Discuss about the Strategic Information System for AIS/ERP Systems.
A good number of companies have been rated to perform reasonably well across the globe because of the systems that they have developed when it comes to dealing with their processes. The subject systems are mainly computerized and have been able to input the concept of technology which has made it easier for better production of the companies’ output. The systems that are normally associated with better performance of the mentioned companies are those of AIS/ERP (Conference Simulation and Planning in high Atonomy Systems & Kim 2005).
AIS/ERP is an abbreviation for Accounting Information System. This is a system whose main aim is majorly on collecting or gathering, storing and processing the data of accounts that are mainly applicable in decision making procedures (Association for Information Systems 2004). The magnitude of the task done by an Accounting Information System shows that, the system is generally a computer based method that is used for tracking the activities of accounting in conjunction with the resources of information technology.
The research in context is therefore based on AIS/ERP systems that will be applied offered as an alternative to the clients in the two cases that are provided. On the same point, this research also exhausts inner definition of business process and its requirements, determination of the system requirements, software selection and finally vendor selection (Desrist 2013).
Research on how technologies could be used to improve the operations of the company above in areas of accounts and operations with regards to AIS/ERP System
Problem Statement
Due to poor performance that was noted in Disk4u Company in matter of accounting and operations, the company decided to consult on how technologies could be used to improve its areas of accounts and operations with regards to AIS/ERP system (Ferran & Salim 2008)
Research Objective
1.3.1 To determine the full meaning of AIS/ERP systems
1.3.2 To determine how the system has proved vital for the problem in context
1.3.3 To exhausts at least one type of research system that is relevant to the research
Hypothesis of the Study
The research study was mainly conducted for purposes of improving the operations of various companies and organization. This was out of the perception that a number of companies have not been performing well based on poor techniques of operations that are not aligned to technology (Harindranath 2002).
Research Literature Review
Step One Analysis
There is a presentation of two cases, one being of Sydney Based Company known as Disk4u and it majorly deals with the selling of CD’s and Vinyl records. The company is among the small family owned business that is spread out within the Metropolis of Sydney. It is noted that the current situation of their business is on offering sales to their esteemed customers on shop fronts, vial mails, phone orders and new online channels through Ebay (Grabot, Mayere & Bazet 2008).
The techniques of sale for this company is argued to have greatly improve the products and services output especially on their manual accounting as well as business reporting.
Nevertheless, the company is not comfortable with its status quo and has therefore has called on consultancy in areas of accounts and business systems. It is also captured that the main aim of the company in question is to be informed of and understand how technologies with respect to the mentioned systems could be used to improve the operations of the company (Government Commnication & Information System South Africa 2004).
The use of technology as mentioned in the introductory paragraph is a vital area that can easily accelerate a company or an organization into greater highs. The company in context can easily adopt technology especially in areas where it was seeking for consultancy services (accounting and system of operation). For years technology has been given the consideration of a formal and a wide spread remedy of success (Otto 2008). It is out of increased knowledge in technology that there has been the adoption of accounting information system (Iinternational Conference on Application of natural language to information systems 2011).
Therefore, there is likelihood that the adoption of technology by Disk4u Company can improve their areas of accounts and even scale them to greater heights. The first way on how the subject is possible, is on the adoption of a number of AIS systems that are relevant to their areas of concerns (International Conference on Research and Practical Issues of Enterprise Information Systems & Poels 2013). For example, the company in context adopting the use of computers in their operations. Computers are one of the AIS systems that have got the ability to gather financial data, process and finally accounting the data for key company stakeholders for purposes of decision making (KhoSrow-pour 2006).
Other than that, a computer also has got the ability to store the financial records and even company’s book of accounts in soft copy. This particular AIS system has got several software selections within it that allows it to be of benefit to companies and organizations. Nearly every business or organization across the globe has got accessibility to this particular AIS system due to its vitality (The journal of strategic information systems 2010).
On the other hand, the other means by which the operations of the company in context can be improved is through the application of system based records. Though a computer is also an example of a system based record, there are other system base records that can perform those functions that a computer can perform. System based records or system of records are mainly used for the purpose of generating organizational records and also the filing of the records. If the company adopts this kind of system then it will be able to keep track of its activities and at the same time will be able to make continuous assessments to its way or mode of operation.
