Strategic Information System Analysis of Coles: A Detailed Report

This report provides a comprehensive analysis of Coles' strategic information system. It begins with an overview of the company's organizational structure, highlighting its operational challenges such as taxation, language barriers, and lack of employee training. The report then explores various system acquisition methods employed by Coles, including custom software, ERP systems, and commercial software like MS Office. A system flowchart illustrating the sales process is also presented. The analysis extends to control problems, including infrastructure, globalization, and cybersecurity, along with proposed solutions to minimize fraud. The second part of the report focuses on the development and adoption of accounting software packages and its impact on Coles. It also assesses the company's market size, its leaders, competitive advantages, and challenges. The report concludes with recommendations for improvement, emphasizing the importance of effective leadership and strategic information system management for sustained success in the competitive Australian retail market.

Running head: Strategic information system
Strategic Information System

Strategic Information System
Table of Contents
Introduction.................................................................................................................................................1
Part 1...........................................................................................................................................................1
The current organizational structure of Coles..........................................................................................1
Operational problems..............................................................................................................................1
System Acquisition method.....................................................................................................................2
System Flowchart....................................................................................................................................3
Control problems and some sort to minimize fraud in the system...........................................................4
PART 2.......................................................................................................................................................5
Development and adoption of accounting software packages..................................................................5
Market size of Coles................................................................................................................................5
Leaders in the market and competitive advantage...................................................................................6
Challenges and Recommendations..........................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Strategic Information System
Introduction
In the present scenario, ERP system and Accounting software are considered as an
essential aspect of Coles. In this task, the focus will be given on the Coles to elaborate the
importance of custom software, ERP system and also the accounting software system.
Therefore, in this paper, the emphasis will be given on the explanation related to how the
company has created and developed the effective culture and diversity at the workstation. Also,
on the other hand, the paper will elaborate that how Coles is facing issues in managing the
activities. The will also represent the system of flowchart and importance of leadership. The
evaluation will be made on how the leaders assist to achieve competitive advantage in the
market.
Part 1
The current organizational structure of Coles
Coles is one of the biggest Australian retail organization and all the activities are
managed from the head office located in Melbourne. In 2007, Wesfarmers acquired the
company. Coles was established in 2007 and serves more than 21 million customers worldwide.
Around 102,000 or more employees are working in the company and there are around 2400 retail
outlets globally. The aim of the company is to provide good quality products and services to the
customers so that satisfaction and goodwill can be maintained in the market. In Australia, this
company is one of the well-known and trusted companies.
Coles tries to achieve a good experience of the customers. The company considers
effective supply chain management to satisfy the requirements of the customers globally. George
Coles is the founder of the company. In this company, the group executive committee is liable
for considering the management decisions and in managing the activities of Coles (Boonstra,
2013). The organizational structure is considered by the organization in the workplace.
Operational problems
The issues related to the operations are managed by Coles at the time of conducting the
activities on the international level. The problems related to the operations can influence the
overall profits and revenue of the company. It is evaluated that the problems related to operations
impact the sustainability of the company. The major problems are related to taxation and high
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cost of the products which impact the overall profits of the organization. The problem which is
faced by the company is language. The message within the software is required to be translated
in a correct manner. The effect is also seen on the efficiency and effectiveness of the workers.
The growth rate of the organization is affected by the cultural barriers. Due to Cross-cultural
problems the employers are not able to maintain a relationship with the company. It has been
analyzed that company does not focus on offering proper training to the candidates so the
workers are not able to gain the knowledge about technology and the system (Qrunfleh and
Tarafdar, 2014).
The employees of the company are not able to achieve knowledge about the latest system
and technology. It can be analyzed that revenue is also affected due to the technology issues with
the employees. There is no effective workforce in the company so the employees are not able to
consider the resources and capabilities of the company (Ghasemi et al., 2011). Lack of training
and learning is increasing the mistakes and errors done by the workers at the time of conducting
the activities within the company. All these issues are managed by Coles at the time of
conducting the activities of the business on a global basis.
System Acquisition method
The information system is considered as an important part of Coles as the success and
growth of the company depends on the information technology. This technique assists to achieve
long-term goals and objectives so that activities can be conducted in a right manner. There are
many acquisition methods which are considered by the Coles in the workplace like custom
software, enterprise planning system.
