Strategic Information System Analysis and Acquisition for BHP Billiton

This report provides a comprehensive analysis of BHP Billiton's strategic information systems. It begins with an overview of the company's organizational structure, followed by an examination of operational issues, including lack of strategic management, tax issues, efficiency problems, and technology challenges. The report then delves into system acquisition methods, such as commercial software, custom software, and ERP systems, along with a system flow chart. Control problems within the system and potential fraud risks are also discussed. Part 2 explores the development and adoption of accounting software packages, market size, and market leaders, along with their competitive advantages. The report concludes with current challenges and recommendations for BHP Billiton, providing a detailed understanding of the company's information systems and their impact on its operations and market position.

Running head: Strategic information system
Strategic information system

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
Part 1...........................................................................................................................................................3
The current organizational structure of BHP Billiton..................................................................................3
Operational issues in BHP Billiton..............................................................................................................4
System acquisition method..........................................................................................................................4
System flow chart........................................................................................................................................6
Control problems in the system and what sorts of fraud are possible in this system....................................6
Part 2...........................................................................................................................................................7
Development and adoption of accounting software packages......................................................................7
The current market size...............................................................................................................................8
Leaders in the market and what gives them competitive advantage............................................................9
Current challenges and recommendations...................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Introduction
The paper illustrates and explains the several types of information about the accounting software,
ERP system, commercial software and custom software. BHP Billiton has been selected in the
task to outline the significance of the accounting software packages and ERP system.
Furthermore, the paper explains that how BHP Billiton faces various challenges and issues
related operations. Some strategies to address the fraud and errors have been explained in the
task. It also provides a brief overview about the leaders of Australia that are engaging in using
accounting software packages and ERP system. More information of the task have been
discussed below.
Part 1
The current organizational structure of BHP Billiton
BHP Billiton is a trading entity of BHP Billiton plc and BHP Billiton limited. It is an anglo
Australian multinational metal, mining and petroleum company having headquartered is located
in Melbourne, Australia. The company was incorporated in 1885 in Australia. The leaders of
BHP Billiton encourage and motivate the workers to develop and enhance the talent and skills in
the global market. It is one of the growing and leading resource companies. The products of the
company are sold worldwide with sales and marketing led through Houston, United states and
Singapore. Effective MIS and operational model are used by the organization to attract large
number of consumers (BHP Billiton, 2018)Andrew Stewart Mackenzie is the chief executive
officer of the organization. Ken Mac Kenzie has been appointed as director in the company. The
board committee also includes chairman of the nomination and governance committee and
members of the sustainability committee. Arnoud Balhuizen is chief commercial officer in BHP
Billiton. He plays various roles in the organization in order to attain maximum outputs and
revenue. Geoff Healy has been appointed as a chief external affairs officer in the firm.Apart from
this, Laura Tyler is the chief of staff and Athalie Williams is the chief people officer (BHP,
2018)
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Operational issues in BHP Billiton
Due to poor organizational structure, wide range of operational problems are faced and dealt by
BHP Billiton in the workplace. Some of the important operational problems are discussed below.
Lack of strategic management: It has been stated by Kemp (2009) where he argued that
strategic management is the biggest issues in BHP Billiton. Due to poor leadership team, the
company is failed to make unique and effective plans and policies for attaining competitive
advantages in the global market (Kemp, 2010).
Tax issues: It is one of the significant issues that being faced by BHP Billiton while
implementing the business activities at international level. The company is unable to control on
the prices of the commodity however the organization can control its tax affairs. As a result, the
firm has failed to live up the desires and expectations (BHP, 2018).
Efficiency issues: Due to lack of efficiency and effectiveness, the employees are failed for
performing roles and responsibilities within the organization. As a result, it affects the financial
image and goodwill of BHP Billiton adversely in the international market.
