Xero ERP vs MYOB for Wesfarmers

This assignment analyzes the suitability of Xero ERP and MYOB as accounting software options for Wesfarmers. It highlights key features and functionalities of both systems, focusing on factors like online accessibility, browser compatibility, and ease of installation. The analysis concludes that Xero is a more suitable choice for Wesfarmers due to its cloud-based nature, broader online availability, and user-friendly setup process compared to MYOB's reliance on browser installation.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
Name of Student
Name of University
Author Note

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Table of Contents
Part 1..........................................................................................................................................2
1. Current organisational structure.........................................................................................2
2. Operational problems that Wesfarmers could experience because of this structure..........3
3. Preferred system acquisition method..................................................................................3
4. Describing and preparing a system flowchart of the sales procedures of Wesfarmers......4
5. Identifying any control problems in the system.................................................................5
PART 2.......................................................................................................................................6
1. Development and adopting accounting software packages................................................6
2. The current market size......................................................................................................6
3. Identifying leaders in the market........................................................................................7
4. Identifying current gaps or challenges encountered by users.............................................8
Reference List.........................................................................................................................9

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Part 1
1. Current organisational structure
Every organisation consists of a certain structure that allocates the task of the
organisation among the employees or the stakeholders so that no confusion about the role of
the different designations occur (Friesen et al. 2014). Through the structure, the
organisational operation, the supervision of the task through coordination is carried out in
order to achieve the organisational goal and its objective. The structure that prevails in
Wesfarmers is the hierarchical structure. The organisational structure of Wesfarmers includes
the director at the top of the organisation followed by the manager and regional manager who
handles the different regional offices where the organisation operates (Wesfarmers.com.au
2017). The team leaders are next in line that looks after the job that is being done. The
employees report to them directly and they form the ground level supervisor of the
organisation. The general manager designation also prevails just after the director who
supervises the different departments of the organisation like the production, finance,
marketing and R&D (Sorensen and Stanton 2013). Without a proper organisational structure,
it can be difficult for Wesfarmers to maintain the level of consistency it has in the Australian
business market. This can hamper the growth of the organisation.
2. Operational problems that Wesfarmers could experience because of this structure
The operational problem that the organisation could experience includes the problem
related to hierarchy. The operation of the hierarchy at the top level is always very clear but
with the descending order of the structure, the issue that surfaces create confusion among the
members of the organisation. According to Hill, Jones and Schilling (2014), the real problem
that arises is that the manager or the supervisors often take up an authoritative role in the
organisation or branch of the organisation. They dominate the employees or the executives in

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a wrong way that de-motivates the employees, which in return affect the organisational
operation. Another issue related to the operational problem within the organisation is that of
communication. The lack of communication within the members of the organisation creates
confusion and the scope of improvement within the organisation in relation to the role of the
employees is hampered. Cost is another operational problem that may come up with
employing multiple designators. A delegation of job roles is another problem that the
authority of Wesfarmers may face in future. The problem may arise when the delegation of
the responsibility is not circulated among the employees properly.
3. Preferred system acquisition method
The engineers always face a problem while choosing the appropriate method of
system acquisition in relation to the requirements of the organisation. The systems that the
organisations use mostly depend upon the capability of that company. There is no guidance
available in the choice of the acquisition method as there are numerous system acquisition
methods available that confuses the people (Yen et al. 2015). Wesfarmers is a conglomerate
that deals with multiple types of products. The ERP software is best suited for Wesfarmers. It
is said to be effective software with all required prospects that are needed by the organisation.
The ERP (Enterprise Resourcing Planning) is used by organisations to manage the operations
that the organisation is operating. The ERP is apt for Wesfarmers because the organisation as
mentioned earlier is a conglomerate that is very diverse in its products and services. The
management of the operations is multifaceted as the organisation deals with supermarket
services, home furnishings, coal mining and many other industries (Leon 2014). To manage
such hugely diverse industry, Wesfarmers must use the acquisition method of ERP that suits
the demand of the organisation in relation to the managerial operation and accounting system
of the organisation. The most important benefit of using ERP is that the service it provides is
far worthier than the initial cost that is required during the installation of the software.

