Strategic Information Systems for Business and Enterprise Strategy

This report provides a comprehensive analysis of strategic information systems within business and enterprise contexts. It examines the accounting information system as a discipline, including its transformation and curriculum. The conversion cycle is analyzed, with suggestions for suitable overhead components and cost drivers. A system analysis and selection report evaluates a selected business's processes, identifies weak internal controls and associated risks, and recommends control techniques. System requirements, software features, and functionalities are discussed, along with a comparison of ERP software packages, culminating in the identification of the most suitable vendor. Desklib provides access to similar documents for further study.

Strategic Information
Systems for Business
and Enterprise

Table of Contents

Introduction......................................................................................................................................1
Part A. Accounting Information System as a Discipline.................................................................1
Background.............................................................................................................................1
Discussion on the transformation of the AIS curriculum.......................................................2
Part B. The Conversion Cycle.........................................................................................................2
Background.............................................................................................................................2
Suggest the most suitable component of overhead for XYL Limited....................................3
Part C. System Analysis and Selection Report................................................................................3
Background.............................................................................................................................3
Background of the selected business......................................................................................4
Evaluate the business process of the client........................................................................4
Identify potential weak internal controls and the risk associated with it...........................4
Recommend the control techniques that will reduce or eliminate the potential risk.........5
Systems Requirements............................................................................................................5
Software features and functionalities to support client’s business activities.....................5
Software Selection..................................................................................................................6
Compare and contrast the features and functionalities of two ERP software packages
offered by the ERP vendors...............................................................................................6
Identify the most suitable vendor and ERP software package for the client with reason and
justification........................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Strategic information system can be defined as a type of information system which is
developed for the businesses in order to take initiative for any innovation in the marketplace.
These systems have the motive to introduce the competitive advantage within organisations for
better stability and growth in an industry. It helps the organisation to categorise and store the
information which they create and receive in order to process and transfer to other locations
(Shanks, Gloet, Someh and Tamm, 2020). The following discussion is based on the three case
studies such as accounting information system as a discipline which includes the background and
the discussion on the transformation of the accounting information system curriculum. The
conversion cycle case study includes the background and suggestion on the most suitable
component of overhead for the given organisation along with the determination of a logical cost
driver for each process. System analysis and selection report case study includes the background
of the entire case study and the selected business containing the business process and potential
weak internal controls along with the recommendations to control the techniques. System
requirements which include software features and functionalities are also discussed. Software
selection which includes the comparison and contrasting of the functionalities of the three
enterprise resource planning software packages and the identification of the most suitable vendor
along with the justification are also covered in the report with conclusion.
Part A. Accounting Information System as a Discipline
Background
Background of the case study States about the accounting information system. It is a
process of identification and measurement along with the communication of the economic
information in order to allow judgement and decision making by the users of the data. Case study
is given in terms of accounting which is an important domain of the business world and a
constantly developing profession. The accounting information system as a discipline is the
outcome of the development. Moreover it is mainly a computer based system which has made
the accountant job easier of collecting and storing along with the processing of financial and
accounting information in order to produce the reports which allow users to make more effective
and efficient organisational decision making. It has also covered the undergraduate and
postgraduate accounting curriculum in order to prepare accounting students for what they will
1

pursue practically in the workplace. This is the discussion in the case study which reveals that
the accounting information system highly needs the attention of the researchers so that
discussion on the transformation of the accounting information system curriculum can be made
(Galliers, 2020).
Discussion on the transformation of the AIS curriculum
There is a major transformation of the accounting information system curriculum
syllabus. Transformation such as the most important topics which are in majority are the same
but the most common topics have changed drastically because the basics of accounting
information system is highly demanded in the professional organisations. Overall the topical
coverage has not essentially changed in the last decade but new hot button topics for example
Data analytics are incorporated in the syllabus which is in high demand in the marketplace. Data
analytics covers the 21.2 percent after total syllabus and accounts for 1.6% in the class time. It is
important for Data analytics to be more conceptual in the syllabus in order to meet industry
changes. Another hot button is an information system related with the Data analytics in the
domain of accounting and accounting information system curriculum so that the needs and
requirements can be fulfilled by the students and the syllabus in the field of education. This has
prepared the future of the students in a very good manner (Sedera, Tan and Elie-Dit-Cosaque,
2018).
Part B. The Conversion Cycle
Background
Xyz limited has the accounting system of activity based costing systems. It follows some
process in which cost cutting is a first process. Second process is assembly. Third process in
shaping. Sanding is the fourth process. Fifth process is finishing. The last of the six processes is
packing. All such processes are handled by the activity based accounting system which is
currently installed in the system of XYZ limited. This is the background of the case study where
the managing director of XYZ limited wants the expert opinion about the components of
overhead and the logical cost driver so that they can easily implement in a more effective and
efficient manner as compared to the existing system installed in the organisation. That is why the
suggestion of the most suitable component of overhead for xyz limited is given along with the
determination of a logical cost driver for each process (Shao, 2019).
2

