The current organizational structure of BHP Billiton
Discuss About The Corporate Responsibility And Environmental.
The paper illustrates and explains the several types of information about the accounting software, ERP system, commercial software and custom software. BHP Billiton has been selected in the task to outline the significance of the accounting software packages and ERP system. Furthermore, the paper explains that how BHP Billiton faces various challenges and issues related operations. Some strategies to address the fraud and errors have been explained in the task. It also provides a brief overview about the leaders of Australia that are engaging in using accounting software packages and ERP system. More information of the task have been discussed below.
BHP Billiton is a trading entity of BHP Billiton plc and BHP Billiton limited. It is an anglo Australian multinational metal, mining and petroleum company having headquartered is located in Melbourne, Australia. The company was incorporated in 1885 in Australia. The leaders of BHP Billiton encourage and motivate the workers to develop and enhance the talent and skills in the global market. It is one of the growing and leading resource companies. The products of the company are sold worldwide with sales and marketing led through Houston, United states and Singapore. Effective MIS and operational model are used by the organization to attract large number of consumers (BHP Billiton, 2018)Andrew Stewart Mackenzie is the chief executive officer of the organization. Ken Mac Kenzie has been appointed as director in the company. The board committee also includes chairman of the nomination and governance committee and members of the sustainability committee. Arnoud Balhuizen is chief commercial officer in BHP Billiton. He plays various roles in the organization in order to attain maximum outputs and revenue. Geoff Healy has been appointed as a chief external affairs officer in the firm.Apart from this, Laura Tyler is the chief of staff and Athalie Williams is the chief people officer (BHP, 2018)
Due to poor organizational structure, wide range of operational problems are faced and dealt by BHP Billiton in the workplace. Some of the important operational problems are discussed below.
Lack of strategic management: It has been stated by Kemp (2009) where he argued that strategic management is the biggest issues in BHP Billiton. Due to poor leadership team, the company is failed to make unique and effective plans and policies for attaining competitive advantages in the global market (Kemp, 2010).
Operational issues in BHP Billiton
Tax issues: It is one of the significant issues that being faced by BHP Billiton while implementing the business activities at international level. The company is unable to control on the prices of the commodity however the organization can control its tax affairs. As a result, the firm has failed to live up the desires and expectations (BHP, 2018).
Efficiency issues: Due to lack of efficiency and effectiveness, the employees are failed for performing roles and responsibilities within the organization. As a result, it affects the financial image and goodwill of BHP Billiton adversely in the international market.
Technology issue: Due to competition, BHP Billiton is unable to use latest technology and resources within the organization. Furthermore, it is noted that leadership is one of the major issues in the organization that affect the goodwill in the marketplace. Due to lack of knowledge and skills, leaders are failed to provide training and development coaching to the workers. Thus, it is the biggest challenge for BHP Billiton Corporation. It also affects the working capacity of the employees adversely (BHP Billiton, 2018).
Various acquisition methods and tools are initiated and used by BHP Billiton to carry out the day to day business activities and operations. Some of the system acquisition methods include commercial software, custom software and enterprise resource planning. Commercial software is computer software that is designed and created for the sale and some other commercial purpose. Customization can be possible in commercial software (Jaeger et al, 2011). This software is designed to fulfill the special demand of the clients and users. This software is far less susceptible to hackers. On the other hand, custom software is also an effective software that used by BHP Billiton in the workplace. Custom software is software that is designed and created for some specific organization and users. It helps in fulfilling the specific needs, requirements and expectations of the consumers and clients. This software also protects the business from external threats and challenges. The custom software also helps in saving the hardware acquisition costs and expenses. It has been noted that custom software can be scaled and changed according to the changing needs and requirements of the organization and clients (Jaeger et al, 2011).
However, BHP Billiton uses ERP system to manage and handle its operations and activities effectively and hassle free manner. ERP system may be defined as a process by which an organization integrates and handles the significant part of the actions and operations. The integration areas of ERP system include inventory, sales, purchasing, planning, marketing, finance and human resources. ERP system is used by the company to provide accurate results and reduce the errors and mistakes within the organization. ERP is becoming a higher priority as mining executives find themselves handling with enormous wildcards such as commodity prices, engineering professionals, shortage of skilled labor and association and regulatory diversity. The enterprise resource planning permits each department to utilize its own reporting measures. The ERP system transforms data bidirectionally to the standard business reporting. By using ERP system, the organization has been able to deliver products and services to the consumers quickly. In this way, enterprise resource planning plays a vital role in BHP Billiton to attract and retain more users and clients in the marketplace (Batista, 2010).
