ICT100 - Strategic Information System for B Bakery: Vendor Selection

This report provides an analysis of a strategic information system for B Bakery, a family-owned firm with approximately 70 employees and a sales revenue exceeding $13.5 million. The report begins by defining the bakery's core business processes, including procurement, production, sales, and marketing, as well as management and support processes like recruitment, accounting, and technical support. It identifies indispensable business processes and required objectives, emphasizing the importance of value creation. The analysis extends to system requirements for implementing accounting software, considering data reporting, expandability, interoperability, internet security, and predictive features. The report explores software vendor options, categorizing accounting software and comparing MYOB and Xero. Ultimately, it recommends a medium-sized accounting software package to meet the bakery's needs while controlling costs. This document, available on Desklib, offers valuable insights for students studying business development and information systems.

Running head: Strategic information system
Strategic information system

Strategic information system
Executive summary
Strategic information system plays a significant to grow and survive the business globally. Here
is the discussion about B bakery which provides healthy and tasty food products to the
customers. The company has employed approx 70 employees. The paper discusses about the
business process of B bakery. It also describes about the system requirements of the firm. Along
with this, vendor selection for B bakery business has been also explained in the task. It provides
information about the MYOB and Xero software that are used by the company.
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Strategic information system
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Define business process...............................................................................................................................4
a. Business process..................................................................................................................................4
Define business requirements......................................................................................................................6
b. Indispensable business processes.........................................................................................................6
C.Required objectives..............................................................................................................................7
System requirements...................................................................................................................................8
A. Analysis of system requirements for bakery.......................................................................................8
Software selection.....................................................................................................................................10
A. options for software vendor..............................................................................................................10
B.Category of accounting software........................................................................................................10
Vendor selection........................................................................................................................................10
A.Compare and contrast the features of two accounting software packages..........................................10
B.Most appropriate accounting software for bakery business................................................................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
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Strategic information system
Introduction
The main aim of this task is to outline the significance of accounting software packages. The
paper explains the business requirements and business process of B bakery. B bakery is a family
owned firm who employs approx 70 employees to sale the products in the global market. The
paper explains that which software is adopted by B bakery to satisfy the needs and requirements
of the clients. More detail of the task has been detailed below.
Define business process
A bakery is an establishment that produces and sells flour based baked in an oven such as bread,
cakes, pastries, food, pies and cookies. Some retail bakeries are also serving coffee, cafes and tea
to customers who wish to consume and use the baked goods on the premises. Mainly bakers sell
the bread and other products to the customers worldwide. It has been noted that bakers mix
ingredients according to recipes in order to make bread, baked goods and pastries. It has been
noted that most of the bakers work in grocery stores, bakeries and restaurants to sell the products
to the customers in the market (Cauvain, 2017).
a. Business process
Business process is significant to understand the organization in an effective manner. Business
process plays an effective role to accomplish the goals and objectives of the firm. Bakery is
considered the family owned organization that provides various food products to the customers
across the world. It has been noted that business process can be classified into three categories
that includes center business process, management process and support process (Varzakas and
Tzia, 2015).
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Strategic information system
Center business processes: The center business process includes marketing, finance,
procurement, manufacturing and distribution. Firstly, the bakery procures the raw material from
the vendors and produces bread and other products for the customers. After the production, these
products are sold by the baker to the customers in order to generate profit and revenue
(Schippmann, 2013). The center process of the bakery has been detailed below.
The above business shows that baker perform various tasks and duties in the organization. It will
help to generate more and more funds and revenue within the organization. The center business
process helps for successful and effective execution of the business operations and activities.
Management business processes: Management business process is also used by the company to
initiate the business activities and operations effectively. The management process is employed
and managed by the organization in order to plan, organize, control and manage the business
resources efficiently. It has been noted that management business process helps the firm to
administer and control the operational and management system of the firm. The effective and
unique management business process is used by the company to pursue growth strategy by
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Procurement
Sales Production
Marketing

