Strategic Information System in Rainbow Illusion

Running Head: Strategic Information System in Rainbow Illusion
Rainbow Illusion
Report
System04104
9/9/2019

Strategic Information System in Rainbow Illusion
1
Executive Summary
Rainbow Illusion is a popular name in the New Zealand retail sector. Rainbow
Illusion is a 30-store retail chain organisation that operates its business in New South
Wales and Victoria and dealing with both men and women cloths. However, the
company has its own centralised system that is used in its corporate headquarters
that receives the data from various stores where data is processing manually. This
sales transaction system in the organisation takes too much time to produce the final
reports and information that is required for the management. However, the mixture of
manual data processing and centralised information system helps the access the
accurate data because it is verified at various level of the organisation. However, this
report analyses the strengths of current sales transaction system of the organisation
and analyses that why distributed system is better option for Rainbow Illusion than
centralised system for data processing and storage in the organisation. This report
also compares the centralised system with the distributed system and provides
recommendation to the organisation to improve its sales transaction system.

Strategic Information System in Rainbow Illusion
2
Table of Contents
Executive Summary............................................................................................................... 1
Introduction............................................................................................................................ 3
Six Major Strengths of Sales Transaction System of Rainbow Illusion...................................3
Problem Avoided by the Sales Transaction System of Rainbow Illusion................................5
Situational Pressure that would enhances the Chances of Frauds.........................................5
Centralised System vs. Distributed System............................................................................6
Recommendations for Rainbow Illusion.................................................................................8
Conclusion............................................................................................................................. 9
References........................................................................................................................... 10

Strategic Information System in Rainbow Illusion
3
Introduction
In the ready to wear cloths segment, Rainbow Illusion is a popular name in the New
Zealand retail sector. Rainbow Illusion is a 30-store retail chain organisation that
operates its business in New South Wales and Victoria and dealing with both men
and women cloths. The organisation uses a combination of both men and computer
based sales transaction system in the organisation. The manual transaction and
information processing is done within the stores and there are number of persons
are involved in the recording of data related to sales, cash transaction, invoice
preparation, return slips, and return of products. These data then forwarded to
central or corporate department for the recording of these transactions on Central
processing system. However, the transaction in the retail chain stores takes more
time because of manual work. This report analyse the whole procedure of data
processing and record of transaction in the Rainbow Illusion and explain why
distributed system is more better option for Rainbow Illusion than centralised system.
This report also analyses various strengths and issues of the present information
system of rainbow illusion. In the end of this report, it has been recommended that
why rainbow Illusion should prefer distributed information system over the
centralised processing system.
Six Major Strengths of Sales Transaction System of Rainbow Illusion
Rainbow Illusion uses both centralised system and manual information processing
for the recording of its sales transaction and keeping the cash related record.
Although there are numbers of people involved such as manager, assistant
manager, sales manager, cashier, sales personnel etc. and generate invoice and
sales record for further processing in centralised system in the corporate office.
These people are responsible for sales transaction, keeping records, cash
transaction records including cash collection and matching the bank statement with
sales, and managing inventory in the organisation. Every member and employee
have their own role in processing the information and forward it to the next person in
the people and at the end the report is received by the centralise system in corporate
office for final information processing and helps the organisation to take decision on
information generated by the centralised system. However, the combination of offline