With the advent of 21st century, plentiful companies are attempting aggressively to accomplish better competitiveness when considered for comparing with its competitors through provisioning of product innovative ideas, needy improvements, market segregation, and reduction in pricing strategy alongside other concerning aspects. In recent times, new implements are being integrated by the retail Companies for being assisted in the process of coalescing as well as managing various business proceedings bearing in mind as a whole and under no circumstances separately. Succinctly, it lends a hand to retail companies for appropriate allocation, storage, processing of data and finally moving the data they receive and develop within their business network. While flourishing in competitive retail business environment, strategizing information system is an indispensable feature, by virtue of which a tactical data management accompanied by a more valuable data analysis and its representation can be presented by the retail Companies to its prospective stakeholders.
While staying competitive in the 21st century retail market the essentiality of a well thought-out information system has become inevitable. A strategic information system helps retail organisations in responding towards business flaws and engaging in new strategic initiatives (Mettler and Winter, 2016). While pursuing business in retailing business environment enforcement of strategic information systems ensure elevated improvement in attainment of competition edge. The business processes is effectively performed in terms of delivering appropriate services or products that are significantly at lesser price range with product differentiation as well as engaging primary focus on modernization or expectations of the market. In such a diverse scenario, the business proposition of Rainbow Illusion, which is a retail chain based in New South Wales and Victoria that proficiently sells ready-to-wear clothing for juvenile females has been measured. Through this report, the strong aspects of Rainbow Illusion’s systems for controlling sales transactions has been vividly reflected, which is followed by identification of concerning issues that can be avoided with the integration of Company’s strengths. Furthermore, this report will acutely assess situational pressures that increase probability of fraud cases. Finally, the rationales behind equipment of distributed computer systems instead of centralised systems have been described.
Strategic Information Systems are the hardware and software tools, which help retailers to achieve success while thriving in a dynamic business environment. They provide numerous functionalities, which includes business planning followed by inventory control, budgets management, attainment of sales goals, point of sale transactions and finally logistics. While discussing the strengths of Rainbow Illusion, first comes the Inventory management software (IMS), which is system software engaged to track proficiently the inventory levels, sales, orders and its deliveries (Sun et al., 2017). It can also be enforced in the manufacturing of clothing for creation of orderly work, billing of raw materials and other relevant production documents. Rainbow Illusion is at present using inventory management software for acutely avoiding product outages as well as overstock. This exact tool organizes inventory information, which was previously stored in the form of hard copies or in spreadsheets (Pearlson et al., 2016). One of the most significant aspect of installing IMS favouring Rainbow Illusion is Asset Tracking that is whenever a product is in the warehouse or store can easily be tracked through its barcode or other related tracking criteria, such as lot number, revision number or serial number.
The next strengthening aspect that Rainbow Illusion is enjoying at this moment is their inclusion of Customer relationship management (CRM) software, which effectively looks into the data in relevance to the present as well as future customers (Appelbaum et al., 2017). This is helping the Company in appropriate understanding of their customer in a better way with the intense hope of retaining as well as building sturdy customer relationships.
While talking about other strengths of Rainbow Illusion, an accounting information system (AIS) is something that helps in collection, storage and finally processing of financial as well as accounting data. This information holds much significance as these are effectively used by Company’s decision makers. In general, an accounting information system is a computer-based technology that efficiently tracks business activities in relevance to accounting in juxtaposition with resources of information technology (Rajnoha et al., 2016).
Within the retail business proceedings of Rainbow Illusion, data execution can be strategically accomplished through ensuring effectiveness of its user end that can be processed further for the creation of multipurpose data such as business reports, which are enforced extensively by different retail managers. Such kind of intentional business software inclusion is defined as operation support systems, which is considered as add-on potency to Rainbow Illusion. The most concerning intention of such information system implementation by the Company, is to keep a test out on its every operations in terms of its chain supply, transactional events, management and control (Sedera et al., 2016). These are also assistive to the Company with the facilitation of external as well as internal talking and in due course of action convey up to date the most important distributed database of this retail Company. At all the outlets of Rainbow Illusion, the operational support system has been further categorised into three key sub systems for easing the business operations and increasing retail efficiency, which are Enterprise Collaboration System (ECS), Process Control System (PCS) and finally Transaction Processing System (TPS).
