Pedal Madness is a bike shop in a large metropolitan area. The shop has experien

Question

Pedal Madness is a bike shop in a large metropolitan area. The shop has experienced considerable growth over the last few years. The owners are frustrated by problems with their current system to track the business. The current system was created as the business was formed and is partially automated and partially manual. There are problems tracking the accounts receivables and the company is having a hard time figuring out why the receivables are so high. Pedal Madness often runs specials on their very popular mountain bike line, but they cannot tell if these sales are actually generating a profit for them, or if the profit is coming from the sales of the accessories they sell with the bikes. The company would really like to get repeat business from existing customers, so they really need a customer database. They would also like to start selling bikes and accesories online. They want to make it possible to sell bikes and accessories online and they want to install an accounting systems that would help solve the problems outlined above. The online sales and accounting system for Pedal Madness is key the success of the company and its continued growth. The online sales portion of the system must track every sale and be linked into the existing inventory system for tracking of costs and to provide daily profit and loss reports. The customer database must be able to produce purchase histories to assist management in preparing special mailings and special sales to existing customers. Detailed credit balances and aged accounts for each customer would help to solve the problem with the high balance of accounts receivables. Special notice letters and credit history reports would help management reduce accounts receivable.

Write a eight to ten (8-10) page paper in which you:

1. Suggest at least five (5) expected business benefits that Pedal Madness might derive from a new system. Justify your answers with explanation.

2. Propose at least five (5) system capabilities for the company. Provide a rationale for your proposals.

3. Ascertain the three (3) possible scenarios in this new online sales and accounting system.

4. Using Microsoft Visio or an open source alternative such as Dia, develop process model diagrams for each scenario that you have identified. Note: The graphically depicted solution may not exceed one (1) page per diagram. Provide a narrative that gives an overview of your diagram.

5. Using Microsoft Visio or an open source alternative such as Dia, complete a fully-developed use case description for each scenario identified. Note: The graphically depicted solution may not exceed one (1) page per diagram.

6. Develop a system vision document for Pedal Madness, detailing the overall vision or plan for the new online sales and accounting system. A vision document generally contains:

a. Introduction

b. Business needs / requirements

c. Product / solution overview

d. Major features

e. Scope and limitations

f. Other needs

7.Use at least five (5) quality resources outside of the suggested resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Explanation / Answer

Cost Effective - Using computerized system is more efficient than paper-based accounting as work will be done faster resulting in quick turn-around-time for all day-to-day sales and accounting operations. A one time spend on commissioning of the new system by Pedal Madness would enable them to curb their spending’s upon stationary and manual labour

Security - The data will be saved and stored in password protected systems with well defined access hierarchy making the sensitive commercial data available to authorized access only. A periodic data backup routine will ensure sensitive information is safe from natural and man-made disasters like earthquakes, fires, floods, arson and terrorist attacks. In case of a disasters, the system can be quickly restored on other computers.

Scalability – Imperative to the growth of Pedal Madness, company grows, the amount of accounting necessary not only will increase but become more complex. With computerized accounting, everything will be straightforward considering that sifting through data using software is easier than sifting through a bunch of papers.

Accuracy - The accounting system is planned to be accurate to the minutest element. Once the data is entered into the system, all the calculations, including additions and subtractions, are done automatically by software. This enables accurate financial data reporting and thus efficient data analysis for business operation improvements.

Automated documentation – fast and accurate invoices, credit notes, purchase orders, printing statements and payroll documents are can be done with a quick turnaround time.

Answer 2: Following are the key system capabilities:

a. Single Ledger for Accounts Recievables, Account Payable and General Ledger

b Multi-dimensional reporting to enable efficient data reports providing information according to company needs

c. Facilitate Standardization of accounting routines and procedures

d. Online facility to store and process transactions and retrieve information

e. Expandability to ensure system is capable of handing increased volume with expanding customer / transaction data base

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