Strategic information system - Assignment PDF

Running Head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
[Name of the Student]
[Name of the University]
[Author note]

Introduction:
Accounting software is the type of software which is associated with the execution of
various transactions along with tracking and operating the transactions along with it. This type of
software are used along with the different models of business and this application is very much
effective for the various business processes. The following portion of the literature review would
be discussing about one of the major organizations of Australia known as the Commonwealth
bank of Australia. The Accounting software is mainly associated with working as an information
system for the accounting purpose (Hallikainen et al. 2017). This type of software is mainly
taken form the third party vendors and are then distributed to the companies which are wishing to
have an accounting software but in some cases it is often acts as the integration of the two cases
but having some slight alterations. Accounting software can be online based as well as computer
based. Along with the information related to accounts can be retrieved every time form
everywhere.
The literature review that has been conducted below would be greatly helping in the
process of understanding the structure of the organization, Commonwealth bank. Besides this the
review has also been associated with discussing about the various problems which are faced by
the commonwealth bank and this problems mainly includes the various kind of inefficiencies
along with the various type of errors that are present in the flowchart for the sales and the shares
that the bank is having. In the second part of the literature review a discussion has been made
regarding the major competitors of the Commonwealth bank.

Discussion:
Part 1:
About the Organization: Commonwealth Bank of Australia
This organization or better to say the Commonwealth bank of Australia is one of the
largest bank in the country of Australia. Besides this the branches also has its branches in
different part of the world which includes the Asia, U.K, U.S, Fiji and lastly New Zealand. The
bank is associated with providing different type of financial services which mainly includes the “
management of the funds”, “ services related to providing of loans and making of investments”,
“retail banking”, “education loans”, “other types of loan” and many more. The ASE or the
“Australian Securities Exchange has designated this bank as the best bank of Australia in the
year of 2015. The bank had started its operations in the year of 1911 by the Government of
Australia. This bank is listed as one of the top four banks of Australia whereas the other three
banks mainly includes the Australia New Zealand bank, Westpac and lastly the NAB or the
National Australian Bank. The Government of Australia fouded this bank but it become totally
private in the year of 1996 (Commbank.com.au, 2018).
Structure of the Organization: Commonwealth Bank of Australia
The complete management as well as the corporate section of the bank has been included
in the organization structure of the organization. Besides the management and the corporate
section the structure of the organization also includes the managing bodies and the employee’s as
well as the customers who are associated with this bank (Galliers and Leidner 2014). In the
figure which has been provided below mainly depicts the main structure of the organization

where the management level has been divided into three different levels which includes the
higher management level, middle management level and lastly the lower management level.
Figure 1: Organizational structure of Commonwealth Bank of Australia
(Source: Commbank.com.au, 2018)
Problems Faced by the Organization: Commonwealth Bank of Australia
Despite of being listed as one of the top banks the bank has been facing several types of
problems. It has been seen that the shares of this bank has fallen at a tremendous rate which has
ultimately resulted in various kinds of drawback in the business conducted by the bank. In last

few years it has been seen that the shares of the bank are falling very rapidly due to the
adaptation of the various wrong strategies (Ismail and King 2014). But now the bank has started
to take certain steps in order to tackle all this problems and also to make improvements in the
share that they are having. Despite of taking certain steps to tackle the problems it was seen that
most of the strategies which were adopted by them are mostly wrong as constant alterations were
taking place in the market trends. The main reason responsible for all this alterations is the
structure of the organization is the competition which exists between the Commonwealth bank
and the other banks which are situated in Australia (Pearlson, Saunders and Galletta 2016). The
problem grew more and more when the bank was not capable of satisfying the customer
requirements. Besides this the necessities of the customers were also not fulfilled. One such
example is incapability of providing loans to the customers due to fall of the shares. The bank is
also having a higher rate of interest as compared to the other banks for this reason also the clients
of the bank started losing their interest from the Commonwealth bank. The easy payments of the
loans was also not possible due to this various customers stopped taking loans from this bank
along with creating new accounts in this bank. For all reason the customers opted for the other
banks present in Australia which are having lower rate of interest and the payments of loans is
also easy. The figure which consists of a graph shows the major downfall of the commonwealth
banks shares (Ismail and King 2014). Form the graph it is clear that the shares of this bank was
above 76 which was very good but initially this started degrading and a sharp downfall of the
shares has occurred. From the figure it is also possible to conclude to the fact that the efficiency
of the commonwealth bank of Australia in order to hold the customers is totally absent. The fall
in the shares has also effected the new clients as well as they are totally afraid of investing their
money on the bank (Cassidy 2016). Due to the fall of the shares the customers have also lost

