SBM4202 Unit Project: Management IS Strategy for Telstra

This report provides a comprehensive analysis of Telstra Corporation Limited's Information System (IS) strategy, focusing on its management and acquisition. The report begins with an overview of Telstra, detailing its services, products, and its position as a leading telecommunications company in Australia. It then explores the rationale behind choosing Telstra as a case study, highlighting the comprehensiveness of its IS strategy and the challenges it has faced, including software issues, operational problems, and low-profit margins due to increased competition. The evaluation of Telstra's IS/IT strategy examines both internal and external information systems, including operational processes, customer service, and relational aspects. The report delves into specific challenges, such as software integration issues, operational outages, and the impact of competition. It also discusses the recent scenarios of IS/IT within Telstra, including service disruptions and customer base fluctuations. The analysis further examines the role of IS/IT in the contemporary environment and the application of management IS for managing and controlling the organization. The report concludes with a discussion on the execution of the IS/IT strategy, providing a holistic view of Telstra's approach to information systems management and its implications for business success.

Running head: Management
IS Strategy Management and Acquisition
By (Student's Name)
Class
Teacher
Name of the School
City
Date
Telstra Corporation Limited

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Table of Contents
Introduction...............................................................................................................................................2
1. About Telstra Limited Company.....................................................................................................2
2. Reasons for choosing Telstra Limited..............................................................................................3
3. Evaluation of the IS/IT strategy.......................................................................................................4
3.1 Internal information system..............................................................................................................4
3.2 External information system elements..............................................................................................5
4. A major challenge facing the business.............................................................................................6
4.1 Software challenges...........................................................................................................................7
4.2 Operational challenges......................................................................................................................7
4.3 Low-profit challenges........................................................................................................................7
4.4 Intensive competition........................................................................................................................8
5. Recent Scenario of IS/IT for organization.......................................................................................8
6. Role of IS/IT in the contemporary environment.............................................................................9
7. Management IS for managing and controlling organization system...........................................10
7.1 Customers service information system............................................................................................11
7.2 Operation management information system..................................................................................11
7.3 Communication information system...............................................................................................11
7.4 Marketing information system........................................................................................................12
8. Execution of IS/IT strategy should be presented...........................................................................13
Conclusion................................................................................................................................................13
Reference..................................................................................................................................................14

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Introduction
Information system strategy that a company uses to play an important role in the success
of the business in the contemporary market. Information system strategy composes of various
business and managerial operation aspects that enable the contemporary business to manage its
customer service provision is a more effective way. The information system or information
technologies that are employed in the business in the current market offers a business
competitive advantage over other business within the same industry. In Australia, there are many
companies that have comprehensive information system strategies that have to enable these
companies to achieve more in the market. One example of these businesses is Telstra Limited
that has expanded its operation due to information system strategy. In addition, the company has
experienced some challenges that cause the company to realize a decline in profit yield in the
market. The market currently experiences high and intensive competition that require good
information system strategies that enable the company to service or manages its operations. The
following paper explores that information system strategy that Telstra Limited uses to manage its
business operation.
1. About Telstra Limited Company
Telstra limited is a telecommunication company that is currently the larges through both assets
and resources. The company offers various products and services to customers across Australia
and internationally (Damon 2011). The company has expanded its operations through the global
strategy to reach other countries outside Australia. The company offers service such as mobile
and cable data bundles, voice and other mobile data, the TV data and other products such as
mobiles phones and accessories. The company has recently diversified its products and services

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using its information communication system to reach more customers within the
telecommunication and general business market. Some of the services that the company has
introduced include cloud service and application programming that allow the business to
business integration. The company in the recent past experiencechallenges both in operation and
profit decline. These challenges made the company to experienceservice outage and a decline in
share prices in the stock market. However, the company has a comprehensive information
system strategy that sets advantage for the company (Bettersby 2011).
2. Reasons for choosing Telstra Limited
Telstra limited company is the Australian business that is chosen for the evaluation of the
information system strategy. The company was chosen for a number of reasons and these include
the comprehensiveness of the information system that is used by the company, the information
system challenges that the company has been going through over the past year. Firstly, the
company has been chosen for analysis due to its comprehensive information system strategy that
the company uses. The company has business information system strategy that has enabled the
company to work in a competitive environment and expand its operations internationally through
its global enterprise strategy (Chairman of the Joint Chiefs of Staff 2012).
Secondly, the company has been experiencing numerous information system challenges
that resulted in service breakdown and outages.Telstra Limited company is chosen since the
company has been the leading country’s telecommunication service provider. The company has
experience service issue in the recent past despite having some of the best business information
system strategy in the country. In addition, the company has experience growth challenges that
are also coupled with a fall in profit earned in the recent past. These challengeshave to lead to a

