HI5019 Strategic Information Systems: Accounting Software in AU

This literature review analyzes the use of accounting software packages in Australian organizations, focusing on Macquarie as a case study. It examines Macquarie's organizational structure, potential operational problems, and the applicability of ERP systems. The review includes a flowchart of Macquarie's sales procedures, identifies potential control problems and fraud risks, and discusses the development and adoption of accounting software. Furthermore, it assesses the current market size, key players like MYOB, their competitive advantages, and existing gaps in the market. The review concludes with recommendations for improving strategic information systems within the context of accounting software adoption and implementation.

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

1STRATEGIC INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Current organization structure of Macquarie...............................................................................2
Organization problem..................................................................................................................3
ERP..............................................................................................................................................4
Description and preparation of flowchart....................................................................................5
Control problem in the system.....................................................................................................6
Development of account software packages................................................................................7
Current market size......................................................................................................................8
Leaders in the market and competitive advantage.......................................................................9
Current gaps.................................................................................................................................9
Conclusion.....................................................................................................................................10
Recommendation...........................................................................................................................10
Reference.......................................................................................................................................11

2STRATEGIC INFORMATION SYSTEM
Introduction
The ultimate focus point of this particular report is accounting software system which is
widely used in various organization of Australia. This tool can be considered to be very helpful
for analysing operational section and various kinds of activity in an organization. In the market a
variety of tools are available which can be easily used for improving the structure of an
organization (Aduamoah et al. 2017). It is generally very tough for selecting the tool among the
tools so that a particular organization is benefited by its implementation. During the
implementation of a system that major area of concern is whether the new system will replace
the current system completely or would be placed completely over it (Alamri et al.2016).
Implementation of new system is considered to be complex in nature as it would be placed over
the existing system.
In the coming pages of the report the current organization of Macquarie has been
discussed. After that various kinds of operation problem in it has been discussed due to its
structure. A list of benefits has been provided by which the current organization would be
benefited by the implementation of ERP. After that various kinds of control problem in the
system and other kinds of fraud related to it has been discussed. The current market size of this
organization has been provided. Various leader in the market has been identified which can
provide him competitive advantage. In the end of report current gaps or any kinds of challenges
have been identified.

3STRATEGIC INFORMATION SYSTEM
Discussion
Current organization structure of Macquarie
The organization structure of Macquarie is divided into five divisions. Its non-
hierarchical structure is generally inclusive of officer for operation, managing body head that is
director, top of operational group of Macquarie which is inclusive of risk management which
focus on contributing managing parameter of an organization (Amrollahi, Ghapanchi and Talaei-
Khoei, 2014). A chart has been provided below which provides an overview of the organization
structure of Macquarie. In the top of the organization structure of Macquarie it is has a limited
group of broad of directors. After that the structure is divided into five groups namely capital,
asset management, global markets, financial services and lastly asset finance (Arvidsson,
Holmström and Lyytinen, 2014). Apart from this it has certain number of groups like risk
management group, legal and governance group, financial management group, corporate
operation group.
Figure 1: Macquarie’s Organizational Structure

4STRATEGIC INFORMATION SYSTEM
(Source: Macquarie 2017)
Organization problem
(Jebreen, 2014) have provided their opinion relating to the given topic that various group
work hard to place themselves at a particular place who are mainly committed and focused for
aiming at this particular group. There are many kinds of issues which can easily occur in the
various process of an organization that can easily change the efficiency and various kinds of
errors related to human (Baranov et al. 2016). The factor can be provided as various kinds of task
which is needed to be conducted by member, like issues related to technologies, proper selection
of main leader, effect of corruption, motivation for this organization. All the provided task can be
done in proper order for this organization along with it should be predictable and easy for easy
leader to motivate their leaders in the provided context. Commitment group can be considered to
be important for an organization which mainly focus on factor of success, improvisation of
leadership style and capability for proper decision making which is both from the point of view
of individual and various organization (Carson, 2017). While (Islam et al. 2012) relates to the
fact that it particular concept can easily hamper the overall concept or idea of achieving
objectives of this organization. So it can be easily stated that empowering of a person with too
many power can make him or her selfless. This merely reflects on the fact that how leader can
misuse different types of power. It is ultimately given to him and it comes up with idea of
manipulation of large number of employees.
ERP
ERP stands for enterprise resource planning is considered as a leading aspect in
developing the organization structure in terms of technical. This particular idea is achieved by
the help of support in the domain of operation in the organization. It ultimately focuses on the