their interest in taking loans from this particular bank and this has also happened due to the
higher rate of interest charged from the customers by the bank. Customers always looks for those
banks where the rate of interest is low and also when they fell secure about the money. Another
problems which are included in the commonwealth bank of Australia is the problems related to
the employees who are working in the bank and also the staffs (Peppard and Ward 2016). The
officials of the bank often reacts rudely towards the clients this is also considered as another
problem which is associated with the creation of a negative impact on the minds of the clients.
Figure 2: Downfall of shares in Commonwealth Bank
(Source: Commbank.com.au, 2018)
Strategies adopted by the Organization: Commonwealth Bank of Australia
The organization understood the fact in order to tackle the problems they need to adopt
certain strategies and due to this the major four elements for success were identified and this
identified elements on which the bank decided to focus mainly includes the following:

I. Strategies related to the Customers: They understood the fact that the customers acts
as the first and the foremost element which is responsible for the success of any of the
bank. A bank would be totally nonfunctional if the customers stop visiting the bank
which would ultimately lead to the closure of the bank (Li, Cui and Lu 2017).
II. Technology: This is the second element where the bank needs to focus. It is the
responsibilities of the bank to change their way of thinking regarding the new
technologies. They should understand the need of new technology in order to run
their business success along with the changing of the world (Kavanagh and Johnson
2017).
III. Strength: The strength of any organization is greatly dependent upon the capability of
the teams who are associated with the organization. The same thing is applicable for
the Commonwealth bank as well. It is the responsibility of the staffs and the
employees to work together for the purpose of achieving the objectives and the goals
that the organization is having (Coviello and Tanev 2017).
IV. Productivity: This is considered as the last element which helps in the successful
running of the business. The bank should maintain an annual record for the
productivity that the employees are having as well as the productivity of the entire
organization (Madhavaram and Hunt 2017).
The figure which has been provided below shows the percentage of the strategies which
has been adopted by the Commonwealth bank of Australia.

Strategies
Customer 40%
Technology 15%
Strength 15%
Productivity 30%
Figure 3: Strategies of Commonwealth Bank of Australia
(Source: Commbank.com.au, 2018)
System Acquisition method: Commonwealth Bank of Australia
Many organizations is associated with the use of the ERP or the Enterprise Resource
Planning. Commonwealth bank also uses the ERP. By making use of the ERP the bank has been
associated with manufacturing different types of control along with amalgamating the major
portion of the business as well (Nguyen, Nguyen and Bosch 2017). The IS of the management
and the ERP is associated with combining the various areas of the organization which mainly
includes the marketing, planning, sales, finance, purchasing and human resources. The bank has
also been associated with the use of the basic systems, application and product model or the SAP
model for the purpose of their business. The introduction of the SAP in the business model of the
bank is very much complex and due to this reason there is a requirement of knowledge as well as
training (Appelbaum et al. 2017). This method would be greatly increasing proficiency of the

bank along with increasing the flexibility and would also be integrating all the modules of the
business at an extreme rate. Additionally the SAP is also cost effective (Abraham and Dao
2017). The wrong strategies that were adopted in the past days acted as the major reason
responsible for the problems faced by the bank. Updating and renewing of the SAP is done in
order to make the shares of the bank become steady (Hallikainen et al. 2017). Additionally the
shareholders of the bank are also trying to reduce the interest rates of the banks in order to make
the clients interested in again taking loans.
Figure 4: Systems Flowchart of Commonwealth Bank
(Source: Commbank.com.au, 2018)

