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ELMO Software Limited: A Strategic Analysis of a Cloud-Based HR Solutions Provider

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Added on 2024/07/02

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This report provides a comprehensive analysis of ELMO Software Limited, a leading provider of cloud-based human resource solutions. It examines the company's business background, external environment, internal capabilities, and core competencies. The report also proposes a suitable information system solution to meet ELMO's needs and evaluates its potential impact. The analysis reveals ELMO's strengths, weaknesses, opportunities, and threats, providing insights into its strategic direction and future prospects.

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HI5019
Strategic Information Systems T2 2018
1

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Contents
Introduction................................................................................................................................ 3
Part 1- External analysis.............................................................................................................4
1. Business background.......................................................................................................... 4
2. What industry is it?.............................................................................................................4
3. General environment analysis............................................................................................ 4
4. The industry environment...................................................................................................4
5. Competitive environment...................................................................................................5
6. Opportunities and threats....................................................................................................7
Part 2- Internal analysis and proposal........................................................................................8
1. The firm’s resources, tangible and intangible....................................................................8
2. Capabilities identification...................................................................................................8
3. Core competency analysis..................................................................................................9
4. Propose a suitable information system solution that meets the chosen company needs....9
5. Evaluate the proposed system and provide your recommendations.................................10
Conclusion................................................................................................................................11
References................................................................................................................................ 12
2

Introduction
The following report reflects the working of ELMO software limited, where the company
provides human resource solutions to its customers. It describes the company’s dealings and
customer satisfaction. The report also contains the growth of the company from the year 2002
to 2018. The report also includes the general environment of the industry and lays emphasis
on the social, political, legal environment which the company has been facing. The report
also focuses upon the industrial environment which the company is facing. The competitive
environment of the company has also been analysed in the report which also shows various
capabilities and strategies of the company (Bloomberg, 2018). Various suggestions are also
made in order to compete with the upcoming rivals of the company. At last the opportunities
and threats of the company are deeply analyzed where the company can grow and improve
itself in the competitive environment.
3

Part 1- External analysis
1. Business background
ELMO Software Limited is a software-based company which provides cloud-based
technology and solutions all around the world. The company also deals with the human
resource technology which provides innovative payroll solutions and cloud HR. The
company provides its technology to more than 1000 organizations in the Asia Pacific region.
The company was founded by Danny Lessem in the year 2002.The company believes in
decreasing the paperwork of their clients by providing a cloud-based platform to all of its
clients. The company also ensures in protecting the data of their clients which contains very
sensitive information of the client’s employees and the data of the company. The company
got listed in the year 2017 in the Australian Stock Exchange. Due to an increase in the
customer satisfaction, the share price of the company grows to 32 percent in the year 2018
which reflects the company's performance in delivering the services to its clients. The
company specializes in managing the human resource process and payroll of the client's
organization by providing a single dashboard solution to its clients. The company offers such
facilities to its clients with no hidden cost and no software and hardware maintenance, which
helps in getting seamless experience to its clients.
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2. What industry is it?
ELMO Software Limited is an IT based company which specializes in providing cloud-
based solutions to its customers. The company specializes in providing human resource
cloud-based solutions all over the world and the company has over 1000 clients in the Asia
Pacific Region. The company focuses in providing better customer satisfaction which may
result in an increase in the customer loyalty. The company works under the IT sector which is
an Australian origin company formed in 2002 and got listed in 2017. The company has
increased its market up to 32 percent higher than the last year which has resulted increased
customer trust in the company (ELMO, 2018).
5

3. General environment analysis
Political: Political factors directly affect the growth of an industry as the government
changes as per the eligibility criteria of the country. The government of the country changes
according to the needs and demands of the people. Each government has its own political
agenda for the growth and development of the country (Rothaermel, 2015). As per the current
government of the country, there are certain rules and norms made by the government to
boost the economy of the country which focuses on increasing the growth of the company.
Legal: The government of Australia has made various laws, rules, and regulation regarding
the IT sector. Such laws are made in such a way that it protects the rights of the consumers.
The laws made by the government promotes a fair and effective competition in the industry
(Rothaermel, 2015). As the company is dealing with the secretive data of the consumers, the
government in order to protect those data has made some regulations which directly affect the
business of such industry.
Economical: The economic factors are of great importance to the company working in the
industry. The IT sector plays an important role in the GDP of Australia. The government of
Australia has made some effective steps to boost the economy of the industry by providing
the tax benefits to certain companies which boost the financial position of the company.
Hence the IT industry is growing day by day due to certain government norms and regulation
(Rothaermel, 2015).
6

