Information system2 Contents Introduction......................................................................................................................................3 Part I.................................................................................................................................................4 Current organizational structure...................................................................................................4 Operational Problems...................................................................................................................5 System Acquisition Method.........................................................................................................5 System Flowchart.........................................................................................................................6 Control problems..........................................................................................................................7 Part II...............................................................................................................................................9 Development and adoption of the accounting software package.................................................9 Present Market Sizes....................................................................................................................9 Leaders in the market and what gives them the competitive advantage......................................9 Current gaps or challenges encountered by users......................................................................11 Recommendations......................................................................................................................11 Conclusion.....................................................................................................................................12 References......................................................................................................................................13
Information system3 Introduction Technology in the business has been changing rapidly, it is vital for the organizations to make changes not only in the relation of technology but also in the organizational structures. The companies are facing numerous issues or errors while operating its systems which can be reduced with the help of effective strategic information system. This system is able to provide several benefits to the company such as cost benefit, effective control over the system and increase the efficiency. Commonwealth Bank will be taken to describe the organizational structure and discussion will be made on its operational issues and ERP System. This paper emphasizes the operational issues which are in the organization due to its structure. The system flowchart of the sales procedure will be demonstrated along with the control problems and concerns. At last, the leaders will be identified in the market and the gaps will be analyzed which rise due to ineffective accounting software.
Information system4 Part I Current organizational structure The Commonwealth Bank of Australia is multinational bank which provides numerous financial services to its customers involving funds management, insurance, superannuation, investment, business and institutional banking and broking services. The present organizational structure of the bank is effective as it adopts hierarchal organization structure. The number of employees in this organization is approx 52,000 who serve better finance services to customers (Atlassion, 2018). Board of commission is liable to manage the entire organization where president Director of this company is Lauren Sulistiawadi handles various department of the bank. The main beneficiary factor of this organizational structure is that it divided into various departments such as retail banking, SME banking, Risk Operation, Operations &IT, compliance, legal & corporate security and finance and treasury. All departments have own director and sub department which facilitates organization to go ahead without any communication gap.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Information system5 Operational Problems There are number of operational issues presented in the organizational structure of the company. These kinds of issues can reduce the efficiency of the firm which may impact the organization in adverse way. According to theDwivedi, et. al., (2015),complex organizational structure of the bank can bring the inefficiency. It is required for the organization to make changes in the structure time to time so that the operational issues can be addressed in sophisticated manner. The direct consequences of an operational issue avoiding bank from submitting payments are those that can be quickly traced to the bank with the issues regarding operation, and that could also to a definite amount be calculated by exploring the flow of payments to and from the bank. There are various operational issues which The Commonwealth Bank could experience because of this structure. The regulatory pressures could be increased due to this organizational structure as it has been found in the research from the Federal Reserve over the last years that over burden of regulations can decrease the productivity of the bank. On the other hand new regulations might slow down the lending ability in the community and enhance the costs of that lending. This bank is using commercial software, ERP system and many banking software which entails entire information about the organization and its customers. The inefficiency in staff could bring the issues for the company as it is vital to provide training program regarding this software to each employee of the organization (Dwivedi, et. al., 2015). However, the organizational structure is effective of this bank but due to various departments within the operation, there could be issue arise in the form of miscommunication which may discourage the employees. Along with that the organizational structure could increase the cost of software due to inefficient knowledge about the shortcuts and whole process of managing the work.