The figure that has been provided above is associated with showing the flow of different
processes in the bank. This figure illustrates the various procedures conducted by the bank in
detail. Besides this the figure also helps in finding the loopholes that occurs in the processes of
the bank. The flowchart provided above has been classified into three major categories and the
categories mainly includes the review, evaluation and lastly the response (McKnight et al. 2017).
The feedbacks of the customers are included in the review section. The evaluation section mainly
includes the answers and the steps which are necessary after the feedback form the customer is
received. In the response section all the major processes and the functions of the banks are
included. There are necessary steps which are to be taken even if the bank is incapable of
responding in time (Ismail and King 2014).
Control Problems in the System: Commonwealth Bank of Australia
The major problem which is faced by the Commonwealth Bank of Australia are
responsible for the creation of different type of modifications in the shares of the bank (Peppard
and Ward 2016). The different aspects which are responsible for the growth of bank mainly
depends on the shareholders, clients and the marketing team of the commonwealth bank of
Australia. The problems in the system has been greatly affecting the reputation of the
Commonwealth bank of Australia.
Process Designing: Commonwealth Bank of Australia
The bank has been associated with including various types of clients and this has been
acting as an extremely important factor for all success of the bank. The involvement of the
clients with the Commonwealth bank would be greatly helping in the process of maintain the
willing power to work and the involvement of the employees of the organization. The process of
service is the basic need in this particular case (Nguyen, Nguyen and Bosch 2017). The

organization should have made some alteration in the structure of the organization after starting
its business in the year of 1911 and the alterations should have been associated with the use of
innovative trends in the market. The bank employees are not enough for the bulk quantity of the
clients who are the regular clients.
Customer Relationship Management
CRM or the Customer Relationship Management acts as one of the most important
feature for any organization especially for the bank. The Bank is associated with dealing with the
clients and it their responsibility to fulfill the entire requirement of the clients. Customer
Relationship Management is the characteristic, which mainly refers to the techniques and the
various strategies which is used by the bank in order to maintain a good relation with their clients
(Li Cui and Lu 2017). The CRM of Commonwealth Bank is not at all sufficient for the various
processes. They are not capable of maintaining a good relation with the customers. The bank
should put an extra focus upon the customer relationship management in order to make the
clients seek their interest in the bank.
Part 2
Accounting Software Packages
The reduction of the various type of problems and the challenges that are faced by the
Commonwealth bank of Australia is possible by introduction of the accounting software in the
business. Commonwealth bank of Australia is associated with the usage of the B2C or Business-
to-Customers software package (Kavanagh and Johnson 2017). The advantages of B2C software
are as follows:
 Flexibility

 Training not required.
 It reduces competition gap
 Eradication of Middlemen
 Cost Effective
Market Size
Figure 5: Margin of Commonwealth Bank shares
(Source: Commbank.com.au, 2018)
The figure which has been provided below is associated with showing the slight
degradation that has occurred in the shares of the market of Commonwealth Bank of Australia
(Pearlson, Saunders and Galletta 2016). In the previous years the shares was 283 but now the
shares has gone down to 262.

Market Leaders and Competitors
There are various competitors of Commonwealth Bank of Australia (Appelbaum et al.
2017). They are as follows:
 NAB Australia
 ANZ Australia
 Bank West
 Kiwi Bank New Zealand (Madhavaram and Hunt 2017)
 St. George Bank Australia
 ASB Bank
 Westpac New Zealand
Figure 6: Core Competitors of Commonwealth Bank.
(Source: Commbank.com.au, 2018)

The figure which has been provided below helps in describing the core and main
competitors of Commonwealth Bank. Seven banks are the core competitors of this particular
bank. The chart helps in understanding the fact that the market is still occupied by the
Commonwealth Bank of Australia despite of the various type of problems.
Conclusion
The above discussion helps in concluding to the fact that the Commonwealth Bank of
Australia is a leading banks in Australia and New Zealand. The bank has been associated with
facing various type of problems even after being listed as one of the top four bank of Australia.
Due to various problems the customers are losing their interest on the bank and besides this the
shares of the bank are also falling. Despite of all the problems the bank has been trying a lot with
different type of efforts to evolve out of the situation and they have thought of bringing new
ideologies and strategies in their business. The above literature review covers a basic discussion
on the structure, errors, inefficiencies and the process designing of Commonwealth Bank of
Australia. It also covers the market size, market leaders and competitors of the bank. Specific
recommendations are also provided to overcome the risks and challenges of the organization.

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