HI5019 Strategic Information Systems: PLMA Strategic Enhancement

This report provides a comprehensive analysis of the Private Label Manufacturer Association (PLMA)'s strategic information systems. It identifies the current organizational structure, operational problems such as inefficiency and delays in decision-making, and potential fraud risks within their systems. The report recommends the adoption of an ERP system to improve accountability and efficiency. Furthermore, it assesses the market for accounting software, identifying key players like Oracle and SAP, and addresses challenges faced by users, such as communication gaps and payment portal issues. The report concludes with relevant suggestions to enhance PLMA's strategic decision-making process and overall performance.

HI5019 STRATEGIC INFORMATION SYSTEMS
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Contents
Part 1:..................................................................................................................................3
1. The current organizational structure................................................................................3
2. What operational problems (e.g., inefficiency, errors) do you think the organisation could
experience because of this structure?..................................................................................4
3. What is the most likely system acquisition method— commercial software, custom
software, or ERP?.............................................................................................................5
4. Describes and prepare a system flowchart of the sales procedures for the chosen
organisation (company).....................................................................................................6
5. Identify any control problems in the system and what sorts of fraud are possible in this
system?............................................................................................................................7
Part 2:..................................................................................................................................8
1. Development and adoption of the accounting software packages:......................................8
2. The current market size:................................................................................................8
3. Identify the leaders in the market and what gives them the competitive advantage:.............9
4. Identify the current gaps or challenges encountered by users or customers of accounting
software/packages:...............................................................................................................9
5. Make relevant suggestions or recommendations................................................................10
Conclusion:........................................................................................................................11
References:........................................................................................................................12
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Part 1:
1. The current organizational structure
The PLMA (Private Label Manufacturer Association) is the part of the Australian PLMA
International. It is the world biggest Association of World Label Manufacturer which
headquarters is in New York and the affiliated office is in Europe and Asia. Company major
mission is to focus on the development of private label products and materials in order to
promote best quality products with delivery innovation and quality enhancement.
According to the Dinker, et. al., (2014) The company basically uses matrix organisational
structure in which firms use to manage reporting relationship and set up as a grid or matrix. In
the matrix organisation, products and projects are formally coordinated in all functional
departments. Employees are focused and well contacted with many people to share information.
It is the major system which can speed the decision process. Matrix organisational systems do
some self-management among their competing contacts (Dinker, et. al., 2014).
(Source: Panadiy, 2017)
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2. What operational problems (e.g., inefficiency, errors) do you think the organisation could
experience because of this structure?
PLMA has to face many difficulties such as:
1. An increment in a number of meetings but not agreements.
2. Delays in decision making
3. A lack of accountability
According to the Fuller. et. al., (2017), PLMA is the vast majority of the company with large
complexity. To reduce such complexity company use to operate a matrix organisation but matrix
systems use to deal with formal deal reporting through the operational business process with
integrated business functions. Through this organisational many of the people are interrelated to
each other as per their responsibilities and rights. They have to involve in coordination and
decision-making process. Matrix success basically relies on being connected and giving flexible
results. Another component is lack of accountability which becomes a challenge and hectic
situation for the PLMA Company to lead with confidence and able. It sometimes lose its control
over resources needed. These problems force the company to increase the number of meeting and
make delays in making decisions related to business operations to resolve business issues Fuller,
et. al., (2017)
In the words of Quinn, et. al. (2018), In the complex situation, global matrix style becomes hard
and more expensive to arrange business model effectively. Use of sub-business model and
asynchronous tasks is not more effective which increase expenses in large information. Delays in
decision sometimes usually make product launch slow and unproductive, it increase competitive
pressure and frustration level within the organisation in the company. In the areas of
accountability, PLMA Company sees similar difficulties while making a decision and
management handling which creates professional and operations time spent 40 times slower for
the managers. Due to lack of accountability, the decision can be overlapped so that company
could face many difficulties such as struggle related to late delivery, losing control over the
flexible working environment (Quinn, et. al., 2018).
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3. What is the most likely system acquisition method— commercial software, custom
software, or ERP?
In the words of Panadiy, (2017), a Private Label manufacturing association with 565 employees
needs to focus on carry6 on the brand name in order to increase retail network. The major
problem is for the company to expand their business through increasing number of products,
services and deliveries in supermarkets, pharmacies and hardware department with the wide
range of competitive services. So the company needs to set standards, codes with accounting
principle with the help of accounting systems specially launched by standard government
accounting and auditing practices. Such government accounting practices should be integrated
with existing systems of the management. PLMA is the manufacturing company which needs
accounting practices complying with auditing and budgetary decision-making process (Panadiy,
2017).
