Overview of Accounting System Software

Discuss about the Multi-Dimensional View of Strategic Information System.

This report provides an overview of the Accounting software which is associated with execution along with the tracking and operating the various transactions of the different departments of accounting with diverse models which are very much effective. The “accounting system software” is mainly associated with working as the information system for accounting. This literature review is mainly associated with outlining the various discussions about the famous bank of Australia known as the Commonwealth Bank. The review greatly helps in understanding the structure of the organization along with understanding the various problems faced by the organization which might include the inefficiencies or the errors. The review helps a lot in understanding the flowchart of the sales and also the shares that the Commonwealth Bank is having. This literature review also consist of the various leaders of the market or the size of the market or the competitors present in the banking market.

The Commonwealth Bank of Australia is considered as one of the recognized bank of Australia and has its branches in Asia, US and many other countries as well. The bank is associated with providing a diverse services related to financing which might include the management of funds, investments and the loan services, organizational banking, retail banking and many more. According to ASE or the Australian Securities Exchange the Commonwealth Bank is the best bank of the year 2015. The organization started its banking services in the year of 1911 by the Australian Government (Commbank.com.au 2017). This bank is one of the top four bank in Australia. The main competitors of this bank are the other three banks which are namely the ANZ bank, Westpac and the Australian Bank or eth NAB.

The structure of the organization mainly consists of the management section and the corporate section along with the managing bodies and also the employees (Macdonald, Burke and Stewart 2017). The structure of the organization has been provided below which shows the various managing bodies and also the top management as well as the middle management and the lower management:

The Commonwealth bank of Australia is considered as one of the top four banks of Australia. But despite of being one of the major banks of Australia it has been facing a major turmoil in their business activities and also in the market shares. In last few years the shares of the company has fallen at a very rapid rate. The major reason which has been lying for this degradation is the adaptation of the strategies which are wrong. Along with this various strategies has also been adopted by the bank in order to overcome the various problems and also for improving the shares of the bank (Vasardani et al. 2013). It has been seen that almost each and every strategy has gone wrong and this happened due to the fact that there were constant iterations in the trends of the market. The reason which is responsible for this type of alteration in the structure of the organization is the competitions which are faced by the Commonwealth bank. The bank was not capable of satisfying the need of the customers. And because of the constant downfall of the shares the bank was not capable of providing loans to its customers and along with this the customers also lost their interest due to the high rate of interests (Hall 2012). This initially made the customers not being able to pay the loans easily which initially made reduction is the rate of taking loans and opening of the new bank accounts. The figure provided below shows the downfall in shares of the Commonwealth bank.

Overview of Commonwealth Bank of Australia

The figure provided above shows the major downfall in the share of the bank. It can be seen that the shares were almost above 76 which was very good for the bank. But after passing of few years the degradation of the shares took place drastically and it was seen that the downfall took place at a sharp rate. It can be clearly noticed that the shares of the bank had almost gone down to about 75.5. For the figure it can be clearly concluded that the bank was totally inefficient in holding the customers back. Along with this the new customers got effected as well. And this happened due to the fact that the customers were scared about making investment in the bank. They were also not taking any type of loans form the bank and this happened due to the reason that the rate of interest was very much high (Soudani 2012). The customers mainly make their investments and takes loans form those banks where the rate of interest is low and this would also make them feel safe and their money is also secure.  Another problem which was faced by the bank was insufficient number of staffs in the different branches of the bank as compares to the number of customers who were visiting the bank at a daily basis. The staffs and the employees were also not having a polite behavior toward the customers as well and this made a negative impact over the clients.

For the betterment of the bank and the clients the Commonwealth bank has been following certain strategies and mainly focuses on the four major components which has been described below:

• Customers: This is first and the most important element of the ban. And if the customers will stop coming to the banks then the shares of the bank would be falling at a drastic rate which might even lead to closure of the bank as well.
• Technology: One of the major component is the technology. It is very much necessary for the banks to change their ideologies in accordance to the modern technologies so as to match with the technology of the rest of the world (Haux et al. 2013).
• Strength: The Common wealth bank’s major strength includes their teamwork. The staffs and the employees have been working together in order to obtain the various goals of the organization.
• Productivity: This can be considered as the final strategy which mainly includes the focus on the productivity. Records are kept by the bank at a regular and annual basis about the productivity of the bank as well as the employees.

Commonwealth Bank of Australia is mainly associated with adopting the Enterprise Resource Plan or the ERP as a system for Acquisition model.  The organization uses the ERP as the procedure, along with this it is also used as the manufacturer’s controls and amalgamates. All this acts as one of the major portions of the business. The information system or the IS which is required for the purpose of managing the ERP along with this it is also associated with combining the major area of an organization business. This might include the “marketing”, “sale”, “planning”, “finance”, “purchasing” and the “human resources”. Various organization uses this method or technique for the purpose of achieving various types of goals and objectives (Laudon and Laudon 2016). The Commonwealth Bank is associated with using the “basic systems”, “applications”, and the “products model or the SAP model” in their business processes. With introduction of the SAP in the business which is a very complex process and requires a lot of training and knowledge. Along with this it would also be helping the organization to obtain proficiency in the programs as well as the software which would be running with the modules of the SAP. The bank was capable of achieving success because of the advantages provided by SAP which includes the integration at an extreme rate and also the flexibility. Sap is also cost effective so it is also considered to be advantageous (Jawabreh and Alrabei 2012). The wrong strategies followed by them in the past days made it face the problems. In order to make the shares steady the bank updates the SAP and also renews it. In order to make the clients get interest on taking loans the shareholders of the bank has been trying to reduce the rate of interests.