Strategic information system
providing healthy and tasty products to the customers in the competitive market (Schippmann,
2013).
Support processes: This process helps the company to manage and operate the business
operations effectively and efficiently. These business processes include collection of actions that
provide support to the business operations in the organization. Recruitment, accounting and
technical support are unique examples of the support process in the bakery business. The support
department in the organization maintains books and records of the company and they help to
recruit the attractive and talented employees within the organization. Along with this, technical
support is also provided by the support team within the organization (Dora et al, 2013).
(Source: Cauvain, 2017)
The above mentioned diagram shows the center business process and support business process
that are used by the bakers in the bakery business. It helps to accomplish the long term goals and
objectives of the firm. Different business processes are used by the bakery to generate
profitability and market share (Wilson and Post, 2013).
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Strategic information system
Define business requirements
b. Indispensable business processes
Indispensable business process is initiated by the company to gain competitive advantages in the
workplace. It has been noted that bakers seek to provide new and healthy products to the
customers at appropriate prices. Therefore, it is quite complex to perform and manage the
administration, management, operational and support business process in a hassle free manner.
The support process of bakery includes recruitment, selection, compensation and management of
the human resources that could have direct impact on the center business process of the bakery.
Sometimes, the firm is failed to recruit talented and capable employees therefore it affects the
production and outcomes of the firm. It may also reduce the profitability of the firm. On the
other hand, accounting process helps the company to maintain books, records and financial
transactions. It is typical for the organization to offer various food products at suitable prices.
The bakery can handle and control the resources effectively by using effective strategies at the
workplace. It will also help to improve the quality of the products. It is difficult for the firm to
perform various processes effectively for carrying out the business activities and operations by
using information system at the workplace. Along with this, accounting activities are unable to
provide right and accurate information to the customers. Thus, it can affect the image of the
company in the global market. It is stated that support processes is complex for the company to
ensure the better productivity and performance in the organization (Zhou and Hui, 2014).
C.Required objectives
It has been stated that the value creation outcome is essential to attain the long term objectives of
bakery. The business processes including recruitment, selection, accounting and marketing are
designed to generate and maximize the additional value for the vendors, consumers and workers
within the organization. The support processes are essential to increase and enhance the
effectiveness of the firm by rendering better quality of the products to the consumers across the
world. Bakery needs to improve and enhance the support activities for improving and enhancing
the outcomes and productivity. Supporting activities such as accounting needs to provide right
and accurate information related to the products to the customers in the market. Furthermore,
optimum utilization of resources shall be done by the firm to enhance and increase efficiency of
the workers and organization as well. It will help to make favorable impact on the capability of
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Strategic information system
the employees and organization to produce more healthy products by using adequate and unique
resources. The support processes are essential to align the different activities of the business in
order to ensure the flow of work. It will also help to maintain good and strong collaboration and
communication among the employees. This output makes a favorable impact on the efficiency
and effectiveness of the other business processes that help to increase the revenue and outcomes
of the B bakery. It has been stated that effective decisions must be taken by the B bakery to
maintain peaceful environment and beat the customers in the global market.
System requirements
A. Analysis of system requirements for bakery
The bakery has decided to make a huge investment in the implementing and buying the
accounting software. For this purpose, B bakery analyzes and evaluates the system requirements
in the global market. It is complex to analyze and evaluate the system requirement and to ensure
the performance of the software at the workplace. There are ample of features that the firm
should consider to achieve their IT investment objectives and goals that have been detailed
below.
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Strategic information system
 The firm should focus on the data reporting as well as statutory requirements to
accomplish the goals. The IT system must provide facility to create financial, legal and
law requirements. The system should allow the B bakers to get financial reports and
documents in a specific time period.
 Expandability and interoperability: The system should encompass expandability and
interoperability features that help in performing task and duties effectively and
efficiently. Interoperability system ensures the ability and potential of the system. Along
with this, expandability features are essential to add extra abilities within the
organization. These features must be useful for B bakery to ensure the effective and
unique system migration.
 The internet security and connectivity should also be good feature that can be used by B
Bakers to attain long term targets of the firm.
 Predictive and historical features must be used while buying the system. This system
must allow the firm to analyze and evaluate the historical data in order to predict the
future risks and challenges.
 It is stated that performance evaluation must be done by B Bakers to achieve the IT
investment objectives and goals. All these features should be used by B Bakers to solve
and handle the issues of the IT system (Pollitt, 2014).
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Strategic information system
System requirements for B Bakers
Software selection
A. options for software vendor
The website of three vendors includes MYOB, SAP and Xero that help to select right software
vendor in the organization.
B.Category of accounting software
It has been noted that accounting software can be divided in three forms such as high, low and
medium. The high cater of accounting software permits the company to increase and enhance the
efficiency and productivity of the firm. The high accounting software is called as enterprise
resource planning that helps in gaining rivalries benefits in the global market. The low category
of accounting software permits the firms to exercise roles and functions including books of
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Recording and update
accounting transaction
System requirements
Internet connectivity and
security
Data reporting as statutory
requirements
Historical and
predictive analysis
Performance evaluation
and reporting
Interoperability and
Expandability

