Strategic information system : Assignment PDF

Running Head: Strategic Information System
Higher-Education Faculty
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Strategic Information System 1
Contents
Introduction.................................................................................................................................................1
Part 1...........................................................................................................................................................1
Current Organizational structure.................................................................................................................1
Operational Problem...................................................................................................................................1
System Acquisition Method.........................................................................................................................2
Commercial Software..............................................................................................................................2
Custom Software.....................................................................................................................................2
ERP system..................................................................................................................................................2
System Flowchart........................................................................................................................................3
Control Problem in System..........................................................................................................................3
Sorts of Fraud..............................................................................................................................................4
Part 2...........................................................................................................................................................4
Development and adoption of accounting software packages....................................................................4
Current Market Size.....................................................................................................................................5
Leaders present in market and their competitive advantage......................................................................5
Challenges and Recommendations..............................................................................................................5
Conclusion...................................................................................................................................................6
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Introduction
With the effect of liberalization and globalization, an organization needs to initiate changes in their
organizational structure and regulations. Strategic management system is an effective tool that helps
business in operate their activities and initiate changes in the organization. The strategic
information system is developed in response to the corporate business initiative. This process helps
the business gaining competitive advantage by delivering products and services to the customers at
lower rates (Alamri et. al., 2016). Further, the below mentioned report also talks about the ERP
system and operational issue, apart from that system flow chart is also explained in the report. More
details about the report are discussed below:
Part 1
Current Organizational structure
Atlassian Corporation is an Australian enterprise software firm that produces and develops products
for the software developers, project management and content management firms. The organization
is famous for providing issue tracking application to the companies present in the IT industry. The
company was originated in the year 2002, its headquarter is located in Sydney, Australia. The
company is currently serving more than 60,000 customers worldwide with a large extended family
of 2292 employees working with them. The company serves many products in the market like
Hipchat, Trello, Jira, Status page, Bamboo etc. The objective of the organization is to collaborate
together for work and provide best products and services to the customers in the market. The
company Atlasssian is an international organization that provides software solutions to the people
by adequately using resources and capabilities available with them (Atlassion 2018.
Operational Problem
It should be noted that as Atlassian is a global firm present in the international market due to which
the company faces many issues in the operating the business activities. Many times the company
faces delay in work and provides ineffective services to customers that hamper the growth of the
company in global market. Further, some of the operational issues are discussed below:
Language barrier: language barrier is one of the biggest issues that is faced by organizations
working in global environment. The company faces the language problem due to which
communication becomes ineffective in the activities of the organization. The texts in the software
should be pitched correctly. Also, it should be encrypted properly (Cecez-Kecmanovic, et. al.,
2014).
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Pricing: The pricing can affect the sales of the software produced by the company so it should be
priced according the rate present in different countries (Fallon, and Brown 2016).
Culture: Different countries have different culture that affects the activities of the company. Values
change from place to place so as culture so the company should be flexible enough to adopt
different cultures. The company should adopt favorable working culture to work effectively
(Chofreh, et. al., 2014).
System Acquisition Method
Different ways are present in the environment that can help the company Atlassian to effectively
handle their business operations. Further the software should unique so that it can provide
differentiation to the company in the target market. Some, of the software that are acquired by the
company are discussed below:
Commercial Software
Commercial software is one of the computer software that is made to effectively help the business
in initiate their regular day to day activities. This software is proprietary software that is used by the
organizations to maintain proper records. These records further help the company in initiating
further actions properly. MS windows and MS office are some of the significant example this
software. Also, it should be noted that this software can be used by companies to comply with
particular needs of their business (Costa, et. al., 2016).
Custom Software
This type of software is developed according to the requirements of the companies that are
purchasing it. Further, it is also develop to adequately address the requirements of clients and fulfill
them. Any organization can customize this software according to their requirements. Also, it should
be noted that this software is used by the firm to minimize the intrusion (Eden, Sedera, and Tan
2014).
ERP system
ERP system is the best system that can be used by the organizations to improve their functioning.
