Strategic Information Systems for Business: Bell Studio Case Study

This case study analyzes the strategic information systems of Bell Studio, a manufacturing organization. The assignment examines the purchase, cash disbursement, and payroll systems, including flowcharts and data flow diagrams (DFDs) for each. It details the processes within each system, from purchase order generation to employee payment. The report also identifies internal control weaknesses and associated risks within each system, such as inefficiencies in the purchase process and potential data redundancy in the payroll system, including the impact of these weaknesses. The case study concludes by evaluating the impact of these issues on the organization's efficiency and financial performance.

Running head: STRATEGIC INFORMATION SYSTEM
STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND
ENTERPRISE – Case Study Bell studio
[Individual Assignment]
Name of the Student
Name of the University
Author Note

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Executive summary
The main purpose of the assignment is to address the different system that is
present within the Bell studio. Purchase system is one of the important processes
that check the purchase details regarding inventory subsidiary. The report will focus
on developing a flow chart on the three system associated with the organisation. The
flow chart for different system that is the payroll system, cheque disbursements
system and purchase system are going to explained within this assignment. Along
with this the report will also focus on developing data flow diagram for these
systems. The last part of the report will focus on describing the internal weaknesses
that are faced with the working of this system. Lastly the report will provide the risks
that are likely to impact the working of the organisation within each system.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Table of Contents
Purchase system..........................................................................................................3
System for cash disbursement.....................................................................................3
DFD for cash disbursement system and purchase system..........................................3
Payroll system for Bell studio.......................................................................................4
DFD for payroll system.................................................................................................4
Purchase system flowchart...........................................................................................5
Cash disbursements system flowchart.........................................................................6
Flowchart for payroll system.........................................................................................7
Internal control weaknesses for the major systems within Bell Studio.........................8
Internal weakness and risks for payroll system............................................................8
Purchase system internal weakness............................................................................9
Cash disbursements internal weakness.....................................................................10
Conclusion..................................................................................................................10
References.................................................................................................................11

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Introduction
Bell studio is an organization that works for manufacturing art supplies. The
assignment is going to explain the main facts associated with the organisation. The
manufacturer aims at working on Australia, Japan, New Zealand. The organisation
has developed proper networked terminals at different locations that help in
maintaining proper working of the system. The report will focus on the main system
associated with the organisation. The focus of this assignment is to address the
major systems of Bell studio so it becomes easy to determine the working of each
system.
Purchase system
The purchase system mainly focuses on processing the data once the clerk
checks inventory subsidiary ledger. The clerk is allowed to select proper purchase
vendor and can make purchase order whenever the quantity of item present in the
organisation falls down. Clerk has the authority to print two hard copies about the
purchase order that are further processed to vendors and in purchasing department.
After these the purchase order gets recorded digitally within the purchase system. In
addition to this whenever the item is being received by the department than it is
being inspected by inspection clerk. The inspection clerk than reconciles each items
with the purchase slip so that it becomes easy to check the order details. After this
the clerk prepares two copies of reports that are further circulated to inventory
warehouse and the other one towards the accountant payable clerk. The accountant
waits for the invoice statement from the supplier so that they can stay updated
regarding the details. The clerk is responsible for processing the invoice, receiving
the reports and the order copy of purchased items.
System for cash disbursement
The clerk checks the documents related to account payable department. Each
document gets stored within the system effectively so that it becomes easy to
address the requirements. Clerk is mainly responsible for preparing the invoice
statements that is sent to the respective treasure. Treasure in return signs the
cheque and mails it to their respective vendor. After this the clerk of cash
disbursements system updates the cheque register, account payable control and the
ledger. The system ends it process by sending invoice statement towards the clerk,
receives report, a cheque copy and details regarding the purchase orders.
DFD for cash disbursement system and purchase system
From the dfd it can be stated that the system has performed all the activities
efficiently so that it can help in achieving the goal. The dfd developed for this system
includes all the major activities that are taking place within the system. Thus it can be
stated that the main function is to check the cash payments effectively so that no
error can occur within the system.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Payroll system for Bell studio
The payroll system of Bell studio mainly focuses on recording the working
hours on time cards so that it can be used in future for the purpose of calculating the
payments that are needed to be made towards the employees. The supervisor are
responsible for understanding the correctness that helps in processing the money
through each department. The payroll system includes a clerk that is responsible for
providing input regarding the card data , prints copy of payroll registers and prepares
post for having a proper digital employee records. The payroll clerk shares the copy
of payroll registers to payable department so that it becomes easy to access the
payment that is going to be processed towards each employee. After this the ledger
clerk receives the voucher and payroll register so that proper payment can be
processed within the time.
DFD for payroll system
The main components that are related to payroll system are account payroll
clerk, supervisors, payroll clerk. These entities are responsible for performing the
main functions within the systems and reviews each functions associated with the
payroll register. Account payroll clerk are also responsible for analysing the total
balance that is present within the account.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Purchase system flowchart
The diagram helps in understanding the purchase system for Bell studio
organisation. After analysing the activities associated with the purchase system it
can be stated that the process starts once the purchase clerk starts checking the
system and it gets ended once the system sends report regarding the payments. The
aim behind developing this diagram is to understand purchase controls associated
with the vendors.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Cash disbursements system flowchart
The cash disbursements system mainly aims at focusing on the cash that is
being processed for vendors and records all the details regarding each transaction.
The main components of this system are clerk, treasure, vendors and receiving
clerk.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Flowchart for payroll system
The payroll system flowchart aims at addressing the payments that are made
by the organisation towards their employees. After analysing the activities present

