9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
System Diagram Technique-Based Development of an Inter-Enterprise AIS in the
Global Environment and Course Learning
Submit to IJBE-International Journal of Business and Economics; ISSN 1543-1614
Submit to publish in Conference Proceedings
Submit for presentation at the 9th Global Conference on Business & Economics
October 16-17, 2009, Cambridge, UK
Manuscript # GCBE 2519
Supattra Boonmak
Department of Accountancy
Faculty of Commerce and Accountancy
Chulalongkorn University
Bangkok, 10330
Thailand
supboon@ksc.th.com
Acknowledgements
The author thanks Professor Dr Atul Gupta, Professor Joy Grant, the double blind peer
reviewers, the Editor and also thanks Stephen Lorriman for help editing.
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
System Diagram Technique-Based Development of an Inter-Enterprise AIS in the
Global Environment and Course Learning
Supattra Boonmak
Chulalongkorn University, Bangkok, 10330, Thailand,
ABSTRACT
This research investigates the uses of SD technique to develop SD and AIS. It also
examines the SD technique learnt by students in an accounting information system course.
The SD techniques used in this study are system flowchart, data flow diagram, entityrelationship diagram, resource-event-agent, process maps, and Unified Modeling Language.
The results include business process analysis of data captured from entrepreneurs, SD
technique used to develop SD and inter-enterprise AIS in the global environment, and the
summarization of courses providing SD techniques employed by students. Respondents are
business enterprises and students. The findings in this research also provide a descriptive
analysis and Pearson chi-square test. The results reveal that SFC and DFD are most popular
for master’s and bachelor’s degree students of accounting while E-RD, REA, and UML are
important for master’s and bachelor’s degree students of AIS. This study is useful to
entrepreneurs and supports students in their learning.
Keywords : system diagram technique; system flowcharts; data flow diagrams; E-R diagram;
REA model; process maps; UML; system diagram; Inter-enterprise AIS;
course learning.
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System Diagram Technique-Based Development of an Inter-Enterprise AIS in the
Global Environment and Course Learning
Supattra Boonmak
Chulalongkorn University, Bangkok, 10330, Thailand,
ABSTRACT
This research investigates the uses of SD technique to develop SD and AIS. It also
examines the SD technique learnt by students in an accounting information system course.
The SD techniques used in this study are system flowchart, data flow diagram, entityrelationship diagram, resource-event-agent, process maps, and Unified Modeling Language.
The results include business process analysis of data captured from entrepreneurs, SD
technique used to develop SD and inter-enterprise AIS in the global environment, and the
summarization of courses providing SD techniques employed by students. Respondents are
business enterprises and students. The findings in this research also provide a descriptive
analysis and Pearson chi-square test. The results reveal that SFC and DFD are most popular
for master’s and bachelor’s degree students of accounting while E-RD, REA, and UML are
important for master’s and bachelor’s degree students of AIS. This study is useful to
entrepreneurs and supports students in their learning.
Keywords : system diagram technique; system flowcharts; data flow diagrams; E-R diagram;
REA model; process maps; UML; system diagram; Inter-enterprise AIS;
course learning.
INTRODUCTION
System Diagrams (SD) are an integral component of system documentation and have
become increasingly important in response to heightened awareness surrounding process
improvement and documentation as well as compliance concerns with legislation such as the
Sarbanes-Oxley Act (Bradford et al.2007). In this study, I make further developments on my
prior research paper entitled “REA Model-AN Analysis and Development of an InterEnterprise Accounting Information System in the Global Environment.” The prior research of
Marianne Bradford, Sandra B. Richtermeyer, and Douglas F. Roberts’
“System
Diagramming Techniques: An Analysis of Methods Used in Accounting Education and
Practice” (2007) is also used as a basis in this study. Thus, the major purposes of this study
are using system diagram techniques to: (1) prepare system diagrams (SD) and develop
accounting information systems (AIS); (2) investigate how students learn in accounting and
accounting information system major courses. System diagram techniques used in this study
include: system flowcharts (SFC), data flow diagrams (DFD), entity-relationship (E-R)
diagrams, resource-event-agent (REA) models, and Unified Modeling Language (UML).
These various system diagram techniques are taken from many well-established accounting
information system and information system textbooks, including Enterprise Information
Systems (2005) by Dunn, Cherrington and Hollander; Information System Development
(2006), 4th edition by Avison and Fitzgerald; Accounting Information Systems (2008), 10th
edition by Bagranoff, Simkin and Strand; Accounting Information Systems (2008) by Hurt;
Accounting Information Systems (2008) by Hall; Accounting Information Systems (2008), 7th
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edition by Gelinas, and Dull; Accounting Information Systems (2009), 11th edition by
Romney and Steinbart; Accounting Information Systems (2006) by Rama and Jones.
Table 1 presents a summary of the SD techniques used in many AIS textbooks. In my
analysis, I found that the SD techniques of SFC, DFD, ERD, and REA, are discussed in many
AIS textbooks by many different authors whereas PM and UML are included in only a few. I
also use PM in this research although it is not used by many business firms.
Data included in this study are captured from two sources, namely (1) business
processes from 40 business firms whose enterprises do business on a global level; (2) 200
graduate and undergraduate students from the two majors of Accounting and Accounting
Information Systems from a few Thai universities.
The study focuses on the development of an AIS with data captured from business
processes. System diagram techniques are used to prepare system diagrams showing the AIS
developed. The results are useful for students, accounting educators, business specialists and
also accounting professionals as these diagrams present the information flow among business
processes across inter-enterprises in the global environment. So students, accounting
educators, business specialists and accountant professionals can make insights into SD and
the development of an existing AIS, its strengths, weaknesses and control systems. The results
also are beneficial for students as they can learn how to develop SD and AIS in their course
studies.
SYSTEM DIAGRAM TECHNIQUES
In the work of Bradford et al. (2007), SD can play a vital role in documentation by
graphically depicting internal controls, data flow, and information flow related to key
processes that support organization. System diagrams (SD) are an integral component of
system documentation and have become increasingly important in response to the heightened
awareness surrounding process improvement and documentation as well as compliance
concerns with legislation such as the Sarbanes-Oxley ACT. SD is also an important concept
in accounting information systems. This study examines SD commonly included in
accounting curricula and compares these methods with those used by accounting practitioners.
The SDs included in the study are system flowcharts, entity-relationship diagrams, data flow
diagrams, resource-event-agent models, process maps, and Unified Modeling Language.
In this study, students develop a business process diagram to understand the business
situation and create database queries to detect billing discrepancies and manage costs for
corporate cell phone service (Borthick and Jones 2007). This paper describes a unique
learning outcome process for the assessment of an undergraduate course in AIS. The author
first frames the importance of assessment for motivating faculties to foster “continuous
improvement” in student learning (Diagle et al.2007). Although the databases are supplied in
the form of Microsoft Access files, the simulation can be worked with any database query
tool. The simulation helps learners develop their capabilities for designing audit objectives
and procedures for testing system development and for querying databases (Borthick and
Bowen 2008). The simulation, workable with a database query tool or audit software, is
appropriate for students with querying proficiency and audit procedure design capability
(Borthick and Curtis 2008).
This data model, the process model, the role-process links, and the reports were used
to estimate the front-end costs and cost changes associated with the new system. The process
model indicated that the sales call process would change. Separate data diagrams were
constructed for building into a single diagram. Process diagrams specified activities and
linked them to the data. The process model output of the system analysis did point out certain
improvements in internal efficiencies. System analysis proved to be useful in identifying these
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maintenance costs, since the consumption of paper and wireless services could be better
estimated once the data and process models were created (Bajaj, Bradley, and Cravens 2008).
