In this section, I will review Inghams Enterprise, an Australian food firm specializing in chicken and turkey products. Some of these products include fresh whole chicken; fresh chicken breast fillet, similar turkey products, and boneless chicken just to mention a few. The firm`s headquarters are located in Liverpool, Australia. It is one of Australia’s biggest vendors of turkey and chicken products and has a workforce of more than 9000 employees within over 100 locations in New Zealand and Australia. The company`s operations are featured by extensive use of accounting software packages.
The Enterprise`s current organizational structure
Organizational structure depicts the formal and informal style in which duty and obligations and types of power are created and arranged within an entity (Karen & Grafton, 2008). They go on to say that, comprehending organizational structure concerns knowing the way decisions are arrived at and what command chain is followed, what process orders service delivery to customers and how one’s job expectancy match the greater scheme of things. This implies that each entity has a particular structure on which its functions are anchored and regulated on a daily basis. In each organization, the power arrangement normally follows a hierarchical channel and contains clear descriptions of the powers bestowed on the respective individuals, the limits within which such powers can be exercised, the criterion to be followed when such powers are being delegated and most of all, the section of individuals on whom the powers are to be exercised. However, the most vital aspect of the organizational structure is the way responsibilities and power are shared and articulated towards accomplishing the overall organizational targets. This means that all the aspects of the organizational structure are designed and geared towards facilitating the timely, efficacious and holistic achievement of the general objectives of the organization. The organizational structure of Inghams Enterprises appears as shown below;
Operational setbacks related to the above structure
The most evident operational problem is the issue of the top-down communication channel. Top-down type of reporting and communication may create challenges (David & Hugh, 2007). This is whereby the senior management gives communication for instance through letters and memos to the junior employees about various useful events or urgent activities within the organization. Such events or activities may include an upcoming workshop, benchmarking tour to another similar organization, the introduction of new or modified regulatory work policies and changes in the company`s departments and much more. As such, there is less, if any, bottom-upward communication within such an entity. This implies that most of the times, the junior employees find it quite difficult to report crucial daily operational challenges they may encounter or even offer suggestions to the senior management about the most suitable steps or measures to take to improve the firm`s performance and consequently increase sales. This is attributed to the fear they may have for the top managers coupled with the culture of keeping everything to themselves rather than speaking it out. There exist substantial discrepancies between the real and prescribed structure (Elizabeth, et al., 2005). According to them, this may take place during the transition from an old to a contemporary structure, and this threatens the organization`s stability. The add that, there is an increasing functional separation, that is, functions running in isolation of other functions and this causes reduced communication and coordination particularly between the lower and middle management. However, organizational structure and designs are presumed to ensure a satisfactory fit with the demands or limitations of the setting (David & Hugh, 2007). It is essential for the management to monitor the staff conduct, coordinate their activities and also determine the criteria for motivating and rewarding them to avert some of the operational hiccups.
Most possible system acquisition way
Based on the large size of the company, the most suitable method would be the Enterprise Resource Planning (ERP). ERP systems are not more than twenty years old within the industrially advanced areas of the globe and frequently less well known within the advancing areas (Kamran, 2005). He adds that, however, business, traders, and manufacturers are losing out on the immense gains and wealth which is created by command and embrace of the system. According to him, ERP enables the integration of firm`s activities like management of sales orders, production planning, accounting, production, procurement, human resource and logistics among others. Inghams Enterprises is more likely to reap tremendously from the ERP system. The systems improve decision making featured by reduced inventory, workforce decrease and much more and that is why ERP systems are panoramically used by entities worldwide to establish economic value (Kamran, 2005). According to him, in essence, ERP promotes the creation of value by transforming the fundamental nature of firms in a number of ways namely; by incorporating firm activities into one system, by introducing best practices within their functionality, by organizational nominalization, by obliterating information imbalances, by offering online and real-time information, by permitting synchronic access to similar data for control and planning and by aiding inter and intra- firm communication and coaction. However, it is paramount to realize that there still exists sizeable work to be executed for an entity to enjoy complete ERP benefits (George, 2009). He adds that such work includes redefining the business procedure, designing and implementing interfaces with present systems, creating databases, training users and many others.
The system flowchart of the entity`s sales process
System flowchart describes the relationships among system inputs, processing and the outputs (Marshall, et al., 2012). They add that a system flowchart starts by determining system inputs plus their sources, the input is then ensued by a process done on data, and finally, the consequent new information is the input element. According to them, the output can be stored for later consumption, shown on a monitor or even printed on paper. It articulates the various activities within the sales process to enhance effectiveness, quality, and speedy work. However, inefficiencies within other processes in the sales department impact the sales procedure (Barton, 2008). The systems flowchart of Inghams Enterprises would appear as follows.
|
Input sales data |
Edit data |
Inventory status |
Customer Account status |
Print customer receipts |
Sales Analysis |
|
→ |
→ |
→ |
→ |
→ |
→ |
|
↑↑ |
↓↓ |
||||
|
↑ |
← |
← |
← |
← |
← |
It clearly shows how the activities are vividly coordinated moving from input sales data, edit data to inventory status, customer account status, print customer receipts and finally to sales analysis.
Control problems associated with the system
The ERP system usually faces some challenges, and that is partly attributed to its ability to multitask. The system involves three aspects namely; input, process, and output. Input includes identifying, measuring and data capturing while process comprises recording, classifying, summarizing and lastly output constitutes reporting, evaluating, analysing and comparing (Weil & Noi, 2001). They add that the processing element of the accounting system involves the change of the input data into an orderly database which allows for subsequent preparation of financial statement. According to them, output system includes reports which often present fiscal information of a firm`s operations within a given period and its fiscal position at a given time point, often called financial statements.
