Strategic Information System Analysis: Commonwealth Bank of Australia

This report provides a comprehensive analysis of the strategic information system (SIS) employed by the Commonwealth Bank of Australia (CBA). It begins with an overview of CBA's organizational background and structure, followed by an examination of its operational problems, including decreasing share prices and weaknesses in its SIS. The report then delves into CBA's organizational strategies, focusing on customer relations, technology, productivity, and strength. It also discusses the system acquisition method, specifically the implementation of Enterprise Resource Planning (ERP) using SAP, and the control issues within the systems. Furthermore, the report explores the accounting software used by CBA, highlighting its collaboration with Xero and the benefits derived from it. A comparison of CBA's competitors and market leaders is presented, followed by significant suggestions and recommendations to address the challenges faced by CBA, such as reducing interest rates and improving customer relationship management. The report concludes by summarizing the key findings and emphasizing the importance of a robust SIS for achieving organizational objectives.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System: Commonwealth Bank of Australia
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................3
Part A...............................................................................................................................................3
Organizational background..........................................................................................................3
Organizational Structure of Commonwealth Bank of Australia..................................................4
Operational problems of Commonwealth Bank of Australia......................................................4
Organizational Strategies.................................................................................................................6
System Acquisition Method........................................................................................................7
Control issues inside the Systems................................................................................................9
Part 2..............................................................................................................................................10
Accounting Software.................................................................................................................10
Competitors and market leaders:...............................................................................................12
Significant Suggestions or Recommendations..........................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3STRATEGIC INFORMATION SYSTEM
Introduction
Information system has been helping in maintaining different types of goals and
objectives of an organization in the market. Several benefits have been associated in the use if
the strategic information system (Piepenburg, Archambault and Joergensen 2015). It helps in
providing competitive advantage for the company in the market. This report discusses about the
strategic information system and accounting software in banking sectors of Australia including
Commonwealth Bank. The report focuses on the organizational structure of the company and
problems in the organizational structure. A relevant accounting software has been discussed for
the CBA.
Part A
Organizational background
Commonwealth bank is one of the most popular bank in Australia. This bank has been
operating in Europe, Asia and Australia. This bank has been listed as the largest bank of
Australia in 2015. This bank has been helping in increasing the revenue system of the country. It
has a large business network all over the world (Commbank.com.au. 2018). This bank has been
helps in in maintaining the banking services in all over the world.

4STRATEGIC INFORMATION SYSTEM
Organizational Structure of Commonwealth Bank of Australia
Figure 1: Organizational Structure of Commonwealth Bank of Australia
(Source: Commbank.com.au. 2018)
Operational problems of Commonwealth Bank of Australia
The value price of shares pf the company has been decreasing in the market that has
created major impact on the business of bank. The bank has been suffering with poor strategic
information system. The decision making system of the company has been weak in the
operational management (Ogiela, Ogiela and Ogiela 2015). The competitive advantage of the
company has been decreasing in the market. The use of old strategies in the market have been
main reason for the downfall of the company in the market. The CBA has been a traditional bank
that has been using old system and technology. Therefore, the change in the market has

5STRATEGIC INFORMATION SYSTEM
minimized success if the bank in the market. The irregularity in the organizational structure has
been creating complexity in maintaining performance of the company.
Figure 2: Downfall of Share Price in Commonwealth Bank of Australia
(Source: Commbank.com.au. 2018)

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Organizational Strategies
There are different operational procedures that may help in limiting the issues in the
CBA. Four of them has been examined underneath:
Customer: This is the primary system for the CBA Bank. Clients are the most critical
resource for the organization in the market. In this manner, the fulfillment of the clients in the
market is a critical point for the advancement of the organization in the market (Ogiela 2015).
The way of life of the bank has been altered in keeping up the desires of the clients in the market.
The enhancement of the cash in the market has been legitimately kept up by checking the
exercises of the clients.
Technology: The second system of the Commonwealth bank is innovation. Innovation
assumes an imperative part in keeping up the improvement to the organization in the market. In
any case, CBA have been utilizing low innovation in their framework. Henceforth, they are
confronting a few issues eth the new contestants in the market as they are utilizing overhauled
innovation in the market (Hernández, Santos and Gallardo 2015). The Commonwealth bank has
been endeavoring to overhaul their innovation utilized as a part of the operational framework.
Productivity: The third procedure of the Commonwealth bank is profitability. The
profitability of the bank has been more than that different banks in Australia (Laudon and
Laudon 2016). The organization is rearranging the strategy for creation in the market. The
utilization if the different techniques in the market for the expanding the diminishment have been
presented by the organization. Efficiency of the organization has dependably been concentrating
on the request of the clients in the market (Mehrjerdi 2014). Be that as it may, consequently has

