Strategic Information System Analysis and Report for Nowra Chemicals

This report provides a comprehensive analysis of a strategic information system for Nowra/Nowchem Chemical Manufacturer Pty. Ltd. It begins with an identification of the company's business processes, including supply chain operations, manufacturing, and finance. The report then develops the business requirements, emphasizing the need for an effective accounting information system to manage multiple accounts and financial transactions. It proceeds to determine the system requirements, highlighting the importance of integrating accounting, financial, and informational systems for informed decision-making. The report focuses on software and vendor selection, recommending MYOB due to its features, data security, and suitability for SMEs. It explores ways to utilize technology to improve business efficiency, such as the use of AIS packages and cloud-based solutions. The report evaluates the efficiency of technology implementation, examines potential security risks and data breaches, and offers guidelines for mitigating these risks. The conclusion summarizes the key findings and recommendations for enhancing the company's strategic information system.

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Strategic Information System

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Contents
Introduction.................................................................................................................................................3
1. Identification of the Business processes..............................................................................................4
2. Developing the Business requirements................................................................................................6
3. Determining Systems requirements.........................................................................................................8
4. Software and vendor selection...............................................................................................................10
5. Determining the ways to utilize the technologies for improving the business efficiency......................12
6. Evaluation the level of efficiency of the technology implementation...................................................14
7. Examining the potential security risks and data breaches.....................................................................15
8. Guidelines on mitigating the risks........................................................................................................17
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20

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Introduction
The purpose of this report is to conduct research on the enterprise resource planning and
accounting information system for providing the high enterprise IT solution to the business
processes, systems, and globalized operations with the support of the information system
management. This report will describe the business processes, organizational requirements,
informational system requirements, technological implementation and improving the operational
efficiency, software and vendor selection, data breach, security risks, and recommendations for
mitigating the system risks and data breaches (CTI Reviews, 2016). This assessment will also
analyze and select suitable and compatible accounting information software for supporting
different business processes, organizational functions, data security and control, information
system management, and operational efficiency of Nowra/Nowchem Chemical Manufacturer
Pty. Ltd.

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1. Identification of the Business processes
Nowchem/Nowra Chemicals Manufacturers Pty. Ltd. is an Australian chemicals and
pharmaceutical manufacturing company located at Nowra, NSW in the Australian Country. It is
known for producing and supplying a range of chemical products across the Australian markets.
Nowra/Nowchem Chemicals Manufacturers Pvt. Ltd. was established by Fay Lamont and John
in 1977 as a family owned business by employing 2 people. It has been successfully operating its
businesses at its South Nowra base since last 40 years. Nowchem produces and distributes more
than 400 specialty chemicals including various detergents, disinfectants, cleaning products,
swimming pool chemicals (Chlorines, balancers, surfactants and flocculants), floor polishes and
sealers, aerosol products, washroom alkaline products and cleaning acids, hospitality chemical
products, deodorizing chemicals, decanting and distribution of bulk chemicals (sodium
hypochlorite, liquid Aluminium Sulphate, ) polymers, cosmetics, wax emulsions, and
pharmaceutical products (Simkin, Norman, and Rose, 2014). It is well known for manufacturing
and supplying the high quality chemicals, cleaning products, and pharmaceuticals to the
industries, homes, hospitality businesses, and specialized applications.

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(Source: Nowra Chemicals Manufacturing Process)
The business processes of Nowra Chemicals Manufacturer includes supply chain operations,
production, manufacturing, storage, distribution and logistics, human resource functions,
operation, accounting, finance, and CRM functions. The HR function is related to the
recruitment and retention of staffs, payrolls, compensation, and training. At present, Nowra
Chemicals Pvt. Ltd. has employed more than 65 people including 5 industrial chemists for
occupying over 5 acres with 2 manufacturing sites, administration building,
warehouse/distribution center, and additional adjoining storage facility (Wong and Ph.D., 2017).
The supply chain operations of Nowra Chemicals include (procurement, production,
manufacturing, logistics, and distribution). The manufacturing facility of Nowra Chemicals is
consisted of 38 mixing vehicles varying in size from 200 liters to 20,000 liters. Along with this,
it has 20 bulk storage tanks for the finished product stock holdings and raw materials. Along