Technology issue: Due to competition, BHP Billiton is unable to use latest technology and
resources within the organization. Furthermore, it is noted that leadership is one of the major
issues in the organization that affect the goodwill in the marketplace. Due to lack of knowledge
and skills, leaders are failed to provide training and development coaching to the workers. Thus,
it is the biggest challenge for BHP Billiton Corporation. It also affects the working capacity of
the employees adversely (BHP Billiton, 2018).
System acquisition method
Various acquisition methods and tools are initiated and used by BHP Billiton to carry out the day
to day business activities and operations. Some of the system acquisition methods include
commercial software, custom software and enterprise resource planning. Commercial software is
computer software that is designed and created for the sale and some other commercial purpose.
Customization can be possible in commercial software (Jaeger et al, 2011). This software is
designed to fulfill the special demand of the clients and users. This software is far less
susceptible to hackers. On the other hand, custom software is also an effective software that used
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by BHP Billiton in the workplace. Custom software is software that is designed and created for
some specific organization and users. It helps in fulfilling the specific needs, requirements and
expectations of the consumers and clients. This software also protects the business from external
threats and challenges. The custom software also helps in saving the hardware acquisition costs
and expenses. It has been noted that custom software can be scaled and changed according to the
changing needs and requirements of the organization and clients (Jaeger et al, 2011).
However, BHP Billiton uses ERP system to manage and handle its operations and activities
effectively and hassle free manner. ERP system may be defined as a process by which an
organization integrates and handles the significant part of the actions and operations. The
integration areas of ERP system include inventory, sales, purchasing, planning, marketing,
finance and human resources. ERP system is used by the company to provide accurate results
and reduce the errors and mistakes within the organization. ERP is becoming a higher priority as
mining executives find themselves handling with enormous wildcards such as commodity prices,
engineering professionals, shortage of skilled labor and association and regulatory diversity. The
enterprise resource planning permits each department to utilize its own reporting measures. The
ERP system transforms data bidirectionally to the standard business reporting. By using ERP
system, the organization has been able to deliver products and services to the consumers quickly.
In this way, enterprise resource planning plays a vital role in BHP Billiton to attract and retain
more users and clients in the marketplace (Batista, 2010).
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System flow chart
(Source: https://www.smartdraw.com/flowchart/flowchart-types.htm)
The system flow chart is used by BHP Billiton to map out new and innovative projects. This
flow chart flow chart is a part of sales procedure to implement the business actions and
operations. With the help of system flow chart, BHP Billiton is enable to maximize and enhance
the revenue and returns in the competitive market. The system flow chart helps to maintain
strong communication and coordination among the different departments. The above diagram
shows that how the company fulfill the demands and requirements of the clients.
Control problems in the system and what sorts of fraud are possible in this system
Interface and integration issues are faced by BHP Billiton while initiating the custom software,
and ERP system within the organization. Multiple software is used by the company in the
workplace. As a result, it creates various obstacles and issues in the software. Due to multiple
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demands and needs of the customers, the company is unable to provide various types of products
and services to the users (Darling, 2011). Along with this, infrastructure and legacy system
issues are also dealt by the firm. It has been noted that software selection process is time
consuming and costly process. Due to lack of efficiency, the workers are unable to know whether
how to initiate the system and software within the organization. As a result, it could influence the
revenue and returns of BHP Billiton. Due to leadership issues, the employees of the firm are
unable to monitor on the software and system within the organization. The employees do not
maintain discipline at the workplace. Thus, it affects the operations and actions of BHP Billiton.
In today’s modern world, ERP system also encompasses various application and data
complexities as a result the organization is failed to receive suitable and right information and
facts related to data and application (Spira and Page, M., 2010).
BHP Billiton uses several types of strategies to reduce the fraud and errors within the
organization. The organization needs to analyze and evaluate the skills and talents of the workers
to handle the issues and problems related to fraud. Internal control plans and programs shall be
initiated by the top management to address the fraud and errors within the organization. Along
with this, certified fraud examiners and certified public accountants shall be appointed by the
firm to analyze and evaluate the fraud activities and operations. A strong and favorable culture
and working environment also helps in preventing employee fraud and theft (Mudd, 2010).
