Strategic Information System Report: Austrade Case Study Analysis

This report provides a comprehensive analysis of Austrade's strategic information system. It begins by examining the company's hierarchical organizational structure and identifies potential operational problems stemming from its structure. The report then explores the preferred system acquisition method for Austrade, advocating for commercial software. A system flowchart of Austrade's sales procedures is presented, followed by a discussion of methods for identifying and controlling problems within the company. Part 2 delves into the development and adoption of accounting software packages, assessing their impact on Austrade's success. The current market size of Austrade is provided, along with an identification of market leaders and current gaps or challenges encountered by users. The report concludes with a reference list.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System
Name of Student
Name of University
Author Note

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STRATEGIC INFORMATION SYSTEM
Table of Contents
PART 1.......................................................................................................................................2
1. Current organisational structure.........................................................................................2
2. Operational problems of Austrade......................................................................................2
3. Preferred system acquisition method..................................................................................3
4. Describing a system flowchart of the sales procedures of Austrade..................................3
5. Identifying and controlling the problems in the company..................................................3
PART-2......................................................................................................................................4
1. Development and adoption of accounting software packages...........................................4
2. Current market size.............................................................................................................4
3. Identifying market leaders..................................................................................................5
4. Identifying current gaps or challenges encountered by users.............................................5
Reference List.........................................................................................................................7

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PART 1
1. Current organisational structure
In order to complete the assignment, Austrade has been taken into consideration.
Austrade is a trade, investment and promotion Government company. The organisational
structure of the company suggests it to be a hierarchical pattern. This includes the flow of
delegation of authority from bottom to top. Every member needs to follow a systematic
method in order to reach the top level. The hierarchical structure has many advantages, as the
people cannot leap forth any person while trying to make any grievances or complain.
Similarly, disadvantages may also occur in a way that the solving of the grievances may take
a lot of time. Hence, certain discrepancies may arise between the employer and employees.
Apart from this, the organisational structure maintained by the company is effective in
maintaining balance in the company.
2. Operational problems of Austrade
Due to the lengthy process of mitigation of grievances, problems may arise between
the top level and the bottom level people. The same problem may also arise in the operational
department. This is because decisions regarding the organisation need to be made based on
the authentication of the managers. Hence, this can take time due to the systematic approach
information flow. The operational problems faced in Austrade can result in
miscommunication. This is mainly because employees at the lower level cannot approach the
high-level employees due to the power distance. Thus, there remains less guarantee about the
ways by which emergency information can be provided to the top-level management. Thus,
this can create a serious threat for the organisation (Leon 2014). This is because an improper
flow of information can result in failure of productivity.

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3. Preferred system acquisition method
Austrade is a company, which deals with the relation between the promotion of the
product and investments. Due to all these, process ‘commercial software' would be
appropriate for the company. The commercial software helps an institution with all the
promotion that a company needs along with helping the traders with the products the trader
wants to sell. The Commercial software has its own strengths and challenges and it may
attract customers. It provides computers with a lot of facilities and productivity. Commercial
software also meet the business requirements. Most customers and the vendors find it easy to
work using commercial software. The management of the operations is multifaceted as the
organisation deals with the promotion of foreign investments. Thus, due to these reasons, the
use of commercial software can help Austrade gain a competitive advantage in the market.
4. Describing a system flowchart of the sales procedures of Austrade
The sales procedure of Austrade deals with marketing, promotion, investment and
sale. The company mainly focuses on marketing, which may attract the buyers. This, in turn,
may attract them for making an investment during the end sale of that product. According to
Drew, McCallum and Roggenhofer (2016), the process is carried out in relation to the
business objectives, opportunities, agreements and satisfaction of the customers. In these
ways, the company attracts the buyers who are interested in investing in the product
presented to them. Austrade relies on agents or distributors to represent the interest of the
company. These agents help the company to attract different types of customers. The agents
provide guarantees to the customers that attract them towards the product.