5STRATEGIC INFORMATION SYSTEM
fact that system of production is competitive in nature and comes up with globalized economy in
relation to various organization (Demchenko et al. 2016). Concept of acquisition can be easily
classified as method of steps which can be taken for explaining the benefits which can be easily
achieved by implementation of ERO system into the present organization structure. It merely
focuses on the fact of data acquisition in relation to system of production. It can be more difficult
when the system of production which is automated in nature. ERP is considered to be most
frequently used method or context of software (Dewi and Suprapto, 2017). As a kind of
methodology it has become the most popular kind of software which has been developed by
large number of organization. ERP is like central nervous system of the organization. It comes
up with capability of collecting large number of data. It generally helps the corporation to more
aware of linking information like finance, production and lastly human resource (Fischer et al.
2015). ERP system have been failed to be implemented in large section which can be easily
influenced by the provided installation. Various kinds of identification play a key role in
understanding the overall working of this organization which mainly focus on the idea of data
acquisition. It cannot be easily achieved within various element of industry which is inclusive of
automation and control system.

6STRATEGIC INFORMATION SYSTEM
Description and preparation of flowchart
Figure 2: Flowchart of Macquarie
(Source: Clegg Kornberger and Pitsis 2015)
The above-mentioned flowchart shows the details of the sales procedure that is involved
with Macquarie. The customer submits the order that the customer wants to buy. Then the
contact agent of the company views the order (Handley, Ross-Smith and Wright, 2018). The
sales department of the company views all the standard terms and conditions of the product
before dispatching the product. After the agent approves the order, the product is packed for
picked up for the shipping and the order is finally shipped. However, while checking the
standard terms, if the agent request approval from the company, and the changes are to be made
by the company. If the changes are acceptable, then the product is marked as ok and the agent
approves the product for shipment (Kumar et al. 2014). But, if the changes are not acceptable,

7STRATEGIC INFORMATION SYSTEM
then the product returns to the agent, and the agent needs approval again and then the shipment
process is stopped. In this way, Macquarie ships a product to its customer.
Control problem in the system
Enterprise Resource Planning is an efficient, management, and innovative system that is very
effective for all types of enterprises. With all its advantages, the ERD system also has certain
problems that are considered to be as a fraud case in the system (Laudon and Laudon, 2016). The
frauds that are included in the system directly hampers the performance as well as reputation of
the Macquarie system. The frauds that are involved with the system implication of ERP are
stated as follows:
 Fraud of false payment invoice: User who indulge with activity, payment and creation of
invoices are considered to be as fraud case in the company.
 Misappropriation: If any purchase approval or any purchase orders are indulged, then it is
considered to be as a data manipulation fraud with the organization.
 Payment of non-purchase: If the customer receives a product without payment done, or
the user does not receive the product even after payment, then it is considered to a fraud
case in the company.
 Vendor payment those are anonymous: The anonymous payment from the vendor is a
concept that involves in modifying the master card and then creates the invoices directly
to the vendor. This is considered to be as a fraud case in an organization.
 Customer payment those are anonymous: The activity that involves modification and
creation of records that are related with the customer and then grant credit to particular
customer is a fraud case in Macquarie.

8STRATEGIC INFORMATION SYSTEM
Development of account software packages
There are many benefits that are related with accounting software package that helps to
increase the adaptation packages in Macquarie Company (Linnenluecke et al. 2017). Many
factors are responsible for the adaptation of packages related to accounting software. The main
factors that are responsible are divided into four groups.
 Characteristics of Business environment
 Organization characteristics
 Characteristics of Technological innovation
 Management characteristics
The main goal of information technology is considered a most important area in recent times.
The information technology helps to attract the attention of the different researchers so that the
research in a particular field is forwarded (Mayasari, 2015). Packages that promote Macquarie to
do all the calculation related many systems to the sales of the company. The researchers to do
research in a particular field put the information technology forward (Osman, El Beltagi and
Hardaker, 2015). The researchers and the motivational factors for accepting the adaptation of
system packages in accounting software use various types of strategies that are involved in
information technology. The strategies or the packages that are involved with the information
technology helps the Macquarie Company to do promotional events and promotes different
products and services that Macquarie provides (Pascual, 2015). All the calculations that are
related with the company can be done by information system very easily over a short period of
time. The calculations that are provided are very accurate and help to facilitate the service of
cloud storage for the company. The concept of information technology is one of the most
important factors in Macquarie Company to deal with all its services and products.

