Strategic Information Management for Enterprise and Business
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This paper focuses on the strategic information management system for Bell studio, discussing various transactional cycles and creating data flow diagrams. It also highlights weaknesses and risks associated with the system.
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 1 Strategic information management for enterprise and business: Name: Institution:
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 2 Strategic information management for enterprise and business Executive summary In this paper, we shall greatly focus on the strategic information management system for Bell studio, in our case we shall discuss various transactional cycle which includes; sales cycle, payroll cycle, purchases cycle, and cash disbursements cycle. Also, we shall create a data flow diagram of payroll system, system flow charts for purchase system and system flow charts of cash disbursements system and payroll system. Lastly, we shall focus on internal control weakness for each system and the risks each system will experience in providing services. The system which we shall focus on is purchase, payroll, and cash disbursement system.
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 3 Table of Contents Introduction........................................................................................................................4 Transactional cycle............................................................................................................5 Payroll cycle...................................................................................................................5 Purchasing cycle............................................................................................................7 Sales cycle.....................................................................................................................9 Cash disbursement system..........................................................................................10 Weaknesses in the Bell Studio system...........................................................................11 Payroll system..............................................................................................................11 Purchase system..........................................................................................................11 Cash Disbursement system.........................................................................................12 Risks associated with the weaknesses in the Bell Studio system..................................13 Human error.................................................................................................................13 Computer Viruses and Malware...................................................................................14 Conclusion.......................................................................................................................15 References.......................................................................................................................16
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 4 Introduction A strategic information system is usually created in order to respond to various business initiatives and the corporate world. In addition, a strategic information system is helpful in providing a higher competitive advantage in any organization. Also, it may provide a product or service which are differentiated, lower price and major focused on a demanding marketing section. Information system strategy is a necessary feature in the information technology and corporate world. Largely it assists various companies and firms in allocation, data processing, storage, moving the data and information developing and receiving. It also avails importance tools and services which will be used by various companies and organization for assisting the firms to apply analytical tools and metrics in its information repositories function and giving them authority to value their resourceful chances for enlargement and simpler ways which enhance operations and supply efficient. Thus it leads to better management of data with the effective data analysis and presentation. The strategic information system provides a connection between the demands of the organization and the latest information technology. This tactic helps an organization to get hold of the market by utilizing Information technology to meet its challenging requirements to the continuous variation in the corporate environment. Information system strategy is very crucial aspects because it assists the organization for its expansion and its growth. Using information system integration of data system and their function within the organization can be done within a short period of time. In addition to that, it allows the grouping of information into distinct opportunities for the uses of the information system from different strategies. It also provides the surety that absolutely
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 5 the required resources which are less allocated to various applications and utilization of scarce resources in a justifiable way. With the use of system information strategy, it makes sure that the information systems operate in accordance and largely supports the goals and objectives of the business and organization at distinct levels. At the Bell studio, the strategic information system information is acquired by analyzing the transactional cycle of the organization. The following are transactional cycle process and the ways in which it greatly affects the organization process. Transactional cycle Payroll cycle Payroll cycle is referred to as the duration of time between the payrolls. For instance, if the organization employers process payroll weekly, then weekly is considered as the payroll cycles. The payroll cycle may entail various processes of time recording and attendance and convert of that data into disbursements and payroll calculations. In another perspective, the payroll cycle usually occurs within a given organization and it involves the employees. The organization will calculate the duration of time each employee can work in a day. This time may include the full time and per time working hours(Collins, Fulton, Carsen, and Ford, ADP LLC, 2016).Then every employee in the organization will be paid based on the amount of time they have worked and payments are made after deductions of advances, medical covers, and taxes. The organization must possess the payroll process in place to make sure that the organization employees received an accurate payment on the time. As the payroll procedures vary from one company to another, then the basic payroll cycle usually covers jobs which most organization must perform in order to process their payrolls. The frequency and
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 6 scope of payroll in an organization greatly depend on the payment cycles and the size of the organization. Below are the system flow diagram and a data flow diagram for payroll system. Data flow diagram System flowchart
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 7 Purchasing cycle Purchasing is the action of buying goods and services that the organization needs to operate and manufacture the products. Purchasing procedures are a sequence of activities which are created in order to obtain the right quantity and quality of the product at a reasonable price. The purchasing system in an organization entails the process of categorizing the need of the inventory, place it in order, acquiring the new inventory and also scrutinizing a product which does not meet the demands of the organization. The inventory control will give a clear mandate for product purchase. For instance, if the products of the order do not meet a required standard then the product will remain in with the supplier until it is approved. If the products meet the required standard, for example, if the product quality is high and quantity is accurate at affordable prices then the product will be purchased by using digital platforms. The purchasing processing will
