Strategic Information System Analysis for Wesfarmers Business

This report provides a comprehensive analysis of a strategic information system, focusing on its application within a business context, specifically using Wesfarmers as a case study. The report examines the company's conglomerate structure, operational issues, and the potential implementation of an Enterprise Resource Planning (ERP) system. It delves into sales processes, identifies potential control problems, and explores the development and adoption of accounting software. The analysis includes an overview of the current market size and competitive advantages, highlighting the leadership strategies employed. The report also addresses current gaps and challenges associated with the implementation of accounting software and ERP systems, offering insights into potential solutions. The report utilizes various sources to support its claims and provides a holistic view of strategic information systems within a business environment.

Running Header: Strategic information system for business and enterprise
LR
Authors Name:
Authors ID:

Strategic information system for business and enterprise
According to Roberts, M. (2016), it has been stated that the below presented summary
will be presenting a substantial contribution to the body of concept on Strategic Information
Systems. The author observed that these systems are developed in response to corporate business
initiatives; these systems are developed so as to provide the business a position of competitive
advantage. It has been considered as a salient feature n the sector of information technology.
This systems aids the business corporations in categorizing the processes related to stores and
also transformation of data is also done which has been created and received.
Current organizational structure
According to MCArthur, T, (2014) it has been observed that Wesfarmers has adopted the
conglomerate structure for the organization. On the basis of this organizational structure, it has
been described that the structure is the amalgamation of the of two or more business entities in a
single corporate structure. This forms a group of companies that usually involves a single parent
company and different subsidiaries. However, in a conglomerate, diversification of the business
in the companies is normal practice, and usually these companies depict a multi-industry
corporate structure. These corporate structures are often multinational. As Wesfarmers has been
astute – holding up calmly to buy quality organizations at engaging costs throughout the years
and in the process making a stone strong aggregate structure. This structure has made the
business entity in minimizing the investments risks and also a capital market will be created
within the organization so as to enhance the growth.
Operational issues
Moreover, it has also been noted by the author, that the above mentioned organizational structure
is also becoming a reason for number of operational issues which has been discussed further. As
the size of the group or the corporation is expected to increases, there will be an increase in the
expenses incurred in the managerial operations and activities (Galliers & Leidner, 2014). Also
there are number of issues related to accounting, for instance, there will be complexity in the
consolidation and group disclosures. Inertia has made a decline in the innovation and creativity
among the employees and which has also been considered as one of the operational issue.
System acquisition method
ERP can be considered as the most likely system acquisition method. Enterprise resource
planning (ERP) is a system which has been described as the business management software
(Peppard & Ward, 2016). This will enable Wesfarmers in utilizing a mechanism of integrated
applications for the management the business operations and also this system will allow the
business corporations in automating a number of back office function which are associated with
technology, services and human resources.
Sales flow chart
The below presented flow chart is dictating the sales procedure which has been followed by
Wesfarmers for executing the sales and making the goods available for the consumers. The
process has been segmented in the following steps.

Strategic information system for business and enterprise
The first step involves prospecting .i.e. finding the customers, analyzing the needs and the
requirements and after that presentation of the order sheet which contains the details about the
products which is essential for the customers while placing the order (Cassidy, 2016).
The next is the approach which is to be made by the company towards the customers. A good
approach will determine the success path of the sales process. The salesperson should have a
good knowledge about the products which re to be sold.
The assessment should be scheduled in order to determine the needs of the consumers. This will
aid the salesperson in directing the efforts which are to be made so as to sell the products to the
targeted consumer.
After that the products are required to be presented in-front of the consumers. This will aid in
developing the will to buy the product (Willcocks, 2013). A strong and attractive presentation
will ensure a positive response of the buyer towards the product.
Most of the sales process fails as the sales person fails to close the process effectively. This has
been considered as advancing the process towards getting an ultimate order.
The last step in the process of taking the follow up, a good follow-up wills double the success of
closing ratio.