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with this, it has 3 stainless steels reactors to work under the vacuum as well as 300 degree
temperatures.
The manufacturing plant generally contains 1 rubber lined reactor and 3 glass reactors. The tanks
in plant contain both jacket and coil for cooling and heating. The manufacturing of the esters and
raw material bases generally occurs in 3 specialty vessels (1.2 tonne, 3 tonne, and 10 tonne). The
manufacturing rooms for the cosmetics and TGA products are also situated on the manufacturing
site. The pharmaceutical area has 3x3000L tanks, 250kg cream mixer, and smaller tanks and
filling lines for the bottles from 100 ml. to 1.25L. Nowra Chemicals manufacturer delivers the
chemicals, cosmetics, and pharmaceutical products into Sydney on daily basis through Nowra
Transport, Toll Logistics, and Fastway Corriers (Turner and Weickgenannt, 2013). The company
also runs commercial trucks (12, 10, and 8 tonne trucks), commercial utes and vans to supply the
produced goods both into Sydney and the South Coast. The produced or prepared goods are
delivered to the individual clients, hospitality and other industries, pharmaceutical businesses,
swimming pools industries and specialized application purposes directly or indirectly.
2. Developing the Business requirements
Nowra Chemicals is an Australian manufacturing industry for offering the chemicals,
disinfectants, and pharmaceutical product. The business processes of Nowra Chemicals
manufacturer Pty. Ltd. are not of the global accounting standards because of the ineffective
accounting information system. The business processes of Nowra Chemicals Manufacturer
Limited include supply chain operations (manufacturing, production, distribution, and logistics),
sales, marketing, finance and accounting, HR and operations. But, accounting is the main
function or organizational process that connects the core organizational processes, activities, and

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operations through the accounting information system. At present, the firm has been facing
problems or complexities in managing multiple accounts, consistent information flow, and
management of the financial transactions, customer sales records, billing entries, bank deposits
and withdrawals, budgeting, and operational problems. The businesses of Nowra Chemicals is
needed to purchase and install appropriate accounting information system compatible to the firm
size, organizational processes, accounting and informational system of the organization
(Prakken, 2012).
(Source: Business Requirements and Accounting Software)
The firm might choose effective accounting software having the best accountancy features to
meet the business requirements of Nowra Chemicals Manufacturer. The accounting software will
assist the firm in the enterprise resource planning, day-to-day transactions, automation of the

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information and data accounts, employee payrolls, bank feeds, industry updates, bank
reconciliation settlement, currency transfers, journal and ledger entry, taxation and financial
planning, forecasting, budgeting and investment, stock inventory, and fixed asset management,
management of the product portfolio and branding. The accounting information system through
the AIS software package will be required to analyze the competition level of the industry,
industry statistics, growth factors and barriers, demand analysis, supply activities, and
forecasting of the country economic condition so that further changes in the business plans,
strategies, informational policies, and accounting systems could be made in order to grow the
businesses of Nowra (Advisory HQ, 2015). The AIS will also be required in the analyzing and
estimating the staffing requirements and payrolls, physical resource requirements (raw materials
and acids), and financial resource requirements (fund availability, loans facility, capital
investment and budgeting) to take the business decisions effectively.
3. Determining Systems requirements
Nowra Chemicals Manufacturer Pvt. Ltd. is required to determine the firm system requirements
through installing and updating the best featured and compatible accounting information
software on the computer systems. The AIS might be efficient to integrate the accounting,
financial, and informational system interactively for the best accounting practices, informed
decision-making, auditing standards, and financial reporting through the data availability and
consistent information flow. The compatible AIS software with the extensive features will assist
to get the regular industry and business information (transactional, transformational and
operational information), and managing various accounts and customer transactions (Mancini,
Vaassen, and Dameri, 2013). It will also assist in the regular information flow and data

