Discuss about the Strategic Supply Chain Partnership Environmental.
Information system helping in gaining all types of organizational goals with excellent strategies is known as strategic information system (Haux et al. 2013). The most significant advantage of this strategic information system is that it provides competitive advantage to that typical organization. These information systems often deliver any product or service that does not incur much cost and is absolutely differentiated for focusing on the segment of market that is important (Galliers and Leidner 2014). It is considered as one of the most important characteristic in the field of IT or information technology. Moreover, this type of information system is responsible for helping all the organizations in storing, categorizing, transferring and processing of any type of information or data. The operational efficiency of the organization is solely developed with this strategic information system (Willcocks 2013). Accounting software can be defined a specific type of application software, which helps in recording and processing the financial transactions in the functional modules like trial balance or general ledger. The functionality of this software is just like an accounting information system (Dandago and Rufai 2014). Accounting software can be accessed from anywhere with any device that has Internet connectivity and does not incur much cost.
This literature review will be providing a short as well as precise discussion on the most popular ad significant banking sectors in Australia, Commonwealth Bank of Australia. This literature review will outline the several organizational problems and the organizational structure of CBA. The system efficiency method, system flowchart and the various control problems of the organization will be given here. The relevant accounting software package for CBA will be highlighted here.
Commonwealth Bank of Australia is the most popular and important multinational banking sectors having businesses in the various countries across the world including Asia, Europe and entire Australia (Commbank.com.au. 2018). This particular bank is responsible for providing several financial services that include funds management, investment, loans, investment, insurance and many more. In the year of 2015, CBA was listed as the largest bank in Australia in the Australian Securities Exchange with other brands like Bankwest, ASB Bank and Commonwealth Securities. Commonwealth Bank of Australia is one of the four banks with Westpac, ANZ and NAB (Commbank.com.au. 2018). This organization comprises of an extraordinary organizational structure and various organizational strategies that has made the organization extremely popular and well accepted by all.
The organizational structure of the Commonwealth Bank of Australia is explicitly popular and important for the organization. This organizational structure comprises of all the managing bodies and important employees of the bank (Palvia and Palvia 2013). The board of directors or the board of commissioners of this organization includes the owners, directors, stockholders and many more. The three levels of management, i.e. top management, middle management and lower management are properly given here.
Although, Commonwealth Bank of Australia is one of the best banks in Australia, there are some of the major operational problems within the organization (Ogiela 2015). These problems are therefore the most significant as well as dangerous as they are effecting the market shares of the organization. The shares of this organization are going down explicitly and thus the popularity of the company is falling (Laudon and Laudon 2016). Over the last five years, due to the degradation in shares, various operational problems have occurred. This is mainly due to the wrong strategies that the organization has undertaken. Commonwealth Bank of Australia has taken various approaches for solving their operation problems. The main reason that their approaches or strategies did not work was constant alterations in the market trends (Arvidsson, Holmström and Lyytinen 2014). CBA was always involved in the competition of going on top. This type of competition often can be harmful to the organization and this was exactly what happened with CBA. This bank was failing to satisfy their clients and was not being able to meet the expectations (Konsynski and Karimi 2013). The situation even has gone down to such limit that they were unable to give loans to their clients. Another important problem that occurred within CBA was that they were not making enough money. A multinational bank, CBA found it really hard to make money and thus the competition was increased from all types of financial technology companies (Hill, Jones and Schilling 2014). The popularity of all types of financial technology organizations worldwide has somewhat affected the banking sectors and CBA is one of the major victims. This is mainly because CBA is a traditional bank and they are being able to cope up or adjust with the modern changes or alterations. The operations of the bank are much traditional in comparison to other financial technology organizations (Bryson 2017). Moreover, the regulatory requirements have continued to increase and the banks require spending maximum on the discretionary budget and thus escalating the requirements.
System Acquisition Method
The above figure has properly demonstrated about the downfall of the share price of the Commonwealth Bank of Australia (Alexander 2013). In the above figure, during the period of June and July 2013, the share price has gone up to 70%, however, recently, it has gone down to below 20%.
There are some of the most significant strategies of the Commonwealth Bank of Australia. There are four major strategies of CBA. They are as follows:
- i) Customer: This is the first and the foremost strategy of the Commonwealth Bank of Australia. They always focus on their customers. According to them, the customers are the most important part of their organization. The culture of this particular bank is completely vibrant and customer focused (Amrollahi, Ghapanchi and Talaei-Khoei 2013). The diversification and safety of the money of their customers are properly maintained by the bank. The major reason for this type of ideology is that they think that this would help to maintain their popularity.
- ii) Technology: The second important strategy of the Commonwealth Bank of Australia is their technology. They try to maintain their technology. Although, they are facing problems in coping up with the financial technology companies, they are still trying to increase their technological skills (Yoo 2013). The real time capabilities are maintained with several developed applications.