Information system6 System Acquisition Method There are numerous methods of system acquisition that can be executed by the Commonwealth Bank to handle their business operation and its activities in an adequate way. The bank manages the large number of finance activities that is why it is required for the bank to execute unique as well as dynamic software so that the present situation of the company can be evaluated and analysed in sufficient way (Galliers and Leidner, 2014). The system acquisition method is utilized by the bank to manage its financial activities so that any barrier could not come in the growth and development of the business. Some of the implemented software by the company has been defined below. Commercial software is able to increase the selling of services and products which can be refereed as the computer software. It is executed by the company to maintain the records of the company in an efficient manner. MS Office and Microsoft windows are the example of this kind of software which facilitates to increase the competitive advantages of the company. Customer software is used and adopted by some specific companies because it uses after considering the needs of the customers regarding the products and services. It is being used by companies to tackle the account system of other company which helps to reduce the intrusion within the organization. Enterprise resource planning (ERP) system is refereed as the business process management software that permits the organization to use a system of integrated applications to manage the various activities of the company in sophisticated manner (Galliers and Leidner, 2014). ERP system has the capability to forecast the demands of the products of the company which role is huge in maintaining the utilization of resources. Data Integration is given by this software to The
Information system7 Commonwealth Bank as the large amount of data regarding financial activities can be transferred by this bank from one place to another. It has been found that ERP software is adopted by The Commonwealth Bank among all these varies of system acquisition methods. It provides the best way of handling the various financial activities of the bank and manages the large number of clients ay once as entire resources can be aligned in systematic manner. It is facilitated to reduce the cost of the operations and smoothen th process of work by reforming it along with that it brings the collaboration between different kinds of departments and the data of the financial activities is stored in centralized system. System Flowchart As perGable, (2010), a system flowchart is considered as the physical design technique that defines the activities which would be carried out in an information system. The process of the Commonwealth Bank is defined in the flow chart that shows the ability of selling its financial services to a large number of customers. The role of software application is huge in managing the sales and measuring the process of business. The system flowchart is able to define the sales procedure and advanced accounting services.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Information system8 It is the major part of the sale which is implemented by the company for increasing the sales and revenues of the company. The flaws can be explored with the help of this flow chart and it is done by providing accounting services to the large numbers of consumers (Gable, 2010). Control problems It has been found from the journal article ofChen, Mocker, Preston and Teubner, (2010),that there are various kinds of control issues that can reduce the efficiency of the entire system. There are various kinds of controls such as Detective control, preventive control and Corrective control which perform to prevent internal errors as well as external error. It has been found that the Commonwealth Bank has various kinds of risk such as frauds, access, mischief, hacking the data and errors. These risks are at high level in the organization that show the weaken control system of the organization (Schlagwein, Thorogood and Willcocks, 2014). It is vital for the Commonwealth Bank to consider the aspects related to the cost retaining and hiring new employees. Technical issues are being the major concern for the company as due to
Information system9 this company is unable to satisfy its customers. In addition, the employees of the company are not aware how to use latest technology in managing the data of the customer as well as the organization. According toChen, Mocker, Preston and Teubner, (2010),that it has been analyzed that application complexity and a user experience is significant concern for the company as it may impact the sustainability of the firm. ERP Software entails application complexities which can be the reason of improper collection of information regarding software and application. It has been stated byGalliers and Leidner, (2014),because of various reasons, it is probable that presented data in the company can be corrupted by using illegal methods by hackers. The Commonwealth Bank has huge responsibility of taking care of financial assets of people so it is necessary for the organization to keep high level of control because it is hard to observe that who is working in the favour of the company or against of the company (Galliers and Leidner, 2014). Insider attackers are becoming the huge challenges for the bank so Commonwealth bank should keep the higher security system within the organization.
Information system10 Part II Development and adoption of the accounting software package As perPearlson, Saunders and Galletta, (2016),accounting software is taking in use by organization for recording and processing the financial transactions which is generally come under the sort of accounting information system. Furthermore, accounting software is facilitated to take proper decisions regarding the financial affairs of the company. It shows that the role of accounting software is not limited up to handling the financial activities but also it enables management of the company to take appropriate decisions (Xero Blog, 2018). The Commonwealth Bank uses this software for the purpose of enhancing the productivity of the employee and amplifying the security of the financial data (Galliers and Leidner, 2014). The growth of ERP System within the organization is beneficiary for the company as it enlarge the range of profitability of its revenues. It has been analyzed that the Commonwealth Bank is using Xero accounting software to save the bank feeds automatically on daily basis. It would become easier for the bank to provide a apparent overview of financial records. As Xero is in cloud, the bank do not require to install any kind of software because the employee so the company can use it by adding username or password given by the bank. There are some competitors of Xero such as Wave, NetSuite ERP, FreshBooks and Financial Force Accounting (Xero Blog, 2018). The customers of Commonwealth Bank can make bank feeds from wither their NetBank account or their Xero account.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Information system11 Present Market Sizes It has been found that the market capitalization of the commonwealth bank has developed above $100 billion for the very first time as its investors are chasing constantly for higher yielding stocks. The well regulated environment of the organization is strength along with the consistent affirmative earnings from CBA. The subscribers of Xero who bank with Commonwealth bank will get faster and provide the accurate information about the financial activities that will help customers of using time in correct way. It opens up the probability of additional innovations that will make it easier for small kind of businesses in which they can access to other services in more efficient manner. Leaders in the market and what gives them the competitive advantage It has been analyzed that there are many competitors available in the market that can compete them to attain the competitive advantages. Some major competitors in the market are ANZ Australia, Bankwest, Westpac, ASB Bank and StGeorge Bank Australia that use accounting software in an adequate manner to retain the customers. Along with that there are some leaders in the market of accounting software that can become the Xero alternatives such as FreshBooks, QucikBooks, Wave, Intacct, Brightpearl, NetSuite ERP, Financial force accounting and many more (FinanceOnline, 2018). The financial services sector of Australia is the greater contributor to the national economy which contributes around $140 billion to GDP a year. It has been considered as the major driver of growth of the economy that employs around 450,000 people (Atlassion, 2018). Various accounting software are being used by market leaders of banking industry.Software has its own benefits that give competitive advantages to the company as it has been found that CBA has decreased its expenditure regarding IT by 3%, its retail costs by 31.8% and its cost to Income
Information system12 ratio by 46% which increase the competitive advantages of the company. It has been found that in October 2011, “Kaching” is launched by CBA which is Smartphone app, initially for iOS and later for Android devices. This app would be facilitated many customers to demeanour payments to telephone numbers, facebook accounts and email address. This app is considered as the key step in linking online and mobile payments by enabling to bring peer to peer payments by using their smart phones in order to transfer fund. This app has been downloaded larger than 400,000 times and over AUD 1 billion have been practiced using it (Schlagwein, Thorogood and Willcocks, 2014). Thus, CBA is attaining competitive advantages by satisfying the customers and it has understood how to utilize the transformation of technology to help comprehensive transformation in order to enhance into one of the most innovative institutes of financial among established banks.
