Accounting Information System - Essay Example

? Accounting Information System Various activities are performed in order to achieve Top Burger desired output. Processes are the input activities that are performed on the inputs. From the case study, the following activities are performed: Feeding sales- this is the activity that involves entering of the sales transactions in the company data in order capture the amount of sales and the details by the use of the software. The company is in the process of determining the advantages and drawbacks of automatic feeding of data by the use of the GL software. Data extraction- this is the act of mining raw data from the accounting information system in use by the company. The question is whether the data can sustain numerous needs of the company and the accuracy of the data. Data analysis- after data has been extracted from the system, the company has to enter into the analysis stage where the details of the customers are identified to determine how they could be applied to increase the sales volume of the company. Taking Orders- customers who demand the company’s products were to make order manually, either via telephone or online ordering. This means that the activity of ordering had to be undertaken by the company staff that had to capture the requirements of the customers. Processing orders- after taking the orders, the customer service personnel of top burger had to process the customer orders to ensure that the customers received exactly what they required at the nearest stores. Delivery- burger undertook the activity of delivering their goods to the customers at their doorsteps as a way of gaining competitive edge against their competitors and as a means of increasing their sales volume. Preparation of daily sales- restaurant managers were charged with the obligation of preparing daily sales summaries that were to be electronically submitted to the company administrators the next day. The activity assists in determining the level of sales of the company. System management activities- these are the activities, which involve the maintenance of the IT system to ensure it, worked effectively and smoothly. It also ensured customer integration in the transaction processing system. Promotion activities- promotion is one of the strategies that businesses use in marketing their products to the target market. To achieve this, top burger promoted amateur athletics and other community groups to win the loyalty of the community. Question 2 I think that Top Burger business strategy drives the development of its information system. Top burger has the growth strategy that entails increasing their customer base and their lines of products. Growth strategy also involves the improvement of their number of processes. This can be justified as follows: Bob is worried on whether the increasing number of orders could be sustained by the company current systems. This means that the developments in the system is compelled by the increased number of customers i.e. the high activity during peak season require enhancement of information system. The growth in the number of sales propelled the acquisition of new equipment. Bob argued that a new machine would make automatic feeding of data possible and this would increase the pace and quality of service delivery. The multiple activities also made the management review the ability of the information system to facilitate the diverse needs (Roman, 2008). The growth in the number of activities therefore called on the need to develop IT infrastructure. A look at the companies timeline also shows that it was because of the growth record that the company decided to begin making online ordering through the internet in 2003. The first prototype was also opened as the growth continued. Moreover, Bob’s worry is on the ability of the IT system in supporting the business strategy. He is concerned with the limitation of the current system to provide sufficient internal controls, improvements because of the integration and the use of software in supporting growth. It is therefore clear that the improvement in the IT system was aimed at supporting the company growth strategy and not the business strategy as a way being dependent on IT development. Question 3 The system development life cycle approach has four stages in the development of a new information system. Top Burger in their quest to have a new and effective system should follow the following steps: Planning and investigation of the system- this stage involves determining the plan on how the system van be adopted in terms of time, resources and even the personnel that would be required (Lientz & Rea, 2000). An investigation into how the new system will operate and its benefits can also be done at this stage. The second step in the life cycle approach is the analysis of the company’s current system. By analyzing the current information system, top burger will be in a position to detect the current problems, weaknesses, and challenges that characterize the current system hence justifying the change in the system (Goldschmidt, 2003). After analyzing the current system, the next stage will be the designing of the changes in the current systems. The design should reflect improvements in the weaknesses and the drawbacks of the current system (Kelly & Latamore, 2003). It should further ensure it has the ability to solve the challenges and problems faced by the company. The final stage