Productivity: The third strategy of the bank is the productivity. The productivity of this particular bank is much more than the rest of the banks in Australia. They are continuously simplifying their method so that they can achieve and obtain for better results or outcomes for their customers (Gholami et al. 2013). Productivity is something that they always focus on and according to the Commonwealth Bank of Australia, it is extremely critical for their long term success. The process by process look is undertaken by them and thus the errors are reduced and the unit costs are reduced.
Strengths: The final strategy of the Commonwealth Bank of Australia is their strength. The financial crisis of the bank is overcome with the extraordinary strategies and thus they try to focus on their strengths for making the organization strong and popular (Youn et al. 2013). An extremely popular, strong as well as flexible balance sheet is being maintained and is very important for ensuring that they can continue in supporting their clients and thus capitalize on opportunities.
Enterprise Resource Planning or ERP is undertaken by the Commonwealth Bank of Australia for the system acquisition (Al-Hiyari, AL-Mashre and Mat 2013). ERP can be defined as the procedure through which any specific organization controls as well as integrates various areas like purchasing, planning, finance, marketing and many others. The organizational goals as well as objectives are well achieved with this particular technique. CBA utilizes SAP model for their business (Dandago and Rufai 2014). However, the involvement of SAP is not easy and it needs proper professional training. Flexibility and scalability are the two most significant advantages of SAP. This particular ERP model has provided the Commonwealth Bank of Australia with excess effectiveness and popularity (Simkin, Norman and Rose 2014). Moreover, SAP also help in gaining utmost proficiency within the software. Cost effectiveness is another important benefit of the model. The specific SAP model of the organization is absolutely updated and thus it helps to solve the problems related to any type of operation. It is even utilized by the bank for making the bank shares absolutely steady and working (Amrollahi, Ghapanchi and Talaei-Khoei 2013). If the interest rates of the bank would be reduced, then the customers would again take loans from CBA.
Various problems are faced by the Commonwealth Bank of Australia. Several modifications have occurred in the bank shares and this growth of the organization completely depends on various stakeholders and marketing team (Bryson 2017). The brand name of this particular bank is solely affected as well as influenced in the sector. The control problems of this organization even are responsible for reducing the growth in the entire market.
There are various types of frauds possible in the system of Commonwealth Bank of Australia. The first and the foremost fraud of this organization mainly include the hoax emails or the hoax SMS messages (Arvidsson, Holmström and Lyytinen 2014). The other fraud of the bank includes phishing and spoofing. Smishing is the most popular form of phishing and SMS.
Accounting software packages are utilized for recording and processing the accounting transactions within the functional modules like the payroll, general ledger, trial balance and many more (Simkin, Norman and Rose 2014). This type of accounting software packages are purchased from any specific third party or is developed by any organization. There is a great variety in cost and complexity.
There are various types of accounting software packages available in the market. The most popular examples include Myob and Xero. The accounting software package that CBA has utilized in the accounting software package is Xero (Xero Accounting Software. 2018). It is a cloud based accounting software for all types of businesses. However, it is popular for the smaller and the medium sized organizations. Approximately all products of this software are on the basis of the SaaS model or software as a service.
There are various advantages that the Commonwealth Bank of Australia enjoy from the accounting software package of Xero. They are as follows:
Supporting Maximum Clients in Lesser Time: It helps to support maximum time in extremely less time and Xero is utilized by the Commonwealth Bank of Australia (Al-Hiyari, AL-Mashre and Mat 2013).
Reporting of Real Time Finances: This is another important advantage of Xero. The real time finances are reported with this.
Easy Collaboration: The owners of the business and all the clients could be easy collaborated with this particular accounting software.
High Improvement: Xero software is always improving and thus allow easy updates of the software (Yoo 2013).
The Commonwealth Bank of Australia is not only the market leader in banking sector. There are few more, who is leading the market of Australian banks (Hill, Jones and Schilling 2014). These banks are the core competitors of the CBA. The most popular and significant competitors of the Commonwealth Bank of Australia are given below:
- i) National Australian Bank or NAB
- ii) Australia and New Zealand Banking Group or ANZ Bank
Auckland Savings Bank or ASB
- iv) Bank West
- v) Westpac New Zealand
- vi) Kiwi Bank
St. George Bank, Australia (Konsynski and Karimi 2013).
The most significant competitors of the Commonwealth Bank of Australia are being shown in the above figure (Willcocks 2013). According to this, Commonwealth Bank of Australia is still getting the highest shares. Around 20% is taken by them. 16% is taken by National Australian Bank and 13% is taken by the Australia and New Zealand Banking Group. The remaining 51% of shares are taken by all the remaining banks available. The above figure has clearly shown that Commonwealth Bank of Australia is within a better position than the rest and thus is obtaining competitive advantages (Laudon and Laudon 2016). Hence, it is depicted that Commonwealth Bank of Australia is leading the market of banking and banking services.