The rules established by Elmasri and Navithe (2003) were followed to translate the
generalization-specification hierarchies in the semantic model to the traditional relation
schema. Figure 3 shows the Extended Entity-Relation (EER) semantic model of the database
accounting system. Using this EER model, objects and relational schemas were then
constructed, each in third normal form (3NF) (Bowen and Debreceny 2005). Students develop
and use database queries to analyze the possible causes of potential budget overrun. Students
query a Microsoft Access database with tables showing sales of PCs (Borthick and Jones
2005). Appendix B provides an example of the fill-in-the-blank assignment and suggested
flowchart solution. Similarly, the instructor can also expand the concepts in this role-play by
creating a data flow diagram (DFD) or a resource-event-agent (REA) assignment (Hayes and
Reynolds 2005). Systems issues include organizational approaches to system implementation
and business process analysis. This case is appropriate for use in either undergraduate or
graduate Accounting Information Systems courses (Bradford and Fisher 2005)
This paper examines the development and use of the EDGAR Extraction System
(EES), a customized automated system that extracts relevant information about employee
stock options from financial statement disclosure notes on the EDGAR database (Conlon and
Grant 2006). Present accounting data models such as the REA model merely focus on the
modeling of static accounting phenomena. Therefore, new object-oriented models have been
presented (Verdaasdonk 2003). Historically, accounting education has focused on traditional
SD methods such as systems flowcharts and DFDs. In the more recent past, various types of
SD methods, such as process maps, REA models and UML, have emerged in practice, but
these techniques have been slow to find their way into accounting curricula (Bradford et
al.2007). Accountants can use many different types of logic charts to trace the flow of
accounting data through an AIS. System flowcharts and DFDs are the two most popular
techniques. System flowcharts usually focus on the electronic flows of data in computerized
AISs. Other examples of documentation aids include process maps, data flow diagrams,
program flowcharts and decision tables (Bagranoff et al.2008).
Based on studies of AIS and other textbooks with reviews of some researches, this
study is based on the following types of SD Techniques: (1) system flowcharts (SFC); (2)
data flow diagrams (DFD); (3) entity-relationship (E-R) diagrams; (4) REA models; (5)
process maps; (6) United Modeling Language (UML) diagrams. The following is a
description of each of the SD techniques included in this study.
System flowcharts
The SFC documents the flow of data through a company’s computerized system. It
identifies sources of data, the places where data are temporarily stored, and the outputs
through which processed data appear (Bagranoff et al.2007). SFC represents a system that
includes both manual and computer processes and portrays the computer aspects of a system.
It depicts the relationships between input (source) data, transaction files, computer programs,
master files, and output reports produced by the system. SFC also describes the type of media
being used in the system such as magnetic tape, magnetic disk, and terminal (Hall 2008),
giving the user a “big picture” look at an information system. SFC combines all of these
resources with their related business processes (Hurt 2008). It depicts the sequence of
activities performed as the business events flow through the process (Gelinas and Dull 2008).
System flowcharts are used to graphically document an information system (Dunn et al.
2005). In sum, SFCs are an important systems analysis, design, and evaluation tool (Romney
and Steinbart 2009).
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Data Flow Diagram
DFDs are used primarily in the system development process as a tool for analyzing
an existing system or planning and creating a new system. Documented data flows are
important for understanding an AIS (Bagranoff et al.2007). Both DFD and SFC are useful in
the design and implementation of AIS but an SFC typically provides more detail than a DFD
(Hurt 2008). A DFD is a graphical representation of a system. It depicts a system’s
components, the data flows among the components, and the sources, destination, and storage
of data (Gelinas and Dull 2008). Data flow diagramming symbols have a variety of system
analysis purposes, including graphically displaying the logical flow of data through a process
(Dunn et al.2005). A DFD graphically describes the flow of data within an organization
(Romney and Steinbart 2009). The DFD uses symbols to represent the entities, processes, data
flows, and data stores that pertain to a system (Hall 2008).
Entity-Relationship (E-R) Diagrams
In a laboratory experiment, participants composed and executed queries in SQL for an
Oracle database. All participants had received training in developing SQL queries and
received a set of instructions containing the scenario, the details of tasks to be performed, the
data dictionary, and the entity-relationship diagram (Ashkanasy et al.2007). Database
designers use a graphical documentation technique called the entity-relationship (E-R)
diagram to depict the entities and their direct relationships (Bagranoff et al. 2007). A data
model depicts user requirements for data stored in a database. The most popular data
modeling approach is E-R modeling, in which the designer identifies the entities’
relationships (Gelinas and Dull 2008). E-R modeling has been the most commonly used tool
for presenting REA business process level patterns (Dunn et al.2005) and is a graphical
technique for portraying a database schema. These diagrams can be used to represent the
contents of any kind of database, showing the various entities being modeled and the
important relationships among them (Romney and Steinbart 2009). E-R diagrams depict the
user’s data model. Entities in E-R diagrams are of one class while entities in an REA diagram
are divided into three classes (resources, events, and agents) (Hall 2008).
Resource-Event-Agent
This study follows the REA model, an innovative approach to teaching information
systems, developed by Bill McCarthy of Michigan State University. The REA model is the
framework for analyzing the relationships among an organization’s critical resources, events,
and agents. Students will benefit from this theoretical foundation for enterprise systems
because it provides a glimpse of what is possible in enterprise systems yet also permits
comparison to existing systems. This study encourages students to apply the object patterns
(things and relationships between them) and script patterns (logical sequences of events) that
make up the REA enterprise ontology to help them understand enterprises and transaction
cycles/business processes (Dunn et al. 2005). McCarthy proposed a generalized model for
accounting systems after analyzing many accounting transactions and identifying the
common features of the transactions. McCarthy and Geerts have further developed
the constructs of the original model to form an enterprise domain ontology. This ontology
is called the REA Enterprise Ontology because three of the principle constructs are
resources, events, and agents. Entity-relationship modeling has been the most commonly
used tool for presenting REA business process level patterns. (Dunn et al. 2005).
Church, and Smith (2007) propose in “An extension of the REA framework to support
balance scorecard information requirements” extensions to the REA framework to encompass
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the information requirements of the balanced scorecard and other management systems that
incorporate non-financial measures. The REA conceptual accounting framework was
designed to describe the information architecture related to an organization’s economic
activity (e.g., McCarthy 1982; Dunn et al. 2005). Gerard (2005) uses the REA pattern as an
example of a domain-specific pattern that can be encoded as a knowledge structure for the
conceptual modeling of AIS, and tests its effects on the accuracy of conceptual modeling in a
familiar business setting. Results suggest it is insufficient to know only a conceptual modeling
notation because structured knowledge of domain-specific patterns reduces design errors.
Verdaasdonk, (2003) suggests in “An object-oriented model for Ex Ante accounting
information” that present accounting data models such as the REA model merely focus on the
modeling of static accounting phenomena. A new object-oriented model is presented that
enables the use of ex ante accounting data for this purpose. Geerts and McCarthy (2006) put
forward the REA enterprise model as a widely accepted framework for the design of the
accountability infrastructure of enterprise information systems. Several techniques are
available for documenting business processes. This study follows the REA model, an
innovative approach to teaching information systems, developed by Bill McCarthy of
Michigan State University. The REA model is the framework for analyzing the relationships
among an organization’s critical resources, events, and agents. This study encourages students
to apply the object patterns (things and relationships between them) and script patterns
(logical sequences of events) that make up the REA enterprise ontology to help them
understand enterprises and transaction cycles/business processes (Dunn et al. 2005).
Process Maps
In the work of Bradford et al. (2007), process maps is an SD technique developed by
General Electric in the 1980s and used by many organizations to document, analyze,
streamline, and redesign their business activities (Hunt 1996). Process maps are often used to
show how work is currently accomplished in an organization and how it could be improved
(Bradford et al. 2001). They show the specific combination of functions, steps, inputs, and
outputs that an organization employs to provide value to its customers (Damelio 1996).
Process maps document business processes in easy-to-follow logic diagrams. Internal and
external auditors can use process maps to help them see how a department or division
operates, assist them in documenting what they have learned, help them identify internal
control weaknesses or problems in existing operations, be used as training aids, and help them
study business processes and redesign them for greater productivity. Accountants and
managers can use this tool to help them describe current processes to others.
Unified-Modeling Language
In this study, research also focuses on the UML activity diagram which plays the role of
a map in understanding business processes by showing the sequence of activities in the
process. A business process is a sequence of activities performed by a business for acquiring,
producing, and selling goods and services. Accountants and others have an interest in
modeling business processes and several models have been developed. Accountants find it
useful to view a company’s business processes in terms of its transaction cycles, which group
related events that typically occur in a particular sequence. Events are activities that happen at
a particular point in time (Rama/Jones 2006). UML is a language used for specifying,
visualizing, constructing, and documenting an information system. It was developed as a tool
for object-oriented analysis and designed by Grady Booch, Jim Rumbaugh, and Ivar
Jacobson. This language provides an inventory of diagrams for documenting business
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processes and information systems (Rama/Jones 2006). This study also organizes activity
diagrams into two types: the overview diagram and the detailed diagram. The overview
diagram presents a high-level view of business processes by documenting the key events, the
sequence of these events, and the information flows among these events while the detailed
diagram provides a more detailed representation of the activities associated with one or two
events shown on the overview diagram. The researcher organizes activity diagrams into
overview and detailed diagrams as this approach has been found to be useful in documenting
and analyzing internal control. In this study, the focus is placed on both of them. UML can be
used to model AIS.