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 8 be done procedurally from one department to another until all the processes are achieved. The purchasing order will be received by the organization to a supplier for goods. After the goods have been received, then the organization will record an inventory of the products which are required to be paid for and then the real amount pays for the products. Most of the business the payment of goods takes place after the purchase goods have been proven that the product is of the right standard.Below is system flowchart and data flow diagram (no copyright infringement is intended) System flowchart
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 9 Data flow diagram Sales cycle This kind of transaction cycles entitles the time when the clients place an order for the product from the business until the time the goods are being received after full payment. The business will receive an order from the customers acknowledge it and produce an invoice for what the customer will be required to pay for the products and then send back to the clients for them to pay in order to receive the product. The importance of the sales cycle is to make sure that the selling price of the product is a given time. While creating a strategic information system, company management should make sure that the effectiveness and efficiency of the sales cycle in the system. Sales cycles have a procedural process, which starts with placing an order and delivering the order. At the sales order department, this is where the entry of the sales order is entering. In entering the sales entries then various processes are needed to be followed. The order from the customers is first taken then it is checked in the credit file. The customer will be given feedback via customer service after the availability of
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 10 inventory in the business has been determined. When customers are registering with this online platform they are required to enter the details one by one. This assist in reducing the error from human, lastly the orders will be approved at the packing store for loading and sealing. In the business in order the credit checking to easier to the customers then it should be automated. Cash disbursement system Every organization, business, and companies require the cash disbursement system that will correctly and efficiently handle the organization cash payments. The accounts payable is linked one on one to cash disbursements and most of the transactions in every business are handled using account payables when the cash payment is being done in business(Morden, 2016).All the cash transaction should be recorded in the business financial records and in addition, proper documentation should be put in place for the effective functioning of cash disbursements.The internal control in the business is very crucial in the cash disbursements system since it makes sure that the cash transaction being made is as per the required standard. System flowchart
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 11 Data flow diagram
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 12 Weaknesses in the Bell Studio system Payroll system The employee at the bell studio usually records their amount of time they have worked every day using the time cards. The manager who is responsible will check the time cards for every employee if it is correct and also if it is well filled and then they will submit it on the payroll department on the weekly basis (Jackman, Herrington, and Putman, Money Network Financial 2015).Sometimes it may be hard time for the supervisor to monitor the progress of the employees and whether they have attended the work since at some point the employees are not trusted in giving information about their worked hours(Peltier, 2016).Also, another weakness of the payroll system is that at some point the connection of payroll system can be access by every employee since it is connected to the center directly to the computer terminals. This may results in the act that at some points the employees may manipulate the information from the payroll system in order to increase their salaries for themselves and on the process the important information may be interfered. At some point since the payroll process is done using the manual system, then it is sometimes exposed to inaccurate data and human error(Sardi, Garengo, and Bititci, 2019) Purchase system The purchase system process at bell studio starts when the clerk who is responsible for purchasing sends a purchase order to the customer. After the submission of the goods then the manual process is applied for the accuracy of data. This process will be time- consuming and tiring since it requires time in feeding it into the computer and also it requires time in entering recording manually and checking whether the data and in manual and digital platform tally(Laudon, and Laudon, 2016).And since manual
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 13 storage of data is good in keeping the consistency of data then it will very hard time for clerk during the time looking at a given data from a given document. The all process might take a lot of time thus it may not be reliable in serving the customers’ needs in the business(Abushova, Burova, and Suloeva, 2016). The manual process has the demerits in that human error will be experienced in the file which contains the data that is being stored thus the need for implementation of an automated system is required so that it will ensure that the information will be available, consistent, accurate, usable and reliable. At the bell studio, the purchase cycle is monitored by the clerk who is responsible for purchasing and they will apply digital technology when determining the need for more stock. Thus utilization of manual process in the bell studio has posted a lot of challenges and there is a need for the establishment of the information system that links the vendors to the internal system (Ogiela, 2016)The process will reduce human labor on the tasks that can be automated in the system. Cash Disbursement system Cash disbursements system is very crucial operations for the smooth running of the system in the Bell studio situation. A high level of strictness and keenness should take note when using the system. The system has also posed a great challenge to the bell studio since the system greatly depends on the paper-based transactions and manual labor. And as a result, this poses a great risk to the business since the confidential of the data will be preserved and human error may occur which will pose a great threat to the data and information in the business. In addition, the Bell studio system has a manual process for an expenditure cycle and the procedure of ensuring a good flow of
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 14 expenditure system since a long process since the clerk is to compare the credibility of receipts and the slips in order to determine if the products are the correct one. Risks associated with the weaknesses in the Bell Studio system Bell studio possesses a weak system that can be vulnerable to the attacks and computer-based threats. These risks usually associated with the complexity and prominence of information that has been exposed, and there need to be measured to avoid them. The risk encounter in the bell studio can be categorized into criminal risks, natural risks, and general risks. The treats which will be encounter in the system are the computer treats which are harmful to the computer system since they can cause great damages (Parents, Hynes, and Sahgal, Mastercard International Inc, 2017).In addition, they may cause great losses to the business, and since Bell studio greatly depends on the computers for their operation then the treatment can cause adverse effects to the system in an organization. Below are major threats in the computer system Human error Always human errors are prone to many errors, even though at some point when employees are working a conducive environment but still the errors will be still encountered, this error entails careless handling of the data, incorrect entry of data and sharing of data with an unknown source (Peppard, and Ward, 2016).This act will greatly affect the purchase system, cash disbursements system and payroll system in the business.
