Discuss about the Global Information Technology Environment System.
The demand of the cloud based accounting software is gradually increasing in this decade. In Australia the traditional way of accounting is quite robust, however many enterprises are utilizing cloud based accounting software in order to gain an extra edge in the competitive market. The accounting system produce services and product that is not directly impact the cost and constantly focused on the aspects of market segment important (Dandago and Rufai 2014). It is one of the main aspects to consider in the IT field, the utilization of the technology is getting prominent in many sectors especially in Australia. This type of accounting software packages provides assistant over categorizing, transferring, storing all the associate information or data in an enterprise. The operational efficiency is highly affected by those accounting software packages also they are accessible from distinct places, only internet connection is required. It also vey cost efficient that assist enterprises well-being and assist them to grow in the market while managing the accounting service.
This specific paper will illustrate a precise and wide review of an autralian banking software named Commonwealth Bank of Australia which is one of the popular and significant banking sector in all the states (Simkin, Norman and Rose 2014). This literature review will provide the clear understanding of the accounting service software packages including the adoption of such accounting software packages in the CBA, this paper will also illustrate the current organizational structure of the CBA with the proper system flowchart and diagrams. The current problem and the acquisition methods are also reviewed in this literature review.
Commonwealth Bank of Australia is one of the most famous and standard bank in the Australia. They also provide services to different nations, most properly in the Europe and Asia. The bank provide all the services an optimal bank should provide such as funds investment, insurance management, loans, and many more. The bank has been listed top in the security exchange category with other brand like Commonwealth securities and ASB Bank. Proper implementation and maintain ace of their organizational structure and strategies made them widely popular.
For proper growth in the market organizations should implement and maintain a proper organizational structure. The organizational structure of the Bank is very effective and efficient that provides them an extra advantage over other competitors (Alexander 2013). The important employees and managing bodies are all compromised by the organizational structure. In their organizational structure the board of commissioners plays an effective role. The board is consist of directors, stakeholders, owners and many more. They utilizes three level management schema as lower management, middle management and top management.
Although Commonwealth bank of Australia is one of the largest bank in the Australia, like every other enterprise they are also facing some operational problems within the organization. This problems are normally very significant and proses danger for the organization well-being and growth. This problems are also crucial and may affect the market share of the organization. For the degradation in the shares the bank is facing several problems. One of the biggest problem they are facing is to satisfy the client needs. The situation is very crucial as they cannot even provide loans to the customers (Arvidsson, Holmström and Lyytinen 2014). This issue is mainly occur because of the wrong strategic approach. Another biggest problem is the rise of several competitors as they provide modern functional technology. This competitors are very harmful to the organization as the market trends are altering rapidly. The growth of the new type of the technologies in all over the world is also effecting the bank.
In the above graph, during the period of June and July 2013, the share revenue has increase up to 70%, however, recently, it has gone decreases to 20%.
Commonwealth Bank of Australia used ERP as a system acquisition method. It helps in the integration of various processes. The bank has to deal with several processes like:
Risk management
The above flowchart provides the sales process of the bank. The three components are review, respond as well as evaluate. The first step is the customer visiting the bank and reviewing the sales process. Then, he will respond to the fact that how he has liked that process. Finally, his request would be evaluated in the last step.
The significant problems that this particular organization of Commonwealth Bank of Australia is facing within their business mainly involve the degradation in the bank shares and lack of popularity. CBA itself is a brand and due to all these problems, their name is getting stained. This is mainly because of the ineffective marketing team of the organization. Moreover, they should emphasis on their client relationship management for considerate their customers. The types of frauds that are common for their bank are the fake emails that are claimed to be coming from the bank. The bank does not have any ideas about these emails and if any type of problem occurs due to this type of emails, they might be under major problem as the customer will not know the truth. Phishing is another fraud within the system.
