Literature Review: Accounting Information Systems in the Australian Airline Industry

This literature review examines the evolution and current state of accounting information systems (AIS) within the Australian airline industry, focusing on Qantas Airways as a case study. It explores the organizational structure of Qantas, its operational challenges, and the adoption of accounting software packages. The review analyzes the current market landscape, identifies key players and their competitive advantages, and highlights the gaps and challenges faced by users of AIS in the airline industry. Finally, it provides recommendations for improving the effectiveness and security of AIS in this dynamic sector.

Assignment 1(Literature review)
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Table of Contents
Introduction:..........................................................................................................................................3
Part 1:................................................................................................................................................4
Part 2.................................................................................................................................................8
Conclusion...........................................................................................................................................12
Recommendations...............................................................................................................................13
References...........................................................................................................................................14
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Introduction:
The accounting information system covers and defines the concept of accounting software. It
can be stated as software which is used for recording and processing the transactions relating
to accounts. The various modules used for this purpose are accounts receivable and payable,
trial balance as well as payroll module. Such software can be made in house or even it can be
taken from a third party. In Australia this software has undergone remarkable changes due to
technology being regularly getting advanced. The various challenges faced with its use will
recommend many changes in this software in the coming future.
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Part 1:
Current Organisational structure:
Association structure is extremely pivotal in deciding how duties, power, and parts are
allotted, observed and composed. On the other hand, it gives an instrument to the stream of
the data in all levels of the administration. In any case, the association structure significantly
relies upon the organization procedures and targets. The regularly utilized structures
hierarchical are either brought together or decentralized structures. Also, Qantas has either
received unified or decentralized structure. The Qantas hierarchical structure includes the
parts of both concentrated and decentralized association structure ( Galliers & Leidner, 2014).
The organization contains the different backups headed by various administrators who have
been presented with specialist, parts, and duties to be practiced under the zone of their tasks.
Then again, the organization workers have been masterminded in a way that the execution of
their obligations is in accordance with the organization objectives and targets. The
organization administration depends on two unmistakable organizations, Qantas Domestic
and Qantas International with every business being overseen by its CEO. Also, the two
business divisions have their business and operational capacities. This structure has been
embraced as the method for concentrating on the organization systems of changing the
Qantas International business and also enhancing the Qantas Domestic business (Pearlson, et.
al, 2016).
What operational problems (e.g. Efficiency, errors) do you think the organisational
could experience because of its structure?
From the examination of the idea of Qantas association structure, plainly the organization has
received framework kind of structure. The best most organization administration includes the
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individuals from the corporate administration and additionally an official best administration
group. The most abnormal amount of administration is in charge of building up practices and
strategies to be received and actualized all through the association. Underneath the best
initiative, there are different divisions, for example, regulatory administration, business
organization, venture administration and utilitarian administration. Every one of these
divisions work with the different group to guarantee the association objectives and targets are
accomplished.
It might well happen that the trails of Qantas will be a downfall for Australian exercisers. The
daily news quoted that people of Australia are not set up to pay for the give prices and
situations they appreciate is getting to be more genuine consistently. Flight is the greatest
worldwide of complete enterprises and, same, each moment a remote aircraft lands at an
Australian air terminal it shares the work expenses and work performs of that nation from
ease Singapore to the European union. Qantas' quick issue is in the increase of adversary of
other Australian carriers; with bring down employee pay and more noteworthy efficiency,
excelleny in residential market, which has appreciated a monopoly since years. Other carriers
have solid other carrier partners with huge resources, while it is trying to pull in financial
assets intrigue. Danger has been high for campaign the government for help after other
carriers raised $380 million, mostly through its remote accomplice carriers (Arvidsson, et. al,
2014).
Australia Qantas, under the Qantas Sale Act of 1995, is given to 49 for every currency distant
ownership while other carriers has part itself into two foundations, residential and global.
