Analysis of Strategic Information System for Sigma Healthcare Ltd

This report provides a comprehensive analysis of strategic information systems, focusing on the selection of an AIS/ERP system for Sigma Healthcare Ltd. It begins by defining business processes within an organization, categorizing them into primary, support, and management processes, and examining their roles in achieving organizational goals. The report then outlines business requirements, including the need for data, experienced employees, and technology implementation. It further details system requirements, such as server hardware, software features (billing, accounting, fixed assets, tax, reporting, and security), and vendor selection. The analysis recommends SAP as a suitable vendor due to its wide range of accounting features and ERP capabilities, supporting various business functions and industry sectors. The report emphasizes the importance of these elements in improving business performance and achieving IT investment objectives.

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Table of Contents
Introduction.................................................................................................................................................3
1. Business processes of the organization....................................................................................................3
2. Business requirements.............................................................................................................................5
3. Systems requirement...............................................................................................................................6
4. Software and vendor selection.................................................................................................................9
5. Ways which companies or organizations can utilize to improve business efficiencies..........................11
6. Level of efficiency of technology implementation................................................................................12
7. Potential security risks and data breaches..............................................................................................13
8. Guidelines to mitigate these risks..........................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15

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Introduction
At present time the business environment is changing rapidly due to development in technology
and information system. In this concern, the report is describing the process of selecting an
AIS/ERP to make investment decision in information system. Apart from this, the report is
outlining on business process, business requirements, system requirement and selection of a
vendor. The report is considering SIGMA HEALTHCARE LTD to make better understanding
about the AIS/ERP to improve the business performance.
1. Business processes of the organization
Business processes are set of several activities that are accomplished by an organization to
achieve predefined goals and objectives. These business processes are systematic approaches of
improving the organization’s performance efficiently (Becker et al., 2013). The business
processes enable to the organization to execute certain business activities internally with
effective cost and resources. In this concern, depending on organizational structure and nature of
work the business process are categorized as below:
Primary processes or operational processes: The primary or operational processes are referred
as fundamental set of several business activities. These processes are related with the core value
chain and business activities that are essential for the whole operational activities of an
organization (Becker et al., 2013). In Sigma Healthcare Ltd, the primary processes are employed
to deliver value for the customer by serving to construct a service or product. The primary
processes characterize indispensable business activities that are accomplished to achieve
business goals and objectives such as generating revenue.

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Furthermore, in a healthcare or medicine related organization the primary processes are cross-
functional, end-to-end activities to deliver value to customers. These processes are often critical
processes because these business processes are symbolized as crucial activities that an
organization executes to carry out its long-term mission. Sigma Healthcare Ltd employed these
processes to framework the value chain, where all strides include value to the previous stride to
contribute in the formation or delivery of products and services to generate value for the
customers. The management of Sigma Healthcare Ltd has focus on its manufacturing process to
provide qualitative products and generate believeness of the customers on its products and
services (Sigma Healthcare, 2017). Apart from this, the company has also make attention on
quality assurance process product assembly process and preventive maintenance procedure to
make effective the primary business processes.
Support processes: In an organization, these processes are intended to make available support
for the primary processes as requirement of infrastructure and management resources in the
primary business activities. It is analyzed that the primary processes and support processes are
different from each other as the primary processes generate direct value to the customers but the
support processes not generate direct value to the customers. The examples of support processes
are infrastructure management, information technology management and human resource
management (Hung et al., 2011). All of these support processes are involved in a life cycle of
resources and associated with organization’s different functional areas. In addition, the processes
related to managing ability of the organization and not delivering direct value to the customers
but helpful for the organization to deliver the product and services.
In medical industry, the support processes also include a number of cross-functional activities
such as engineering design, purchase planning and process of placing the production capacity.

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All of these cross-functional activities could contain cross-functional group with agent from
finance, engineering, purchasing, manufacturing, information technology and different types of
functional organizations to support the operational activities of the organization (Hung et al.,
2011). Hence, the support processes of adopted by Sigma Healthcare Ltd do not openly generate
the customers value but important for the organization as strategic and fundamental requirement
of the organization. Therefore, the company can use these support processes to increase the
organization’s ability of accomplishing primary processes.
Management processes: In an organization, the management processes are exploited to assess,
supervise and manage different types of business activities. These procedures ensure that the
primary processes and support processes are assembling operational goals, regulatory, legal and
financial requirements. As support processes the management processes also not directly provide
value to consumers, but are essential to make sure that the Organization is operating effectively
and efficiently its business operations (Susanto et al., 2011). In addition, the business
environment of Australia is stable and supportive for the organizations therefore it is analyzed
that the management processes of Sigma Healthcare Ltd are effective to achieve its goals and
objectives in medical industry.
2. Business requirements
Business requirements are defined as a phase of expansion life cycle, which facilitates the
requirements to the end users as a first duty of the organization to direct the plan for future
system. In other words, the business requirements are related to specific needs that must be
address by the management to achieve organizational goals and objectives in effective manner.
Therefore, the business requirement must be defined clearly at a very high level with providing

