Computer Information System Brief

Topics: Computer, Strategic management, Accounting software Pages: 6 (1231 words) Published: May 11, 2015

Computer Information System Brief
Sháron Y. Aulet
Accounting Information Systems ACC/542
April 27, 2015
Facilitator: Edgar Coronel
Computer Information System Brief
Located in San Diego, CA is an upscale specialty food store that offers fresh produce, fresh meat and seafood, wines from around the world, bakery and pastry products, cheese and dairy products, condiment, packaged foods, and numerous special gourmet items (Virtual Organizational Portal, 2007). Founded by Kathy Kudler in 1998, the store quickly grew. With locations in La Jolla, Del Mar and Encinitas, the company has shown steady growth. The management team of Kudler has expressed an interest in effectively integrating technology into its business operations. Seeking the assistance of their accounting firm, a SWOT Analysis (Strengths, Weakness, Opportunities and Threats) was conducted to evaluate Kudler’s current computer systems and use of technology. The analysis covered all hardware and software currently in use by Kudler. The provided brief outlines how Kudler computer systems can be effectively integrated to meet current business needs and improve their accounting operations. Key Business and Accounting Information Needs

Using a business plan to outline Kudler’s initial requirements, $50,000 was used to finance and install a Retail Enterprise Management System (REMS) within the company. With the help of Smith Consulting, Kudler’s business needs were analyzed in determining an appropriate REMS platform. The selected REMS platform integrated the current Point of Sale (POS) system with current accounting modules. The accounting modules consisted of the general ledger, accounts payable, bank reconciliation, security, asset management and accounting (Virtual Organizational Portal, 2007). Strengths and Weaknesses

The SWOT analysis of Kudler’s current computer system, hardware, software and use of technology revealed a number of strengths and weaknesses. Kudler currently operates its entire operations through a T3 ultra high speed connection. The T3 consists of twenty-eight T1 lines and is equal to approximately 672 regular voice-grade telephone lines. Generally found among larger corporation, the T3 ultrahigh speed connection is capable of transmitting extremely large amounts of data over a busy network. Average costs for maintaining a T3 line is anywhere between $1K -$5K a month (ITQUOTES, 2012). While other Internet options exists, a cost comparison of internet service providers (ISP’s) would be useful to the company in understanding who can offer the most optimal service at the best price. High speed internet is needed so that Kudler’s employees can conduct research and remain in touch current trends occurring within their specific market. Having access to competitor’s information provides insight for making strategic decisions within the company in order to remain relevant and competitive. Things to be taken into consideration when selecting an ISP is bandwidth consistency, latency issues, packet loss and jitter guarantees. The company needs to remain on the cutting edge of technology to ensure that it is always up-to-date with its information and its ability to quickly market its products. Another option available to Kudler is the feasibility of cloud computing to store, manage, and process their data rather than a local server or a personal computer. Cloud computing provides the same capabilities as T3 but at a fraction of the cost. Kudler’s current POS system currently captures and reports all sales transactions in detail. Sales information is transmitted into the general ledger and automatically records all debits and credits. The POS system also calculates the cost of goods sold, first in first out (FIFO) inventory levels, and net profits. The POS system sends automatic transmissions to the financial institution on credit sales. The system also adjusts inventory on hand and records discounts with each...

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Virtual Organizational Portal. (2015). Kudler Fine Foods. Retrieved on 23 April 2015, from
ITQUOTES (2012). DS3 Pricing – T3 Internet Bandwidth Costs. Retrieved on 23 April 2015
Investopedia (2015). Material Weakness defined. Retrieved on 23 April 2015 from
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