Strategic Information Systems for Business and Enterprise Report

This report delves into strategic information systems, examining their role in business and enterprise. It begins by exploring the importance of internal controls in preventing fraud and ensuring proper information use. The report then articulates transaction cycles, financial reporting, and the significance of management reporting systems and e-commerce. It evaluates system development methodologies, highlighting the role of accountants in system development projects. Furthermore, the analysis extends to risks within computer-based systems, and a critical evaluation of cultural, security, privacy, and ethical issues is provided. The report covers topics such as fraud detection, inventory management, payroll systems, and the selection of consultants, concluding with an overview of the System Development Life Cycle and the accountant's role in its implementation.

Strategic Information
Systems for Business
and Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1....................................................................................................................................1
Question 2....................................................................................................................................2
Question 3....................................................................................................................................3
Question 4....................................................................................................................................4
Question 5....................................................................................................................................4
Question 6....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic information systems are developed in order to ensure that the organizations are
able to use the available information in a proper manner (Aldea, Iacob and Quartel, 2018). When
the management makes their proper use it ensures that the firms are able to process the
information correctly. In this assignment, detailed discussion will be made on critical evaluation
of role of accounting information systems, articulation of transaction cycles, financial reporting,
management reporting systems and e-commerce systems, evaluation of system development
methodologies and role of accountants in system development projects. Additionally, analysis of
risks in computer-based system and critical evaluation of range of cultural, security, privacy and
ethical issues facing individuals and organizations will also be discussed as a part of this project.
MAIN BODY
Question 1
(a) In any organization, there is a role which is played by internal controls so that they
can ensure that there is a proper use of various regulations in the organizations (Appelbaum and
et.al., 2017). In the organizations, an advanced technology system reduces fraudulent activities
by ensuring the following-
Detection of mistakes- When an advanced technology system is used within the firms, it
makes sure that the accountants are able to easily detect the various types of mistakes which have
been made easily. Thus in this way they make sure that the right steps are taken to rectify them
and ensure the reduction of fraudulent activities.
Detection of errors- The use of an advanced technology system in the organizations
ensures that the errors are also easily detected in the systems. Therefore in this manner it makes
sure that the organization can take the right steps to rectify them and ensure the reduction in
fraudulent activities.
Proper management of transactions- In an advanced technology system, the firms
make sure that they manage the transactions in a proper manner. Thus, it ensures that the
companies are able to ensure that if there is any mismanagement caused due to any type of fraud
it can be easily detected.
(b) The following types of frauds are possible within this business environment-
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Not recording the order- This type of fraud can happen when the sales department does
not records the order in a proper manner (Gu, Qi and Wang, 2018). Therefore, in this manner it
can create an issue related to wrong records being prepared.
Wrong amount in sales invoice- In this type of fraud, the sales invoice can show wrong
figures because of entering of a wrong amount. Thus this can lead towards discrepancies in sales
figures. This can happen in the billing department.
Updation of wrong amount in the account of the customers- In this type of fraud,
there can be a wrong amount in the account of the customers. Thus it can lead towards showing
of wrong figures in the books of accounts. This can happen in the accounts department.
Release of wrong item- Here, a wrong item may be released which was not ordered by
customer. It can lead towards wrong records being maintained in the inventory department. This
can happen in the inventory department.
Shipping of wrong order- This can happen when a wrong order is shipped to the
customer which was not ordered. This can lead towards an impact on the company's customer
service and can affect its reputation.
Question 2
(1) The reasons for using the alternative two are as follows-
 Systematic in nature- The alternative two organizes the whole work of processing of
inventory in a more systematic manner as compared to the alternative one (Kitsios and
Kamariotou, 2016). This ensures that the stock items can be managed in a better manner
without facing problems and issues. This is so because it ensures a better link between
Purchases, Data Processing Department, Receiving and Accounts Payable.
 Easy to track errors and mistakes- In alternative two the organizations ensure that they
can track the errors and mistakes in the management of inventory in an effective manner.
As this system follow a step-by-step procedure it makes the work of the companies quite
easier.