7STRATEGIC INFORMATION SYSTEM
been an exceptionally basic circumstance for the organization to keep up the profitability in the
market.
Strength: The last technique of the Commonwealth Bank is quality. The money related
emergency of the CBA has been attempting to overcome from different ruin and joining their
qualities to bob back in the market (Arvidsson, Holmström and Lyytinen 2014). The harmony
between the outside and inward factors influencing the improvement of the organization in the
market has been broke down. The utilization of the asset report may help in keeping up the
financial plan of the bank and underwrite different open doors in the market.
40%
15%
15%
30%
Strategies of CBA
Customer 40% Technology 15% Strength 15% Productivity 30%
Figure 3: CBA Strategies
(Source: Created by the Author in MS Doc)

8STRATEGIC INFORMATION SYSTEM
System Acquisition Method
Enterprise Resource Planning or ERP has been executed by the Commonwealth Bank of
Australia for the framework securing technique. As remarked by Konsynski and Karimi (2013),
ERP alludes to the procedure by which an association keeps up and controls different fields
including arranging, fund, obtaining and showcasing. The hierarchical objectives have been
appropriately arranged and examined for the fruition of the objectives in time. The utilization of
framework procurement strategy in the bank may help in observing different resources. Ward
bank used to use SAP show for dealing with their business. As contended by Hill, Jones and
Schilling (2014), usage the SAP demonstrate in an association is not a simple errand as it
requires legitimate preparing and aptitude. SAP show encourages in giving adaptability to the
operational frameworks utilized as a part of the bank. It helps in giving different chances to the
organization in the market. The utilization of the SAP demonstrate helps in recognizing the cost
adequacy methodology in the organization (Simione et al. 2018). The savvy items and
administrations of the organization helps in pulling in the clients in the bank. The utilization of
the SAP demonstrate have helped in giving legitimate market investigation including the
measure of increment in the market. It is even used by the bank for making the bank shares
completely relentless and working (Amrollahi, Ghapanchi and Talaei-Khoei 2013).

9STRATEGIC INFORMATION SYSTEM
Figure 4: Systems Flowchart of CBA
(Source: Commbank.com.au. 2018)
Control issues inside the Systems
There have been different issues looked by the Commonwealth bank in the market. Along
these lines, there is a need of different adjustment keeping in mind the end goal to development
in the organization in the market. The estimation of offers of the organization has been
diminishing in the market. Subsequently has been a noteworthy issue fir the bank in the market.
The partners of the organization have not possessed the capacity to keep up the basic leadership
arrangement of the bank. The control issues of the association have been in charge of the
decrement of the development of the organization.

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There are a few sorts of fakes occurring in the Commonwealth Bank of Australia. The
first and the principal misrepresentation of this association mostly incorporate the scam messages
or the lie SMS messages (Arvidsson, Holmström and Lyytinen 2014). The other extortion of the
bank incorporates phishing and caricaturing. Crushing is the most well known type of phishing
and SMS.
Part 2
Accounting Software
The accounting software arrangements are predominantly required for preparing and
keeping record of various exchanges utilizing distinctive modules, for example, finance, trail
adjust, creditor liabilities, money due, general record, charging of the deals and so on. These sort
of programming arrangements are accessible from various outsider sellers or can be produced in-
house by the association according to the custom fitted necessities of the association (Bryson
2017).
In Australia there are various accounting software bundles are accessible, for example,
MYOB, Xero, Reckon and so on. Among them, CBA teamed up with the Xero keeping in mind
the end goal to give, dispatch the first of its kind a safe information sustain arrangement that will
be utilized for private companies that are the clients of the bank.
Xero gives cloud based answer for its clients in the SaaS based model. With the accompanying
focal points of the Xero, the Common riches bank gets advantage in the market (Alexander
2013).