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enough guidance and information related to organization’s mission (Ramachandran, 2013). In
this concern, the different contents of business requirements for Sigma Healthcare Ltd are
discussed as below:
 There is requirement of target audience to expand the business activities across different
countries
 The management has need of different types data such as demographic data, sales data
and industry data for better business decisions
 For better financial position there is requirement of stakeholders and business partners
 Requirement of highly experiences employees who have good knowledge in medical
industry because the highly experienced employees will be able to produce qualitative
products
 There is requirement of training for the new educated employees to introduce the current
trends in medical industry and understand the new technology adopted by organization
 In healthcare industry the technology is developed rapidly therefore there is requirement
of implementing new technology in the organization for better performance and quality
products
3. Systems requirement
The system requirements are different from the business requirement in many ways. The system
requirements are defined as a way of describing high level design to deliver business
requirements. As AIS/ERP is computer based system to manage different internal and internal
resource with including financial resources, tangible assets, materials and several human
resources therefore it has some essential system requirements (Grabski et al., 2011). The purpose

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of system requirement is to assist the flow of information among all business departments inside
the limitations of an organization with managing relationship to the outsider business partners. In
this concern, to manage different business activities different system requirements are discussed
as below:
Server Hardware Requirements:
For a successful implementation of ERP in the organization, it is essential to establish
appropriate server hardware system. As Sigma Healthcare Ltd is big organization and there is
multi user of software therefore the organization is required to use a high level of CPU such as
Xeon with intellectual features such as 2 Quad Core CPU’s, 2.0ghz+ CPU speed, 32GB RAM,
and high disk storage. In addition, a healthcare company can use MD software to work well
because MD can be easily scaled up in the large organizations and can be used by different users
at a time. This software is not supported by Windows XP because this window does not meet the
security standards required in medical organizations. In this regard, the organization will be
required Windows Vista Home Premium, Windows 7 Home Premium, Windows 8 and Windows
10 Home for professional use (NowMD, 2017). These system hardware requirements will be
helpful for the organization in performing the accounting and different organization’s operations.
In addition, the MD is entirely supported by “Remote Desktop Services” which is also known as
Terminal Services in the Windows Server operating system. Therefore, it company can establish
the fully innovated and advanced technology it its AIS/ERP to support the management
processes.
Furthermore, the different software features that are essential as system requirements are
discussed as below:

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Billing and invoicing features:
It is essential for an organization to check properly that the established system is able to generate
automated transaction, billing, invoices, printing, credit and processing in the selected software
package (Peschard et al., 2013). The automated system will be able to carry out the IT
investment objectives of the organization therefore it important to establish automated system to
manage all financial activities.
Core Accounting Features:
The organization should consider that the established accounting software is able to generate
account receivable, account payable, audit trial, general ledger, drill down and expenses
management for better financial decisions. In present time, these accounting features are
essential for an organization to manage business account with accuracy.
Fixed asset features:
There are different types of fixed asset features such as depreciation tracking, split asset and
RFID tracking that are essential for an organization to consider in software. Apart from this, the
software should be functionally considered by the organization to execute inventory management
practices in effective manner. Hence, it is essential for an organization to establish fixed asset
feature for effective inventory management practices.
Tax features:
In corporate sector there are different types of taxes such as sales tax, VAT and excise duty that
are paid by the companies. Therefore, the tax feature is essential tool for established IT system to
perform the accounting functions in effective manner. These features are essential in a software

