Bell Studio Case Study: Strategic Information Management for HI5019

This case study examines the strategic information management system at Bell Studio, focusing on transactional cycles such as sales, payroll, purchasing, and cash disbursements. The analysis includes data flow diagrams for the payroll system, system flowcharts for purchasing and cash disbursement systems, and an identification of internal control weaknesses within each system. Furthermore, the paper explores the risks associated with these weaknesses, including human error and computer-related threats like viruses and malware. The study emphasizes the importance of a robust information system strategy to enhance operational efficiency and mitigate potential vulnerabilities within the organization. The study also covers the importance of internal control in the business to prevent fraud and risks.

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Strategic information management for enterprise and business:
Name:
Institution:

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Strategic information management for enterprise and business
Executive summary
In this paper, we shall greatly focus on the strategic information management system for
Bell studio, in our case we shall discuss various transactional cycle which includes;
sales cycle, payroll cycle, purchases cycle, and cash disbursements cycle. Also, we
shall create a data flow diagram of payroll system, system flow charts for purchase
system and system flow charts of cash disbursements system and payroll system.
Lastly, we shall focus on internal control weakness for each system and the risks each
system will experience in providing services. The system which we shall focus on is
purchase, payroll, and cash disbursement system.

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Table of Contents
Introduction........................................................................................................................4
Transactional cycle............................................................................................................5
Payroll cycle...................................................................................................................5
Purchasing cycle............................................................................................................7
Sales cycle.....................................................................................................................9
Cash disbursement system..........................................................................................10
Weaknesses in the Bell Studio system...........................................................................11
Payroll system..............................................................................................................11
Purchase system..........................................................................................................11
Cash Disbursement system.........................................................................................12
Risks associated with the weaknesses in the Bell Studio system..................................13
Human error.................................................................................................................13
Computer Viruses and Malware...................................................................................14
Conclusion.......................................................................................................................15
References.......................................................................................................................16

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Introduction
A strategic information system is usually created in order to respond to various business
initiatives and the corporate world. In addition, a strategic information system is helpful
in providing a higher competitive advantage in any organization. Also, it may provide a
product or service which are differentiated, lower price and major focused on a
demanding marketing section.
Information system strategy is a necessary feature in the information technology and
corporate world. Largely it assists various companies and firms in allocation, data
processing, storage, moving the data and information developing and receiving. It also
avails importance tools and services which will be used by various companies and
organization for assisting the firms to apply analytical tools and metrics in its information
repositories function and giving them authority to value their resourceful chances for
enlargement and simpler ways which enhance operations and supply efficient. Thus it
leads to better management of data with the effective data analysis and presentation.
The strategic information system provides a connection between the demands of the
organization and the latest information technology. This tactic helps an organization to
get hold of the market by utilizing Information technology to meet its challenging
requirements to the continuous variation in the corporate environment. Information
system strategy is very crucial aspects because it assists the organization for its
expansion and its growth. Using information system integration of data system and their
function within the organization can be done within a short period of time. In addition to
that, it allows the grouping of information into distinct opportunities for the uses of the
information system from different strategies. It also provides the surety that absolutely

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the required resources which are less allocated to various applications and utilization of
scarce resources in a justifiable way. With the use of system information strategy, it
makes sure that the information systems operate in accordance and largely supports
the goals and objectives of the business and organization at distinct levels.
At the Bell studio, the strategic information system information is acquired by analyzing
the transactional cycle of the organization. The following are transactional cycle process
and the ways in which it greatly affects the organization process.
Transactional cycle
Payroll cycle
Payroll cycle is referred to as the duration of time between the payrolls. For instance, if
the organization employers process payroll weekly, then weekly is considered as the
payroll cycles. The payroll cycle may entail various processes of time recording and
attendance and convert of that data into disbursements and payroll calculations.
In another perspective, the payroll cycle usually occurs within a given organization and
it involves the employees. The organization will calculate the duration of time each
employee can work in a day. This time may include the full time and per time working
hours (Collins, Fulton, Carsen, and Ford, ADP LLC, 2016). Then every employee in the
organization will be paid based on the amount of time they have worked and payments
are made after deductions of advances, medical covers, and taxes. The organization
must possess the payroll process in place to make sure that the organization
employees received an accurate payment on the time. As the payroll procedures vary
from one company to another, then the basic payroll cycle usually covers jobs which
most organization must perform in order to process their payrolls. The frequency and

