Analysis of Information Systems at Bell Studio: Report

This report provides an analysis of the strategic information systems employed by Bell Studio, an Australian art equipment retailer. The report examines the functionality and operational procedures of the purchase, cash disbursement, and payroll systems. It includes flowcharts illustrating the processes within each system. Furthermore, the report identifies and discusses internal control weaknesses present in these systems, such as report distribution inefficiencies, product inspection delays, and improper controls within cash disbursements. The analysis also assesses the risks associated with these weaknesses, including inefficient responses, customer dissatisfaction, improper business procedures, employee dissatisfaction, and data redundancy. The report concludes by summarizing the findings and implications of the current information systems within Bell Studio, highlighting areas for improvement and risk mitigation.

Running head: INFORMATION SYSTEM FOR BUSINESSES
Information System for Businesses
Name of the Student
Name of the University
Author Note

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INFORMATION SYSTEM FOR BUSINESSES
Executive Summary:
The main aim of this report is to discuss about the strategic information system in the
context of Bell Studio. Bell Studio is currently using a purchase system, cash disbursement
system and a payroll system. Each of this system has been discussed briefly in this report.
Some internal control weakness is also present in these systems of the Bell studio. All of
these weaknesses has been discussed in this report. It has been also assessed that there
are several of risk in the Bell Studio due to these weaknesses in the system. Each of the
risks has been identified in this report and has been discussed briefly.

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Table of Contents
Introduction:................................................................................................................3
Purchase and Cash Disbursement System:...............................................................3
Payroll System:...........................................................................................................5
Flowchart of the Purchase System:............................................................................5
Cash Disbursement System Flowchart:......................................................................7
Payroll System’s Flowchart:........................................................................................9
Internal Control Weakness Present in Bell Studio:...................................................11
Purchase System Weaknesses:...........................................................................11
Purchase System Risks:.......................................................................................11
Cash Disbursement System Weakness:...............................................................12
Cash Disbursement System Risks:.......................................................................12
Payroll System Weakness:....................................................................................12
Payroll System Risks:............................................................................................13
Conclusion:...............................................................................................................13
References:...............................................................................................................15

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INFORMATION SYSTEM FOR BUSINESSES
Introduction:
In the current business process related operations there is a large amount of
growth. It has been assessed that within the context of business processes the strategic
information system has been adopted widely for betterment of the existing business
processes (Beynon-Davies 2016). Effective business process is achieved through this type
of strategic information system.
This report comprising a discussion regarding the strategic information within a
particular organization and here the organization is the Bell Studio which sales art
equipment and based in Australia. Bell Studio leveraged the strategic information system
of their overall accounting system. Purchase system of the organization can be easily
managed through this system and the services regarding he payroll can be managed very
easily. Thus in the following section working procedure of this system and internal control
weaknesses of the organization will be discussed.
Purchase and Cash Disbursement System:
For almost every organization a proper type of purchase system holds a huge
importance, thus this system of the organization must be functional in a proper way so that
customers does not faces any type issue while using this are trying to purchase an item for
the organization (Herrera-Cáceres and Ibeas 2016). Through this purchase system
customers of the Bell Studio not only effective purchases products from the Bell Studio,
but also, this purchase system is also assisting the organization to manage the customers
of the organization effectively through the purchasing system. Other operational processes
within the organization is also getting benefited due to this factor.
The cash disbursement can also be considered one of the important part of the
overall. The cash disbursement system currently integrated within the purchase system of
the organization and from the evaluation of the purchase system it has been assessed that
the cash disbursement mainly handles the procedures of the case disbursement. More
specifically the operation offered by the cash disbursement system is very much secure in
nature. The important functionaries performed by the current Bell Studio organization is
the recording of transactions, documentation procedures and proper account payable
within the organization.