ERP stands for Enterprise Resource Planning system, this system allows the companies to utilize a
system of integrated applications to handle the business operations and activities effectively.
Further, proper forecasting of the future outcomes of a decision of the company is possible with the
help of this software. Basically this software helps in systematic functioning of the business. The
ERP system of the company provides data integration to the company Atlassian as it effectively
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collects and manages the information gained from different activities and transfers it to other
department in a day (Galliers, and Leidner 2014).
System Flowchart
A system flow chart is a manner of displaying how data flows in an organization and how on the
bases of information received decisions are implemented in an organization. The below mentioned
system flowchart indicates the process through which Atlassian sell the products and services and
initiate decisions accordingly. This process manages the growth of the company in the external
environment and also aims to increase the efficiency of the services rendered by the company. The
organization can also implement the training and development sessions with the help of system
flowchart. Also, it should be noted that this process also helps in innovating the activities of the
business in long run (Goetsch, and Davis 2014). The flowchart of sales process is discussed below:
Source: (https://www.lucidchart.com/pages/examples/flowchart/sales-process-flowchart-template)
Control Problem in System
There are several issues that are being faced by the company Atlassian in regular day to day life.
Some of these issues are cyber security, employee retention problem, data collection and storage
etc. As there is increase in the push to cloud facility, sophistication of software and investments for
hacker; the company has started facing the problem of data breach in the organization. The
company is facing the threat that the hackers might hack the price sensitive information related to
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the future upcoming activities of the company the personal information of the clients. Thus, it
should be noted that data privacy is one of the biggest threat when it comes to saving the
information in cloud (Hill, Jones, and Schilling 2014). Further, it should also be noted that due to
presence of cut throat competition in the industry, the company is unable to retain the customers in
the market that hampers their overall growth. Also the cost of retaining the employees is high that
the company is unable to bear. Resulting to which, employee retention become a long gone for the
company to achieve. Further, the company has adopted the technology is their business but they are
unable to deliver this technology in their product and increase its productivity as well. Resulting to
which technology is adversely affecting the state of the organization as it is increasing the work
load for the employees of the company. Apart from that, the employees are also don’t know how to
make use of technology effectively (Hunton, McEwen, and Wier 2015). The organization is
adopting the hi-tech technology but the employees have yet not gained the competence to
adequately adopt and invest it properly in increasing the productivity of the company.
Sorts of Fraud
Frauds, in an organization reduce the efficiency of an organization to continuously initiate the
business activity properly. The management of all organizations aims to eliminate the frauds in the
system so as to increase the efficiency of the company. With the use of ERP system, the workers of
the company Atlassian have gained the efficiency to use them properly in the business operations.
This process effectively supports the management and detecting and eliminating the frauds that can
occur in the organization (IES, 2016).
Part 2
Development and adoption of accounting software packages
The accounting software falls under the segment of accounting information system under which this
software is used for recording, evaluating and processing the transactions present within handle
module. Further, it should also be noted that the accounting software is based on the cost and
complexity. In the current environment, the accounting software increases the capacity of an
organization to effectively manage their activities in the market and bring successful outcomes for
the company. This process effectively reduces the costs and increases the level of profits for the
company. Resulting to which, the accuracy of the company also increase with the introduction of
this process as it works according to the budget implemented for the activities of the organization.
Increase in accuracy helps the organization in making effective decisions in the organization (Islam,
et. al., 2017).
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This software introduced by the companies helps them in increasing the level of revenue and
goodwill as well. The ERP system of the companies basically organizes all the activities of the
company that subsequently helps them in increasing the profit level of the company in the target
market. It should be noted that this type of software is used by many organizations according to
their requirements in the market. The ERP system used by the companies is beneficial to them
because it eliminates the frauds and risks of the company, this process stores information
effectively and combines all the activities of the company in producing valuable outcomes for the
organization (Liebowitz, and Frank 2016).
