An Analysis of Altium Corporation's Accounting Software System

This report provides a comprehensive analysis of Altium Corporation's accounting software system. It begins by outlining the company's organizational structure and the operational challenges it faces, including errors, networking issues, and inefficiencies. The report then delves into the system acquisition methods employed by Altium, discussing commercial software, custom software, and ERP systems. A detailed system flowchart is presented, followed by an examination of control problems, application complexity, and potential fraud issues. The second part of the report focuses on the development and adoption of accounting software packages, their benefits, and Altium's use of these packages to gain competitive advantages and maximize profitability. The report concludes with a discussion of challenges and suggestions for improvement in Altium's accounting software system.

Running head: Accounting software system
Accounting information system

Accounting software system
Table of Contents
Introduction.................................................................................................................................................3
Part 1...........................................................................................................................................................3
The Current organizational structure..........................................................................................................3
Operational issues or problems...................................................................................................................3
System acquisition method.........................................................................................................................4
Commercial software..................................................................................................................................5
Custom software.........................................................................................................................................5
ERP (Enterprise resource planning).............................................................................................................5
System flow chart........................................................................................................................................5
Control problem..........................................................................................................................................6
Application complexity and user experience...............................................................................................6
Part 2...........................................................................................................................................................7
Development and adoption of the accounting software packages.............................................................7
The current market size...............................................................................................................................8
Leaders in the market and competitive advantages....................................................................................8
Challenges and suggestions.........................................................................................................................8
Conclusion...................................................................................................................................................9
References...................................................................................................................................................9
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Accounting software system
Introduction
Accounting information system is an important part of the companies. An organization can attain
long term goals and objectives without initiating the accounting information system. Altium
Corporation has been chosen in the task to explain and outline the role of accounting information
system. It is public software organization established in 1985. The firm provides accounting
software packages and creates printed circuit boards. Furthermore, the paper explains the
operational issues and fraud that are raised in the organization. ERP system, custom software and
commercial software have been explained in the paper. It explains how system flow chart helps
in sales procedures and on the other hand, it outlines that how leaders support to gain
competitive advantages in the global market. Moreover, it describes the various issues that are
occurred in Altium Company. More detail of the task has been detailed below.
Part 1
The Current organizational structure
Altium limited is an Australian owned public software firm that renders PC based electronics
designer software for engineers and other clients who design printed circuit boards. The
company was incorporated in 1985 by Trotel system Pty Ltd in Tasmania having regional
headquarters in Australia, United States, China, and Japan. It shall be noted that the company
sells its products in these markets. Since 1985, the company have been developing, selling and
creating electronic design tools and techniques that help engineers and electronics designers
harness the latest devices and technologies, handle their projects across the world. Virtually
electronic product is modified and constructed with one or more printed circuit boards that act as
the carrier of all electronic components, FPGAs, microchips, embedded software and
electromechanical parts (Anastasova, Kassanos and Yang, 2017). The company is one of the first
providers of PCB design tools and methods across the world. Along with this, the firm works
with consumers to solve issues and problems in the marketplace. The company maintains unique
and favorable working culture at the workplace (Attium, 2018).
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Accounting software system
Operational issues or problems
The operational issues are being faced by Altium Company due to poor and inadequate
organizational structure. The operational issues include delays in task, inefficiency, errors and
costs issues that might affect the sustainability of the company adversely. Some of the
operational problems are stated below.
Errors in business: Due to high workload, many mistakes are done by the company in certain
situations. As a result, the firm will have to bear a great loss in the marketplace. It shall be
analyzed that errors occur in the workplace due to the out dated version of the accounting
software system. It also affects the goodwill and productivity of the firm. To handle this issue,
Altium should use a system which is able to handle and manage large amount of information
within the organization.
Networking issues: In today’s era, inflexible and ineffective networks and technology run
rampant in IT sector that could affect the sustainability and productivity of the firm. In addition,
changing, moving, breaking and replicating any part of the network and technology create issues
and barriers within the organization.
Inefficiency and teamwork issue: Inefficiency is occurred due to high workload and poor
employees. The employees are unable to focus on the business operation in Altium due to lack of
knowledge and experience. The managers and leaders should motivate the employees for
attaining the long term goals and reducing the obstacles and issues related to the firm. Conflicts
and obstacles between team members also occur at the workplace due to lack of motivation and
leadership. The firm needs to focus on the team members in order to handle and avert operational
issues. Teamwork plays a vital role in operational management. Therefore, teamwork and
cooperation should be maintained by the workers at the workplace to gain rivalry benefits
globally (Bosher, 2014).