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INFORMATION SYSTEM FOR BUSINESSES
(Figure 1: DFD of Purchases and Cash Disbursements System)
(Source: Created by Author)

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INFORMATION SYSTEM FOR BUSINESSES
Payroll System:
With a proper type of purchasing system the payroll system within the organization
also plays an important role within the organization thus, this system is also important for
the Bell Studio. Payroll system is basically used by the organizations to efficiently pay the
salaries of the employees of the organization. The Bell Studio also utilised the payroll
system for the same purpose (Haruna, Joseph and Samson 2015). There are various of
important functionalities which is currently provided by the implemented payroll system by
the Bell Studio. This payroll system does not only just provide the salaries to the
employees but, with that this system also stores some of the important information
regarding this payroll system which are mainly related with the amount of salaries paid to
the employees and regarding the payment vouchers.
(Figure 2: DFD of Payroll System)
(Source: Created by Author)
Flowchart of the Purchase System:
It is already demonstrated that why the purchase system is an important aspects for
the organizations which is also applicable for the Bell Studio. A flowchart has been

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INFORMATION SYSTEM FOR BUSINESSES
presented in this case which clearly demonstrate how the purchase system within the Bell
Studio works.
(Figure 3: Flowchart of Purchase System)
(Source: Created by Author)

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INFORMATION SYSTEM FOR BUSINESSES
Cash Disbursement System Flowchart:
Compared with the purchase system, the cash disbursement system is also
important within the organization and for the Bell Studio. It is used by the organizations for
a secure cash flow whiten the organizations. Important transitions are required an
important cash disbursement system. In the following section the utilised case
disbursement system within the Bell Studio is presented.

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INFORMATION SYSTEM FOR BUSINESSES
(Figure 4: Flowchart of Cash Disbursement Flowchart)
(Source: Created by Author)

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INFORMATION SYSTEM FOR BUSINESSES
Payroll System’s Flowchart:
The payroll system is an important aspects of every organizations which is also
same for the Bell Studio. The payroll system of the Bell Studio deals with providing
salaries to the employees in a timely manner to avoid any type of conflict between the
management and the employees of the of the organization. In the following section a
flowchart is presented which will be demonstrating how the payroll system works within the
Bell Studio organization.

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INFORMATION SYSTEM FOR BUSINESSES
(Figure 5: Flowchart of Payroll System Flowchart)
(Source: Created by Author)

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INFORMATION SYSTEM FOR BUSINESSES
Internal Control Weakness Present in Bell Studio:
The Bell Studio utilises strategic information system for the business purposes
which includes three type of most important system which are the purchase system, cash
disbursement system and the payroll system. From the working procedures of these
systems it has been analysed that there are several of internal weaknesses within these
systems. In the following discussion these internal control weaknesses of the system is
discussed briefly.
Purchase System Weaknesses:
 Report Distribution: From the working procedures of the purchase system that the
Bell Studio is having a weakness in their current purchase system. It has been
assessed the Bell Studio is consisting many operational departments within the
organization. For an effective business operation it is very much important to
distribute all the relevant reports among all the department of the organization
(García et al. 2018). As the Bell Studio is consisting several of departments it
becomes very much hard to distribute all the reports within the organization which is
one of the major weakness in the operational purchase system of the Bell Studio.
 Product Inspection: The inspection of the products is not optimised here and it is
becoming a weakness of the current operational purchase system. It has been
assessed that the product inspection process is utilised by the Bell Studio to identify
the defective materials in the production line so that better quality products can be
provided to the customers, but here this creates a problem for the organization
(Sarkar and Saren 2016). The inspection procedure of the products is currently
taking a long time to complete and due to this factor the delivery of the products the
customers are getting delayed and also production of the organization is getting
hampered.
Purchase System Risks:
 Inefficient Response: As the report distribution is taking a long time within the Bell
Studio organization all the department of the organization is not having proper
information about other aspects of the organization. Due to this reason when a
query is raised to a particular department of the organization the department is
failing to solve the query and inefficient response is coming from the department
which is hamming overall business of the organization (Balconi, Laura and Vanutelli
2017). Thus this is one of the major risk in this aspects.