AIS Assignment 1

Mirza Mushahid Baig
Roll number 22-11296

Business 410 section A
Assignment 1
Q-1: Using below diagram, discuss the differences between internal and external
users of information and their needs and demands on an information system?
People who are within the organization and are directly involved in its functions are internal
users. For example, owner, managers and employees etc.
External users of information are people outside the organization but are attached to it.
Example stakeholders i.e. customers, investors, banks etc.
By looking at the pyramid we can see that there are many levels within organisation and
information can flow both in horizontal and vertical (upward and downwards) direction. It
means information is exchanged at same levels i.e. Transactions details or other related
activities. It also explains exchange of information on different levels upwards and downwards.
Mainly instructions are given from upwards to downwards and information is shared from
downwards to upwards.
The users need and demand information and data to operate and work on information system.
So, the users can update about any thing related to business
Q-2: List the limitations of Flat-file model of AIS? Explain any two limitations
of Flat-File Model?
Definition
 The flat-file model describes an environment in which individual data files are not
related to other files. End users in this environment own their data files rather than
share them with other users
Limitation of flat file model :
The same data is stored at multiple places.
1. Data updating risks at multiple places. The problem with the flat file model here is that
data has to be stored multiple times. Every department that requires the data must
store them in their user environment. Whereas, efficient data storage must store data
only once. Storing data in multiple places means more costs to the organization.
2. Outdated information risks.
3. High Data redundancy. Because data is stored at multiple places at same time within
same database it creates redundancy.
4. Data inconsistency. Because same type of data is stored in different tables at same time
it creates data inconsistency.
5. Task-data dependency. If a user needs more information to make an informed decision
in a flat-file model, he or she must get that information independent from other
departments. Users in the various departments or functions cannot depend on each
other for data. For example, if the accounting department needs data of customers
based on geography, it has to source the information itself. Whereas, this data is readily
available in the marketing department. This will result in a wastage of time, more data
redundancy, and makes the costs of data management higher
6. Low integration. Flat file model is unable to link different system at large scale. So
integration level is low. This means system is unable to process duplicate and multiple
data at same time
Q-2: List 3 benefits of Database model of AIS?
Benefits
 Grouping of data into a common shared database for organizational users. In a

database, the users of the database can share the data among themselves. There are
various levels of authorisation to access the data, and consequently the data can only be
shared based on the correct authorisation protocols being followed. Many remote users
can also access the database simultaneously and share the data between themselves.
 Data available to the entity and their right to access it. When we build the data base
model each entity has attributes and information is stored within every aspect. Data can
be linked and accessed very easily in this manner.
 Each data element is stored only once, thereby eliminating data redundancy, reducing
data collection and storage costs. In data base if different entities relates to same
attributes and thus same data. It can be linked and don’t need to be stored at every
time thus it reduces time amd enhances efficiency.
Q-2: List the benefits and drawbacks of ERP model of AIS?
Benefits
 By using ERP we can avoid repetitive manual recording process thus it increases
efficiency and saves time and cost.
 In ERP we have a single and true source of information thus the production of financial
statements and reports is very fast.
Drawbacks
 ERP is costly and it is difficult for SME’s to cover such costs. In order to acquire license
the company have to pay 5 figure amount.
 ERP software require training before use. As the software provides solution to complex
tasks, operating the software itself is Challenging.
Q-5 : What is Manual process model of AIS?
Manual processing means the process of transactions that require human intervention. The
manual process model is the oldest and most traditional form of accounting systems. Manual
systems constitute the physical events, resources, and personnel that characterize many
business processes. This includes such tasks as order-taking, warehousing materials,
manufacturing goods for sale, shipping goods to customers, and placing orders with vendors.
Traditionally, this model also includes the physical task of record keeping. Often, manual record
keeping is used to teach the principles of accounting to business students. However, this
approach is simply a training aid. Manual records are never used in practice today.

AIS Assignment 1

Uploaded by

AIS Assignment 1

Uploaded by

Mirza Mushahid Baig

Roll number 22-11296

Q-2: List 3 benefits of Database model of AIS?

 Grouping of data into a common shared database for organizational users. In a

Q-2: List the benefits and drawbacks of ERP model of AIS?

Q-5 : What is Manual process model of AIS?

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