In recent times, Rainbow Illusion has installed inventory management software, which is efficiently utilizing radio-frequency identification (RFID), barcode and wireless tracking technology in its wide range of outlets. Incorporation of RFID has been beneficial for Rainbow Illusion in retailing apparels with an outcome of improved accuracy from a mere 60 to above 90%. This is because the employees have been opportune in monitoring the stock in the outlets more efficiently and quite often (Aydin et al., 2018). This has eased the working process of employees in store as they are now capable of verifying the inventory levels while customers are standing right there upfront. The consequential financial reports generated from the Information Systems is used internally by Rainbow Illusion’s management or even externally by other interested venture parties of the Company that includes creditors, tax authorities and investors from being confronted with breach in profitability. Accounting information systems has been designed for supporting all accounting activities and functionalities for avoidance of losing sales information through rigorous auditing followed by financial accounting and reporting, managerial or management accounting and finally taxation (Nevo et al., 2016). The most extensively adopted accounting information systems by Rainbow Illusion are in terms of financial and auditing reporting modules.
CRM helps in circumvention of various issues within the retail business processes of Rainbow Illusion. The CRM system accurately captures various types of details that help store managers and in turn the retail Companies like Rainbow Illusion with the help of understanding the customers closely. The contact details regarding the customer followed by their personal profile and purchasing history gets stored within the Company database and thereby bypasses online censorship (Mou et al., 2016). According to purchasing history, the brand can offer their prospective customers similar types of products through extending their operations in customer communication. Furthermore, through this system the Company representatives speak to customers and acquire relevant feedbacks through filling survey forms. This software helps in understanding customer preferences accurately in a much better and confide way.
The deliberate inclusion of information systems has been promisingly beneficial to the Company to lock prospective customers as well as suppliers. The Company has also been successful with such indispensable approaches for enjoying the beneficial aspects of acquiring competitive edge through development of their consumers’ base and restricting deviation of financially and professionally healthy clothing suppliers (Luca, 2017). At its every store, Rainbow Illusion has introduced information systems strategically, which has convincingly provided enormous benefits to high profiled customers and suppliers for addressing the issues of new entrants in the marketplaces. In due process, it becomes quite harder for the cashier or the salespersons at the Rainbow Illusion stores to switch over easily to some another competitors in the market so that they carry on with provisioning of their best possible services. For minimising the threat of new entrants and market competition, Rainbow Illusion considers its database as a functional resource for rectifying their business propositions accordingly.
Furthermore, for minimising the issues of high pricing strategy, it helps in callous of the product prices. This eventually assist Rainbow Illusion to lower their price estimations and by this means allow store managers as well as sales persons in every outlets to deliver products as well as services at a considerably slighter price rather while compared to its competitors in the market. Therefore, these strategic incorporations have been valuable to provide promising growth essence as well as spreading out of the firm in new marketplaces. Moreover, it influences technology to be coupled with the Company’s value chain. By advancing in this way, the Rainbow Illusion can proficiently segregate their exacting retail activities within their business progressions, where strategic inclusions accompanied by intensified aggression in formulation of marketing planning can be competently infused, whereby the strategic information systems has been expected to be more efficient.
The opportunity of committing a fraudulent activity is the in-store circumstances, which knowingly or unknowingly allow fraud cases to take place and is the only concerning stipulation over which the Rainbow Illusion have to have their absolute control (Schuchter and Levi, 2016). For instance, an employee who has been assigned to work in a position that provides him or her capability of adding vendors as well as writing checks realized that he or she has the keen opportunity of writing few checks to some ghost vendor. Opportunities for the occurrence of fraudulent cases are most commonly present within organizations, which are having poor controls in internal accessories as it is invariably made easier for either the employee or even customers to commence any fraud case due to the provision of a low-risk environment to be caught (anderscpa.com, 2019). However, Rainbow Illusion having ample of internal controls are considered as still susceptible to fraudulent cases in case controls over the security systems are anyhow overridden by the management. In case, the internal control system has been designed in such a way that the possibility of being caught has been excessively high, the employees will probably not take advantage of some perceived opportunity for their personal gain. Without chance, fraud normally cannot transpire.