Part 2
Development and adoption of accounting software packages
In today era’ accounting software packages are used by the many companies in Australia in order
to maximize the profitability and returns. Accounting software packages could be used and
designed to assist the significantly in the conversion process. This software helps in making
unique and effective decisions within the organization. Competition is increasing and expanding
in the Australian accounting software market. Kanellou and Spathis (2013) stated that largest
number of customers for accounting software in Australia included is medium and small sized
businesses. It has been noted that biggest players in the Australian accounting software market
include MYOB, Intuit and Xero. The accounting software is used by these companies in the
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country. Xero accounting software used a model and approach of software as a service. As the
same way, accounting software is used by BHP Billiton to run the business actions successfully
in the marketplace (BHP Billiton, 2018). The cloud based accounting software is initiated by the
company to control and manage the business process. Along with this, it also uses ERP system
for optimizing use of resources within the organization. Al-ma (2013) revealed that accounting
software packages several benefits to the companies that have been stated below.
 The accounting software packages helps in reducing monthly expenses for maximizing
the outputs and profitability of the firm.
 This software improves and enhances the accuracy and security of data as it also saves
time and money of the users and companies.
 Financial accounts, ledgers and balance sheet can be maintained easily with the help of
accounting software packages. Instant solutions for various problems are provided by the
accounting software packages.
 It also helps in tracking and handling the inventory in the workplace to satisfy the needs
and requirements of the consumers (Spiceland et al, 2015).
The current market size
BHP Billiton is a diversified natural resource organization manufacturing commodities along
with substantial interest in oil and gas. It provides products and services in all over the world.
Therefore, it covers all the areas of the world. The current profit of the company was $4.2 billion
(2017). It is reported that the annual revenue of the BHP Billiton was approx 38.3 billion U.S
dollars. In 2017, the market capitalization amounted to some 67.5 billion U.S dollars. The
company is one of the biggest market leaders in this sector. BHP Billiton is one of the biggest
partners in oil and mining industries. By capturing the large market share, the company can
explore and flourish the business actions globally. BHP Billiton provides various types of
products include iron, steel, silver, oil, gas, aluminum and copper. The organization has also
interests in transportation and engineering. It is one of the oldest companies in Australia and
South African mining Billiton.
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Leaders in the market and what gives them competitive advantage
Leaders play a significant role in attaining competitive benefits in the global market. The main
leaders in oil and mining industry include Exxon Mobil, Rio Tinto, Arrow energy, Apache
Corporation, Beach petroleum limited, BHP Billiton petroleum, Chevron Australia, Cue energy
resources Ltd., Inpex, Metgasco limited, Mosaic oil, Origin energy, Roc oil company, Santos
limited, Shell in Australia, and Stuart petroleum limited. These are the main leaders in Australia
that affect the business of oil and mining in Australia. The companies need focus and monitor on
the effective and unique strategies and policies to destroy the rivalries in the Australia. The
leaders play an empirical role to provide best and unique solutions to the consumers around the
world. The leaders capture entire market to gain competitive benefits in the marketplace. They
analyze and evaluate the external market to attain various competitive advantages. Along with
this, they maintain strong relationship with each other to handle external risks and threats of the
market (Joshi, Singh Ubha and Sidhu, 2012).
It has been analyzed that leaders also affect the success and growth of BHP Billiton. The main
competitors of BHP Billiton include BP, Exxon Mobil, Anglo American, Nippon steel and Royal
Dutch Shell Company. These competitors may influence the revenue and outcomes of the
company. BHP Billiton uses leadership styles to motivate and encourage the workers for
performing tasks and roles successfully. With effective leadership styles, the company has been
able to be a great leader in the global market. The leadership team is responsible to assign tasks
and duties among the leaders. They supervise and monitor the tasks and operations of the
employees (Apostolou et al, 2013).
Current challenges and recommendations
There are various issues encountered and faced by users and companies in Australia when using
accounting software within the organization. Some of the issues have been elaborated below.