When the organisation has many things to do to make effective decisions related to finance and
fulfil accounting motive, Enterprises Resources Planning (ERP) software which helps them to
focus on effective ways to manage financial business activities to meet such business obligation
and requirements. ERP is the major system for PLMA which helps the business to manage all
financial records, database entries and inventory level management. It is such kind of storage
system which allows the company to focus on commercial activities to increase the productivity
and efficiency. PLMA Company basically faces difficulties related lack of accountability and
delay in the decision-making process. ERP systems are adopted by the company to manage
accountability and responsible decision. It allows the PLMA to identify requirements of raw
materials customers’ satisfaction and demands and managing services with quality and value.
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4. Describes and prepare a system flowchart of the sales procedures for the chosen
organisation (company)
(Source: Bishop, 2018).
Description:
The systems flowchart related sales diagram in PLMA group would be begun with the
development of services and product label ad to target the audience. In the case of focusing on
development label product, the target audience would be investors and customers who are
willing to invest and utilise the services. The company will target the supermarkets, pharmacies
to increase the sales volume in the market (Bishop, 2018).
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The customers will be willing to purchase the services from supermarkets, pharmacies and other
high profile malls. The company can introduce online services, third-party vendors and online
business promotion to enhance their productivity through sales volume regulation.
5. Identify any control problems in the system and what sorts of fraud are possible in this
system?
According to the Suomala, et. al., (2017) here are various kinds of issues and financial problems
and issues that company has to face due to such software and financially integrated software
which the manufacturing company could encounter in the label product production services. The
sales executive and financial management of the company needs to control over inventory due to
under and overvaluation problem. PLMA use online payment systems for their online services to
get payment from their customer who is not totally safe and secured. The company might be
faced many problems such as leak security accounts details, hackers can easily hack professional
details easily which might be possible that fraud could be committed by third vendor party which
could increase the loss and expenses of the company. Sometimes it would be difficult for the
customers also. The company charges high expenses from their customers. Other possibilities
would be that cashier could steal cash collected from accounts (Suomala, et. al., 2017)
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Part 2:
1. Development and adoption of the accounting software packages:
The accounting software packages can be chosen and developed to record all information and
financial transactions in a systemic manner. It is totally user-friendly and should be used to make
the working environment more flexible. The company should use those kinds of the management
system which can easily minimise the steps related to financial transactions and improve
efficiency to records data. It should enhance the productivity and profitability of employees and
create proper interrelation between employees and working firms by ensuring maximum
information and increase the capacity to store information effectively.
There are various kinds of accounting software are developed and available for the company to
fulfil the organisational requirement of the company based on hand on experience. PLMA
Company should adopt that required software which would be able to support its services and
quality improvement. It would be helpful in improving and supporting in technological needs of
the PLMA Company by minimizing the possibilities of future threat and uncertainty by
providing the departmental information without any occurrence of wastage of time and energy.
2. The current market size:
With the proper development accounting software packages and technology and advancement of
financial systems, it has become mandatory for the PLMA Company to implement different
kinds of software as per their needs and demand of the market. According to the current situation
of the Australian market, the company has many alternatives such as MYOB, ERP, SAP,
QuickBooks and many more as accounting software in order to minimize repetition of mistakes
to maintain market share. Currently, ERP and MYOB systems have maximum market share with
more than 45% of market and QuickBooks, XERO and SAP are continuously increasing their
market position and shareholding by occupying a maximum share of the market. Most
companies prefer big technological software such as Oracle, SAP and IFS in integrating all
financial information with software with integrated security codes. ERP systems provide proper
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customer support in order to manage business function with customer demands and improve
productivity.
3. Identify the leaders in the market and what gives them the competitive advantage:
In the words of Brazel, (2015), the current leaders in the field of ERP systems and accounting
software in the market are ORACLE. ORACLE is the major financial and IT software which is
being used to manage all financial information. PLMA Company usually utilises MYOB and
Quick books. The Oracle can be taken as NetSuite software and the SAP and 4HANA are taken
as popular software which is usually in demand in the IT technology market. The PLMA is the
company which basically use NetSuite to make working more flexible and user-friendly (Brazel,
2015).
