Strategic Information System Report: Amcor Ltd - Accounting Software

This report provides a comprehensive analysis of Amcor Ltd's strategic information system. It begins by examining the company's current organizational structure and identifies operational problems arising from it. The report then explores potential ERP system acquisition methods, specifically focusing on SAP ERP 6.0 and SAP CRM 7.0, and includes a flowchart of the sales procedures to illustrate the information flow. Control problems related to cost, time, and technology dependence are identified. Part 2 delves into the development and adoption of accounting software packages in the Australian market, including a market size analysis and a discussion of key players like Xero, MYOB, and Intuit. The report concludes with a discussion of current gaps and challenges in the market, offering insights into how Amcor Ltd can improve its information systems to enhance its operations and competitive advantage. The report is a valuable resource for understanding the strategic use of information systems in a manufacturing context.

Running head: STRATEGIC INFORMATION SYSTEM
Organization using Accounting Software in Australia
Name of the Student:
Name of the University:

1STRATEGIC INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
Part 1................................................................................................................................................3
Current Organizational Structure.................................................................................................3
Operational Problems of Amcor resulted by it Structure............................................................4
ERP system acquisition method..................................................................................................6
Flowchart of the sales procedures................................................................................................7
Identification of control problems...............................................................................................8
Part 2..............................................................................................................................................10
Development and adoption of accounting software packages...................................................10
Current market size....................................................................................................................10
Leaders in the market.................................................................................................................11
Current gaps or challenges.........................................................................................................12
Conclusion.....................................................................................................................................13

2STRATEGIC INFORMATION SYSTEM
Introduction
The strategic information development system is based on the implication of the existing
system development for the alignment of the operations (Lasserre 2017). The manufacturing
company of Amcor Ltd. has been supplying producing flexible plastics and rigid plastic
packaging and it is situated in Australia with the main headquarter situated in Victoria. Amcor is
experienced in implementing the effective technology innovation for producing the by-products
of foods, beverages, personal care products, and medicines. The company has been established in
the year 1860 and it has been situated with the name of Australian Paper Manufacturers. The
company was later named as Amcor Ltd in 1986 and since then it has grown to be one of the
largest PET bottle producers of the world (CorporateSite 2018). The development of the
activities would be based for the implication of the effective information processing and
development of the successive information technology alignment.
The following report is formed for the implication of the effective report development
strategy for forming the utilization of the effective strategic alignment. The Amcor Ltd has been
using effective structure for the utilization of the operations supporting the implication of the
accounting software system development. The implication of the accounting software system
would be developed for forming the listing of the activities for favouring the implication of the
operations. The benefits and limitations of the existing structure of Amcor would be analysed for
forming the implication of the improved operations. The software package would be formed for
listing the activities favouring the alignment of the successive development.

3STRATEGIC INFORMATION SYSTEM
Part 1
Current Organizational Structure
The organizational structure of Amcor Ltd is based on the successive hierarchical nature and
implication of the activities aligning the modification of the manufacturing operations (Oxygen
2018). The existing information system was implied for forming the improvement of the
processes. The organizational structure of Amcor Ltd was based for the top down hierarchical
structure. The structure of the organization is based on the deployment of the various
departments of the organization. The Managing Director or MD is at the top most level of the
organization structure. The various directors like marketing director, finance director, operations
director, and HRM director are the successors of the MD in the organizational chart. The
marketing managers, finance supervisors, production team leaders, and personal managers are at
the next level of the directors (Silganholdings.com 2018). The last level of the organization
structure is the sales teams, accounts assistants, and production team members. The organization
structure is symmetric and aligned based on the operational working levels.

4STRATEGIC INFORMATION SYSTEM
Figure 1: Organizational Structure
(Source: CorporateSite. 2018)
Operational Problems of Amcor resulted by it Structure

5STRATEGIC INFORMATION SYSTEM
Figure 2: Amcor Plastics Organizational Structure
(Source: Sapinsider.wispubs.com 2018)
The organizational structure of Amcor Ltd is based on the successive hierarchical nature
and implication of the activities aligning the modification of the manufacturing operations. The
structure is symmetrical and based on the functional departments of Amcor. However, the
structure of Amcor is strictly traditional and does not allow the flexibility in operation
development. The presence of several loopholes of the organization structure would result in
forming the major issues for the development of the effective operations in the organization. The
alignment of the activities would also result in forming the major hindrances in the formation of
the issues and problems for the long term planning of the organization. The various operational
problems of Amcor due to its organizational structure are pointed out in the following sections,

6STRATEGIC INFORMATION SYSTEM
Absence of Creativity: The absence of creativity is a major problem that would give rise
for the hindrances of the operations and alignment of the major problems for Amcor. The
structure of Amcor would result in forming the problems of integrating innovation in their
operations due to the traditional approach of communication.
Inflexible Operations: The organizational structure of Amcor Global comprises of
management operations working over 6400 employees, 36 plants and 29 on site locations. The
presence of such numbers of units had made the flexibility of the operations a major problem for
Amcor. There is no scope for the implementation of the flexibility of operations for Amcor.
Less Visibility of SCM: The diverse locations for the plants and sites would result in
forming the problem of forming the issues in monitoring the supply chain management
operations for Amcor. The lack of effective monitoring would tend to form the issues in listing
the operation development for the organization.
ERP system acquisition method
The ERP system acquisition would be required for the implication of the effective
operation development for Amcor. The implementation of the ERP system acquisition would be
based for the alignment of the software installation of SAP ERP 6.0 and SAP CRM 7.0 (Wagner
III and Hollenbeck 2014). This software would work effectively for Amcor to imply effective
operation development. The processing of the sales order in Amcor would consume some
specific cost and time. However, with the implication of ERP system, the total cost and time
required for the deployment of the activities of the project forming the utilization of the effective
operation development. The ERP system development would allow the utilization of technology
advancement and decrease the overall cost and time expenditure for the organization. The cash

