Organizational Structure

Discuss About The Strategic And Cultural Challenges Enablers?

The following report is aimed at describing the organizational structure of Woolworths, the leading food retailer in Australia and the issues that are associated with its operations due to the structure adopted by the organization. Thereafter, the report would be directed towards obtaining an illustration of the potential system acquisition methods, sales flowchart, control issues and possibilities of fraud that can be observed in system chosen for the organization. Information systems are perceived as a major corporate asset owing to the higher price of the systems and the benefits facilitated by them.

The necessity for critical analysis of the available options in the domain of information systems acquisition could be perceived as a contributor to the long term support for business initiatives. The prominently observed sources of systems acquisition that can serve the strategic information needs of the organization are observed in external or in-house solutions. The flowchart for the sales procedure would provide a legible impression of one of significant aspects of strategic information. The understanding of the sales procedure allows the apprehension of distinct sources of revenue that can be apprehended in the distinct stages of the sales procedure. Thereafter, the organization must also consider the specific limitations which could be observed in the case of controls and issues of fraud that could be associated with the information system.

The organizational structure of Woolworths is observed to be a flat organizational structure with minimal layers of hierarchy. The characteristic element of centralization could be observed in the form of reporting of the lower levels of management to the CEO of the organization (Amrollahi, Ghapanchi & Najaftorkaman, 2014). The improvement of the efficiency of organizational workforce could be assumed as a feasible outcome from the flat organizational structure which could be noted from the reduction of middle layers of management. The notable advantage that can be drawn from the exclusion of middle management refers to the access to human capital that can be redirected towards other crucial functional areas involved in the top management and ground management (Arvidsson, Holmström & Lyytinen, 2014).

The organization derives a profound advantage from the flat organizational structure in the form of increasing flexibility of communication among the senior management and store staff. The different implications that can be drawn in context of the flat organizational structure also refers to the interactions between customers and employees at the storefront as well as the personnel involved in the sales and marketing department of Woolworths. Woolworths has sustained its reputation in the domain of food retail sector in Australia alongside addressing the variations in customer preferences and the dynamic changes observed in the external environment with the help of its flat organizational structure  (Haron, Sabri & Zolkarnain, 2013). The requirement of a strategic information system is required for Woolworths in order to address the gradually expanding operations of Woolworths which could support the existing system platforms of the organization in order to facilitate efficiency in functional areas such as supply chain operations and inventory management.

Operational Issues

The operational issues that could be anticipated in the case of Woolworths due to its organizational structure involve prominent references to the limitation of control privileges for the organization’s management. Since the operations of Woolworths are executed on a large scale in Australia, the organization’s management requires flexible allocation of responsibilities to managers and employees as well as effective distribution of organizational objectives (Henriques de Gusmão & Pereira Medeiros, 2016). The allocation of responsibilities could become ambiguous since the flat organizational structure does not imply any possibilities for formal communication channels that could lead to profound operational issues. Another profound operational issue that can be perceived in the case of Woolworths refers to the management of human resources since the human capital is responsible for reviewing the decisions that are suggested by the senior management.

This factor leads to profound issues in the effective realization of control implications in the management of store level staff alongside the concerns for professional relationships and the personal interaction between employees and the management. The significance of personal relationships could be assumed as profound implications for developing accountability of employees for their professional objectives and responsibilities alongside the proliferation of trust in the organization among employees (Jin, et al., 2014). Woolworths is also liable to experience detrimental consequences in its operations due to the organizational structure such as issues arising out of power conflicts and depreciation of employee motivation. The critical review of these operational issues is essential to apprehend the requirements for a strategic information system for the Woolworths (Lee, et al., 2015).

The selection of a viable system acquisition method is necessary for Woolworths in order to assist the organization in addressing operational issues identified in case of the organization. The two prominently known methods of system acquisition involve external and internal system development mechanisms. The external sources of deploying a strategic information system could be observed in outsourcing, cloud computing, open source applications and off-shoring practices (Osman, El Beltagi & Hardaker, 2015).