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Figure: Sales process of Austrade
(Source: Created by author)
5. Identifying and controlling the problems in the company
Every Australian company has its own IP protection, which helps the company to
work effectively. However, IP address only gives protection in the country. Once the
registration is finished, the company needs to apply for foreign applications. After getting the
foreign IP address the company needs to decide upon the choice of dealers. This helps in
dealing with foreign countries. Issues that may affect the Austrade include rules of
competition, registration of the company and liability of the product. Austrade rarely gets
involved in the disputes with other companies. This is due to the fear of facing fraud charges
that may be difficult to evict. Hence, Austrade remains clear of the raising controversies that
may threaten the company. As a public sector, it faces several accusations that may help
hinder the progress of the company.

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PART-2
1. Development and adoption of accounting software packages
According to Mas et al. (2014), the development of accounting software can have a
serious effect on a company. This can lead to the success of a company in such a way that it
increases the sales and productivity of a company. In the case of Austrade, the adoption of the
commercial software can help the company gain a reputation in the business world. The
accounting of the information can have a significant effect while maintaining the investment
chart of the company. This can help in identifying the ways by which proper investment can
be made to an organisation that tends to provide safety for Austrade. However, time may be
needed to adapt to the change in technique and acquire knowledge of the software system.
2. Current market size
The current annual revenue of Austrade is 200 million dollars according to 2012
reports. The current CEO of the company is Philippa Dawson. The company deals with
Australian Government’s trade, investment and education promotion. The company helps in
the development of international market, earn productive foreign investments, promotion of
education and development of tourism industry. This helps other investors to get attracted
towards the promotion of the product. About 565 people work in Austrade. Austrade aims in
assisting other Australian companies to connect with buyers in markets. The company also
attracts investors in Australia. It is also responsible for promotion and attraction of foreign
investments. Between 2004 and 2006, the company granted access funding of total $394,009
to a fraud company (Austrade.gov.au 2017). Thus, over the years, the company have built a
reputation for itself in the country and in the global business market.

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3. Identifying market leaders
Despite its popularity, Austrade competes with different Government industries in the
country. The company faces a serious threat from Department of Human Services which is
currently ranked among the highest rated companies in Australia. The company employs
about 34,575 people. Apart from this, the Department of Infrastructure and Regional
Development is also a strong competitor of Austrade. The company was founded in 2013 and
in quick time have amassed over AUD$6.9 billion annual budget. These companies pose
threat to Austrade in terms of market share and investment. However, Austrade has diverse
markets along with diverse customers that the other competitors do not possess. The other
organisations work in different fields but with a similar perspective of human satisfaction.
Therefore, Austrade can gain a competitive advantage over the rivals based on this positive
point (Austrade.gov.au 2017).
4. Identifying current gaps or challenges encountered by users
Austrade is using the ‘SHAREWARE' commercial software. The commercial software helps
the companies to develop new attracting strategies and ideas that may help the customers to
know about the market after getting attracted to the products. Shareware helps the companies
to evaluate the possible strategies that one needs to formulate a perfect solution for sales.
Austrade helps other people to know about the market and build strategies to attract the
customers to a related product. As the goal of the company is to develop the relationship
between other companies the use of Commercial Software’ can help Austrade in achieving its
goals (Van Wart 2017). However, the challenge of the company will be to ensure that the
gaps relating to the knowledge of the technology and the talent of the employees close.

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Reference List
Austrade.gov.au. (2017). Austrade, Australian Government - Austrade. [online] Available at:
https://www.austrade.gov.au/ [Accessed 1 Sep. 2017].
Drew, J., McCallum, B. and Roggenhofer, S., 2016. Journey to lean: making operational
change stick. Springer.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Mas, J.F., Kolb, M., Paegelow, M., Olmedo, M.T.C. and Houet, T., 2014. Inductive pattern-
based land use/cover change models: A comparison of four software
packages. Environmental Modelling & Software, 51, pp.94-111.
Van Wart, M., 2017. Leadership in public organizations: An introduction. Taylor & Francis.