Strategic Management and Atlassian's Information System Analysis

This report provides a comprehensive analysis of Atlassian's information system, examining its organizational structure, operational issues, and system acquisition methods, including the use of ERP systems. It delves into the structure's impact on daily operations, identifying control problems such as cyber security and data collection risks. The report further explores the development and implementation of accounting software packages like Jira and Confluence, their market position, and competitive advantages. It also highlights current gaps and challenges faced by users and offers recommendations for improvement, concluding with an overview of the sales procedure using system flowcharts. The report emphasizes the importance of data integration, resource management, and the need for dynamic software solutions in managing a large consumer base. It also discusses the significance of accounting information systems in enhancing productivity and securing financial data.

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STRATEGIC
MANAGEMENT
AND
INFORMATION SYSTEM
Contents

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INTRODUCTION.....................................................................................................................................0

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PART 1...................................................................................................................................................1
Organisational structure of the information system..........................................................................1
Operational issues due to such structure..........................................................................................1
System acquisition method................................................................................................................1
System Flowchart..............................................................................................................................1
Control problems in their system......................................................................................................1
PART 2...................................................................................................................................................1
Development and implementation of accounting software packages...............................................1
Their current market size...................................................................................................................1
Market leaders and the things that gives them competitive advantage............................................2
Present gaps or the challenges that is faced by the users.................................................................2
Recommendation..................................................................................................................................2
CONCLUSION.........................................................................................................................................2
REFERENCES..........................................................................................................................................2
INTRODUCTION
In Australia, technology has empowered firms to do their work in a better and smoother way.
There are large numbers of accounting software available in the market (Belfo and Trigo,
2013). All these are used by various companies in different industries. IT field has expanded

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a lot and the companies like Atlassian which is also the biggest Australia based IT firm have
developed many products related to software accounting systems. ERP systems are highly
beneficial method for system acquisition as it is helps in achieving of the goals and objectives
of the firm. This report shows the organisational structure of the information system used in
Atlassian as well as the problems that arise due to this structure. It also provides system
flowchart for the sales procedure. Control problems existing in system has been given. In the
other section of the report regarding the software accounting systems has been provided.
PART 1
Organisational structure of the information system
According to Kallunki, Laitinen and Silvola, (2011) it is essential for every firm to have an
organisational structure that supports its information requirements. Every member plays a
vital role in the organisational structure and hence their roles may be clearly defined.
Atlassian has incorporated Hierarchical organisational structure and at each level different
types of information gets generated. It is having more than 70000 consumers and more than
2300 workers works under it. It offers its services in the business of Project managers, It
officials, content managers as well as other developers. Due to huge number of nodes present
in the organisational structure, large amount of information gets generated. Information levels
are divided according to the structure present inside the firm. For example top level supports
strategy related planning process as well as decisions related to policy making. Below this
level of information resources, there is second level which helps in the process of tactical
planning and making of decisions for controlling management operations. Third level in the
information system architecture helps in managing and controlling operations which has to be
done on daily basis. At every organisational level needs of information is different so as to
make decisions related to work at that level.
Operational issues due to such structure
The structure they have adopted has a led to many types of problems related to daily
operations of the firms. Such issues may due to many structure based elements or say the
faults in the system. These operational problems reduce the work efficiency of the
organisation and hence ultimately destroying the productivity of the organisation (Toth,
(2012).

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Hall, (2012) believes that any complexity in the organisational structure leads to operational
issues. This is due to the fact that operational problems get generated because of errors that
are done at various levels. The larger the organisational structure, the more will be chance
that errors gets generated. It might arise because of internal and external factor related to its
business. Since so many information sources are linked with the firm hence very large
number of nodes gets generated. All these nodes act as a way through which information can
be breached. Managing data abstraction has become a common problem in such
organisational structure which is a dire need of the entire organisation including Atlassian.
Most of the information systems have rigid structure which increases the chances of data loss
as due to lack of flexibility data from all the sources cannot be collected. In case the data is of
strategic importance or gives the idea regarding the business environment, not accumulating
such data can be a loss to the firm.
Organisational structure that is too complex requires timely maintenance (Lim, 2013). Due to
structural complexity, the maintenance is generally done by IT professionals which are again
a problem for the company. Apart from this, it is also seen that information systems are not
easier to operate, this calls for the need to give training to all the employees according to the
need. A revision of outputs and inputs needs to be done so as to check that data does not
remain vague. It must be done by the help of IT staffs or by the suppliers of such systems.
System acquisition method
Bodnar and Hopwood, (2012) suggests that system acquisition method must be incorporated
within the firm as per their requirements. It also depends on the type of work they are
performing. Atlassian like companies performs many types of operations and hence requires
all the systems that are dynamic in nature and provide unique solution to the company.
Galliers and Leidner, (2014) states that commercial software are those that are those which is
made for selling of particular products and services of the firm. Such proprietary software has
been adopted by the firm for the purpose of record management like MS office, Office
writers etc. On the hand customised software is another type of system acquisition method
which is developed as per the need of the organisation. These systems are developed as per
the desire of the firms which also assists in eliminating external intrusion and alterations that
are made according to changing requirement of the company. ERP or Enterprise resource
planning is a system acquisition method that assists organisations in resource management
planning (Schorr, et al., 2013). It is also called as business process management software and