Information system13 Current gaps or challenges encountered by users Although, accounting software packages are initiated by the banks to make easier and smoother operation but there are many gaps are identified which reduce the productivity of the organization. Potential hackers are considered as the huge challenge which is enhancing in the market on daily basis. It is vital for the organization that uses this kind of software in their operations to keep high level of security over the uses of this software. According toPearlson, Saunders and Galletta, (2016),the numbers of frauds are increased thus it is integral for the company to sustain its standards that facilitates in making sure that various threats gets reduced. Recommendations It has been recommended that companies should use effective controls system in their operations to determine that what sort of factor can reduce the efficiency of the company. CBC has been using ERP software that should be protected by utilizing the firewalls. Authentication must be strong and risk based of ERP System within the organization. ERP implementers should concentrate on making sure that any custom configuration is linked with external security configuration standards and internal security configuration standards, the entire landscape of ERP System should be evaluated or monitored in an adequate manner.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Information system14 Conclusion In the limelight of above discussion, it can be concluded that the role of accounting software is huge in the banking sector as it facilitates to manage the financial activities of the organization. The organizational structure of commonwealth bank has been defined in an adequate manner that showed the company has adopted hierarchal structure. Control over the system is necessary part for the banking industry as it may lead bank into adverse situation. Xero has been using by the commonwealth bank to provide the efficient services to its customers. The market size of CBC is huge as it runs its operation in all over the Australia. There are various issues faced by the users of the software which can be reduced by following recommendations.
Information system15 References Atlassion, (2018). Atlassionempower all industries and teams [Online]. Available at:https://www.atlassian.com/customers?page=1&sortParam=date_created%20desc. [Accessed on 6thMay 2018]. Chen, D.Q., Mocker, M., Preston, D.S. and Teubner, A., (2010). Information systems strategy: reconceptualization, measurement, and implications.MIS quarterly,34(2), pp.233-259. Dwivedi, Y.K., Wastell, D., Laumer, S., Henriksen, H.Z., Myers, M.D., Bunker, D., Elbanna, A., Ravishankar, M.N. and Srivastava, S.C., (2015). Research on information systems failures and successes: Status update and future directions.Information Systems Frontiers,17(1), pp.143-157. FinanceOnline. (2018). Top 10 Alternatives to Xero: Analysis Of Best Accounting Software Tools. [Online]. Available at:https://financesonline.com/top-10-alternatives-xero-analysis-best- accounting-software-tools/. [Accessed on 6thMay 2018]. Galliers, R.D. and Leidner, D.E. eds., (2014).Strategic information management: challenges and strategies in managing information systems. Routledge. Pearlson, K.E., Saunders, C.S. and Galletta, D.F., (2016).Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons. Schlagwein, D., Thorogood, A. and Willcocks, L.P., (2014). How Commonwealth Bank of Australia Gained Benefits Using a Standards-Based, Multi-Provider Cloud Model.MIS Quarterly Executive,13(4).
Information system16 Xero Blog. (2018). Xero and Commonwealth Bank unveil new innovations in small business banking. [Online]. Available at:https://www.xero.com/blog/2016/07/xero-commonwealth-bank- unveil-new-innovations-small-business-banking/. [Accessed on 6thMay 2018].