Strategic Information Systems: An Analysis of Business Processes

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Strategic Information Systems for Business and Enterprise
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Executive Summary:
During the study, various point in the relevance of system management between the
organization and major weakness of the system which is implemented in the
organization are discussed. During the study, Data flow diagrams are used to
understand the flow of information in the company and also identified eh weak point of
the organization.
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Table of Contents
Executive Summary:................................................................................................................................2
Introduction:...............................................................................................................................................4
Purchase System......................................................................................................................................5
Cash disbursement system:-...................................................................................................................9
Payroll system.........................................................................................................................................13
Conclusion:..............................................................................................................................................17
References:.............................................................................................................................................18
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Introduction:
Project is major used to identify the weakness of the system which is implemented in
the organization. To identify the weakness of the business company used major system
process of cash disbursement, Purchase and Payroll system so that management is
able to understand the weakness in the business activities for the company. Further
Data flow diagrams are used to interpret the flow of information in the business
department for the company to identify the loophole in the business activities.
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Purchase System
Purchase is the major process which is used by any of the company to acquire the raw
material for their production units. Further, this process is most lengthy for the company
and also very important for the company as it includes various parties and odes in their
network for the purchase of the goods (Pred, A., 2017). Purchase process starts from
the application of purchase request for the company and end with the entry of good in
the record of the company. This process had many of the authority which needs to
interact with each other while executing the purchase order. This can be a major conflict
between the authority and it results in a material loss in the system for the company.
Purchase is one of the most basic and important functions of any entity.
Purchase can be a system which needs a high standard of control to ensure the
minimum material loss in the production activities of the business. This process majorly
impacts on the process of the company which can be even financial loss due to
unavailability of the material for production or also can be an additional cost of over
inventory in their stock so majorly Purchase system need to be appropriate and
according to the standard of the company. To maintain the framework and ensure the
minimum cost of the projects company need to follow certain steps in the system so that
they are able to understand the whole process of purchase and identified the issue in
the system for the company.
 The company needs to ensure that they have generated electronic Purchase order
which is followed by proper authentication in the company.
 With the help of IT, System Company can safeguard the important data and records of
their supplier in the market which can be helpful in the near future for the company.
 Further Management needs to minimize and avoid the cash payment of the purchase of
raw material excluding emergency conditions.
 Management needs to maintain proper authentication at the end of each process so
that the company can ensure the process flow of inventory in the company.
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Purchase System Flow Chart
Purchase System Weaknesses:
Every System had some of the loopholes in their working which needed to be
recognized by the company. Purchase system has some of the issues which are
needed to be recognized by the management for the better flow of the information in the
system and also improve their control on Inventory movement within the organization for
the company. Some of the weaknesses are discuses below which are needed to be
considered by the management to determine the corrective strategic decision for the
company.
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 In the current scenario, the company's purchase system collaborates with
Information technology which provides them automation in their repetitive activities
but it also raises the issue of authentication for the company ( Ekman et.al, 2017).
Many of the time inventories like packaging material and other goods are purchased
by the responsible employee in the absence of respective authority which can
majorly impact on the performance of the business entity and also raised the risk of
Poor quality of inventory in their products which hampered the quality which
company wants to serve to their employee.
 Many of the time businesses are had an issue of over dependency on the system
and JIT methodology for purchase of the goods which can be a major impact on lack
of inventory for production in the company. An Improper order can raise the various
cost for the company which can include order cost and also carrying the cost of the
inventory for the company (Davis and Yen, 2018). To overcome the cost company or
management needs to control their order quantity and set a bench market for the
order in the relevance of the importance of the inventory for production activities in
the company.
 Purchase officer had a habitual issue that they are more attracted to the price of the
good instead of the quality of the goods for the company. The company faces major
issue in the relevance of the price concentration of purchasing officer so that they
had the low-quality raw material for their production unit and it will indirectly impact
on the brand image of the goods in the market for the company.
 Adequate list management of vendor is also an issue for the company which can be
overcome through the adequate implementation of internal control or inventory
control with the collaboration of Information technology.
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Data Flow diagram of Purchases:
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Cash disbursement system:-
Cash is the asset which is very much surrounded by the issue for the company. This
Assets majorly influence by the external factor and many of the times internal factor
which used the cash or liquid assets of the company for their personal uses. Company
or management can ensure cash safety with the collaboration of Information technology
in their cash disbursement so that appropriate cash transaction is take placed for the
company in the market (DeVan et. al, 2015). Company Cash overcomes the uses or
traditional methods of cash disbursement which can help the company to maintain the
physical value of the cash and also, maintain the fraud issues and activities related to
the cash for the company. Cash disbursement system is the framework which majorly
deals with the payment of expenses for the company in the cash which needs to be
reportable for the company. Cash is the assets which are highly surrounded by the
fraud activities so the security of cash disbursement system needs a high standard of
code of conduct and rotation of the employee so that company can ensure the safety of
their cash assets (Kotler et.al, 2016). For safeguard, the assets company can follow this
step which helps them to enable security and identified issue with the system of the
company.
 Collection of information from the database in the relevance of the payment to a specific
vendor for the company.
 Reconciliation of the account of the vendor and also identified the final settlement
payment to the vendor
 Collection of relevant information regarding a payment to vendors like Bank details and
their payment details so that payment can be conducted on the server.
 Execution of Online or cash payment to the vendor with the pre-approval of the
respective authority of the company.
 Collection of the financial data in the database of the server for future use to the
company.
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The weakness of the cash disbursement system:-
Management of the company is a major concern for the cash and cash equivalent
assets for the company as it always surrounded by the unethical practices and also
from fraud activities. The company used Information technology to safeguard the cash
of the company but majorly there are many of the technical errors are exist in the Cash
which can be major cause or threats for the cash management in the company (Lohrey
j., 2019). However, company or management is adopted cash disbursement system
with the collaboration of information technology but many of the loopholes are still exist
which company or management need to focus on their better decision making.
 Internal Control is the key to secure the cash assets of the company but many of the
chase company had some of the weakness or improper responsibility allocation
which guides major frauds in the cash management activities of the company.
 The technical framework had their own weakness and many of the experts are exist
in the market who can misuse electronic platform for their personal use which can
harm financially to the organization (Lohrey j., 2019). This experts or hacker also
steal major confidential information which is needful for the company and non-
disclosed for the public.
 Whenever any cash fraud is attempted guilty person is the employee which is work
on cash counter from the recent 3-5 year which means non-rotation of duties of the
employee also raised the cash frauds and also majorly impact on the financial
performance of the company.
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Data Flow diagram of Cash Disbursement:
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