Rationalization of committing fraud cases are the thorniest circumstances to detect as it occurs on only the minds of perpetrators. Rationalization has to be done with justification of the fraud. As numerous fraudsters inspect themselves as very honest or ordinary person and not behaving as criminals, they are necessary to come up with some sort of reasoning during the making of the act of committing any fraud case more suitable to them (anderscpa.com, 2019). Some fraudulent persons proficiently rationalize their normal behaviours by reframing the characterization of doing wrong for exclusion of their activities. The most common types of fraudulent activities that occur within the retail stores have been jarred down below:
All these three conditions in terms of pressure followed by opportunity as well as rationalization are necessary to be present in considerable degrees with the purpose of fraud to happen within the store premises. A financially impecunious worker is never going to perpetrate a fraudulent activity anyhow if the chances are never availed, or in case the peril of being jammed has been made very high (Tunley et al., 2018). In a similar fashion, an individual who perceives an occasion of misrepresenting financial statements and having the enticement to committing fraud is improbable of doing so provided he or she can never downsize the fraud. It is worth mentioning, that the more anxiety an individual feels of committing a fraudulent activity, the easier they can explain it (anderscpa.com, 2019). Being conscious of these three commanding situations can help store managers at all the outlets of Rainbow Illusion to minimize the menace of fraud within their organization.
There are an assortment of reason behind the setting up of distributed systems in all the stores of Rainbow Illusion, as it becomes easier for the store managers in modifying and afterwards upgrading without allotment of erstwhile parts of business processes, easy to put into operation for spreading out and retrofits, speediness and much more (Martínez et al., 2017). The restrictions that are coupled with centralised systems have promisingly driven Rainbow Illusion to opt for distributed systems. The centralised systems within the organisation could never be scaled up following vertical direction subsequent to a definite limit. After a substantial limit, even in case the Company is making attempts of increasing the hardware or software competencies of their server node, its presentation will never intensify substantially, which will in turn lead to cost to benefit ratio becoming lower than unity. In addition, bottlenecks propel while the traffic spikes as the server can be only possessed with a pre-programmed amount of open ports based on which it can snoop to connections established from client’s nodes (Brandao et al., 2016). Therefore, in case of Rainbow Illusion while high traffic occurs like a shopping sale, the server with all its intentions as well as resources experience from the adverse effects of Denial-of-Service attack or Distributed Denial-of-Service attack. It will positively be a deliberate decision for Rainbow Illusion for incorporation of decentralised system within all its business premises.
The advantageous aspects that are associated with Distributed Systems has convincible opportune the Company towards strategizing such form of computational networks due to its low latency with compared with centralised systems. Distributed systems offer low latency due to its high geographical stretch, which ultimately leads to a lesser amount of time for receiving a response. Considering distributed systems, strategizing of cluster computing technique opportune computer systems to be coupled to work so that every system acquires the opportunity of attaining global goals for the organisation (Moroni et al., 2016). In addition, distributed systems put forward a grid computing facility whereby all the organisational resources are pooled together to share such category of computing. This actually turns computer devises within stores into some essentially potent super computers. The structural representation of distributed systems is an excess of advantage while used extensively within the retail business processes of the Rainbow Illusion.
From the above analysis and discussion, it can be concluded that numerous stances are there for the retail organisation to incorporate strategic information systems, which in turn have invariably been helpful to them in various ways. All these strategies help in sustaining as well as creation of its valuable resources while pursuance of retail business in competitive marketplaces over the past few decades. Strategic Information System owed a number of effective beneficial aspects, which cleanly persisted ion provision of continued subsistence of retail organizations that proficiently used those systems. Information systems endowed within the organisations’ tactical tools to actuate their business proceedings and in this manner maximise the performance meter of retail enterprises monetarily. Despite the fact that they are sustaining with commanding market fluctuations, connection in between intentionally planned management as well as information system is of note essential.
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