Lack of security: One of the significant challenges that faced by the companies and users is lack
of security. Due to this, the accounting software is failed to keep and tack the data effectively
and efficiently. It may influence the profitability and progress of the organizations (Chugh,
Sharma, and Cabrera, 2017).
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Weak reporting service: Due to weak reporting service, the software is not able to handle the
data and information properly (Granlund, 2011).
Poor customer relations management: Due to lack of efficiency, the customers and
organizations are failed to receive proper information and facts. Therefore, the company is
unable to maintain reciprocal and strong relationship with customers. Software compatibility is
other issues that faced by users and companies in Australia (Magal and Word, 2011).
Apart from these issues, some other issues include lack of efficiency, no bank reconciliation
feature, outdated, difficult to customize and not user friendly. All these issues may influence the
financial positions of software companies in Australia adversely. Duplication issues also are
faced by the users and customers due to poor accounting software (Romney et al, 2013).
There are various recommendations have been given to reduce and avert these accounting
software issues that have been drawn below.
 Latest and innovative technology and resources must be used by the companies to reduce
the cost and expenses. Cloud bases software must be implemented by the software
companies to handle to the issues related to accounting software.
 Modification and improvement should be done in enterprise resource planning system to
protect the resources of the organization. Some new attributes shall be added in ERP
system, commercial software and custom software to reduce the gap and challenges that
are faced by the users while initiating the accounting software packages.
 Effective and unique strategies shall be used by the companies to eliminate the
accounting software issues.
 Experts with effective skills and knowledge must be appointed by the organizations to get
right and suitable information and facts related to accounting software packages
(Hawking, 2010).
Conclusion
The above mentioned analysis shows that management information system plays an empirical
role in oil and mining industry. The above report indicates that how the firm manages and
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operates business activities with the help of ERP system, and accounting software packages.
While implementing the accounting software and ERP system in the organization, various
control and operational issues are dealt by the company. The firm needs to focus and monitor on
these issues to build and develop a dynamic image in the minds of the consumers. Lastly, some
recommendations have been given to handle and reduce these operational and control issues.
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References
Al-ma, M.A., 2013. The role of business intelligence tools in decision making
process. International Journal of Computer Applications, 73(13).
Apostolou, B., Dorminey, J.W., Hassell, J.M. and Watson, S.F., 2013. Accounting education
literature review (2010–2012). Journal of Accounting Education, 31(2), pp.107-161.
Batista, R., 2010. Final internship report: BHP Billiton Worsley Alumina.
BHP Billiton.2018. BHP Billiton goes cloud for robot rail facilities[Online], Retreived from 11th
May 2018,[Accessed as on https://www.itnews.com.au/news/bhp-billiton-goes-cloud-for-robot-
rail-facility-402783]
BHP Billiton.2018. Structure and strategy [Online], Retireved from 11th May 2018,[Accessed as
on https://www.bhp.com/our-approach/our-company/strategy]
BHP. 2018. Leadership team[Online], Retreived from 11th May 2018, [Accessed as on
https://www.bhp.com/our-approach/our-company/leadership-team]
Chugh, R., Sharma, S.C. and Cabrera, A., 2017. Lessons Learned from Enterprise Resource
Planning (ERP) Implementations in an Australian Company. International Journal of Enterprise
Information Systems (IJEIS), 13(3), pp.23-35.
Chugh, R., Sharma, S.C. and Cabrera, A., 2017. Lessons Learned from Enterprise Resource
Planning (ERP) Implementations in an Australian Company. International Journal of Enterprise
Information Systems (IJEIS), 13(3), pp.23-35.
Darling, P. ed., 2011. SME mining engineering handbook (Vol. 1). SME.
Granlund, M., 2011. Extending AIS research to management accounting and control issues: A
research note. International Journal of Accounting Information Systems, 12(1), pp.3-19.
Hawking, P., 2010. Implementing ERP Systems Globally: A Case Study. International Journal
of Strategic Information Technology and Applications (IJSITA), 1(3), pp.26-35.
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