Suggest the most suitable component of overhead for XYL Limited
The most suitable component of overhead for xyz limited are the different categories of
activity based costing systems which includes several activities and processes for the logical cost
driver for each process. These activities are the unit level activities which are monitored by the
systems. Batch level activities along with the product line activities are also involved so that the
facility support activities also so can be covered in the activity based costing systems. This entire
procedure has a process which is given in the case study but in a more modified and enhanced
manner because of the security and updates required by the software on a frequent basis
(Bhattacharya, 2018).
Part C. System Analysis and Selection Report
Background
Background of the case study relates with the accounting and management consultancy
firm. This company has various clients in which one of the clients is currently analyzing its
information systems. This client has a managing director who wants to invest in the enterprise
resource planning system in order to support the growth and expansion of the business. It was a
first meeting where the managing director of the client was asked to interpret and examine the
business requirements and recommend the suitable enterprise resource planning software. The
chosen company that is a client of the accounting and management consultancy firm is the
Unilever. Consultancy company have the objectives to analyze the background of the client
which evaluates the business process and identify the potential weak internal controls along with
the risk associated with it. Moreover recommendations on the control techniques and discussion
on the software features and functionalities are also performed by the consultancy company.
Additionally, the consultancy company will compare and contrast the features and functionalities
of the three enterprise resource planning software packages and recommend the most suitable
vendor for the same. These are the major objectives of the case study which are to be performed
by the management and Consultancy Company in order to provide the best services to the client
that is the Unilever (Shanks, Gloet, Someh and Tamm, 2018).
3

Background of the selected business
Evaluate the business process of the client
Unilever is one of the leader international consumer goods company established in 1929
and headquartered in United Kingdom. This organisation requires the enterprise resource
planning which helps in the support of the business in order to know about specific requirements
to function the company. The enterprise resource planning has the management skill which is
time and cost efficient and employee effective as well. It has the ability to look after the
productivity of the company which also identifies any weak links or any problem in the
management. Business process of the organisation relates with the important data for the
organisation to figure out what is required in terms of resources so that monitoring of the output
can be comfortable and easier for the organisation. There are different plants which are made by
the managers of the company which examine the requirements of the human capital and
automated systems which are directly and indirectly related to the administrative procedures.
This reduces the human error and also calculates the taxes which increases the human efficiency
and diminishes the losses in the financial statements due to the inaccurate computation (Stair and
Reynolds, 2020).
Identify potential weak internal controls and the risk associated with it
There are different potential weak internal controls and risks associated with the same
within the organisation. This is because the company mainly targets the performance of the
employees with the help of strategic management. The company highly requires their own
management teams in terms of marketing and sales to mean so that the record of the supplies can
be maintained in an accurate manner. There are different small scale companies who use the
technology in order to keep the track of information gathered so that the stock can be managed in
a proper manner. This is done so that the stock can be handled as per the needs and requirements
of the customers and by not compensating the financial losses of the business. Supply chain
management is a major requirement of the current business because it is responsible for the
distribution and procurement along with the planning in a company. It doesn't matter that the
company is of the large scale or small scale but the supply chain management is an important
4

