ORTEGA, SHANNEN S.

BSA 2-1

ACTIVITY 1 (Accounting Information System)

*maximum of 3 sentences per item*

1. What is an ERP system? How is it advantageous over the traditional flat file system?
- ERP or an enterprise resource planning system includes several module software that
are primarily used to integrate key processes of the organization such as the order entry,
manufacturing, procurement and accounts payable, payroll, and human resources. While the ERP
has integrated systems, the traditional flat file has separate computers for each function which
makes it difficult to connect with other systems in convenience as reference for relevant
information. Having an ERP system is important for efficient communication between other
existing systems for the information can be accessed directly without causing delay unlike the
traditional flat file system.

2.  What is an Online Transaction Processing (OLTP) feature of an ERP system? Describe
its database requirement and its function.
- The core applications or the Online Transaction Processing (OLTP) is a feature of the
ERP system that processes the day-to-day activities of the business. The OLTP includes sales
and distribution function which is responsible for handling order entry and delivery scheduling;
business planning function which involves demand forecast, production plan, and detailed
routing information for the stages of actual production process; and the shop floor control
designed for detailed production scheduling, dispatching, and job costing activities. Lastly, the
OLTP has logistics that has warehouse and inventory management significant for a timely
delivery for customers.

3. What is an Online Analytical Processing (OLAP) feature of an ERP system? Describe its
database requirement and its function.
- Online Analytical Processing or OLAP has functions including decision support,
modeling, information retrieval, ad hoc reporting/analysis, and what-if analysis. Some systems
have own modules customized for their specific industries. For decision support, it requires the
integration of in-house legacy systems and as for the business analysis applications, they are
considered central to the successful function as a data warehouse- the database mainly made for
convenient retrieval of information and ad hoc queries.
4. Distinguish two-tier architecture from a three-tier architecture. What does SAP Business
One use (two-tier or three-tier)?
- A two-tier model is a type of client-server model limited to Local Area Network (LAN)
applications wherein the server is in charge of handling the application and database duties while
the client computers are bound to present data to the user and pass the user input back to the
server. For the three-tier model that uses Wide Area Networks (WAN), the database and
application functions are separated- requiring client requests for two or more network
connections. Considering the architectures, the SAP Business One uses the two-tier model.

REFERENCE:
Accounting Information Systems, James A. Hall, 7th Edition