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Digital Enterprise And Supply Chain

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Question:

Discuss about the Digital Enterprise and Supply Chain.
 
 

Answer:

Introduction:

This section of the paper focuses on the organization “Woolworths” which is considered as one of the multinational supermarket of Australia.  The main aim of this section is to elaborate the structure of the organization in order to verify the various operational problems associated with the organization. The paper identifies ERP system as the most likely method of acquisition in order to solve problems, which are related with the operation of the organization. The paper provides a flow chart for elaborating the problems associated with it. It is analyzed that there are numerous control problems, which are associated with the sales system of Woolworths.

Organizational structure is defined as a hierarchy that helps in assigning various roles as well as responsibilities to various stakeholders for achieving appropriate goals as well as objectives of the organization. The organizational structure of Woolworths is provided below with the help of a figure.

Operational problems faced by Woolworths due to its organizational structure

It is analyzed that due to the organizational structure, Woolworths faces various types of problems in context to operational management, which decreases organizational performance, quality of service, demand forecasting, supply chain as well as design procedure. The problems are elaborated as follows:

Inefficient service process design: It is opined by Kaye (2014) that current organizational structure of Woolworths affects the service design procedure of the organization. It is identified that in the retail outlet, there are number of inadequacy in measuring various services as well as quality performance, which leads to improper quality of performance that further helps in minimizing the customer satisfaction. The manager of the store are incapable of providing proper services due to old procedures as well as due to their lack of interest which further assists inn creating numerous issues in context to organizational forecasting.

Inappropriate communication: According to Kamal et al. (2015), proper communication is one of the prior needs for making the structure of any organization smooth. It is analyzed that due to inappropriate communication between different stakeholders, Woolworths faces problem in communicating effectively which rises confusion within the organization. On the other hand, it is opined by Edger (2016) that Woolworths does not make proper consultation with the employees of the organization while making proper goals as well as objectives.

Improper management of supply chain management: It is opined by Kaye (2014), that supply chain management of Woolworths faces number of problems due to delivering products, lack of appropriate storage space as well as due to bulk order. Woolworths also faces challenges due to inefficient tracking system within the organization. The organization is unable to provide proper service as well as quality of goods due to ineffective inventory management as well as control within the organization.

 

Most likely system acquisition method

It is analyzed that for Woolworths, ERP system is considered as one of the most likely acquisition system. It is stated by Kilic, Zaim and Delen (2015) that ERP system is helpful in providing a tool that is quite helpful for both the managers as well as users for developing most accurate as well as effective forecast. It is further helpful in solving all the problems that is related with inaccurate forecasting within the organization “Woolworths”. On the other hand, it is argued by Nwankpa (2015) that ERP system can help Woolworths in achieving proper collaboration between various departments by reducing the conflict that generally occurs due to inappropriate communication in the organization.

According to Kilic, Zaim and Delen (2015), ERP system is very much helpful in minimizing repetitive procedure that further assists in reducing the needs of manually entering information. The system is very much advantageous in streamlining different procedures as it is developed easily as well as efficiently in the organizations for collecting various types of data. On the other hand, it is stated by Nwankpa (2015) that ERP helps in giving excellent quality of service to the customers.

The sales process flowchart that is provided below helps in elaborating the procedure of sales system that is utilized by Woolworths. In the below flowchart, different steps are represented graphically with the help of arrows which are linked for indicating the direction of the workflow. The sales process is linked with the organizational success, which include knowledge about the product, sales planning as well as meeting various objectives of the organization. The figure below depicts the procedure of sales that is used within the organization “Woolworths”.

 

Identification of control problems in the system

The control problems or challenges which mainly occur in the system is only due to misplacing various inventory items. A common problem of sales system of Woolworths is its failure to integrate various methods, which are helpful in cross-referencing different orders of sales items (Fernie and Sparks 2014). The items can be misplaced or stolen which can enhance both inventory as well as labor cost that further assists in reducing the profitability of the organization. Therefore, it is very much important to integrate various design solutions for crosschecking orders.

The system related frauds that are needed in the system include:

False Sales: Due to this system, the customers can experience fraud sales. It is because inventory records can be updated with the help of any false source documents, which can be matched, with the help of any physical level inventory (Xu 2014). However, the sales are not recorded within the system.

False Purchase: It is dependent on theft inventory purchase. The customers can utilize the system for purchasing different false items.

This section of report focuses on the adoption as well as development of Reckon accounting software, which is considered as one of the significant computer software that is generally used by different accounting professionals.