Accounting to Parry, De Bock & White, internal information systems development could be ensured through employing an in-house solution for developing the information system. The internal information systems development approach could be classified into the distinct methods of life cycle development and rapid application development (Parry, De Bock & White, 2015). The preferred system acquisition method that can be applied in the case of Woolworths is through external method of outsourcing that would enable it to acquire a custom developed information system which could help the organization in realizing cost effectiveness alongside catering the information management needs such as flexible retrieval of stock information from distribution centres that would enable employees to work in real-time.

Systems Acquisition Method

As per Rahman, the sales procedure flowchart is considered as a crucial resource for an organization to outline a system for ensuring sale of products facilitated by Woolworths. The emphasis on the sales procedure could be apprehended from the factor that sales of a product of service signify the development of relationship between customer and the service providers (Rahman, 2016).

The sales procedure in the case of Woolworths is initiated with advertisement and marketing initiatives to increase awareness regarding the products. The advertisement process is followed by customer recognition and determination of pricing to address different customer segments. It is imperative to understand the pricing is followed by customer’s analysis of the product according to various quality dimensions. The final stage in the sales procedure is the purchasing of product by customer.

The control issues that could be identified for Woolworths refers to the implications of data vulnerabilities observed in security frameworks accessible for the organization. The possibilities that could be drawn from the organizational structure of Woolworths in context of threats of fraud involve the role of interdependence among different departments of the organization.

As per Salleh, et , the interrelationship between the different departments of Woolworths is also reflective of the design reforms in the strategic information system implying lack of access controls. Therefore, confidential information could be easily misplaced leading to detrimental consequences for Woolworths which creates the necessity to prepare contingency plans for these threats for obtaining credible outcomes from the information systems (Salleh, et al., 2015).

The objectives of financial asset management in contemporary business scenario are largely addressed by development in computers as well as information and communication technology. The proliferation of accounting information systems have not only provided credible opportunities for flexible documentation and management of accounts in organizations but also provided facilities for monitoring of cash flow (Sugiharto, 2016).

The accounting information systems are considered as credible resources to monitor the utilization and performance of financial assets of an organization thereby providing opportunities for long term sustenance in the marketplace. Various research studies and secondary information pertaining to accounting information systems have indicated their effectiveness in providing stability and control over financial management of an organization.

The accounting software packages could be broadly described as application software intended for documentation and management of the different accounting transactions related to the organization such as accounts payable, billing, accounts receivable and general ledgers. According to Tarigan & Kraus, the software package also serves the role of a strategic information system through assisting in simplification of the financial management process of an enterprise. The development and adoption of accounting software packages are largely reliant on the industry in which the organization is operating (Tarigan & Kraus, 2017). For example, organizations in the retail sector which have a wide expanse of operations require an accounting software package for effective control of the outflows in the outlets and the financial inflows.

Sales Procedure

The development of an accounting software package should be characterized with the flexibility of use and access through the internet. The accounting software package should be able to provide managers with the opportunity to access data from mobile devices which is responsible for drastic reduction in complexity and costs involved with departmental operations (Wali, Sadq & Rasheed, 2016). Core models of accounting software packages applied for inventory management and billing could also be assumed as sources for flexibility in the adoption of the packages.

The market for accounting software packages has expanded rapidly due to the profound concerns presented by intensive competition with companies increasing adopting accounting information systems to acquire feasible documentation of their books. The distinct stages of evolution in the designs of accounting software packages have indicated noticeable improvement in the diversity of their application. The efficiency of marketing software packages such as MyOB, Sage, Nominal, Reckon One and Xero have provided adequate opportunities to business management all across the world to monitor their accounts without the requirement of any professional or academic proficiency in accounting management (Waters, et al., 2013).

The market leaders such as MyOB and Xero have described their prominence in the current accounting software market with the integration of comprehensive features such as audit services and tax management applications in the packages.

The packages ensure that the outcomes of processes involved with calculation of tax and the audit services are independent of the potential changes in the economic environment. Furthermore, the development of features such as provision of consultancy and advisory services facilitated through technological means could also be accounted as a major impact on the improvement of market size for accounting software packages.

