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Strategic Information Management: Organizational Charts

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Discuss about the Strategic Information Management for Organizational Charts.




The Current Organizational Structure

In this type of small organization, the structure is certainly not written formalized in manuals, organizational charts, instructions, etc. But there is a certain formal level given by the guidelines established by who or those who exercise the driving, the custom, the mode of operation that for each activity is set as they develop and the distribution of decisions with high centralization. But here, there will also be informal relationships that are emerging as the organization evolves, its relationship with the environment and the internal relationships themselves(Barich, 2012). A look at one of the biggest companies in Australia that uses the accounting system to make good accounting is Westpac Banking Group. Some issues that are born informally if considered appropriate will be formalized through directives, almost always unwritten, of the owner. In turn, the workflow, information, In the first case, considering only the variables associated to the achievement of the goals and subjected to a rigid control (Mechanical Model) and designed under "principles" such as Division of Labor, Control Unit, Scope of control, Centralization of decisions, Standardization Of roles and practices, etc(Clarke, 2012). 


Organizational Structure Problems

Structure comes from "Struere" which means to build. It refers to construction as support or foundation of systems of all kinds in which I know part, elements, ideas or symbols interrelate. An organizational structure, considered as a whole, comprises both a formal structure and a real structure.

In organizations, participants' actions and interactions gain some stability by establishing roles, norms and values. These phenomena underlie the idea of ??formalization and structure as a means of achieving prediction and rationality in organizational behavior(Galliers, Leidner, Leidner, &Galliers, 2014).
Structures can vary considerably depending on the decisions that management takes with respect to division of activities, tasks and departments and delegation of authority. Activities and tasks may be more or less specialized, relatively centralized or decentralized authority, jobs grouped by departments based on different circumstances and sizes.

Every formal structure involves a structure of objectives and decisions, a structure of activities, a distribution of resources and a network of communications and is the result of the delegation of operations -departmentalization- and decision-decentralization(Khosrow-Pour, 2006).

According to Simon: "The formal structure establishes sets of prescriptions and expectations regarding who are the members of the organization who are responsible for certain actions and decisions; Establishes a structure of sub-objectives or goals that will serve as the criterion of choice in the different areas or parts of the organization and establish discreet research responsibilities in the particular units of the organization to scrutinize specific parts of the environment as well as to inform about Of events that require attention in the direction of the appropriate decision points(Peters, 2004).


Most Likely System Acquisition Method— Commercial Software, Custom Software, or ERP

The accounting work in an organization is, undoubtedly, fundamental for the order and the obtaining of information with a view to making the right decisions. Gone are the years in which it was necessary to manually fill hundreds of tables with income and expense data generated in all areas of the company; Today, there are many applications and programs that allow this task to be performed in an easier and safer way. Let us know the main characteristics of the accounting software that are most used in Australia.
One of the most popular programs in Australia, ERP  allows to process, integrate and keep updated all the accounting and fiscal information of the organization in a safe way. It is developed according to the specifications necessary for the application of electronic accounting in an easy way and complies with all the provisions in force in tax matters. It is especially useful for issuing reports, reports, summaries and graphs that facilitate the financial analysis of the company(Qu, & Yang, 2012). It is compatible with spreadsheets, controls the income, expenses and budget of different entities in different currencies for an efficient management of resources, and issues, in a timely manner, the necessary tax returns such as VAT, ISR,etc..

This online administrative application has also become very popular in the country. It is one of the most suitable types of accounting software for small businesses and allows access to it from any place and device, since the information is in the cloud. It guarantees the security of the data since they are hosted on specialized Amazon servers and use advanced security systems. Sends payment reminders for invoices issued, sends monthly reports via email and allows you to export the information to Excel and other accounting programs. The software, being in the cloud, allows to maintain a constant update, being available in its most recent version every time it is entered into the system. It has a monthly payment plan according to the required features and offers a free trial for the first month.

System Sales Flow Chart

The flow chart for sales is a complex and intricate process invoving receiving and paying of clients and suppliers. The payments is received by the the suppliers after ninety days  within the delivery period by the accounts office.

Company orders the products, the sales are delivered, the third stage invoincing is done and the last stage involves payment of suppliers.

Identify any Control Problems in the System and what sorts of Fraud are Possible in this System?

However, the mandatory questions are: what internal controls need to be improved or implemented? What are the controls that prevent fraud? The best answer is not a list of controls to implement, because all activities related to the Sarbanes-Oxley Act regulatory framework and equivalent regulations have taught us that a very complex system of operational level controls may exist, but without a Monitoring and proper management tone, those controls can be evaded. It is enough to know them in depth to find the weak point(Qu, & Yang, 2012).