In addition, Accounting Information system are designed in a number of ways to fit the needs of accounts and general operations of a company, some of the ways in which they designed includes; financial accounting, auditing managerial of accounts as mentioned previously and finally issues that are tax related amongst others (Llewellyn 1976). Technology with regards to AIS can greatly improve the operations of a company at a greater length as mentioned in the above paragraph.
Furthermore, it is known to everyone in the business domain that technology reduces the work load of a company and makes tasks easy to perform. It also increases efficiency and end products value. Other than that, AIS/ERP systems are usually cost effective and thus will be able to improve the operations of the subject company without consuming much money. It was mentioned in the research outline that the company is ready to apply the application of technology into its operation for the purpose of efficiency but it is also keen on ensuring that its budget does not go above an estimate of $ 150,000 (Mcllod 2000).
The irony is that, the subject system if applied especially in areas of concern as mentioned in a number of paragraphs, there is a possibility of the budget being reduced by almost half. This will mainly be pegged on the reduction on workload that would have brought a number of employees on board who in the end must be paid for their ervices (Nash & Roberts 2014). The system in context will perform the task with only the help of a few experts but the end result will be of vitality.
The AIS/ERP system has got a number of requirements or necessities that needs to be brought on board for them to operate effectively. Most of these requirements are mainly those that support their operations and allow them increase output. The major requirements are power and expertise. On matters related to power, most of the AIS system are electronically made and therefore depends on electricity for powering. On the same aspect, it also requires expertise to operate them.AIS/ ERP can only be operated by those who have the relevant knowledge on operating them because they deal with very technical issues that are vital companies. Apart from the already discussed, AIS/ERP systems also involves a number key areas, these areas are on software selection and vendor requirements. Software selection is a very critical area when it comes to the development of the system in question. This is because; its development must incorporate the overall task it is intended for. Like in the case of Disk4 Company, the main intent is for it in line with technology to help in matters of accounts and also operation management. It is therefore vital that the selection of software’s to be in line with the work intended. In this particular case, there will be a need for an AIS/ERP system that can easily deal with and handle accounting related problems and operational issues.
Research Analysis on the case study in context.
This case study about a Victoria based rice and wild rice producer known as Sungate Foods. It is noted that, the rice producer above, mills up to around 80 tons every hour especially in situations where it is in peak seasons (Strategic information systems NCC Blackwell and Remenyi 2012). In the financial year 2013, the rice producing company in context, employed a base of 100 staffs who were based mainly in three processing warehouse that is located in Western Victoria and a marketing office that is in Melbourne. Sungate is also noted to enclose tons of storage of about 125,000 square feet and 300,000 metric tons of storage. The subject Victoria rice and wild rice producer owns it own rail spur of about 250,000 square feet of blacktop and also pollutant control equipment that is used for scrubbing almost 240,000 cubic feet of air per minute.
It is mentioned in the case in context that when the season is at its peak, processing of the produce can reach up to 80 tons per hour and staff tops 200 on 24 hours a day and a seven days week shifts. The case goes further to illustrate that to illustrate that Sungate buys from about 350 farms, then makes packages, distributes and then sells to people within the local environment as well as international level (Pole, Mayer & Walters 2002). The staffs of this particular producing company are mentioned to be working weeks making a compilation both financial and reports of business mainly those that have their origin from the patchwork of ISs and other related formats.
Research on the information system that can be used by Sungate to improve its company operations especially in areas that deals with accounting and various business reports
A number of experts both in the business domain and in the field of accounting as a profession have always argued it out that information is software that is made or designed for purposes of organizing or even storing data (Remenyi 2012). An information system therefore, enables business companies to answer technical questions and solve problems to the mission of raising the standards of their companies and organizations. Since Sungate is a company that seems to be faced by a number problems and issues and it is because of this fact that it has seen need for consultancy in areas matters related to information system and technologies, there would be more than one information system researched on for purpose of improving its operation, especially on matters of accounting and business reporting.
The first system that would be used by Sungate would be that on expert system and neutral networks. This particular system is also reffered to as knowledge based system. It a computerized system that is used for data analysis and also production of recommendation, this system is thus important to Sungate because it will have a number of input that it will bring to the subject rice producing company.
The ability of a computerized information system will be on processing data, offering analysis and finally making the necessary recommendations that will spur the organization to the next level. If Sungate adopts this information system in context, if adopted by Sungate Foods which is a Victoria based rice and wild rice producer, there will be elimination of a number of problems that the company would have face should it not adopt it (Molander 2008). Some of the areas that this information system would be applicable would be on making packages of their products. In this case, Sungate may decide to connect the packaging activity with technology and this will automatically increase its overall output. Though not mentioned, the case study provided may give a brief overview of the current situation of the company. If incase the information system in question is adopted, then there will be an indirect increase in the accounts of the company. The reason that is pegged to this is on the increase output which will automatically increase the financial accounts of the company.
