Strategic Information System: Amcor Limited Accounting Software Report

This report provides a comprehensive analysis of Amcor Limited's strategic information system, focusing on its accounting software implementation. It begins with an overview of Amcor's organizational structure, highlighting its hierarchical nature and potential operational problems. The report then details the company's system acquisition procedure, specifically mentioning the use of ERP software like SAP CRM, SCM, and ERP. A system flowchart illustrates the sales procedure, followed by a discussion of control problems and potential fraud risks within the system. The second part of the report delves into the development and adoption of accounting software packages, including Xero, MYOB, and Quickbooks, with a specific focus on Reval, which Amcor utilizes. It analyzes the current market size of accounting software packages in Australia, identifies market leaders like Silgan Holdings Inc. and Georgia Pacific, and discusses the competitive advantages. The report also outlines existing challenges encountered by users of accounting software, categorized into operational, technical, and security challenges. Finally, it offers recommendations, including the use of SDLC for implementation and enhanced security measures, to improve Amcor's accounting software system.

Running head: STRATEGIC INFORMATION SYSTEM
Organization using Accounting Software in Australia
Name of the Student
Name of the University
Author’s note

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Table of Contents
Introduction......................................................................................................................................3
1. Part One.......................................................................................................................................3
1.1 Organizational Structure of Amcor Limited..........................................................................3
1.2 Operational problems faced by Amcor due to its Structure..................................................6
1.3 System Acquisition Procedure of Amcor Limited.................................................................6
1.4 System Flowchart of the Sales Procedure.............................................................................6
1.5 Control Problems and Different Types of Frauds that are Possible in this System...............8
2. Part 2............................................................................................................................................8
2.1 Development and Adoption of the Accounting Software Packages......................................8
2.1 Market Size of the Current Accounting Software Packages.................................................9
2.2 Leaders in the Market and Competitive Advantage............................................................10
2.3 Existing Challenges Encountered by Users of Accounting Software.................................10
3. Recommendations......................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
A company named Amcor Limited is a well known manufacturing company. They are
involved in the packaging of rigid plastics and in the production of flexible. This company is
based in Australia. Their main aim is packaging. They have taken responsibility in the area of
food, beverages, medicine protection and also protection of personal products. The headquarters
of the company is located in Victoria. This company was founded in the year 1860. Its former
name was Australian Paper Manufacturers. This was renamed in 1986 as Amcor Limited. It is
the largest producer of PET bottles across the world.
This report talks about the implementation process of accounting software of Amcor
Limited. This report talks about the organizational structure of the company as well as the
problems in the present structure. It talks about the software acquisition method of the company.
It explains the sales procedure of the company. This report also describes about the accounting
software that are used by the company. It also describes about the present market size of the
company, existing challenges. This report also provides recommendations to overcome the
loopholes in the existing accounting software.
1. Part One
1.1 Organizational Structure of Amcor Limited
Amcor Limited is a company based in Australia. It is one of the best leaders of the
manufacturing company (Amcor.com 2017). The organizational structure of this company has
several levels. It is hierarchical in nature. Managing director is present at the highest level of the
company. The following levels have directors of all the departments. The departments present

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are finance, marketing, human resource as well as operations. Following this level is the different
departmental managers. All the departments include marketing, finance, operations and human
resource. The team leaders come after the managers. Organization’s lowest level has the team
members of different teams like sales, marketing, production as well as the account assistants.
The main focus of the strong management team is innovation.
Figure 1: Organizational Structure
(Source: Lunenburg 2012)
The above diagram is a general structure of the organization (Fan, Wong and Zhang,
2013). The organizational structure is given below in details.

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Figure 2: Organizational Structure
(Source: Sapinsider.wispubs.com 2017)
The above diagram depicts the hierarchical levels present in the organization.
Hierarchical structure has an organized methodology and nature. This structure promotes
stability in the company (Sapinsider.wispubs.com 2017). The roles of the employees are clear
enough. All the employees know their super ordinate. They know their reporting heads. Fixed
policies and rules are implemented in a hierarchical structure. This makes the organization strong
and they are able to achieve goals in a proper manner. This structure clarifies the employees
about their responsibilities.

