This research report presents the discussion about the Woolworth’s organisational structure and its possible risks or issues. At the same time, it discusses about the different system acquisition methods such as Custom software, Commercial software, and ERP. This report also provides the system flowchart of Woolworth’s sales procedure and possible control problem of this system. Along with this, it discusses about the development and adoption of accounting software packages and provides the information about market size of company’s software. Furthermore, it discusses market leaders of accounting software’s and discusses the issues of Woolworths accounting software.
Organizational structure of Woolworths:
Woolworths adopts the flat type organization structure. This type organisation structure provides the leadership team to Woolworths and through this company can handle the operational teams easily (Woolworths, 2015). This structure reduces the cost of company as in this structure there is no layers between management and employees. It also enables the company to pay better salary for its employees. The organisational structure of Woolworths is as below:
Operational problems from the flat organisational structure:
According to Schermerhorn (2010), flat type organisation structure is appropriate for the small size organisation and start-ups. If, large size organisation adopts the flat structure then management of company can lose the control because in flat structure there are lesser level of reporting between managers and employees. In the views of Dwyer (2012), Flat organisation structure can create the problem of coordination between different departments because in this type structure different departments work separately. Along with this, flat structure also leads the large size organisations to poor communication between management and employees. In support of this Bains, (2011) stated that flat organisation structure can create unhealthy competition between the employees, which affect the level of employees motivation with the organization. Flat organization structure can also create the problem of role confusion because it allow to employees to build quick decision.
System acquisition methods commercial software, custom software, and ERP:
According to Hall (2015), Commercial software is less costly as compare to custom software packages. Custom software have requirement of qualified and experienced IT experts to design the computer solutions and access the user’s needs. Custom software experts can implement the computer solutions and corporate information within organisation. At the same time, commercial software does not address the business requirements but they perform their job in general way. Commercial softwares also not appropriate when company have requirement of unique information but custom software is appropriate to get the unique e information. At the same time, to get the unique information commercial software vendors are developing their software in the different modules that can help the organisation in achieving the required information through different processing options. Apart from this, ERP software involves the various program modules in it that helps in collecting the required data and to analyse the collect data. Through selecting the ERP system organization or IT experts can choose required modules to fulfil data processing and specific information needs. In this way, ERP system involves the facts of operations related to manufacturing, sales, product planning, and marketing in cloud database.
In the views of Shostak, (2015) Customized softwares are more expensive in comparison of Commercial softwares. Commercial software system also provides the required information on the low cost. Commercial software includes the different modules in it that support organisations in getting the needed unique information and user have not need to change in the software, only needs to select the specific modules. At the same time, customized software does not involve the module options in it or user can not change the customized softwares. The licensed or developer can change or maintain the customized software, whereas commercial software can be managed by the users and provides the required solution.
Therefore, it can be said that Woolworths use the ERP software because it includes the different modules that help company in achieving the required information and solutions.
System flowchart Woolworths sales procedures:
Above system flow chart indicates that Woolworths involves accounting software package in its sales procedure. When the customer purchase the goods from the Woolworths stores then company prepares the bill of the goods and after the payment of bill amount company deliver goods to customer. At the same time, in this procedure warehouse of company supply the goods to Woolworths stores for the sales. On the other hand, in the online sales procedure company collect the order from the customers and get the information from the warehouse about the customer order (Horngren et al, 2012). After this company send confirmation message to customers and after this the customer order is fulfilled by the warehouse with product bill and goods are delivered to customers.
Possible Problems and Fraud in system flowchart of Woolworths:
There are different kinds of problems or Frauds Company can face in the above system sales flowchart. In this type system company can face the problem when after the billing of goods if customer cancels the order then it can increase the entry of transactions in accounting software and increase the cost of company. Along with this, the ERP system of Woolworths has requirement of employees training to maintain the software (Gelinas et al, 2014). If, company does not appoint the Myob expert or train the employees then company can face the issues in collecting the online orders and delivery of goods effectively.
Development and adoption of the accounting software packages:
As per the views of Lim and Perrin (2014), In Australia there are different type of accounting software packages are available for the small, medium, and large size businesses such as Saasu, Myob, and Xero. According to Macpherson (2015), Saasu is a cloud accounting software that was developed by the Marc, Emma Lehmann, and Grant Young in year 2000. It includes the functions of customer relationship management and automatic tax calculations. The software also provides the facility of creating the custom list of customers on basis of industry or users interest areas.