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availability for preparing the financial statements, auditing records, accounts (payables and
receivables), reporting and inventory, customer data transactions, double-entry bookkeeping, and
invoicing. Along with this, the AIS software is required to prepare the financial reports,
employee payroll structures (salary, wages, bonuses, incentives, allowances, and rewards),
performance monitoring and feedback report, internal data control, data security, and information
system management.
The AIS will meet the technological and informational system requirements by integrating the
business processes, operations, and activities with the EDI, e-commerce, technological system
infrastructure, ICT, internet enables application and software programs. The accounting
information software will be needed in the automation, invoicing, taxation, multi-currency
management, e-CRM, capital budgeting and investment policies, bookkeeping entry, financial
reporting, sales performance records, maintaining record of the raw material received and
amount payable to suppliers and customer purchase transactions, billing, and products delivered,
order tracking and payment management, and investment decisions (Mageto, 2017). The AIS
over the ERP will be effective for the business firm to collect, store, exchange, use, and retrieve
the data and information for the use of the accountants, managers, engineers, taxation
consultants, and auditors to make financial and accounting decisions collectively for the growth
of the businesses.
4. Software and vendor selection
There are several accounting information software, such as MYOB, XERO, Sage, SAP ERP,
Recon, Netsuite, Microsoft Dynamics, Intuit QuickBooks, Freshbooks, and other AIS packages.

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Nowra Chemicals Manufacturer can select the best suitable, compatible, technical-feasible
accounting software suiting the internal operations, business processes, firm size, and accounting
and information system of the firm. The firm can select the suitable accounting information
software and vendor after analyzing the security features, data and information availability,
accountancy standards, and performance functions to support the bookkeeping, accounting and
financial functions.
(Source: MYOB Features Comparison)
MYOB is selected as suitable AIS software that is offered by the vendor MYOB accountancy
supplying firm for ensuring the informed and collective decision-making electronically, the best
accounting practices and financial reporting, and investment functions (User Basic Software,

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2017). MYOB will be given priority over other accounting software packages because of its
extensive features, data security, and accountancy support functions. Nowra/Nowche, Chemicals
Manufacturer Pty. Ltd. is a SME (small-medium sized enterprise) having less than the team of
100 employees (65 employees in current) to handle different business operations of the firm as
MYOB will suit the firm size, company profile and accounting information standards of Nowra.
MYOB is based on the cloud computing technology and SaaS computerized model and business
system. MYOB will provide the firm a platform to achieve better performance reports, high
production outcomes, and boost sales revenues and profitability by managing the multiple
accounts, customer transactions data, and better decisions with real time view of the finances.
MYOB has wide accounting information functional features, such as automation of billing and
invoicing, data security, bank reconciliation statement, double-entry bookkeeping (both in
journals and ledgers), multi-currencies, taxation, fixed asset management, stock inventory and
investment management, budgetary planning, payrolls, staffing, resource management, real-time
information and data availability, 24x7 technical support, standard business reporting,
forecasting and risk management, calculations and quotations, superannuation, frequent updates,
and online collaboration (MYOB, 2016).
MYOB is an accounting software solution designed to the small and medium size business
organizations in supporting the business processes of all levels within and outside of the
organization. It is one of the leading accounting software in Australia that is trusted by 1.2
million business clients across Australia and New Zealand. It provides the best enterprise
solution by managing multiple accounts and daily transactions in the businesses. The use of
MYOB will be effective for the firm because of the cost advantage, operational efficiency,

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reduction of the operational costs and runtime, user-friendly interface, ease of use, flexibility and
scalability, transparency of the financial transactions, control of the finances, tax compliance,
and on-going support and maintenance (MYOB, 2017).
(Source: MYOB, Leading Accounting Software in Australia)
5. Determining the ways to utilize the technologies for improving the business efficiency
Most of the organizations or companies use the AIS packages, enterprise resource planning, e-
commerce, EDI (Electronic data interchange), ICT (information and communication
technologies), IoT, Big Data, Point-of-sale system, and knowledge management and information
technologies for improving the business efficiency. The SMEs or accountant firms utilize the
AIS software, like XERO, MYOB, SAP, Sage ERP, Netsuite, Microsoft Dynamics, Intuit