Case A:

John has run his retail business for the past 20 year.He owns 30 retail stores located in different parts of the state. He is very conservative with his investments and does not make expenditures that do not have a clear financial payoff.He faces many problems in his business at different fronts.The profitability is declining, customers' satisfaction is at all time low levels, and managers have no clear idea of the inventory level and when to purchase more until the shelves are empty.

John needs help and has hired you as a business analyst to help investigate why profitability has declined, what causes customers' dissatisfaction and why inventory levels are not managed well.John also wants you to critically analyze the existing systems and find solutions to all his business problems.

After your initial investigation you determined that the existing Accounting Information Systems (AIS) is very old, inefficient, unreliable and the business processes and procedures are out of date.You believe that the solution to the problems is to redesign the existing system and the business processes using Business Process Management (BPM)

a.What are the challenges you might face in analyzing and redesigning the existing system? (7 Marks)

b.What are your recommendations to John?How would you convince John to accept your recommendations knowing that he is a very conservative investor? (7 Marks)