Commercial software is one of the important methods that are considered by the
organization so that records and data can be tracked in a proper manner. This software also
assists in selling the products and services. Coles has initiated the examples of Ms. Office. Also,
the company considers custom software so that needs and wants can be satisfied. This software
focuses on creating and designing the particular requirement of the tasks. The custom software
helps to manage the organization changes.
ERP system is also considered by Coles to integrate the applications and the information
at the workstation. It assists to manage the activities of back office by offering proper solutions
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to the problems. It has evaluated that ERP system is considered by the company at the time of
conducting the activities of the organization (Nour and Mouakket, 2013). By considering ERP
system the company can apply the information to consider accurate decisions within the
company. It is simple to provide good quality of customer service by focusing on the enterprise
solutions. The strong ERO solutions will help to maintain the track of the regulations within the
industry and emphasis is given to the managerial changes (Myers, Hulks and Wiggins, 2012).
System Flowchart
(Source: Sales process Flowchart, 2018).
This flowchart is designed to show and evaluate the activities of the company. System
flowchart also assists in analyzing the sales of the products and services. The diagram states that
how the organization will attain the orders to satisfy the demand of the customers. Training and
development are offered to the workers for creating a unique flow chart for the sales process.
The managers and also the warehouse keeper have an important role in the system flowchart
method (Whittington, 2014).
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Control problems and some sort to minimize fraud in the system
Coles is facing problems in today's scenario. Some of the problems that should be
controlled are infrastructure, globalization, cyber security and organizational change.
Infrastructure is the major issue faced by the organization. By having poor HRM, Coles is not
able to attract talented employees in the workplace. Next factor is related to Globalization in
which it is seen that company facing some setbacks. Due to globalization, the company is not
able to emphasize on the activities of its competitors. It can give influence to the overall outcome
of the company. It is also analyzed that the company is using old technology and system in the
organization that creates issues within the company (Jarzabkowski and Kaplan, 2015).
Cyber security problems are managed by the company. As an outcome, a data breach can
result in loss and damages to the goodwill of the organization and its bottom line (Stallings et al.,
2012). For these activities are not managed in a proper manner then it can give negative impact
on the overall activities of the company and can also hinder the routine activities of the company.
It can also be evaluated that company is not able to gather the information related to the
customers and system. It has impacted the financial position of the company in an adverse
manner.
Due to the insufficient wage and pay system the company is not able to retain the skilled
workers in the workplace. Change in an organization is also the problem for the company that is
not in control and manageable by the company. The inadequate software can enhance the
misunderstandings and also confusion among the employees at the workstation (Toth, 2012).
There are many actions that should be taken to minimize the fraud in the system. It is
important to audit so that expert team can handle and minimize the fraud and mistakes within the
company. Cloud-based services should be considered by Coles so that fraud can be detected in
the workplace. The organization should also emphasize on the retention of the employees so that
issues related to the software problem and system flow chart can be minimized. Retention is
important or the company as it helps to survive for a long time in the competitive environment in
an effective manner.
It is also important to offer training to the employees so that frauds and mistakes can be
reduced. Training helps to enhance the knowledge of the employees and also give them direction
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to conduct the activities in a right direction. Training enhances the overall confidence level of the
employees towards the activities assigned (Pearlson, Saunders and Galletta, 2016). In this way,
the company can be a good leader in the market and competitive advantage can be achieved
effectively.
PART 2
Development and adoption of accounting software packages
It can be considered that accounting software is useful for Coles for managing the routine
transactions and ledgers of the consumers and suppliers. It assists in creating financial statements
at the year-end. It enhances the efficiency and effectiveness of the employees. The reduction in
cost and expenses also take place in the company. The level of inventory can also be managed
with the help of proper accounting software. It has been analyzed that accounting software can
be learned and considered in the routine activities. It also offers safety of information and with
this information can be accessed easily (Simkin, Norman and Rose, 2014).
If Coles consider accounting software then the company can make proper decisions. The
organization can also consider proper records of their finance. Accounting software secures the
time of the investors and also the suppliers. It has been evaluated that accounting software shows
a technological advancement in the sector of business accounting. This software assists in
analyzing and considering the business practices (Peppard and Ward, 2016). This software also
helps to make the access easy and offer proper information. In this way, this software can help to
enhance the sales and the revenue of the company.