In the views of Curtis, (2014) MYOB software was developed by the Christopher Lee and a team at Teleware in year 1980. The MYOB offers accounting and retail software and web hosting services in Australia and New Zealand. Along with this, MYOB software package comply with the different countries accounting principles. This accounting software also involves the different module options and multi currency, and language options that help the users in getting the required information or solution from the software.
On the other hand, as per the views of Erturk and Fail, (2015) Xero is a cloud based accounting software that was developed by the Rod Drury with the help of personal accountant. The reason behind this is when Rod Dury and his accountant felt that traditional accounting software become outdated. The Xero company was founded in the New Zealand and company started to provide their services in Australia and UK from the year 2008. The Xero software package includes the different functions such as depreciation on fixed assets, double entry bookkeeping system, and inventory management. The involvement of these functions helps the small size businesses and start-ups in maintain the record of business operations to get the required information.
The Woolworths use the MYOB software package to maintain the record of business activities or operations. It is because MYOB software encourages the medium and large size Australian companies to use this accounting system while company deals in multi currency and handle the customers of different regions (Myob, 2017). This accounting software reduces the company and provides the accurate data that help company in effective financial management. Along with this, it also helps the company in collecting or gathering the customer or business data in a cloud database wherefrom company can access the data when company has requirement.
Current market share:
According to 2016 annual report, MYOB accounting software package provides the accounting software to over the 1.2 million SMEs including tax, payroll, accounting, and management solutions. Along with this, it provides the accounting facility with secure bank transactions. At the same time, MYOB provides the practice software to more than 40,000 accounts and enterprise software to over the 7,000 medium and large businesses (Myob, 2017).
Leaders in Australian market for accounting software’s:
According to Tadros, (2016) In Australia Xero is the market leader for the accounting software. The subscriber of Xero in Australian market grows 54% to 312,000 in year 2016, March. But in Australian and New Zealand market, the Myob is the next biggest online accounting software provide. The subscriber of Myob grows 37% to 195,000 till at the end of June, 2016 in Australia and New Zeland. The results of Xero accounting software help the SMEs to build the significant decisions that affect the operations of the company in positive manner.
According to Curtis and Averis (2014), Xero accounting software is cloud based accounting software that helps businesses in establishing the relations with accounting firms that support firm’s products. At the same time, Xero software also provides the access to users and users can record the day to day business transactions in this software. It also provides the intergraded financial services that help organisation in getting the accurate information and data. This accurate data and information support the management to build the comprehensive decisions. In support of this, Ahn, (2014) stated that Xero accounting software can be accessed by the unlimited users in comparison of other accounting information softwares. The Xero system also retrieves the bank transactions information automatically that enable the users to reconcile bank account at the end of month.
Current gaps or challenges encountered by users:
The users or customers can face various gaps and challenges in the use of accounting software packages. According to GrowthPath's review, (2017) users can use the Xero and Myob accounting software system through paying the monthly fee. If, users does not pay monthly fee then user can not access the Xero and Myob software effectively. Along with this, Xero accounting software is secure with the users password but through getting the passwords any individual can access the personal information of company that arise the issues of security. As per the views of Smith (2013), users can access the Xero and Myob accounting software through having the high speed internet connection. If user have poor internet then user cannot work on the Myob and Xero efficiently. Along with this, the maintenance of the Myob system is higher that can increase the cost of company.
On basis of above challenges it can be recommended that Xero and Myob companies should focus on the security of the software. In this way, companies can verify the user through sending the verification code or message on the user’s number when their system is accessed by the user or others. It can help Xero and Myob in development of effective security system of their softwares. At the same time, companies should also provide the facility of annual fee or as per the user’s requirement. On the other hand, Xero and Myob also provide the facility to access the software on poor internet.
From the analysis of above research report, it can be concluded that Woolworths use the flat structure that reduces the cost of company. At the same time, flat structure can create the problems related to lose of control, lack of coordination and communication that may affect the growth of company. Further, it can be concluded that Woolworths use the ERP System acquisition method that help in maintain the record and getting the required information. Along with this, if company does not hire the expert to maintain the Myob system then issues in collecting online orders and delivery of goods may arise. Furthermore, In Australia Xero, Myob, and Saasu accounting software’s are available and Woolworths use the Myob system and in Australia Xero is the market leader and Myob is on second rank. Along with this, during the use of Xero and Myob system user can face the security and slow internet related challenges.
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