Strategic Information Systems for Business and Enterprise Assignment Sample

Strategic Information Systems
for Business and Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Data Flow Diagram of purchase system and cash disbursement system.....................................3
Data flow Diagram of payroll......................................................................................................4
Flowchart of purchase system......................................................................................................5
System Flowchart for Cash Disbursement system.......................................................................6
System Flowchart of Payroll system............................................................................................8
Evaluating the internal control weakness in each system and risk associated with those
systems.........................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic Information System (SIS) is the development of system software in order to
handle and plan the strategies in response to the Corporate business initiative. These
organizations are generally intended at improving the competitive advantage of the business.
This report will be based on the development of the automated system within the Bell Studio. As
per the recent centralised accounting system within the organization, different DFD diagrams are
provided in the report. The assignment will also help in providing a clear understanding about
exploring the Bell studio's expenditure cycle procedure. This Document will help in introducing
the current purchase system, Payroll system and cash disbursement.
Moreover, The Report will provide different kinds of UML diagrams to determine the
workflow of existing system within the enterprise. It will explore various issues which are raised
within the current system of the Bell Studio. So this study will also helps in identifying such
weakness and also helps in determining the risk associated with those issues.
MAIN BODY
Data Flow Diagram of purchase system and cash disbursement system
The purchase system is mainly aimed at purchasing the inventory from the vendors. This
system allows the clerk in recording and updating the inventory within Bill study. Also this
system ensures the Clerk about the quantity of the requested item and checks thus it helps in
preparing the digital purchase order which generates a printed invoice which is further taken as a
hard copy from the clerk (Foote and Halawi, 2018). This system allows the clerk to update the
information within the main three accounts which are account payable subsidiary ledger, the
account payable control account and the inventory control account.

Furthermore, Data flow diagram for Cash disbursement system allows the the Bill studio
organization in determining the actual payables and receivables of the company. according to
the current centralised system of the Bell studio, the Cash disbursement system allows the Clerk
allow the system to generate the receipt of such required documents which are generated by
Purchasing system. Thus, Both the purchase system and Cash disbursement system allows the
organization to coordinate the actions of the purchasing orders along with the due amount of the
specific vendors. However, most of the work done in both the system is manually performed by
the clerk. So this is one of the great disadvantage of the system (Centobelli, Cerchione and
Esposito, 2018). As such functionality of the system cannot not allow the clerks to focus towards
the strategic planning and improvement within the organization. Instead the clerks are busy at
performing the required operations which are needed to be done manually within the
organization.
Data flow Diagram of payroll
Data Flow diagram can be termed as a way of representing the input processing and
output of the system within the organization. It is mainly used to understand the proper flow of
information which cannot consists of any looping statements, control flows and decision rules
Illustration 1: Dataflow Diagram for Purchase and cash system

etc. This organization have introduced the various different types of systems within business.
Payroll is one of the important part within the company which enables the employees to get the
payment on the basis of their efforts made to make the enterprise successful.
Flowchart of purchase system
This system mainly developed to display the purchase order copy, receiving report and
cheque copy within the different departments of the firm. According to the flow chart of the cash
disbursement system of the organization, it allows the clerk to update the account payable
subsidiary ledger (Foote and Halawi, 2018). This system also helps the clerk to inspect and
reconciles the items against the the information displayed in the digital purchase order and the
packing slip. This system also allows the clerk to store and update the inventory within the
purchasing system. According to the information generated by the purchasing system within the
Bill studio, the account payable department of the organization gets the the updated information.
This further helps in updating the inventory subsidiary ledger
Illustration 2: Data Flow Diagram of Payroll System

System Flowchart for Cash Disbursement system
The Cash disbursement system allows the clerk to update the cheque register which
consists of the payables and receivable records of the organization. Finally, whole process within
the cash disbursement system helps in receiving the invoice, purchase order, receiving and
cheque copy within each department of the firm. This system allows the functionality allows the
clerk to file the payment of the vendor until the due date (Al-Fedaghi and Alduwaisan, 2018).
This system helps in preparing the invoiced statement for the account and thus this invoiced are
accomplished by signing the amount of due date to the specific vendor.
Illustration 3: Flow chart of Purchase System

System flow chart is the physical design of the software which helps in displaying the
operations within the Strategic information system developed within the Bill studio (Lu and
et.al., 2018) (Shanks and et.al., 2018). System flow diagram for the Cash disbursement system
within the organization helps in determining the flow of information within the organization. It
also allows the Clerk to register and record the cash flow of the company along with the cheque
dues of suppliers and employees dues of the organization.
System Flowchart of Payroll system
Illustration 4: System flow Chart for Cash disbursement within Bill studio

