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Chapter 3: AIS Enhancements Through Information Technology and Networks
Chapter 3: AIS Enhancements Through Information Technology and Networks
Chapter 3: AIS
Enhancements Through
Information Technology and
Networks
Slides Authored by Somnath
Florida Atlantic University
Bhattacharya, Ph.D.
IT Components of Interest
to Accountants
Figure 3-1
Computerized
Collecting and processing
large volumes of routine
transactions
Storing large quantities of
data and information
Monitoring and controlling
continuous processes
Answering specific inquiries
based on stored data
Preparing complex analyses
and extensive reports
Helping gather data and
understanding the
relationships between all
types of decisions
Limitations of Infoages
Legacy AIS
Large portion of personnel time and effort spent on
systems maintenance
Little time & effort for value-added services
Little flexibility to changing business conditions
Types of Network
Architectures
Wide-Area Networks
Formed among computers and interconnected devices that are geographically
distant from one another
Local-Area Networks
A type of distributed network created
when two or more linked computers are
grouped within a limited geographical
area
Centralized WANs - I
Concentrates all application processing at one
geographical location
Consists essentially of one (or a cluster of) central
mainframe computer(s) and one or more physically
remote terminals
Typically all hardware, software, and data processing
personnel are located at corporate headquarters
Advantages include:
Centralized WANs - II
Best suited for
Examples include
Drawbacks include
Inflexibility
Expensive and complicated software needed
Vulnerable to disasters as a result of complete dependence on
central computer
Not user-friendly
Distributed WANs - I
This links fully functional computers in
different geographical locations.
Each remote site processes its own
applications. However, users may not have
easy access to centralized data or be able to
transmit data and information rapidly.
Computers may be interconnected by data
communications hardware and software to
other remote sites and to a central computer
facility to form an enterprise-wide network.
Distributed WANs - II
Distributed databases are useful when:
Large volumes of data need to be processed at remote locations
Managers and employees need very fast access to data on a
frequent basis
Benefits of Distributed
WANs
Can be responsive to diverse needs of users
Enable network facilities to be used efficiently
since processing jobs can be routed to unused
computer systems in the network
Are robust against individual computer failures
Flexible and adaptable to change
Best suited for firms with:
Drawbacks of Distributed
WANs
Difficulty in maintaining adequate control and
security
Each distributed processing location needs its own
set of controls and security measures
LANs
A LAN may be connected to other LANs
and/or WANs via hardware devices
known as gateways or bridges
At the heart of a LAN is the workstation
Microcomputer-based workstation
Traditional workstation
Super workstation
Peer-to-Peer LANs
In smaller LANs, every workstation
functions as both a client and a server
This allows all users to share data and files on
all workstations
Called peer-to-peer network since no
workstations are dedicated to perform only
server functions
Compared to a server network, peer-to-peer
networks are less costly, easier to install, and
compare well against server networks of
similar size
Number expected to significantly increase in
the near future
Server Networks
May interconnect hundreds of workstations
More difficult to manage and interpret than peer-to-peer
networks
Provide greater security than peer-to-peer networks
At least one workstation is dedicated to performing
specific server tasks
Examples include:
Servers
Database servers
Print servers
Communications servers
Transaction processing servers
More Networks
Examples of pre-developed network
configurations resident in Network Interface
Cards include: Ethernet, Token Ring, and ARCnet
The International Standards Organization has
issued the Open Systems Interconnection (OSI)
model
Open Systems Architecture
Seamless exchange of data, files, and software
between LANs and WANs built with multiple vendors
hardware, software, and networking components
Client/Server Networks
This model splits data processing
between a user workstation (client) and
one or more servers
Majority of servers are dedicated
database servers, thereby enabling client
to share data and files, conduct database
searches, and update the database
One of the fastest growing segments of IT
Cooperative Client/
Server Computing
Most commonly implemented mode of
client/server architecture
Facilitates the optimal sharing of computer
resources since the client(s) and server(s)
jointly process the data
Clients typically employ Graphical User
Interfaces (GUIs)
Data-processing locale is transparent to
the user
Network Topologies
The STAR and RING topologies apply
to both distributed WANs and LANs
The BUS topology applies only to LANs
All three found in client/server
networks
All three may be combined to form
hybrid configurations
Figure 3-3a
Figure 3-3b
Figure 3-3c
Enterprise-wide Processing
and Data Systems
Enterprise-wide on-line transaction processing
systems collect and process mission-critical
accounting and operational applications
Enterprise Resource Planning Systems (ERP) such as
SAP R/3 overcome the limitations of legacy
applications
Firms typically develop two types of On-line
Analytical Processing (OLAP) systems that
supplement ERP or legacy systems
A firm can model the relevant aspects of business events
contained within the business processes allowing for the use
of relational database-related query language commands
Firms can create a data mart or data warehouse to generate
predefined reports for executives and other managers
Specialized Inter-organizational
Systems/Networks
Intranets
Extranets
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