NetSuite is the most popular software in the IT field which helps the company to access all
business authority and handle responsibility. This software doesn’t stick to the traditional
method to transact financial records. These are more scalable to handle the business
opportunities and recognise financial threats to reduce additional risk to make the addition to the
modules by deleting all required and unnecessary shits from the long-term organisation. ERP
systems are also used automatically to automate all business operation in the organisation in
order to corporate and co-ordinate all it single application. This software provides the benefit of
the collaboration of all financial and operational information for different subsidiary entities in a
streamlined way to enhance the performance of strategic decision-making process of the
company.
4. Identify the current gaps or challenges encountered by users or customers of accounting
software/packages:
According to the Chung (2017), there are many issues and communication gaps related to
fulfilling customer satisfaction, improving product quality and value and etc. which can be
occurred in three different conditions. PLMA Company basically provides online services to
their customers through ERP systems. Customers provide their feedbacks through this software
as complaints and positive reactions (Chung 2017). The major current gaps can rise between
company and customers can be related to resolving the feedbacks of the customers as
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complaints. Sometimes software becomes fail to detect the problem of the company which
creates lots of trouble for the customers and employees too in order to records financial
transactions. Sometimes payment portal can become hard to recognise supportive features of the
company for the customers. According to the Allahyari (2012), Payment portal creates
difficulties for the management and creates gaps to reduce risks related to online feedbacks and
particular window portal or model. Sometimes this payment portal doesn’t allow the customer to
go through with this online payment model which tends to the loss to the business and increase
difficulties for the employees and customers in regards of business payments (Allahyari, 2012).
5. Make relevant suggestions or recommendations.
In the words of Al-Masher (2013), the new accounting and financial software should be used in
the company which easy to understand and able to provides relevant information to the company.
The company should use such software which is more than just traditional software. The PLMA
Company is the Product Label Manufacturing Company which requires powerful and effective
flexible software In order to identify financial threats and future objectives of the company.
PLMA needs IT software like NetSuite which can be able to fulfil customers’ requirements in the
retail market and streamline their business operation through one window service operation. The
needs and demand of the company are very complex and critical in order to satisfy through using
MYOB, SAP and QuickBooks which is utilised by medium scale company (Al-Masher, 2013),
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Conclusion:
The PLMA Company needs flexible and effective software to identify all financial requirements
of the company in order to make a crucial decision by implementing new IT software because it
is required a huge investment to manage and time effectiveness. ERP systems can be used by
PLMA Company to record financial accounts and records. The ERP solution would be used as
beneficial and targeted systems to improve efficiency and efficacy of the business accounts and
reduce the risk inherent factors in the organisation. This literature review has been made to create
efficiency and efficacy to enhance the business production and to support extensive business
activities.
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References:
 Al-Masher, M., (2013), “Enterprise resource planning: a taxonomy of critical factors”,
European Journal of Operational Research, Vol. 146, pp. 352-364.
 Allahyari, A., (2012), “Assessment of Effective Factors in ERP Acceptance: Case Study
of Manufacturing and Service Companies (LME) of Iran,” Asian Journal on Quality, Vol.
13, No. 2, pp. 177-184.
 Brazel, J., (2015), “A Measure of Perceived Auditor ERP Systems Expertise:
Development, Assessment, and Uses,” Managerial Auditing Journal, Vol. 20, No. 6, pp.
619-631.
 Chung, B., (2017), “An Analysis of Success and Failure Factors for ERP Systems in
Engineering and Construction Firms,(Doctoral Dissertation) University of Maryl.
 Panadiy, O. (2017). Enhancement the Effectiveness of Management Accounting Using
Computer Network Technologies (On the Example of Experimental Base of National
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 Bishop, W. A. (2018). A project management framework for small-and medium-sized
entities: Accounting software implementation. Journal of Economic and Financial
Sciences, 11(1), 11.
 Bishop, W. A. (2018). A project management framework for small-and medium-sized
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 Suomala, P., Lyly-Yrjänäinen, J., Laine, T., & Mitchell, F. (2017). Management
Accounting Research in National Research Policy. In Interventionist Management
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management accounting and control in family firms: suggestions linked to architecture,
governance, entrepreneurship and stewardship. Journal of Management Control, 28(4),
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Functionality in SAP Solutions–Implications for Research and Practise. In International
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accounting graduates. Accounting Education, 24(5), 403-422.
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Project Management: A Process and Team Approach, Edition 1.1. Prospect Press.
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 Dinker, D., Eckhardt, A. D., Ouye, D. M., O'krafka, B. W., Cohen, E. T., & McWilliams,
T. M. (2014). U.S. Patent No. 8,667,001. Washington, DC: U.S. Patent and Trademark
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