Developing the payroll system flowchart helps in streamlining the process of the
company. It also helps in determining the main process and information flow of the system
which helps the software developer of the company to identify the illustrate the portfolio which
helps in understanding the start and finish (Shao, 2019). This mainly aimed at processing the
cheques of the employees suppliers and creditors of the company and this system allows in
understanding that how system exactly works in terms of distribution of the cheques according to
the payslips of the employees within the company.
The flow chart represents the process of data flow within in employing the payroll system
within the organization. According to the existing payroll system within Bell studio, work hours
and of the individual employees are recorded on a daily basis and thus it allows the payroll clerk
to input the data of their working hours and update the records of the employees digitally.
Evaluating the internal control weakness in each system and risk associated with those systems
In Bell studio the current systems explained above are not effective and efficient enough
to contribute towards the overall growth and development of the business. Internal control
weakness expose a business to any number of preventable risks. Internal Control is a significant
and thus need to be rectified or detected on a timely basis. As the internal weakness within the
Illustration 5: Flowchart for Payroll System within Bell studio

automated systems of the business can be termed as the deficiency or a combination of
deficiency which may impact the company's annual or interim financial statements. Current
Strategic systems within the organization are inefficient and ineffective to coordinate with the
external market and therefore this results in mismanagement of the business which produces
lower lower profits for the organization. So various weakness experienced within the the
centralised existing system of the Bell Studio are as follows. Along with this, Risk associated
with such weakness will also be explored below.
Purchase System
One of the great weakness associated with this system is the manual work in which clerk
checks the inventory subsidiary ledger. So this is the time consuming activity in which restricts
the efficiency of the procedure (Dennis and Wixom, 2018). Also, another weakness associated
with the purchase system is Manual selection of the vendor from vendor file in order to make
the purchase order. The further process carried out on a traditional method in which two hard
copies are generated by the clerk and one among them is sent to the particular vendor and
another is filed in the purchasing department.
Furthermore, the inspection is also done manually by the clerk which can be considered
as one of the important weakness of the purchasing system. Development of the system within
the business in mainly focused at the automated and efficient work but here in presence of the
purchase system, clerk is doing all the tasks manually which is the biggest weakness of
employing this system within the organization. In addition, Two hard copies of the packing slip
are again prepared manually among which one slip is helps the clerk in updating the inventory
within the shelves of the warehouse. Updation of the ledger according to the transactions within
the inventory which allows the clerk in receiving the report in the department. It arises one more
weakness of the system in the form of coordination with the account payable department. It
is filed within the system after the invoice arrival from the side of the suppliers. However, one
more weakness experienced is the Updation of the purchase order at three different
documents (Foote and Halawi, 2018). This can also be considered as the biggest weakness of
the system as manual work includes many errors so clerk need to concentrate towards the
updating of the transaction status at 3 different units such as Digital, account payable subsidiary
ledger, The account payable control account and the inventory control account. Again the

weakness occurs is that the clerk need to forward the copy of invoice, receiving report and the
purchase order to the cash disbursement department.
Risk: As the current purchase system includes more manual efforts then automated so there is a
lot of risks associated with the human errors. There are various different kinds if risk associated
with the purchase system within the bell studio such as:
 There is a risk of wrong selection of the vendor and also Here in this system Clerk checks
the ledger of the inventory system. So it may be possible that sometime clerk misinterpret
the statement which directly impacts on the financial performance of the business.
 Manual ledger updation and vendor selection is time consuming process so the risk
associated with this weakness is the lack of sustainability and growth of the business. The coordination with the account payable system during the invoice arrival of the
vendor may occur the risk of Updated accounting information which may be a great risk
due to the human errors.
Cash Disbursements system
One of the great weakness associated with the Cash disbursement system is the
preparation of the cheque on the due date (Gelu, Sarno and Siahaan, 2018). So, this is also a
time consuming process in which There are various possibilities that Clerk may miss the due
date and do not remember to prepare the cheque. Also, there is one more disadvantage which
include manual updation of the Cash Disbursement system within the cheque register,
account payable, subsidiary ledger and account payable control account. Filing of such invoice,
purchase order, receiving report and the copy of the cheque in the department.
Risk: There are lot of Risks associated with such weaknesses which raised within the cash
disbursement system within the Bill studio, such risks are as follows:
 There is a risk regarding the missed due date which directly reflects the bad impression
on the vendor.
 It may possible that due to the late submission of the amount, vendor may compromise it
with the quality of the raw material (Hossain, 2018). There is a huge risk of Customer
satisfaction. There is a possibility of wrong cash disbursement which may effect wrongly done
transaction within the business. So there is a risk of Wrong ledger transaction which may
impacts overall financial performance.