(2) The difference between the two is explained as follows-
In a Purchase Requisition, there is a request which is made by the customer to purchase a
specific item which is desired. In it, the customer is required to make sure that the product which
is desired to be purchased is requested.
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In a Purchase Order, there is an actual order which is given by the customers for purchasing a
specific product. Therefore, the customers provide the detailed information about the specific
products which they want to purchase.
(3) When a company does not deals in various types of products and has a limited range of
products to offer to the customers then the management can choose Alternative One so that it is
able to ensure that the details regarding the various orders are recorded in a proper manner. In
this way it can make sure that there is more efficiency and effectiveness in dealing with the
various types of products in a highly effective manner.
(4) The Receiving Department ensures that it is able to receive the orders of the customers
related to the purchase of the various types of products. The accounting problems that are
required to be resolved before eliminating the receiving department are as follows-
 Proper track of receipt of orders- If the receiving department is eliminated then it can
create issues for the organization as there may not be a proper track of the receipt of
orders. Thus this problem is required to be resolved before the company can eliminate the
receiving department.
 Dispatch of orders- The receiving department needs to make sure that the various orders
are dispatched in a proper manner. Therefore there can be a problem related to dispatch
of orders in the organization if it is eliminated. Thus this problem has to be resolved
before the company can eliminate the receiving department.
Question 3
(a) These are the risks which are present in the payroll system of HARDA Limited-
 Inaccuracy- The machines recording the attendance in the different departments of
HARDA Limited may show wrong timings (Ogiela, 2016). Therefore this can lead
towards inaccuracy and thus can create an impact on HARDA Limited as it can lead
towards wrong details regarding pay being entered in the company.
 No entries of payment of remuneration- The payroll department of HARDA Limited
may not enter the records related to the remuneration which has been paid to the
employees of the company. Thus this can create a significant impact on the system of the
organization.
(b) For the reduction of risks the following types of controls can be used by the management of
HARDA Limited-
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 Proper recording of attendance- To reduce the risk related with inaccuracy, the
management of HARDA Limited will be required to ensure that the attendance of the
employees is recorded in a proper manner thus ensuring more accuracy.
 Proper recording of transactions- For ensuring that the risk related with accounting of
pay, the management of HARDA Limited will be required to ensure that they can record
the transactions in a more proper manner. This will result in maintenance of up-to-date
records in the organization related to the remuneration being paid to the workers.
Question 4
In a manufacturing company, the following types of risks are associated with the business
processes-
 Marketing system- The marketing system in the manufacturing organizations may not
apply the proper marketing strategies which are desired for promoting the product and
ensuring that it is able to reach the various customers (Rezvani, Dong and Khosravi,
2017). Thus it can create a risk for the companies as it can create an impact on the level
of revenues and profits.
 Production department- The production department in the manufacturing companies
may not track the records of the various items which are being produced. Thus it can
create a risk for the firms as it can affect the management of the products produced.
 Work centre system- In the Work centre system in the manufacturing organizations,
there may be entry of wrong details on the job cards of the employees. Thus this can
create an impact on the payroll system and therefore creates a risk related with non-
maintenance of proper records regarding the pay of the workers.
 Warehouse department- There may be loss of stock items in the warehouses of the
company due to non-maintenance of the right details regarding their inwards and
outwards movement of goods.
Question 5
There are various types of risks which are associated with taking advice from consultants.
These are explained as follows-
Lack of meeting of deadlines- Sometimes the consultants do not respect the deadlines
which their clients may have and can miss them which can result in creation of problems and
issues.
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Wrong consultancy- Sometimes the consultants can provide wrong consultancy to their
clients which results in wrong choices made by them and therefore can create an issue for them
in the future time period (Soltanizadeh and et.al., 2016).
The procedures which can be used by the organizations for selecting a consultant are as
follows-
Identification of the consultancy service required- Firstly the client is required to
identify the type of consultancy service which is required. In this way the client will be able to
ensure that the right consultant is chosen for availing a particular service.