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 15 Computer Viruses and Malware These are programs that will bring malicious functioning of the computer. A computer virus can cause great danger and damages to various computer system thus various transaction in the business will not be able to be carried out appropriately. For example, if viruses attack the purchase system then the customers will not be in a position of placing an order for goods since the data being transmitted will be interfered on the process. Malware is malicious programs which are made in order to make the computer to get damage without the knowledge of the user(Widjaja, and Matitaputty, 2018). These malicious programs will reduce the functioning of the computer system while performing various transactions in the company such as purchases of the products and cash payments. Hardware and software failure The failure of software and hardware in the business may lead to non-functioning of various systems in the organization. For instance, if the Bell studio hardware and software system fail then the system will not be in place of performing various transaction such as purchase transactions, payroll generation, and cash payments. This will give an alternative a using a manual backup in doing this transaction which is very disadvantageous since the process is very procedural, it takes a lot of time and also sometimes the information and data may not be preserved since it can be accessed by anyone and the data can be altered in the process(Swanson, Swanson, and Lindsay, 2017). Hacking, fraud, denial-of-service The information and data which is being processed in the system are prone to hacking and when the data is hacked it may be changed, it may be altered and the all system
STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 16 might fail to work as reduced. Another risk which Bell studio will experience is fraud, this may happen when the data and information of the company are being accessed by intruders and the information and data may be shared to the company's competitors thus secrecy of the company will be exposed. The denial-of-service attack occurs when network traffic is diverted to a certain website repeatedly, in order to overload the server rendering it slow, useless and may also be shut down completely and this may become great risks to the company(Turner, Weickgenannt, and Copeland, 2016). Conclusion In conclusion, it is very clear that Bell studio is now integrating into using strategic information management, in running their businesses activities such in cash payment, in preparation of the payroll and in purchasing of goods. Using a digital platform in the bell studio will ensure that the information and data processing will be more accurate and reliable. Thus I strongly recommend the use of the strategic information system at bell studio for faster processing of data and information.
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STRATEGIC INFORMATION MANAGEMENT FOR ENTERPRISE AND BUSINESS 17 References Abushova, E., Burova, E. and Suloeva, S., 2016. Strategic analysis in telecommunication project management system. Inthe Internet of Things, Smart Spaces, and Next Generation Networks and Systems(pp. 76-84). Springer, Cham. Collins, C.R., Fulton, K.W., Carsen, A. and Ford, J.C., ADP LLC, 2016.On- Demand Payroll System and Interface. U.S. Patent Application 14/682,697. Jackman, R., Herrington, M., and Putman, M.V., Money Network Financial LLC, 2015.Payroll receipt using a trustee account systems and methods. U.S. Patent Application 14/303,755. Jackman, R., Herrington, M., and Putman, M.V., Money Network Financial LLC, 2015.Payroll receipt using a trustee account systems and methods. U.S. Patent Application 14/303,755. Laudon, K.C., and Laudon, J.P., 2016.Management information system. Pearson Education India. Morden, T., 2016.Principles of strategic management. Routledge. Ogiela, L., 2016. Cryptographic techniques of strategic data splitting and secure information management.Pervasive and Mobile Computing,29, pp.130-141. Parento, S.A., Hynes, R.C. and Sahgal, S., Mastercard International Inc, 2017. Payroll system with flexible disbursement options. U.S. Patent 9,613,381. Parento, S.A., Hynes, R.C. and Sahgal, S., Mastercard International Inc, 2017. Payroll system with flexible disbursement options. U.S. Patent Application 15/439,254.
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