Strategic Information System Analysis and Report on Commonwealth Bank

This report provides a comprehensive analysis of the strategic information system employed by the Commonwealth Bank of Australia (CBA). It begins with an introduction to strategic information systems and their importance in business, particularly in the context of accounting software. The report then delves into a detailed discussion of CBA, its organizational structure, and the various financial services it offers. It highlights the issues faced by CBA, including declining market share, and explores the strategies the bank has adopted to address these challenges, such as focusing on customer relationships, technology, employee capabilities, and productivity. The report further examines CBA's system acquisition methods, including its use of Enterprise Resource Planning (ERP) and the SAP model, and presents a system flowchart illustrating the bank's processes. Additionally, the report discusses the bank's strategies and their percentages. Overall, the report offers valuable insights into the strategic information system of CBA and its efforts to maintain its position in the Australian banking sector. The report also includes figures and graphs showing the organizational structure, downfall of shares, strategies and systems flowchart.

Running head: STRATEGIC INFORMATION SYSTEM
STRATEGIC INFORMATION SYSTEM
Name of the Student
Name of the University
Author Note

1STRATEGIC INFORMATION SYSTEM
Introduction:
Strategic information system is one of the main feature of the information system. The
strategic information system mainly discusses the organization structure, the issues with the
organization and accounting software that are used for the improvement of the business. The
main objective of the accounting software is to track and operate the transactions with the
business. This type of software mainly associated with the execution. This type of accounting
software are highly effective for the different type of processes of the business and the
software is used with different type of software models. One of the top organization in
Australia that is the commonwealth bank of Australia is the area in which the further
literature review will be discussed. The software of the accounting mainly used in the
information system as to provide the accounting (Kowalewski and Niedzielska 2015). The
vendors are made this kind of software and then supply it to the various organizations. The
software is mainly accounting software but there are minor changes are made in the system
so that that one software can be used in more than one purpose besides having the accounting
ability. This kind of software can be of online or this can be offline. The information that are
related to the accounting is retrieved by the accounting software.
The below discussed literature review is the way that helps the processes to
understand the organizational structure of the Commonwealth Bank of Australia. Along with
the review the various issues that are faced by the Commonwealth Bank of Australia are
discussed. The flowchart of the organization and the market share analysis is also given in the
review. The next part of the literature review the top market leaders and the competitors of
the marker are discussed.

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Discussion:
Part I:
The Organization: (Commonwealth Bank of Australia)
The Commonwealth bank of Australia is one of the biggest bank in the Australian
country. Beside the Australian region the bank has its several branches on the different parts
of the world like Asia, U.S, U.K and New Zealand. The bank provides various type of
services that are related to the finance. The services that are provided by the Commonwealth
bank of Australia are “fund management”, “the services that are related to the loan
providing”. “Services related to the investments making”, “retail banking”, “educational
loans”, “other all types of loans” and many more other services. The “Australian Securities
Exchange” or the ASE has complimented this bank that it is the best bank of the Australia in
2015. The commonwealth bank of Australia starts its journey in the year 1911 by the
initiative of the Australian government (Commbank.com.au, 2018). This bank is ranked one
of the top four banks in the Australia the other three top banks are Westpac bank, New
Zealand bank and the National Australian Bank or the NAB. Though in the year 1911 it was a
government bank but in the year 1996 it has become a private bank.
Organizational Structure:
The organizational structure of the organization includes the total management and
the whole corporate portion of the organization that is the commonwealth bank of Australia.
Along with the corporate portion of the bank and the bank management it also includes the
associated persons like the bodies of the management and the employees of the organization
and the customer that has been associated with the commonwealth bank of Australia. The
blow provided figure mainly describes the main organizational structure where the whole

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management is divided into three different levels that includes the higher level management,
middle level management, and the lower level management.
Figure 1: The Structure of the Organization of Commonwealth Bank of Australia
Issues faced by the organization: (Commonwealth Bank of Australia):
The commonwealth bank of Australia is one of the top banks in the Australia.
However, the bank still faces several different type of issues. One of the main issue that has
been the concern of the bank is the falling rate of the market share in the recent time and this
reason has brought several other drawbacks within the business that has been conducted by
the bank itself. In the recent years it seemed that the market shares of the bank is rapidly
falling. This share fall is mainly happens because of the different wrong strategies that that
has been adopted in the technology. The bank has started to take action regarding the problem

