Strategic Information System for Business and Enterprise

STRATEGIC INFORMATION
SYSTEM

Executive Summary
This report explains concepts on strategic information system for business and
enterprise in details such as e-commerce, financial reporting, transaction cycles,
management reporting systems. It also outlines in detail internal controls and highlights
some weaknesses and risks. The Internet has made business or enterprise deliver their
services and goods in speed thus e-commerce. Financial statements and reports must
be accurate and provided on time to enhance the decision-making process which is all
about proper financial reporting. For a business to be efficient and effective in its tasks,
a better analysis of transaction cycles which helps in identifying particular tasks in every
cycle and this analysis helps in coming up with a report that plays a major role in
business performance. Effectiveness of the management information system enables
information movement within an enterprise smooth hence better decision making and
planning. Internal control processes within a business structure should set to ensure
resources are not misused, accuracy in information, regulations are followed to the
letter, and protection of business assets hence preventing errors and irregularities,
identifying problems, etc. These internal controls processes have some weaknesses
while if they are or aren’t implemented and also risks.

Table of Contents
Report................................................................................................................................1
Executive Summary...........................................................................................................2
Introduction........................................................................................................................3
Transaction cycles.............................................................................................................3
Financial Reporting............................................................................................................4
Benefits of Financial Reporting......................................................................................4
Management Reporting System........................................................................................4
Why acquire a management reporting system?............................................................5
Features of an effective management reporting system................................................5
E-commerce.......................................................................................................................5
Types of e-commerce.....................................................................................................6
Features of E-commerce................................................................................................6
E-commerce risks...........................................................................................................6
Data flow diagrams of different systems...........................................................................7
Purchases system Data flow diagram............................................................................7
Cash disbursements system Data flow diagram............................................................8
Payroll system Data flow diagram..................................................................................9
Flowcharts of the systems...............................................................................................10
Purchases system flowchart.........................................................................................10
Cash disbursements system flowchart.........................................................................10
Payroll system flowchart...............................................................................................11
Weaknesses and Risks in the above systems................................................................11
Internal control practices with respective weaknesses and risks....................................12
i) Review and reconciliation......................................................................................12
ii) Assets security.......................................................................................................13
iii) Separation of duties...............................................................................................13
iv) Authorization..........................................................................................................14
Conclusion.......................................................................................................................15
References.......................................................................................................................17

Introduction
Business strategies are the key things to business prosperity and realization of new
opportunities. They vary from different areas or fields in this report a few are looked at
this are e-commerce, financial reporting, transaction cycles, management information
systems where every growth in any enterprise or business is affected by them. Internal
control practices ensure the proper business or enterprise functioning whereby they are
also having some weaknesses and risks. All these scenarios are well discussed in this
report.
Transaction cycles
Generally, any transaction within a business or enterprise is interweaved into
transaction cycles and they are meant to achieve certain tasks. Most of the enterprise or
business processes (payments, purchases, sales) which results in transaction cycles.
The following are types of transaction cycles: Payroll cycle, purchasing cycle, sales
cycle, financing cycle. (Soeters, 2014).
1. Financing cycle. Deals with activities within the business or enterprise that
requires finances and also economic activities mapping using charts.
2. Purchasing cycle. This cycle deals with order purchases from vendors or
suppliers. So, it’s all about products or service transactions between the vendor
and the enterprise.
3. Sales cycle: Deals with the products and customer needs. It also involves the
reviewing and correcting of orders made by customers.
4. Payroll cycle. Deals with management of employees or workers payments within
an enterprise or a business. Functions of payroll cycle: cheques issuing,
deduction of taxes, workers’ time recording. There are systems that are installed
to perform those functions.
Financial Reporting