HI5019: Strategic Information System - Literature Review - Assessment Answer

Strategic Information System Assignment

Assignment Task

Each student will write a literature review of NOT more than 1500 words. The review should demonstrate that the student has thoroughly researched their topic. Students should use examples of business practice from the scholarly journals papers, conferences, books and professional magazines to support their arguments

The literature review would be on accounting software/packages used in Australia. The research would cover history, development and adoption, the current market size, identify the leaders in the market and what gives them the competitive advantage. Students are also required to identify the current gaps or challenges encountered by users or customers of accounting software/packages and make relevant suggestions or recommendations.

Research reports are to be presented in hard copy in size 12 Times New Roman or 10 Calibri Font and double spaced. The research should include a list of at least 5 references used in the research report and a bibliography of the wider reading done to familiarize oneself with the topic.

Submission: Hard-copy to tutors/lecturers assignment box and a copy of the report generated from SAFE ASSIGN attached to it.

You are reminded to read the “Plagiarism” section of the course description. Your research should be a synthesis of ideas from a variety of sources expressed in your own words.

Introduction

A Strategic Information system helps an organization to identify a strategic application, which supports an organization to achieve its objective. Enhanced Strategic information system planning is a critical issue. It plays an important role for any organization. In this report we will review the accounting software/packages being used, its history, development, market size, challenges etc.

Organizations use Strategic Information systems to reach its goal. However ineffective and improper use can also lead to loss of opportunity and costly resources. The user satisfaction i.e. the human factor and organizational factors combined together is seen as one of the major reason for the failure. There is a dominant influence of these factors on the outcome.

Accounting software is application software that records and processes accounts related data and information like trial balance, accounts receivable, payable etc. It is generally online based and flexible and can vary as per cost or complexity. Selection and implementation of suitable accounting software is a difficult task. Current accounting software packages like MYOB comes with multiple functionalities like managerial decision making apart from the traditional recording of financial transactions and accounting reports. With the advancement and innovation in she recent years the software has vast technological growth like power, speed, performance, flexibility etc.

The available accounting software’s also offers a number of add-ons which can be implemented as per the organizations requirement. MYOB is one of the principal and leading small businesses accounting software in Australia as well as New Zealand. It has a user base of more than 500,000 all over the world. Due to awareness, technology advancement, need for growth and market competition there is a significant increase in the user base of accounting system software. Thus it is now at a stage were the adoption and implementation from small businesses is not an issue any more.

Literature Review & Evidence Research

Different researchers have defined accounting software differently. Though there are numerous research studies available on the selection of perfect IT adoption and its implementation but study on accounting software implementation is limited. Even with the limited research reports in this area we aim to help in understanding the kinds of challenges and issues being faced.

Small business accounting software is an important division of the whole business. According to studies accounting software is a major application which is being used widely. According to Yellow Pages (1997), approx 76% of the small business setups had atleast one computer system in there unit, but 75% of them were using accounting software (Breen, Sciulli and Calvert, 2003).

In one of the IT adoption review it was also found that the main application being used by majority was the accounting system software. Studies specifically focused on adoption of accounting software. There are 4 variables that affect the owner’s adoption decision. These variables have been further categorized into 4 elements like decision maker, technological innovation, organizations characteristics and organizational environment.

The technology innovation perception is strong and positive. 69.7% of the users think the application as not expensive and 70.5% consider the set up not costly. 86.1 % stated that the GST is more manageable with the software and 89.4% believed that the accounting software has helped in making the business more efficient and has a positive impact on the overall running of the organization. Only 9% of the respondent indicated high cost as the only reason of not using the application.

Other related finding state that 54.9% of the small businesses uses MYOB accounting software in comparison to its competitors like Quick books which resulted to 24.6% (Breen, Sciulli and Calvert, 2003).

Studies have found the below mentioned determinants of the utilization and use of accounting systems:-

• The use can be predicted by people’s intentions.
• Apparent usefulness is one of the main determinants.
• Visible ease of use is one of the secondary determinants.

Competitive Advantage

MYOB (Mind Your Own Business) is a multinational corporation based in Australia. It has currently a user base of over 1 million small businesses, approx 40,000 accounts which is 60% to 70 % of the accounting market share. In the year 2012 MYOB generated a business of $218.1 million revenue. It offers a powerful yet simple accounting system. It focuses on work flow and the process. It is GST ready and compliant and can automate every financial aspects of a business process like invoice, payment tracking, banking, report generation, profit or cash flow status, sales figure etc . It is well tested for GST compliance and processing. It is easy to use and records business transaction through double entry. It is designed and framed to work as per the user. It is designed to be one of the high end accounting software. Accounts and records that require intense accounting power is usually not within the reach of low cost packages. It is also instant and accurate in recording and updating the financial data. It is currently one of the top accounting software for small scale business (MYOB Accounting System, 2016). Almost 89% of the respondents believed that the use of accounting software added positive values to the business. MYOB is one of the identified leaders of market. It offers:-

• Easy and chaos free installation
• Simple to use
• Broad documentation
• Support from Vendor
• And Upgradability

One of the biggest advantages of MYOB is its popularity among book keepers, practitioners and impending employees. People with MYOB expertise and experience are easily available.

When compared to other accounting software systems MOYB is considered as less messy and confusing, unlike its competitors Moneyworks & AccountRight’s which uses multiple window at a time, small size of the default window, small content, old design of screen. Features also include reporting flexibility, multi – level password and Inventory control. MYOB continued being the dominant and leading market player.

Benefits

1. It is easy to navigate and extract information’s.
2. It has a active help section which makes it easy to learn
3. Brings all the information at one place and includes payrolls and POS.
4. Anytime, anywhere access, ability to work online.
5. Greater input speed and low cost.
6. Ensures accuracy and engage in sale or payroll analysis.
7. It can calculate GST & track jobs, leaves and inventory.
8. Invoice, quotes and all kinds of expenses management.
9. Manages suppliers- like payments, summary of accounts.
10. Automatically reconcile bank a/c and calculation of payrolls and similar entries.
11. Secure backup and automatically updates the current information.
12. Can work in multiple currencies. The exchange rate problems are minimized.
13. Effective management- Monitoring becomes easy and control due to availability of quick reports. Unlike traditional method when one has to wait for the month end to get the reports.

Current Gaps & Challenges encountered by users or customers.

1. Increase in the user – designer communication gap.
2. Database changes are rigid and can only be done by one person at a time.
3. It is considered as not very interactive.
4. One of the major concerns is data security.
5. It is not beginner friendly.

Conclusion

By going through the relevant research it is clear that there are two main reasons which contributes to the failure of any accounting software system i.e. User rejection and strategic conflict. We discussed the various facts and figures presented in different studies that indicate the high rise in the usage of accounting software and its competition in the Australian market. The various other aspects like the adoption, development and benefits.

Although it is one of the most efficient accounting software human factors which acts as a problem exists. If an end user is not ready to use the system, even the best available technology tends to be useless. Thus reinforcement and assurance needs to be developed by providing the users with useful information. This human factor is one of the key issue in successful implementation of information system. Also it should have scope to facilitate the update as per the user requirement, considering the fact that it might change with time and as per requirement. The increase or decrease of the success rate of information system depends upon the end user satisfaction. Thus users should be involved right at the time of designing process to avoid any communication gap. This will also led to embracing the application without any resistant and proper utilization of the system by the end user. This effort to reduced communication gap among the user and the designer will further help in improving success rate of Accounting Information System.