Strategic Information System for Business and Enterprise Report

This report provides a detailed analysis of a strategic information system within a business context, specifically focusing on human resource management. It begins by examining the current organizational structure of the Commonwealth Bank, identifying operational problems and inefficiencies. The report then delves into system acquisition methods, including commercial software, customer software, and ERP systems, with a focus on the bank's adoption of ERP. A system flowchart illustrating the sales procedure is presented, along with an analysis of control problems. The second part of the report explores the development and adoption of accounting software packages, with a focus on Xero. It discusses present market sizes, leaders in the market and their competitive advantages, and current gaps or challenges encountered by users. Finally, the report concludes with recommendations for improvement.

Running head: Information system 1
Strategic information system for business and enterprise Human resource
management

Information system 2
Contents
Introduction......................................................................................................................................3
Part I.................................................................................................................................................4
Current organizational structure...................................................................................................4
Operational Problems...................................................................................................................5
System Acquisition Method.........................................................................................................5
System Flowchart.........................................................................................................................6
Control problems..........................................................................................................................7
Part II...............................................................................................................................................9
Development and adoption of the accounting software package.................................................9
Present Market Sizes....................................................................................................................9
Leaders in the market and what gives them the competitive advantage......................................9
Current gaps or challenges encountered by users......................................................................11
Recommendations......................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Information system 3
Introduction
Technology in the business has been changing rapidly, it is vital for the organizations to make
changes not only in the relation of technology but also in the organizational structures. The
companies are facing numerous issues or errors while operating its systems which can be
reduced with the help of effective strategic information system. This system is able to provide
several benefits to the company such as cost benefit, effective control over the system and
increase the efficiency. Commonwealth Bank will be taken to describe the organizational
structure and discussion will be made on its operational issues and ERP System. This paper
emphasizes the operational issues which are in the organization due to its structure. The system
flowchart of the sales procedure will be demonstrated along with the control problems and
concerns. At last, the leaders will be identified in the market and the gaps will be analyzed which
rise due to ineffective accounting software.

Information system 4
Part I
Current organizational structure
The Commonwealth Bank of Australia is multinational bank which provides numerous financial
services to its customers involving funds management, insurance, superannuation, investment,
business and institutional banking and broking services. The present organizational structure of
the bank is effective as it adopts hierarchal organization structure. The number of employees in
this organization is approx 52,000 who serve better finance services to customers (Atlassion,
2018). Board of commission is liable to manage the entire organization where president Director
of this company is Lauren Sulistiawadi handles various department of the bank. The main
beneficiary factor of this organizational structure is that it divided into various departments such
as retail banking, SME banking, Risk Operation, Operations &IT, compliance, legal & corporate
security and finance and treasury. All departments have own director and sub department which
facilitates organization to go ahead without any communication gap.

Information system 5
Operational Problems
There are number of operational issues presented in the organizational structure of the company.
These kinds of issues can reduce the efficiency of the firm which may impact the organization in
adverse way. According to the Dwivedi, et. al., (2015), complex organizational structure of the
bank can bring the inefficiency. It is required for the organization to make changes in the
structure time to time so that the operational issues can be addressed in sophisticated manner.
The direct consequences of an operational issue avoiding bank from submitting payments are
those that can be quickly traced to the bank with the issues regarding operation, and that could
also to a definite amount be calculated by exploring the flow of payments to and from the bank.
There are various operational issues which The Commonwealth Bank could experience because
of this structure. The regulatory pressures could be increased due to this organizational structure
as it has been found in the research from the Federal Reserve over the last years that over burden
of regulations can decrease the productivity of the bank. On the other hand new regulations
might slow down the lending ability in the community and enhance the costs of that lending.
This bank is using commercial software, ERP system and many banking software which entails
entire information about the organization and its customers. The inefficiency in staff could bring
the issues for the company as it is vital to provide training program regarding this software to
each employee of the organization (Dwivedi, et. al., 2015). However, the organizational structure
is effective of this bank but due to various departments within the operation, there could be issue
arise in the form of miscommunication which may discourage the employees. Along with that
the organizational structure could increase the cost of software due to inefficient knowledge
about the shortcuts and whole process of managing the work.

Information system 6
System Acquisition Method
There are numerous methods of system acquisition that can be executed by the Commonwealth
Bank to handle their business operation and its activities in an adequate way. The bank manages
the large number of finance activities that is why it is required for the bank to execute unique as
well as dynamic software so that the present situation of the company can be evaluated and
analysed in sufficient way (Galliers and Leidner, 2014). The system acquisition method is
utilized by the bank to manage its financial activities so that any barrier could not come in the
growth and development of the business. Some of the implemented software by the company has
been defined below.
Commercial software is able to increase the selling of services and products which can be
refereed as the computer software. It is executed by the company to maintain the records of the
company in an efficient manner. MS Office and Microsoft windows are the example of this kind
of software which facilitates to increase the competitive advantages of the company.
Customer software is used and adopted by some specific companies because it uses after
considering the needs of the customers regarding the products and services. It is being used by
companies to tackle the account system of other company which helps to reduce the intrusion
within the organization.
Enterprise resource planning (ERP) system is refereed as the business process management
software that permits the organization to use a system of integrated applications to manage the
various activities of the company in sophisticated manner (Galliers and Leidner, 2014). ERP
system has the capability to forecast the demands of the products of the company which role is
huge in maintaining the utilization of resources. Data Integration is given by this software to The

Information system 7
Commonwealth Bank as the large amount of data regarding financial activities can be transferred
by this bank from one place to another.
It has been found that ERP software is adopted by The Commonwealth Bank among all these
varies of system acquisition methods. It provides the best way of handling the various financial
activities of the bank and manages the large number of clients ay once as entire resources can be
aligned in systematic manner. It is facilitated to reduce the cost of the operations and smoothen
th process of work by reforming it along with that it brings the collaboration between different
kinds of departments and the data of the financial activities is stored in centralized system.
System Flowchart
As per Gable, (2010), a system flowchart is considered as the physical design technique that
defines the activities which would be carried out in an information system. The process of the
Commonwealth Bank is defined in the flow chart that shows the ability of selling its financial
services to a large number of customers. The role of software application is huge in managing
the sales and measuring the process of business. The system flowchart is able to define the sales
procedure and advanced accounting services.

