Strategic Information System for Commonwealth Bank of Australia

This report provides an overview of the Accounting software which is associated with execution along with the tracking and operating the various transactions of the different departments of accounting with diverse models which are very much effective. The report discusses the structure, problems, strategies, system acquisition, and competitors of Commonwealth Bank of Australia.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
[Name of the Student]
[Name of the University]
[Author note]

Table of Contents
Introduction:....................................................................................................................................3
Company Background:....................................................................................................................3
Structure of the Organization:.........................................................................................................4
Problems faced by the Organization:...............................................................................................4
Strategies by the Organization:........................................................................................................6
Method for System Acquisition:......................................................................................................7
Problems related to controlling of the system:..............................................................................10
Designing of the processes:...........................................................................................................10
CRM or Customer relationship management:...............................................................................10
Accounting software packages:.....................................................................................................11
Market Size............................................................................................................................11
Market Leaders and Competitors...........................................................................................12
Conclusion.....................................................................................................................................13

Introduction:
This report provides an overview of the Accounting software which is associated with
execution along with the tracking and operating the various transactions of the different
departments of accounting with diverse models which are very much effective. The “accounting
system software” is mainly associated with working as the information system for accounting.
This literature review is mainly associated with outlining the various discussions about the
famous bank of Australia known as the Commonwealth Bank. The review greatly helps in
understanding the structure of the organization along with understanding the various problems
faced by the organization which might include the inefficiencies or the errors. The review helps a
lot in understanding the flowchart of the sales and also the shares that the Commonwealth Bank
is having. This literature review also consist of the various leaders of the market or the size of the
market or the competitors present in the banking market.
Company Background:
The Commonwealth Bank of Australia is considered as one of the recognized bank of
Australia and has its branches in Asia, US and many other countries as well. The bank is
associated with providing a diverse services related to financing which might include the
management of funds, investments and the loan services, organizational banking, retail banking
and many more. According to ASE or the Australian Securities Exchange the Commonwealth
Bank is the best bank of the year 2015. The organization started its banking services in the year
of 1911 by the Australian Government (Commbank.com.au 2017). This bank is one of the top
four bank in Australia. The main competitors of this bank are the other three banks which are
namely the ANZ bank, Westpac and the Australian Bank or eth NAB.

Structure of the Organization:
The structure of the organization mainly consists of the management section and the
corporate section along with the managing bodies and also the employees (Macdonald, Burke
and Stewart 2017). The structure of the organization has been provided below which shows the
various managing bodies and also the top management as well as the middle management and
the lower management:
Structural Overview of the organization: Commonwealth Bank of Australia
Problems faced by the Organization:
The Commonwealth bank of Australia is considered as one of the top four banks of
Australia. But despite of being one of the major banks of Australia it has been facing a major

turmoil in their business activities and also in the market shares. In last few years the shares of
the company has fallen at a very rapid rate. The major reason which has been lying for this
degradation is the adaptation of the strategies which are wrong. Along with this various
strategies has also been adopted by the bank in order to overcome the various problems and also
for improving the shares of the bank (Vasardani et al. 2013). It has been seen that almost each
and every strategy has gone wrong and this happened due to the fact that there were constant
iterations in the trends of the market. The reason which is responsible for this type of alteration
in the structure of the organization is the competitions which are faced by the Commonwealth
bank. The bank was not capable of satisfying the need of the customers. And because of the
constant downfall of the shares the bank was not capable of providing loans to its customers and
along with this the customers also lost their interest due to the high rate of interests (Hall 2012).
This initially made the customers not being able to pay the loans easily which initially made
reduction is the rate of taking loans and opening of the new bank accounts. The figure provided
below shows the downfall in shares of the Commonwealth bank.

Fig 2: Graph showing the fall of Shares in Commonwealth Bank of Australia
The figure provided above shows the major downfall in the share of the bank. It can be
seen that the shares were almost above 76 which was very good for the bank. But after passing of
few years the degradation of the shares took place drastically and it was seen that the downfall
took place at a sharp rate. It can be clearly noticed that the shares of the bank had almost gone
down to about 75.5. For the figure it can be clearly concluded that the bank was totally
inefficient in holding the customers back. Along with this the new customers got effected as
well. And this happened due to the fact that the customers were scared about making investment
in the bank. They were also not taking any type of loans form the bank and this happened due to
the reason that the rate of interest was very much high (Soudani 2012). The customers mainly
make their investments and takes loans form those banks where the rate of interest is low and
this would also make them feel safe and their money is also secure. Another problem which was
faced by the bank was insufficient number of staffs in the different branches of the bank as
compares to the number of customers who were visiting the bank at a daily basis. The staffs and
the employees were also not having a polite behavior toward the customers as well and this made
a negative impact over the clients.
Strategies by the Organization:
For the betterment of the bank and the clients the Commonwealth bank has been following
certain strategies and mainly focuses on the four major components which has been described
below:

 Customers: This is first and the most important element of the ban. And if the customers
will stop coming to the banks then the shares of the bank would be falling at a drastic rate
which might even lead to closure of the bank as well.
 Technology: One of the major component is the technology. It is very much necessary for
the banks to change their ideologies in accordance to the modern technologies so as to
match with the technology of the rest of the world (Haux et al. 2013).
 Strength: The Common wealth bank’s major strength includes their teamwork. The staffs
and the employees have been working together in order to obtain the various goals of the
organization.
 Productivity: This can be considered as the final strategy which mainly includes the focus
on the productivity. Records are kept by the bank at a regular and annual basis about the
productivity of the bank as well as the employees.
The figure provided below shows the various percentages of the strategies adopted by the bank.
Strategies
Customer 40%
Technology 15%
Strength 15%
Productivity 30%