Under the law the domestic activity can be 100 for each currency outside controlled, while
the worldwide support must endure 51 for every currency controlled. For quite a long time it
has exchanged on – paid – its heavenly wellbeing high. In the motion picture Rain Man,
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Dustin Hoffman, playing Raymond Babbitt, uttered the now acclaimed words that "Qantas
never crashes". The motion picture turned out in 1989, when it was at the highest point of its
diversion with more than 40 for each penny of the activity into and out of law strategy was to
shield the national bearer from outside rivalry; an aircraft which citizens claimed and which
was pitching permits at a best to venerating voyagers when understood carriers were having
numerous mischances. In 1989 there were 231 mishaps and episodes, which influenced
Qantas' flawless record to sparkle (Willcocks, 2013).
What is the most likely system acquisition method- commercial software, custom
software, or ERP?
Qantas Airways Limited which works through 200 airplanes across over Australia and around
globe. Has progressing challenges which have constantly rotated around a fairly complex
ERP usage. It needs to deal with substantial clump handling loads, especially during the
evening, and, in the meantime, keep on supporting business undertakings and our overall
tasks.
Adding to the difficulties: The ERP framework works in a profoundly coordinated scene with
various interfaces—something that requires customization and oversight. Before, a
considerable measure of exertion and assets were allotted to the checking required to keep the
framework working adequately (Cassidy, 2016).
Describe and prepare a system flowchart of the sales procedures for the chosen
organisation.
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Figure 1: Sales procedure
Sales procedure of Qantas is very much complex as the interface for an airline is very
sophisticated. The procedure starts from the customer getting a ticket booked from a travel
agency or online. Then he goes to the airline for boarding pass and visits the ground handling
team and the body check and the air traffic control to get all the checks done and finally to
the plane to take off (Majchrzak & Malhotra, 2013) .
Identify any control problems in the system and what sorts of fraud are possible in this
system?
Control problems in the system of Qantas can be with the on board staff as when the plane is
in the air whole control is in the hands of the on board staff hence the on board staff should
be well enough so that the company does not faces and due circumstances and frauds.
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Part 2
Development and adoption of the accounting software packages.
Qantas Airways uses RAPID Cargo, an income bookkeeping arrangement from news, the
gulf-based IT detachment of the Emirates Group. The framework is known as Scorpio inside
the carrier's activities. The carrier, which received Rapid Cargo in conjunction with another
administration announcing framework created by Qantas, wants to enhance Qantas Freight's
budgetary activities, profitability and cost-proficiency. Quick Cargo was produced to meet
the quickly developing cargo income bookkeeping needs of major worldwide carriers like
Qantas, to guarantee speedy and exact acknowledgment of money and income due. Qantas
chose to overhaul its cargo income bookkeeping frameworks to enhance administration data
and detailing, fortify cost controls, and enhance money related returns through better
effectiveness and efficiency. Qantas is the most recent carrier to execute RAPID and joins,
other carriers through It. (Amrollahi, et. al, 2013).
The current market size
The airline is situated in the Melbourne and Sydney suburban of Symbol with its primary
centre point at Sydney Airport. As of March 2014, it had a 65% offer of the domestic home
advertise and took 14.9% of all travellers going all through continent. Various auxiliary
aircrafts work to local emphases and on some stem courses inside continent under the
QantasLink banner. Its auxiliary Jet connects gives benefits as flying under the parent
company mark. It likewise owns Jet star Airways, a negligible determination carrier that
works both worldwide managements from Australia and suburban administrations inside
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pacific; and holds ownership in various other Jet star-marked aircrafts (Ghapanvhi &
Amrollahi, 2014).
Qantas Airways has battled before, especially in 2014 when the organization recorded a $2.8
billion misfortune. From that point forward, the organization has reported forceful cost-
cutting designs and is presently 3 years into this restoration. I trust Qantas is a decent
organization and will keep on being a pioneer in the Australian carrier industry; be that as it
may, I don't think the cost of the stock offers an adequate edge of wellbeing to make the jump
and contribute (Loser, 2015).
Identify the leaders in the market and what gives them the competitive advantage.
The household aircraft industry in Australia is a duopoly with Qantas and Virgin Australia
(consolidated piece of the overall industry of more than 90%), each owning a low admission
carrier backup Jet star and Tiger air Australia, separately. In the course of recent years, the
industry has seen unfaltering decreases in income; this is predominately because of the value
war that Qantas and Virgin occupied with (which has since finished). Nonetheless, numerous
organizations have possessed the capacity to slice cost through cutbacks, wage solidifies,
upkeep changes, and appreciating lower costs for stream fuel. This has brought about higher
edges and expanded benefits in spite of declining incomes.