Another point that can also be of interest if this information system is adopted would be on data management and analysis. This can be both applicable to the areas that were mentioned in the case in discussion (accounting and business reporting). Data management is possible in accounting because just like in any field of relevance where data is involved, the same applies to accounting. The only difference is that, the data in accounting is reffered to as financial data. Once this data is managed, then, it is possible for the data to be analyzed and even used in decision making (Mcllod, 2010) Information systems).
Other than the mentioned example of information system to be adopted by Sungate Company, the other type of information system that can also be used is that of decision support system. Though it may seem as if the system in context is used for purposes of decision making, the perception is false. This particular information system influences business reporting as well as accounts at a greater extent. The influence is indirect. This is because the system is aligned with the promotion of better decision making.
Once better decisions are made, the decision made will be applied to the accounting procedures and in the end both the company’s operation and accounting procedures will be improved. Looking at Sungate Food which is a Victoria based rice and wild rice producer, there is a likelihood that should it adopt the information system in context, then its output will be of benefit to the company.
In addition to the mentioned, the system in context can also affect the overall activities of the company in question. In normal circumstances, systems that are related to matters of decision making are considered the best by key company operators. The system in context ensures that everything is put into place and the morale of even the employees is at a better stand. In the end, the financial accounts of the company will show a positive graph and matters of operation will equally be enhanced. The third information system is that of management information system. Under management information system, this is where the concern of Sungate Company on business reporting is addressed. Business reporting involves giving all the information that is related to the business. Therefore, the mentioned information system directly links or relates to with the requirement of the company in context.
Qualitative method
This research is purely based on qualitative analysis method because it seeks to make inquiry about certain facts or issues. In the research analysis above, it is evident that Disk4u Company is seeking on consultancy on key areas related to their business so as to improve its operation as well as its general accounts methods (Wisemen & Wisemen 2008).
Research on Case study 2
Just like the first case, the research method that will be applied on the second case is that of qualitative. This is because, it also seek to ascertain some vital information or facts. For the second case, the producing company in context seeks to know information that are system related, and to determine the type of system that will best suit the operations of the company. The suitability of the system will determine whether, if the system is applied or put into consideration will improve the workability of the company and in the end increasing its operations (Laudon & Laudon 2000).
On the same note to support the qualitative method, the company again is concerned with the adoption of technology that will enable it erase most of the problems that they encounter. Therefore, with the explanation given, it is clear that it is qualitative method of research that aims at achieving certain objectives especially in a business environment, just like in the case of Sungate (Pelphrey 2015). Therefore, the research method in context fits the research for the second case.
Finally, another information system that can also be used by Sungate Company is that of transaction processing. Transaction processing system is one which ensures that there are smooth transactions taking place in a business environment. In the case study, matters of transaction are not well taken care of. Transaction can occur in several ways, including in specifics mentioned in the research question (United States Information Agency 2007). That is on matters of accounts as well as matters that are related to business operations.
This information system can therefore be used or can be applied in assessing the financial transaction of Sungate. By so doing, Sungate as a company will be able to monitor most of its transactions with regards to accounts and perform favorably in the business domain. Other than the discussed perspective, it can be deduced that, since the system in question is majorly concerned with transaction, it will therefore have a direct influence on business reporting (Vickery 2013). The reporting of the business will be made easier and more productive because a number of concerns or activities have been taken into keen consideration. This method thus fits in the environment of Sungate Foods which is mainly a Victoria rice producer as well as a wild rice producer.
As a way of finalizing on the research in context, it is vital to note that all the above discussed concerns including those on information systems are technologically updated and are therefore likely to offer much output to the firm in question (Ward & Griffith 2006).
Conclusion
This research task has extensively touched on issues that are related to AIS/ERP systems for the client. It has also included the main definition of business process and a development its requirement. On the same objective, it has also determined related system requirements, software selection and finally matters of vendor selection. The research has also looked at two case studies and has extensively made a coverage on key areas pertaining technology among other key areas that are technology related as well as those that deals with information related systems. The systems have been explained extensively and how they can help improve the organizational overall output in the final end.
References
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