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Moreover, this particular system is very time efficient and performs all types of demands of
accounting software with better analytics and regulatory compliance that is simple and
therefore it is apt for this conglomerate.
4. Describing and preparing a system flowchart of the sales procedures of Wesfarmers
Figure: Sales Project
(Source: Young, Castleberry and Coleman 2016)
The Sales procedure of Wesfarmers includes the four levels that is the marketing,
qualifying, proposing and delivering in the sales of the services and the products (Morse
2016). The process is carried out in relation to the business objectives, suspects,
opportunities, agreements and satisfied customers.
5. Identifying any control problems in the system
Göllmann and Maurer (2014) stated that with advancement in technology, problems
regarding the installation and up gradation are taken into consideration in the acquisition of
the ERP in several organisations and country. However, technology is not the issue in the
implementation of the software of the ERP. The recurrent issue is that of risk management
within Wesfarmers and the change of the people. In most organisations, the implementation
of the ERP counts for the budget and timeline consideration and ignores considerations like

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the expectation of the compliance and the risk management. The major risks identified with
the implementation of ERP consist of the following:
 Losing control over the projects and the delays in the implementation of ERP within
the organisation
 Issues related to process, data integrity and control
 Cost issues and live rework
 Lack of knowledge and skills in relation to the in-house operation
 Compliance issue
 The alignment that lacks are the organisation's structure, objective process and the
implementation of ERP
Detection of fraud in relation to the ERP implementation is extremely complex but is
handled by the fraud examiners and the auditors. The detection is primarily done through
auditing the log. Few fraudulent specifications are particular to different fields. The manual
process of transferring data and data alteration is another risk related to the business operation
with ERP installation (Schaltegger, Etxeberria and Ortas 2017).
PART 2
1. Development and adopting accounting software packages
Any organisation often faces problem in choosing between the existing accounting
software that is already in implementation within the organisation and the one that the
organisation is opting to implement in the sector. The reason behind this confusion is the
investment that the organisation bears in relation to the implementation of the accounting
system that also needs up gradation (Mas et al. 2014). The computer power is increasing day
by day that encourages or rather pressurises the experts to develop or upgrade their existing
software. This can help in effective work in the workplace and increase performance in an

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effective manner. The same reason works for the organisation who always wants to be the
first in the race in accordance with the competitive advantage or internal fraudulent. In
adoption, any organisation goes for the total change of the accounting system that is replacing
the existing accounting system with the new system in order to meet the required acquisition
method that matches operation of the organisation. According to Schaltegger, Etxeberria and
Ortas (2017), the other way of adoption is the conversion of the accounting software package.
This includes the running of the existing accounting software along with the newly adopted
accounting software. There has been rapid adoption of the accounting software in Australia
and Wesfarmers is no exception. Wesfarmers adopts the MYOB ERP accounting software.
2. The current market size
The current revenue of Wesfarmers is AUD$65.98 billion in 2016, that brought the
organisation among the top most successful business enterprise. The organisation account for
a shareholder of 530,000 bases spread across different parts of Australia. It largely operates in
Australia and has market presence in New Zealand too but this organisation does not operate
internationally or possess global presence (Mayer, Melitz and Ottaviano 2014). The
organisation has a great cover of the market in Australia since it is a conglomerate. The
industries that Wesfarmers operate include the retail market, the industry in coal mining,
products of home furnishing, departmental stores, subsidiaries and insurance business. The
business under the name of Bunnings, Coles, Target, Kmart, chemical and fertiliser industry,
home and office appliances operates through numerous warehouse and stores. This is the
reason that the share of the Wesfarmers is quite expensive in the market. The organisation has
just started operating in the market of Ireland. The reason behind such big market share is the
diversification, long-term strategies that provide long-term growth. Dividends are another
factor for the expense of Wesfarmers share that is 5.2% fully franked dividend
(Wesfarmers.com.au 2017).