Current Market Size
The current market size of Australian IT industry is expected to reach $ 73.33 billion by the end of
2019. The industry will increase by $ 20 billion from the year 2014. The companies present in this
industry are involved in initiating cross vertical transactions and providing IT solutions like
hardware, software and IT services to other companies present in different parts of the world. The
Australian organizations invest almost 15% in the hardware field and products like data center
system, technology, telecom equipments etc. The software industry of the country is vibrant,
competitive and economic as well. The software industry is an integral part of the ICT industry.
The companies present in this industry provide better software services to other companies
worldwide as they know the rule and regulations of other countries resulted in higher degree of
commonality in practices and legislation in those countries. This ultimately resulted in increase in
the export opportunities for the companies.
Leaders present in market and their competitive advantage
Some of the market leaders present in the industry are Atlassian, Xero, Envato etc. These are the
top IT companies that lead the market. The company Atlassian as discussed above is one of the
most well-established organizations present in the market of Australia. The company has gained
competitive advantage over the larger vendors and the start-ups as well. This company provides
services to other organization to collaborate better. The company provides core collaboration
technology to companies that help them to become competitive. This helps the organization to gain
competence in the market (Atlassion 2018).
Further, the company Xero gained the competitive advantage in the market by investing heavily in
maintaining open ecosystem. This platform helped them to connect partners and provide them an
open platform to drive innovation and make use of it. Lastly, the company Envato is market brand
that provide effective branding system to other organizations. The brand image of the company
helps other organization to create a brand image and initiate their sales in the market. These are the
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market leaders present in Australia software industry that have used their competitive advantage to
succeed in the market.
Challenges and Recommendations
Accounting software packages, ERP system etc. are used by the companies to organize their
activities are effectively increase their productivity as well. Although, the ERP system and
accounting software provides many benefits but it also hampers the growth of the company in other
ways. The challenges faced by the organizations with the use of this system are discussed below:
Issue related to costs: Cost is one of the major challenges that affect the growth of the organization
in long run. The company faces difficulty in managing the costs and regularly updating the system
according to the new requirements present in the market.
Inefficiency: many software programmes does not increase the efficiency of an organization to
work; instead it reduces it by moving the activities of the company in wrong direction.
Security issues: The software lacks the security of the private data of the organization. Any hacker
can hack the software and retrieve the details from the software as well (Maduqne 2013).
Further, the recommendations related to the case are discussed below:
 The company should use latest technology that is cheap and pocket friendly for the
company.
 They should see that the use of new technology does complex the activities of the
organization and do not disturb the regular activities of the employees.
 The cloud based software should be formed that should effectively store the data and
minimize the threat of data hacking.
 A skilled team should be hired by the company to look after the software and related
activities in the company.
Conclusion
Thus, in the limelight of above mentioned events, it should be noted that the strategic information
system plays an effective role in helping the organizations in effectively managing the activities. In
the current global environment, many challenges are faced by the company hampers its growth.
Further with the use of effective ERP system the company adequate reduces the risk of frauds and
mistakes and help the organization in achieving better outcomes as well. Lastly, the flow chart
system talks about the ways in which sales are initiated in the organization. The report adequately
satisfies the requirements the task.
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References
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planning: A case study of a service delivery company. Learjet 3(5), pp.78-84.
Atlassion., (2018) Atlassion empower all industries and teams[Online]. Retrieved from
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May 10, 2018
Atlassion., (2018) Atlassion: A leader in Gartner’s 2017 magic quadrant for enterprise agile
planning tools [Online]. Available from https://www.atlassian.com/gartner. Accessesed on
May 10, 2018.
Cecez-Kecmanovic, D., Galliers, R.D., Henfridsson, O., Newell, S. and Vidgen, R. (2014) The
sociomateriality of information systems: current status, future directions. Mis Quarterly, 38(3),
pp.809-830.
Chofreh, A.G., Goni, F.A., Shaharoun, A.M., Ismail, S. and Klemeš, J.J. (2014) Sustainable
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Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M. (2016) Enterprise resource planning
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Eden, R., Sedera, D. and Tan, F.B. (2014) Sustaining the Momentum: Archival Analysis of
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