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package to maintain financial transactions according legal rules and regulations of account. On
behalf of this feature the required information will be helpful for the management to take
appropriate financial decisions.
Reporting features:
The established accounting software should be able to produce balance sheet, cash flow
statement, budgeting, custom report, sales report, P&L account and depreciation automatically
with accuracy. These features will be supportive for the management to produce overall
financial report for business decisions and achieve the IT investment objectives in dynamic
manner.
Security feature:
It is essential for an organization to secure its data related to business operations. In this concern
it is analyzed that the established software should be secure and protect the financial data from
hackers.
4. Software and vendor selection
In is analyzed that ERP (Enterprise Resource Planning) is an electronic and valuable tool for the
organizations, which may impact on overall business activities. In this regard, to manage several
business activities such planning, purchasing, research & development, supply chain
management, marketing and sales it is essential to select an appropriate software and vendor. On
the basis of above analysis it is observed that the company can use SAP vendor in order to
establish accounting software (Tullous and Utecht, 2011). It a beneficial vendor for Sigma
Healthcare Ltd due to a wide range of accounting features in compare to other vendors. In other

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words, the SAP vendor offers a wide range of accounting features and enterprise resource
planning such as business intelligence module, account receivable, budgeting and resource
modules for the organization. In addition, the SAP vendor include the features of procurement
module, supply chain management module, manufacturing module and social media that creates
it importance for the organization.
Furthermore, it is analyzed that the SAP vendor is a better accounting solution for both medium
and large size organizations therefore it is advantageous for Sigma Healthcare Ltd in obtaining
accounting goals and objectives. In this regard, the SAP vendor covers different areas of an
organization in order to assist several accounting and human resource services so that the
organization can select this software package to obtain objectives. Apart from this, an
organization can cover different industry sectors such as banking, finance, aerospace, defense,
education, consumer services, information technology, telecommunication, insurance retail and
entertainment. Therefore, this software package can make an organization’s operational activities
effective in different areas which may increase the organizational performance in effective
manner.
Besides, the SAP vendor offers different support system to provide effective consumer services
through email, live chat, brochures, phone and online platform. Therefore, it is analyzed that the
Sap is an effective and fast procedure of making relation and contact with the target customers at
lower cost. As well as, the organization can lessen its sales cost and time with increasing the cash
flow. It is also analyzed that the SAP vendor is helpful in reducing the borrowed cost and
delivery time with increasing the investment potentials. Hence, selection of SAP vendor and
accounting software is helpful for the organization in increasing overall productivity and
considerable in saving cost of operational activities.

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5. Ways which companies or organizations can utilize to improve business efficiencies
There are different ways that that can be utilized by the organizations to improve the business
efficiencies. These ways are described as below:
Improve communication at the workplace: In the competitive business environment, it is
essential for each organization to improve the way of communication at workplace. In this
concern, it is analyzed that the management of the organization should communicate with its
employees face to face get their views and opinions freely (Patterson, 2015). This
communication process will be helpful for the employees to generate confidence and motivate to
do work hard. Therefore, it is an effective way of improving business efficiencies.
Inspire through Gamification: It is an effective for the organization through which an
organization can motivate its employees in different way.
Regular company meetings: It is essential for an organization to organize regular meetings with
its team members to discuss on generating issues at the workplace. On the basis of discussion in
meetings the management will be able to take business decision related to development of
products and services as well as beneficial decisions for the employees.
Provide opportunities for skills development: In the competitive business environment it is
essential to provide the opportunities of developing skills for the employees. These opportunities
will encourage the employees to perform their duties in effective way, which will lead to higher
performance of the organization. In this regard, the organization should involve different
appraisal programs for the employees to develop their skills and better opportunities. For this the
management can implement training programs for the employees and create more opportunities

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to provide new responsibilities as the employees have abilities to contribute in in organization’s
competitiveness.
Develop helpful processes at the workplace: By developing a helpful process at the workplace
the organization will be able to develop the employee’s capabilities. In this regard, it is analyzed
that in the helpful processes each of the employees will feel free and able to ask to each in
difficult situations and also feel confident to do work in better way. Therefore, it is an effective
way for the organization to develop the business efficiencies.
Provide helpful technology at the workplace: In the growing competitive business
environment it is essential for an organization to invest on employee resources. The
organizations should adopt new technologies and collaborative tools to improve the work
efficiency at workplace.
6. Level of efficiency of technology implementation
In the present business era, it is essential for each organization to develop its technology at the
work place for better business results. The technological implementation may improve the work
efficiency of an organization. In this concern, it observed that the technology is playing huge role
in developing the organization’s capabilities of producing innovative products. As well as, the
technology also facilitates an effective platform of communication for the organization to
communicate with employees and customers. In addition, the technology connects team
members within the organization to communicate with each other in effective manner.
Furthermore, it is analyzed that the technology also provides automated business environment in
the organization, which improves the efficiency of production at lower cost and in less time.
Therefore, the technological implementation is cost and time effective for an organization. In