Setting a budget- The client needs to make sure that a right budget can be set to avail the
consultancy services. Thus in this way the client will be able to select a right consultant.
Finding a consultant who can meet needs and requirements- The client is then
required to find out a consultant who will be able to ensure that the various types of needs and
requirements are met effectively and efficiently.
Selecting a consultant- The client has to make sure that a right consultant is selected
after performing due research so that the required services can be availed.
Question 6
(a) Technical- Here, the project managers are required to evaluate the technical
requirements which the project has and the budget that will be required to fulfil them (Sun,
Strang and Firmin, 2017).
Economic- The project managers evaluate the level of profits which can be generated
when the project has been completed successfully (Szabó and Öri, 2017). Thus in this manner
the project managers are able to ensure that they are choosing an economically feasible project.
The use of cost-benefit analysis technique can be made by the managers so that they are able to
compare the costs with the benefits which they can receive for the particular project.
Legal- The project managers have to identify some specific legal requirements which
they will be required to fulfil so that they are able to ensure that they can fulfil them effectively
and efficiently which will lead towards the successful completion of the project.
Operational- The project managers are required to ensure that they meet out the
various operation-related requirements in an effective and efficient manner so that the project is
able to be completed successfully.
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Schedules- A particular schedule is required to be set by the project managers which
will make sure that they are able to follow a step-by-step procedure for effectively completing
the project.
(b) A System Development Life Cycle is used by the organizations so that they are able to ensure
that a project can be monitored right from its Inception till Completion (Wang and et.al., 2016).
Accountants in an organization should be involved in the detailed design and implementation of
this system so that they are able to ensure that they can easily meet out the various needs and
requirements which each stage may have and thus ensure that the project can be completed
effectively and efficiently.
CONCLUSION
From the above report, it can be concluded that strategic information systems are quite
useful for the businesses for making the best use of the information which is available with them.
The management has to ensure that by making the use of such systems it is able to ensure that
the various types of problems and issues of the organization can be easily identified and thus the
rectifying approaches can be used so that they are resolved in a highly effective manner.
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REFERENCES
Books and Journals:
Aldea, A., Iacob, M. E. and Quartel, D., 2018, October. From Business Strategy to Enterprise
Architecture and Back. In 2018 IEEE 22nd International Enterprise Distributed Object
Computing Workshop (EDOCW) (pp. 145-152). IEEE.
Appelbaum, D. and et.al., 2017. Impact of business analytics and enterprise systems on
managerial accounting. International Journal of Accounting Information Systems. 25.
pp.29-44.
Gu, Y., Qi, L. and Wang, J., 2018. Breaking the monolith: strategy, variety, and performance of
enterprise information systems. Journal of Systems Science and Systems Engineering.
27(6). pp.727-770.
Kitsios, F. and Kamariotou, M., 2016, September. Decision support systems and business
strategy: a conceptual framework for strategic information systems planning. In 2016
6th International Conference on IT Convergence and Security (ICITCS) (pp. 1-5). IEEE.
Ogiela, L., 2016. Cryptographic techniques of strategic data splitting and secure information
management. Pervasive and Mobile Computing. 29. pp.130-141.
Rezvani, A., Dong, L. and Khosravi, P., 2017. Promoting the continuing usage of strategic
information systems: The role of supervisory leadership in the successful
implementation of enterprise systems. International Journal of Information
Management. 37(5). pp.417-430.
Soltanizadeh, S. and et.al., 2016. Business strategy, enterprise risk management and
organizational performance. Management Research Review.
Sun, Z., Strang, K. and Firmin, S., 2017. Business analytics-based enterprise information
systems. Journal of Computer Information Systems. 57(2). pp.169-178.
Szabó, Z. and Öri, D., 2017, December. Information strategy challenges in the digital era how
enterprise architecture management can support strategic IS planning. In 2017 11th
International Conference on Software, Knowledge, Information Management and
Applications (SKIMA) (pp. 1-8). IEEE.
Wang, J. W. and et.al., 2016. On domain modelling of the service system with its application to
enterprise information systems. Enterprise Information Systems. 10(1). pp.1-16.
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