This report examines the strategic information systems of Rainbow Illusion, a 30-store retail chain. It identifies strengths in its sales controlling system, such as the use of a distributed computer system, separate payment systems, invoice reviews, and a chain of authority with reconciliation processes. The report details the benefits of these strengths, including reduced errors and fraud prevention. It also analyzes situational pressures that could lead to fraud, such as employee illness or blackmail. Finally, it compares distributed and centralized computer systems, highlighting the advantages of the distributed approach for modular development and scalability. The report concludes with a discussion of how Rainbow Illusion's system helps mitigate potential risks and improve operational efficiency.
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