Strategic Information Systems Report: Rainbow Illusion Sales

This report provides a comprehensive analysis of the sales transactions at Rainbow Illusion, a retail store operating in New South Wales and Victoria. It begins by highlighting the strengths of Rainbow Illusion's sales processes, including the efficient billing process, robust cash flow management, and effective financial operations, along with the use of key performance indicators, discount and reward systems. The report then details the problems avoided by the organization through these processes, such as billing errors, cash flow issues, and data management challenges. It also identifies situational pressures faced by the company, such as financial management challenges and potential fraud risks. Finally, the report explores the advantages of a distributor computer system compared to a centralized system. Overall, the report offers valuable insights into the strategic information systems employed by Rainbow Illusion and their impact on the company's sales performance and financial stability. This report helps students to understand the importance of strategic information systems in business operations.

Strategic Information Systems for
Business and Enterprise

EXECUTIVE SUMMARY
This report has highlighted Strengths of the Rainbow Illusion system that Rainbow
Illusion is Strong at Billing Process, Cash flow system, Financial operation, Transaction
management, Information transaction and has a minimum chance of fraud. Further this report has
highlighted the benefits which is enjoyed by the Rainbow by adopting the above strength into the
system of the sales transaction. Further this report has highlighted Pressures of the company that
Rainbow has the pressure of using more prominent resource to record the transaction of an
organization and also they have to increase the number of the Human resource in the
organization. Further this report has highlighted the benefits of Distributor Computer system as
compare to the centralized Computer system.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Strengths of Rainbow Illusion in Sales Transaction...................................................................1
Problems Avoided by Organization............................................................................................3
Situational pressures in a company.............................................................................................4
Choosing appropriate computer system for a company..............................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Rainbow Illusion is the retail store based in the New south Wales and Victoria. Rainbow
Illusion used to sell the product of the company with the help of 30 store all across the
destination. This report is based on the case study of the Rainbow Illusion which shows the way
through which sales transaction are recorded in the organization. This report highlights the
strength of the rainbow Illusion and the benefit which has been enjoyed by the organization after
adopting the strengths. Further this report highlight the pressure which would increase the
likelihood of the Fraud for an organization. In the end report highlights the benefits of
Distributor Computer system as compare to the centralized Computer system.
MAIN BODY
Strengths of Rainbow Illusion in Sales Transaction
The sales operation of Rainbow Illusion are good to maintain sales process in
organization there are different strengths of organization in sales precess that are as follows-
Billing Process
It is important for organization to keep details of product that are selected by customer
for buying. In retail store of Rainbow Illusion company process used for billing is very well
arranged and suitable for retail store. The details of sales are maintained by sales person
manually and then is cross checked by the cashier on billing counter during mechanical system.
This thing improves the efficiency of store in billing process (Cassidy, 2016). Manual billing and
then mechanical billing allows employees to make correction before final billing. This also
reduce the load on cash counter because it needs short time to complete billing process. Through
this process customer also get the better information about prices of products and final cost of
product after making respective deduction like discounts and reward points. This thing also
provide information of sales made by each employee on store floor.
Cash Flow
The strategy used by organization for cash flow is good and efficient. Various form of
transactions are used by Rainbow illusion to accept payment form customers. This variation
provide flexibility of payment to consumer. Consumers are able to pay through cash, cheque, and
bank cards. Cash flow process is constant in company and process used by company is profitable
for organization. There is no troubles in cash flow because money transition methods used by
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organisation are good enough to maintain financial structure (Kamariotou and Kitsios, 2019).
Better cash flow provide better information to accounts department to prepare final document of
company profit.
Financial Operations
In Rainbow illusion financial operations are efficient for both customer and store. Each
transaction made in store have specific record for daily calculations. In Rainbow illusion store
four part sales registers are used to maintain daily record. In four part sales register provides
better details of purchases to store manager and it also provides detailed information of bill to
customer. In normal cash transaction no other details are required but in case of bank card and
cheque payment organization and banks need detailed information of transaction that were made
in billing payment procedure (Hoque, Hossin and Khan, 2016). This detailed statement reduce
the chances of error in further process of maintaining record for research work.
Information Management
information system used by Rainbow Illusion works on daily basis to keep better record
of company sales in each store. This provide better opportunity to make respective changes in
company sales strategy to improve number of sales for particular store that is performing low.
Information system provide detail information of sales to management and leaders of company
to evaluate the performance company on regular basis to check efficiency of strategies used by
them to improve current business operations. Information system like DSS and transaction
process system are capable to provide better processed data to company. Decision Support
system help leadership to take right decisions related to supply and demand. Transaction process.