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scope of payroll in an organization greatly depend on the payment cycles and the size
of the organization. Below are the system flow diagram and a data flow diagram for
payroll system.
Data flow diagram
System flowchart

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Purchasing cycle
Purchasing is the action of buying goods and services that the organization needs to
operate and manufacture the products. Purchasing procedures are a sequence of
activities which are created in order to obtain the right quantity and quality of the product
at a reasonable price. The purchasing system in an organization entails the process of
categorizing the need of the inventory, place it in order, acquiring the new inventory and
also scrutinizing a product which does not meet the demands of the organization. The
inventory control will give a clear mandate for product purchase. For instance, if the
products of the order do not meet a required standard then the product will remain in
with the supplier until it is approved. If the products meet the required standard, for
example, if the product quality is high and quantity is accurate at affordable prices then
the product will be purchased by using digital platforms. The purchasing processing will

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be done procedurally from one department to another until all the processes are
achieved.
The purchasing order will be received by the organization to a supplier for goods. After
the goods have been received, then the organization will record an inventory of the
products which are required to be paid for and then the real amount pays for the
products. Most of the business the payment of goods takes place after the purchase
goods have been proven that the product is of the right standard. Below is system
flowchart and data flow diagram (no copyright infringement is intended)
System flowchart

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Data flow diagram
Sales cycle
This kind of transaction cycles entitles the time when the clients place an order for the
product from the business until the time the goods are being received after full payment.
The business will receive an order from the customers acknowledge it and produce an
invoice for what the customer will be required to pay for the products and then send
back to the clients for them to pay in order to receive the product. The importance of
the sales cycle is to make sure that the selling price of the product is a given time. While
creating a strategic information system, company management should make sure that
the effectiveness and efficiency of the sales cycle in the system.
Sales cycles have a procedural process, which starts with placing an order and
delivering the order. At the sales order department, this is where the entry of the sales
order is entering. In entering the sales entries then various processes are needed to be
followed. The order from the customers is first taken then it is checked in the credit file.
The customer will be given feedback via customer service after the availability of

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inventory in the business has been determined. When customers are registering with
this online platform they are required to enter the details one by one. This assist in
reducing the error from human, lastly the orders will be approved at the packing store
for loading and sealing. In the business in order the credit checking to easier to the
customers then it should be automated.
Cash disbursement system
Every organization, business, and companies require the cash disbursement system
that will correctly and efficiently handle the organization cash payments. The accounts
payable is linked one on one to cash disbursements and most of the transactions in
every business are handled using account payables when the cash payment is being
done in business (Morden, 2016). All the cash transaction should be recorded in the
business financial records and in addition, proper documentation should be put in place
for the effective functioning of cash disbursements. The internal control in the business
is very crucial in the cash disbursements system since it makes sure that the cash
transaction being made is as per the required standard.
System flowchart

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Data flow diagram

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Weaknesses in the Bell Studio system
Payroll system
The employee at the bell studio usually records their amount of time they have worked
every day using the time cards. The manager who is responsible will check the time
cards for every employee if it is correct and also if it is well filled and then they will
submit it on the payroll department on the weekly basis ( Jackman, Herrington, and
Putman, Money Network Financial 2015). Sometimes it may be hard time for the
supervisor to monitor the progress of the employees and whether they have attended
the work since at some point the employees are not trusted in giving information about
their worked hours (Peltier, 2016). Also, another weakness of the payroll system is that
at some point the connection of payroll system can be access by every employee since
it is connected to the center directly to the computer terminals. This may results in the
act that at some points the employees may manipulate the information from the payroll
system in order to increase their salaries for themselves and on the process the
important information may be interfered. At some point since the payroll process is done
using the manual system, then it is sometimes exposed to inaccurate data and human
error (Sardi, Garengo, and Bititci, 2019)
Purchase system
The purchase system process at bell studio starts when the clerk who is responsible for
purchasing sends a purchase order to the customer. After the submission of the goods
then the manual process is applied for the accuracy of data. This process will be time-
consuming and tiring since it requires time in feeding it into the computer and also it
requires time in entering recording manually and checking whether the data and in
manual and digital platform tally (Laudon, and Laudon, 2016). And since manual