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
within the system it can be stated that the salary option is provided for generating
proper amount of money within a fixed time period.
Internal control weaknesses for the major systems within Bell Studio
Internal control weaknesses are referred to the issues that are present within
a system. Thus it becomes important to address these issues so that the system can
perform every task effectively without any problem. This part of the report will focus
on describing the control weaknesses faced with the payroll system, cash
disbursements system and the purchase system.
Internal weakness and risks for payroll system
The payroll system of bell studio mainly concerns on making the payment
within the system. Thus it becomes essential to focus on the payments made by the
organisation towards the employees. The main weaknesses that are identified with
the use of this system include the improper way of accessing the controls present
within the accounting system. It is observed that while using the accounting system it

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
becomes difficult to address all the working of the system. It becomes essential to
have an authenticate payroll system so that it can calculate the exact amount for the
employees. It is the responsibility of each employee to provide the working hours
details.
This will eventually help in calculating the working hours effectively. In
addition to this the system also includes data regarding the different supervisors and
the users responsible for reviewing this process. The account payroll clerk is
responsible for reviewing the supervisors so that they can create proper data.
However when same data are being accessed by different supervisors the chances
of errors increases. In addition to this the time consumed by each supervisor
increases the time for performing the task. Apart from this the system also includes
reconciliation of the same data many times. These are conducted by the supervisors
before processing the payment. This consumes maximum time and affects the
process going on within the organisation.
Risks
Main risks that are associated with the payroll system includesThe main risks
that are associated with payroll system include employer dissatisfaction employ
dissatisfaction has increased As there is a need to have proper analysis of all the
activities. Over it is of served that before processing any payment towards the
employee every details are being analysed by different supervisors of the
organisation bell studio. The details associated with the timecard are being reviewed
frequently so that it can help in generating fix amount of profits towards the
organisation. However this leads to increase in dissatisfaction rate of the employees
that will eventually lead to hampering the working of Bell studio. Employees are the
main asset of every organisation thus it is necessary to maintain a proper
relationship with them so that they can rely on the organisation. However it is
observed that due to continual reconciliation before payment effects the trust of
every employee. In addition to this it is observed that the data redundancy increases
within the system the main reason behind data redundancy is that during supervising
every supervisors stores same data sets within the system this leads to impact the
storage condition of the system. This further impacts the revenue as there will be a
need to have new storage space for the system.
Purchase system internal weakness
The internal weakness that is identified with the purchase system is the
lengthy process of inspection. It is observed that the process involved in payment
include authorisation from different departments. The payment is only process when
every department supervisors agrees on the term. Each data are processed
effectively so that they can process right amount of payment. This becomes a
lengthy process as it involves several authorities for inspection. Thus this turns to be
one of the main weakness associated with the system.
Risks
The main risk that arises with purchase system is the lengthy process in
purchase system leads to inefficient control over the organisation. This eventually
leads to impacting the activities performed by the system and also causes great loss
towards the revenue. Performing same task by different supervisors reduces the
efficiency and also decreases the performance of the system.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Cash disbursements internal weakness
The internal control weakness is associated with cash disbursement system
includes in proper control over the system. In addition to this it is also observed that
after analysing the organisational behaviour can be stated that the cash
disbursement gets affected with improper cash flow. The main motive of using cash
disbursement system is to check whether the system is able to make decisions
properly while processing the cash towards the employees. Adoption has also
become one of the major issues that affect the organisational procedures.
Continuous change in process leads to affecting the developing time needed for
implementing the. Always the internal control weakness that is identified with the
cash disbursement system is the exercise that is used for managing the cash within
the system.
Risks
Main risks associated with cash disbursement system includes irregular
procedures taking place within the system has the ability to impact the performance
of the cash disbursement system. This further leads to hampering the working of the
system. in addition to this it can be stated that there are several processes that takes
place within the system. It is observed that there are several procedures that takes
place within the cash disbursement system this procedures are needed to be
addressed efficiently so that the the chances of errors can be minimised. Apart from
this the unorganised procedures have increased within the system this leads to
create ineffectiveness in the cash disbursement procedures. the cash disbursement
procedures are mainly aims at providing proper amount of payment towards every
employees.
Conclusion
Thus from the above system it can be stated that the main process associated
with purchase system is checking the inventory subsidiary ledger. On the other hand
cash disbursements system aims at checking the documents related to the payable
department. In this system the clerk aims at preparing the cheque regarding to each
invoice. Lastly the payroll system aims at focusing on the payments that are made by
the system towards their employees. Thus it can be concluded that the report has
described the internal control weakness associated to payroll system, cheque
disbursements system and the purchase system. Thus with the help of flow chart
and dfd it can be stated that it becomes easy to understand the working that is taking
place within each system.

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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
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