Information system 8
It is the major part of the sale which is implemented by the company for increasing the sales and
revenues of the company. The flaws can be explored with the help of this flow chart and it is
done by providing accounting services to the large numbers of consumers (Gable, 2010).
Control problems
It has been found from the journal article of Chen, Mocker, Preston and Teubner, (2010), that
there are various kinds of control issues that can reduce the efficiency of the entire system. There
are various kinds of controls such as Detective control, preventive control and Corrective control
which perform to prevent internal errors as well as external error. It has been found that the
Commonwealth Bank has various kinds of risk such as frauds, access, mischief, hacking the data
and errors. These risks are at high level in the organization that show the weaken control system
of the organization (Schlagwein, Thorogood and Willcocks, 2014).
It is vital for the Commonwealth Bank to consider the aspects related to the cost retaining and
hiring new employees. Technical issues are being the major concern for the company as due to

Information system 9
this company is unable to satisfy its customers. In addition, the employees of the company are
not aware how to use latest technology in managing the data of the customer as well as the
organization. According to Chen, Mocker, Preston and Teubner, (2010), that it has been analyzed
that application complexity and a user experience is significant concern for the company as it
may impact the sustainability of the firm. ERP Software entails application complexities which
can be the reason of improper collection of information regarding software and application.
It has been stated by Galliers and Leidner, (2014), because of various reasons, it is probable that
presented data in the company can be corrupted by using illegal methods by hackers. The
Commonwealth Bank has huge responsibility of taking care of financial assets of people so it is
necessary for the organization to keep high level of control because it is hard to observe that who
is working in the favour of the company or against of the company (Galliers and Leidner, 2014).
Insider attackers are becoming the huge challenges for the bank so Commonwealth bank should
keep the higher security system within the organization.

Information system 10
Part II
Development and adoption of the accounting software package
As per Pearlson, Saunders and Galletta, (2016), accounting software is taking in use by
organization for recording and processing the financial transactions which is generally come
under the sort of accounting information system. Furthermore, accounting software is facilitated
to take proper decisions regarding the financial affairs of the company. It shows that the role of
accounting software is not limited up to handling the financial activities but also it enables
management of the company to take appropriate decisions (Xero Blog, 2018). The
Commonwealth Bank uses this software for the purpose of enhancing the productivity of the
employee and amplifying the security of the financial data (Galliers and Leidner, 2014). The
growth of ERP System within the organization is beneficiary for the company as it enlarge the
range of profitability of its revenues.
It has been analyzed that the Commonwealth Bank is using Xero accounting software to save the
bank feeds automatically on daily basis. It would become easier for the bank to provide a
apparent overview of financial records. As Xero is in cloud, the bank do not require to install any
kind of software because the employee so the company can use it by adding username or
password given by the bank. There are some competitors of Xero such as Wave, NetSuite ERP,
FreshBooks and Financial Force Accounting (Xero Blog, 2018). The customers of
Commonwealth Bank can make bank feeds from wither their NetBank account or their Xero
account.

Information system 11
Present Market Sizes
It has been found that the market capitalization of the commonwealth bank has developed above
$100 billion for the very first time as its investors are chasing constantly for higher yielding
stocks. The well regulated environment of the organization is strength along with the consistent
affirmative earnings from CBA. The subscribers of Xero who bank with Commonwealth bank
will get faster and provide the accurate information about the financial activities that will help
customers of using time in correct way. It opens up the probability of additional innovations that
will make it easier for small kind of businesses in which they can access to other services in
more efficient manner.
Leaders in the market and what gives them the competitive advantage
It has been analyzed that there are many competitors available in the market that can compete
them to attain the competitive advantages. Some major competitors in the market are ANZ
Australia, Bankwest, Westpac, ASB Bank and StGeorge Bank Australia that use accounting
software in an adequate manner to retain the customers. Along with that there are some leaders
in the market of accounting software that can become the Xero alternatives such as FreshBooks,
QucikBooks, Wave, Intacct, Brightpearl, NetSuite ERP, Financial force accounting and many
more (FinanceOnline, 2018).
The financial services sector of Australia is the greater contributor to the national economy
which contributes around $140 billion to GDP a year. It has been considered as the major driver
of growth of the economy that employs around 450,000 people (Atlassion, 2018). Various
accounting software are being used by market leaders of banking industry. Software has its own
benefits that give competitive advantages to the company as it has been found that CBA has
decreased its expenditure regarding IT by 3%, its retail costs by 31.8% and its cost to Income

Information system 12
ratio by 46% which increase the competitive advantages of the company. It has been found that
in October 2011, “Kaching” is launched by CBA which is Smartphone app, initially for iOS and
later for Android devices. This app would be facilitated many customers to demeanour payments
to telephone numbers, facebook accounts and email address. This app is considered as the key
step in linking online and mobile payments by enabling to bring peer to peer payments by using
their smart phones in order to transfer fund. This app has been downloaded larger than 400,000
times and over AUD 1 billion have been practiced using it (Schlagwein, Thorogood and
Willcocks, 2014). Thus, CBA is attaining competitive advantages by satisfying the customers
and it has understood how to utilize the transformation of technology to help comprehensive
transformation in order to enhance into one of the most innovative institutes of financial among
established banks.