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3. Identifying leaders in the market
Wesfarmers, the most diverse company in the market of Australia has become the first
company to beat Woolworths. Wesfarmers deal with multiple services and products. Hence, a
conglomerate has been successful in operating in different types of industries. The closest
competitors of Wesfarmers include Woolworths, Metcash Limited, Caltex Limited who is
giving tough competition to Wesfarmers. The success of Wesfarmers lies in its choice of the
industries where the other competitors have not yet arrived. According to Nica (2013),
Wesfarmers is extremely versatile in its products that help the organisation to operate in
different types of industry. Therefore, the organisation has diverse markets along with diverse
customers that the other competitors do not possess (Jin, Ji and Gu 2016). The other leader or
the competitors only deal in the supermarket or in the home furnishing or other industries like
the railroad, mining, food service, departmental stores, chemical and fertilisers, insurance
institutions and so on. In contrast to this, Wesfarmers deal in multiple industries. In that case,
the leaders are in the disadvantage of operating in a diverse market.
4. Identifying current gaps or challenges encountered by users
Wesfarmers use the MYOB ERP that is accounting software, which is used by the
organisation to meet the acquisition system method. This particular ERP is used widely by
most of the organisation that opts for an all in one software package in meeting the demand
of the organisational operation. XERO is the new ERP software that is being widely used by
multiple organisations in Australia. This is because MYOB is the ERP software provider that
provides its customers with the advantage of the first mover but otherwise all the features are
similar that XERO provides (Schaltegger, Etxeberria and Ortas 2017). The MYOB is far
more expensive than XERO with just the same features of online help, application
availability, and browser supported whereas the MYOB needs a browser for installation

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purpose, unlike XERO. Therefore, it is highly recommended that Wesfarmers should go for
the change that installs the XERO ERP as the accounting software.

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Reference List
Friesen, J. P., Kay, A. C., Eibach, R. P., and Galinsky, A. D. 2014. Seeking structure in social
organization: Compensatory control and the psychological advantages of hierarchy. Journal
of Personality and Social Psychology, 106(4), p.590.
Göllmann, L., and Maurer, H. 2014. Theory and applications of optimal control problems
with multiple time-delays. Journal of Industrial and Management Optimization, 10(2),
pp.413-441.
Hill, C. W., Jones, G. R., and Schilling, M. A. 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Jin, J., Ji, P. and Gu, R., 2016. Identifying comparative customer requirements from product
online reviews for competitor analysis. Engineering Applications of Artificial
Intelligence, 49, pp.61-73.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Mas, J. F., Kolb, M., Paegelow, M., Olmedo, M. T. C., and Houet, T. 2014. Inductive pattern-
based land use/cover change models: A comparison of four software packages.
Environmental Modelling & Software, 51, pp.94-111.
Mayer, T., Melitz, M. J., and Ottaviano, G. I. 2014. Market size, competition, and the product
mix of exporters. The American Economic Review, 104(2), pp.495-536.
Morse, J. M. 2016. Mixed method design: Principles and procedures. Routledge.
Nica, E. 2013. Marketing implications of consumer behavior. Economics, Management and
Financial Markets, 8(1), p.124.
Schaltegger, S., Etxeberria, I. Á., and Ortas, E. 2017. Innovating Corporate Accounting and
Reporting for Sustainability–Attributes and Challenges. Sustainable Development, 25(2),
pp.113-122.

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Sorensen, L.J. and Stanton, N.A., 2013. Y is best: How Distributed Situational Awareness is
mediated by organisational structure and correlated with task success. Safety science, 56,
pp.72-79.
Wesfarmers.com.au. (2017). Home. [online] Available at: http://www.wesfarmers.com.au/
[Accessed 24 Aug. 2017].
Yen, H. R., Hu, P. J. H., Hsu, S. H. Y., and Li, E. Y. 2015. A Multilevel Approach to
Examine Employees’ Loyal Use of ERP Systems in Organizations. Journal of Management
Information Systems, 32(4), pp.144-178.
Young, S.Y., Castleberry, S.B. and Coleman, J.T., 2016. Advanced Selling: A
Comprehensive Course Sales Project. American Journal of Business Education
(Online), 9(3), p.119.