The report research deals with the analysis of the organizational structure, operational issues associated with it. The report also reflects on the system acquisition method of the organization. The development and adoption of the accounting software packages are discussed in the assignment (Sanusi, 2015). The market for the Azure Group is been discussed in the report. Azure Group is a chartered accounting firm that has been successful in adapting to the demands of the market along with the introduction of new statistics of business in order to meet the lifecycle of business requirements of its clients. Azure Group has been having the experience of rapid growth in a very short duration of time. The company has been dealing with the innovative and entrepreneurial business reflecting the company's passion for the success of the company (Akhtar & Mittail, 2014).
Azure Group is a company that has been offering both commercial and technical accounting services. The company identified the growing requirement for the commercial advice from the highly experienced CFOs. This company was one among the original organizations that initiated the Virtual CFO service that offer to the SME market. The company went forward for the establishment of a professional network for the CFOs through CFO Australia.
The Azure Group QLD further went forward to expand the operations into QLD's Gold Coast to support the increasing needs of the clients on the East Coast. The company also has operations in Shanghai, china which has made business in the cross border for its clients. The Azure Group Wealth was also introduced to offer Wealth solutions for the high net worth of the company and the clients in the business (Amrollahi, Ghapanchi & Najaftorkaman, 2014).
Organizational structure followed by Azure Group is flat organizational structure. A flat organizational structure is a structure in which the most middle management levels and the functions of the middle management levels have been eliminated. This brings the top management in direct contact with the sales people, who are in the frontline, employees on the shop floor, and customers. In spite of the breadth, the benefit of using the flat organizational structure by Azure Group are many including the faster response time to the preference of the customer and changing conditions (Bernaoui, Issolah & Hassoun, 2015). The managed domains that are provided by Azure Group support only a flat Organizational structure. All the domains in the accounting software package reside in a single flat organizational structure of Azure. The hierarchical organizational structure is not supported by the domain of Azure Group. The domains service of accounting software package by Azure Group support the Group Policy in the form of GPO which is built in for the computer containers and the users (Boonstra, 2013). The GP cannot be targeted by the organizational structure; the users cannot create custom GPOs or perform WMI filtering. The organizational structure of Azure Group helps in creating logical structure. One can use it for assigning policies of the group and the management of the resources.
The flat organizational structure of Azure Group provides many advantages. However, the flat structure of the organization also leads to certain problems and issues in the operations of the company. There always is a probability for the management to lose control over the operations easily. This structure is very much suitable for the business operations in start-ups. When a company of massive scale has flat organizational structure, like Azure group, the whole system of operation can be threatened when the ratio of the employees to managers become out of proportion (Chatterjee, Kar & Kar, 2013). The management will not be able to have easy control when there are fewer people to control the unrequited behaviour and fewer individuals for the backup or support on the decisions made by the management of Azure Group. The working relationship of the individuals working in Azure Group could struggle. The managers may have to deal with managing too many people every day. The manager may also find it difficult to connect on a personal level with the employees, which is important in maintaining trust and as the foundation of employees’ accountability and responsibility for the work and the company as a whole. This could pose a major threat on the morale and respect issue of the organization on all authority levels. Having a flat organizational structure can give rise to a power struggle in the Azure Group. Under this flat organizational structure, most of the time the employees lack a specific higher authority to report (Chatterjee, Kar & Kar, 2013). This is mostly prominent n the case when the CEO is not around. This leads to power struggles and confusion among the employees in the management. The flat organizational structure of Azure Group can make employee retention very challenging. Well performing employees who are in constant search for an improvement in the profile of the company, other than the raise in their salary, would find it difficult to find satisfaction in the job under a flat organizational structure. These employees may end up searching job somewhere else where they believe that their efforts would be appreciated with a raise and promotion (Hernández, Santos & Gallardo, 2015). The flat organizational structure may also hinder the growth of the company. Change is crucial and has a lot of apprehensions. The management of Azure Group might think and decide against innovative opportunities with a renewed effort in the direction to maintain the organizational structure that may result in limiting the growth of the company in long term. In the flat organizational structure, unhealthy competition among the employees can lead to less motivation and add up to the confusion (Jin, et al., 2014).
The most likely system acquisition method for Azure Group would be custom developed software. This system acquisition method is suitable for the company as the processing requirements of Azure Group are specific to the organization and the company has its own application software developed specifically. As the Azure Group has programmers that it has employed along with the analysts and have set up an internal information technology group of its own, the custom developed software is suitable for the company. Azure Group could use the services of a software house or computer bureau for its assistance, which is insignificant for the company as it is a large scale. Azure Group already is having a full time developed team (Jin, et al., 2014). The company has to acquire the resultant software which is the custom developed software as it exactly suits to the requirement of the company, just as a tailor made suit is appropriate for the purchaser. Azure Group can derive the benefits of the using a custom developed system acquisition software. This can include the resultant program that would exactly meet the processing requirements of the company. Azure Group is a large scale company having a flat organizational structure. Costs are not a matter for the company and thus, custom software for the system acquisition method is most appropriate for Azure Group (Jin, et al., 2014).