Payroll System
Weaknesses of the Payroll system within the Bell studio consists of various issues such as
recording the working hours of the employees on daily basis. This is one of the biggest
weakness as it consumes huge time as supervisor checks correctness of such recorded work
on the system. After collecting the information from the employer and checking the correctness
of the collected data, one more weakness of the system arises that is Clerk prints the hard copy
of pay cheques and post this to the records of the employees digitally. Also, it is experienced
that current Payroll system allows the clerk to prepare the manual disbursement voucher (Laguna
and Marklund, 2018). The account payable clerk also writes the cheque manually for the
entire payroll of each employee at the bank.
Risk: Weakness within the Payroll system of the Bill studio is reflects certain Risks within the
overall operations of the business and such Risks occurred from the weaknesses of payroll
system are as follows:
 Huge risk arises from the weakness of the Payroll system is Checking the correctness of
the working hours of the individual employee.
 Time card need to be updated on daily basis so supervisor need to daily focus in the
repetitive work which is one of the great risk within this system.
 Wrong interpretation of the Ledger may responsible for the imbalanced financial
statement of the company.
 In case if the cheque cannot be timely managed then it raise the risk of cheque bouncing
from the side of the bank and thus results in legal and legislative issues.
CONCLUSION
From the above study, it can be concluded that development of the strategic system
within the organization helps in increasing the efficiency and effectiveness within the operational
functions of the business. Also, this report has introduced three different types of systems within
the organization which supports the automated functions within Bell studio. The document has
explored the functionalities and data flow of the individual system within the organization.
In addition to this, it has been identified that current system of the organization has
various weaknesses due to which various the company is facing various challenges. Such
weaknesses has also been described above. Along with the weakness there are huge risks
associated, that impacts on the effective and efficient operations of the business. All the systems

has been explained in the form of Unified Modelling language Diagram. So therefore, Data flow
Diagrams are also explained in the study which depicts the functionality of purchase system,
Cash disbursement system and Payroll system specifically. Along with this System Flow chart
system of the Payroll system and cash disbursement system has also been described in the report.

REFERENCES
Books and Journals
Al-Fedaghi, S. and Alduwaisan, Y., 2018, April. Modeling of an enterprise and information
system: process specification based on the flow of things. In Proceedings of the
International Conference on Geoinformatics and Data Analysis (pp. 142-150). ACM.
Centobelli, P., Cerchione, R. and Esposito, E., 2018. Aligning enterprise knowledge and
knowledge management systems to improve efficiency and effectiveness performance: A
three-dimensional Fuzzy-based decision support system. Expert Systems with
Applications. 91. pp.107-126.
Dennis, A. and Wixom, B.H., 2018. Systems analysis and design. Wiley.
Foote, A. and Halawi, L.A., 2018. Knowledge management models within information
technology projects. Journal of Computer Information Systems. 58(1). pp.89-97.
Gelu, P., Sarno, R. and Siahaan, D., 2018. Requirements Association Extraction based on Use
Cases Diagram. Lontar Komputer: Jurnal Ilmiah Teknologi Informasi. pp.11-19.
Hossain, M., 2018. Loan disbursement and recovery system of Janata Bank Limited.
Laguna, M. and Marklund, J., 2018. Business process modeling, simulation and design.
Chapman and Hall/CRC.
Lu, X. and et.al., 2018. The process flow optimisation of crankshaft machining considering
production logistics. International Journal of Industrial and Systems Engineering. 30(2).
pp.125-137.
Shanks, G. and et.al., 2018. Achieving benefits with enterprise architecture. The Journal of
Strategic Information Systems. 27(2). pp.139-156.
Shao, Z., 2019. Interaction effect of strategic leadership behaviors and organizational culture on
IS-Business strategic alignment and Enterprise Systems assimilation. International
Journal of Information Management. 44. pp.96-108.
Wenner, G. and et.al., 2018. Organizational models of mobile payment systems in low-resource
environments. Information Technology for Development. 24(4). pp.681-705.
Online
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