Table 2 presents the results from analysis of SD techniques used to develop SD and
AIS. It is found that SFC mostly shows information processes and operational processes while
DFD presents dataflow and system processes. ERD is used to portray DB schema and
cardinality among entities while REA classifies events into resources, events, and agents. The
process map shows a combination of functions, steps, inputs and outputs. Finally, UML
shows the activity diagram, the sequence of steps in a business process, and the UML activity
diagram. See Table 2.
Research Study in Systems Diagram Techniques
In preparing this study, the researcher used an SD-based technique for two parts of the
study. First, a business process analysis of data captured from the researcher’s prior research
was performed which was used to prepare a system diagram and develop an inter-enterprise
AIS in the global environment. This study follows the workflow table showing the conceptual
foundation of events and activities composed in a company’s business processes, as outlined
in Table 3a (Rama and Jones 2006). Then, the workflow table showing the analysis of the
business process of data captured from business enterprises. Table 3b was prepared following
the conceptual foundation of events and activities in Table 3a. Table 3b focuses on the
events, activities, actors, documents, tables and files in the trading systems. In designing the
workflow table of an inter-enterprise accounting information system in the global
environment in Table 3b, the researcher captured all the data and information from prior
research, literature, journals and articles, etc. This model was used as the pretest for the
business enterprises. The completed model had, then, been established and was used in this
study. 100 completed models were attached via e-mail to 100 entrepreneurs and 40 models
were returned.
Table 3 presents an analysis of business processes from the data captured from
business enterprises. In this analysis, the data captured from 40 entrepreneurs consist of
events occurred during business processes among the inter-enterprises in the global
environment, documents used during each event, table/files used and which occurred during
each event, and departments or persons who are involved in performing each event. See
Table 3.
Figure 3 presents the SD prepared and developed during this study and consists of six
differing diagrams of an inter-enterprise AIS. Figure 3.1 presents the system flowchart
diagram, Figure 3.2 presents the data flow diagram, Figure 3.3 shows the database schema
and cardinality among entities, Figure 3.4 shows the relationships among the resources,
events, and agents. Figure 3.5 shows the specific combination of functions, steps, inputs, and
outputs while Figure 3.6 presents UML activity diagrams. See FIGURES 3.1-3.6.
Second, the researcher’s students in many different courses learnt how to use SD
techniques to develop SD and AIS. So the researcher analyzed which courses students should
take and learn how to use SD techniques to develop SD and AIS by using the results from part
1 as an example. See TABLES 4 and 5.
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Table 4 presents an analysis of courses providing SD techniques mostly taken by
students. In this study, students are classified into four types: Master’s of Accounting
(M.ACC); Master’s of Accounting Information Systems (M.AIS); Bachelor’s of Accounting
(B.ACC); and Bachelor’s of Accounting Information Systems (B.AIS). Courses are classified
into four types: Accounting Information Systems (AIS); Management Information Systems
(MIS); Accounting Information System Development (AIS DEV); Databases (DB). The
researcher found that most of the four types of students learn SFC, and DFD in the AIS and
MIS classes. ERD is mostly learnt by M.AIS and B.AIS students in the AIS development and
database classes with some further learning from the AIS and MIS classes. REA is mostly
learnt by the four types of students in the AIS class and especially by M.AIS and B.AIS
students in the AIS development and DB classes. For UML, most students from M.AIS and
B.AIS learn it in the AIS development and DB classes.
Table 5 presents a summarization of the courses providing the SD techniques mostly
learnt by students. This table is classified into three parts: the level of students; the system
diagram techniques learned and used by students; and the courses taken by students. The
researcher found that most M.ACC students in the AIS and MIS courses learn SFC, DFD, ERD, REA in their classes. Most M.AIS students in the AIS, MIS classes learn SFC, DFD, PM
while some of them in the AIS DEV and DB classes learn E-RD, REA, and UML. Almost all
B.ACC students learn SFC, DFD, E-RD, PM in their AIS, MIS classes while some students
learn REA and UML in the AIS DEV and DB classes. Finally, most B.AIS students learn
SFC, DFD, PM in their AIS and MIS classes and study E-RD, REA in great detail as well as
UML in their AIS DEV, AIS, MIS and DB classes.
RESEARCH DEVELOPMENT
In this study, the primary purposes are to prepare SD and AIS using the data captured
from business processes among inter-enterprises and use such SD and AIS as examples for
students’ learning. Based on the previous findings in this study, the researcher developed two
types of model: the first is a system diagram technique model used to develop an interenterprise AIS in the global environment, the second is a system diagram technique model
used by students in their course learning. See FIGURE 1 and FIGURE 2.
System diagram technique models
Figure 1 shows two types of SD technique model: (1a) SD technique model
conceptual foundation (AIS textbooks 2005-2006; Bradford, Richtermeyer and Roberts 2007)
and (1b) SD technique model of an inter-enterprise AIS in the global environment. See
FIGURE 1.
Figure 2 also shows two types of SD technique model: (2 a) SD technique model
conceptual foundation (AIS textbooks 2008-2009) and (2 b) SD technique model taken by
students in an Accounting Information System major course. See FIGURE 2.
HYPOTHESES DEVELOPMENT
A major purpose of this study is to use business process data captured from business
enterprises with a system diagramming technique to prepare a system diagram of business
process presenting the development of an inter-enterprise accounting information system in
the global environment. Based on this objective, the researcher is interested in whether the
development of SD and AIS above is consistent with the system diagram technique used in
preparing the business processes and system diagram. Also, based on the SD technique used
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in the researcher’s first study, the researcher is also interested in using it to teach her students
in four major courses in which the SD technique is used: (1) AIS development; (2) AIS; (3)
MIS; (4) database course. Thus, the following two hypotheses (H1-H2) have been developed:
H1: Development of SD and AIS with data captured from business processes is
consistent with the system diagram technique.
H2: Students learn how to use the system diagram technique in preparing and
developing SD and AIS in any course.
The data captured from the questionnaires is used to develop an inter-enterprise AIS
in the global environment. See FIGURES 3.1-3.6.
Thus, students can learn how to use the SD technique to develop SD and AIS from
Figures 3.1-3.6. Students in this study came from four major areas: (1) Master’s of
Accounting (M.ACC), (2) Master’s of Accounting Information Systems (M.AIS), (3)
Bachelor’s of Accounting (B.ACC), and (4) Bachelor’s of Accounting Information Systems
(B.AIS).
METHODOLOGY AND SAMPLE SELECTION
From the two hypotheses developed for this study, a survey of respondents included
industrial businesspersons and executive students who work in accounting and accounting
information system areas. Forty respondents who work in industrial enterprises were asked
for the steps and flows of purchasing processes among organizations in the global
environment (Romney and Steinbart 2006) while 200 students were asked about the courses
they took, the SD technique they used in their courses and their private studies. Table 6 shows
the descriptive statistics of key information related to these respondents from the survey. Data
from Table 6 indicates that the respondents were purchasing managers and most had a
Master’s and Bachelor’s in Accounting as well as more than 20 years of total work
experience.
RESULTS
The development of SD and AIS with data captured from business processes is
consistent with the system diagram techniques. Hypothesis 1 (H 1) focuses on using business
process data captured from 40 entrepreneurs to develop SD and AIS. See FIGURES 3.1- 3.6.
The second part of the survey questions asks all respondents to indicate which SD technique
they use to develop SD and AIS. The results are shown in Table 7.
Table 7 presents an analysis of the SD techniques used to develop SD and AIS. The
results indicate that SFC is used to present the flow of operation, while DFD is used to show
the flow of data and information. To develop the relationships of entities, developers use ERD, while REA presents the relationships of resources, events, and agents. Process maps
show the flow of processes. Finally, the UML activity diagram consisting of an overview and
detailed diagram is presented by UML.