Commonwealth Bank of Australia has faced various operational and organizational problems within their system. The most significant issue or problem in the Commonwealth Bank of Australia is that the interest rates of this bank are much higher than the rest of the banks in Australia. Therefore, it is highly recommended to the bank to reduce their interest rates as soon as possible so that people are able to take up the loan once again from this bank. The second significant problem in the Commonwealth Bank of Australia is that people are not willing to invest in the bank as they are worried about their security. This is solely because of the downfall in shares. It is highly recommended that they should advertise about their bank more often. Another important problem is their CRM. The customer relationship management should be kept on first priority for this bank.
Therefore, conclusion can be drawn that the SIS is utilized by various companies for successfully gaining their organizational goals and objectives. The major advantage of the SIS or strategic information system is that it gives competitive advantage to all the organizations. Accounting software is any particular kind of application software that is utilized for the purposes of recording as well as processing of the finance related transactions. The major function of accounting software is similar to an accounting information system. The above literature review has outlined a brief discussion on the strategic information system of the one of the most popular banks in Australia, known as the CBA or Commonwealth Bank of Australia. This literature review has also provided the several organizational problems and the organizational structure of CBA. The system efficiency method, system flowchart and the various control problems of the organization is provided here. The relevant accounting software package for CBA is also provided here. Moreover, the market leaders and the competitors of the Commonwealth Bank of Australia are provided in this literature review. The final part of the literature review consists of relevant suggestions and recommendations for the bank.
Alexander, K. ed., 2013. Facilities management: theory and practice. Routledge.
Al-Hiyari, A., AL-Mashre, M.H.H. and Mat, N.K.N., 2013. Factors that affect accounting information system implementation and accounting information quality: A survey in University Utara Malaysia. American Journal of Economics, 3(1), pp.27-31.
Amrollahi, A., Ghapanchi, A.H. and Talaei-Khoei, A., 2013. A systematic literature review on strategic information systems planning: Insights from the past decade. Verified OK.
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.
Bryson, J., 2017. Effective library and information centre management. Routledge.
Commbank.com.au. 2018. Personal banking including accounts, credit cards and home loans - CommBank. [online] Available at: https://www.commbank.com.au/ [Accessed 13 Apr. 2018].
Dandago, K.I. and Rufai, A.S., 2014. Information technology and accounting information system in the Nigerian banking industry. Asian Economic and Financial Review, 4(5), pp.655-670.
Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
Gholami, R., Sulaiman, A.B., Ramayah, T. and Molla, A., 2013. Senior managers’ perception on green information systems (IS) adoption and environmental performance: Results from a field survey. Information & Management, 50(7), pp.431-438.
Haux, R., Winter, A., Ammenwerth, E. and Brigl, B., 2013. Strategic information management in hospitals: an introduction to hospital information systems. Springer Science & Business Media.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Konsynski, B.R. and Karimi, J., 2013. The Information Technology and Management Infrastructure Strategy Globalization and information management strategies. In Strategic Information Management (pp. 103-126). Routledge.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Ogiela, L., 2015. Advanced techniques for knowledge management and access to strategic information. International Journal of Information Management, 35(2), pp.154-159.
Palvia, P.C. and Palvia, S.C., 2013. Understanding the global information technology environment: representative world issues. Strategic Information Management, p.151.
Simkin, M.G., Norman, C.S. and Rose, J.M., 2014. Core concepts of accounting information systems. John Wiley & Sons.
Willcocks, L., 2013. Information management: the evaluation of information systems investments. Springer.
Xero Accounting Software. 2018. Online Accounting Software – Free Trial, Free Support | Xero. [online] Available at: https://www.xero.com/ [Accessed 13 Apr. 2018].
Yoo, Y., 2013. The tables have turned: How can the information systems field contribute to technology and innovation management research?. Journal of the Association for Information Systems, 14(5), p.227.
Youn, S., Yang, M.G.M., Hong, P. and Park, K., 2013. Strategic supply chain partnership, environmental supply chain management practices, and performance outcomes: an empirical study of Korean firms. Journal of Cleaner Production, 56, pp.121-130.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2019). Strategic Supply Chain Partnership Essay: Environmental. Retrieved from https://myassignmenthelp.com/free-samples/strategic-supply-chain-partnership-environmental.
"Strategic Supply Chain Partnership Essay: Environmental." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/strategic-supply-chain-partnership-environmental.
My Assignment Help (2019) Strategic Supply Chain Partnership Essay: Environmental [Online]. Available from: https://myassignmenthelp.com/free-samples/strategic-supply-chain-partnership-environmental
[Accessed 01 December 2023].
My Assignment Help. 'Strategic Supply Chain Partnership Essay: Environmental' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/strategic-supply-chain-partnership-environmental> accessed 01 December 2023.
My Assignment Help. Strategic Supply Chain Partnership Essay: Environmental [Internet]. My Assignment Help. 2019 [cited 01 December 2023]. Available from: https://myassignmenthelp.com/free-samples/strategic-supply-chain-partnership-environmental.