Strategic Information System Analysis Report for Wesfarmers

This report provides a comprehensive analysis of the strategic information systems employed by Wesfarmers Corporation. It begins with an overview of Wesfarmers' organizational structure and delves into the operational problems it faces, including material issues, lack of accounting methods, and challenges related to innovation and employee training. The report then explores various system acquisition methods, such as commercial and custom software, and the implementation of an ERP system. A system flowchart of the sales procedures is included to illustrate the sales process. Control problems and potential fraud are also discussed, along with suggestions for mitigation. Part 2 of the report focuses on the development and adoption of accounting software packages, their benefits, and their impact on efficiency and cost reduction. The market size of Wesfarmers, its leaders, and the challenges associated with accounting software are examined. The report concludes with suggestions for improvement, offering a thorough examination of Wesfarmers' information systems and their strategic implications.

Running head: Strategic information system
Strategic information system

Strategic information system
Table of Contents
Introduction.................................................................................................................................................3
The current organizational structure...........................................................................................................3
Operational problems..................................................................................................................................4
System acquisition method.........................................................................................................................5
Commercial software...............................................................................................................................5
Custom software......................................................................................................................................5
ERP system.............................................................................................................................................5
System flow chart of the sales procedures for Wesfarmers........................................................................6
Control problems and sort of possible fraud...............................................................................................6
Part 2...........................................................................................................................................................7
Development and Adoption of the accounting software packages.............................................................7
Market size of Wesfarmers.........................................................................................................................8
Leaders in the marketplace.........................................................................................................................8
The current or challenges of accounting software and suggestions............................................................8
References...................................................................................................................................................9
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Introduction
Information technology is one of effective and unique aspects of the management to run the
business activities and actions successfully. Wesfarmers Corporation has been chosen in the task
to evaluate and explain the significance of the ERP system, custom software and accounting
software packages. Along with this, the paper explains the operational and control issues that are
being dealt by the company in today’s modern world. The market size and structure of
Wesfarmers also have been explained in the task. More detail of the task is discussed below.
Part 1
The current organizational structure
Wesfarmers Limited is an Australian company with it’s headquarter is located in Western
Australia. The company was incorporated in 1914 as a co-operative to provide services and
merchandise to western Australian farmers. The organization provides chemicals, coal mining
and industrial and safety products to the consumers in Australia and New Zealand. It was listed
on the Australian securities exchange (Wesfarmers, 2018). The organizational functionalities are
flourished in several countries therefore; the company has adopted various types of
organizational structure. This is done to improve and enhance the performance and productivity
of the employees as well as organization. It has been analyzed that Wesfarmers is engaged in
sundry industrial operations and activities. Thus, common organizational structure would not be
used by the firm. Furthermore, Wesfarmers is a Corporation limited by shares that is established
and domiciled in Australia. Richard Goyder is the CEO and chairmen of the company. Along
with this, the adopted effective organizational structure by Wesfarmers Corporation will help to
strive with competitors in the workplace (Wesfarmers, 2018). It is one of the biggest companies
with 223,000 employees and around 515,000 shareholders. The company can develop and
imporve an MIS organizational structure that is more hierarchical in shape with the help of large
network and information resources. The current organization structure of Wesfarmers has been
detailed below.
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(Source: Wesfarmers, 2018)
Operational problems
It has been evaluated by Momoh, Roy and Shehab (2010) that there are various operational
issues faced by the company due to multiple organizational structures. The operational issues
that are faced by Wesfarmers have been detailed below.
 The material issues reflect Wesfarmers’s environmental and social impacts that may
influence the evaluation and decision of the stakeholders (Subashini and Kavitha, 2011).
 Blaylock, Shevlin and Wilson (2011) describe that the favorable and unfavorable aspects
of the organizational structure which is adopted by the Wesfarmers. Due to lack of
accounting methods, the employees are unable to know whether how to use software and
application. Furthermore, innovation and improvement issues also are faced by
Wesfarmers in the workplace.
 The employees are unable to focus on the operations and activities of the firm due to lack
of efficiency. It has been revealed that the employees are not able to accept managerial
changes due to lack of training and development coaching. All these issues are pushing
Wesfarmers backward which could lead to adverse results and outcomes in the global
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market. Due to lack of knowledge, the followers are failed to adapt new technology and
methods within the organization (Laudon and Laudon, 2016).
System acquisition method
Various types of system acquisition methods and techniques can be implemented by Wesfarmers
handles and control the business actions and operations. The company needs to use software
system due to large number of activities are going on in the organization at a single time (Poba-
Nzaou and Raymond, 2011). Therefore, the company uses system acquisition method to handle
these activities and operations. Some of the effective acquisition methods are elaborated below.
