Strategic Management and Information System Analysis: Atlassian Report

This report provides a comprehensive analysis of Atlassian's strategic management and information systems. It begins by examining the company's current hierarchical organizational structure, highlighting operational problems arising from its complexity, such as data management issues and the need for employee training. The report then explores Atlassian's system acquisition methods, focusing on the implementation of ERP software and its benefits. A system flowchart illustrating Atlassian's sales process is presented, followed by a discussion of control problems, including cyber-security threats and data corruption risks. The second part of the report delves into the development and adoption of accounting software packages, specifically Xero, Jira, and Confluence, and assesses the present market size and competitive landscape. The report concludes with recommendations to address identified gaps and challenges, providing insights into Atlassian's strategic approach to information systems and business development.

STRATEGIC
MANAGEMENT
AND
INFORMATION SYSTEM

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Contents
INTRODUCTION.................................................................................................................................1
PART 1..................................................................................................................................................2
Current structure of organisation.......................................................................................................2
Operational problems linked with this structure................................................................................2
System acquisition method................................................................................................................3
System Flowchart..............................................................................................................................4
Control problems...............................................................................................................................5
PART 2..................................................................................................................................................6
Development and adoption of accounting software packages............................................................6
Present market size............................................................................................................................6
Market leaders and the things that gave them competitive advantage................................................7
Gaps present or the challenges that is faced by users.........................................................................8
Recommendation...................................................................................................................................8
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

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INTRODUCTION
Technology has deepened its roots in various industries. Organisations need to ensure that it
has adopted the kind of organisational structure that is according to the requirements of the
industry. Companies need to incorporate best o technologies so as to ensure sustainable and
productive business (Galliers and Leidner, 2014). In any firm there are several operational
problems and the use of strategic management software can be beneficial for making the
whole business process easier. ERP systems are one of the best software that can help a
company to achieve its goals and objectives as they help in planning of the resource
utilisation. Atlassian is one of the biggest IT firm in Australia and its products like Jira and
Confluences has to be to be one of the best software accounting packages. It is providing its
services in more than 170 nations. This report showcases the operational problems that exist
in an organisation because of the organisational structure it has incorporated. This also
presents the system flowchart for Atlassian and frauds as well as control problems that are
exist in the system. It also highlights the challenges and gaps that are present accounting
software packages.
PART 1
Current structure of organisation
It is important for the organisation to have a structure that helps in smoothen their work
process. Atlassian has adopted a hierarchical structure where the role and responsibilities of
each individual is clear to them. As per Gullkvist and Jokipii, (2013) Management
information system has a close relation with the organisational structure. This is because the
better the organisational structure the higher will be the chances that information can be
handled in a better way. Atlassian is a major player in the Australian software industry and is
in the business of generating and developing of the products. They do it for IT officials,
Content managers, Project managers, software developers and other IT officials. This firm
comprises of approx. 70000 or more clients and have employee strength of approx. 2300
employees.
Large workforce and client base requires an effective MIS organisational structure (Hall,
2012). This is because all these stakeholders act as a node in the MIS network. Pyramidal
structure of MIS organisational structure facilitates the hierarchical organisational structure.
Four levelled information resources are present with this pyramidal structure. It is fact that

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level of information lies upon the organisation’s structure. The level at the top helps in policy
making and strategic planning at the upper management level. Information generated at
second level resources supports in tactical planning for management control and decision
making. The third level of information resources assists in operations and controls in the firm
that are done on daily basis. The bottom most level is having information linked with
transactional processing. Since the decision making at various level of the organisation is
different hence need of information at each level also differs the same way (Schorr, et al.,
2013).
Operational problems linked with this structure
Many operational problems arise in any firm due to organisational structure present at
Atlassian. Most of the issues arise because of structural faults or defects that are present. All
the present issues are not good for the firm and are capable of reducing work related
efficiency.
Doar, (2011) believes that due to complexity in the organisational structure, several errors
occur in the work process. Various internal and external factors are responsible for these
operational problems. It has a negative effect on the organisation as it alters the original
information carried by the data. Having so many nodes in the operational mechanism also
results the same. Data abstraction needs to be ensured at multiple levels hence making the
system more complex and ultimately results in some kind of inefficiencies (Lim, 2013). Data
management software is often rigid which leads to loss of crucial data. This happens as the
source from where data gets generated is neglected most of the time. It is dangerous as the
source may contain some real time and crucial data. Additional processing in the MIS makes
the information less relevant and valuable.
As the organisational structure seem to be complex hence a timely maintenance is required.
This must be done by IT professional as layman will not be able to do it. The talent for the
specific purpose can do it easily. The effective utilisation of information systems is bit
difficult and hence requires trainings for employees at different levels. This must be done as
per the requirement and to improve the usability of the Information systems. Atlassians’s
information system has to be given for revision in terms of inputs and outputs. This could be
done through the help of suppliers or IT professionals.