System acquisition method
(Source: https://www.smartdraw.com/flowchart/flowchart-types.htm)
The system flow chart is used by BHP Billiton to map out new and innovative projects. This flow chart flow chart is a part of sales procedure to implement the business actions and operations. With the help of system flow chart, BHP Billiton is enable to maximize and enhance the revenue and returns in the competitive market. The system flow chart helps to maintain strong communication and coordination among the different departments. The above diagram shows that how the company fulfill the demands and requirements of the clients.
Interface and integration issues are faced by BHP Billiton while initiating the custom software, and ERP system within the organization. Multiple software is used by the company in the workplace. As a result, it creates various obstacles and issues in the software. Due to multiple demands and needs of the customers, the company is unable to provide various types of products and services to the users (Darling, 2011). Along with this, infrastructure and legacy system issues are also dealt by the firm. It has been noted that software selection process is time consuming and costly process. Due to lack of efficiency, the workers are unable to know whether how to initiate the system and software within the organization. As a result, it could influence the revenue and returns of BHP Billiton. Due to leadership issues, the employees of the firm are unable to monitor on the software and system within the organization. The employees do not maintain discipline at the workplace. Thus, it affects the operations and actions of BHP Billiton. In today’s modern world, ERP system also encompasses various application and data complexities as a result the organization is failed to receive suitable and right information and facts related to data and application (Spira and Page, M., 2010).
BHP Billiton uses several types of strategies to reduce the fraud and errors within the organization. The organization needs to analyze and evaluate the skills and talents of the workers to handle the issues and problems related to fraud. Internal control plans and programs shall be initiated by the top management to address the fraud and errors within the organization. Along with this, certified fraud examiners and certified public accountants shall be appointed by the firm to analyze and evaluate the fraud activities and operations. A strong and favorable culture and working environment also helps in preventing employee fraud and theft (Mudd, 2010).
System flow chart
In today era’ accounting software packages are used by the many companies in Australia in order to maximize the profitability and returns. Accounting software packages could be used and designed to assist the significantly in the conversion process. This software helps in making unique and effective decisions within the organization. Competition is increasing and expanding in the Australian accounting software market. Kanellou and Spathis (2013) stated that largest number of customers for accounting software in Australia included is medium and small sized businesses. It has been noted that biggest players in the Australian accounting software market include MYOB, Intuit and Xero. The accounting software is used by these companies in the country. Xero accounting software used a model and approach of software as a service. As the same way, accounting software is used by BHP Billiton to run the business actions successfully in the marketplace (BHP Billiton, 2018). The cloud based accounting software is initiated by the company to control and manage the business process. Along with this, it also uses ERP system for optimizing use of resources within the organization. Al-ma (2013) revealed that accounting software packages several benefits to the companies that have been stated below.
- The accounting software packages helps in reducing monthly expenses for maximizing the outputs and profitability of the firm.
- This software improves and enhances the accuracy and security of data as it also saves time and money of the users and companies.
- Financial accounts, ledgers and balance sheet can be maintained easily with the help of accounting software packages. Instant solutions for various problems are provided by the accounting software packages.
- It also helps in tracking and handling the inventory in the workplace to satisfy the needs and requirements of the consumers (Spiceland et al, 2015).
BHP Billiton is a diversified natural resource organization manufacturing commodities along with substantial interest in oil and gas. It provides products and services in all over the world. Therefore, it covers all the areas of the world. The current profit of the company was $4.2 billion (2017). It is reported that the annual revenue of the BHP Billiton was approx 38.3 billion U.S dollars. In 2017, the market capitalization amounted to some 67.5 billion U.S dollars. The company is one of the biggest market leaders in this sector. BHP Billiton is one of the biggest partners in oil and mining industries. By capturing the large market share, the company can explore and flourish the business actions globally. BHP Billiton provides various types of products include iron, steel, silver, oil, gas, aluminum and copper. The organization has also interests in transportation and engineering. It is one of the oldest companies in Australia and South African mining Billiton.
Leaders play a significant role in attaining competitive benefits in the global market. The main leaders in oil and mining industry include Exxon Mobil, Rio Tinto, Arrow energy, Apache Corporation, Beach petroleum limited, BHP Billiton petroleum, Chevron Australia, Cue energy resources Ltd., Inpex, Metgasco limited, Mosaic oil, Origin energy, Roc oil company, Santos limited, Shell in Australia, and Stuart petroleum limited. These are the main leaders in Australia that affect the business of oil and mining in Australia. The companies need focus and monitor on the effective and unique strategies and policies to destroy the rivalries in the Australia. The leaders play an empirical role to provide best and unique solutions to the consumers around the world. The leaders capture entire market to gain competitive benefits in the marketplace. They analyze and evaluate the external market to attain various competitive advantages. Along with this, they maintain strong relationship with each other to handle external risks and threats of the market (Joshi, Singh Ubha and Sidhu, 2012).