System acquisition method
Some of the methods are used and implemented by Atlium to perform tasks and duties properly
and effectively. One of the significant benefits behind the using of software system is current
business status that could help to improve and enhance the goodwill and image in the
marketplace. It shall be observed that effective software system can be used to initiate the
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Accounting software system
business operations and activities successfully and smoothly (Hatley and Pirbhai, 2013). There
are three software system that can be used by the organization have been discussed below.
Commercial software
One of the significant and effective software used by Altium is commercial software. This type
of software is designed and created for sale to serve a commercial requirements and needs.
Basically, commercial software is called proprietary software but in some instances it may be
public domain software. Some of the examples of commercial software include Microsoft office,
Adobe photoshop, Microsoft windows, Dreamviewer and Corel Draw. Altium uses commercial
software to improve efficiency and maintain records within the organization. These types of
software can be modified at any time and automatic updates can be received in the firm (Fenton
and Bieman, 2014).
Custom software
The custom software may be defined as a solution is an organization or firm who is specialized
in customized software development and expansion. In other words, custom software is a
computer program or web application that is created for a specific company, department, purpose
and objective. Altium uses custom software application or web to meet the requirements of the
users (Davis, 2013). This software helps in maintaining the accounts of the other firm and users.
With the help of this software, the company has been able to protect the business from external
threats and barriers. In addition, this software helps in saving the hardware acquisition costs or
expenses. In this way, custom software can be good choice for users and engineers who uses web
application and software (Frabetti, 2014).
ERP (Enterprise resource planning)
This system is initiated by Altium Company to increase productivity and minimize the risks and
challenges of the market. This system is used by the firm to manage and handle the day to day
activities and operations like manufacturing, planning and procurement worldwide. It also helps
in maintaining sufficient inventory level at the workplace. ERP system enables clients to access
various types of software application and web for their better business activities and actions. It
shall be noted that ERP provides two tier structure to handle the backend and frontend
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procedures within the organization. Moreover, better integration of the software and business
process can be done by using ERP system within the organization (Matende and Ogao, 2013).
System flow chart
The system flow chart is initiated and used by the company to increase and enhance the demand
of the products and services. This system helps in analyzing and evaluating the business process
and handling the sales through application or web. Along with this, it is an essential part of the
sales process that is implemented by the company. It also helps in rendering effective and
dynamic accounting software services (Efe, 2016). The flow chart for Altium helps to increase
the number of customers and maximize the outcomes and results of the firm. It shall be stated
that system flow chart uses encompasses sensitive information (Nwankpa and Roumani, 2014).
The system flow chart of sales procedure has been stated below.
Control problem
If the company implement ERP system and custom system within the organization then there are
enormous control problem are occurred within the organization that cannot be controlled.
Firstly, the firm is unable to appoint right and talented employees who understand and know the
use of applications and web. As a result, they are unable to provide right and correct information
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Accounting software system
to the users in the market. Secondary, sophisticated software makes process and procedures
complex and difficult. On the other hand, data is moving in cloud at unparallel levels thus, it is
very complex to focus on the cloud based services. Staff retention is another issue in Altium
Company which affects the profitability and returns in the market. Due to employee retention
issues, the company is not able to retain potential and skilled labors. Furthermore, some technical
and operations issues are also existed in the organization. From the technological point of view,
risks and changes are associated with software and application therefore it affects the bargaining
behavior of the employees adversely. In addition, ineffective employees are unable to access the
software correctly. In this way, various issues are faced by the company (Hoque, 2018).
Application complexity and user experience
Some of the complexities which could have direct impact on the performance of the firm
including poor requirements, miscommunication, inadequate testing. Along with this, proper
training and development coaching is not provided by Altium related to software and application.
If ERP system access in a wrong manner then various complexities are faced by the firm (Chou
et al, 2014). Apart from this, the company is unable to maintain uneven load balance within the
organization. On the other hand, unexpected service agreement with clients also affects the
sustainability and image of the firm adversely (Albert and Tullis, 2013).
When a client accesses the software system, it is responsibility of the employees that he should
provide proper and right information to the user related to the software and web. Along with this,
system shall be designed in a proper manner and it should have ability of installing the various
updates whenever required. The system should provide some operational support to manage the
data and resolve these issues related to application (Albert and Tullis, 2013).
Possible fraud
Basically, fraud is biggest issue in Altium which is becoming a cause of uncertain loss and
damage. It also affects the efficiency of the worker as well as user also. The employees of
Altium perform business activities and operations therefore it is necessary to detect the fraud
which may occur in the system. The company needs to focus on the ERP system to detect fraud
and error. Along with this, system integration is done to reduce the fraud and errors within the
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organization. Fraud detection software plays a vital role to reduce fraud and error therefore; such
type of software shall be designed by the company (Martin and Rice, 2013).