Strategic information system for business and enterprise
Control problems
The below mentioned are some of the control problems which can be faced during the process:
The warehousing managers and the supervisors are expected to update the inventory subsidiary
ledger and accounts.
The manager determines what should be ordered (Aversa, Cabantous & Haefliger, 2017).
The following are the frauds which can occur in this system:
Since the warehouse manager selects the supplier and the order is placed, the inventory
can be ordered which is not needed or is expensive as compared to the market price from a dealer
with whom he has a personal fraudulent setting. In against of this the dealer is expected to pay a
kick back to the warehouse manager.
Vendor fraud can also take place in this scenario, where the manager authorizes order and
receives the goods. The manager can present himself as a process and execute fraudulent
transactions.
Development and adoption of accounting software
According to Realitysoftware, (2017), accounting software are considered as the
computer applications which are utilized for recording and processing the accounting
transactions and operations are executed as accounting information system. This system
comprises of the varied range of modules such as accounts receivable, accounts payable payroll
and trial balance. Moreover, the following are the benefits which were noted by the author. A
good planning and implementation of the accounting systems will aid mostly all the aspects. This
system is developed by combining the various models the dealing with some specific areas of
accounting such as,
Accounts payable- where the billing and payment of the due is done by the business corporation
Accounts receivable- In this system Wesfarmers will be entering money owed to it
Billing: In this the entity produces bills (Rainer et al., 2013)
General ledger: These are the company’s books
Payroll: The firm keeps a record of the salary, wage and associated taxes
Current market size
On the basis of the research executed from au.finance.yahoo, (2017) it has been concluded that
Wesfarmers is one of the multinational brand name in its own sector and has been enjoying a top
position. According to raszkiewkz, (2017), the key takeaways are presented by the author as
follows:

Strategic information system for business and enterprise
Revenue was seen to have a hike of 4.3% to $34.9 billion
Whereas, the Profit 13.2% to $1.6 billion
A half year fully franked dividend of $1.03 was declared, up 13.2%
The sector of supermarket has been dominated by a selected association of retail corporations, of
which Wesfarmers (Coles) and Woolworths are Australia’s largest. Both the business
corporations have experienced substantial developments over the last four decades; more than
doubling their combined market share to over 70 per cent of the country’s supermarket/grocery
sector. On the basis of the survey executed by the author it has been noted that the current market
share of the business entity is 35%.
Leaders in the market competitive advantage
As executed from the survey the author states that, Richard Goyder is the current chief executive
officer of the Wesfarmers Limited and prior to this he was appointed in this organization as the
Managing Director in 1993 and in 2005; he was promoted to the highest authority of the
organization. Richard’s leadership style is unique and effective and his promotion is the evidence
of his effective leadership techniques and styles (Bernus, Mertins & Schmidt, 2013). Along with
Richard Goyder, Rob Scott, current Deputy Chief Executive Officer of the Wesfarmers Limited.
Apart from these two officers, there are many more leaders preset in the Wesfarmers limited.
Leadership strategies adopted by these personalities have helped the Wesfarmers Limited to
establish their effective position in the global market. It is noticed that basically modern trait
theory of leadership and behavioral theory of leadership is being practiced in the workplace of
Wesfarmers limited. As these styles are the results oriented styles. Woolworths is the primary
co mpetitor of Wesfarmers and both of these organizations are expanded in foreign countries.
Their headquarters is situated in Australia only (Cecez-Kecmanovic et al., 2014).
The most appropriate and reliable technique used by Richard Goyder is retaining talent and key
employees. Retention of key employees is the biggest opportunity for every organization because
they understand the situation of the organization and the working methods are familiar with them
(Roberts, 2016). Appointment of any new employee rather being talented and experience, he
would require some time to settle down in the new business environment. Appointment
of new employee on the place of any experienced employee does not guaranty for positive
results but retention of key and experienced employee is the guaranty that organization does not
needs to suffer from losses or from uncertain situations (Harun & Hashim, 2017).
Current gaps and challenges in accounting software’s
Implementation of ERP system in the organization is not an easy task and all the processes
performed in the organization does gets affected from the implementation of ERP system (Iiis
2017). The first challenge would be challenge to use the new and advanced technique for its
users. Wesfarmers limited needs to appoint an engineer or an expert who could guide the
employees and the other members of the organization so that appropriate results could be
obtained for which ERP system was implemented (Sarker, Xiao & Beaulieu, 2013).
Other big challenge would be leakage of secret and confidential information of customers. This
is due to lack of awareness in relevance with the using advanced technologies which were
implemented with a view to increase the efficiency of the organization (Morecroft, 2015).

