Running head: COMPUTER INFORMATION SYSTEM

Computer Information System Kerry Seeley ACC542 January 9, 2012 Jana L. Highwart, MBA

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Computer Information System Kudler Fine Foods is a specialty food store in the San Diego area (Apollo Group, Inc., 2010). Kathy Kudler opens three stores, first store is La Jolla, second store is Del Mar, and the third store is Encinitas. According to Apollo Group, Inc., (2010), Kudler Fine Foods has an assortment of local and international food and beverages including items such as seafood, produce, condiments, meat, dairy products, bakery, packaged foods, wine, and cheese. Kudler Fine Foods hires Seeleys Firm to evaluate Kudlers accounting and information technology systems. Seeleys Firm will report Kudlers business and accounting needs, current hardware and software, strengths and weaknesses of current computer system, investigate prospects to improve the technology use, assess risks concerning the current computer system, and recommendations to improve Kudlers ability to manage business. Business and Accounting Needs Concerning Kudlers over-all business and accounting needs, the general needs are human resources, maintenance, sales, information technology marketing, consumer relations, communications, and advertising. Kudlers accounting needs is inventory, purchasing, security, payroll, general ledger, bank reconciliations, accounts payable, point of service transactions, capital assets, and accounts receivable. It is essential that Kudler Fine Foods needs are met in a cost effective way to remain to offer the best in specialty foods to Kudlers current and future consumer base. Seeleys Firm needs to investigate the current computer system that Kudler is using to meet the current and future consumer satisfaction that Kudler wants. Current Hardware and Software Kudler currently uses a modular and scalable retail management system (RMS) as their information method to handle business and accounting needs (Apollo Group, Inc., 2010). Smith

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Consulting installs the system in all three locations and supports the RMS on a yearly basis. Every store has its own network of four point of service (POS) for employees to finish consumers transactions. An Ethernet network with a 56K modem connects the three stores computers, which their power supply is a standalone uninterruptible power supply. Kudler has one Novell server for each stores POS system (Apollo Group, Inc., 2010). La Jolla and Del Mar stores connect two other computers to the network, which allows one computer to connect a printer and external CD burner and the other computer has a built in modem and CDROM reader. Strengths and Weaknesses of Current System Kudlers current RMS strengths are it is a scalable system with an assortment of components existing, which are currently in place. According to Merriam-Webster Dictionary (2012), the term scalable means, capable of being easily expanded or upgraded on demand. This allows Kudler to meet the needs of their growing and developing business. Currently when a consumers transaction occurs, the POS automatically posts the details of the transaction to the general ledger, to the electronic payment center, and the purchasing function. The detail of the transaction is crucial to the system because this calculates the cost of goods sold and the inventory total. The current system organizes day-to-day reports from the POS transactions for the locations as well as the business. The transaction documents that transfers to the electronic payment center initiates the automatic transmission of the credit card transaction to the applicable financial organization. The purchasing task collects the documents from the POS system to arrange invoices for retail. Last, the standalone uninterruptible power supply is essential because of the threat of power failure.

COMPUTER INFORMATION SYSTEM One weakness for Kudlers current RMS is the few requirements regarding the manual data record to the general ledger segment. Another weakness is Kudler Fine Foods has no purchasing department. Each store is accountable for purchasing items for their store. Kudler

Fine Foods encourages the stores to converse with each other to establish if by purchasing larger quantities together is cost benefit. Also cash purchases from local agriculturalists can cause problems with accounts payable segment of the RMS. The asset management and accounting segments have not been obtained. This segment will help Kudler improve and manage their assets and accounting needs. Kudler Fine Foods has problems predicting sales. There is no technique in place to help manage what and how much of an item each store should have in stock. Kudler Fine Foods has no official policy regarding security matters and audits, even though the RMS has safety procedures regarding user ids, passwords, limited access, and dollar amounts. Opportunities and Recommendations One area the current RMS does not meet the needs for Kudler Fine Foods is the purchasing and forecasting task, which needs improvements. Kudler Fine Foods needs a better way to connect concerning purchasing and forecasting throughout the company. The current system is scalable, so it is essential to see what possibilities are obtainable from the current provider for upgrades better to meet Kudler Fine needs. The possibility of other systems that easily integrate with the current RMS may be possible. If not, there is definitely other software and systems options for Kudler to purchase that meet their business and accounting needs. Kudler Fine Foods want to increase consumer faithfulness and productivity. A customer relationship management (CRM) software bundle will give Kudler an advantage to achieving that purpose. CRM uses information technology to generate a cross-functional initiative that

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integrates and automates numerous consumer serving procedures in marketing, customer service, and sales that network with a companys consumers (O'Brien & Marakas, 2008). According to OBrien and Marakas (2008), some features of CRM are retention and loyalty programs, contact and account management, marketing, sales, and customer service and support. Threats and Recommendations Kudler Fine Foods has a threat of losing their competitive advantage if they do not upgrade their current website to offer a better selection of service online. In order for Kudler to continue to grow and accomplish the level of success, they want, it is essential to keep up with the demanding changes that the Internet makes to the business environment. Security is essential when conducting business over the Internet. The current RMS has security features in place, but there is no company policy regarding the finance and accounting system, which is a major concern. Kudler Fine Foods must have a complete policy concerning security to guarantee the company and consumers personal information is safe. Conclusion Kudler Fine Foods should contact Smith Consulting to request information on the upgrade and integration capabilities of the current RMS. The easiest way to meet the purchasing, inventory, and other accounting needs as well as integrate a companionable CRM software package to the current system. Kudler being able to integrate companionable CRM software to the current system provides a better way to assist their consumers. The event the current RMS is not upgradable to meet the needs of Kudler Fine Foods will be essential to investigate other RMS and CRM hardware and software options that work together to accomplish the goals of Kudler.

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References Apollo Group, Inc. (2010). Kudler Fine Foods Intranet. Retrieved from http://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/index.htm Merriam-Webster Dictionary. (2012). Merriam-Webster. Retrieved from http://www.merriamwebster.com/dictionary/scalable O'Brien, J., & Marakas, G. (2008). Management information systems (8th ed.). New York, NY: The McGraw-Hill Companies.