Adoption of Cloud Computing Firms †Free Samples to Students

Question: Discuss about the Adoption of Cloud Computing Firms. Answer: Introduction: This report depicts the importance of incorporating strategic information system in a business organization that helps to build the organizational structure and also helps to gain effective revenue model. The revenue of a business organization is dependent upon its structure but at the same time the organization might positively as well as negatively impacted with the structure. In the first part of the report for representing the organizational structure Woolworths limited is selected. On the other hand, the operational issues experienced by Woolworths are also elaborated in this paper. Additionally, the most likely system acquisition method along with a flowchart will also be prepared for Woolworths Limited. From different analysis it has been found that, Enterprise Resource Planning (ERP) is one of the most efficient system acquisition methods. At the end of the report, different controls problems those are associated to the organizational structure will be identified. Different range of tasks can be estimated and determined efficiently with the help of the developed organizational structure of Woolworths Limited. The management authority of Woolworths Limited has a four level managerial structure and the company uses open communication method to communicate along with the fellow project team members including the finance manager and project sponsor as well (Mortimer, 2014). Apart from this, the Human Resource Management (HRM) system of Woolworths Limited is very much efficient. Operational problems experienced by Woolworths Limited due to its organizational structure After analyzing the current market trends it has been found that the company is facing major challenges due to presence of lack of management strategies. Thus, the organizational structure is unable to serve the required operational and functional capabilities. The operational problems are affecting the general management structure of Woolworths Limited, in terms of supply chain management, customer relationship management and stakeholder management as well (Amos Sullivan, 2016). The different operational challenges faced by the consumers of the business organization are as follows: Human resource issues: The leading role of Human Resource Management team is to manage all the employees rather labor of the business organization. In other words, it can be said that, the organizational goal can be reached after designing the proper job roles of the employees of the business organization (Islam, Jain Haque, 2016). It will help the employees to utilize the resources accurately. Supply chain management issue: It has been found that, the supply chain management system of Woolworths Limited, is considered to be the oversight of different materials, information as well as finance and operational components because all these are becoming procedures from the suppliers to manufacturer and also to the end point of the consumers (Cheng et al., 2014). The integrated activities are required to be transformed for procuring the materials and organizational services as well. However, the company fails to manage such kinds of services and productivity at the same time. Capacity and demand management issues: The Company lacks to fulfill the requirement of the consumers due to lack of capacity and demand management as well. On the other hand, the time management and system management capacity of Woolworths Limited is also not enough appreciable (Arli et al., 2013). Improper communication management: The company uses downward communication it means that only the higher authority are capable to share their views with others and none of the team members are capable to share their views or ideas to the top management authority (Cameron et al., 2015). In order to resolve this issue the organization should adapt open communication approach. Incorrect service process: The service process designed by the business analysts of Woolworths Limited, are incorrect. The main reason behind this is lack of proper management measures. Due to absence of measuring services, the retail outlets of Woolworths fail to meet the requirement of the consumers (Akbar Ahsan, 2014). On the other hand, the performance measuring process of Woolworths Limited uses traditional methodologies and due to this reason the company is also facing major challenges and issues as well. Most likely system acquisition methods Based on the type of business different kinds of system acquisition methods are used by different business organizations. From the market analysis it is found that, one of the most likely system acquisition models is ERP and Woolworths Limited also uses ERP model for their business development. Both the management authority and the consumers of Woolworths Limited can utilize the tools for implementing their business process fluently and accurately (Muthoka and Oduor, 2014). It also helps to establish communication between the different operational departments of Woolworths. Apart from this, the system also provides measureable security to the system to protect the data stored in this server. Due to the security measures none of the external users can access the data from the server. Even the intra organizational conflict can also be avoided with the help of the system. Different business organizations use SAP ERP, commercial software for gaining commercial benefit from the competitive market (Islam, Jain, A., Haque, 2016). The SAP ERP will help the business organization to serve the desired service to the consumers of the company. It is determined that, Woolworths Limited is one of the leading retail industries in Australia that serves on time delivery and quality products to its consumers. Due to affordable price range the company is able to grab large number of consumers regardless of their geographical boundary (Akbar Ahsan, 2014). The sales procedure flowchart of Woolworths Limited helps the organization to provide various opportunities visualization capability as well regarding its sales structure and market revenue. It will help the organization to lead its sales structure towards measurable success. The diagram below represents the sales structure of Woolworths Limited. Identification of the control procedure of the system The company might face different control level issues due to lack of inventory management