Structure of Commonwealth Bank of Australia

The figure that has been provided above describe the processes of the bank and also illustrates the procedures of the bank as well in details. This would help the bank in finding the loopholes present in the process. This flowchart has been categorized into three basic components this includes the review, evaluation and the responses. Feedback id included in the review part. The review par includes the feedback about the bank from various customers. The process of evaluation mainly includes the answers and the steps which are very much necessary and are taken form the feedback. The third portion includes the respond and mainly compromises of the functions and the process of the bank (Simkin, Norman and Rose 2014). When the bank does not respond on time then necessary steps can be taken and the functions includes the e-banking, credit card services and many more.

The various types of problems that are being faced by the bank has been associated with creating lot of modifications in the bank sector. The organizations growth is mainly dependent on the “shareholders”, “clients” and the “marketing team” of the organization. The problem that has been existing in the system of the Commonwealth have been creating a high influence over the brand name of the organization which is not at all good.

The importance of including various customers in the designing process has been understood by the organization. It is essential that the customers are involved with the Commonwealth bank this would be helping in the maintenance of the will power of the work and also involves the employees of the organization. The process by which the services are being provided act as one of the basic need for the particular case (Arvidsson, Holmström and Lyytinen 2014). The business process of the organization started in the year of 1911 followed by which the organization should have focused of different marketing alterations by making use of various innovative trends.

This is one of the important feature of the organization especially for organizations like bank. The business operations of the bank are centered on the customers so it is their duty to fulfill all the needs of the custmers. CRM is the characteristic which mainly describes the techniques and the other strategies which are used by the organization in order to maintain a good quality relation with the customers (Galliers and Leidner 2014). The CRM of the bank was not so efficient in order to maintain a good relation with the customers.so there is a need of focusing on the CRM by the Bank.

Problems faced by Commonwealth Bank of Australia

The Commonwealth bank has been going through various challenges and threats which can be reduced only by the introduction of the accounting software in the business. The Commonwealth bank is associated with using the B2C or business to customer software package. The various advantages of the B2C mainly include the following:

1. Reduction of the competition gap
2. Flexibility
3. Eradication of Middlemen
4. Cost Effective
5. Training not required.

The figure provided above shows the slight degradation that has occurred in the shares of the market of Commonwealth Bank of Australia. At the early stage the share was around 283; but now the shares have gone down to around 262.

The core and main competitors of Commonwealth Bank are shown in the figure provided above. The name of the banks listed above are the main competitors of this particular bank. However it has been seen that the Commonwealth Bank has be associated with the gaining of the maximum number of shares. From the chart it is seen that 20% of the total shares and clients are taken by Commonwealth Bank. NAB Australia has taken almost 16% and whereas the ANZ has taken almost 13%. The rest of the banks has got the remaining shares and clients (Ismail and King 2014). The pie chart clearly shows that Commonwealth Bank is having the winning position and is associated with getting the competitive advantage than the rest banks which means Commonwealth bank is the market leader.

Conclusion

The above discussion helps in concluding to the fact Commonwealth Bank of Australia is listed as one of the major leading banks of Australia and New Zealand. Despite of taking the top position in the list the bank has been associated with facing a lot of problems in the business processes. Due to all this problems the bank is becoming less popular amongst the customers and the shares are also going down at a rapid rate. However, the bank is trying a lot to overcome all the tough situations by making use of different innovative ideologies and strategies in their business. The above literature review has been discussing about the structure, errors, inefficiencies and the process designing of Commonwealth Bank of Australia.

References:

Arvidsson, V., Holmström, J. and Lyytinen, K., 2014. Information systems use as strategy practice: A multi-dimensional view of strategic information system implementation and use. The Journal of Strategic Information Systems, 23(1), pp.45-61.

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.

Haux, R., Winter, A., Ammenwerth, E. and Brigl, B., 2013. Strategic information management in hospitals: an introduction to hospital information systems. Springer Science & Business Media.

Jawabreh, O.A. and Alrabei, A.M., 2012. The impact of accounting information system in planning, controlling and decision-making processes in Jodhpur hotels. Asian Journal of Finance & Accounting, 4(1), pp.173-188.

Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.

Macdonald, I., Burke, C. and Stewart, K., 2017. Systems leadership: Creating positive organisations. Taylor & Francis.

Sasono, A.D., Alimudin, A., Kamisutara, M. and Inayati, I., 2015. Development of accounting information system (SIA-UMKM) with waterfall approach to standardize UMKM financial report based on standard of accounting financial entity without public accountability (SAK-ETAP). J. Basic. Appl. Sci. Res.

Simkin, M.G., Norman, C.S. and Rose, J.M., 2014. Core concepts of accounting information systems. John Wiley & Sons.

Soudani, S.N., 2012. The usefulness of an accounting information system for effective organizational performance. International Journal of Economics and Finance, 4(5), p.136.

Toth, Z., 2012. The current role of accounting information systems. Theory, Methodology, Practice, 8(1), p.91.

Vasardani, M., Timpf, S., Winter, S. and Tomko, M., 2013, September. From descriptions to depictions: A conceptual framework. In International Conference on Spatial Information Theory (pp. 299-319). Springer, Cham.

Commbank.com.au. (2018). Personal banking including accounts, credit cards and home loans – CommBank. [online] Available at: https://www.commbank.com.au/ [Accessed 4 Sep. 2017].