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hence permitting the organisation to utilise a system of integrated application for controlling
the operations in the business as well as the activities of the firm in a better way. Such
systems are capable of making forecast related to the demands of the firm products. This
plays a vital role in the sustainable utilisation of resources. Data integration is an essential
feature and is provided by these systems and hence large amount of data can be manipulated
on daily basis (Wagner, Moll and Newell, (2011).
Atlassion support, (2018) gives the idea regarding the fact that Atlassian has adopted ERP
systems as a system acquisition method. It is also because of the reason that ERP systems are
helpful in managing of the resources which is major challenge for the firm of such a large
scale. The Atlassian has to deal with such a large number of consumers hence they need to
have unique and dynamic software that is capable of aligning all their resources. Since a huge
numbers of customers are availing services at once hence these software are highly essential.
It also helps in smoothening of the operations in the business and has a trade processes that is
genuine. It eases the work process by streamlining the all the task and bringing collaboration
among different units. This is due to the reason that data gets filled in the centralised system.
It also improves mobility and reduces the operational cost.
System Flowchart
As per Atlassion, (2018) such flowcharts are generally a physical design technique that
indicates the operations and activities which is performed in the organisational system. This
flowchart indicates the process utilising which the Atlassian processes its business and sells
its products in the market worldwide. Taking use of the software applications along with the
system flowcharts can help in measuring the operations related to business as well as control
of sales. System flows chart plays a direct role in the designing of the training and
development program and the initiation of such programs can be done with the help of such
charts. On the other hand accurate accounting services as well as innovative services can be
provided with assistance of system flowchart. The flowchart of the sales procedures has been
highlighted below.

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Such type of flowcharts smoothen the work process and gives the way using which sales can
be enhanced. It is understood to be the part of sale that is started through the company.
Utilisation of system flowchart can help in identifying the errors in the revenue and sales
hence play a role in increasing it. It is done by providing accounting services to their large
number of consumers.
Control problems in their system
On the other hand Gullkvist and Jokipii, (2013) suggests that various types of control
problems exist in the system of any organisation. Since large numbers of controls are
available with the firm hence huge amount of problems also exist in the system. Most
common forms of control problems are Detective control, Corrective controls and Preventive
controls. Various types of controls are available at different levels of the firm. In the firm’s
operation, several types of risks get generated. Most common type of risk in the internal
controls is Frauds, Access, Mischief and Errors. Such problems exist even when internal
control shield is implemented at Atlassian. It is due to the reason that external forces finds the
weaknesses in the control system and then attacks it. Along with this some other control
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problems which is dealt by Atlassian is cyber security and data collection (Atlassion, 2018).
With the development of cloud based software and the increasing activity of hackers, the data
linked with the firms is always at a risk. Protection of data is crucial and hence various
techniques are applied. Because of increasing attacks by hackers, there is an increased
probability that data could leak to unauthorised personnel.
Christauskas and Miseviciene, (2012) believes that due to several reasons, probability that the
data present with the firm may get corrupted is higher as many a time hackers just attacks
with the intension of corrupting the data. Generally it is hard to identify such attacks and may
lead to improper information generation. It can be critical in the case of financial data for
example frauds related to financial statements. Any mismanagement can lead to financial
frauds to the users of Atlassian which could prove disastrous for the revenue and profits of
the organisation. On the other hand because of enhanced application complexity, the firm is
unable to eliminate the application related frauds.
PART 2
Development and implementation of accounting software packages
Cassidy, (2016) suggests that accounting software which are utilised by the firm is
categorised as an Accounting information system. It is commonly utilised in processing of
transactions as well as recording it whenever it is done different handle module. Adding to
this it can be stated that accounting software relies on the cost and complexity. It also
empowers firm to take difficult financial decisions especially in regards to the management
of expenses that is done on weekly basis. IT firms like Atlassian utilises accounting software
for gaining more revenue and returns, enhanced productivity as well as improved security to
the financial data.
They have developed accounting system for them and their requirements of the clients. Their
most common software accounting packages are Jira and Confluences. In the bug detection
and removal as well as identifying the flaws in the business process or project management,
Jira is highly beneficial. It is a tool that is developed for the agile teams who can use it as per
their project requirement as it is highly flexible in nature. It helps their consumers in scaling
up the tools that can give them idea regarding dynamic and fast changing work environment
(XebiaLabs, 2018). Their tools achieve appropriate balance between the standardisation and
client’s freedom. They provide all their tools as a package so as to improve the performance