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that are previously faced and they are keen to improve their market share that is falling
rapidly. Though the actions taken regarding the issue but most of the action that are taken
most of them are wrong strategies and they are generating more problem for the organization.
The main problem they are facing is the alterations that are constantly taking in the market
place. The reasons that are responsible for this type of constant alterations are the
organizational structures competition between the commonwealth bank of Australia and the
other top banks that are located in the Australia (Ashkenas et al., 2015). In the recent time the
problems are grown rapidly and due to that the customer satisfaction is not met and the bank
has failed to do that as well. The minimum necessities of the customers sometimes ton
fulfilled by the bank. There are many examples of that like due to the fall of the shares the
bank is unable to provide loans to the customers. As compare to the other banks in the
Australia this banks interest rate is also higher, and due to that the existing customers are
started to lose their interest on the commonwealth bank of Australia and they are started to
moving to another banks. The new customers are also stopped creating account in this bank
and stopped taking loans due to that the easy loan payment option is not also provided by the
bank. For all of the above reasons and many other reasons the customers have opted out the
commonwealth bank of Australia and shifted to another banks where the rate of the interest is
low and the loan payment is easy (Chan and Rate 2018). The downfall of the market share of
the commonwealth bank of Australia has been provided in a figure below. From the below
graph it is very clear that the bank shares was above 75 and initially it started very good but
suddenly degradation and rapid downfall happen. From the figure it can be concluded that the
commonwealth bank of Australia has failed to hold its customers. The fallen shares are also
affected the clients that are new and they are getting afraid to invest there money on the bank.
As the shares are falling constantly the customer do not showing any interest of taking any
loans from the bank and the high rate of interest is also affecting them. Now days the

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customers are only looking for the banks who gives the lower rate of interest and where they
will get the money security. The commonwealth bank of Australia is facing another problem
that is the problem related to the employees associated with the bank and the bank staffs. The
rude behaviour of the bank officials towards their client is also another problem with this
particular bank is facing. Due to this, it creates a negative impact on the client and can affect
their future investments.
Figure 2: Commonwealth Bank Downfall of shares.
Organizations Strategies:
In the above the problems regarding the company has been discussed. The bank
understood that to mitigate the problems certain strategies have to be adopted (Kolodner
2014). In order to do that four major elements for the success is identified. The four identified
elements on which the commonwealth bank of Australia decided to mainly focus is discussed
below:

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I. Customers related strategies:
The organization of the commonwealth bank of Australia understood
that customers are the ones those are the foremost elements that responsible
for of the success of any type of organization. If the customers stopped their
association with the bank then the bank will be in a total non-functional state
and that will lead to the closure of the bank (Kumar and Reinartz 2018).
II. Technology:
This one is the next element where the bank needs to put its focus on.
The banks need to update their thought regarding the use of the technologies
that are used in the bank. The must understand that the new technologies are
they key to get success in the current market as the technology in the world are
updating in a rapid speed (Grant and Meadows 2016).
III. Strength:
The organization is good or bad depends on the strength of the
organization. The strength of the organization is highly dependent on the
capability and the efficiency of the teams that are associated with the bank
(Cho and Ishiguron 2015). The same is applicable for the commonwealth bank
of Australia as well. To achieve the goals and the objective of the
organizations the main responsibilities are lies upon the employees and the
staffs so that they work together efficiently.
IV. Productivity:
This is the last element that has to consider for running the business
successfully. An annual production report must be recorded by the bank to

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store the productivity of the individual employee as well as the whole
organizations productivity (Tanna, Luoand De Vita 2017).
The below provided figure shows the strategies percentages that has been adapted by
the Commonwealth bank of Australia.
Strategies
Customer 40%
Technology 15%
Strength 15%
Productivity 30%
Figure 3: Commonwealth Bank of Australia Strategies
System Acquisition method:
There are many organizations in the market those are using the ERP or the Enterprise
Resource Planning. Commonwealth bank is not an exception as it also uses the Enterprise
Resource Planning (Leon 2014). By using the ERP the bank associates different kind of
controls along with amalgamation the most portion of the business. The information system
of the management and the enterprise resource planning is associated with the different
organizational areas. The areas includes the planning, sales, finance, marketing, and the
human resource. The commonwealth bank of Australia is also use the basic system
applications and the product model, SAP model for their business purpose (Kale 2014) . In

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the business model the introduction of the SAP model is very complex and due to that
knowledge and the training is required. By applying this methods the proficiency of the banks
will be increased hugely. Along with the proficiency it will also increases the flexibility and it
also integrates the all module of the business in a huge rate. The application of SAP is very
cost effective (Roze et al., 2017). There are some strategies that are adopted by the bank gone
wrong and the bank faced a huge amount of problems for that. After the implantation,
updating and renewing the SAP has resulted a steady market share for the bank which in the
past is falling rapidly. The bank shareholders are trying their best to reduce the rate of interest
in order to attract the clients as well as the customers associated with the bank.
Figure 4: Systems Flowchart
The above figure which is provided is associated with the different processes of the
bank. The figure shows the different procedures conducted by the commonwealth bank of the

