Strategic Information Systems: Bell Studio System Analysis Case Study

This case study examines the information systems of Bell Studio, focusing on the purchase, payroll, and cash disbursement systems. The analysis identifies internal control weaknesses within each system, such as issues with reconciliation, separated duties, and improper access control in the payroll system; improper control, continual adoption issues in the cash disbursement system; and process timing, manual process issues in the purchase system. The report includes data flow diagrams and system flowcharts to illustrate the functioning of each system and the interrelationships between them. The study further outlines the risks associated with these weaknesses, including increased processing time, potential for errors, and data redundancy. The conclusion emphasizes the need to mitigate these weaknesses to improve system efficiency and achieve organizational goals.

Running head: BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
Name of the Student
Name of the University
Author note

1BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
Executive summary
Bell studio is an organization that aims at manufacturing artefacts. The main suppliers for
these organisations are from different countries. Different countries that are associated with
the organisation are Australia, China, Japan and New Zealand. The main objective associated
behind preparing this paper is to describe the major functioning that are associated with
each system of the Bell studio. The organisation contains three major system that are the
purchase system that deals with making transaction between the vendor and storing the
details regarding each transaction, the payroll system that mainly concerned with the
payments made towards the employees based on their working hours and lastly Cash
disbursement system that deals with managing the cash flow within the system. This three
system plays a major role in the organisation and hence it becomes a essential to analyse
the working that is taking place within the system. In addition to this it has been of served
that there are several internal control weaknesses associated with each system separately.
These internal weaknesses have turned to risks for the organisation that is further impacting
the performance of the Bell Studio organisation. Hence the report will entirely focuses on
describing the internal control weaknesses that are faced by the organisation while working
with each major system. The report includes data flow diagram for each system and system
flow charts. Thus after preparing the report it will become easy to understand the working
that is performed by each system.

2BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
Table of Contents
Introduction...............................................................................................................................3
Internal control weakness associated with the systems...........................................................3
Risks associated with each system.............................................................................................6
Data flow diagram for cash disbursements system and purchase system................................7
Data flow diagram for payroll system........................................................................................8
System flowchart for payroll system..........................................................................................8
System flowchart for cash disbursement system......................................................................8
System flow chart for purchase system.....................................................................................8
Conclusion..................................................................................................................................8
Bibliography.............................................................................................................................10

3BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
Introduction
Information system plays a major role in each organisation. Thus it becomes
essential to enhance the performance of the information system within the organisation so
that it can provide huge benefit towards the functionality of the organisation. The mail
functionality that is performed with the use of information system is that it helps in storing
the crucial data related to an organisation. This data can be referred for future purposes. As
a business analyst it is important to describe the main functioning that is associated with an
information system. This report will focus on describing the functioning of cash
disbursement system, payroll system and the purchase system. In addition to this the report
will also focus on that each activities that takes place between each system. While analysing
a system it becomes essential to address the activities and entities associated with it. The
main component of purchased system is related to filing the major documents, on the other
handThe cash disbursement system focuses on controlling the cash flow within the
organisation and lastly the payroll system focuses entirely on processing the accurate
amount of payment towards he employees. Before processing any payment the systems
reviews the working hour cards of each employee. This process tends to be one of the
lengthy process it with in the organisational.Hence with the use of the report it will become
easy to outline the major functioning along with the internal control weaknesses associated
with each system.
Internal control weakness associated with the systems
Payroll system:
The payroll system is one of the major systems within the organisation as it looks after
the payments of employees. It is very much essential for every organisation to satisfy their
needs of their employees. Hence accurate payment towards the employee will ensure a
better relationship between the organisation and the employees.However it is observed
that while processing the paymenttowards the employs the system faces several challenges.
The internal weaknesses that are faced while processing the payment in the payroll system
are discussed below:
1. Frequent reconciliation process: Reconciliation process is one of the important
process with team every system. With the help of this process it becomes easy to
analyse the activities that are taking place within the system. This also helps in
assessing the accuracy that is maintained within the organisation.thus it becomes
essential to have a proper supervisor who will be responsible for reconciling all the
Data associated with the organisation. The organisation bell studio lakhs in proper
control over the accounting system. This further leads to discrepancy in the results
and hence the payment process gets delayed.
2. Separated duties: on the payroll system contains employees at different branches
hence they are allocated with different jobs. However it is of served that from the
supervisor till the payroll clerk each one is responsible for reviewing the payment
process. This leads to occurrence of errors due to excessive number of people with
in the payroll system. In addition to this the time consumed also increases and leads
to disappointment of the employees.
3. Improper access control over the accounting system: it is a observed that the
accounting system lacks access control. This impacts the performance of accounting
system and lead to improper results. Moreover it is observed hat the timecards are
being reviewed by several supervisors and branch manager also. Hence this leads to
consuming a lot of time before processing the amount. Distance to be one of the

4BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
major internal control weaknesses within the organisation that is needed to be
mitigated properly.
Cash disbursement system:
The cash disbursement system is mainly concerned with the cash flow that is taking
place between the organisations. This check the data flow within the system and ensures
that proper cash is being dispatched from the system. However the cash disbursement
system of the organisation is not integrated properly and this leads to one of the major
reasons for internal control weaknesses. The internal control weaknesses turns into major
risks for the organisation in future. Thus it becomes essential to highlight the major internal
weakness within the Bell studio information system. The issues faced are as follows:
1. Improper control over the system: while managing a system associated with cash it
becomes a essential to have proper control over the activities performed by it. This
becomes essential to ensure the number of peoples accessing the system a reliable
or not. However it is of served that the organisation and lacks in providing proper
control to only authorised persons. This system is Open to all and anyone can access
the data for the purpose of calculating the cash amount. This turns to be one of the
major drawbacks of the cash disbursement system.
2. Issues with continual adoption: it is observed that the organisation faces a lot of
issues with the continual adoption process. This also increases the chances of errors
within the system.With the strategy of continual adoption the security concern also
arises within the organisation. This becomes one of the important internal weakness
faced by the cash disbursement system.
Purchase system:
The purchase system mainly focuses on processing the payments towards the vendor
and selecting appropriate finder for the purpose of delivering the goods. This system also
focuses on sending the proper invoice statement to the cash disbursement system for
further transaction.However it is observed hat the purchase system of the organisation has
faced several issues with internal control weaknesses.The internal control weaknesses are
described below:
1. Huge process timing: The purchase system includes receiving data from different
vendors and submits it to the cash disbursement system. This leads to a lengthy
process and impacts the functioning of the system. Each Process includes checking
details related to every transaction. Apart from these physical examination is being
also done on each product so that proper monitoring can be done on the products.
The manual process increases the time and hence it impacts the overall functionality
of the system.
2. Issue associated with manual process: the purchase system includes manual
processing of data and files. This leads to increase in time and sometimes it also
leads to development of unwanted errors. Hardcopies are printed regarding each
transaction and are distributed to different departments. This consumes a lot of time
and the chances of error also increases. Hence this turns to be one of the major
reason behind failure of the system.
3. Reports distributed to different departments: once the hardcopies are generated
from each transaction these copies are further regulated to different departments.
This leads to impacting the performance of the organisation as regulating hard

5BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
copies takes a huge amount of time and also tends to impact the processing of the
system.
Risks associated with each system
The internal control weaknesses that are identified within the system urns to be
major release in future. Hence it becomes essential to identify the risks that are likely to
generate from these weaknesses. The major release those are likely to arise with the
internal control weaknesses are described below:
 The response time for the system increases as it takes a huge amount of time to
calculate the payment of each employee.
 With the increase in wait time for the employee the chances of employee
disappointment rate also increases. This will further impact the processing of the
organisation.
 Increase in processing time will also affects the development process and will
eventually end up impacting the customer satisfaction rate.
 Due to excessive number of supervisors in reviewing the records related to
employ it is observed hat the chances of errors and discrepancy between the
data increases. This will further impact in the payment process and will lead to
dispatching wrong amount of payment towardsthe employees.
 As the same data are reviewed by different supervisors this space crunch concept
increases. Same data are being stored by different employees with in the system
and hence it consumes excessive and unwanted pace between the system.
 With increasing access the data the data redundancy save within the system also
increases and this leads to impacting the performance of the organisation.
 As this system involves reconciliation in different stages hence the development
time increases. This eventually leads to hampering the performance of the
system.
 Inappropriate control over the data leads to irregularprocedures.These
procedures will further lead to hampering the performance of the system. As a
result these turns to be one of the major risks associated with the system.
Data flow diagram for cash disbursements system and purchase system

6BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
The above dfd is being developed for understanding the activities that is taking place
within the cash disbursement and purchase system. The main reason behind implementing
both the system together is that all the activities of purchase system and As disbursement
system are inter related with each other. Hence for understanding the complete
performance of each activity is it becomes a essential to integrate the data flow diagram for
both the system together.
Data flow diagram for payroll system

7BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
The above system describes the functioning of payroll system. The main aim of
developing a data flow diagram is to understand the flow of activity that is taking place
within the system.
System flowchart for payroll system

8BELL STUDIO SYSTEM ANALYSIS AND DESIGNING

9BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
The above flowchart is used for understanding the functions that is taking place
between payroll system and the flow of control with each activities.
System flowchart for cash disbursement system

10BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
They above flowchart is being developed for the purpose of understanding the cash
flow between the cash disbursement system.
System flow chart for purchase system
The above diagram is being developed for the purpose of deter mining the activity
that is taking place between the system. This helps in understanding the proper functioning
of purchase system and the reports that are being processed within the system.
Conclusion
After reviewing the internal control weaknesses associated with each system it can
be stated that these issues are needed to be mitigated immediately so that they can work
efficiently for the purpose of meeting the organisational goal. In order to improve the
functionality of its system it is important to implement a proper information system by
removing the manual processes. The organisation should focus on developing a better
information system that will be able to overcome these internal control weaknesses. Thus
the report has outlined all the important concepts associated with the organisation. Hence it

11BELL STUDIO SYSTEM ANALYSIS AND DESIGNING
can be concluded after reviewing the risks that it becomes a essential to implement proper
methods for the purpose of enhancing the functionality.