However, recent surveys show that 8 out of 10 companies have experienced fraud in the last year, and 61% of frauds were detected through internal controls, but only 12% of respondents, despite having been fraudulent, took preventive measures. What are these measures ?, improve our internal controls

Derived from the above, it is necessary to step back and see the organization as a whole, as well as finding ways to manage fraud risk with a vision that goes from the general to the particular. Experience has shown the effectiveness of measures aimed at fraud prevention and deterrence, which focus on a cultural change of employees in the organization.
But, we are still talking about internal control measures, how is internal control defined? Generally accepted auditing standards and procedures define the internal control structure of an entity such as: ... it is the policies and procedures established to provide reasonable assurance of achieving the entity's specific objectives(Robson, 2009).
In the market there is a wide variety of packages focused on accounting management. Brands strive to deliver multiple advantages and benefits to entrepreneurs. However, some have been better positioned and precisely defining their target audiences.


Development and Adoption of the Accounting Software Packages

Its software invites you to integrate all areas of the company, to achieve a more efficient and total management, without leaving aside, the growth of the business.
Develop and adapt to the changing business models of the modern digital world with SAP financial and accounting management software. Gather financial and analytical processes, radically automated and in real time, to obtain strategic business information in the future throughout your business environment. SAP's innovative solutions help financial teams deliver valuable strategic business information and create a competitive edge for your company.

The Current Market Size

The banking and financial industry is widely growing in Australia and the current market size is very big. Westpac Banking Group is a leading company in use of accounting software for improvement of its accounting systems. Other banks are greatly following the trend of upgrading the systems of accounting. Quality means that the system meets the requirements of reliability and efficiency in the best possible way, and that it does not require maintenance or modifications once it is completed. Normally a good quality system has a high life cycle. On the other hand, if the life cycle of a system is short, it can be assumed that the quality of this system is poor.

User specifications are all the requirements that the user defines before starting the development of the system, that is, the functions that he needs to perform. The system must meet all the specifications and expectations that the user has for the process to be considered successful.

Identify the leaders in the market and what gives them the competitive advantage

It is an economic unit of production but from the point of view of the economy of the company is an entity composed of human, technical and financial elements and factors that are combined to achieve objectives and located in one or several units or production center.

They are hierarchical organizations with legal relationships, and whose dimension depends on endogenous (capital) and exogenous factors (economies of scale).
Resources are the people who carry out the development process, the equipment and the money necessary for the development of the system(Tarantino, 2006). An adequate and competitive development should consume the minimum amount of resources without sacrificing quality nor the specifications of the users.

Time refers to the duration of the entire development process, from its inception until it is in operation. The development of an Information System must meet the expectations of time that jointly set the system analyst and the user.

This research will analyze the different competitive strategies that small companies can adopt to face competition and remain in the market, particularly those that are focused on the services sector.


Identify the current gaps or challenges encountered by users or customers of accounting software/packages and make relevant suggestions or recommendations.

If user specifications increase, development time can increase in the same way that more resources may be needed; this can lead to a decrease in the final quality of the software. If the user requests that additional functions be added to those defined at startup, it is assumed that it will be necessary to increase the allocated resources and the estimated time if it is desired to comply with the planned(Tarantino, 2006). In case there is no reconsideration of these variables, the quality of the system may be adversely affected.

If the termination time of the software requires shortening it is necessary to increase the resources (hire more personnel) or to cut user specifications, because due to the time limitation it is not possible to comply with everything planned and this can decrease the final quality of the software. system.

If it is desired to increase the quality of the system it may be necessary to increase the amount of resources allocated to the project and / or increase the time allocated to the project. If it is desired to have an end product that has an acceptable quality for a good operation, it should be analyzed whether the resources allocated to the project and whether its estimated development time are adequate to meet user specifications through a high quality system(Tarantino, 2006).



Barich, T. (2012).Quickbooks 2012 quicksteps. New York: McGraw-Hill.

Clarke, S. (2012). Information Systems Strategic Management. Hoboken: Taylor and Francis.

Galliers, R., Leidner, D., Leidner, D., &Galliers, R. (2014).Strategic information management. London: Routledge, Taylor and Francis.

Khosrow-Pour, M. (2006).Cases on strategic information systems. Hershey, PA: Idea Group Publishing.

Pearlson, K., & Saunders, C. (2013).Strategic management of information systems. Hoboken, NJ: Wiley.

Pearlson, K., Saunders, C., &Galletta, D. Managing and using information systems.

Peters, L. (2004). Software project management. Kent, WA: Software Consultants International Ltd.

Qu, X., & Yang, Y. (2012).Information and Business Intelligence. Berlin, Heidelberg: Springer Berlin Heidelberg.

Robson, W. (2009).Strategic management and information systems.Financial Times Management.

Singh, V., & Singh, M. (2010).Computer course (illustrated). New Delhi, India: Computech Publications Ltd.

Tarantino, A. (2006). Manager's guide to compliance. Hoboken, N.J.: Wiley.


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