Table 8 presents the summary of SD technique-based business process data used to
develop SD and inter-enterprise AIS in the global environment. Table 8 summarizes the
analysis from Table 7 with business process data captured from 40 entrepreneurs consisting
of: (1) negotiation of contract; (2) confirmation of schedule; (3) confirmation of credit,
payment; (4) at port; (5) cargo shipment; (6) customs procedure. These data are used to
develop SD and AIS through the SD technique which consists of SFC, DFD, E-RD, REA,
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process maps, and UML. Most respondents indicate that all SD techniques are used to
develop SD and inter-enterprise AIS in the global environment: (1) flow of operation; (2)
flow of data and information; (3) relationship of entities; (4) relationship of resource, event,
agent; (5) flow of processes; (6) UML activity diagram.
CONCLUSION, LIMITATIONS AND FUTURE RESEARCH
The system diagram technique is an important tool for developing and presenting the
overview of the system diagram and accounting information systems in each business
process. This study is classified into two parts: (1) developing and preparing the system
diagram and accounting information systems in the global environment; (2) how the SD and
AIS developed in the first part should be learnt by students in any course. Data used in this
study are captured from 40 business enterprises in the international trading industry. These
data are used to prepare system diagrams and develop AIS by using the SD techniques of
system flowchart, data flow diagram, E-R diagram, resource-event-agent, process maps, and
Unified-Modeling-Language.
The student data captured is used to present the SD model learnt by students in
accounting and accounting information system courses. The results of the study indicate that
SFC is used to show information and operation processes while DFD is used to show system
process and data flow. While E-RD is used to present database schema and cardinality among
entities, REA is used to classify entities into resource, event, and agent. The process map is
used to show the combination of functions, steps, inputs, and outputs and UML is used to
show activity diagram, sequence of steps in business processes, and UML activity diagram.
The results also reveal that most students from accounting and accounting information system
majors, including M.ACC, M.AIS, B.ACC and B.AIS, learn how to use SFC and DFD in
their accounting information systems and management information systems courses while
ERD, REA, and UML are mostly learnt by students in the area of accounting information
system development, accounting information systems, and database courses and among
students majoring in M.AIS and B.AIS, but not so much among those majoring in M.ACC
and B.ACC. Respondents also indicate that the process map is not learnt in any course. Some
students may learn about process maps in an AIS course and while some respondents didn’t
answer the relevant questions.
The results also indicate that SD techniques including SFC, DFD, and process maps
are mostly used to present the flow of operations, the flow of data and information, the flow
of processes while E-RD and REA are used to present the relationships of entities and
relationships of resources, events, and agents and UML is used to present the UML activity
diagram. This technique-based business process data is used to develop SD and interenterprise AIS in the global environment.
A limitation of this study is the business processes. In this study, the focus is only on
the procurement and purchasing systems globally. The sample size of data is too small
because most business enterprises did not give any feedback to the e-mails and keep their data
confidential. Another is that some respondents are not accustomed to the concept of some SD
techniques and some students never take some courses in this area so it takes time to gather
data for this study. Future research should look at the sale and revenue systems.
October 16-17, 2009
Cambridge University, UK
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REFERENCES
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Sarasota, FL: American Accounting Association.
American Accounting Association (AAA). (2007). Journal of Information Systems.
Sarasota, FL: American Accounting Association.
American Accounting Association (AAA). (2006). Journal of Information Systems.
Sarasota, FL: American Accounting Association.
American Accounting Association (AAA). (2005). Journal of Information Systems.
Sarasota, FL: American Accounting Association.
Ashkanasy, N., Bowen, P. L., Rohde, F. H., & Wu, C. Y. A. (2007). The Effects of User
Characteristics on Query Performance in the Presence of Information Request
Ambiguity. Journal of Information Systems, (Spring), 37-51.
Bagranoff, N. A., Simkin, M. G., & Norman C. S. (2008). Accounting Information
Systems. New York, NY: John Wiley &. Sons.
Bagranoff, N. A., & Brewer, P. C. (2003). PMB Investments: An Enterprise System
Implementation. Journal of Information Systems, (Spring), 85-106.
Bajaj, A., Bradley, W. E., & Cravens, K. S. (2008). SAAS: Integrating Systems Analysis
with Accounting and Strategy for Ex Ante Evaluation of IS Investments. Journal of
Information Systems, (Spring), 97-124.
Borthick, A. F., & Jones, D. R. (2005). Analyzing a Potential Warranty Call Center Budget
Overrun: Using Database Queries to Solve Business Problems. Journal of
Information Systems, (Spring), 97-111.
Borthick, A. F., & Jones, D. R. (2007). Creating a Business Process Diagram and Database
Queries to Detect Billing Errors and Analyze Calling Patterns for Cell Phone
Service. Journal of Information Systems, (Spring), 107-122.
Borthick, A. F., & Curtis, M. B. (2008). Due Diligence on Fast-Fashion Inventory through
Data Querying. Journal of Information Systems, (Spring), 77-93.
Borthick, A. F., & Bowen, P. L. (2008). Auditing System Development: Constructing the
Meaning of Systematic and Rational” in the Context of Legacy Code Migration for
Vendor Incentives. Journal of Information Systems, (Spring), 47-62.
Bowen, P. L., & Debreceny, R. S. (2005). The Effects on End-User Query Performance of
Incorporating Object-Oriented Abstractions in Database Accounting Systems.
Journal of Information Systems, (Spring), 43-74.
Bradford, M. & Fisher, I. (2005). New York State Agencies: A Case Study for Analyzing
the Process of Legacy System Migration: Part I. Journal of Information Systems,
(Fall), 173-189.
October 16-17, 2009
Cambridge University, UK
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Bradford, M., Roberts, D. F., & Richtermeyer, S. B. (2007). System Diagramming
Techniques: An Analysis of Methods Used in Accounting Education and Practice.
Journal of Information Systems, (Spring), 173-212.
Brazel, J. F., & Dang, L. (2005). The Effect of ERP Systems Implementations on the
usefulness of Accounting Information. Research paper, North Carolina State
University and Oregon State University, USA.
Church, K. S., & Smith, R. E. (2007). An Extension of the REA Framework to Support
Balance Scorecard Information Requirements. Journal of Information Systems,
(Spring), 1-25.
Colon, S. J., & Grant, G. H. (2006). EDGAR Extraction System: An Automated Approach
to Analyze Employee Stock Option Disclosures. Journal of Information Systems, (Fall), 119142.
Diagle, R. J., Hayes, D. C., & Hughes II, K. E. (2007). Assessing Student Learning
Outcomes in the Introductory Accounting Information Systems Course Using the
AICPA’s Core Competency Framework. Journal of Information Systems, (Spring), 149-169.
Dunn, C. L., Cherrington, J. O. & Hollander, A. S. (2005). Enterprise Information
Systems: A Pattern-Based Approach. New York, NY: McGraw Hill.
Geerts, G. L., & McCarthy, W. E. (2006). Policy-Level Specifications in REA Enterprise
Information Systems. Journal of Information Systems, (Fall), 37-63.
Gelinas, Jr., U. J., & Dull, R. B. (2008). Accounting Information Systems, 7th edition.
Mason, OH: Thomson South-Western.
Gelinas, Jr., U. J., & Gogan, J. L. (2006). Accountants and Emerging Technologies: A Case
Study at the United States Department of The Treasury Bureau of Engraving and
printing. Journal of Information Systems, (Fall), 93-116.
Gerard, G. J. (2005). The REA Pattern, Knowledge Structures, and Conceptual Modeling
Performance. Journal of Information Systems, (Fall), 57-77.
Hall, J. A. (2008). Accounting Information Systems, 6th edition. Mason, OH: SouthWestern.
Hayes, D. C., & Reynolds, J. K. (2005). Caroline’s Candy Shop: An In-Class Role-Play of
the Revenue Cycle. Journal of Information Systems, (Spring), 131-154.
Hurt, R. L. (2008). Accounting Information Systems: Basic Concepts and Current Issues.
New York, NY: McGraw Hill.
Ingram, R. W., & Lunsford, D. L. (2003). Developing an e-Commerce System using Active
Server Pages. Journal of Information Systems, (Spring), 135-156.
Jones, F. L. & Rama, D. V. (2006). Accounting Information Systems: A Business
October 16-17, 2009
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Process Approach. Mason, OH: Thomson South-Western.
Lin, P. C., & Smith, L. M. (2006). Using a Web-Based Accounting System for Teaching
Accounting System Design and Implementation. Journal of Information Systems,
(Fall), 65-79.
Normand, C. J., & Sinason, D. H. (2006). Omni Furniture Company: A Systems
Development Life Cycle Case. Journal of Information Systems, (Fall), 81-91.