Control problems in the system and what sorts of fraud are possible in this system
It has been analyzed that leaders also affect the success and growth of BHP Billiton. The main competitors of BHP Billiton include BP, Exxon Mobil, Anglo American, Nippon steel and Royal Dutch Shell Company. These competitors may influence the revenue and outcomes of the company. BHP Billiton uses leadership styles to motivate and encourage the workers for performing tasks and roles successfully. With effective leadership styles, the company has been able to be a great leader in the global market. The leadership team is responsible to assign tasks and duties among the leaders. They supervise and monitor the tasks and operations of the employees (Apostolou et al, 2013).
There are various issues encountered and faced by users and companies in Australia when using accounting software within the organization. Some of the issues have been elaborated below.
Lack of security: One of the significant challenges that faced by the companies and users is lack of security. Due to this, the accounting software is failed to keep and tack the data effectively and efficiently. It may influence the profitability and progress of the organizations (Chugh, Sharma, and Cabrera, 2017).
Weak reporting service: Due to weak reporting service, the software is not able to handle the data and information properly (Granlund, 2011).
Poor customer relations management: Due to lack of efficiency, the customers and organizations are failed to receive proper information and facts. Therefore, the company is unable to maintain reciprocal and strong relationship with customers. Software compatibility is other issues that faced by users and companies in Australia (Magal and Word, 2011).
Apart from these issues, some other issues include lack of efficiency, no bank reconciliation feature, outdated, difficult to customize and not user friendly. All these issues may influence the financial positions of software companies in Australia adversely. Duplication issues also are faced by the users and customers due to poor accounting software (Romney et al, 2013).
- Latest and innovative technology and resources must be used by the companies to reduce the cost and expenses. Cloud bases software must be implemented by the software companies to handle to the issues related to accounting software.
- Modification and improvement should be done in enterprise resource planning system to protect the resources of the organization. Some new attributes shall be added in ERP system, commercial software and custom software to reduce the gap and challenges that are faced by the users while initiating the accounting software packages.
- Effective and unique strategies shall be used by the companies to eliminate the accounting software issues.
- Experts with effective skills and knowledge must be appointed by the organizations to get right and suitable information and facts related to accounting software packages (Hawking, 2010).
Conclusion
The above mentioned analysis shows that management information system plays an empirical role in oil and mining industry. The above report indicates that how the firm manages and operates business activities with the help of ERP system, and accounting software packages. While implementing the accounting software and ERP system in the organization, various control and operational issues are dealt by the company. The firm needs to focus and monitor on these issues to build and develop a dynamic image in the minds of the consumers. Lastly, some recommendations have been given to handle and reduce these operational and control issues.
References
Al-ma, M.A., 2013. The role of business intelligence tools in decision making process. International Journal of Computer Applications, 73(13).
Apostolou, B., Dorminey, J.W., Hassell, J.M. and Watson, S.F., 2013. Accounting education literature review (2010–2012). Journal of Accounting Education, 31(2), pp.107-161.
Batista, R., 2010. Final internship report: BHP Billiton Worsley Alumina.
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Chugh, R., Sharma, S.C. and Cabrera, A., 2017. Lessons Learned from Enterprise Resource Planning (ERP) Implementations in an Australian Company. International Journal of Enterprise Information Systems (IJEIS), 13(3), pp.23-35.
Darling, P. ed., 2011. SME mining engineering handbook (Vol. 1). SME.
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Kemp, D., 2010. Community relations in the global mining industry: exploring the internal dimensions of externally orientated work. Corporate Social Responsibility and Environmental Management, 17(1), pp.1-14.
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Mudd, G.M., 2010. Global trends and environmental issues in nickel mining: Sulfides versus laterites. Ore Geology Reviews, 38(1-2), pp.9-26.
Romney, M.B., Steinbart, P.J., Mula, J.M., McNamara, R. and Tonkin, T., 2013. Accounting Information Systems [1st Australasian edition]. Pearson Australia.
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Spira, L.F. and Page, M., 2010. Regulation by disclosure: the case of internal control. Journal of Management & Governance, 14(4), pp.409-433.
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