Budget Control Methods - Essay Example

? Implementation of Information System Number: Due: Introduction often have the mandate to select software within their budget and this is a requirement from the developers. Therefore the decision for Worplestrop to conduct a cost analysis for its software development is vital. This decision is important to Worplestrop so that it is able to do away with software providers that are more costly or risky in relation to the business needs. The intention of the software to be given a cost estimate for the provision of their service is to eliminate such solution providers that do not meet the preliminary cost criteria (Blaike 2008). Having a reliable cost estimate in place for the Worplestrop company would be important for the management to make decisions concerning the use of the company cash and ensuring that the software development and of cost data in information systems is implemented as planned. Therefore this kind of preliminary cost analysis is important in areas where there are scarce funds. Having a rough estimate on the cost of a project is important factor in ensuring the success of the project. Preparing a budget estimate at the early stages of the cost accounting software implementation brings together the previous cost data and the skills of estimation coupled with relevant project experience (Fonnow 2006). Budget Control Methods and System Cost Cost estimation on project implementation is never an exact science. Therefore, Worplestrop’s management need to put their effort towards affordable cost estimates projects that lie within the company budget. In order for the company to work within their budget calls for the use of consistent and comprehensive methodology (Gilbert 2011). However, even with the use of such methodology more concern should be given to the project to ensure the quality of the cost estimate. This cost estimate was therefore prepared through a thorough research and comparison with similar projects in other companies that have been done before and needed my professional judgment in its quality. This report further takes into account the coordination that is between the information systems planning cost estimates, the systems design cost estimate and the universal specifications that shall be used in the real construction of this information system. The estimate of this information system is being valued at $ 0.5 million plus the of implementation and training. The cocomo mode of software pricing is recommendable in finding the real cost of such a software implementation. Other Available Systems The use of the information management system would provide an added advantage to Worplestrop Company over her competitors. However, the partners need to be aware that there are other systems in the market that can be used in place of the Costing information system if the providers do not accept to deliver the software within the company budget. This company is structured along the functional lines and therefore any system that is put in place must be able to support the company goals. Other systems are identified in the following section: Financial Management Information Systems This system can be used in the organization by the financial managers and gives an analysis of the past and the present financial activities of the company. Moreover, the future financial obligations of the organization are given by this software and has control over the use of the organization funds over time. Manufacturing Management Information System Presently the operations of any business has been affected by the changes in technology and therefore Worplestrop is no exception. The manufacturing operations in any company ought to change due to this dynamic factor. Inventories are provided to avoid use of large sums of money for warehousing in big inventories. Thus this kind of system would be important in managing in such scenarios. With this system there is no need for warehousing. Marketing Management Information Systems This systems would be vital to the Worplestrop company since it will allow the management to track the product development activities, their distribution, the decisions concerning product prices, the promotional effectiveness, and sales forecasting. However, this systems depends upon external data sources such as customers and the level of competition. Human Resource Management System This system is used in the activities related to the workers, managers, and other organizational employees. The human resource management is vital to the success of any business since most personnel are related to the areas of business. This system can perform tasks related to human resource management such as: work-force analysis and planning, hiring, training, and job assignments. Recommendations Worplestrop Company is customer oriented and her functions revolve around the success of the human resource department. The human resource department is therefore the heart of any organization and therefore having the partners investing in proper management of this organization through the use of the human resource management system would prove a success towards the attainment of the company goals. Support of Management Decisions The emergence of the global economy, changes in the world economies and the changes in the business sector have made the adoption of the any information system important in today’s business. Most businesses are not able to achieve her strategic goals without the sue of the information systems (Blaike 2008). The Worplestrop company has adopted the use of this system because of the following reasons: Increase the Organizational Operations Worplestrop’s aim of having a new system in place is to make her operations more efficient so as to make profits for the company. Therefore the information systems are vital to the management for achieving this objective for the Worplestrop company. For example such a system shall link all the suppliers of the company to their stores that shall enable Worplestrop management to know when to have a replacement for the item once it has been purchased from the shelf. Opportunity for creating new products, Services and new models for the Company Implementing an information system by the Worplestrop shall be an important tool in the creation of brand products and offer efficient services and come up with new business models for the company. The information system shall be a guide on how the company shall produce, deliver services to the customers and the sale of the products. Increase of Supplier/ Customer Morale By implementing this system would be an implication that Worplestrop will be serving her customers well through increased service delivery. Therefore the customers shall respond to this by increasing their purchase power and hence making the company have more profits in the long run. Nevertheless, the new system means that Worplestrop shall be more connected with its suppliers and the suppliers would respond by offering better inputs for the organization. Thus customer and supplier intimacy is realized. Improved Decision Making for the Management Lack of the necessary information by the management at the right time hampers the decisions by the Worplestrop organization. This delayed information has increased the product costs in Worplestrop company and this has driven away customers for the past years. Having this system in place shall enable Worplestrop to have real time information from the market and hence hastening in decision making for the organization and retention customers who have been moving away due to slow decision making. Competitive Advantage This system shall make the company achieve the above discussed input objectives and this would make Worplestrop achieve a competitive advantage over her competitors. Having to do real time business calls for less charges for superior products and hence high profits. Sample Reports Operational level In a recent report by the Worplestrop organization there have been long processes involved in the purchase of an item. The management has to take a couple of days before completing a request for the purchase of a good and this has in the past hungered customers. Tactical level Worplestrop has in the past not been receiving information required for decision making, it has received late information such as when an item has been bought it takes time to update the inventory that they are finished. Strategic level Worplestrop has not been able to be at par with her competitors and this has hampered strategic decisions because the organization is not working in line with the dynamic technology. Conclusion The rate of increase in customer loss in this organization due to slow decision making must facilitate a faster implementation of an information system. This would assist to bring the business at the same level with our competitors and at the long run take advantage over them. References Blaike, N 2008. Budget Control Methods. Online Journal, Oxford: Oxford University Press Fonnow M, 2006. Implementation of Systems within Budget. Buckhingham: Open University Press Gilbert N, 2011. Levels of Management Decision Making. 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