HI5019 Strategic Information Systems: Rainbow Illusion Case Study

This case study examines the Strategic Information Systems of Rainbow Illusion, a retail chain. The analysis begins by identifying and discussing six strengths in the company's system for controlling sales transactions, including assessment of duties, proper reporting, authorization, security, internal controls for cash receipts, and balance confirmations. For each strength, the study explores the problems Rainbow Illusion avoids by incorporating these controls. Furthermore, it explores situational pressures that increase the likelihood of fraud, such as the complexity of rules and buyer readiness. The case also evaluates the rationale for installing a distributed computer system instead of a centralized one, highlighting the benefits of speed, reliability, and scalability. Finally, the study concludes by summarizing the key findings regarding Rainbow Illusion's strategic information systems and their impact on the business.