 

Adoption as well as development of accounting software packages

 Reckon is mainly utilized under three sub categories, according to the survey, which is generally conduced on the use of accounting software in context to financial management. The groups including accountant group, business group as well as international group, which mainly uses reckon accounting software (Curtis 2015). The various divisions can be visualized in context to revenue estimation, which is provided below:

 It is stated by Zarzycki et al.  (2017) that the business group generally helps in managing different elements of accounting software. It is identified that there is around 6000 users that mainly utilizes reckon within a specific market for grabbing appropriate range of revenue. On the other hand, it is stated by Hansnata (2016), that the group of accountant uses Reckon Elite, Reckon APS as well as it uses Reckon docs. It is identified that recently the accountants of the organization helps in providing 7000 users. The international reckon group helps in managing billback, Virtual Cabinet as well as nQueue within different target markets.

 A survey is mainly conducted within the Australian market, which is based on the popularity of the accounting software, and the survey generally reflects that Reckon is one of the important accounting software providers in the market of Australia that helps in providing proper services to Woolworths (Zarzycki et al. 2017). The survey of 2014 reflects that the organization generally achieves $140 million revenue by targeting different markets of Australia whereas it has achieved $70 million revenue in the market of New Zealand. There are generally 1.3 million users of Reckon in the Australian market. The organization has grabbed 2000 customers. Reckon is considered as one of the significant accounting software.

 

Identification of leaders in the market for providing proper competitive advantage

 It is stated by Rossiter (2016) that both Reckon as well as MYOB are considered as significant leaders of accounting software in the market of New Zealand as well as Australia. Reckon is considered as market leader due to some of the competitive advantages. Reckon is helpful enough to provide number of services that are related with accounting software within Australia as well as New Zealand. In addition to this, the company is known as re-launchers as it is the first organization that re-launches its software (Hansnata 2016). The services of Reckon are not provided in Australia but also in other countries for continuous three years. Moreover, it gained some significant brand value in the Australian market. In addition to this, the accounting software organization “Reckon” is facing number of challenges in achieving proper potential revenue.

 The accounting software “Reckon” is considered significant in the market of Australia. Instead of this, the accounting software faces number of challenges, which include:

Price: The use of Reckon in the market of Australia is very much costly as compared to other accounting software (Curtis 2015). In addition to this, technical sound elements are required for implementing the system successfully.

Time: In the operation of Reckon, time is one of the important factors. It is identified that the accounting software needs time in integrating the software within the organization.

Difficulty: It is identified that the operation of Reckon accounting software is very much complex in context to manual procedure of collecting information as well as data (Rossiter 2016).

Issues related with security: Reckon is unable to provide proper security to the data as well as information of the customers due to failure of the cloud. It leads to missing of consumers data from the organization’s database.

 

References

Curtis, V., 2015. MYOB Software for Dummies-Australia. John Wiley & Sons.

Edger, C., 2016. Effective Multi-unit Leadership: Local Leadership in Multi-site Situations. Routledge.

Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.

Hansnata, M., 2016. The impact of digital innovation on the social structure of professional public accounting practice in Australia.

Howard, P.H., 2016. Concentration and power in the food system: Who controls what we eat? (Vol. 3). Bloomsbury Publishing.

Kamal, O., Brown, D., Sivabalan, P. and Sundin, H., 2015. Accounting information and shifting stakeholder salience: an industry level approach. Qualitative Research in Accounting & Management, 12(2), pp.172-200.

Kaye, D., 2014. Gamechange, A Boardroom Agenda: The Impact of Information Technology on Corporate Strategies and Structures. Butterworth-Heinemann.

Kilic, H.S., Zaim, S. and Delen, D., 2015. Selecting “The Best” ERP system for SMEs using a combination of ANP and PROMETHEE methods. Expert Systems with Applications, 42(5), pp.2343-2352.

Nwankpa, J.K., 2015. ERP system usage and benefit: A model of antecedents and outcomes. Computers in Human Behavior, 45, pp.335-344.

Parker, M., 2015. Vertical capitalism: Skyscrapers and organization. Culture and Organization, 21(3), pp.217-234.

Rossiter, N., 2016. Software, Infrastructure, Labor: A Media Theory of Logistical Nightmares. Routledge.

Van der Stede, W.A., 2015. Management accounting: Where from, where now, where to?. Journal of Management Accounting Research, 27(1), pp.171-176.

Xu, J., 2014. B2B Digital Enterprise and Supply Chain. In Managing Digital Enterprise (pp. 119-129). Atlantis Press.

Zarzycki, H., Czerniak, J.M., Lakomski, D. and Kardasz, P., 2017. Performance Comparison of CRM Systems Dedicated to Reporting Failures to IT Department. In Software Engineering: Challenges and Solutions (pp. 133-146). Springer International Publishing.

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