INFORMATION SYSTEMS MANAGEMENT PAPER Choose any topic related to information sys
ID: 368009 • Letter: I
Question
INFORMATION SYSTEMS MANAGEMENT PAPER
Choose any topic related to information systems and write 8 to 10 pages Project paper
Final Project Document Outline
This outline is to help you start your project. The titles are guidelines defines of what are the needs and help you organize your thought. Feel free to modify by adding and changing titles according to your project.
Executive Summary or Abstract
This section should give the reader a short synopsis of the project.
Background
The environment that this project is going to take place.
Is it a Problem or Innovation?
What is the problem for this project? Be succinct in providing the reason that this work should be done-not more than two paragraphs. Is this a solution to a problem that can be solved with technology? Or is this an innovation that can help humanity, business, or non-profit and needs at least one of the modules that we learned in this course. The solution should be an implementable solution, with the existing technology.
SWOT Analysis
SWOT analysis should be done thoroughly. SWOT analysis identifies the immediate issues with organization.
Project Goal
What is the proposed goal or solution to the problem? What do you hope to achieve with completing this project?
Solution
What is proposed should be the most profitable, cost effective and expandable solution for the problem? Justify this is the best solution by using ROI or feasibility study.
Conclusion
Accomplishments and lessons learned and there are more that should be done in the future.
Reference List
APA formatting
Explanation / Answer
We can deal with Working Capital Management -a topic related to Finance Management.
Working capital or the capital required to run the day-to-day business of an enterprise ,is the life blood of any business.
Working capital is the net of current assets and current liabilities.
Current assets are inventories, accounts and note receivables,prepaid expenses and cash and cash equivalents.
Current liabilities are accounts payables for merchandise and other sundry expenses,notes and other payables,short-term loans or sometimes bank overdrafts or hypothecation accounts.
Quantum of investment in working capital depends on various factors such as nature and volume of the business,industry standards,availability or shortage of raw materials and such other matters of specific nature.
Adequacy of working capital is to ensured for smooth functioning of the operations of the firm. It should not be too much carrying ,as this will lead to inefficiency and over-stocking of inventories or will indicate slackness in collection of accounts receivables- or may be making too many pre-paymentsNormally, receivables are given a credit of 30 days.Also, the most liquid item,cash should also be just adequate and right.
Current liabilities include accounts payables for on account purchase of merchandise inventory and other sundry utilities .Some short-term loans from banks or other private parties and some current portions of a long-term loan come under this heading.Normal credit days are 60 days or 2 months.
The Current ratio(Current assets/Current liabiities) indicates the short-term solvency or liquidity of the company-ie. the ability of the company to meet its current obligations(liabilities) at very short notice, in case of any need.A ratio of 2:1 is considered normal -ie. carrying 2 times current assets to 1 time current liabilities . More than 2 in the numerator is construed as excess investment and wastage of interest on the cash involved.Less than 1, the company may lose business for want of adequate materials and finished goods and there may be loss of sales opportunities , consequent loss of profits, affecting wealth maximisation adversely.
Similarly, more ratios of liquidity like Quick ratio(Current assets-Inventories&Prepaid expenses)/Current Liabilities and acid-test ratio (Cash & Current Receivables /Current liabiities) are various indicators of the company's ability to meet its current obligations .
The study and review of these ratios at periodic intervals helps the company to improve on its performance.
Understanding working capital cycle or the operating cycle- ie the time it takes for the cash invested to become cash again ,in the hands of the company, is an important measure to plan and arrange for adequate funds ,for the smooth conduct of the busine operations.
This cycle is split into various cycles such as follows:
No.of days of inventory=365/Inventory Turnover ratio - Indicates the average time it takes to produce and sell inventory
No.of days of Receivables=365/Receivables Turnover ratio - Indicates the average time it takes to collect receivables.
No.of days of Payables=365/Payables Turnover ratio - Indicates the average time it takes to pay suppliers.
Operating cycle=No.of days of inventory+No.of days of Receivables
Net Operating cycle or Cash Conversion cycle=No.of days of inventory+No.of days of Receivables-No.of days of Payables
The length of the company's operating and cash conversion cycle decides the liquidity of the company.The longer the cycle, the greater the company’s need for liquid funds.
And that is all about efficient working capital management- to ensure funds for settling short-term debts and obligations and also aim for optimum operational efficiency by ensuring smooth running of day-to-day affairs - which is the primary source of wealth creation to shareholders.
As you have asked for some site reference,You Can also refer the undermentioned site (the above are fully my own)
http://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/working_capital_management/working_capital_management.htm