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1.2 Operational problems faced by Amcor due to its Structure
Hierarchical structure of the company has several issues. The flexibility of the company
is hampered. There is absence of flexible working mechanism (CorporateSite 2017). Long term
aims and goals of the company cannot be always planned in a proper manner because there is no
guarantee about the future events. This type of planning might fail to capture profit in future.
There is no scope for creativity in the present structure because it is tall structure and it has levels
that are to be followed. There is lack in a two way communication process (Tran and Tian 2013).
The problems faced in the structure are not much visible in supply chain of the company (Singh
2013). The innovation process is hampered as the employees are not able o participate in any
type of decision making process.
1.3 System Acquisition Procedure of Amcor Limited
The software used by Amcor Limited is Enterprise Resource Planning or ERP software.
Names of the software are SAP CRM 7.0, SAP SCM 5.0 as well as SAP ERP 6.0. The
performance of the company is improved by using these solutions. Processing costs are reduced.
Time taken to carry out any business process is also low. There is increase in the cash flow level.
Company revenue is increased. Stock wastage is less. Cost of freight is reduced by using this
software. The functionality of SAP is little. The implementation of ERP is successful because it
is implemented with the use of MS word or Microsoft Office Word. ERP software has proved to
be extremely helpful for the company.
1.4 System Flowchart of the Sales Procedure
The system flowchart is the illustration of the sales procedure of an organization. The less
development and the insufficiency are the major reasons for the downfall of the manufacturing
company (Gunasekaran and Spalanzani 2012). The procedure of the sales starts from recognizing

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the necessities, the necessary activities and the sales teams. The first step covers the customers.
When a customer places an order, the manufacturer will see if the order placed can be executed
or not. He will check if the good is available and feasible for selling or not. The procedures are
repetitive and will repeat themselves until they are completely executed (Hosgor, 2015). The
flowchart given helps to understand the entire process where at first the consumer places an
order and after passing through several steps is finally delivered to the customer.
Figure 3: System Flowchart of the Sales Procedure
(Source: Ingram et al. 2012)

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1.5 Control Problems and Different Types of Frauds that are Possible in this System
Various issues are present in the ERP system of the organization. The major drawback is
the price. It is not at all cost effective and is difficult to implement and maintain the system. The
other disadvantage is the complexity of the system. Moreover, many experts are needed for the
software and training is needed for them (Christauskas and Miseviciene 2012). Any type of
misleading can cause the loss of data. Delay is not at all acceptable for the software as it lacks
security and standard policies. Various frauds can undertake in the system. Vendors cannot be
trusted all the time and this is the reason for the problems. Another important issue can be the
coding of the distribution of invoice in a wrong account.
2. Part 2
2.1 Development and Adoption of the Accounting Software Packages
The accounting software packages are majorly classified into Xero, Myob, and
Quickbooks and it would imply the effective flow of the information processing. These software
packages are being developed and formed for being sued by most of the accounting software
using organizations. Organizations of various sizes like large scale, medium scale, and small
scale have been using these accounting software packages for forming the effective flow of
information. As stated in Reval (2017) the organization of Amcor Limited has been using the
Reval Accounting Software Package. The accounting software package would be implied for
being developed in the organization. The influence of the effective and smart processing of the
organization would tend to improve the system development and processing. The service
platform of the accounting software system would tend to involve the management of the risk
and system integration of the risk of accounting application. Amcor.com 2017 has shown that

