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Marilyn Edwards is the CEO of a mid-sized proprietary limited company. This company operates its business both online and at physical outlets. The business has been enjoying consecutive growth both in sales and profit for the last seven years. However, compared to the growth of sales net, operating profit growth seems lower. Marilyn appointed an analyst to explore the reasons for this inconsistency. The analyst came up with many interesting findings including:

• the business has been suffering from chronic physical inventory theft which has not been properly recorded and reported in a timely manner,
• preparation of management reports is taking a longer time,
• response time to customers queries is too high,
• information systems have been facing tremendous security threat, etc.

In addition, the present accounting systems are both inefficient and expensive. Due to these reasons, operating costs of the business are too high. This has contributed to making the difference between the growth of sales and net operating profit. The analyst has suggested redesigning the whole accounting process with a contemporary integrated accounting solution for the business.

Marilyn Edwards has taken the issue to the board and has decided to appoint you to implement an efficient automated accounting information systems. As you have technical knowledge, you need to give a detailed plan about the new efficient information system including its possible cost and benefits. In addition, if the project plan is approved you need to implement this information system as project in-charge for the business.

Assessment Tasks:

Answer all questions below:

1. Discuss the potential advantages, both tangible and intangible, the business can enjoy from implementing this system. Also give an analysis on the potential costs to implement the systems. How will you measure those relevant costs and benefits? (10 marks)

2. In doing a preliminary survey for the proposed automation of a new system you reached the tentative conclusion that some of the popular accounts and finance people with more than ten years of company service, will be displaced and perhaps asked to consider early retirement. Discuss how this scenario relates to the concept of operational feasibility. Discuss the potential impact on the success of the new system. (7 marks)

3. In implementing the automation systems, you are thinking to establish an in-house data centre. You need to submit a proposal comparing and contrasting the efficiency and effectiveness of an in-house data centre with an arrangement with an outsourcing vendor to own and operate a data centre for you, a service bureau, an applications service provider (ASP), Business Process Outsourcing (BPO), and software as a service (SaaS). (10 marks)

4. Upon completion of the system, how might you be involved in system testing? In answering this part, you assume that you are the manager of an accounts receivable department. Discuss in detail. (10 marks)

5. What mechanism do you want from the system developer so that efficient internal control is ensured? Also give your suggestions to ensure the cyber security of the business transaction. (10 marks)

What implementation strategy should the company adopt to bring new information systems in practice? Explain with potential risk and benefits.

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