Commercial software
It is one of the significant software that is used by Wesfarmers within the organization for
maintaining records and information properly. For example MS office and windows operating
system are initiated by the company.
Custom software
One of the significant and dynamic software which used by Wesfarmers is custom software. This
software designs for specific works and requirements within the organization. It helps in
detecting external issues and problems. Furthermore, changes can be done easily with the help of
this software (Nikookar et al, 2010).
ERP system
ERP system is implemented by Wesfarmers for better utilization of resources in the organization.
This software also helps to control and manage the business operations and actions effectively
and efficiently. It has been further noted that system also helps forecasting to analyze the demand
and needs of the consumers in the international market. Date integration is possible with the help
of ERP system (Madapusi and D'Souza, 2012).
It has been found by Madapusi and D'Souza (2012) that ERP system is one of the effective and
unique software among them that has been adopted by wesfarmers in the workplace. This system
also helps to provide accurate and appropriate information and facts related to products and
services. By using this system, the employees are able to track the data and information within
the organization (Kuhn Jr and Sutton, 2010).
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System flow chart of the sales procedures for Wesfarmers
(Source: Wesfarmers, 2018)
The above diagram shows the sales procedures of the Wesfarmers. It is stated that firstly
customers enter in the Wesfamers stores to pick the products. Therefore, purchase order is placed
by the consumers. When the company receives purchase order, it is automatically converted in
sales order. After then, a pick ticket is created to deliver the products and services. It also
determines the quality and quantity of the products and it is sent to the customers. In this way,
consumers get products and services. System flow chart plays a vital and significant role to
increase and enhances the sale of the products and services. With the help of system flow chart,
the company has been able to maintain a control over the sales (Rosenblatt, 2013).
Control problems and sort of possible fraud
In the absence of managerial control, there are enormous issues faced by Wesfarmers that have
been stated below.
 Due to effective labor workforce, the company is unable to focus on the inventory level
in the warehouse. Therefore, if affects the sales and revenue of the firm. Due to poor
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HRM, the company is unable to appoint talented, skilled and potential employees within
the organization.
 Material and safety issues are also faced by the company in the workplace. Due to lack of
security, the employees are unable to keep information separately. Due to lack of learning
and training, the workers are unable to know whether how to operate business and how to
use software within the organization.
On the other hand, there are various ways to reduce the fraud and errors in the system. The
company should provide training and development coaching to teach them that how to operate
system and to reduce fraud which is occurring in the system. Internal control system shall be
implemented by Wesfarmers to detect and eliminate fraud within the organization. New and
latest technologies shall be used by the company. Apart from this, experts must be hired by the
organization to monitor the activities and operations of the employees (Teittinen, Pellinen and
Järvenpää, 2013).
Part 2
Development and Adoption of the accounting software packages
Hall (2012) defines that accounting software plays a fundamental role in each and every
organization. Accounting software may be defined as a type of application software that records
and processes accounting transactions within functional modules including accounts receivables,
accounts payable, general ledger, trail balance and payroll. It means accounting packages
functions as a accounting information system. This system is used by the company to maintain
data and information properly. Accounting software packages minimizes the chances of errors,
misconducts and mistakes within the organization. Stallings et al (2012) stated that accounting
software increases efficiency and reduces the cost of the firm. With the help of accounting
software packages, Wesfarmers has been able to maintain records of the employees. This system
also helps the investors by protecting the rights and interest of them. If the company select a
good quality accounting software system then it can help to save the time and cost of the firm.
Manual accounting software increases chances of errors and mistakes in calculation. It has been
analyzed by Wohlin et al (2012) that accounting software package helps to eliminate the
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mistakes that are occurred in the organization. It has been revealed that accounting software also
tracks the inventory and stock. Accounting platform can calculate the tax amount that needs to be
paid on each invoice. Moreover, accounting software helps to prepare financial statements and
balance sheet. Along with this, all the calculations are managed by accounting software packages
automatically as it saves time and money of Wesfarmers. In this way, accounting software
provides wide range of benefits to the consumers and organization as well (Galliers and Leidner,
2014).
Market size of Wesfarmers
Wesfarmers is one of the growing companies in the world. In today’ era, the company is
increasing the profitability and revenue in the marketplace. The growth rate of wesfarmers is
4.3% and revenue of the firm is $34.9 billion. In 2017, the profit of the company was $1.6 billion
which was higher than previous year profits. The organization uses innovative and effective
tools, techniques and strategies to beat the competitors. This is also done by the company to
attain desired long term goals and objectives. The organization has also invested in research and
development to overcome the rivalries in the international market. Wesfarmers has acquired
almost 70% market share of the retail industry in the Australia. This will help to provide new and
innovative opportunities for the consumers in the market. It has been noted that market size of
the Wesfarmers is wider and dynamic to attract large number of customers.
