Strategic Information System for Xero: Organizational Structure, Operational Problems, and Accounting Software Packages

Running head: Strategic information system
Strategic information system

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Part 1...........................................................................................................................................................3
The current Organizational structure...........................................................................................................3
Operational problem....................................................................................................................................4
System acquisition method..........................................................................................................................5
Custom software......................................................................................................................................5
ERP (Enterprise resource planning).........................................................................................................5
Commercial software...............................................................................................................................6
System flow chart of the sales procedures..................................................................................................6
Controls problems in the system..................................................................................................................7
System and application issue...................................................................................................................8
Consumer experience and possible fraud.................................................................................................8
Part 2...........................................................................................................................................................9
Adoption and development of the accounting software packages................................................................9
The current market size...............................................................................................................................9
Leaders in the global market and what gives them the rivalry advantage..................................................10
Challenges.................................................................................................................................................10
Solutions or recommendations..................................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................13
Bibliography...............................................................................................................................................15
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Strategic information system
Introduction
Strategic information system provides a path to carry out the business activities and
operations successfully. The main aim of this paper is to provide a brief outline about the
strategic information system that is adopted by Xero. Xero company has been chosen in the
paper as it is a software company that provides accounting services to its clients. In the first
phase, the paper explains the organizational structure, operational problem, system acquisition
method, and system flowchart and control problems and in the second phase, it depicts the
challenges and issues that are faced by the company and it also explains that how accounting
system helps the firm to gain rivalry benefits across the world. More detail of the task has been
discussed below.
Part 1
The current Organizational structure
Xero is a New Zealand based software organization that develops and builds cloud based
accounting for small and medium sized businesses in the world. The offices of the company are
situated in Australia, New Zealand, the United States, Singapore and the United Kingdom (Xero,
2017). It is listed on both the New Zealand exchange and Australian exchange. The company’s
product based on the different software and sold by subscription in the market. The products of
the firm are used in more than 180 countries. There are approx 1853 employees employed in the
firm. Along with this, effective and dynamic strategies are used by the firm to provide various
types of software to the customers across the world (Xero, 2017). The firm entered the United
Kingdom and Australian market in 2008. The organizational structure of the company has been
stated below.
Organizational structure of Xero
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Strategic information system
Operational problem
Xero operates and manages its business activities and operations worldwide so as there
are enormous problems faced by the company while conducting business activities and
operations effectively and successfully. Furthermore, business support service issue is ongoing in
the company therefore; the firm is struggling in today’s era from many ways. The operational
issues include the following:
Inefficiency issue: One of the significant issues in operation management is inefficiency that
affects the growth and success of the firm. Due to poor labor force, efficiency issues occur within
the organization. This affects the profitability and progress of the firm adversely.
Teamwork issues: Teamwork plays a vital role in each and every company for attaining the
goals and objectives. Teamwork issues and problems affect the sustainability of the company
negatively. To attain long term goals and objectives, Xero needs to focus on the teamwork by
maintaining coordination and cooperation in the organization. In this way, the company has been
able to minimize the operational issues within the organization. Furthermore, it also helps in
making a good and dynamic position in the global market.
Conflicts and errors in business operations: Xero makes mistakes in calculation, tools and
techniques that could affect the progress of the firm. It leads to loss and damage within the
organization. Along with this, the outmoded software creates various mistakes and errors in the
workplace. In addition, it also affects long term mission and vision of the firm. It shall be noted
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