4. The industry environment
The analysis of the industrial environment is developed by Michel H. Porter. The
environment of the industry depends upon the five forces which have been explained below:
Bargaining Power of the buyers: The buying power of the customers depends on the type
of clients the company is having. As the company deals in cloud-based human resource
solutions than the company will have more corporate customers. The clients of the company
have the bargaining power as they have the option to choose the different buyer who also
provides the same solutions to its customers (Sutherland, 2014).
User friendliness: The Company should provide solutions to the customers which are user-
friendly in nature. As the company provides a cloud-based solution, the solution must be
user-friendly and should be standardized. The solution provided by the company to its clients
should not only be user-friendly but also should be effective in maintaining the information
of its clients (Rothaermel, 2015).
Competitive Rivalry: The Company has a strong customer background in the Asian Pacific
region. The company is focused on providing a better customer support services to its clients
which improves the customer loyalty to the company which in the end reduces the chances of
competitive rivalry for the company (Kumar and Putnam, 2018).
Potential Entrants in the market: The entry of new entrants in the market is very high as
the rules and regulations made by the government is customer friendly and are very
competitive in nature. The new entrants have to face the competitors like ELMO Software
Limited as the new entrants do not have the same kind of brand value as ELMO Software
Limited. The new entrants should have a deep knowledge and statutory compliance for each
geography in order to compete with the company (Mathooko and Ogutu, 2015).
The threat of Substitutes: The Company deals in outsourcing payroll service to various
clients around the world. Such service can be easily replaced by the potential new entrants in
the local areas where the company is working as well as such a work has more chances of
being replaced by the outsourcing companies(Zahra, 2016).
7

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5. Competitive environment
The major capabilities of the ELMO Software Limited are to engage with 1000 clients in
the Asian Pacific Region where the company has more chances of increasing its customer
base in the region. The company can also extend its approach into the various other regions
of the world. The company also expertise in various other software-based solutions apart
from human resource solutions, solutions such as pivot remuneration solutions, survey
solutions, reward and recognition solutions etc. The company is capable to expand its region
from Australia and New Zealand as the company enough number taskforce to expand its
business all around the world.
Strategies of the Company are as follows
The company can focus its business on its core area such as the Asian Pacific region where
the company has over 1000 clients in the region. The company has the chance and the
opportunity to increase its customer base in the region by providing greater customer services
to the clients. The company can also increase its customer base in the Asian Pacific region by
providing various other offers and services to its clients in such a way which helps them in
improving the customer base to the company. The company can also expand in various other
regions rather than only focusing upon New Zealand and Australia (E. Dobbs, 2014).
Rivalry among the existing players
The IT sector is one of the most booming sectors in the world. The information technology
industry plays an important role in the economy of the country. The government of Australia
has made certain rules and regulations in such a way that it improves the competition and
customer satisfaction. The level of investment in the IT sector has been increasing day by day
which increases the chance of tuff competition in the market. The industry has been coming
up with a lot of software solutions which may prove a threat to ELMO Software Limited. It
can be concluded that there is a high degree of competition in the sector because the company
is not facing competition from the local companies but the foreign companies are also giving
a tuff competition to the company (Elmo and Stead, 2010).
8

6. Opportunities and threats
Opportunities
The major opportunity for ELMO Software Limited is that the company deals with a wide
range of software solutions and the company has specialization in cloud-based Human
resource solutions. The company has over 1000 clients in the Asia Pacific region. The ELMO
Software Limited has also received a higher and the impressive ratings from various agencies
which have resulted in a 32 percent in the shares of the company. The development of the
strong customer support and the consistent increase in the customer satisfaction is one of the
major opportunities with the ELMO Software Limited. Another opportunity for the company
is that the company can increase its clients based in Asia as the company is dealing with
various clients and is providing various cloud-based solutions in Human Resource (Katz, et.
al., 2017).
Threats
The ELMO Software Limited belongs to the sector of information technology where
majorly of the company in the industry deals with the software-based solutions. The company
may face threats from its competitors as the industry is expanding day by day in every part of
the world. The company may also face such challenges due change in the laws relating to the
information technology sector by the government of Australia. Apart from such challenges
the company has a huge threat of hacking or leakage of their client’s personal and
confidential data which the company is holding (Jantunen, et. al., 2014).
9

