HI5019 Strategic Information Systems: Software Packages in Australia

This literature review analyzes the strategic information systems employed by businesses in Australia, focusing on accounting software packages. It examines WiseTech Global as a case study, highlighting its use of a single platform solution for supply chain management. The review covers the organizational structure of WiseTech Global, potential operational problems, and likely system acquisition methods. It also presents a flowchart of sales procedures and identifies control problems within the system, including potential fraud. Furthermore, the review discusses the development and adoption of accounting software packages in Australia, the current market size, and the leaders in the market, such as MYOB and XERO, along with their competitive advantages. Challenges encountered by users of accounting software packages, particularly cloud-based solutions, are also addressed. The review concludes by emphasizing the importance of selecting appropriate accounting software based on business needs and security considerations.

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

2STRATEGIC INFORMATION SYSTEM
Introduction:
The report is prepared for analyzing the strategic information system of business by
appropriately identifying several types of software applications that are used by business based
in Australia. Various types of software have been illustrated and the analysis is done by selecting
the organization Wise Tech Global. Wise tech is a company that has employed a single platform
solution for enhancing the integration, productivity, communication and innovation of supply
chain. It has helped global companies in efficiently managing the movement of information and
goods since year 1994 and is based in Alexandria, Australia. Report is prepared for evaluating
the various software packages used by companies in Australia in terms of market size and
competitive advantage enjoyed by leading companies. Various products offered by company are
forwarding, cargo one wise, land transport, warehousing, accounting, enterprise capabilities, gps
tracking, scheduling and optimization (Wisetechglobal.com 2018). Moreover, report also
incorporates discussion on the challenges encountered by the accounting software packages. All
the advantages and disadvantages have been understood by placing importance on the selection
of relevant accounting software.
Part A:
Business firms use several accounting software packages and usage of such software is
determined by the requirement of business. Hence, such software assists in meeting the domestic
standard accounting needs for enhancing the accounting treatments. Accounting software is the
software application that helps in recording and processing of accounting transactions such as

3STRATEGIC INFORMATION SYSTEM
account receivable, accounts payable, general ledger and payroll using functional modules
(DeLone et al. 2016). Such software can be accessed by uses using the online platform.
Current structure of organization:
WiseTech Global was established in year and has its operation based in Sydney, Australia
and helps logistics companies by providing technological innovation. In order to deliver
solutions to customers and making considerable contributions to staff members, customers,
shareholders in the logistics industry by using latest software accounting tools (Contractor et al.
2016). Cultural foundation is the core value of companies that have high priorities, deeply held
beliefs and fundamental forces driving the action. Company makes use of hardware and software
as an innovator for creating new ways of living and working along with solving problems. All
the products are produced by organization using the best hardware platform and latest software
tools and pride is taken for delivering solutions making considerable differences to partners,
customers, logistic industry and shareholders. Business is able to deliver industry leading
solutions with the help of skill accumulation, individual skills and shared values. They are rapid
expanding, profitable and mature business focusing on great products. Intellectual property of
business helps in driving and creating brand along with serving the market and customers.

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Figure: Hierarchical Structure adopted by WiseTech Global
(Source: Lim and Perrin 2014)
Operational problems pertaining to such organizational structure:
It can be inferred from the analysis of the organizational structure of Wise tech Global
that they face several organizational problems. Such problems are attributable to poor
communication in case of horizontal communication. There can be problems in solving the needs
of customers and the system being bureaucratic sometimes. Department is capable of taking
appropriate decisions using the organizational structure for getting benefits as a whole (Grant et
al. 2015).
Likely acquisition system:
Using such software, businesses are able to track the income, cost as well as profit
figures. In order to perform the additional function along with the simple accounting software

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functioning, using software such as MYOB proves very useful to organization. Initially,
development of MYOB incorporated many accounting characteristics and assist business
enterprise in gaining real time view of business financial operations by arriving at feasible
decisions. For small business enterprise operating across Australia, an affordable cloud
accounting software is rendered by this particular accounting software.
Preparation and description of flowchart of sales procedures of Wise Tech Global
Company:

6
Warehouse Department
Warehouse receive two
copies customer order
Shipping department
receives sales order
Warehouse department helps in
filling sales order
Filling and reviewing of sales
order
Returning of sales order by
credit department
Sales department
Receiving sales by
customer order
Clerk helps in preparing
sales order
Three copies are received
where clerks help in
reviewing customer order
Shipping Department
Shipping notes
preparation upon arrival
of goods
Sales order copy is sent to
customers upon receiving
the same
Billing department receives
shipping notes
Billing clerk
helps in updating
of customer
receivable
account.
STRATEGIC INFORMATION SYSTEM

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Identification of control problems in the system:
The current accounting system of WiseTech Global has been identified with the existence
of some frauds. One of the main issues faced by organization across all industries and location is
involvement of employees in conducting fraud activities. Employees are involved in committing
several types of fraud related to accounting system functioning. It has been ascertained from
research conducted that employee fraud across the typical organization result in loss of at least
5% of the annual revenue generated. It is very essential on part of organization to detect and
prevent employee involvement in fraud for generating reliable accounting results. It is required
by Wise Tech Global to have proper plan for preventing fraud and such plan should incorporate
implementation of accounting software such as MYOB for reduction of fraud (Mcauliffe et al.
2017).
Part B
Accounting software packages development:
Adoption of accounting software packages in Australia have leapt to new heights in year
2014 and the market of cloud accounting are developing with the users embracing the
immeasurable benefits. It has been found from research that the small and medium enterprise of
Australia have gained considerable advantage with the adoption of cloud accounting software.
14% of small business in Australia is taking the advantage of such software in managing the
accounts (Venkatraman and Fahd 2016). Accounting software implementation is common
among the small and medium enterprises. However, such enterprises also face some challenges
due to the implementation of such software’s.

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The accounting software packages have been developing in the present scenario where
payment is done by business through interpretation exhausted invoice prints. Software
accounting helps in automatic generation of receipts. It is required by organization to develop
accounting software that helps in addressing the concerns of business and delivering high
standard business solutions. Furthermore, huge development is involved for gaining proper
security solutions as well as software solutions that helps in securing data and making it
dependable at the same time. Therefore, for utilizing the software accounting packages, software
developers should make the packaging easier and dispensed in an effective way by involving
more clients. In such scenarios, businesses that are based in Australia make proper utilization of
accounting software for development and growth of business. Furthermore, several firms have
adopted and acquired application of cloud software. It has been found that business mainly adopt
such accounting software that are effective and not expensive at the same time. On contrary to
this, some of the clients have criticized the security concerns and its alignment with
technological developments (Cassidy 2016). In such scenario, the development and design of
software was being evaluated by the users of software accounting packages in Australia.
Small enterprise exceptionally votes for the MYOB software as depicted from the report
for year 2015. The reason for such exce4ption voting is that there is several book keeping data
structure that is incorporated in this particular accounting software. Furthermore, the design of
MYOB software is done as a mechanism of accounting that is time saving and easy to utilize as
it helps organization in keeping financial procedures in line with reports of financial budgetary.
The possibility of MYOB Corporation helps in empowering the progression of MYOB software
as in this particular area, the software merges with trading concepts (Hutchins 2016).

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Therefore, employment of accounting software by organization will help in item
execution enhancement that is utilized by Australian organization.
Present market scenario of software:
MYOB software currently captures 60% of the total market share as it is the largest
service provider of business management and accounting software in Australia. Online solutions
are chosen by clear majority of small and medium enterprises with total new registrations of
MYOB software up to 81%. The uploading programs offered by the software are utilized by
more than 20% of the customers of business enterprises (Kennedy et al. 2015).
Identification of leaders in the market:
The small as well as medium enterprises based in Australia prefer to use the accounting
software such as MYOB. In countries such as Australia, small and medium enterprises have
become the leaders and they are relying on using accounting software for creating environment
that helps in seamless operations of business. The market share of MYOB is pressurized by the
growing preference of cloud accounting software. MYOB employment helps organization in
gaining competitive advantage over other players in the market (Mageto 2017).
The strong first mover and significantly greater competition in the cloud competition is
provided by the accounting software such as XERO. It is accounting software that is leader in
issuing of accounting software packages and captures huge market share by the firms operating
in Australia. Any new entrants in the market of accounting software packages are threatened by
strong brand recognition and market position of XERO. The online market share is being
grabbed by a major churn event of one off desktop to cloud migration with XERO being the