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profit decline that shows the importance of the information system strategy that the company
uses and the business outcome (Hutchinson 2014).
3. Evaluation of the IS/IT strategy
The company has business information strategy that composes of various operational and
service provision interface enabling the company to remain one of the best telecommunication
companies within the country. The Telstra information system strategy is organized into
operations and service information systems that are linked together. The operational information
system composed of both internal and external operations. The service information system
element consists of various products and services that are offered by the company. The product
and service information strategy of the company composed of three various elements and these
include data, cloud, and application programming interface. The information strategy that
combines customer service through outward communication and internal operations (Harbison
2011).
3.1 Internal information system
The company has an internal information system that integrates various internal
operational processes together with external operational processes. An internal operational
information system consists of organizational communications, management operations,
accounting information system, customer service and external information integration platform
(Silberschatz 2010). Firstly, managerial communication is one aspect of the operational
information system that forms part of the information system that Telstra uses. Secondly,
management operations are an aspect of the organization system that allows the management of

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employees and information system within the organization. Thirdly, the accounting information
system that the organization uses include an inventory management system that link various
products and services that the company offer to other management accounting processes.
Fourthly, customer services information aspect combines both call information system and
customer care. In addition, company customer service is also linked to the accounting system
that enables customers to purchase products using online platforms (Chandler & Munday 2011).
3.2 External information system elements
The company has external information system aspects that combine various external
operational information system aspects that ensure that the company provides products and
services to the customer and other stakeholders. The external operational information aspects are
organized into customer service and relational aspects. Customer service combine various
products and service support platforms such as the product purchase and payment platforms
embedded within the company’s website. The relational platform ensures thatstakeholders get
the information and resources that enable business within the company. The relational aspect of
the external operations also incorporates various marketing strategies that a company uses to
promote itsproducts and services (Alter 2013).
Firstly, the company has come up with the data bundle plan aiming to propel the small
and medium business to better reach more customers. The company took the data strategy to
cater to the company's traditional customer that used the mobile and data bundle to conduct their
business. The company through its mobile data plan has diversified its data plans to
accommodate small and medium business users. As a result, the company has the experience to

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increase small business customer base as compared to its initial customer base that is majorly
from premium data plan (Mitchell 2011).
Secondly, the company has a global enterprise and service business to business unit
(B2B) information system strategy. The B2B business information system strategyfocuses on
empowering business through the provision of cloud services. The information system strategy
has captured the attention of many businesses within Australia and internationally. This is due to
many companies that want to eliminate business in a house information system that requires high
capital to start and manage. Moreover, the information system enables small business to afford
web hosting services at low cost since there is no maintenance cost (Hutchinson 2014).
Thirdly, investing in the business engagement platform is another strategy that has
enabled the company to achieve more in the international market. The information strategy that
the company took that venture into applications that support business has enabled the company
to attract much small business enterprises within the country. Moreover, many companies can
now afford to integrate their business with application to enable continuous customer service.
The strategy also has increased the customer base especially the application support platform that
is achieved through programming (Bytheway 2015).
4. A major challenge facing the business
The company has faced major challenges in the recent past that range from software
issues that lead to service outage to reducedprofits. Some of these challenges have been due to
operational issues while some has been due to information system failure.
4.1 Software challenges

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Software purchase challenges are one key challenge the company has been experiencing
leading to many operational shutdowns. The company experience service outage triggered by
software fault resulted in an interruption that causes service outage across the country. The
company reported an interruption that is based on software and hardware interaction that resulted
in disruption on the software. The failed system was on the information system that is
responsible for mobile network especially the 4G network. On responding to the issue, the
company indicated that the software and hardware failed to integrate leading to equipment
failure (Mogoş 2016).
4.2 Operational challenges
The company experience operational challenges that were coupled with software infusion
challenges that lead to a service outage for many days within the year 2018. These operational
challenges werereported to be resultant to the failure of some software that resulted in a total
system shut down.Company experience challenges as a result of upgrading the mobile
information system leading to a service outage. Effecting changes into the information system is
one of the challenges that affected the operation of the Telstra. When the company decided to
upgrade its system to expand its mobile data usage the system failed to cause the mobile data
outage in Melbourne (Piccoli&Pigni 2018).
4.3 Low-profit challenges
The company has been on the sport by the shareholders due to the continuous fall in the
profit that the company makes nearly for a year. The company CEO warned of continues fall in

