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Strategic Information System 4 Strategic Information System

   

Added on  2020-03-23

11 Pages2558 Words476 Views
Running Head: Strategic Information SystemStrategic InformationSystem

Strategic Information System 1According to the below conducted research, the fact has been observed that the process mergingof business activities with the strategic planning process develops the organizational structure.All such activities are processed in the organization so as to attain the organizational objective.The process also helps the organization in bringing changes in the organization according to thefluctuations present in the external environment. The mechanism of the strategic informationsystem was started by Amrollahi, Ghapanchi and Najaftorkaman, (2014) so that the companiescan attain a competitive edge in the market by making use of such techniques. The term strategicinformation system has also been mention in the outcomes of information technology system.Accounting information system assists the organization into initiate functions efficiently byusing technology. Further, the importance and use of this system in an organization are discussedin the below mentioned analysis.Organizational structureAccording to the research conducted by Greenblat, E, (2015), it has been stated that Wesfarmerscompany has been initiating their business practices according to the conglomerate structurewhich has been offered through association. This structure of the organization is initiated byadjoining two or more companies in private corporate business form. This amalgamation processbuilds up by allocating substances, including a private parent company and other holdingsubsidiaries of the same parent company. Although according to the organizational structure ofWesfarmers, the company explains that they focus on the expansion process. Further, thecompany also focuses on multi industry corporate structure which is regarded as a hierarchicalstructure of multination corporates (Ali, & Miller, 2017). The company Wesfarmers being asmart company placed itself in the correct target market; apart from that they also purchased thequality association by connecting costs with the output of the company. Thus, it shall be noticed

Strategic Information System 2that with the adoption of this organizational structure, the business entity is working efficientlyby decreasing risk and increasing their stake in the global market through partnering with variousfirms. So, in this way, the organization structure of the company is helping the company toachieve satisfaction (Carvalho, & Guerrini, 2017). Operation issueAs per the research executed by Treadgold, T, (2016) the facts that came into accounts is that thecompany is facing issues in their organizational system which is raising worry for the investorsas well. The earning of the company Wesfarmers was solely depending upon the retail businessprocess and majorly on products like food and alcohol division of Coles, due to which the otherproducts of the business process started losing their significance. Another issue which appearedin the organizational structure due to adopting the hierarchical structure is that, although the sizeof the company expanded with this effect the administration process became ineffective. As it isknown that to manage a large scale business, more efficiency is required by the management ofthe company also new technology shall also be implemented in the business to gain thecompetitive edge. But the previous business process was facing the issue in above mentionedcases. Apart from there were a few benefits of this business structure such as tax reduction,reduction in managerial activities etc. (Erazo, Arboleda, & Pino, 2017).System Acquisition MethodThe process of Enterprise Resource Planning (ERP) is an instrument which is coined as businessprocess management software. This process shall be used by the management of the Wesfarmersso that all the issues in the management of the company shall be resolved. The ERP system willhelp the company in increasing its efficiency of the corporate, as the process is made by

Strategic Information System 3combining different application and applying in the organization system. With this initiation ofthis ERP system in the organization will help the company to execute accuracy in the system andadopt effectiveness in the organizational culture (Garg, et. al., 2017). Further, this system shall be considered as the best suited for the working of the Wesfarmersbusiness process. Also, implementation of ERP will allow the company in processing theautomation process in numerical operations and functionalities will be achievable by thecompany. Also, the effectiveness of the back office management and technologicalimplementation will improve with the initiation of this process (González-Benito, Venturini, &González-Benito, 2017). (Flow chart)

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