case study

So you have hung up your shingle and are working as a consultant/you have taken a job woth a consultant

Mr X has hired you to advise about problems in his small business or possibly Mr Y has hired you to advise about changing his larger business from the current software to an ERP system.

There will be a discussion about how things are done at the moment

EG = Mr Y

Currently the Sales system involves allowing credit terms to the purchaser.

A potential customer rings and is put through to the sales department, they record contact details and open an account on the computer, by filling in a New Account screen. During this process they allocate a credit limit. They then move to a screen that records the sale. The sale is matched to the credit limit they have allocated and automatically approved by the system. They ring the store room and the storeroom manager picks the item and despatches it. Once he has posted the item, the storeroom manager rings the sales person , who authorises the sale, and generates the invoice that is sent to the customer. They then wait for payment from the customer. The salespersons salary is based on sales value.

Required:

(1) Explain to Mr Y the sales operation using a context diagram, a logical flow diagram and a physical flow diagram.

( 2) explain the security risks of the current system

(3) set out how an ERP system would be expected to work. IN this explanation introduce Mr Y to the concept of security developed by COSO and its Technical operation

(4) Mr Y decides to adopt an ERP system. Explain the ways he can implement the new system.

(5) Mr Y has herd of several ways he can bbe serviced by outsiders and how he may develop his own program abilities in house. Explain each way, and the benefits and disadvantages of each.