9STRATEGIC INFORMATION SYSTEM
Current market size
In case of banking sectors there are chances of quality frauds. In order to resolve these
errors, it is necessary for the banking organizations to install suitable accounting software
packages (Sarif et al. 2018). Not only for the banks but there are many other industries where the
accounting software packages are widely used to gain effectives success and measurable revenue
from the competitive market. Many accounting software package providers are available in
Australia such as MYOB, XERO, Saasu, Reckon etc. However, this particular report the
nominated accounting software package is MYOB. The process of economy transaction and
information transaction become much easier and free of error after the application of any
accounting software packages. MYOB accounting software includes huge number of products
which acts together from the comprehensive accounting services mainly for the Australian
market (Serrano, Gallardo and Hernantes, 2015). Though, currently the company is trying to
expand their business out of Australia. The trail subscription package and the general
subscription package charge offered by the company are lesser than other accounting software
prodders.
In addition to this the other functionalities associated to this system include loss
statement details, banking support system, invoicing, tax reporting etc. MYOB has tailored the
flexible system for every business regardless of their size and types as well. It gives opportunity
to the users to access all kind of services and data from any devices (Sippel, Lawrence and
Burch, 2017). MYOB accounting software packages has the ability to link over than 100
Australian banking companies and building societies at the same time. MYOB has more than
150 customized reports that can be considered which help the audit team of the company to

10STRATEGIC INFORMATION SYSTEM
structure the current revenue of the company. The new payment segment of MYOB has opened
$1.2 Billion of market opportunities.
Leaders in the market and competitive advantage
Most of the accounting software packages used in Australia is for small organization.
However, banking sector is a larger or wide sector of application for which over XERO MYOB
stands much beneficial. $73 million of Investment has been returned to MYOB which is
delivered by the company for improving their functionalities (Yigitbasioglu, 2015). At the same
time MYOB needs pay crop leading payment solution providers of Australia in around $48
million. From this value or revenue structure it can be said that MYOB gives high rated
competitive advantages to other accounting software package providers.
Current gaps
There are many accounting software package providers in Australia among them XERO
and Reckon are the biggest thereat for MYOB. The trial version packages and the actual
subscription packages delivered by the company are higher than Xero. Thus most of the existing
consumers of MYOB are moving towards to XERO. Again the company is also facing high level
of security issues as a result the banking information confidentiality are also getting interrupted
each time. In case of information security XERO stands very much trustworthy (Yigitbasioglu
2015). In case of Reckon also the regulatory competitor is very much high and from the sales
and marketing perspectives the company is also facing huge challenge. The employees who are
newly recruiting for the company are failing to meet the requirements of the consumers due to
lack of technical knowledge.

11STRATEGIC INFORMATION SYSTEM
Conclusion
From the overall discussion it can be concluded that, with the installation of the
accounting software packages the banking sectors and other industries the operations ma
functional issues will be completely reduced and resolves accordingly. It is the responsibility of
the consumers of the accounting software packages to choose the most suitable one so that they
can gain effective business revenue and competitive advantages from the marketplace. This
report analyzed the impact and importance of using accounting software packages in the banking
sectors. In addition to this, the current market size, competitive advantages and the challenges
facing by its user s are also elaborate in this report.
Recommendation
The company is facing certain challenges those are required to be mitigated to gain
effective as well as measurable revenue and for that the necessary recommendations are given
below:
Encryption algorithm: In order to keep the confidential information secured from the
external attackers it is necessary for the company to use proper encryption algorithm should be
applied by the company. At the same time the encryption key must not be shared with any third
party.
Firewall: During data transmission in order to keep the transmission channels secured
from the outsider proper application firewall should be installed.
Technical training: Technical training and development programs are t be arranged by
the company for their newly hired employees to make them aware of the operation and
functionalities.