Objectives:
• identify and justify company-level CSFs - what are the critical success factors (CSFs) for the five major real-world subsystems (i.e., Sales, Receivables, Payments, Inventory, General Ledger) (with a brief justification for each one) that you believe the managers of each subsystem should monitor to ensure the activities undertaken within each of the subsystems are effective and efficient?
• identify figures from the MYOB exercise that will measure your specified CSFs (can ignore this);
• identify some of the information-provision weaknesses of MYOB; comment on the weaknesses of MYOB subsystems in providing the manager with the information required to operate and manage the business effectively and efficiently.
Example:
Sub-system – General Ledger
CSF – Net profit – ensuring profitability is a critical priority. The net profit is -$xxxxx identifying a net loss. Such a loss is important and concerning, however, the company generated a gross profit/revenue of $xxxxx. Understanding why the company is loss-making expenses requires investigation of why and where they occurred. One of MYOB's weaknesses related to the GL sub-system is that it provides little context to the figures, e.g., whether they are recurring or one-off such as the legal and professional fees. Further, MYOB does not readily indicate what the legal and professional fees were in relation to, e.g., a legal penalty, settlement of a claim, tax advice, etc.