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System acquisition method
Various methods for acquisition of system are available and can be utilised by Atlassian for
managing their routine activities and operations in business. Since activities are in large
numbers hence the software system must also be dynamic and unique. It must be done as per
the position of the company in the industry. Better strategies for growth and development can
be achieved through the uniqueness it has.
Christauskas and Miseviciene, (2012) states that commercial software to be the ones that are
designed for selling of products and services. Such proprietary software has been
implemented within the firm for effective record management. Office writers, MS office are
some common type of commercial software.
Toth, (2012), states that custom software are developed or created as per the client’s
requirement. It is organisation specific and must be done as per the work they do. This type
of software is effective since it reduces external intrusions and alterations and satisfies the
need of the company.
As per Belfo and Trigo, (2013) ERP or Enterprise resource planning is a kind of system that
assists in the plan making for appropriate resource utilisation. It is business process
management software that permits the company to use integrated application software for
controlling the activity and operations in a better way. These systems are making the forecast
related to demands of firm’s product which is essential in sustainable resource utilisation.
Apart from this ERP system provides the features like data Integration to Atlassian as
everyday huge data can be transferred from one place to another.
According to Atlassion, (2018) among all the type of system acquisition method the cited
firm have taken use of ERP software. It is because ERP software is capable of giving
information linked with resource utilisation. ERP systems are taken into account due to its
uniqueness and the support it gives to trade process and business. It also assists them in
managing huge numbers of clients at the same time because all the resources are aligned in an
ordered manner. Systems like ERP ensure trade processes to be unique and assists firms to
smoothen their business operations. It can be done because it streamlines the work process
and brings collaboration among various departments which is facilitated by storing the data
into centralised system. It improves mobility and minimises the operational cost.

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System Flowchart
In the views of Atlassion support, (2018) it is a flowchart which is mainly a physical design
technique that indicates the operations and activities which would be done through any
information system. This flowchart describes the process utilising which Atlassian performs
its operations and sells its services and products in the market all around the world. With the
assistance of software application, such system flowcharts help in measuring the business
operations and helps in controlling the sales. Training and development sessions can be
carried out appropriately by starting with organisational system flowchart. Along with it
appropriate and innovative accounting services may be provided with assistance to system
flowchart.
Image below describes the sales flowchart of the Atlassian:
Source: Sales Flowchart, 2018
This type of system flowchart smoothen the working process and can identify the way
through which sales can be enhanced. System flowchart is a part of sales that is started within
the firm. By the help of system flowchart, the faults in the system can be found out which
enhances the sales and revenue. It is done by giving accounting related services to wide range
of consumers.
Control problems
According to Bodnar and Hopwood, (2012) various type of control problem exists in any
business and hence wide range of control problems also occurs. Most common type of
controls is Detective controls, preventive controls and corrective controls. At different levels
different controls exists. Frauds, Mischiefs, errors and access are some of the type of risk that
exists. Such problems persist even when control shield is incorporated by Atlassian. It is

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based on the fact that many external factors find the control system’s weaknesses and attack
through that way.
Along with it, various other type of control problems are also present, Atlassian has to deal
with all these for example cyber-security, data collection etc. Software advancements mainly
associated with the field of cloud storage are at risk due to the increasing hacker’s activities.
Protecting data is crucial hence various methods need to be used. Because of presence of
active hackers there is always a chance that system may get hacked through which data leaks
could be possible and might go into the hands of unauthenticated personnel. Many type of
information associated with operations of the company can be stolen by hackers.
Kallunki, Laitinen and Silvola, (2011) suggests that because of several factors, it is possible
at any time that data present with the company can get corrupted. This case arises mostly
when hackers just have the intention to damage the information system. Such kinds of attacks
are not easier to found out and may lead to insignificant information to be accessed through
data. Most common type of such attacks is financial statement frauds. Profits or revenues are
directly affected and hence can prove dangerous for the firm. Because of enhanced
application complexity, the organisation is unable to minimise the application complexities
inside the companies like Atlassian.
PART 2
Development and adoption of accounting software packages
Atlassion, (2018) states that accounting software that is used by the organisations generally
lies in the division of accounting information system. It is largely utilised in the storage and
processing of transactions between the different individuals. Accounting software depends on
cost and complexity. Further such accounting software helps a stable decision making
especially that are linked with firm’s financial affairs. It assists in expense management
which is done on weekly terms. In Atlassian accounting software are utilised for earning
higher revenues and returns, for enhancing productivity as well as giving higher security to
financial data.
Atlassian have developed huge number of accounting software according to their personal
requirement and demand of their clients. In the past they were using Confluences and JIRA
software as an accounting system but now they have developed software called Xero.

