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The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

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15-04 DUE DILIGENCE HANDBOOK
Information Systems - Form 15-11
It is important to make the distinction between an information system and a data base. As used herein an infor-
mation system consists of one or more data bases. An example is a customer information system that links the
information from a number of individual data bases such as order files, warehouse shipping files and the
accounts receivable file.
Integrated Communications, Computer
And Information Systems - Form 15-12
An example of a fully integrated system is the linking of the information system described above with a com-
puter network and a cellular phone system. Such a system will permit a field salesperson to access, and update
if necessary, the information in one or more of the company data bases.
T
rend In Computer, Communications And Information System Staffing
And Expenses - Forms 15-13 And 15-14
Form 15-13 provides for summarizing the personnel levels associated with the three activities, regardless of
where they are located within the entity’s organization. Form 15-14 requests expense data in a similar format.
WHAT TO LOOK FOR
Have there been significant year-to-year variations in personnel staffing and expense levels? If
so, what have been the primary reasons for these variations?
WHAT TO LOOK FOR
What integrated systems are currently in place?
Are additional integrated systems planned for the future? If so, what are the design objectives
and what new equipment will be required?
WHAT TO LOOK FOR
What information systems are currently in place?
Are there plans for implementing new systems or extending existing systems?
In a potential merger situation:
Are the entity’s systems more or less advanced than those of the prospective buyer?
Are the entity’s systems compatible with those of the prospective buyer?
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