Romney, M. B., & Steinbart, P. J. (2006). Accounting Information Systems. New Jersey, NJ:
Pearson, Inc.
Romney, M. B., & Steinbart, P. J. (2009). Accounting Information Systems, 11th edition.
Upper Saddle River,: NJ: Pearson Prentice Hall..
Verdaasdonk, P. (2003). An Object- Oriented Model for Ex Ante Accounting Information.
Journal of Information Systems, (Spring), 43-61.
October 16-17, 2009
Cambridge University, UK
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APPENDIXES
Table 1: Summary of System Diagram Techniques used in AIS Textbooks (AIS Textbook from
Authors 2005-2009)
Courses
System Diagram
Techniques
Textbooks
Authors
AIS
MIS
AIS Development
Database
System Flowchart
AIS (2008) 10th edition
AIS (2008)
AIS (2008)
AIS (2008) 7th edition
AIS (2009) 11th edition
Bagranoff, Simkin, Strand
Hurt
Hall
Gelinas and Dull
Romney and Steinbart
AIS
MIS
AIS Development
Database
Dataflow Diagram
IS development (2006)
4th edition
AIS (2008) 10th edition
AIS (2008)
AIS (2008)
AIS (2008) 7th edition
AIS (2009) 11th edition
Avison, Fitzgerald
AIS
AIS Development
Database
Entity-Relationship
Diagram
IS development (2006)
4th edition
AIS (2008) 10th edition
AIS (2008)
AIS (2008)
AIS (2008) 7th edition
AIS (2009) 11th edition
Avison, Fitzgerald
AIS
AIS Development
Database
Resource-EventAgent
EIS (2005)
IS development (2006)
4th edition
AIS (2008) 10th edition
AIS (2008)
AIS (2008)
AIS (2008) 7th edition
AIS (2009) 11th edition
Dunn/Cherrington/Hollander
Avison, Fitzgerald
Bagranoff, Simkin, Strand
Hurt
Hall
Gelinas and Dull
Romney and Steinbart
Bagranoff, Simkin, Strand
Hurt
Hall
Gelinas and Dull
Romney and Steinbart
Bagranoff, Simkin, Strand
Hurt
Hall
Gelinas and Dull
Romney and Steinbart
AIS
Process Map
AIS (2008) 10th edition
Bagranoff, Simkin, Strand
AIS Development
Database
Unified-ModelingLanguage
IS development (2006)
4th edition
AIS (2006)
Avison, Fitzgerald
Rama and Jones
Table 2 : Results from analysis of SD techniques used to develop an AIS
SD techniques
SFC
DFD
E-RD
REA
PM
UML
SD & AIS development
Showing information processes and operational processes
Showing system, data flow processes
Portraying data base schemas cardinality among entities
Classifying entities in to R, E, A
Showing the combination of functions, steps, inputs & outputs
Showing activity diagram, sequence of steps in business
process, UML activity diagram
October 16-17, 2009
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Table 3 : Workflow table showing the conceptual foundation of events and activities
that compose a company’s business process and an example of a workflow
table showing analysis of the business process of data captured from business
enterprises (Rama and Jones 2006)
(a) Workflow table showing the conceptual foundation of events and
activities (Rama and Jones 2006)
Events
Activities
Actors
Event 1
Activity 1.1
-------------Activity 1.n
Activity 2.1
-------------Activity 2.n
------------Activity n.1
-------------Activity n. n
Actor 1
Event 2
---------Event n
Actor 2
Actor n
(b) Examples of workflow table showing analysis of business process of data captured
from business enterprises
Events
Activities
Documents/
Inputs used
• Negotiation
of contact
•Contact
vendor
•Ask for letter of
credit
•Pro-forma
invoice
•Purchase
order
•Letter of
credit
• Confirmation
of schedule
• Ship cargo to
customer
• Pay to Port
October 16-17, 2009
Cambridge University, UK
16
Persons/
departments
•Vendor
•Purchase
order
•Letter of
credit
•Receive details of •Details of
products
products
•Examine schedule •Original
•Receive
documents
document/schedule •Shipping
•Shipping
documents
•Bill of loading •Bill of lading
•Delivery
order
• Confirmation
of credit
Tables/files
•Delivery
order
•Customer
•Issuing bank
•Vendor
•Issuing bank
•Issuing bank
•Shipping
•Customer
•Port
•Agent
•Carrier
• Customer
• Shipping
• Port
9th Global Conference on Business & Economics
• AT port
• Cargo
Shipment
•Customs
procedure
• Pick up cargo
• Examine
documents
• Prepare truck for
cargo
• Examine cargo
• Carry cargo on
truck Carry
cargo
on truck
• Enter sub gate
out
• Enter main gate
• Transfer cargo
from carrier
• Pay for service to
shipping
• Examine cargo
• Enter gate in
• Transfer cargo on
truck
• Enter gate out
• Cargo shipment
from port
• Prepare cargo
for authorization
• Prepare cargo for
investigation
• Investigate
cargo
•Transfer cargo
to warehouse
•Prepare
inspection sheet
• Pay for
insurance
• Pass I/S to
customs
October 16-17, 2009
Cambridge University, UK
ISBN : 978-0-9742114-2-7
•Carrier
• Enter sub gate out
• Examine cargo
• Customer
• Shipping
• Port
• Carrier
•Customer
• Customer
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Table 4 : An analysis of courses providing SD techniques mostly taken by students
Syst FC
DFD
ERD
AIS DEV AIS MIS DB
AIS DEV AIS MIS DB
AIS DEV AIS MIS DB
*
*
*
*
*
*
*
*
*
*
M.ACC
M.IS
*
B.ACC
B.IS
*
*
*
*
*
*
*
*
*
*
*
PM
*
*
*
*
*
*
*
UML
AIS DEV AIS MIS DB AIS DEV AIS MIS DB AIS DEV AIS MIS DB
*
*
*
*
*
REA
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Table 5 : Summarization of courses providing SD techniques mostly taken by students
Level of students
M.ACC
SD techniques used
SFC
DFD
E-RD
REA
PM
UML
Course taken
AIS, MIS
AIS, MIS
AIS
AIS
none
none
M.AIS
SFC
DFD
E-RD
REA
PM
UML
AIS, MIS
AIS, MIS
AIS DEV, AIS, DB
AIS DEV, AIS, DB
AIS
AIS DEV, AIS, DB
B. ACC
SFC
DFD
E-RD
REA
PM
UML
AIS, MIS
AIS, MIS
AIS, MIS
AIS DEV, AIS, DB
AIS
AIS DEV., DB
B.AIS
SFC
DFD
E-RD
REA
PM
UML
AIS, MIS
AIS,MIS
AIS DEV, AIS, DB
AIS DEV, AIS, DB
AIS
AIS DEV, AIS, DB
October 16-17, 2009
Cambridge University, UK
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Table 6 : Survey of Respondents
Panel A: Number of Employees
Percentage
0 - 100
101 - 300
301 - 500
501 - 3000
Over 3000
5
15
25
50
5
Panel B: Managerial position
Inventory
Purchasing
Receiving
Account Payable
Finance
Accounting
CIO
CEO
10
50
10
5
10
5
5
5
Panel C: Years of total work experience
Less than 3 years
3- 5
6 - 10
11 - 15
16 - 20
21 - 25
Greater than 25 years
15
10
10
10
15
35
5
Panel D: Education
Master’s in Accounting
Master’s in Accounting Information Systems
Bachelor’s in Accounting
Bachelor’s in Accounting Information Systems
October 16-17, 2009
Cambridge University, UK
19
40
10
30
10
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Table 7 : Analysis of SD technique used to develop SD and AIS (Respondents 2008)
Type of SD and AIS developed
SD technique used
SFC
Flow of operations
DFD
E-RD
REA
Process Map
UML
*
Flow of data and information
*
Relationship of entities
*
Relationship of resource-event-agent
*
Flow of processes
*
UML activity diagram
*
Table 8 : Summary of SD technique-based business process data used to develop SD and
Inter-enterprise AIS in the Global Environment (business enterprises 2008)
Business Processes
Negotiation of contract
Confirmation of schedule
Confirmation of credit,
payment
At Port
Cargo shipment
Customer procedure
October 16-17, 2009
Cambridge University, UK
