Hi5019 Strategic Information System-The Computer Assessment Answers

Answer:

With the introduction of highly advanced technologies, the complexity of business world is increasing by every passing day. To deal with these complexities a business organization needs to prepare such a information system that provides them the required information on their finger tips (Amri 2003). With the advent of accounting information system it has become possible for the business firms to operate the information in a manner to obtain the best out of it. Accounting information systems are such software’s that helps the firm in recording, classifying, analyzing the financial data of the organization (Alice 2010). Most of the organization needs such software’s to record the payroll, ledger, accounts receivables, accounts payable etc. These software’s not only provide financial information to the firm but also helps in decision making, cost cutting and improving effectiveness of the employees of the organization.       

Most of the organization nowadays is failing not because of the competition but because of the lack of advanced accounting information systems. The business organizations from every other corner of the world are now opting accounting information systems into their workings. Accounting information systems are not only meant for large businesses but it is also been prepared for small and medium size organizations by its developers (Arey 2013). Now we will talk about Eastwood Refrigerator’s private limited, an Australian firm that is into business since last 45 years and holds a significant market of refrigerator in Australia.

The firm is experiencing unexpected losses in their business, so in order to overcome these losses; they have decided to install an accounting information system in to the computer systems of the organization. Earlier the Accounting information system developers used to make software’s that were not customer friendly and if they are installed into the systems then the client cannot make changes to the software. The AIS developing companies understand this situation and made further changes and now they are developing newer software’s that are customer friendly and the client can alter or amend any feature of the new accounting information systems (Garg 2016). Below are the top three popular accounting information systems that are currently being used in Australia (barbasor 2012).

• MYOB
• SAP
• Reckon-One 

MYOB

The full form of MYOB is Mind Your own Business. It is one of the most used and preferred accounting information systems that have been designed for small and large scale firms. The developer of MYOB is Christopher Lee (Dahuja 2007). The official website of MYOB claims to have active number 160000+ users in Australia alone.

SAP

SAP is considered to be the best for Mid-size and Large scale firms. It also has a large number of active users. SAP is growing its market day by day and soon it may over take the market of MYOB as SAP is really providing some best of the features a client wants. H.R, Finance, Payroll, Digital supply chain, Customer Engagement and commerce are the services which they provide. SAP uses cloud based storage data system that gives the client a full proof security. The information is available on a click. SAP is best suited for mid and large scale firms (Q S R, Limited Service - Unlimited Possibilities 2011).

Reckon-One       

Reckon-One is again, accounting information system that uses cloud based storage system. It is designed to help small and medium scale industries. It is widely used still not much popular as MYOB & SAP. Many individuals like accountants and auditors use this accounting information system for their work (bhonsle 2013). It also has a good number of users in Australia and New Zealand.

Coming to East wood private limited, they are using the SAP AHANA accounting information software that not only provides them with theoretical information but also help them in practical processes of decision making and others (Bactor 2012). Following are few plus points that have made Eastwood to choose SAP:

• Customer Friendly: SAP is considered to be the most customer friendly accounting information system. It is easy to use and let the client make any changes even after the installing of the system.
• Economical: A big reason to choose SAP is that it is economical; every organization wants to spend less and get more.
• Confidentiality: SAP provides confidentiality over the information of the organization only people with authentication code can access to such information. SAP uses cloud based data storage system to secure the information.
• Custom-Made: SAP provides its client a feature of altering and amending the software. If at any point the client feels of alter the features of the software he can do even if the system is already installed and working.

 Organizational Structure

 If the Eastwood PVT LTD wants to choose between a custom made software, commercial software or ERP then they must go with the custom made software as it is the Eastwood Company itself that knows about its requirements. If they choose custom made software then they can with the help of a third party develop an accounting information system that could be altered and amended according to the need of the hour.

Adoption

The adoption of accounting information system is not new. The need for accounting information system raised a long way back. However it is now when every company wants accounting information software to be installed into their organization. No company wants to keep its record in the piece of papers. Even the smallest of the organizations are adopting such software’s not to just match their steps with modern time but to give their employees a better and a tireless working environment. It is more than 60 years to the invention of these software’s, however earlier they were underground as they were only used in fewer firms and that too which were made by themselves but now they into the limelight and every firm is waiting in a queue to get it installed (brain 2014). It would be not wrong to say that the SAP is ruling the Australian market with its vast features including the one that let its client to alter and to amend the features.

Current Market Size

The Australian accounting information market is currently being influenced by the three top popular brands namely; MYOB, SAP & Reckon-One. SAP as we have chose for Eastwood Organization has a vast market share after MYOB (Adele 2011). It enjoys a large number of customer’s in and around Australia. SAP has a big squad of different software’s that has a large number of features. The market share of SAP is around 19% and it has a total cost of ownership of around $2.9 AUD million. SAP is now being considered by almost every large scale firm of Australia and New-Zealand (Techie 2014).

 Gaps & Challenges

It would be wrong if one say that this software’s are fully error free and provides 101% security of the data. Technology is really advanced now no doubt but still it hasn’t reached a spot where it can’t be conquered. Same is in the case of accounting information systems. Few gaps and challenges of faced by these software’s are as under (Kontio 2005):

• Security: If at any point the security provided by this software’s gets hang or delayed, a computer hacker won’t even waste a single second and will hack the systems of the organization. It is mostly happens with government websites and with their systems.
• Not so economical: These custom made software’s are not so economical, few of the firms spends on such software’s more than they earn, which ultimately results in their big losses.
• Technical support: These software’s are not so customer friendly, a client needs professionals to operate these software’s and in case if any problem occurs the accounting information companies do not provides any technicians which again results in the waste of money and time and efforts.

 Recommendations

The accounting software’s firms in order to overcome these challenges and to maintain their market must look into this matter. They must work and develops such software that can’t be hacked, which are more users friendly and provides such software’s at a reasonable amount.

Conclusion

After observing all the informational facts about the accounting information system software’s a detailed and a brief conclusion provided here. The future of accounting information systems companies are bright, however they need to work on such software’s that cannot be hacked and that are not so expensive. It is their moral responsibility also to provide such software’s at a price that can be paid even by the small firms. Eastwood refrigerator PVT LTD needs to work on its organizational structure. They might be earning a good amount of profits in the present but this kind of structure gives problems in long run. Eastwood Company as they are right now operating at a mid scale and soon they will achieve the tag of large scale firm, so SAP is the best choice as it is designed for medium and large scale firms.

Bibliography

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