KPI: The indicator used by the Rainbow Illusion is so good that It helps the organization in
maintaining the sales transaction and profit very efficiently. Competitor prices, Sales cycle
length, Employee satisfaction are the few indicator which are used by the company to maintain
the sales and the profit of the company. This indicator also helps the organization in presenting
the good image of the company in front of the market.
Discount and reward system: Discount and the reward which is given by the organization is
very good that it helps the organization in attracting the larger number of the customer in the
organization. Discount and reward system also helps the Rainbow Illusion in getting the
competitive advantage as Price is the main element in attracting the customer.
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Problems Avoided by Organization
Different operation and processes are used by the Rainbow Illusion to address various
problems that can reduce the profit and productivity of company. For Each possible problem
respective changes and arrangements are made by company.
Billing Related Problems
billing process is most important to keep the information of sales in organization. In
manual billing there is high possibility of major and frequent mistake. Rainbow Illusion has used
different alternative solution and procedures to avoid billing mistakes (Peppard and Ward, 2016).
By cross checking through telly procedure organization has avoided different financial issues to
reduce fraud and financial crisis. This is how for better economical stability organization has
used four part billing procedure. Main problem company has avoided is about problem in
balance in business function.
Cash Flow
Cash flow is important for organization to keep the operation of company efficient and
profitable. Without cash flow system it is difficult for organization to manage all operation of
company. Cash flows allows the company to avoid financial trouble on ground implementation
level. Other problem avoided by company through cash flow system is maintaining constant
profit. Business of textile industry is depended on weather conditions. In different seasons
company faces ups and downs in sales and profit and by using cash flow strategy organization
has avoided these problems.
Information System
Information system allows the company to avoid mistakes in data management and save
time for company. Major issues in information management are related to manage the lengthy
data of sales in local store and data management centre. Other problem is about research of data
and information related to sales (Szabó and Öri, 2017). Information allow the organization to
manage large size of data in compact place and drives and tools like DSS provide facility of data
analysis and processing to improve performance of organization in market place.
Discount and Offers
Various organization use to provide rewards and discount to customer in order to keep
the loyal towards organization. This strategies and processes are used by organization to avoid
situation of reduced sales and less profit conditions. This strategy is also help the organization to
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avoid issues with consumer to make better relation for long term business goals. Various
discounts and offers related to sales help the organization to attract more customer towards
company product to improve number of sales for Rainbow illusion.
Financial Operation
Financial operations are used by organization to avoid problems related to payment
procedures. There are only limited ways to make monetary transaction in organization it can
cause trouble to company in cash handling. Various form of money transfer the organization to
provide more flexibility to consumer to avoid problems in transition process. This also resolve
problem of recording and managing information of payment in mode of cheque and bank card.
KPI
Key performance indicators are used by organization to reduce the problems that are
related to sales performance of Rainbow Illusion (Kitsios and Kamariotou, 2018). There are
different indicators are used by organization to evaluate the performance of company in the
market place. This indication help the organization to avoid market and sales performance
failure.
This is how different strengths are utilised by organization to avoid or reduce problems in
organization's sales.
Situational pressures in a company
Situational pressure can be determined as the situation in an organization where it faces
extreme work pressure or scarcity of resources with conflicts in the organization can be refereed
as situational pressure (Teodorczuk and Billett, 2017). It can occur if several aspects takes place
in a company which are necessary for the administration to determine the pressure. The aspects
through which situational pressure occurs includes stimulus overload, preoccupation and
framing. High cost can prevent the organization to survive in a market due to bad economic
conditions in business environment. Rainbow illusion is a well known retail chain with 30 stores
which deals in ready to wear clothes for young females.
In a company like Rainbow illusion, it is necessary for the company to determine the
situational pressure and take corrective action in order to prevent any organizational loss.
Presently the company is facing a situational pressure which can be determined from the case
study. This situational pressure can lead the company towards organizational loss.
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Finance management is a major part in an organization which is to be managed in a
significant manner that company doesn't feel any situational pressure in a typical economic
condition. Firstly, the poor conditions of accounting is a bad option for the company as company
can face a problem of human resource for the accounting at any time which can be a pressure for
the company as the company is recruiting part time youngsters who practice accounting, they can
leave the job at any moment of time which can be a extreme pressure situation is company is
unable to find a proper substitute for the accounting position.
Another situation where Rainbow illusion can face situational pressure is a situation
where accountant is offering the products at more discounted price for self commission which is
a situation of fraud. A major difference in suspense account can lead the company to
organizational loss which can effect the operations of the company. Accountant can offer special
discount to customers if they agree with no bill deal, in such a case customer Denys for a bill if
they gets a discount. This money can directly go into the pocket of accountant which can reduce
the revenue of the company and increases organizational loss in the company.