SD technique
SFC
DFD
Development of SD and AIS
Flow of operations
Flow of data and information
E-RD
Relationship of entities
REA
Relationship of resourceevent-agent
Flow of processes
UML activity diagram
Process Map
UML
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Table 9 : Percentage of SD techniques and respondents: Business enterprises
SD techniques
Percentage
. SFC
70
. DFD
20
. E-RD
5
. REA
3
. Process Map
0
. UML
2
Table 10 : Percentage of SD techniques and respondents: Students
SD techniques
Percentage
. SFC
30
. DFD
30
. E-RD
20
. REA
10
. Process Map
1
. UML
9
Table 11 : Percentage of Agreement of Respondents on the Impact of SD techniques on
AIS development and course learning
AIS development
Agree (Yes)
Do not agree (No)
October 16-17, 2009
Cambridge University, UK
Course learning
98.5
99.7
1.5
0.3
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Table 12 : The degree of relationship between the use of SFC and respondents (1=to a
very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to a
good degree, 5=to a greater degree
Degree of
relationship
n
to a
greater
degree
to a good
degree
to no
large or
small
degree
to a
slight
degree
to a very
slight
degree
Business
enterprise
40
35
5
0
0
0
student
200
110
90
0
0
0
Respondent
Table 13 : The degree of relationship between the use of DFD and respondents (1=to a
very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to
a good degree, 5=to a greater degree
Degree of
relationship
n
to a
greater
degree
to a good
degree
to no
large or
small
degree
to a
slight
degree
to a very
slight
degree
Business
enterprise
40
20
20
0
0
0
student
200
150
50
0
0
0
Respondent
October 16-17, 2009
Cambridge University, UK
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Table 14 : The degree of relationship between the use of E-R diagram and respondents
(1=to a very slight degree, 2=to a slight degree, 3=to no large or small degree,
4= to a good degree, 5=to a greater degree
Degree of
relationship
to a good
degree
to no
large or
small
degree
to a
slight
degree
to a very
slight
degree
0
0
20
10
10
50
50
50
30
20
n
to a
greater
degree
Business
enterprise
40
student
200
Respondent
Table 15 : The degree of relationship between the use of REA and respondents (1=to
a very slight degree, 2=to a slight degree, 3=to no large or small degree, 4=
to a good degree, 5=to a greater degree
Degree of
relationship
n
to a
greater
degree
to a good
degree
to no
large or
small
degree
to a
slight
degree
to a very
slight
degree
Business
enterprise
40
0
0
0
10
30
student
200
20
30
50
50
50
Respondent
October 16-17, 2009
Cambridge University, UK
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Table 16 : The degree of relationship between the use of Process Maps (PM) and
respondents (1=to a very slight degree, 2=to a slight degree, 3=to no
large or small degree, 4= to a good degree, 5=to a greater degree
Degree of
relationship
n
to a
greater
degree
to a good
degree
to no
large or
small
degree
to a
slight
degree
to a very
slight
degree
Business
enterprise
40
0
0
0
10
30
student
200
10
20
30
60
80
Respondent
Table 17 : The degree of relationship between the use of UML and respondents (1=to a
very slight degree, 2=to a slight degree, 3=to no large or small degree, 4= to a
good degree, 5=to a greater degree
Degree of
relationship
n
to a
greater
degree
to a good
degree
to no
large or
small
degree
to a
slight
degree
to a very
slight
degree
Business
enterprise
40
0
0
10
10
20
student
200
10
20
30
70
70
Respondent
Table 18 : Chi-square Test between the use of SFC and respondents
Value
Pearson Chi-Square
Likelihood Ratio
Fisher’s Exact Test
Linear-by-Linear
Association
October 16-17, 2009
Cambridge University, UK
Df Asymp.Sig. Exact Sig. Exact Sig.
Point
(2-sided)
(2-sided) (1-sided) Probability
1.689(a) 2
1.725
2
1.041
1.402(b) 1
.176
.198
.168
.169
.165
.162
.165
24
.081
.005
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Table 19 : Chi-square Test between the use of DFD and respondents
Value
Pearson Chi-Square
Likelihood Ratio
Fisher’s Exact Test
Linear-by-Linear
Association
Df Asymp.Sig. Exact Sig. Exact Sig.
Point
(2-sided)
(2-sided) (1-sided) Probability
1.735(a) 2
1.082
2
2.093
1.734(b) 1
.168
.175
.167
.158
.159
.152
.155
.076
.002
Table 20 : Chi-square Test between the use of E-RD and respondents
Value
Pearson Chi-Square
Likelihood Ratio
Fisher’s Exact Test
Linear-by-Linear
Association
Df Asymp.Sig. Exact Sig. Exact Sig.
Point
(2-sided)
(2-sided) (1-sided) Probability
1.625(a) 2
1.136
2
1.184
1.647(b) 1
.206
.187
.175
.165
.157
.162
.152
.081
.004
Table 21 : Chi-square Test between the use of REA and respondents
Value
Pearson Chi-Square
Likelihood Ratio
Fisher’s Exact Test
Linear-by-Linear
Association
Df Asymp.Sig. Exact Sig. Exact Sig.
Point
(2-sided)
(2-sided) (1-sided) Probability
1.802(a) 2
1.107
2
1.045
1.675(b) 1
.181
.169
.167
.174
.151
.161
.150
.080
.003
Table 22 : Chi-square Test between the use of Process Map and respondents
Value
Pearson Chi-Square
Likelihood Ratio
Fisher’s Exact Test
Linear-by-Linear
Association
October 16-17, 2009
Cambridge University, UK
Df Asymp.Sig. Exact Sig. Exact Sig.
Point
(2-sided)
(2-sided) (1-sided) Probability
1.030(a) 2
1.065
2
1.102
1.395(b) 1
.162
.175
.159
.171
.156
.164
.157
25
.082
.005
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Table 23 : Chi-square Test between the use of UML and respondents
Value
Pearson Chi-Square
Likelihood Ratio
Fisher’s Exact Test
Linear-by-Linear
Association
October 16-17, 2009
Cambridge University, UK
Df Asymp.Sig. Exact Sig. Exact Sig.
Point
(2-sided)
(2-sided) (1-sided) Probability
1.212(a) 2
1.074
2
1.084
1.569(b) 1
.196
.185
.178
.185
.152
.152
.155
26
.076
.002
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Figure 1 : System diagram technique conceptual foundation model and system
diagram technique model of an inter-enterprise accounting information
system in the global environment
1a. System diagram technique conceptual foundation model (AIS textbooks
2005-2006; Bradford, Richtermeyer and Roberts 2007)
1b. System diagram technique model of an inter-enterprise accounting
information system in the global environment (operation)
1 a.
Business
processes
System
Diagram
Technique
System diagram
and
AIS
1 b.
System
Flowchart
(SFC)
Data flow
Diagram
(DFD)
Entity-Relationship
Diagram
(E-RD)
System diagram (SD)
and
Accounting Information
System (AIS)
In the Global Environment
Business porcesses
from
Entrepreneurs
Resource-Event-Agent
(REA)
Process Map
(PM)
Unified Modeling
Language
(UML)
October 16-17, 2009
Cambridge University, UK
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Figure 2 : SD technique model conceptual foundation and SD technique model
taken by students in an AIS major course
(2 a) SD technique model conceptual foundation (AIS textbooks 2005-2009)
(2 b) SD technique model learnt by students in an AIS major course (operation)
2 a.
System diagram
Technique-based
System Model
Student
Course
2 b.