The accounting software packages provided by market leaders are capable of addressing the different functions through the integration of core and non-core modules. The market leaders in Australia’s accounting software sector include references to Xero and MyOB. The ability of these market leaders to provide distinct facilities such as industry specific products, location specific products and convenient functionality that are integrated in single software provides customers with the flexibility to use the software.

The other characteristics that can be apprehended in the case of these market leaders in accounting software packages refer to profound market share, service resources and extensive scale of functions. These accounting software market leaders are capable of acquiring competitive advantage in the form of facilities for comprehensive integration of the different departments and relevant accounting information for a single platform alongside emphasizing profoundly on the accomplishment of needs and requirements of potential clients (Wiyatno, Alam Napitupulu & Abdurachman, 2017). The integration is helpful for identifying specific details involved in the software as well as its functioning leading to exclusion of loopholes and simplification of the accounting experience for clients. The utilization of these attributes is significant for organizations to obtain feasible outcomes such as reduction of manual intervention in accounting management and the simplification of processes pertaining to billing and inventory management.

Control Issues

The application of accounting software packages in case of organizations which have extensive scale of operations and the relevant activities such as development, installation, adoption and configuration of the package could be a complicated task. Another profound setback in context of accounting software packages is observed in the form of cost of the packages since clients are ambiguous regarding the relevance of the package for their business needs (Wali, Sadq & Rasheed, 2016). Furthermore, the concerns of costs are complicated by the requirement of periodic investments for the maintenance and support services related to the installed software. Therefore, the implementation of accounting packages should focus on the scope of adoption which could enable the client to review the design of the package and demand necessary reforms suitable for business requirements.

The exclusion of certain modules from the packages could also enable price differentiation which can enable customers to acquire accounting software according to the specific modules required for their business needs. The involvement of the clients in development process could also be presented as a viable suggestion to improve the effectiveness of the accounting software packages since organization specific details could be integrated for design of the package thereby facilitating privilege of customization.

References

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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.

Haron, H., Sabri, S.M. and Zolkarnain, Z.N., 2013, November. A situational analysis of Strategic Information System Planning in the context of a Malaysian SME. In Research and Innovation in Information Systems (ICRIIS), 2013 International Conference on (pp. 539-543). IEEE.

Henriques de Gusmão, A.P. and Pereira Medeiros, C., 2016. A model for selecting a strategic information system using the FITradeoff. Mathematical Problems in Engineering, 2016.

Jin, P.J., Walker, A., Cebelak, M., Walton, C.M. and Nassar, E., 2014. Strategic environmental sensor station (ESS) location determination method based on weather-related crash data for road weather information system (RWIS). In 93rd TRB Annual Meeting.

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Parry, G., De Bock, R. and White, G.R., 2015. Global Information System Implementation: A Study of Strategic and Cultural Challenges and Enablers in a DMNC. Strategic Change, 24(5), pp.447-462.

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Salleh, S.M., Kassim, E.S., Sari, N.A.M. and Yunus, N.A.M., 2015. Conceptualizing User Bonding on Strategic Information System Development Success. Advanced Science Letters, 21(6), pp.2024-2027.

Sugiharto, T., 2016. Business And Information System Strategic Alignment: Determinants And Impact On Rural Bank Organizational Performance.

Tarigan, J. and Kraus, W.A., 2017. The Impact of Strategic Leadership Program as ODI on the Usage Accounting Information System and Financial Performance. Journal of Progressive Research in Social Sciences, 6(1), pp.410-421.

Wali, A.I., Sadq, Z.M. and Rasheed, J.S., 2016. The Role of Strategic Information System Characteristics on Customer Service Quality (An Empirical Study at Soran and Sardam Private Hospitals in Iraqi Kurdistan Region Erbil City). International Journal of Humanities and Cultural Studies (IJHCS)? ISSN 2356-5926, 3(2), pp.1778-1790.

Waters, K.P., Zuber, A., Willy, R.M., Kiriinya, R.N., Waudo, A.N., Oluoch, T., Kimani, F.M. and Riley, P.L., 2013. Kenya’s health workforce information system: a model of impact on strategic human resources policy, planning and management. International journal of medical informatics, 82(9), pp.895-902.

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