system. Due to lack of inventory management system Woolworths Limited is also facing major control level issues (Amos Sullivan, 2016). The control level issues identified in Woolworths are as follows: Improper sales and purchase: This is one of the major control level issues that have been identified in Woolworths Limited. The IS of Woolworths should be updated properly, after purchasing or selling any product. As the IS lack this feature thus the system fails to record the sales information accurately. It will lead the system towards measureable failure. The purchase level fraud can also be raised due to improper inventory management system. Security level issue: Security is another issue that the company is facing constantly. In addition to this, the detail processing system used by the organization is very much challenging and the employees and users are unable to maintain this process accurately and this is reason for which the company faces major challenges (Arli et al., 2013). The paper depicts the importance of implementing online accounting software package in a business organization to avoid the issues of traditional data management system. Mainly for managing financial data, online software packages are required to be adapted by the financial institutions. The online software accounting package selected to represent this report is named as Xero. The paper elaborates the development and adaptation of Xero in Australian financial industry. In addition to this the report also illustrates the current market size of Xero in the competitive market including the leaders and the competitors of the company. Apart from this the report will also elaborate the current challenges or gaps that the users of the company are facing continuously. Xero is referred to as one of the most widely used online accounting software packages used in Australia. This online accounting software package is mainly used by small to medium organizations, and the system runs over cloud server (Hingorani, Beasley Bradford, 2015). It means that, the users of Xero online accounting software package can avail high storage and security at the same time. The users of this software can access the storage regardless of their location and time. The system cannot be used in large organizations because it is specially designed for small businesses. This system can be run in real time. It implies that the users will be able to access up to date data from the server and due to the presence of single version, the users can connect the system from office and desktop also. It provides unique and single platform to the users where the small businesses can collaborate all the activities very easily. This system provides enough security to the server it means t hat only the authenticated users will be able to access and utilize the system efficiently (Walther et al., 2013).). As, the data holds different kinds of financial information thus, security is one of the major concern that is required to be considered by the system developers. The features of Xero include bank reconciliation, online invoicing, purchase orders, expense claims unlimited email support, financial reporting, bank feeding and world class security. The current market size of Xero From the current market analysis it has been found that, Xero is one of the leading online accounting software packages widely used and served in Australia. The numbers of users are growing rapidly due to its market presence and operational and functional features. It is found that, the annualized committed monthly revenue at the end of March 2016, is around $257.9 million. The number of paying subscriber at the end of 31st March is 717, 000 million. The cash and the cash equivalents and the short term deposits at the end of 31 March are around 207.1 Million (Treves, 2017). The strong global revenue and subscriber growth of Xero is continuing to execute on a global basis and it is found that the number of paid subscriber hit over 717,000 and the annualized monthly revenue is $256.90 Million and it is increased up to 65% from the previous time (Walther et al., 2013). From the market analysis it is determined that the operating and investing cash usage for the second half of the year i s around $ 39.90 million (Erturk Fail, 2015). Depending upon the current projection and the growth plan of the business organization it has been found that in order to drive the business towards cash flow break even, Xero has a sufficient amount of capital. The company is purchasing large market of around ten millions of small businesses and most of them are well experienced in the cloud usage. In order to continue the business process properly Xero has the resource and substantial revenues for continuing with the long and short term both focuses (Hingorani, Beasley Bradford, 2015). After the market analysis it is found that the company has a least amount of financial support to improve the existing performance of the system. MYOB and Reckon are the biggest competitors to Xero. Both Reckon and MYOB is user friendly it means that the users can use the software packages, without any sort of professional training and development program (Ma, 2015). Even the essential subscription price is also less in case of these two service providers. Identification of the current gaps and challenges encountered by the users of Xero Security: Security is one of the major issues that the organization is facing. It is found that Xero is eager to subscribe these software packages for entering to the system or into the financial and personnel information in the server (Walther e al., 2013). On the other hand due to lack of security, the sensitive information stored are getting hijacked by the external users. Cost: Cost is another challenge that the company is facing. It has been found that, among all the software packages the price of the trial version of Xero is highest. Apart from this, in order to implement the system the technical requirements those are needed, very much costly (Treves, 2017). Encryption: In order to increase the system security encryption key is needed to be adapted to overcome the data theft issues. Technical advances: The Company is required to implement different technical advances, for improving the overall system capacity. Experienced users implementation: The Company should hire experienced users for handling the complexity if the system. 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