Strategic information system for business and enterprise
Implementation of ERP system could also leads to the retrenchment of those employees
who does not have enough information regarding the techniques.
In the limelight of the above executed analysis it has been concluded that Wesfarmers is
one of the multinational brand name in Western Australia, and its diverse business operations
comprises of, supermarkets, liquor, convenience stores and hotels; improvement; office
supplies; department stores; and an industrials division with businesses in chemicals, energy and
fertilizers, industrial and safety products and coal. The review includes the current organizational
structure adopted by the business corporation .i.e. conglomerate structure which has been proven
beneficial for the entity. The further analysis concludes the operational issues and the accounting
software packages which are required to be adopted by the business entity for the execution of
the accounting and other associated activities. Moreover, the sales procedure followed by the
business entity and also the current market share of the firm has been presented.

Strategic information system for business and enterprise
References
au.finance.yahoo, (2017), Yahoo finance, Assessed on 25th August 2017,
https://au.finance.yahoo.com/quote/WES.AX/analysts?p=WES.AX.
Aversa, P., Cabantous, L., & Haefliger, S. (2017). WHEN DECISION SUPPORT SYSTEMS
FAIL: INSIGHTS FOR STRATEGIC INFORMATION SYSTEMS FROM FORMULA.
Bernus, P., Mertins, K., & Schmidt, G. J. (Eds.). (2013). Handbook on architectures of
information systems. Springer Science & Business Media.
Cassidy, A. (2016). A practical guide to information systems strategic planning. CRC press.
Cecez-Kecmanovic, D., Galliers, R. D., Henfridsson, O., Newell, S., & Vidgen, R. (2014). The
sociomateriality of information systems: current status, future directions. Mis
Quarterly, 38(3), 809-830.
Galliers, R. D., & Leidner, D. E. (Eds.). (2014). Strategic information management: challenges
and strategies in managing information systems. Routledge.
Harun, H., & Hashim, M. K. (2017). STRATEGIC INFORMATION SYSTEMS PLANNING:
A REVIEW OF ITS CONCEPT, DEFINITIONS AND STAGES OF
DEVELOPMENT. planning, 3(2).
Iiis, (2017), Information technology system for competitive advantage,
http://www.iiis.org/CDs2008/CD2009SCI/MEI2009/PapersPdf/M704PV.pdf.
McArthur, T, (2014), Why Wesfarmers Ltd conglomerate structure is a winning formula,
Assessed on 25th August 2017, https://www.fool.com.au/2014/02/18/why-wesfarmers-
ltds-conglomerate-structure-is-a-winning-formula/.
Morecroft, J. D. (2015). Strategic modelling and business dynamics: a feedback systems
approach. John Wiley & Sons.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Rainer, R. K., Cegielski, C. G., Splettstoesser-Hogeterp, I., & Sanchez-Rodriguez, C.
(2013). Introduction to information systems. John Wiley & Sons.
Realitysoftware, (2017), Accounting software development, Assessed on 25th August 2017,
http://www.realitysoftware.ca/services/software-development/accounting/.
Roberts, M. (2016). Strategic Information Systems: Their Contribution to Organizational
Performance (Doctoral dissertation, University of Portsmouth).
Sarker, S., Xiao, X., & Beaulieu, T. (2013). Qualitative studies in information systems: a critical
review and some guiding principles. MIS quarterly, 37(4), iii-xviii.
Willcocks, L. (2013). Information management: the evaluation of information systems
investments. Springer.