However, controls are indispensable since we live in a corrupted world where activities seldom go as intended (Marshall, et al., 2012). They add that, although some are accidental, others are calculated ignorance for ethical and legal standards. They argue that entities are facing the increasing risk of compromise to their systems due to the growing complexity of accounting information systems meant to satisfy our intensifying needs for information. Studies have indicated that 60% of organizations had experienced a security breach, more than 40% were preyed by organized crime and 60% reported fiscal losses (Marshall, et al., 2012). They further say that the four kinds of threats to the accounting information system of a company include political and natural calamities, equipment malfunction and software errors, intended and unintended acts.
The growth and embrace of the accounting software packages
The year 1953 could be considered the year of the emergence of accounting computer era (Murugan, et al., 2012). They add that computer invention overturned the accounting function since it allowed business to record their activities electronically and that during the late 1960s and 1970s, the business setting developed in complexity and this necessitated the establishment of summarized transaction. However, according to (Donglin, 2013), accounting software industry began towards the end of the 1970s. Today, accounting software is widely used by many businesses of all sizes, and this is greatly due to their ability to simplify accounting work and producing precise, quality and presentable output.
Today`s market size
The present market size financially is about 2.9 million dollars and constitutes several key accounting software developers across the globe. According to AMR research, top five sellers include Oracle, Sage, Sap Group, SSA Global and Microsoft and they account for 72% of the total revenue of ERP vendors (Alexis, 2008). He adds that, Sage Group`s ERP market share is at 6% while Oracle’s ERP market dominance is about 42% and that it is the 3rd world`s largest software developer. Sage is based in Europe and is mightier in Europe and has silently put together strong ERP software employing a strategy combining organic sales growth and adoptions (Alexis, 2008). According to him, its revenues grew to about $ 1.4 billion in 2007 and that Oracle has almost doubled its size of application business via the adoption of PeopleSoft. The two firms intend to expand their market dominance by introducing more consumer tailored cloud-based accounting software, especially for the medium sized entities. This is because the medium-sized businesses are the most thriving and have an increased need for accounting software applications to sort their increasingly complex accounting tasks.
Giants in the market and their competitive merit
Some of the renowned accounting software dealers include Xero, Sage, Sap, Oracle, Microsoft, and Intuit among others. Sap enjoys a customer base of about three hundred and ten thousand globally, and its stock financial performance is remarkable (eSolutions, 2016). According to the website, what gives Sap a competitive merit is its wide variety of products like SageX3, SageX3 cloud, Sage 100, Sage 500 ERP, Sage CRM and others. Similarly, Sap enjoys a wide variety of software products in the market too. They both enjoy recognition of their brands, worldwide reach, and strong performance in the stock market and a rich history of offering authentic solutions to firms of all sizes (eSolutions, 2016)
Today`s gaps faced by users of accounting software packages and the subsequent recommendations
Every other system is bound to have hiccups especially if it is software. The products of the accounting software from the various developers normally experience some technical problems once in a while. Some of the Sap and Sage products exhibit some lacking for instance; Sap Business One has limited production capacities and lacks an upgrade path to suit a different technology (eSolutions, 2016). This means that it becomes quite hard to advance such software to match the modern technology as well as to meet the present demands of the cloud-based accounting software. At times it proves to be problematic for such software developers to update their applications to correspond to the ever increasingly sophisticated technology. Other problems include technological malfunctioning, lack of enough user expertise, and skills, power outages when using the accounting software packages which may cause the loss of essential data in case it is not saved and possible malware attacks among many other challenges.
The recommendations I would give to mitigate the above-highlighted challenges are as follows: the accounting software firms should ensure that they invest in a continuous research process that facilitates the smooth of update of their applications every other time with minimum, if any, friction, providing user manuals which are simplified and user friendly, diversifying their software products to suit the dynamic needs of the commerce market and improving the software to avert regular breakdowns, crushing or even malfunctioning just to mention a few. Nevertheless, the software companies are doing a commendable work in developing accounting software which has been and continues to be of remarkable aid to many businesses globally.
Reference
Alexis, L., 2008. Enterprise Resource Planning.: Tata McGraw-Hill Education.
Barton, J., 2008. CRM in Real Time: Empowering Customer Relationships.: Information Today Inc.
David, K. & Hugh, W., 2007. Introducing Organizational Behaviour and Management.: Cengage Learning EMEA.
Donglin, X. (ed.), 2013. Case Studies on Chinese Enterprises.: Routledge.
Elizabeth, D., Anacreon, C. & Gyorgy, J., 2005. Biomatrix: A Systems Approach to Organisational and Societal Change.: BiomatrixWeb.
eSolutions, R., 2016. SAP ERP vs Sage 50 2017 comparison/ FinancesOnline. [Online]
Available at: https:// comparisons.financesonline.com/sap-erp-vs-sage-50-2
George, R., 2009. Information Technology for Managers.: Cengage Learning.
Kamran, H., 2005. Best Practices in ERP Software Applications: Accounting, Supply Chain Planning, Procurement, Inventory.: Universe.
Karen, K. & Grafton, H., 2008. Understanding Generalist Practice. 5 ed.: Cengage Learning.
Marshall, R. et al., 2012. Accounting Information Systems Australian Edition.: Pearson Higher Education AU.
Murugan, A., Asokan, A. & Cadambi, A. (ed.), 2012. Business Intelligence Techniques: A Perspective from Accounting and Finance.: Springer Science & Business Media.
Weil, S. & Noi, S., 2001. Introductory Accounting Skills: For Financial and Management Accounting Students.: Juta and Company Ltd.
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