function because in a business everything is handled and managed in order to save the cost and
time just to gain the competitive advantage in the marketplace (Zelenkov, 2018).
Recommend the control techniques that will reduce or eliminate the
potential risk
In order to implement the control techniques that will reduce or eliminate the potential
risk within the organization. Then it is recommended for the organization to compete with the
bigger companies so that it can create the benchmark with better management along with the
research and development sectors. Organization must keep the track of the services provided so
that the monitoring can be easy along with the qualitative servicing to the customers. Currently
the organization is suffering from the lack of talented employees who must be efficient in their
work. Therefore, it is also suggested to fulfill the requirements as per the need of the
management skills and the promotional functions of the organization. Company must keep track
of the market demand along with the projects in the current market place (Berente, Lyytinen,
Yoo and Maurer, 2019).
Systems Requirements
Software features and functionalities to support client’s business
activities
There are different features and functionalities of the software in order to support the
organisation's business activities. Software is accounting software which must minimise the risk
which means controlling the risk. It must help your organisation to figure out the financial data
and optimise business activities. There are some factors which are taken into consideration in
order to select the correct software so that the business can be initiated in their functioning and
working environment. Accounting is one of the factors which are on the high priority of the
software which should have the capabilities of processing the data which includes the accounting
payables and receivables along with the fixed assets and advanced accounting. Budgeting and
forecasting is another factor which must have the capability to interpret the outcomes of the
initiatives of the business and can calculate the performance along with the next year budget
estimation. Billing and invoicing is also one of the factors which should have the capability to
5

perform the financial operations around with the effective methods of payments and appropriate
invoices for customers. Expense management is also another factor which keeps track of the
expenses in terms of any deviations from budgeting to the ongoing projects. Payroll management
is one of the factors which have the capability to perform well financially along with the growth
and expansion of the company by calculating and processing the payment in terms of tax related
matters. Fixed asset management is another factor which should have the capability of the
efficient management of fixed assets in terms of financial information which includes cost
records and allocation of resources along with the audit history and calculations regarding
depreciation in a systematic and accessible manner. Inventory management is also one of the
factors which should have the capability to keep track of the stock so that the company can easily
judge the availability and can figure out the issues in any of the inventories (Winter and Aier,
2020).
Software Selection
Compare and contrast the features and functionalities of two ERP
software packages offered by the ERP vendors
There are 2 selected accounting software chosen for the organisation that is the SAP and
MYOB software. Talking about MYOB software, it has efficient performance and relevant
functions along with the strong characteristics of accounting and payroll which also follows the
cash flow management and third party user integration. It also supports efficient synchronisation
and inventory management along with the flawless system. SAP has the features that it is
available in different languages and has the efficient facilitation of the entire procedure of
integration among the active departments. Moreover it has a capability of sales cycle time period
reduction and many more. It has the functions of cost monitoring and easy compatibility with
related devices along with the supervision of the project development which is followed by the
enhancement of information Technology services and excellent application regarding hardware
and software (Pearlson, Saunders and Galletta, 2019).
6

Identify the most suitable vendor and ERP software package for the
client with reason and justification
The most suitable vendor identified from the above to software is the MYOB software.
This is because it has more functions and features as compared to SAP. It is more efficient in
different departments of the business such as in the human resource and finance department has a
major role. Supply chain management can be effective if MYOB software is used within an
organisation (Rainer and Prince, 2021).
Conclusion
It is concluded that this report has evaluated the current requirements of business for the
implementation of new information systems and other technical devices which can be the most
suitable one as per the needs and requirements of the functioning of the organisation. This
evaluation has helped the business to find out the suitable software for better conducting of the
financial activities. It is important to have the information systems in an advanced manner with
an organisation for better advancement in the working of the company. Therefore in order to
implement such information systems it is important to analyse the transformation methodology
from older systems to new systems. It is necessary to determine the suitable component required
in the company along with the logical cost driver for each process. It is essential to examine the
existing business process along with its weak internal controls and recommendations. It is
significant to gain the knowledge about existing software and the software to introduce in the
organisation along with its features and functionalities. It is crucial to assess the comparison
among the different enterprise resource planning software packages for better selecting the most
suitable vendor. Hence, this report covers all such areas in order to better understand the
conception of strategic information systems.
7