Market size of Coles
The market size of the company is large. There are many customers who are linked to the
company. By having a large market share, the company is able to compete with the competitors
prevailing in the market. In 2017 the gross profit of the organization was $212 Mil (Coles, 2018).
By this, it can be seen that the company financial position is strong in the Australian Market. By
having a good financial position in the market it can be easy for the company to conduct the
activities in a right direction and also with more efficiency. The financial position of the
company only showcases the exact resources which can help to sustain in the competitive
environment.
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There is also effective leadership which is considered by the company to manage the
operations of the company. This leadership assists in research and development. The company
has been able to create a good image in the minds of the customers by considering the large
market share in the country (Stair and Reynolds, 2017). It also assists in developing and
enhancing the favorable conditions and culture within the company. If effective leadership is
there in the company then it can be easy for the company to conduct the activities with more
efficiency and dedication. Leadership not only helps to enhance overall activities of the company
but also gives the motivation to conduct the activities in a right direction (Boedker et al., 2011).
Leaders in the market and competitive advantage
It has been evaluated that there are many leaders in the Australian market that has given
impact on the overall success of the companies related to software. The largest competitors in the
Australian market are Aldi, IGA, and Woolworths. It is seen that many innovative products are
introduced by the leaders in the Australian market so that competition level can be dominated.
The unique technologies considered by the organizations help to offer competitive benefits. The
pricing and the product strategies are considered by the competitors so that products and services
can be differentiated (Arvidsson, Holmström and Lyytinen, 2014). It will assist in overcoming
the rivalries in the market. Cole's consider distribution model to distribute the products and
services to the consumers. These leaders will assist in analyzing the demands and expectation of
the users in the Australian market. This will offer various competitive advantages to the
competitors.
Challenges and Recommendations
There are various challenges and issues which are faced by the software companies at the
time of considering the accounting software packages and ERP system within the company. It
can be analyzed that accounting software can be accessed through the internet so delays and
errors take place due to the distance of the centers related to data. In this process, the issues are
concerned with the speed that is faced by the organizations and customers in the workstation. It
is analyzed that many customers are frustrated because their accounting software packages are
not effective. It also gives impact to the goodwill of the organization (Galliers and Leidner,
2014).
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The accounting packages are costly and they are not offering proper information to the
customers. Also with this, it can be analyzed that accounting software packages are not able to
search the data file in the company (Henfridsson and Lind, 2014). The users have replicated the
information to the other location. It has given impact on the profitability and also on the
sustainability of the company. It can be analyzed that the competitors can manipulate and sort
out the data of the organization by considering the full software unusable. These challenges and
risks are managed by the organization at the time of searching and flourishing the business
globally (Chang, 2016).
It is recommended that Coles should offer cross-cultural training to the workers so that
business actions and the process can be carried effectively. Cloud-based accounting software
should be considered by the company so that the problems can be managed like the application
and software. Also, alternation should be done by the company in ERP system and custom
software so that advantage of rivalries can be achieved. The latest technologies and tools should
be considered by the company. It will assist to attract and retain the diversified employees at the
workplace (Leonardi, 2015).
The employees will give their best towards the activities of the company. The
organization should also emphasize the sustainable human resource management so that right
candidate can be selected for the right job. It is important to select the right candidate so that the
activities can be conducted in a right manner and also with proper efficiency. If right candidates
are selected for the job post then more efficiency in the work can be seen towards the work.
Conclusion
The discussion elaborates that how the organization considers ERP system and
accounting software packages so that the products and services can be rendered in the global
market. The evaluation states that ERP system and accounting software packages are so essential
for Coles to enhance the wide range of products in the supermarket. There are also various
operational and control problems that should be managed by the organization so that proper
implementation of ERP system and accounting software packages can take place. Also, it is
important for the company to compete in an effective manner so that goals and objectives can be
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accomplished in an effective manner. It is important for the company to focus on achieving the
competitive advantage so that in the right direction, the activities can be conducted smoothly.
References
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Journal of Strategic Information Systems, 23(1), pp.45-61.
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Boedker, C., Vidgen, R., Meagher, K., Cogin, J., Mouritsen, J. and Runnalls, M.,
2011. Leadership, culture and management practices of high performing workplaces in
Australia: The high performing workplaces index. University of New South Wales, Australian
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Boonstra, A., 2013. How do top managers support strategic information system projects and why
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Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
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