7STRATEGIC INFORMATION SYSTEM
flow and investment potential for the organization would be increased and the overall revenue
generation would also be increased.
Flowchart of the sales procedures
Figure 3: System Flowchart of the Sales Procedure
(Source: Bettis et al. pp-260)
The flow chart of the sales process in the Amcor Ltd has been shown in the above
diagram and it comprises of dividing the operations based on the five sections. The information
flow is based on the deployment of the effective operations with automatic system development
(Ginter 2018.). The system flowchart of the Amcor sales operation would be based for the

8STRATEGIC INFORMATION SYSTEM
alignment of the effective data management. The ERP system development would be helpful for
easing the sales data management for Amcor Ltd. The sales process would include the sales,
accounts, and stock management departments. The process of sales initiates with the customer
submitting the purchase order to Amcor. The sales team receives the order, provides a ref
number for the order, enters the order in system, and passes the order to the contract department.
The contact agents would review the order and check if the order meets the standard terms of the
company. If the order does not meet the standard terms of the organization, the agents request for
approval of the order from the legal department where the change in standard is checked. If the
change in standard is not approved, the attorney would mark no for approval and the agent would
cancel the order and ref no is marked for cancellation. If the changes are accepted, the attorney
marks the order with a yes approval for change. The agent would receive the yes change
approval and would approve the order. Similarly, if the order meets the standard terms, the agent
would approve the order. The order is sent to the stock department for packing up the order. The
approve orders would be notified to the shipping department for picking the order from the stock
department. The order is delivered to the customer.
Identification of control problems
The control problems of Amcor Ltd are based on the factors like cost, time, and
technology dependence (Moutinho and Vargas-Sanchez 2018). The implementation of the ERP
system acquisition would be based for the alignment of the software installation of SAP ERP 6.0
and SAP CRM 7.0. This software would work effectively for Amcor to imply effective operation
development. However, there are many possible solutions that can form the impact on the
effective operations and functions alignment for Amcor Ltd. Some of the problems are
highlighted below,

9STRATEGIC INFORMATION SYSTEM
Complexity and Cost: The implication of the ERP system in Amcor would require the
integration of the existing database and operations. It would result in forming the alignment of
some hindrances for the smooth running of the processes (Wheelen et al. 2017). The complex
operation development would result in forming the alignment of the major issues for the ERP
implementation. The overall cost expenditure for the organization would be increased as the ERP
system would require monthly maintenance cost.
Lack of Required Skills: The ERP system development would also bring about the
problem of lack of skills for the operation of the ERP system (Hill, Jones and Schilling 2014).
The traditional record maintenance would be replaced by the ERP system and it would form the
major issues for the operation by the staffs. It is important for providing the staff with proper
training for the development of the effective support and development. However, the absence of
the training and prior skills of operating the ERP system would result in forming the issues in
processes.
Risks and Frauds: The risk and frauds is a major setback for the implementation of the
ERP system in Amcor. The issues of fictitious vendors, data extraction, and unauthenticated
access to the system would bring about the issues for the development of the ERP system in
Amcor. The risks and frauds not only would harm the development of the activities but would
also be responsible for the financial loss to the organization.

10STRATEGIC INFORMATION SYSTEM
Part 2
Development and adoption of accounting software packages
The Australian market is the home of the major accounting software package companies of Xero,
Myob, Intuit, Fresbooks, and Saasu (Moutinho and Vargas-Sanchez 2018). These accounting
software packages would be responsible for the alignment of the effective operation development
for the organization. The implementation of any of the software package would be dependent on
the implementation of the effective data migration and integration platform dependence. The
accounting software package used by Amcor Ltd is Reval (Reval 2018). The Reval software
package works predominantly for forming the alignment of the improved development of the
communication. The software package would also be helpful for aligning the implication of the
successive activity development for the organization. The implementation of the effective cash
system development would help them in forming the utilization of the management strategies for
the 650 companies around the world. The implication of the scalable solution would also be
helpful for aligning the implementation of the
Current market size

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Figure 4: Market Size of Australia
(Source: Meyer, Neck and Meeks 2017, pp-40
It is evident from the pie chart that the Australian Market is covered by the Xero, Myob,
Intuit, Fresbooks, and Saasu accounting software packages. Among the mentioned software
packages of Xero, Myob, Intuit, Fresbooks, and Saasu, Xero occupies the more than half of the
market and it is evident that the rest of the accounting software packages are comparatively used
in very few sectors. Xero works as the most promising accounting software package for
consuming the 60% of the total market. The intuit Quickbook holds the second position by
covering over 10% of the total market share. The software package would work successfully for
the development of the activities. The MYOB accounting software package is third with
coverage of 8% of the accounting software market. Saasu and Freshbooks has also covered 4%
of the total accounting software packages each.
Leaders in the market
The Australian Market is secured by the Xero, Myob, Intuit, Fresbooks, and Saasu
bookkeeping programming bundles. Among the said programming bundles of Xero, Myob,
Intuit, Fresbooks, and Saasu, Xero possesses the greater part of the market and it is apparent that