Part 2- Internal analysis and proposal
1. The firm’s resources, tangible and intangible
The resources of ELMO software limited has been classified as tangible and intangible
resources. Tangible resources of any company can be stated as the resources that have a
physical form or entity. Tangible resources of any organization can be further classified in the
three primary types such plant, property and its equipment (Harris, 2016). In the reference of
ELMO software, the main head office of the company is based in Australia and has expanded
its reach in offshore New Zealand. Besides this company is providing the Cloud-based HR
management solutions so they don’t have use heavy equipment, except few routers and
servers that are mainly placed in their offices. All these physical buildings, furniture,
hardware are compromised as tangible assets
While on the other hand, the intangible assets are the resources that have no physical form by
having monetary value (Harris, 2016). ELMO software has to provide software support to the
several companies and as per accounting standards, the software that has been used to deliver
services and goods can be sated as an intangible asset. Some experts will also believe
software has to be taken as a tangible asset if the worth of the software is more than $1,
00.000. So in the case of the ELMO software, its software services are also can be taken
under the tangible resources as the above-mentioned criteria.
10

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2. Capabilities identification
ELMO Software Ltd is functioning as a provider of software services. The company is
engaged in offering cloud-based talent managing software solutions in areas of onboarding,
recruitment, performance learning and reconceptualized e-learning courses. The main
capability of the company is to provide relevance customized solution to their clients by
analyzing their workforce and managing their talent via employee life cycle, more efficiently
and effectively. They are capable to develop solutions by providing fully integrated modules
to save strategic intelligence and will help to increase the organizational performance.
Besides this, the company is also providing the point system that is specifically structured to
implement a learning module. The company has capable enough to develop a reporting
module to report the payroll information of their employees. The products are unique in
nature and negligibility impossible to imitate. It because of their customer-centric approach
and capability they most fast-paced in HR & Payroll solution services Provider Company and
gets listed in ASX in 2017. They have increased their business reach in Australia,
Singapore, New Zealand (Mindtools.com, 2018).
11

3. Core competency analysis
It is important for the several organizations to focus on their core competencies and define
their strengths as they will decide to get ahead of the competition. Core competencies will
help the organization to enter into new markets and define growth possibilities. As per the
Hamel and Prahalad Model, there are four core competencies tests (Vliet, 2018)
1. Resources test: These are the sources of future development and development of skill
and technologies. ELMO Software is a progressive company is rapidly progressing in the
business space and expanding their reach in the global market. They have all the
resources to develop new skills and technologies as per the market need.
2. Capabilities test: It is defined by the possibilities of developing the core competencies.
ELMO Software has capabilities such as developing relevance product, difficulty in
imitating and also the scope of expansion in the different geographies are can be used in
developing the core competency (Vliet, 2018).
3. Competitive advantage test: This can be stated as the advantage that will help the
company to develop the competitive strength in the major market share by getting ahead
of the competition. ELMO Software has expanded its reach in Australia, Singapore, and
New Zealand
4. Strategy test: This can be varying from organization to organization. ELMO software
will provide the specifically integrated solutions to their company and also provide end to
end solution to enhance their reach.
12

4. Propose a suitable information system solution that meets the chosen company needs.
In the advent of rapidly growing competition, ELMO Software will able to apply a suitable
information system that will able to meet their requirements. As per the complexity of the
business, it has been observed that a company should implement a Management Information
System (MIS) in their business process (Hanks, 2018). It has been utilizing the data that has
been collected by the transaction processing module and will use this data to develop reports
by the process that has been used by the management of the ELMO software to take routine
business decisions in the response of the specific business problem. Some of the analysis that
this information system will develop are the summary, exception and ad-hoc business reports.
All these can be effectively done to enhance the managerial efficiency. This system will help
the management to take timely decisions and will help the managers by providing the data
and statistical projections. This system rather provide support by replacing the judgment of
the managers along with improving the quality of the managers
13