Part 2
Development and adoption of the accounting software packages
Accounting packages are commonly known as accounting software that helps to carry out the
business activities and operations successfully and carefully. This is software which is used to
help accountants and the likes to do business transaction recording for trade and business.
Accounting software packages provide several benefits to the users (Schorr et al, 2013). The
accounting records are automatically updated thus account balances will always be up to date.
Along with this, records can be produced effectively that help management to monitor and
control the business. It shall be noted that better use of resources can be done by using effective
accounting software packages. This software also reduces employee time doing accounts and
eliminates the audit expenses as records are neat and up to date (Lim, 2013).
Altium Company uses accounting software packages to gain competitive advantages and
maximize the profitability in the international market. Furthermore, ERP system helps in
initiating the accounting software packages within the organization. By using accounting
software packages, the company is increasing its profit and revenue, it has gained revenue
around US$100M (FY2016). This software also helps in detecting and reducing fraud and errors
within the organization. If talks about online accounting software, it shall be stated that online
software is easy to learn and use in day to day business activities and operations. The firm can
use online accounting software to destroy the competitors worldwide (Ishizaka and Nemery,
2013).
The current market size
Altium is a key player in the PCB design software and greater electronics industry. It has made a
great position in this industry. Therefore, the company covered entire market to sell the product
and services. There are various competitors existed in the market such as Magma design
automation, Spring soft, Appriss and AWR Corporation that could affect the progress of the
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firm. The company makes unique strategies and plans to beat the competitors. The firm is
improving the products in today’s era to attract more clients in the market.
Leaders in the market and competitive advantages
Alium is led by a passionate, dedicated and highly experienced team with deep knowledge and
expertise in software and electronic design automation industry. Aram Mirkazemi has been
appointed as a chief executive officer. As CEO, he makes dynamic and unique strategies and
guides the team to perform tasks and duties effectively to flourish the business operations.
Samuel Weiss is non-executive chairman, he is responsible to make policies in the organization
to stay in the competitive market. Furthermore, Non executive officer is responsible for planning,
brand building and people management. Along with this, Sergey Kostinsky is chief technology
officer and head of engineering. Sergey is accountable for diving optimal performance and
productivity in all aspects of engineering efforts and lead an effective team of high caliber
engineers. As CTO, Sergey is also responsible for shaping and developing the technological
direction of Altium to underpin the organization’s bid for PCB market leadership (Obolensky,
2017).
Challenges and suggestions
Although accounting software, custom software and ERP system are being implemented by the
company to make business operations and activities easy but risks and challenges are associated
with these software. Some of the risks and challenges are stated below.
Weak reporting services: The accounting software are unable to provide proper and right
information, therefore it affects the sustainability of the company (Sultan, 2014).
Lack of security: Accounting software is unable to provide security to the users. As a result,
users are unable to rely on the software. It is one of the significant issues which is dealt by
Altium Corporation.
Lack of accuracy: It is also a big challenge for the company which could have direct impact on
the sale of the products. Most of the accounting software has become poor and older in terms of
technology and operations. It creates inaccuracy in the software.
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Technical support: Due to lack of poor and ineffective employees, the firm is unable to provide
rights and accurate information to the users. Furthermore, consultant team is not available 24
hours in the firm that affect the image and goodwill.
Lack of correctness: The accounting software and ERP system are unable to provide right and
accurate facts and information. The firm is also unable to install updates on daily basis. All these
issues are faced by Altium while conducting business operations and activities (Zogaj et al,
2014).
There are various suggestions given to manage and tackle these issues that have been discussed
below.
 Cloud based accounting software shall be used by the firm to run the business effectively
and successfully. Apart from this, the company should monitor on the ERP system to
reduce the issues related to software. Furthermore, multi function ERP must be initiated
by Altium to satisfy the customers.
 New and latest technology shall be used by Altium to design and create new software. It
will help to differentiate the company’s products from the competitors.
 Modification must be done in custom and commercial software. It will help to gain
rivalries benefits in the market.
 Training and development session shall be held by the organization to teach the
employees. It will help to explore and develop their knowledge and skills. Inefficiency
can be eliminated with the help of effective training and development.
Conclusion
On the above mentioned analysis, it can be concluded that accounting software plays a vital role
in each and every company to meet the desired goals and objectives. No company can survive
and grow in the market without using accounting information system within the organization.
Here is the discussion about Altium Company which provides accounting software services and
designs printed circuit boards. The firm uses unique and dynamic ERP system, commercial
software and custom software to stand out against the competitors in the market. It has been
analyzed that accounting software packages help to increase the number of customers in the
marketplace. To resolves the various issues such as operations, custom software issues and
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application issues, the company makes innovative strategies and policies within the organization.
In addition, effective and dynamic leaders are appointed by the organization to flourish the
business across the world.
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