is the implementation, follow up, and maintenance of the newly designed system. The new system is implemented to replace the current one. This implementation should be carefully done to ensure resistance to change is managed and production is not halted. After implementation, follow up is done to ensure new system functions as anticipate and ensures that deviations are corrected. Maintenance on the other hand will help in fixing breakages and shortfalls of the new system. Question 4 Phased rollout implementation system will be appropriate for Top Burger. A phased rollout is where small changes are undertaken over time rather than doing the implementation at once. It can be by module where the rollout begins with the main functions, by business unit where the rollout is done from one department/ business unit to another or phased rollout by geography where the geographical location is the premise of rolling out the implementation. The main reasons why this method is appropriate include (Romney & Steinbart, 2006): Top burger will gain the knowledge and experience at the initial implementation stage and this will assist in the successive phases. Problems faces at the initial stages will thus be averted in the successive stages. It allows time for adjustments i.e. the staff and customers get the time required in getting used to the new system. It does not require halting production as employees will learn through on job training. The method also allows users to adapt to the introduced system hence reducing resistance that is likely to arise from the changes. Moreover, the staff will have time to focus on one thing at time instead of engaging in many new processes as this could cause confusion and errors. Finally, unique implementation strategies and skills can be developed for future rollouts. Question 5 After improving their IT system, Top Burger will find some information unnecessary to record. This is because the system will be in a position to store the information or renders the use of information irrelevant or unimportant for the business. The first data that will not be important to record is the outlet where customers might collect their product. This is because the system will support integration and after ordering, a customer will be in a position of collecting the products without having repeat collections. Secondly, there will be no need to record the information on the total sales as through the use of the POS machines, the amount of total sales will be automatically generated by the machine. In addition, information on the inventory would also be generated from the sales. Stock level can be determined easily. Finally, feeding sales will be done by the system and therefore reduce the quantity of data to capture. Question 6 By upgrading their ERP various benefits will accrue to Top Burger company. First, there will record a reduction in the costs i.e. the costs of recording data, analyzing data and managing information will be significantly reduced (Lee, 2006). Secondly, an upgraded ERP will help in strategic planning since it will ensure that the information generated is properly analyzed and that the management forecasts will reflect the actual situations. This will improve management strategic planning. Moreover, through upgrading their ERP, Top Burger will realize integration of their processes and will enhance the coordination of the wide spread company activities. The customers data will be accessed irrespective of location and different outlets will communicate faster and low cost. In addition, upgrading will ensure that the company is flexible to the changing market industry and needs. Apart from that, it will enable the improve profitability of the company through the cost reduction. ERP upgrade is therefore necessary for long-term success and benefits of the business. LN/Baan is the ERP system that should be used by Top Burger. This is because it offers a broad and deep support to manufacturing that is driven by order. It also improves the productivity, efficiency, control, communication, collaboration, and increases scale of operations (Lee, 2006). These are the challenges that faces Top Burger and through its use, the growth strategy will be supported and enhanced. Furthermore, it will reduce costs and ensure all information are better managed. In summary, developing if a new system require involvement of the relevant stakeholders for the process to be smooth. Before fully settling on which kind of system to adopt, the management must assess the feasibility and impact the system will bring on the operation of the business. Top Burger in their quest to grow is in the right track by developing an upgraded system. References Goldschmidt, Y 2003, Information for management decisions; a system for economic analysis and accounting procedures,Cornell University Press: Ithaca. Kelly, DE & Latamore, B 2003, Quality and the system development life cycle, Carrollton, Chantico Pub,Tex. Lee, KS 2006, An accounting information system, Beaumont, Lamar University: Tex. Lientz, BP & Rea, KP 2000, On time technology implementation how to achieve implementation success with limited time and resources, Academic Press : San Diego. Roman, K 2008, Benefits of Implementing an ERP, retrieved from http://www.collegiateproject.com/articles/ERP%20Benefits.pdf Romney, MB & Steinbart, PJ 2006, Accounting information systems (10th ed.), Upper Saddle River, Pearson Prentice Hall: N.J. Read More