Accounting software packages are the most effective application software that is utilized by several popular organizations to gain significant advantages within their business. These are always based on the Internet and thus have the core advantages of being accessed from anywhere and at any time. Moreover, another significant advantage of this accounting software package is that it does not remain restricted to any specific device or computing system or rather could be accessed from any computing device that has Internet connectivity. This device could even be based on desktop or laptop. The complexity and the cost of the software are varied on the basis of the software.
The most utilized accounting software packages within the business world are Myob, Xero, QuickBooks, FreshBooks and many more. Commonwealth Bank of Australia is utilizing or rather has implemented the software package of Xero in their bank system. They have got all the advantages or benefits within their system due to this. Xero is a cloud based accounting software, which is mostly effective for the small and the medium sized enterprises. The most significant advantages that Commonwealth Bank of Australia has got from Xero are as follows:
Less Time Consuming: Another significant advantage that the Commonwealth Bank of Australia has got from the accounting software of Xero is that it does not take up huge time and the overall time consumption is extremely less in comparison to others. This is solely because the Xero is cloud based software and thus comprises of all the advantages of cloud computing. Automation of processes is enabled with this software and it reduces manual entry, thus reducing the overall time consumption.
Easy Update: There is always a hassle for up gradation in any software. However, Xero helps to reduce that problem. It upgrades automatically and hence the up gradation is done substantially without involving any person in it.
The market size of any specific organization demonstrates the market position of that company in the market. This also helps to deduce the total market shares of the company. If the market shares of the organization are on the higher side, the organization is listed on the top position amongst all others. However, if the shares of the organization are degrading or on the verge of falling, the organization is bound to face difficult situations in its business. Following is the current market size of the Commonwealth Bank of Australia.
The above graph has shown the degradation in the total shares of the popular bank of Commonwealth Bank of Australia. In the year 2006, it war around 283; in the year 2014, it has gone down to 262.
The specific product of any company that provides utmost competitive advantages for the business and thus making the organization best amongst the substitute organization is known as the best product in the market. The organization, which has gained these organizational benefits, is known as the market leader. The Commonwealth Bank of Australia is one of the best banks in Australia and New Zealand. However, few more banks are also present in this race. These banks are known as the competitors of the Commonwealth Bank of Australia. The shares of all the banks with the position of them are given below:
The above graph shows the position of the market in present situation. The Commonwealth Bank of Australia is the market leaders with 20% shares. The second position is acquired by National Australian Bank or NAB (Bryson 2017). The Commonwealth Bank of Australia have to increase their shares for being on the top position.
There are various gaps in this organization of the Commonwealth Bank of Australia. The first problem is the high rates of interests that become a major problem for them as they are unable to keep their existing or new customers. The suggestion for this problem is decrease the interest rates and thus they would be benefitted in keeping their existing or new customers. The second problem is the money security. The people are worried about their money and thus they are avoiding this bank. The recommendation is to advertise their bank more often so that people get to know about them.
Conclusion
Therefore, from the above discussion, conclusion can be drawn that strategic information system is the most effective information system that helps in taking up each and every strategy for the betterment of the business. It is considered as the part of information technology that incorporates all types of important information systems. The entire process of decision making becomes extremely easier with this strategic information system (Yoo 2013). The competitive advantages of any specific business are easily obtained with this type of information system. The competitive advantages are extremely important for any business to understand their position in the market. Accounting information system is the second part of information system that helps to deal with all the financial transactions or finance related decisions. The accounting software is the typical type of application software, which is responsible for recording as well as processing of all the accounting transactions in the various functional modules. The task of this accounting software is exactly like the AIS or accounting information system. Several significant organizations have taken this accounting software package within their business to properly execute the business operations. The literature review has provided the detailed description of the importance of strategic information system and accounting software packages within the popular bank of Commonwealth Bank of Australia. They have been considered as one of the best banks in Australia and New Zealand. Moreover, they are utilizing the accounting software Xero within their business and are thus all the advantages of this popular cloud based software (xero, 2018). All the details with proper recommendations are mentioned in the review.
Reference
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