Strategic information system
accounts, tracking of data, and development of financial reports (Dukić, Mesarić and Dukić,
2014). It is analyzed that medium category accounting system are more costly rather than low
category software. On other the hand, implementation of high accounting software is also more
expensive and difficult than other categories (Simkin, Norman and Rose, 2014). For B Bakers,
medium sized category of accounting software is mote approximate because it is effective and
unique to serve needs and demands of the business and customers with reducing the cost of the
company. The bakery can use this software to provide healthy and unique products to the
customers in the marketplace (Schorr et al, 2013). The medium sized software provides accurate
and unique information regarding the efficiency and effectiveness of the each and every
department and to decline the cost of the firm. On the other hand, high category of software will
increase and enhance the cost of the company effectively which may have direct impact on the
efficiency and competencies of the employees. Furthermore, middle class category of software
allows B Bakers to customize the features and to generate high profitability (Recker, 2015).
Vendor selection
A.Compare and contrast the features of two accounting software packages
The medium category of accounting software such as Xero and MYOB has been selected for B
bakers. The comparison and contrast between two software have been detailed below.
Features or functionalities Xero software MYOB software
Operating system support OSX, Linux and Windows OSX and windows
Update Updation is done automatic Updation is done manually.
Business size Large, medium and small Medium and large
User interface Web based Stand alone
Backup Backup can be done within 10
days
Any time availability in
MYOB software
Reporting Reporting is done in standard
format
Vertical and horizontal
analysis are done.
Billing and invoice Automatic billing Purchase order data
Budgeting and forecasting Available Available
E-commerce E-commerce is available E-commerce is not available
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Strategic information system
Taxation Taxation Taxation can be done
Accounts management It is possible in multiple
currency
It is possible in signle
currency
Inventory management Basic feature Advanced inventory function
Bank Reconciliation Bank reconciliation is
available
Available
Data integration Automatic Automatic
Price Relatively low High prices
Multi browsing Available Multi browsing is not
available
Payroll functionality Effective features Less features
Mobile accounting app Mobile accounting app is
available
It is also available in MYOB
Customer support Customer support can be
possible through email and
phone
Customer support can be
possible through online chat,
phone and email.
On the above table, it has been analyzed that Xero and MYOB has ample of similarities and
differences that can affect the business operations and actions of B bakery for accounting
software. It is noted that MYOB is appropriate and effective for small and medium size
organization whereas XERO is unique and effective for large and medium size organization. In
this way, several differences and similarities can be identified and analyzed in the above table
(Wells, 2018). It is noted that Xero provide web based features whereas MYOB does not provide
web based features as it requires installation of software to save the file and data. Accounting
management can be done in ample of currency in Xero whereas in MYOB, inventory
management is done in single currency (Mageto, 2017). E-commerce and taxation are available
in both the software. Mobile software app is available in both the software such as XERO and
MYOB. The price of Xero is high whereas the price of MYOB is low. It is analyzed that security
measure can be done in Xero rather than MYOB creates various issues and differences in the
data protection. The above are the some effective and unique features of MYOB and Xero
accounting software that can be used by the company (Rainer et al, 2013).
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