Literature Review of Accounting Software Packages for Commonwealth Bank

Business 1
BUSINESS: LITERATURE REVIEW OF ACCOUNTING SOFTWARE PACKAGES FOR
COMMONWEALTH BANK
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Business 2
Introduction
The modern corporate world has embraced the use of strategic information systems to improve
their efficiencies and meet their business objectives. Vital information systems are business
systems which have been developed to fit specific business functions and are used by most
businesses to merge technology with the organizations or strategic business planning (Pearlson et
al. 2016, p. 28). They are therefore developed by most firms to help them in developing generic
business strategies and increase the business competitiveness in the market by giving the
company a competitive advantage. Among the many information systems designed to improve
the competitiveness of most organizations are the accounting software systems.
Competition has rapidly increased among the Australian accounting software companies in the
provision of accounting softwares for small, middle-sized as well as large corporations (Galliers
& Leidner, 2014, p. 117). This literature review will, therefore, focus on understanding the
importance of strategic information systems in business strategies. It will also focus on the
understanding of the development of accounting software’s and their effectiveness in enhancing
business efficiency and competitiveness in the market. The literature review will be focused on
the Commonwealth Bank in Australia and the impact of accounting software in their business
model.
It is essential for any business to have an understanding of its business models and accounting
systems in order before adopting the accounting systems. The development of these accounting
systems is based on the nature of business as well as the size of the organizations. The small-
scale industry has increasingly adopted the use of accounting software’s globally and therefore
increasing their competitiveness with the medium-sized companies as well as the significant

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forms or corporations (Altameem et al. 2014, p. 103). Over 70 percent of businesses in Australia
have adopted the use of accounting software in their business models with the commercial banks
or the banking industry forming the largest consumers of the software while the small-scale
business is increasingly incorporating the systems into their business models.
Companies have started investing their resources in the development of accounting systems
which meet their business needs or requirements. The primary critical players in the Australian
accounting software market include; MYOB, Intuit and Xero accounting software providers with
the most significant player in the market being Xero Accounting Software providers. These three
major players have increased competition in the Australian Accounting Software Market having
taken the into cloud accounting with the development of cloud accounting software
(Yigitbasioglu, 2015, p. 54). The cloud computing software’s have increasing being adopted in
both small and middle-sized businesses. However, identifying the best system to incorporate in
your business is very critical in determining the success of the entire organization. We focus on
the analysis of how Xero accounting systems have impacted the growth and development of the
Commonwealth Bank in Australian.
Current organizational structure of Common Wealth Bank
CommonWealth bank is a leading Australian Multinational bank with their operations and
businesses running across New Zealand and other parts such as the United States. The bank was
founded in the year 1911 and started its operations in 1912 as a government bank offering saving
and general banking services to her customers (Ferguson et al. 2013, p. 27). The bank forms one
of the Australians driving commercial organizations which has enabled the bank to boost their
customer's confidence with the bank. The bank is a leading provider of integrated financial

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services and has contributed significantly to offering retail banking services, insurance, and
investment services as well as superannuation services.
Every organization has developed its organizational structure which enables it to achieve its
objectives and deliver their services. The success of an organization and especially in
management decision making is determined by the organization structure. An organizational
structure can either be hierarchical or flat organizational structure (Ma, 2015, p. 14). The
collective wealth bank of Australia has developed within itself hierarchical organizational
structure characterized by different departments, headed by a different line of managers who
manage a specific group of people within the organization. The bank, therefore, has different
layers of management which have become a significant challenge to the organizations regarding
management decision making. The communication with the bank is slow due to the
communication structure, and this has dramatically impacted the implementation and adoption of
new technologies in the bank for an extended period (Dimitriu & Matei, 2014, p. 842).
Consultations processes within the organization have increased the time taken before making any
investment decision for the bank. The structure is subject to increased inefficiencies and financial
errors within the company through loss of information and delay in responding to customers
concerns or complaints.
Operational Problems that Commonwealth may be Facing
The bank has however encountered operational issues which most of them can be attributed to
the organizational structure. As a result, the bank has experienced systematic failures in
delivering services to their customers and also in meeting their business objectives. Some of the
reported concerns or problems with the bank system were on the selling line of insurance which