10STRATEGIC INFORMATION SYSTEM
largest beneficiary in this regard. Accountant might be required to support multiple platforms
with this particular accounting software launching its own management products form practice
(Kaefer et al. 2015). However, for the time being in the land grab for users of cloud accounting,
the key differentiator is the leadership practice market of MYOB. Since, market have shifted to
online platform direct sales of such software have become more prominent. The market growth
rate of accounting software is accelerated by shift in the cloud computing. For the period of
2013-2015, the revenue of three largest players in the domestic market of Australia that is
Reckon, MYOB and XERO have increased by over 40% (Ramli 2015).
MYOB is remaining somewhere behind XERO despite the fact that later is first mover
advantage in providing online solutions. This is so because XERO is able successfully convert
the desktop users.
Cloud market share:
(Source: Sithole 2015)

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Employment of MYOPB software by business organization helps in gaining competitive
advantage over their competitors. In order for WiseTech Global top gain competitive edge over
their competitors in terms of software solutions, it is recommended to employ software such as
MYOB as they facilitate the enterprise of user interface by providing both online and offline
solutions (Tanaka and Sithole 2015). Therefore, most of small enterprise located in Australia has
been inspired by the employment of MYOB software. Organizations are required to consider
some of the factors before selecting cloud based accounting solutions such as data, annual fees,
integration, mobile and multi platform and bank feeds. The cloud accounting systems are
becoming increasingly connected that comes with variety of features such as business
intelligence, e commerce, point of sales and debt chasing. The software market of Australia is
facing increasing competition and the market is dominated by the biggest players such as Intuit,
XERO and MYOB.
Since the features offered by such software’s are almost similar, there exists stiff
competition in the market. In addition to this, the competitions among such software are based
on price (Tanaka and Sithole 2015). Therefore, it is required by company to select the software’s
that is based on factors such as business nature, scale of operations and banking requirements. It
can be inferred from the discussion that a remarkable history of development is experienced by
software market in Australia. Development of cloud based software is faced with the challenges
of security threat. Organization can make use of some strategies for dealing with the threats
associated with such software implementation such as information centric security, authentic
measures and predicate cryptography.

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Challenges encountered by the users of accounting software packages:
The leading software accounting packages is mainly based on cloud computing software
and WiseTech Global would face difficulty in shifting to cloud based. One of the most critical
elements of the software solutions opted by WiseTech global is consideration of security of
several accounting records when seeking accounting software solutions. Excessive level of
security would be required by the company as their online content is prone to threat, fraud and
hacking. Moreover, it needs to be taken into consideration that accounting software such as
XERO and MYOB is subjected of security concerns. Employment of such software packages
would require organization to provide training to their accounting staffs involved in performing
practical actions (Grant et al., 2015). Since the company such as WiseTech Global does not have
well qualified personnel to handle such cloud based software, it would be difficult on their part
to reap the benefits provided by the accounting software.
Pricing of software- Additional cost are also consumed in terms of technical support and
back up data for using such software’s. It contributes to increasing cost incurred by organization
while implementing the software’s.
Security threat- Nevertheless, such software increase the risk of malware, phishing and
other and business information confidentiality might also be at risk. There can be temporary
slowdown of operations of business due to the implementation of accounting software (Husin
and Ibrahim 2014).
Use of consultants- Accounting software differs considerably from one program to
another and it becomes hard for consultants to become familiar with the wide arrays of program
that is available. It is required by business to be very selective when selecting consultants for the