bolt-on software (third party product)

3. Work around