Leaders in the marketplace
The profitability and success of Wesfarmers is dependent on the leadership. No company can
survive and grow its business activities without effective leadership. The company also provides
support to the leaders to be aware of their development and opportunities to keep continue
learning. A high investment is done by the company to appoint a skilled workforce in the
organization. Furthermore, it has been analyzed that Wesfarmers also provides collective
learning and development coaching to the workers. Wesfarmers is a leading and growing
Australian listed Corporation. The organization focuses on the diverse operations and activities
to provide a satisfactory return to its shareholders. Richard Goyder is the CEO and managing
director of the firm. Richard Goyder is the most influential leader in Australian business
operations and activities. He always keeps an eye on the strategies, policies and plans of the
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Coles in order to destroy the competitors in global market. Richard Goyder also focuses on the
performance and efficiency of the workers to maximize the outcomes and results.
Furthermore, there are various leaders in the market that affect the growth and profitability of the
companies. These leaders include Aldi, Coles, Woolworths, IGA, Shop Rite, friendly grocer and
star mart. These leaders affect the revenue and outcomes of the firm. Wesfarmers focuses on the
activities and operations of competitors to meet the desired goals and objectives. By analyzing
and identifying the plans and strategies of the rivalries, the organization has been able to cope
with competitors in the international market.
The current or challenges of accounting software and suggestions
The accounting software packages create various types of issues at the workplace. Some of the
issues that are occurred in the workplace due to poor accounting software packages have been
stated below.
 Information and facts created by one employee may be easily copied by another one, it
creates enormous issues within the organization (Hoque, 2018).
 It has been noted that business owners want to have things done quickly and less time
consuming. Some of the accounting software packages are not user friendly therefore, the
users are unable to use these software’s. Using a mouse can also slow down the business
activities (Krutz and Vines, 2010).
 Due to lack of accuracy, some of the accounting software is considered outdated.
 Due to lack of training and guidance, the employees are failed to get right and suitable
information about the software and system. Along with this, some websites are unable to
provide contact number (Weygandt, Kimmel and Kieso, 2015).
Now it is recommended that the company should use cloud based system within the organization
to accomplish the long term mission and vision. On the other hand, it has been evaluated that
Wesfarmers limited must execute an analysis and report so that the efficiency and effectiveness
of the operations and activities could be reduced and eliminated (Dingsøyr et al, 2012).
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Conclusion
The above analysis indicates that ERP system and accounting software packages help the
company to strive the competitors in the marketplace. Furthermore, Wesfarmers has been able to
accomplish the long term mission and vision by initiating the ERP system and accounting
software packages within the organization. Moreover, it also explains the functioning of the
accounting software system
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References
Blaylock, B., Shevlin, T. and Wilson, R.J., 2011. Tax avoidance, large positive temporary book-
tax differences, and earnings persistence. The Accounting Review, 87(1), pp.91-120.
Dingsøyr, T., Nerur, S., Balijepally, V. and Moe, N.B., 2012. A decade of agile methodologies:
Towards explaining agile software development.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Hall, J.A., 2012. Accounting information systems. Cengage Learning.
Hoque, Z., 2018. Methodological issues in accounting research. Spiramus Press Ltd.
Krutz, R.L. and Vines, R.D., 2010. Cloud security: A comprehensive guide to secure cloud
computing. Wiley Publishing.
Kuhn Jr, J.R. and Sutton, S.G., 2010. Continuous auditing in ERP system environments: The
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Madapusi, A. and D'Souza, D., 2012. The influence of ERP system implementation on the
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Momoh, A., Roy, R. and Shehab, E., 2010. Challenges in enterprise resource planning
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Nikookar, G., Safavi, S.Y., Hakim, A. and Homayoun, A., 2010. Competitive advantage of
enterprise resource planning vendors in Iran. Information systems, 35(3), pp.271-277.
Poba-Nzaou, P. and Raymond, L., 2011. Managing ERP system risk in SMEs: a multiple case
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Subashini, S. and Kavitha, V., 2011. A survey on security issues in service delivery models of
cloud computing. Journal of network and computer applications, 34(1), pp.1-11.
Teittinen, H., Pellinen, J. and Järvenpää, M., 2013. ERP in action—Challenges and benefits for
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Wesfarmers.2018. Wesfarmers sustainability report [Online], Retrieved from
http://media.corporateir.net/media_files/IROL/14/144042/wesfarmers_sr/wesfarmers/group.html,
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Wohlin, C., Runeson, P., Höst, M., Ohlsson, M.C., Regnell, B. and Wesslén, A., 2012.
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