Strategic Information Systems Analysis: Giant Eggplant Case Study

This report, prepared as an internal audit for Giant Eggplant, a fruit and vegetable market, analyzes its strategic information systems. It begins with an introduction to the business, highlighting its current challenges of declining sales and increasing purchase costs. The report then details the revenue and expenditure cycles through data flow diagrams. The analysis identifies internal weaknesses, particularly in inventory management, and proposes IT controls to address these issues. Specifically, the report emphasizes the benefits of an inventory management system, including cost savings, customer satisfaction, time efficiency, and improved warehouse organization. The report concludes by advocating for the implementation of an inventory management system to optimize operations and enhance the overall performance of Giant Eggplant.

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
Table of Contents
Introduction..........................................................................................................................2
Discussion............................................................................................................................2
Data Flow Diagram for the revenue cycle.......................................................................2
Data Flow Diagram for expenditure cycle.......................................................................3
Analysis of internal weakness in Giant Eggplant System...............................................4
Description of IT control that should be placed in Giant Eggplant system.....................6
Conclusion...........................................................................................................................7
References............................................................................................................................9

2STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Introduction
The following report is all about Giant Eggplant which is a well-known fruit and
vegetable market-based in Rowville Victoria. This particular organization aims to offer a wide
range of dairy, cultural and bakery products that are available from local farms and bakeries. At
present, there are around 25 employees which is inclusive of sales staff, administrative staff and
supervisor for managing the store. The general manager of this organization has currently faced
decline in overall sales and profit. But the purchase of product for resale option has continued to
rise in the last few years (Rothaermel 2017). The report focus on certain process and procedure
which is needed for evaluation of revenue and expenditure cycle. The report has been prepared
from the viewpoint of internal auditor at Giant Eggplant.
In the coming pages of the report, a data flow diagram has been provided for the revenue
cycle of the organization. In the next section, data flow diagram has been provided for the
expenditure cycle of organization. An analysis has been done with respect to internal weakness
in Giant Eggplant system. The last section of the report deals with description of IT control
which requires to be placed in Giant Eggplant System.
Discussion
Data Flow Diagram for the revenue cycle
In Giant Eggplant, customers aim to push their shopping carts to that they can checkout
counter where the sales staff can processes the overall sales. The organization comes up with five
register, but it is not dedicated to some particular sales as it play key role in day to day
operations. Also to checking the customer, sales staff will aim in shelve and carry out different

3STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
task in most of the areas in the day (David and David 2019). At the time of starting of shift, a
store supervisor’s aims in collecting cash register drawers from finance clerk in the office.
Drawers comprises of $100 cash in form of coins and small bills which is known as float. It will
ultimately help the sales staff to make all the necessary changes. At the end, supervisor signs a
log highlighting that he or she has taken the custody and place the drawers irrespective of cash
register.
All the sales to customers are done in either of the two ways that are cash or credit card.
Credit card sales are done in a usual way where the customer just need to tap for the credit card
option on EFTOPS terminal located just in front of register and provides the password if needed
(Lasserre 2017). All the receipt of purchase and credit card are given to customers after the end
of transaction. In this store, most of the sales are done in form of cash. Sales staff receive both
cash and customer that makes changes and issues receipt for the done purchase.
In the ending time of shift, supervisor returns the cash register, which consist of cash and
credit card details to the financial clerk. After that, he needs to sign a log which completely states
that point he has handed the cash drawers. After this, it is the duty of financial clerk to count on
cash and sale of credit card (Ginter, Duncan and Swayne 2018). By making use of standalone
finance department, clerk completely records the total sales value in journal, cash account and
general ledger sales. Financial clerk aim to prepare a complete deposit slip where the cash is
delivered to the nearest branch of the bank.

4STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Fig 1: DFD for Revenue Cycle
(Source: Created By Author)
Data Flow Diagram for expenditure cycle
Expenditure cycle just begins in the nearby warehouse, which inventory of different non-
perishable items are kept. In addition, the organization also has a one-day inventory of perishable
products in the warehouse. This is mainly done so that sales staff can have a quick overview for
restock of shelves as needed (Noe et al. 2017). At the closing time of business, warehouse clerk

5STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
needs to completely review the market for different items which requires to be replenish. It is the
duty of the clerk to restock items and make adjustment in the record of warehouse computer.
Clerk takes a complete note of different things which needs to be recorded from different
suppliers followed by printing the orders from system. Considering the product nature and
needed urgency, clerk mails the purchase order to supplier. The orders can be taken up by phone
which is achieved by faxing purchased order to suppliers (Trigeorgis and Reuer 2017). When
different goods arrive from vendor, it is the duty of clerk to completely review the packaging
slip. There is needed for recording the stock from different system. In the last instance, clerk just
need to prepare a hard-copy for the purchase from the system. All the details are send to financial
clerk so that they can post to the general ledger.
The invoice of vendor is send to the accounting clerk department where the clerk looks
up for any calculation error. The invoice is put in a temporary file until and unless it is paid. On
daily basis, clerk looks up the temporary file for addressing invoice that needs to be paid. By
making use of accounting department system, clerk aims in keeping a record of all cheques in
electronic register (Kumar et al. 2017). It is the duty of the clerk file the invoice and mail the
check to supplier. At the end of shift, accounting clerk provides a hard-copy of the voucher that
is generated at system end. This particular step help in payment. It is send to the financial clerk
for imposing to the general ledger.

6STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Fig 2: DFD for expenditure cycle
(Source: Created By Author)
Analysis of internal weakness in Giant Eggplant System
Giant Eggplant system needs to have some proper inventory control system so that they
can keep the count of merchandise. The inventory control system helps in proper calculation of
the accounting department. Business owners are given choice of using system or manual
inventory system (Macura, Šelmić and Teodorović 2019). In most of the cases, manual system

7STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
aims to provide a list of drawbacks for Giant Eggplant. There is need for reliable inventory
management system in business. A huge amount of money and time can be saved by automation
of inventory management system.
Labor-Intensive: The biggest drawbacks of manual inventory system in Giant Eggplant
store is that it is very much labor-intensive in terms of operation. There is need for proper
monitoring so that it can ensure that each of the transaction can be easily accounted. In addition,
it helps in maintaining a proper level of stock. It becomes very much difficult for sharing all the
required details in the whole business (Pan and Hui 2017). As a lack of computerization that
makes it very much accessible for inventory records into a suitable process. All the time spent on
monitoring the level of inventory can be easily used for different productive activities of
business.
Human Error: Manual Inventory System completely depends on the action of people
that ultimately results in overall increase in human error. People can even forget to keep a record
of transaction or even miscount the number of goods which arrive at Giant Eggplant. It
ultimately results in additional orders which ultimately increases the carrying cost of inventory
(López-Ramírez, Rojas-Trejos and González-Velasco 2017). All these space are previously have
been used for earlier storage space. Any kind of inaccurate physical count will not only result in
ordering product but also result in run out of crucial item.
Decentralized Control: A system which does not incorporate different kind of business
function is found to be very much ineffective in nature. Manual inventory system aims to follow
up a decentralized approach which highlights that all the data is not update in real-time.
Inventory level are updated on periodic level (Trinh 2017). Giant Eggplant needs to analyze the
point that inventory management software is connected in each and every instances with

8STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
different business aspects. In the real-time inventory management system, there is continuous
update with respect to level of stock. This merely comes up into picture when are seen at the
point of sale system. The software is found to be helpful in enhancing the accuracy and so that
the business can replenish the stock in the given time without facing any delay.
Unable to forecast both demand and supply: Inventory requirements needs to be
completely replenished in a timely way. This needs to be done as the business encounters huge
number of backlogs. Inaccurate need analysis will ultimately led to stock piling or even shortage
of inventory (Aguinis, Edwards and Bradley 2017). In most of the cases, manual inventory
management completely fails for identifying any kind of gaps and upcoming needs. In addition,
it also help in streamline of data which is produces analytical trends. System does not provide
visibility and accuracy for different business function.
Description of IT control that should be placed in Giant Eggplant system
There are list of benefits of inventory management system in Giant Eggplant store like
Helps in Saving Money: The biggest plus point of inventory management system is that
it can help in saving organization money. Inventory stands out to be the largest asset of the any
organization (Certo et al. 2016). Ordering too much of the inventory can put the organization to
huge loss. Most of the overstock can put the organization just out of the business. Inventory
management help the organization in avoiding any kind of risk.
Satisfying the need of Customer: Inventory management system is found to be helpful in
keeping the different customers happy. Customers can shop at business taking into account of
different assumption that has different items in stock. When the customers have backorder items,
most of the customer go for switching the supplier and wait for new stock to come (Papke-

9STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Shields and Boyer-Wright 2017). Failure to meet the customer demand can bring huge amount of
loss to business and will result in bad reputation of firm. If there is customer loss on consistent
basis, then it may result in huge customer loss. Inventory management software is found to be
useful for customer demand which turns out to be smart and order efficient in nature.
Time-Saving: Inventory management system requires proper record keeping which
makes use of some specialized software and hardware. Inventory management devices like
system and barcode scanner are used for integrated data storage and system analysis. The
software is found to be very much efficient in terms of enhancing the supply chain. It helps in
removing any kind of tedious and time-taking processes (Durand, Grant and Madsen 2017).
Inventory management tool help the employee to focus on either of the areas of business.
Maintaining an optimum level of Inventory: Inventory management is very much
important in keeping a balance in between that is input and output. Overstocking ultimately leads
to sapping of the different business resources (Aguinis, Edwards and Bradley 2017). There is
need for maintaining an optimum level of stock and stock which has a dedicated line. Inventory
management tool has been designed for solution which can tailored the need of individual.
Organization of Warehouse: Disorganized warehouse stands out be inefficient that result
in wastage of both time and money of Giant Eggplant stores. Poor inventory system will
ultimately lead to any kind of harmful miscommunication and even loss in productivity (Engert,
Rauter and Baumgartner 2016). There is need of proper inventory management system which
helps in organizing warehouse.

10STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
Conclusion
From the above pages, it can be concluded that this report is all about Giant Eggplant
which is a fruit and vegetable market. The stores aims to provide a wide range of bakery, diary
and agricultural products. At present, the organization aims to employee 25 employees which is
inclusive of sales staff and administrative staff. General Manager of this store has recently seen a
fall in overall sales and profit. The purchase of products for resale aims to continue to grow and
an evaluation has been done for organization process and procedure. The report highlights data
flow diagrams for the organization which address both the expenditure cycle and revenue cycle.
In the above section of report, an analysis has been done regarding the physical internal
weakness in Giant eggplant system. The next part of report deals with description of IT control
which needs to be placed in Giant Eggplant system.

11STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
References
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12STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE
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