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Taking care of numerous customer request for in insignificant preparing time: With the
effective modules of the bookkeeping bundle, Xero can deal with an excessive number of client
asks for in negligible measure of time.
Automation: For associations like Commonwealth Bank straightforward upkeep of
bookkeeping exchanges and fundamental budgetary announcing are insufficient. In this manner
the association requires the total automation of payrolls module, distinctive other representative
costs too time sheets (Martinsons, Davison and Huang 2017). Treatment of the diverse buy
orders, departmental spending plans and other complex money related exercises are additionally
accessible from Xero.
Interoperability: For Commonwealth Bank, information went into the product
arrangement can be adequately utilized by various business applications utilized inside the
association and distinctive business parts (Amrollahi, Ghapanchi and Talaei-Khoei 2013). Then
again, it might be required that the product arrangement can draw data from other programming
arrangement/items from various different branches of the association. Accordingly, this builds
the effectiveness of the distinctive business forms in the association by furnishing
interoperability with other programming arrangements. Utilization of Xero in giving the
managing an account administrations to the SSME helped the association to procure new clients
as it influenced the saving money to process substantially less demanding (Yoo 2013). With this
coordination the clients will have the capacity to determine their managing an account exchanges
definitely, and get an up and coming perspective of their trade stream out the go.

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Market Size: Following bar graph demonstrates the corruption of piece of the pie in
Australia.
Figure 5: Commonwealth Bank of Australia Share Margin
(Source: Commbank.com.au. 2018)
Competitors and market leaders:
There are various banks that are the center rivals in the keeping money division of
Australia. The absolute most noteworthy contenders of Commonwealth Bank are recorded
beneath,
 Australia and New Zealand Banking Group or ANZ Bank
 National Australian Bank or NAB
 Bank West
 St. George Bank, Australia

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 Kiwi Bank
 Auckland Savings Bank or ASB
 Westpac New Zealand
Figure 6: Competitors of Commonwealth Bank of Australia
(Source: Commbank.com.au. 2018)
From the above outline it is obvious that that the Commonwealth Bank is Australia is as
yet driving in the managing an account area of Australia. 20% of the aggregate offer is procured
by Commonwealth Bank, 16% by National Australian Bank, 13% by National Australian Bank
(Gholami et al. 2013).
Significant Suggestions or Recommendations
Commonwealth Bank of Australia has been confronting an assortment of authoritative
and operational difficulties in their framework. The most regular issue in the Commonwealth
bank of Australia have been the climb in the financing costs than that of different banks.
Accordingly, clients are not willing to contribute their cash with tis bank. It is profoundly

14STRATEGIC INFORMATION SYSTEM
prescribed to lessen the loan costs of the bank to draw in more clients to the bank (Jakobson and
Rueben 2015). The financing costs on the credit of the general population should be low s that
the quantity of advance get expanded in the banks. The second issue in the bank is that the
clients are not willing to put resources into the bank. Accordingly, it is prescribed that the bank
needs to build the offer in the market (Youn et al. 2013). The client relationship administration
has been an issue for the bank in the market. The level of fulfillment has not been enhanced by
the amount of administrations gave by the bank. Along these lines, it is prescribed to put
resources into the CRM model of the organization.
Conclusion
It is concluded that the strategic information system have helped in keeping up the
authoritative objectives and goals. The utilization of key data framework have helped in limiting
the issues in the hierarchical objectives of the Commonwealth Bank of Australia. Accounting
software execution has been examined in the report. The utilization of the SAP demonstrate has
been clarified in the report. The significance of the SP show has been talked about in the report.
A few proposals have been accommodated limiting the issues in the CBA.

15STRATEGIC INFORMATION SYSTEM
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