The flowchart of sales procedure ( as shown in Appendix I) is an integral part of selling the product of Azure Group. The sale is the initiation of an engagement between the vendor and the customer or the extension of the engagement in the completion of the prospective stage. The provider of the goods or services through the salesperson completes sales in the response to an appropriation or to a request or an acquisition (Osman, El Beltagi & Hardaker, 2015). Then the passing of title of the product, the application along with the due settlement of the price, the obligation arising due to the requirement of the seller to pass the ownership is followed.
The issues or problems in this system of the company would include threats regarding the security of the data of the company. The threat of hacking and other vulnerability regarding the theft of eth company’s confidential data and other information regarding the employees can be an issue to the system utilised by the company (Piepenburg, Archambault & Joergensen, 2015).
The development and adoption of accounting system package are necessary as a complete realization of the advantages of the computerized accounting systems by Azure Group along with the technical support is critical. The Internet is the backbone across all the telecommunications installations due to which adoption of accounting software packages is necessary.
The human resource also has to undertake numerous functions in every department of computer centres and accounting, training, and technical skills are considered very important that should be available for the staff. The lack of accounting software package would affect the field of designing, usage, development of information technology and accounting systems (Ren, et al., 2015).
Human resource is the primary element that illustrates effectiveness and efficiency of operating the computerized accounting software package. It is important that the accounting software package has implications on the workforce at the human resource level. Azure Group has diverse benefits in using technology-based innovation like computerized accounting system adoption. Adopting and developing computerized accounting software package enhances the efficiency of the company through faster and cheaper product and service as well as operations development (Salleh, et al., 2015).
The current market size for the accounting software includes Europe, China, USA, and Japan including other regions. With reference to the companies that have adopted and developed accounting software package, it is observed that the distribution has changed over the last 10 years. The market size also keeps changing from country to country.
The current market size for the accounting software packages is about 65% of the market share. However, market share is a subjective measure. Every company can depict the specific market as varying from the other companies (Sanusi, 2015). The tax and audit service have been a dependable revenue source for the accounting software package over past years, as the demand for these services does not depend on the economic conditions. Accounting software package has also expanded the advisory services by incorporation of new technology such as cloud and data analytics services.
The leaders in the accounting software package industry in the Australian market are Intuit, Xero, and MYOB. The competition for the supremacy in the accounting software market is prominent in the huge market. Every business requires keeping a hold on its track regarding its accounts which these companies make very easily in a simple way. These companies know the ways to remove the requirement for the book keepers and allow the business to facilitate a decision regarding cash flow and invoicing management on the operations. These companies are jostling for the share in the market. Adoption of accounting software in the Australian market is occurring at a very fast pace (Wali, Sadq & Rasheed, 2016).
Many businesses in Australia are adopting accounting software so as to minimize the tedious paperwork that is often accompanied by errors of commission and omission, costly and time wasting. These companies face challenges due to their department not being autonomous units. In order to have a competitive edge in the market, these companies have their accounting departments entrusted with the collection, processing, and maintenance of online accounting. These companies also put in efforts regarding reconciling the accounting reports from other departments and deal with the incompatible formats and duplications. The approach of Information-centric security is been inculcated in order to control the security and data in the cloud in order to gain competitive advantage (Sanusi, 2015).
The current gaps or challenges that are faced by the users or customers using accounting software packages are the lack of security, weak reporting service, lack of efficiency, outdated and lack of accuracy, lack of features, high cost, Difficult to customize and not user-friendly. The software users get worried regarding the security of the data as the foreign parties access them. Some solutions regarding accounting software are powerless in assisting the users who desire of getting the business data out (Sanusi, 2015). Users get disappointed with the fact that it is easy to put in data and impossible to get the data out. Some of the accounting software is not user-friendly (Ren, et al., 2015). They also restrict the users from using their keyboard completely.
The companies should focus on the updating of the accounting software. The details regarding the software should be accurate, the system needs to be fast and errors must be checked. New features must be added for making the software more user-friendly (Salleh, et al., 2015).
The report reflects the prominence of accounting software packages in business organizations in the competitive environment. Accounting software has gone through a prominent history of development since the invention of information technology. The large accounting software companies of Australia compete in the market characterized by continuously developing small and medium sized business. Strategies including information-centric security, authentication measures, and predicate cryptography should be acquired to deal with the threats security that is associated with the accounting software.
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