Strategic Information System for Business and Enterprise

This report discusses the processes, risks, and internal controls associated with the strategic information system for business and enterprise. It includes data flow diagrams and system flowcharts for different systems. The report identifies internal weaknesses and associated risks in the cash disbursement system, payroll system, and purchasing system. The analysis aims to help the organization become more efficient and productive.

Running head: STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Strategic Information System for Business and Enterprise
[Name of the Student]
[Name of the University]
[Author note]

1STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Executive Summary
Bells Studio is an organization associated with dealing with the Adeline based art
materials which is associated with including different kind of processes. In this report we would
be mainly discussing about those processes, along with the risks and the internal controls
associated with it. For depicting a brief understanding of the different kind of processes a data
flow diagram has been created for the cash disbursement system, the payroll system and the
purchase system as well. The main reason lying behind the conducting of the detailed analysis of
the processes is aimed at identification of the internal weaknesses existing the system of Bells
studio. The identification of the internal weaknesses is associated with helping in the
identification of the risks which are seen to be associated with this weaknesses.

2STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Table of Contents
Introduction:....................................................................................................................................3
Data Flow Diagram of Purchases and Cash Disbursements Systems.............................................4
Data Flow Diagram of the Payroll System of Bell Studio...............................................................5
System Flowchart of the Purchases System of Bell Studio.............................................................6
System Flowchart of the Cash Disbursements System of Bell Studio............................................7
Flowchart of the Payroll System of Bell Studio..............................................................................8
Identified internal weaknesses and the associated risks:.................................................................8
System: Cash Disbursement System...............................................................................9
System: Payroll System.................................................................................................10
System: Purchasing System:..........................................................................................11
Conclusion:....................................................................................................................................12
References:....................................................................................................................................14

3STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Introduction:
Bells Studio is an organization associated with dealing with the Adeline based art
materials which is associated with including different kind of processes. The organization is an
existing leading player in the industry of art materials and is associated with the importing of raw
materials from various section of the world which mainly includes Japan, China, Australia and
New Zealand. The organization is associated with usage of a centralized system by making use
of computers so as to conduct the various kind of processes. In this report we would be mainly
discussing about those processes, along with the risks and the internal controls associated with it
(Wisnubhadra and Adithama 2017). For depicting a brief understanding of the different kind of
processes a data flow diagram has been created for the cash disbursement system, the payroll
system and the purchase system as well. Besides this in the report the data flow of the different
processes existing in the Bell studio has also been depicted (Nofal and Yusof 2015). The main
reason lying behind the conducting of the detailed analysis of the processes is aimed at
identification of the internal weaknesses existing the system of Bells studio. The identification of
the internal weaknesses is associated with helping in the identification of the risks which are seen
to be associated with this weaknesses.
The detailed analysis has been associated with helping in the identification of the fact that
there exists numerous way by which the organization Bells Studio is conducting its businesses.
However along with this finding it is also identified that there are certain faults along with
certain weaknesses which are initially responsible for making the organization face certain risks
(Palilingan and Mario 2018). There are numerous weaknesses amongst which the most important
one is the dependency upon the human based resources which in turn is associated with
increasing the risk related to making of mistakes by human beings.

4STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Data Flow Diagram of Purchases and Cash Disbursements Systems
Figure 1: Data flow Diagram of Purchasing System and Cash Disbursements Systems
(Source: Created By author)

5STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Data Flow Diagram of the Payroll System of Bell Studio
Figure 2: D F D of Payroll System
(Source: Created By author)

6STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
System Flowchart of the Purchases System of Bell Studio
Figure 3: Flowchart of the Purchases System
(Source: Created By author)

7STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
System Flowchart of the Cash Disbursements System of Bell Studio
Figure 4: Flowchart of the Cash Disbursements System
(Source: Created By author)

8STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Flowchart of the Payroll System of Bell Studio
Figure 5: System Flowchart of the Payroll System
(Source: Created By author)
Identified internal weaknesses and the associated risks:
The analysis have been associated with helping in identification of the different kind of
internal weaknesses in the three major process of the organization Bells Studio which includes
the cash Disbursement system, payment system and the payroll system (Irfan et al. 2018). This
section would also be discussing about the various kind of risks as well which are seen to be
associated with the internal weaknesses. It is not possible to ignore all this internal weaknesses
as the risks which are put forward by the weaknesses would be encountered by the entire
organization Bell Studio and the impact on the organization would be devastating. The
identification of the weaknesses would be helping in the formulation of certain strategies which
would be entirely responsible for helping the organization in becoming efficient as well as
productive. Besides all this by considering the criticalness of the processes it can be stated that

9STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
any kind of alterations in the processes would be having a disruptive effect upon the
organizational operations (Alamri et al. 2016). The organization has been seen to be associating
itself with the usage of various outdated system which are seen to be lagging behind a lot in
terms of the update patches and other updates. Another major gap which is identified includes
the long term usage of the software which means the software being used are many years old and
have not been updated since years.
System: Cash Disbursement System
Internal weakness:
The entire process being manual might be associated with leading to making of mistakes
in during writing the cheques.
Risk:
This mistake in the cheques is associated with leading to rise of the risks related to the
monetary losses which are responsible for effecting the organization adversely.
Internal weakness:
The process of encashing the cheques is a very long process which is considered to be
another major weakness of the cash disbursement system.
Risk:
This weakness in turn is associated with putting forward of the risks related to customer
dissatisfaction (Matrane et al. 2015). The reason behind dissatisfied employees is the late
receiving of the salaries because of the long process of encashment.
Internal weakness:

10STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Another major weakness which is faced by the system is the including of manual
processes which might lead to misplacement of the files which are regarding the paid cheques
Risk:
This weakness in turn is associated with putting forward of the risk related to mismatch
of the ledger during the process of calculating the expenses which has been made in a year and
this in turn would be responsible putting forward of the problem related to wrong calculation of
the entire budget.
System: Payroll System
Internal weakness:
The entire process of transactions conducted by means of cheques and this in turn is
associated with putting forward of another major weakness which means for encashment even a
cheques having small amount is to be deposited to the bank which turns out to be an extra burden
imposed upon the entire system (Rao and Kumar 2017).
Risk:
This weakness is associated with putting forward of the risk related to extra need of time
and the reason behind this the taking of extra time taking for completing the entire payroll
process.
Internal weakness:
The manual process of the system is associated with putting forward of another major
weakness which is associated with including the making of mistakes while creating copies of a
payroll register or a voucher.

11STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Risk:
This internal weakness in turn is associated with putting forward of the risk related to
human errors which includes the probability of increased mistakes while conducting the various
business operations (Ankrah 2016).
Internal weakness:
Another major weakness is the manual entering of the register for recording the entry and
the exit time of the employee which might lead to incorrect recording of the timings.
Risk:
This internal weakness in turn is associated with putting forward of the risk related to
incomplete working shifts which in turn is associated with effecting the productivity of the
organization as the employees would be working less and not meeting the shift hours.
System: Purchasing System:
Internal weakness:
One of the major weakness which this particular system is having is the dependency of
the entire system upon the purchasing clerk.
Risk:
This internal weakness in turn is associated with putting forward of the risk related to
entire stopping of the process in case of absence of the payment clerk.in addition to this the
involvement of the payment clerk is associated with taking a long time for completing the entire
process (Ibrahim and Naem 2019).

12STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Internal weakness:
Second weakness which is encountered by this system is the slow speed of the process
and the reason behind this is the involvement of the payment clerks and the usage of the manual
processes for conducting all the works.
Risk:
This internal weakness in turn is associated with putting forward of the risk of slow
processes which in turn is associated with leading to the problems like empty inventory for a
longer time period which in turn might be responsible for making the business lose a huge
number of customers (Jahantigh, Habibi and Sarafrazi 2019).
Internal weakness:
Another major weakness of this system is that it is associated with including many
documentations and includes the human resources so as to manage the documents.
Risk:
This internal weakness in turn is associated with putting forward of the risk related to
making of mistakes by the human resources which might lead to devastating effects and make
the organization suffer from huge losses (Rogers 2016).
Conclusion:
The report presented above is associated with providing a brief overview of the
organization Bells Studio along with the different kind of systems which are used by the
organization. In this report the three major systems exiting in the organization has been analyzed
which mainly includes the cash disbursement system, the payroll system and lastly the payment

13STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
system. This report is presented from the view point of a business analyst which is to be provided
to the chief operating officer of Bells Studio so as to help in evaluating the different processes of
the organization and for identification of the internal weaknesses as well. The report is also
prepared for the purpose of identification of the major risks as well which are seen to be
associated with the internal weaknesses. This report has not only been associated with finding
out and analyzing the major processes but is also associated with identifying the subsystems as
well and all this have been briefly elaborated in the Data flow diagram and the system flowchart
depicted above in the report.
The report has presented the Data flow diagram which is not only associated with
depicting the major systems but is also associated with depicting the sub-systems as well which
in turn is associated with helping in presenting a brief overview of the different processes which
are conducted by this systems. In addition to this the system flow chart which has been created
helps in better understanding of the flow of the processes in the three major systems which
mainly includes the cash disbursement system , the payroll system and the payment system. The
last section of the report highlights all the major weaknesses that the three major systems namely
the cash disbursement system, the payroll system and the payment system are having along with
making sure of identifying the risks which are associated with all this internal control
weaknesses. The major risks and the internal weaknesses are mainly seen to be existing because
of the involvement of numerous manual processes into the systems which in turn is associated
with increasing the probability of increased risks.

14STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
References:
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planning: A case study of a service delivery company. Int. Adv. Res. J. Sci. Eng. Technol, 3(5),
pp.78-84.
Ankrah, E., 2016. Strategic Issues in Information Systems Planning from the Ghanaian
Perspective. International Review of Management and Marketing, 6(4).
Ibrahim, A.A.A.E. and Naem, A.E.H.M.A., 2019. THE IMPACT OF STRATEGIC
INFORMATION SYSTEM AND STRATEGIC DESIGN ON ORGANIZATION'S
COMPETITIVENESS: A FIELD STUDY. Academy of Strategic Management Journal, 18(1),
pp.1-12.
Irfan, M., Putra, S.J., Alam, C.N., Subiyakto, A. and Wahana, A., 2018, March. Readiness
factors for information system strategic planning among universities in developing countries: A
systematic review. In Journal of Physics: Conference Series(Vol. 978, No. 1, p. 012046). IOP
Publishing.
Jahantigh, F.F., Habibi, A. and Sarafrazi, A., 2019. A conceptual framework for business
intelligence critical success factors. International Journal of Business Information
Systems, 30(1), pp.109-123.
Matrane, O., Talea, A., Okar, C. and Talea, M., 2015. Towards A new maturity model for
information system. International Journal of Computer Science Issues (IJCSI), 12(3), p.268.

15STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Nofal, M.I. and Yusof, Z.M., 2015, August. Critical success factors enhancing enterprise
resource planning systems implementation in Jordanian SMEs. In 2015 International
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Rogers, C., 2016. Proposed Enterprise Architecture solutions for Industry 4.0 Manufacturing
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