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of the firm. Their major competitors in the market of Australia are Intuit Quickbook, Trello
etc.
Their current market size
This company is operational in more than 170 nations and it serving more than 70000 clients
in approximately all the industries (Atlassion, 2018). This got possible as they are trying to
make continuous innovation in their work process. Both their products helped them in having
control over larger part of the market. Recently Xero has made their mark in the industry but
still Atlassian is marked as a biggest partner firm of the organisation that are operational in
Australia. With their product expansion plan they might to able to capture larger part of the
market. Their market shares in major countries have been showcased in the table.
Country Market share
United states 40.83%
Switzerland 1.15%
China 1.15%
France 3.04%
Netherland 3.35%
Canada 4.04%
Australia 4.30%
U.K. 5.77%
Germany 22.06%
Market leaders and the things that gives them competitive advantage
Atlassion, (2018) suggests that so many competitors are present in the software accounting
package industry. Some of the large competitors are Intuit Quickbooks, Xero and myob.
Apart from this there are various others like VersionOne, Bugzilla, Axosoft, Github issues
etc. Some new competitors have taken their market share like Liferay, dotCMS, Adobe CQ,
Google search Appliances, Siteimprove etc. Xero is becoming the market leader in the
present time as it provides a software platform that is specifically designed for unified agile
teams and DevOps.
Atlassian’s organisational structure along with the product strategy distribution model gives
them competitive advantage over the other competitors in the market (JIRA Software, 2018).
For the project teams whether start-ups or established firms, their products are helpful for

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both. Product of their having attributes like highly adaptable, easier to take in use, designed
for team work, being versatile in nature, integrated and open etc. All these makes them better
than most of their competitor’s products. Some more traits of the model include being simple
and affordable, highly innovation driven, having organic nature as well as being scale
oriented and data driven. These traits help them in accessing the environment present and
hence making it suitable for the current business environment. This ultimately helps in
attracting huge number of potential clients towards their software packages.
Present gaps or the challenges that is faced by the users
Doar, (2011) suggests that there are severe gaps present in the system which also creates
many kinds of challenges for the clients of the firm. In order to achieve higher product sale
all these issues needs to be removed. Due to increasing hackers activities the risks are
increasing at much faster speed. It is essential that they provide safer environment to the
clients as hackers try to steal or corrupt the data for their personal use. Number of frauds have
also increased hence maintaining the higher standards of their products has become difficult.
Industry requirements are changing at much faster speed and hence more flexible software
are needed. A better data abstraction feature is required in the current business environment.
Recommendation
In the challenges and gaps that are present in front of the firm, it has become essential for
them to change their operational security measures (Soudani, (2012). This may include
improving their firewall system that is protected with the help of passwords or other
authentication software. Apart from this they also have to ensure that they have a greater
control over the software accounting systems. Their ERP systems have to be risk protected. It
must provide their clients with highly efficient network security infrastructure that could help
them in generating a strong system by which they can maximise their benefits.
CONCLUSION
From the above report a conclusion can be derived that various operational issues arise due to
the hierarchical organisational structure. A pyramidal information system has been installed
in Atlassian. They have taken use of ERP system as a system acquisition method. Its sales
flowchart smoothen its work process. There are many control problems exist in the system.
Xero Jira, Myob and Intit Quickbooks are the leaders in the market. Its product captures a

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larger part of the market in many countries. There are many gaps and challenges present in
the system which needs to eliminated through various tools.
REFERENCES
Atlassion support, (2018) Overview of all Atlassian products. [Online]. Available at:
https://confluence.atlassian.com/confeval/other-atlassian-evaluator-resources/overview-of-
all-atlassian-products. [Accessed on 10th May 2018]
Atlassion, (2018) Atlassion empower all industries and teams [Online]. Available at:
https://www.atlassian.com/customers?page=1&sortParam=date_created%20desc. [Accessed
on 10th May 2018]
Atlassion, (2018) Tool for teams, start-ups or enterprises. [Online] Available at:
https://www.atlassian.com/. [Accessed on 10th May 2018]
Belfo, F. and Trigo, A., (2013) Accounting information systems: Tradition and future
directions. Procedia Technology, 9, pp.536-546.
Bodnar, G.H. and Hopwood, W.S., (2012) Accounting information systems. Pearson Higher
Ed.
Cassidy, A., (2016) A practical guide to information systems strategic planning. CRC press.
Christauskas, C. and Miseviciene, R., (2012) Cloud–computing based accounting for small to
medium sized business. Engineering Economics, 23(1), pp.14-21.
Doar, M., (2011) Practical JIRA Administration: Using JIRA Effectively: Beyond the
Documentation. " O'Reilly Media, Inc.".
Galliers, R.D. and Leidner, D.E. eds., (2014) Strategic information management: challenges
and strategies in managing information systems. Routledge.
Gullkvist, B. and Jokipii, A., (2013) Perceived importance of red flags across fraud
types. Critical Perspectives on Accounting, 24(1), pp.44-61.
Hall, J.A., (2012) Accounting information systems. Cengage Learning.