Figure 3: Strategies adopted by the Commonwealth Bank of Australia
Method for System Acquisition:
Commonwealth Bank of Australia is mainly associated with adopting the Enterprise
Resource Plan or the ERP as a system for Acquisition model. The organization uses the ERP as
the procedure, along with this it is also used as the manufacturer’s controls and amalgamates. All
this acts as one of the major portions of the business. The information system or the IS which is
required for the purpose of managing the ERP along with this it is also associated with
combining the major area of an organization business. This might include the “marketing”,
“sale”, “planning”, “finance”, “purchasing” and the “human resources”. Various organization
uses this method or technique for the purpose of achieving various types of goals and objectives
(Laudon and Laudon 2016). The Commonwealth Bank is associated with using the “basic
systems”, “applications”, and the “products model or the SAP model” in their business
processes. With introduction of the SAP in the business which is a very complex process and
requires a lot of training and knowledge. Along with this it would also be helping the
organization to obtain proficiency in the programs as well as the software which would be
running with the modules of the SAP. The bank was capable of achieving success because of the
advantages provided by SAP which includes the integration at an extreme rate and also the
flexibility. Sap is also cost effective so it is also considered to be advantageous (Jawabreh and
Alrabei 2012). The wrong strategies followed by them in the past days made it face the
problems. In order to make the shares steady the bank updates the SAP and also renews it. In
order to make the clients get interest on taking loans the shareholders of the bank has been trying
to reduce the rate of interests.

Figure 4: Flowchart of the Systems in Commonwealth Bank of Australia
The figure that has been provided above describe the processes of the bank and also
illustrates the procedures of the bank as well in details. This would help the bank in finding the
loopholes present in the process. This flowchart has been categorized into three basic
components this includes the review, evaluation and the responses. Feedback id included in the
review part. The review par includes the feedback about the bank from various customers. The
process of evaluation mainly includes the answers and the steps which are very much necessary
and are taken form the feedback. The third portion includes the respond and mainly compromises
of the functions and the process of the bank (Simkin, Norman and Rose 2014). When the bank

does not respond on time then necessary steps can be taken and the functions includes the e-
banking, credit card services and many more.
Problems related to controlling of the system:
The various types of problems that are being faced by the bank has been associated with
creating lot of modifications in the bank sector. The organizations growth is mainly dependent
on the “shareholders”, “clients” and the “marketing team” of the organization. The problem that
has been existing in the system of the Commonwealth have been creating a high influence over
the brand name of the organization which is not at all good.
Designing of the processes:
The importance of including various customers in the designing process has been
understood by the organization. It is essential that the customers are involved with the
Commonwealth bank this would be helping in the maintenance of the will power of the work and
also involves the employees of the organization. The process by which the services are being
provided act as one of the basic need for the particular case (Arvidsson, Holmström and Lyytinen
2014). The business process of the organization started in the year of 1911 followed by which
the organization should have focused of different marketing alterations by making use of various
innovative trends.
CRM or Customer relationship management:
This is one of the important feature of the organization especially for organizations like
bank. The business operations of the bank are centered on the customers so it is their duty to
fulfill all the needs of the custmers. CRM is the characteristic which mainly describes the
techniques and the other strategies which are used by the organization in order to maintain a

good quality relation with the customers (Galliers and Leidner 2014). The CRM of the bank was
not so efficient in order to maintain a good relation with the customers.so there is a need of
focusing on the CRM by the Bank.
Accounting software packages:
The Commonwealth bank has been going through various challenges and threats which can
be reduced only by the introduction of the accounting software in the business. The
Commonwealth bank is associated with using the B2C or business to customer software package.
The various advantages of the B2C mainly include the following:
1. Reduction of the competition gap
2. Flexibility
3. Eradication of Middlemen
4. Cost Effective
5. Training not required.

Market Size
Figure 5: Graph showing the Margin of Commonwealth Bank shares
The figure provided above shows the slight degradation that has occurred in the shares of
the market of Commonwealth Bank of Australia. At the early stage the share was around 283;
but now the shares have gone down to around 262.
Market Leaders and Competitors
The different competitors of Commonwealth Bank of Australia includes the following
(Appelbaum et al. 2017):
i) NAB Australia
ii) ANZ Australia
iii) ASB Bank

iv) Westpac New Zealand
v) Bank West
vi) St. George Bank Australia
vii) Kiwi Bank New Zealand (Coviello and Tanev 2017)
Figure 6: Core Competitors of Commonwealth Bank.
The core and main competitors of Commonwealth Bank are shown in the figure provided
above. The name of the banks listed above are the main competitors of this particular bank.
However it has been seen that the Commonwealth Bank has be associated with the gaining of the
maximum number of shares. From the chart it is seen that 20% of the total shares and clients are
taken by Commonwealth Bank. NAB Australia has taken almost 16% and whereas the ANZ has
taken almost 13%. The rest of the banks has got the remaining shares and clients (Ismail and
King 2014). The pie chart clearly shows that Commonwealth Bank is having the winning
position and is associated with getting the competitive advantage than the rest banks which
means Commonwealth bank is the market leader.

Conclusion
The above discussion helps in concluding to the fact Commonwealth Bank of Australia is
listed as one of the major leading banks of Australia and New Zealand. Despite of taking the top
position in the list the bank has been associated with facing a lot of problems in the business
processes. Due to all this problems the bank is becoming less popular amongst the customers and
the shares are also going down at a rapid rate. However, the bank is trying a lot to overcome all
the tough situations by making use of different innovative ideologies and strategies in their
business. The above literature review has been discussing about the structure, errors,
inefficiencies and the process designing of Commonwealth Bank of Australia.

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