Throughout the following 5 years, the industry can expect moderate development as
household tourism is required to increment and in addition universal outings to Australia.
Edges may likewise keep on increasing as planes, for example, the Boeing 787 Dreamline
turn out to be more fuel proficient. This development is extremely insignificant, evaluated at
1.9% yearly until 2023 (Doloreux & Porto Gomez, 2017).
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The market leader in the airline space is Emirates. The set up arrange transporters in Central
EU and Australia, i.e. Air France-KLM, British Airways, Lufthansa, and Qantas, see
Emirates' key choice to move itself as a worldwide transporter as a noteworthy danger
meanwhile it empowers air travellers to go conventional carrier centre points, for example,
Dubai on their way amid Europe/America and Asia/Australia by altering flights in Dubai.
These deliverers likewise think that it’s hard to manage the developing attentive danger
Emirates stances to their occupational in well-lit of their substantially higher cost base. A
portion of these transporters, outstandingly Air France and Qantas, have held responsible
Emirates for getting shrouded state endowments and of custody up unduly comfortable an
association with Dubai's airplane terminal expert and its flying specialist, both of which are
likewise totally state-claimed elements that offer a similar government owner with the carrier.
Qantas' administrator guaranteed that Emirates can lessen its obtaining costs beneath
advertise rates by exploiting its administration investors' independent mortgagor rank.
Emirates' leader dissents, and has likewise alluded to United States aircrafts chapter 11
assurance just like a generous type of state help. The aircraft makes consistent profits. Lately,
American Airlines, Delta Airlines, and United Airlines have influenced comparable claims
and in addition expressing that they to disregard Open Skies (Ghapanchi, 2015).
In May 2010, Emirates officers cancelled cases that did not pay them desired amount of
money from the local government, they said that the airline got less amount in trade and with
so much time Emirates was started and was charging less than other airlines. Likewise said
that the airline brought the societal payments and included the metropolitan exams of Dubai.
The airline also gave profits and every year the government gave it dividends. Emirates also
face some competition from other carriers and also from the gulf carriers.
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Identify the current gaps or challenges encountered by users or customers of accounting
software/packages and make relevant suggestions or recommendations.
Challenges faced in the airline industry:-
1.) Improving productivity: Rigid and inflexible organisation structure, act as a hinder in
organisation productivity. Organisation structure has a rigid hierarchy which does not allow
all the personnel to cross functions (Lee, et. al, 2015).
2.) Internal security weakness: Internal control weakness refers to inefficiency in the
internal system and controlling system. There is high requirement of security intelligence for
the system so as to ensure effective control over the planning and controlling (Lee, et. al,
2015).
3) Employees inefficiency and productivity: In the rigid organisational structure, there is
rigid and inflexible accountability and authority and employees does not get proper authority
for providing their opinion and views (Lee, et. al, 2015).
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Conclusion
It can be concluded that since the invention of computer language, this has followed with the
invention of accounting software in Australia. Firstly, simple programs were made then as the
time changes more and more complex accounting system came into existence. In Australia
there are major three providers of the software for accounting. They are the major
competitors for both the small and medium sized business. These are majorly intuit, MYOB
and Xero. This software has now integrated into software named cloud. With the help of this
software’s challenges can be overcome very quickly and easily.
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Recommendations
It is important to recommend that in order to overcome the changes and problems faced in
cloud accounting software it is necessary to carry out identity management measures for the
purpose of creating authenticated services. An approach that has been recommended in order
to protect data and enhancing security that is information centric security. This approach can
be made effective by adopting a framework of trusted computing. If the above recommended
measures are adopted by the company then cloud accounting software will prove itself to be
the more adaptable software in terms of its advantages, efficiency cost as well as security.
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References
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 Doloreux, D. and Porto Gomez, I., 2017. A review of (almost) 20 years of regional
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Computing (JOEUC), vol. 27(2), pp.1-31.
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 Löser, F., 2015. Strategic information systems management for environmental
sustainability: enhancing firm competitiveness with Green IS. Universitätsverlag der
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