9STRATEGIC INFORMATION SYSTEM
Australia. The figure is also helps to detect the loopholes that happens in the processes of the
bank. The above provided flowchart is divided into total three different categories. The three
major categories includes the review, evaluation and the last is the response. The review
section includes the feedbacks of the customers. The section of the evaluation includes the
necessary steps and the answers which are necessary after the customers send their feedback
which received. In the section of the response all the main functions and the processes of the
banks are included. Necessary action needs to be taken if the banks are not capable of
responds in time.
Control Problems in the System:
There are major problems that the Commonwealth Bank of Australia is faced. And
these problems are responsible for the different type of modifications creations in the bank
shares. There are different aspects that are responsible for the growth of the Commonwealth
Bank of Australia are mainly dependent on the clients, shareholders and on the marketing
team of the commonwealth bank of Australia. These problems are affecting the reputation of
the bank in a high rate. This harm in reputation can be affect the bank in long term (Bahaa
2017).
Process Designing:
The commonwealth bank of Australia has been associated with the different kinds of
clients and that has been act as an important factor for getting the success of the bank. The
will power to work and the employee’s involvements of the organization is highly increased
due to the involvement of the clients of the commonwealth bank of Australia. The basic need
of the particular case is the service processes. There must have been alteration in the
organization from the time the organization is starting. In the case of the Commonwealth
bank of Australia which is established on the year 1911 must alter some of the organizational

10STRATEGIC INFORMATION SYSTEM
structure and must associated with the new and innovative market trend. The employee of the
bank are not sufficient enough for the huge quantity of the clients and those are the regular
clients.
Customer Relationship Management:
The Customer Relationship Management or the CRM is acting as one of the most
important function for any organizations. The bank is associated to deal with the clients and
the responsibility of the bank is to full fill the requirements asked by the clients. Customer
relationship management what, which main objective is to refer to the various different
techniques and the various strategies that is used by the bank to provide a good relations with
the customers and the clients. For the various different processes of the commonwealth bank
the customer relationship management is not at all sufficient. The commonwealth bank of the
Australia does not have the capability to maintain a good relationship with the customer of
the bank. The bank must focus on the customer relationship management in order to satisfy
the clients need and to give the customers the interest towards the bank (Kumar and Reinartz
2018).
Part 2
Accounting Software Packages
By introducing the accounting software, the problems and the challenges that are the
commonwealth bank of the Australia is facing can be possibly reduced (Zare 2015). The
Business to Customer or the B2C software packages is associated with the Commonwealth
Bank of Australia. There are several advantages of the business to customer software. The
advantages are as follows:
 Flexibility

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 Training not required.
 Competition gap reduced.
 Middlemen Eradication.
 Cost Effective.
Market Size in Australia:
Figure 5: Commonwealth Bank shares Margin
The above provided figure is associated with the market size of the Australia. From
the figure it can be seen that that a slight degradation has occurred in the market shares of the
commonwealth bank of Australia. From the image it can be said that in the previous year the
shares was about 283 but the shares has come down to the 262.
Leaders of the market and the competitors:
In the Australia there are various different competitors of the Commonwealth bank of
Australia is available. The list of the top market leaders and the competitors are as follows:
NAB Australia

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ANZ Australia
St. George Bank Australia
ASB Bank
Westpac New Zealand
Bank West
Kiwi Bank New Zealand
Figure 6: Core Competitors of Commonwealth Bank.
The above figure which has been provided above describes and helps to understand
the core competitors and the top competitors of the commonwealth bank of the Australia. In
the above figure there are seven banks are provided as the core competitors for the
commonwealth bank of Australia. The above chart or the figure helps us to understand that
the market is totally occupied by the market by the commonwealth bank of Australia despite
having lots of problems regarding the bank.

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Conclusion:
The above literature review helps us to conclude that the fact is true as the
commonwealth bank of the Australia is the top bank in the region of the Australia and the
New Zealand. The bank has been associated with the different kinds of problems though the
bank has been listed among the top banks in the Australian region. In the review various
problems are discussed with related to the bank and its organization. Due to the different
probles that are faced by the bank several customers are lost their interest towards the banks
and opting to shift to another banks those are providing good benefits. The shares of the bank
is constantly falling and the rate is rapid. The bank must lower their rate of interest for the
customers. Easy payment options for the loan must be there for the customer. Although the
bank is facing lots of problems but the bank is still putting efforts to come out of the situation
and new and innovative strategies are being applied to the business. The above literature
review discussed the several aspects like the organizational structure, the problems faced by
the bank, inefficiencies of the organization, the flowchart of the organization , the market
shares of the bank, and the process design of the of the commonwealth bank of Australia. The
literature review also discussed the top market leaders and the core competitors of the
commonwealth bank Australia. In the review there are several recommendations also given.
The recommendations are provided to overcome the issues and the challenges that has been
faced by the ban and that affect the customer of the bank. The main objective of the
recommendation is to hold the falling market share and if possible then upgrade it so that the
clients can get back their interest and again associated with the bank (Dymski 2016). If all the
problems are mitigated then the existing and the new customer will head bank toward the
bank and the bank will be again on its track like it was before.

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