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profit through the company has been trying to look for a solution. In addition, the company has
experience expansion challenges that require the company to adjust to changes that are occurring
within the organization. This has resulted in managerial problems that lead to a decline in profit
that the company registers in the third quarter for instance. This is also followed with a fall in the
share prices that make stakeholders especially the management and shareholders to be worried of
losing investments (Hilbert & López 2011).
4.4 Intensive competition
The company for a long time has been experiencing a monopoly that made the company
to grow both in profit and structural. Within the coming up of other competitors into the industry,
the company has beenexperiencingstiff competition that is making the company to experience
low profit and fall in customer base. One of the key competitors within the telecommunication
industry is the Optus that has been making a profit within Australia telecommunication market.
This with other companies has made Telstra experience low customer purchasing its products.
Moreover, the company still need to adjust to many telecommunicationchanges that come along
with the digital business operations (Proctor 2011).
5. Recent Scenario of IS/IT for organization
In the recent past, Telstra has experienced a number of cases that resulted from
information system challenges. Some of the information system cases include information
system breakdown and low mobile data purchases.Firstly, in the year 2018, the company
experienced many service outages that were largely caused by software problems that lead to a
mobile service outage. The company was reported for several weeks having service outage that

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was facilitated with the information system breakdown. Secondly, the company has
experiencedecline in the number of customers due to intense competition within the
telecommunication industry. This has caused the company to consider diversifying its products
portfolio to major in retail outlet as compared to the primary product line (Lauren 2013).
6. Role of IS/IT in a contemporary environment
IT plays an important role in the current contemporary business environment and this is
also evident with the operation of Telstra limited. Firstly, IT facilitate business expansion leading
to larger market coverage. The information technology in the current society assists the business
to expand its operation especially the integration between the information system and the
business stores. Telstra being Australian largest telco has expanded its operation to meet more
customers' demand online. Some of the services that the company has managed to provide to the
customer include cloud-based services, business to the business connection among many other
services. The information system has help business to integrate its online and in-house operations
to meet customer and business need in the contemporary environment (Bulgacs2013).
Secondly, information system facilitates an international business strategy for business in
the contemporary environment. Telstra has used its business strategy that focuses on the global
scope to reach other international business platforms. For instance, recently the company
acquired Pacnet as a result of its B2B IT solution making Telstra Australia company with
international connectivity. The company also provides the cloud service that reduces capital
expenditure in business that has been caused by infrastructure requirement. This has enabled the
company to expands its operation internationally (Brinkley 2012).

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Information system in the current contemporary business environment facilitates the
businessoperation leading to the smooth running of the business. Telstra, for instance, has its
business operationautomated and managed using the information system that the company has.
This has enabled the company to integrate its information system to other external services such
as business support services. Furthermore, the information system enables some customer
services to work without assistance from the company staff. One good example is the data and
other products purchased from the online business platform that is automated. This increase the
outcome and sales of the company hence competitive advantage in the market (Chaffey & Ellis-
Chadwick 2012).
Information system gives the contemporary business a competitive advantage over other
business in the market. The company has been on the profit decline yet the global information
system strategy has enabled the company to get more customer both within Australia and
internationally. Moreover, the business to business application interface has also increased the
customer base for the company beating some of its competitors. The information strategy that the
company uses serves to keep the company performing despite numerous challenges that Telstra
has experience in the year 2018 alone (van der Aalst 2011).
7. Management IS for managing and controlling organization
system
The information system that the Telstra uses to play an important role in the management of the
company's business operation. The information system controls the operation of the business
through a number of ways.

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7.1 Customers service information system
The customer's service information system that is used by the company is based on both
the retail management information system and online service provision. The company has
various online product and service providers that focus on giving customers self-service. For
instance, the company has employed an online cloud hosting service to customers such as
businesses and individuals. In addition, the company also has a retail service where customers
are allowed to purchase products and service online. Some of the products that customers can
purchase online are mobile data and website hosting services. Moreover, the company has been
oflate considering shifting to retail services as its main customer or business portfolio. This is
also characterized by various data bundle plans that customer can purchase from the company’s
online store (Han, Kamber& Pei 2011).
7.2 Operation management information system
The company has come up with an operation management information system that
assists in the management of various operations processes that the company carries out. These
services include management of normal business operation, inventory management system that
assists the company in the management of stock. The management of the company operation that
also composed of various machines that ensure that data is operation are powered using the
information system. In addition, the company information system that controls normal business
operations has been cited to consist of software that assists various machines to operate (Gitta &
South 2011).