System
Flowchart
(SFC)
Data flow
Diagram
(DFD)
Entity-Relationship
Diagram
(E-RD)
Students from
Universities
Course in
curiculum
Resource-Event-Agent
(REA)
Process Map
(PM)
Unified Modeling
Language
(UML)
October 16-17, 2009
Cambridge University, UK
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Figure 3.1 : SFC diagram shows the development of an electronic-based interenterprise AIS in the global environment
SFC Diagram shows the development of an electronic-based Inter-enterprise AIS in the Global Environment
Purchase
Department
(Local country)
Purchase/sales
Department
(Foreign country)
Export
Department
(Foreign country)
IT
Department
Start
Enter
Purchase
data
Record
Purchase data
Transfer data
To AS 400
System
PO IS
Print hard
Copy of PO data
Database
PO data
Fax PO
data
Receive data
from
AS 400 System
receive PO
data
Prepare data/
Document
P rovide products
Receive document
/data
Tranfer data to
AS 400 System
Issue Invoice
Confirm airline
ticket
Prepare export
procedure
Receive:
. Invoice data
. Airline data
From AS 400
System
Transfer :
Invoice data
Airlinr data
To AS 400 System
A
October 16-17, 2009
Cambridge University, UK
29
9th Global Conference on Business & Economics
Purchasing
department
Local country
Importer
Local country
ISBN : 978-0-9742114-2-7
Importer agent
Local country
Customs
Printhard
copy of
data
Perform
Customs
procedure
Perform
EDI-based
Customs
Procedure
(paperless)
Perform
EDI-based
Imported
Procedures
(paperless)
Provide
products
line
Customs
airport
Investigating Warehouse
Department
Importer
Import product
airport
Customs
Warehouse
Purchaser
Local country
A
Examine
Invoice
data
Send
Invoice
data
Enter
data
AS 400
Receive
Data on
AS 400
system
Transfer
invoice.data
Airline data
Redline
Meet an
officer
Receive
Customs
documents
Prepare
Customs
documents
Greenline
Meet an
offical
Move
products
to warehouse
Receive
products
from airline
stop
October 16-17, 2009
Cambridge University, UK
30
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
Figure 3.2 : DFD diagram shows the development of an electronic-based interenterprise AIS in the global environment
DFD shows the development of an electronic-based Inter-Enterprise AIs in the Global Environment
Purchase data
PO
Inventory
department
PO
1
Enter Purchase
data
PO
PO
Various
department
2
Move data to
AS 400
PO
Purchasing
department
(Local country)
PO
PO
3
Print PO data
(paper)
4
Fax PO data
PO
Sale
Department
(Foreign Country)
PO
5
Receive PO
PO
PO
Document
6
Prepare document
And provide
products
data
Purchasing
Department
(Local Country)
7
Transfer data to
AS 400
system
Document
Database
October 16-17, 2009
Cambridge University, UK
31
9th Global Conference on Business & Economics
1
Examine
Invoice data
invoice
Purchasing
Department
(Local country)
ISBN : 978-0-9742114-2-7
Invoice
Invoice
2
Send invoice to
(Local country)
3
Enter invoice
data to
AS 400
system
Importer
(Local Country)
Invoice
Invoice
Invoice
airline
4
Transfer
invoice data
Airline data
Purchasing
Department
(Local country)
Invoice
Airline
5
Print hard
copy
Of data
Data
Importo agent
(Local country)
6
Perform
EDI-based
Customs
procedure
EDI
customers
EDI-data
7
Provide
products
8
Prepare
Customs
documents
Customs
documnt
customs
document
Importer
(Local country)
October 16-17, 2009
Cambridge University, UK
32
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
customs
1
Perform
customs
prodedure
Customs
(airport)
Red Line
Customs
documents
4
Meet an
officer
Green line
2
Perform
EDI-based
Import
procedure
Investigate
Department of
Import products
customs
3
Red line
or
Green line
Warehouse
(Importer)
( airport)
5
Move products to
warehouse
6
Receive
Products
From airlines
October 16-17, 2009
Cambridge University, UK
Warehouse
(Purchaser)
(Local country)
33
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
Figure 3.3 : E-RD diagram shows the development of an electronic-based interEnterprise AIS in the global environment
Figure 4
E-R with REA Diagram of an inter-enterprise Accounting Information System in the Global Environment
1. Negotiation of contract
Resource
Product
(Proforma Invoice)
Event
(0,1)
Agent
(1,N)
(0,N)
(1,1)
Customer
Contact Vendor
On-line
example
(0,1)
Product
(Purchase Order)
(0,1)
(1,N)
Vendor
(0,1)
(1,1)
(1,N)
(0,1)
send/receive
done
prepare
Product
(Letter of credit)
(0,N)
(1,1)
Ask for letter of credit
(1,1)
Customer
ask
(0,1)
receive
(0,N)
next
(1,1)
(1,N)
(0,N)
(1,1)
Open letter of credit
open
prepare
October 16-17, 2009
Cambridge University, UK
34
Issuing
Bank
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
2. Confirmation of schedule
Resource
Product
(Details of
product)
Event
Agent
(1,N)
(0,1)
(0,N)
(1,1)
Customer
Receive details of product
Details of product
receive
(1,1)
(1,1)
(0,N)
Vendor
notify
next
(1,N)
Product
(Schedule)
(0,1)
(1,N)
schedule
(1,1)
Examine Schedule
(0,N)
Customer
examine
(1,1)
(0,N)
(1,1)
Shipping
done
Product
(Shipping
document)
notify
(1,N)
(0,1)
(1,N)
Details of
shipping
(0,N)
(1,1)
Receive document
send
(1,1)
(1,1)
(0,N)
Customer
prepare
(1,N)
(1,N)
(0,1)
Product
receive
(1,1)
(0,N)
Bill of lading
send
(1,1)
information
(1,1)
(0,N)
(1,1)
product
Product
send
(0,N)
(1,1)
Delivery order
(0,N)
(1,1)
(1,1)
(1,1)
batch
recieve
(0,N)
(0,N)
(1,1)
Document for Customer
Customer
prepare
(1,N)
(1,N)
Product
Port
receive
Schedule location
(0,1)
Shipping
(0,N)
receive
(1,N)
(1,N)
(0,1)
Issuing
Bank
(1,1)
prepare
details
(0,N)
Agent
(1,N)
Receive documents
(1,1)
Customer
agree
(0,1)
(1,1)
(1,N)
Product
(1,1)
Make appointment to carrier
(0,N)
make
(0,N)
(1,1)
appointment
notify
October 16-17, 2009
Cambridge University, UK
35
Carreer
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
3. Confirmation of credit, payment
Resource
Event
(0,1)
Agent
(1,N)
Cargo
(0,N)
(1,1)
Ship cargo to customer
Shipping
ship
flow
(0,N)
(1,1)
responsible
(1,1)
(0,1)
(1,N)
Cash
(0,N)
Pay to Port
Cash received
(0,N)
receive
(1,1)
(1,1)
pay
(0,N)
(1,1)
done
(0,1)
(1,1)
(1,N)
(0,N)
Pick up cargo
amount
(1,1)
port
receive
(0,N)
Cargo
Customer
Carrier
Pick up
(1,1)
next
(1,1)
Cargo
(0,N)
receive
(1,N)
(0,1)
Examine document
(Document)
detail
(1,1)
Port
(1,1)
(0,N)
approve
(0,N)
examine
(1,N)
(0,1)
Truck
(1,1)
Prepare truck for cargo
available
(0,N)
port
prepare
(1,1)
available
(0,N)
(0,1)
(1,N)
Cargo
(1,1)
(0,N)
Examine cargo
examine
amount
(1,1)
approve
(0,1)
amount
Port
(0,N)
(0,N)
(1,N)
Truck
(0,1)
(1,1)
Carry cargo on truck
tranfer
carry
(1,N)
(0,N)
(1,1)
available
(0,N)
Cargo
(1,N)
(0,1)
(Sub gate out)
carrier
tranfer
(1,1)
(1,1)
(0,N)
Enter sub gate out
Port
On truck
move
(1,1)
next
(1,1)
Cargo
(0,1)
(1,N)
(Main gate)
(0,N)
(1,1)
Enter main gate
move
On truck
(0,N)
(1,1)
tranfer
October 16-17, 2009
Cambridge University, UK
36
carrier
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
4 At Port
Resource
Event
(0,1)
Agent
(1,N)
Transfer cargo from carrier
Cargo
(0,N)
(1,1)
Carrier
transfer
prepare
(0,N)
(1,1)
(0,N)
Port
done
(1,1)
Cash
(1,N)
(0,1)
revenue
(1,1)
(0,N)
Shipping
Pay for service to shipping
EFT
cash received
(1,1)
(1,1)
(0,N)
Customer
done
pay
(0,N)
(0,1)
(1,N)
(0,N)
(1,1)
Cargo
Examine cargo
available
Port
examine
(1,1)
approve
(1,1)
Cargo
(Gate in)
(1,1)
(1,N)
(0,1)
(0,N)
Enter gate in
move
flow
(1,1)
done
(1,N)
(0,1)
(1,1)
(1,N)
Cargo
(0,N)
Transfer cargo on truck
Port
On-truck
tranfer
(1,1)