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Confluences and Jira are very effective tools which assist company in eliminating bugs in the
process and also reduce the number of mistakes in Project management. This was a tool that
is designed for agile teams that gives higher flexibility to the customers for managing their
projects. It empowers consumers of the firm to scale the tools for speedily changing dynamic
work environment. Both these tools help in achieving right balance among standardisation
and client’s freedom. They offer the package of all three tools in collaboration as per the
client’s requirements so as to achieve higher level of performance. Major competition is
provided by competitors like Trello, Basecamp, Share Point etc.
Present market size
Atlassian has approximately 75000 customers that are present in 170 nations (Atlassion,
2018). They offer their services in almost all the industry. Because of adopting innovation
they developed several software packages. All these products of theirs have helped them in
capturing major part of the market. According to a research this company is the biggest
partner firm of the Australian companies. Their plan of product development will make them
capable of reaching to rest other parts of the world. Jira’s share in the market has been
illustrated in the table below.
Country Market share
United states 40.83%
China 1.15%
Switzerland 1.15%
France 3.04%
Netherland 3.35%
Canada 4.04%
Australia 4.30%
U.K. 5.77%
Germany 22.06%
Market leaders and the things that gave them competitive advantage
Cassidy, (2016) States that many competitors are present in the accounting software market.
Few of the larger competitors are Rally, Asana, Trello, Redmine, Pivotal Tracker,
VersionOne, Basecamp, Bugzilla, Frogbugz, TFS, Axosoft and GitHub issues, Intuit
Quickbooks, myob etc. Along with this after 2011, they have lost their major part of the

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market to some other firms like Google search Appliances, Liferay, Adobe CQ, dotCMS,
Siteimprove etc. At present Xero, Intuit Quickbooks and myob is leading in the market as it
gives software platform which is specifically designed for the unified DevOps and Agile.
Atlassian’s product strategy distribution model along with their adopted organisational
culture provides them competitive advantage over their rivals in the industry. For start-up or
team based projects, their products act as a very helpful tool. Atlassian’s product attributes
like built for teams, adaptability, easier to use, being versatile in nature, open and being
integrated etc. gives the edge over most of their competitor’s market. This model’s trait
involves being affordable and simple, highly driven through innovation, being organic and
expensive, scale oriented and being data driven (JIRA Software, 2018). All provided traits
and attributes helps them and their client’s in dealing with the global environment which is
capable of attracting more number of potential clients towards their products.
Gaps present or the challenges that is faced by users
XebiaLabs, (2018) believes that there are major gaps present in the products. This also leads
to many types of challenges for accounting software package users. All the gaps and
challenges have to be eliminated so as to achieve higher product sale. It is a challenge for the
firm as the numbers of potential hackers are increasing on daily basis. In the existing
environment they must ensure that that the software packages that is utilised by clients must
be highly safe. Number of fraud cases has also increased which compels Atlassian to
maintain the standards of their products which will help in reduce the amount of threats
present. It is crucial for the company to incorporate data abstraction feature in their products
which requires an excellent platform and hence data accessibility is given to very less
stakeholders (Soudani, 2012).
Recommendation
In the present global environment and the amount of risks that is present in the industry, it is
always beneficial for their clients and the company itself to adopt good firewalls that are
protected with the authentication systems and passwords (Wagner, Moll and Newell, 2011).
Along with this they also need to ensure that they have a greater control on their software
accounting systems. Their ERP systems have to be protected from risks that are created in the
business. Their clients must install a highly efficient network security infrastructure which

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might assist them in creation of a system which is strong and hence can maximise the benefit
they provide to their clients.
CONCLUSION
While concluding the above report it can be said that Atalssian has a Hierarchical
organisational structure whereas the structure of their information system is pyramidal. They
have taken use of ERP system as their system acquisition method. It is having its sales
flowchart so as to improve the smoothness in the work process. Many kinds of control
problems exist in their products which can lead to frauds. In the market JIRA, XERO, Intuit
Quickbooks and myob are the market leaders which helps them in providing their services in
an around 170 nations. Many types of gaps are present in their products and hence their users
are also facing many types of challenges.

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REFERENCES
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types. Critical Perspectives on Accounting, 24(1), pp.44-61.

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Hall, J.A., (2012) Accounting information systems. Cengage Learning.
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