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5. Evaluate the proposed system and provide your recommendations
The competitive advantage of any specific business entity is a high degree is based upon the
effective use of information technologies and specifically information systems especially.
The main aim of an information system is to provide the correct information at the correct
time to the right type of people. ELMO Software has decided to implement the Management
information system in their company and this will tremendously help the company to increase
their reach by enhancing communication platforms and reducing the globalization and
cultural gaps (Hanks, 2018). In addition, it has also been seen because of the presence of MIS
they are making themselves available to the stakeholders across the globe. It has also
assumed that after implementation of MIS they will able to reduce their cost effectiveness
and productivity. After application of MIS develop new markets for the company by
providing avenues for bringing down linguistic barriers and will help them to cross the
borders by penetrating in the international markets.
14

Conclusion
The above report comprises the basic business structure and ELMO Software Limited. The
company deals with the solutions which are of cloud-based. The report also contains a deep
analysis of the company as well as the industry. The report also focuses on the challenges and
strategies which the company should make in order to avoid future challenges. Lastly, the
report ends with the various opportunities and threats for the company where the company
can take it as an opportunity for its own development in future.
15

References
 Bloomberg, 2018. Company Overview of Elmo Software Limited [online] Available at:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=433246295[Accessed on 1 September 2018]
 E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
 ELMO, 2018. About Us ELMO. [Online] Available at:
https://elmosoftware.com.au/about/ [Accessed on: 1 Sep. 2018].
 Elmo, D. and Stead, D., 2010. An integrated numerical modeling–discrete fracture
network approach applied to the characterization of rock mass strength of naturally
fractured pillars. Rock Mechanics and Rock Engineering, 43(1), pp.3-19.
 Hanks, 2018. Advantages & Disadvantages of Management Information Systems.
[Online] Bizfluent.com. Available at: https://bizfluent.com/about-5494879-advantages-
disadvantages-information-management-systems.html [Accessed on: 1 Sep. 2018].
 Harris, M, 2016. Is Software a Tangible or Intangible Asset?. [Online] LinkedIn.
Available at: https://www.linkedin.com/pulse/software-tangible-intangible-asset-michael-
harris [Accessed on: 1 Sep. 2018].
 Jantunen, E., Emmanouilidis, C., Arnaiz, A. and Gilabert, E., 2014. E-Maintenance:
trends, challenges, and opportunities for modern industry. IFAC Proceedings Volumes,
44(1), pp.453-458.
 Katz, E., Lazarsfeld, P.F. and Roper, E., 2017. Personal influence: The part played by
people in the flow of mass communications. California: Routledge.
 Kumar, S. and Putnam, V., 2018. Cradle to cradle: Reverse logistics strategies
andopportunities across three industry sectors. International Journal of
ProductionEconomics, 115(2), pp.305-315.
 Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and
otherfactors that influence the choice of response strategies adopted by public universities
in Kenya. International Journal of Educational Management, 29(3), pp.334-354.
 Mindtools.com, 2018. Core Competencies Analysis Building Sustainable Competitive
Advantage. [online] Available at:
https://www.mindtools.com/pages/article/newTMC_94.htm [Accessed on: 1 Sep. 2018].
 Rothaermel, F.T., 2015. Strategic management. London: McGraw-Hill Education.
16

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 Sutherland, E., 2014. Lobbying and litigation in telecommunications markets–reapplying
Porter’s five forces. info, 16(5), pp.1-18.
 Vliet, V, 2018. Core Competence Model by Gary Hamel and C. K. Prahalad | ToolsHero.
[online] ToolsHero. Available at: https://www.toolshero.com/strategy/core-competence-
model/ [Accessed on: 1 Sep. 2018].
 Zahra, S.A., 2016. Governance, ownership, and corporate entrepreneurship: The
moderating impact of industry technological opportunities. Academy of management
journal, 39(6), pp.1713-1735.
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ELMO Software Limited: A Strategic Analysis of a Cloud-Based HR Solutions Provider

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