Computer Information System Brief

University of Phoenix
Accounting Information Systems
ACC 542

Jan 28, 2012

Computer Information System Brief
Kudler Fine Foods a premier gourmet grocery store is considering the best methods to integrate technology into its business operations. Kudler currently has three store locations in southern California and is considering adding a fourth store in Carlsbad (Kudler Fine Foods Virtual Organization, 2011). Currently the organization uses Microsoft Retail Enterprise Management System (REMS), Quick Books, and Microsoft Excel for their software needs and has a system of microcomputers and server at each store. This brief will discuss an analysis of the company’s business and accounting information needs, the strengths, weaknesses, opportunities, and threats of the current computer system and technology use.
Business and Accounting Information Uses The organization needs to record sales, transactions, human resources, and inventory data correctly and assist store managers in placing purchases order and efficiently using resources. The inventory system needs to be easily accessible and provide reports that would assist managers in minimizing inventory costs. Kudler needs to “…develop competitive strategies to counter the actions of the competitive forces they confront in the marketplace” (O’Brien & Marakas, 2008, p. 49). For future growth the business needs to explore the information system requirements to start the website for e-commerce, frequent shopper program, and catering (Kudler Fine Foods Virtual Organization, 2011). Further business needs are in sales and marketing, communications, and customer relations.
Accounting needs for Kudler Fine Foods include integrating and updating payroll and human resources functions, accounts payable, posting inventory transactions to the general ledger, security and integrity of accounting transactions, and further integration of technology to the accounting processes. Using REMS as a point-of-sale system Kudler meets their unique requirements and allows the organization “…to drive retail across channels, locally or globally, with technology and features that connect, empower, and offer the needed insight for proactive execution” (Microsoft Dynamics ERP: United States, 2012, para. 2). The current accounting system working across different software platforms entails the completion of certain accounting functions by manually re-inputting data, which is inefficient and prone to errors.
Strengths
The current system is simple and easy for the employees to implement. The hardware needed in each store consists of a series of microcomputers, one of which works as a server, which is low in cost and needs less sophisticated IT support. The system in each store is not connected to the Internet for customer interaction that minimizes the possibility of external hacking. Microsoft REMS point-of-sale software is an extremely flexible and gives employees relevant information “…to make the most of face-to-face time with customers” (Microsoft Dynamics ERP: United States, 2012, para. 4).
Weaknesses
Currently there is no way to integrate the business operations from all locations. Each location’s hardware system is set up to function as three separate networks and access to the Internet is only available through a 56k modem. Based on the Kudler network diagrams for each store there does not seem to be an integrated backup system in place or procedures in place for recurring backups or recovery in case of a system crash. Errors in the integrity of accounting and finance data and transactions are increased by the manual re-inputting of information from the point-of-sale system and excel spreadsheets into the general ledger. The organization is not currently taking advantage of all the functionality of the point-of-sale software.
Time sheets are filled out manually by employees and entered into Quick Books to complete payroll leading to poor internal controls and manipulation (Kudler Fine Foods Virtual Organization, 2011). A firewall or other system does not seem to be in place to protect proprietary information from spyware or virus attacks. Reports from each store for sales and human resources are not centrally located and therefore not easily accessible to management for effective decision-making.
Opportunities
Kudler Fine Foods has a variety of opportunities available to improve and increase their technology and software efficiencies and become a competitive organization. Microsoft REMS will allow the company to expand seamlessly into a full service website and “…offers one powerful, agile, and simple solution that connects retail enterprises from end to end, helping to drive growth and foster customer relationships” (Microsoft Dynamics ERP: United States, 2012, para. 7). The Kudler Strategic Plan is considering implementing a preferred customer rewards program and expanded catering services and using the REMS program already in use, would make implementation efficient and not as costly. The basic information and processes is already available, limiting implementation costs.
Implementing a hardware network that would connect all three locations would assist management in receiving timely information to make effective decisions. Upgrading hardware and implementing strong information technology controls and processes would improve data integrity and reporting. Once the hardware network is updated to accommodate intra-location integration and a website that offers e-commerce, Kudler should also upgrade the accounting information system to integrate all accounting functions and minimize the manual input. Upgrading to an integrated accounting information system would allow timely reporting and minimize the errors created by manually re-entering information into Excel spreadsheets or into the Quick Books program.
Threats
Changing the current accounting information system will require that employees must learn all new systems and software, which is likely to lead to resistance and further errors in the processing of transactions. Staying with the current system will not allow the company to adjust to competitors and continue the growth the company wants to achieve. The current system does not allow management to adjust easily to economic shifts in the market.
Conclusion
Kudler Fine Foods accounting information system works across separate software platforms, including Microsoft Retail Enterprise Management System (REMS), Quick Books, and Microsoft Excel and information is not centrally located, but housed among three different networks within each store. For the company to continue growing and expanding management needs to consider integrating all the accounting functions into the Microsoft Dynamic platform and auxiliary suites. Updating hardware and software systems would allow daily transactions and operations to run smoothly and be accurate and efficient. All information flowing to one location for processing would allow management to have timely and accurate reporting improving management decision-making. Another added benefit of updating the system and fully integrating REMS across all the locations would allow tighter controls over perishable inventory and allow management to make buying decisions that would bring cost savings. Connecting all the stores through one central network would add additional capability for expanding and creating additional locations across the country.

References
Kudler Fine Foods Virtual Organization. (2011). University of Phoenix rEsource, ACC 542 course material.
Microsoft Dynamics ERP: United States. (2012). http://www.microsoft.com/en-us/dynamics/erp-ax-retail.aspx.
O’Brien, J., & Marakas, G. (2008). Management information systems (8th ed.). Retrieved from eBook Collection from the University of Phoenix Library.