Truck
(1,N)
(0,1)
done
store
(0,1)
(1,N)
(1,1)
enter
Cargo
(Gate out)
(1,1)
(1,N)
(0,N)
Enter gate out
(0,1)
October 16-17, 2009
Cambridge University, UK
move
enter
37
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
5. Cargo Shipment
Resource
Event
Agent
(0,N)
(1,1)
Cargo
(1,N)
(0,1)
Cargo shipment form port
availeble
(0,1)
Port
ship
(1,1)
availeble
(1,1)
receive
(0,N)
(1,N)
(1,N)
authorize
Prepare cargo for
authorization
Customer
(1,1)
(0,N)
prepare
(1,1)
approve
(1,N)
Cargo
(0,1)
(1,N)
Prepare cargo for
investigation
availeble
(0,1)
Customer
(1,1)
(0,N)
prepare
(1,1)
approve
(1,N)
(0,N)
(1,N)
Investigate cargo
(1,1)
details
investigate
(1,1)
done
(0,N)
Cargo
(1,N)
(0,1)
Transfer cargo to
warehouse
move
(1,1)
(0,N)
(1,1)
Customer
tranfer
Warehouse
receive
October 16-17, 2009
Cambridge University, UK
38
(0,N)
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
6. Customs Procedure
Resource
Cargo
(Inspection Sheet)
Event
Agent
(1,N)
(0,1)
(0,N)
(1,1)
Customer
Prepare inspection sheet
details
prepare
(1,1)
(0,N)
(1,1)
customs
investigate
done
customer
(1,N)
(1,N)
(0,1)
Cash
(1,1)
(0,N)
Pay for insurance
cash receive
pay
(1,1)
(0,N)
(1,1)
customs
EFT
done
(0,N)
(1,1)
Customer
pass
(1,N)
Cargo
(Inspection Sheet)
(1,N)
(0,1)
inspect
October 16-17, 2009
Cambridge University, UK
Pass inspection sheet to
customers
(1,1)
(0,N)
Custom
examine cargo
39
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
Figure 3.4 : REA diagram shows the development of an electronic-based interenterprise AIS in the global environment
REA Diagram of an inter-enterprise Accounting Information System in the Global Environment
1. Negotiation of contract
Resource
Product
(Proforma Invoice)
Event
N
1
N
1
Customer
Contact Vendor
N
1
Product
(Purchase Order)
Agent
N
1
1
Vendor
1
Product
(Letter of credit)
1
1
Ask for letter of credit
1
1
1
1
1
Customer
1
1
1
Open letter of credit
October 16-17, 2009
Cambridge University, UK
40
Issuing
Bank
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
2. Confirmation of schedule
Resource
Product
(Details of product)
Event
1
Agent
1
N
1
Customer
Receive details of product
1
N
1
Vendor
1
Product
(Schedule)
1
1
1
Examine Schedule
1
Customer
1
1
1
Shipping
N
Product
(Shipping document)
N
1
N
1
Receive document
N
Issuing
Bank
1
Customer
October 16-17, 2009
Cambridge University, UK
41
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
3. Confirmation of credit, payment
Resource
Event
N
Agent
1
Cargo
1
N
Ship cargo to customer
N
Shipping
N
1
1
1
1
Cash
1
1
N
1
Customer
Pay to Port
1
N
N
1
Cargo
Pick up cargo
Carrier
1
1
N
Cargo
1
N
Examine document
(Document)
1
Port
1
1
N
N
N
1
Truck
Prepare truck for cargo
1
N
N
1
Cargo
N
1
Examine cargo
Port
1
N
1
N
N
Truck
1
1
N
Carry cargo on truck
1
1
Cargo
1
1
1
1
Enter sub gate out
(Sub gate out)
Port
1
1
Cargo
1
(Main gate)
October 16-17, 2009
Cambridge University, UK
1
1
Enter main gate
42
1
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
4 At Port
Resource
Event
N
Agent
1
N
Transfer cargo from carrier
Cargo
N
1
Carrier
N
1
Port
1
Cash
1
1
N
1
Shipping
Pay for service to shipping
N
1
1
Customer
N
N
1
N
Cargo
1
Examine cargo
Port
1
1
Cargo
(Gate in)
1
1
1
1
Enter gate in
N
N
1
Cargo
1
Transfer cargo on truck
Port
1
Truck
1
1
1
Cargo
(Gate out)
1
October 16-17, 2009
Cambridge University, UK
1
1
Enter gate out
43
1
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
5. Cargo Shipment
Resource
Event
N
Agent
1
Cargo
N
1
Cargo shipment form port
1
Port
N
1
1
N
1
Prepare cargo for
authorization
N
1
N
1
Customer
1
1
N
1
Cargo
Prepare cargo for
investigation
Customer
1
1
N
1
1
N
Investigate cargo
1
N
N
Cargo
1
N
Transfer cargo to
warehouse
1
Customer
N
1
Warehouse
October 16-17, 2009
Cambridge University, UK
44
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
6. Customs Procedure
Resource
Cargo
(Inspection Sheet)
Event
Agent
1
1
1
1
Customer
Prepare inspection sheet
1
1
1
1
Cash
N
1
Pay for insurance
1
1
Customer
1
Cargo
(Inspection Sheet)
October 16-17, 2009
Cambridge University, UK
1
1
Pass inspection sheet to
customers
45
1
1
1
Custom
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
Figure 3.5 : Process map shows the development of an electronic-based inter-enterprise
AIS in the global environment
Pruchase
Department
(Local country)
Enter
purchase
data
Transfer
data to
AS 400
Print hard
copy
of PO data
Sale department
(Foreign country)
Receive
PO
data
Prepare
data
document
Receive data
Invoice data
and
Airline data
Purchase
department
(Local country)
Export
department
(Foreign Country)
Receive
data from
AS 400
Fax PO
data
Receive
Document/
data
Issue
Invoice
Confirm
airline
ticket
Prepare
export
procedure
Examine
Invoice data
Provide
Products
Send
Invoice data
Transfer
•Invoice data
•Airline data
to
AS 400
Enter data
To
AS 400
Importer
(Local country
Transfer
Invoice data
And
Airline data
October 16-17, 2009
Cambridge University, UK
46
Transfer
Data to
AS 400
Receive
Invoice data
and
Airline data
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
_____________________________________________________________________
customs document - customs procedures (continued)
Perform
EDI-based
customs
procedure
Print hard
copy of data
Prepare
customs
documents
Provide
products
Receive
customs
documents
_____________________________________________________________________
customs procedures (continued)
Perform
customs
procedure
Perform
EDI-based
Imported
procedure
Green line
Line
Meet an
officer
Red line
Customs
(airport)
Meet an
officer
Move products
to
Local country
Receive
products
from airline
_____________________________________________________________________
October 16-17, 2009
Cambridge University, UK
47
9th Global Conference on Business & Economics
ISBN : 978-0-9742114-2-7
Figure 3.6 : UML diagram shows the development of an electronic-based interenterprise AIS in the global environment
Purchase
Department
(Local country)
Export department
(Foreign country)
Sale department
(Foreign country)
Enter purchase
data
IT department
Data
base
PO: POIS
Transfer data
To AS 400
Print hard copy
of PO data
Fax PO data
Receive PO data
.Prepare
Document
.Provide products
Receive data
from AS400
Receive document/
data
Transfer data to
AS 400
.Issue Invoice
.Confirm airline ticket
.Prepare export procedure
Receive
.Invoice data
.Airline data
to AS 400
Transfer
.Invoice data
.Airline data
to AS 400
A
October 16-17, 2009
Cambridge University, UK
48
9th Global Conference on Business & Economics
Importer
(Local country)
Importer agent
(Local country)
ISBN : 978-0-9742114-2-7
Customs
(Airport)
Customs
Investigate Warehouse
department (importer)
(airport)
(customs)
A
Examine &
Send Invoice
data
Enter data
Into
AS 400
Receive data
on AS 400
system
Transfer
invoice data
Airline data
Print hard copy
of data
Perform EDI-based
Customs procedure
(paperless)
EDI
Perform
customs
Procedure
Provide
products
Prepare
customs
Documents
Receive
customs
Documents
Receive products
from agent
Perform EDI-based
import procedure
(paperless)
Red Line
Line
Meet an
officer
Meet an
officer
Green line
Move products
to warehouse
Receive products
from airline
__________________________________________
October 16-17, 2009
Cambridge University, UK
49
9th Global Conference on Business & Economics
October 16-17, 2009
Cambridge University, UK
ISBN : 978-0-9742114-2-7
50