These situations are to be undertaken by the company in order to maintain good financial
status and perfect revenue by preventing any fraud which can be done in the company. There is
an anther aspect also where fraud can take place in Rainbow illusion, in a situation where
accountant asks the customers to take products without bill as the procedure of billing is too long
and taxes are also added in the bill, which can effect the revenue of the organization by keeping
all the money with the accountant which can effect the revenue of the company negatively and
organizational loss may occur in the company. Company should consider these situations to
prevent situational pressure in the organization which can help the company in operating its
business in a significant manner.
Choosing appropriate computer system for a company
A computer system play a major role in technological environment of a company as it
helps a company in performing its function with a more smooth and significant manner by using
a computer system and digitalise the process of the organization which can significantly reduces
the cost of resources and increases accuracy in work. There are majorly two types of computer
systems which are used by most of the organization for the purpose of processing the transaction
in a more significant manner, these processes consist of distributed computer system and
centralised computer system. It is said that distributed computer system is more better than
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centralised one and most of the companies opt it for the convenience accounting (Borissov and
et.al., 2016).
A distributed system can be determined as a system whose components are being located
on different networked computers which helps in communicate and coordinate their actions by
passing messages to one another. These components interact with one another for the purpose of
achieving a common objective. Whereas centralised computer system is a kind of computing
architecture where most of the processing is being performed on a central server. This central
server is the major component in centralised system as it is responsible for delivering processing,
application logic with providing computing resources to the attached client machines.
The major reason for which distributed computer system is being preferred by most of the
companies are its features which includes speed and content distribution with scaling and
parallelism. Distributed systems are faster than centralised computer systems. The major
advantage of this system is this includes a distributed data base in which queries can be routed
into server with a particular user's information, rather than all the request which are having to go
to a single machine that can be overloaded. Another reason for preferring distributed computer
system is its scaling and parallelism feature. Once the system are setup to distribute the data
among the servers which are involved, they can be easily scalable (Barzegar and et.al., 2018).
Centralised systems are not being preferred by most of the companies as it have several
disadvantages which make them less preferable than distributed computer systems. The major
disadvantage of centralised system is it implies a central focus of control, this can lead to
complete failure as the possibility of failure is a major concern for networks. Another
disadvantage to centralised system is access and diversity. In most of the cases individuals
working on a centralised system may have a different need, where this system requires users to
access individual information on the network uniformly with the help of using the same process.
This type of network may not support flexibility which is being required by different users and
their needs may vary (OlmstedThompson, 2018).
Company like Rainbow illusion must consider distributed system as it is a significant
system than centralised system which can help the company in operating in a more significant
manner and process its activities more easily.
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CONCLUSION
After going through above report it has been summarized that the system which is used
by the used by Rainbow for controlling sales transaction is very good and it provide the variety
of the benefit for the Rainbow Illusion as the strength helps the organization in overcoming
many problems. It has been also summarized that there is some sort of the pressure on the
Rainbow Illusion which can increase the likelihood of fraud in an organization. In the end it has
been summarized that Distributor system used to offer the variety of the benefit which is not
offered by the Centralized system which has forced the organization to install Distributed
Computer system.
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REFERENCES
Books and Journals
Barzegar, F., L. and et.al., 2018. Remote distributed antenna system. U.S. Patent 9,930,668.
Borissov, L. and et.al., 2016. Zero downtime mechanism for software upgrade of a distributed
computer system. U.S. Patent 9,229,707.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Hoque, M.R., Hossin, M.E. and Khan, W., 2016. Strategic Information Systems Planning (SISP)
practices in health care sectors of Bangladesh. European Scientific Journal. 12(6).
Kamariotou, M. and Kitsios, F., 2019. Strategic information systems planning. In Advanced
Methodologies and Technologies in Business Operations and Management (pp. 535-
546). IGI Global.
Kitsios, F. and Kamariotou, M., 2018. Decision support systems for strategic information
systems planning: an approach for logistics strategic management. International Journal
of Decision Support Systems. 3(3-4). pp.207-221.
OlmstedThompson, J., VMware Inc, 2018. Automated upgrade system for a service-based
distributed computer system. U.S. Patent Application 10/042,628.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
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.
Teodorczuk, A. and Billett, S., 2017. Mediating workplace situational pressures: The role of
artefacts in promoting effective interprofessional work and learning. Focus on Health
Professional Education: A Multi-Disciplinary Journal. 18(3). p.80.
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