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over 650 other companies have been using the Reval Accounting Software Packages. The
improvement of the processes would involve the development of the effective processing and it
would tend to inform the subsequent development of the effective processing and development.
2.1 Market Size of the Current Accounting Software Packages
It is very important for analysis of the current market size of the Amcor Limited for
Australia. The share of the market size of Amcor Limited can be shown from the diagram shown
below and it has shown rapid increase and decrease of the performance. However, the market
size would show the incredible improvement of the market size from July 2017 (Amcor.com
2017). The present price of the shares of the organization is considerably low, although the
performance of the company is considerable high.
Figure 4: Market Size of Amcor Ltd.
(Source: Amcor.com 2017)

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2.2 Leaders in the Market and Competitive Advantage
Organizations like Silgan Holdings Inc. and Georgia Pacific along with Amcor
Limited are the leaders of the current accounting software packages of Australia. The
organization had been limited to the improvement of the supplier eccentric and development
factor. The organization of Silgan Holdings is considered as the leading supplier of packaging
goods and its products in the organization. The annual sales of the organization had seen the
peak of 3.6 billion dollars for the year of 2016 (Silganholdings.com 2017). The annual sales and
the generation of the revenue has seen the advent of the improvement and development of the
organization. Amcor has been an facing apt rivalry from Silgan Holdings Inc. for development of
the existing operations for forming the effective flow of system integration and its combine
development methods. The Georgia Pacific would be another major factor for the development
of the effective operations. The organization is a leading manufacturer of timber paper and the
organization had formed the improvement of the operations since the deployment of the
accounting software packages. The annual revenue of the organization had been aimed to be
about 9.5 billion dollars ().The annual sales and the generation of the revenue has seen the advent
of the improvement and development of the organization.
2.3 Existing Challenges Encountered by Users of Accounting Software
The existing challenges of the Accounting Software Package for the Amcor Limited can
be classified into the operational challenges, technical challenges and security challenges. These
challenges are explained below,
Operational Challenges: The operational challenges would form the issues in
integration the implication of the information processing (Christauskas and Miseviciene 2012).
The operational challenges of using Reval are existing system unable to form the development of

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the Accounting Software Package inclusion. The effective challenge of the operations would
tend to limit the scope of operations for system integration in Amcor.
Technical Challenges: The technical challenges of the accounting software package
include the system development issues. Lack of technology and the system integration would
tend to form the development issues in the system implication of the operation (Fan, Wong and
Zhang 2013). The technical challenges of the Reval include system development errors and
technical operation errors.
Security Challenges: The security challenges of the Amcor for the implication of the
Reval accounting software packages (Fan, Wong and Zhang 2013). The implication of the
accounting software package would tend to imply the issues of security for the organization. The
data theft and loss are the major issues of security for the Amcor.
3. Recommendations
Some recommendations for the implication of the Reval include use of SDLC for
implementation and Security measures and they have been explained below,
Use of SDLC for implementation: Amcor should use the SDLC or system development
life cycle for the implementation of the Reval Accounting Software Package. The SDLC
involves the development of the integrated operations for the development of the system
integrated cycle for the implementation model. The SDLC consists of some improvement for
forming the operational processing of the organization and aligning it to the Accounting
Software Package.

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Security measures: The use of IDS/IPS is very important for forming the alignment of
the operations in the organization. The security by using encryption and authentication would
tend to involve the development of the security for the organization of Amcor in implementing
the Accounting Software Package. The security would tend to form the effective processing of
the accounting data along with the improvement of the confidentiality of operations.
Conclusion
It can be concluded from the assignment that accounting software packages are very
helpful for the integration of the operations and development of the effective processing of the
information. The accounting software packages had been majorly classified into Xero, Myob,
and Quickbooks and they were developed and formed for being used by most of the accounting
software using organizations. The improvement of the processes had involved the development
of the effective processing and it would tend to inform the subsequent development of the
effective processing and development. The existing challenges of the Accounting Software
Package for the Amcor Limited were classified into the operational challenges, technical
challenges and security challenges. The analysis had shown that Reval should use of SDLC for
implementation and Security measures such as IDS/IPS, encryption and authentication for
ensuring the smart development of the Reval in Amcor.

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