The current organizational structure
Discuss about the Implementing ERP system of Qantas Airline in Australia.
Accounting is the lifeline of any business. Accounting usually deals with summarizing, analyzing as well as reporting to the financial data along with data about a business (Whittington, 2014). An accounting software records and processes on the accounting transactions of the business within its functional modules (Ali and Miller, 2017). The financial statements usually comprise of the balance sheets, profit and loss account along with the statement of changes in the financial position could easily be prepared with accounting software. There are a number of accounting software which are used across Australia (Ali and Miller, 2017). The country has a number of the small and large organization which utilizes accounting software. According to Ali and Miller, (2017) argued that the use of the accounting software usually depends on the number of factors. The need of the accounting software for the large business might not be the same as the need for the accounting software for the small or the mid size business (Amrollahi, Ghapanchi and Talaei-Khoei, 2014). Through definition, accounting software usually highlights the kind of programs which records and processes the accounting information system.
In this literature it will focus on the Qantas airline in Australia. This airline is the oldest airlines in Australia as well as the 3rd oldest still running airlines in the world. The organization begun its operation activities in the 1920s as the domestic passenger airline and they begun their international services in the year 1935 (Amrollahi, Ghapanchi and Talaei-Khoei, 2014). The airline they have been able to retain their brand image for almost a century now and they are still regarded as one of the favorite airlines among the Australia customer across the world. In this literature review it will focus on the accounting system used by the business to execute and record their financial as well as accounting transactions across the domestic, international, cargo along with the other subsidiary services of the business which are all under their brand.
To be able to understand on the organizational structure of Qantas airline, there is need to understand on the organization business operational products and services along with their subsidiaries that are part of executing on their operation in association to the Qantas Airline. Qantas airline usually offers domestic and international passengers services to the clients across the world (Amrollahi, Ghapanchi and Talaei-Khoei, 2014). The organization is also part of the fleet services that carries the cargo as well as couriers from one destination to another (Amrollahi, Ghapanchi and Talaei-Khoei, 2014). The organization operates express ground handling services for their own benefits and also on behalf of the small and the regional airlines that could not manage on their own.
Operational problems
The organizational structure of this business is a complex one in nature and at the same time it is decentralized. The decision making process of the organization is assigned to various managers as well as the top executives to the relevant subsidiaries so as to ensure that the process of making decision has been executed (Granlund, M., 2011). The top management of the business is the one which is responsible for the vital and the strategic decision making for the business. The managers in the organization are also allowed to make decisions which are based on the situation (Granlund, M., 2011). They usually follow a given functional organizational structure which is separately to every subsidiary to ensure that they could maintain a transparent process of delegating of the responsibilities and the authorities (Granlund, M., 2011).. Such a complex organizational structure could lead to delays in the process of making decision particularly during some of the crucial time when the organization needs to make fast decision in regards to a given issue.
Qantas Airline there are executing various operational activities and they needs to make sure they are capable of executing their activities with the minimum level of errors and ensure there is maximum accuracy. There are numerous operational issues which the organizations are encountering as result of the structure and this is the main reason why there is delay in the decision making process (Clark, Shoaib, Hewitt, Stanford and Bate, 2012). The airline market has been dynamic and the top management of the organization has been responsible for strategic decision making process which is undertaken. In case the market offers an opportunity to adapt to the new technology and there is delay in process of making decision this could lead to the inefficiency to the business aspect and thus they would not benefit (Granlund, M., 2011). Moreover, complex structure exhibited in the organization might lead to miscommunication between management and the ground level workers and this leads to delay in offering of service and sometimes lead to service failure (Granlund, M., 2011). An example is when the booking team fails to identify that the airplane is full or overbooked, in this case the clients might feel irritated due to miscommunication or there was failure in the service provision since they were not informed. On their part it is a major inconvenience since they did not fly at the time they wanted due to wrong misrepresentation by the booking personnel.
Most likely system acquisition method (commercial software, custom software, or ERP)
When a company has numerous activities within the business and other operational activities which are associated to them, the most effective method for acquisition would be Enterprise Resource Planning also regarded as ERP software (Granlund, M., 2011). This software could be used to streamline on all business activities operations and offer on time data to all the associated as well as relevant departments and prevent any disruption which may arise or inefficiency in the performance. The ERP system is the most preferred system for the Qantas airlines since the system could assist the airline to maintain a much better database management as well as storage system other than other commercial software (Granlund, M., 2011). This software would assist all the operational along with the other related department so as to coordinate them in relation to the requirements of the raw materials, customer services and the maintenance of services and provision of quality product. ERP system usually has the efficiency to support on the airline in order to perform an analytics on the behavior of the clients as well as the preference pattern and the development of much better services and products which depend on the expectations and requirements (Ladewi, Susanto, Mulyani and Suharman, 2017). ERP system could help the organization to reduce on the probability to the occurrence of the number of the errors as the data is transferred to the appropriate departments in the right time with minimal defects.
On the system flowchart of the Qantas Airline starts with the development of products and a target audience has been identified. In case the passenger’s airline, the target audience are usually the passengers that are much willing to use services of airlines in order to fly from one destination to another (Granlund, M., 2011). On the aspect of the sales procedures it begins with inquiring with the client in regards to the services to the preferred destination as well as the complementary services and the cost in the services (Whittington, 2014). The sales executive in the organization would offer details to the clients and a pitch to them so as to convince them to use the services the business is providing and at the same time give them discounts (Mouritsen. and Hansen, 2009).
The next step would entail the customer purchase services for a given flight to where they would want to go at a given time; they then book a seat in the airplane. Clients they have options when it comes to booking a ticket to the preferred airplane via internet or even through 3rd party vendors that are the partners to the airlines in offering of the service to the customer (Leyh and Sander, 2015). The fleet sales procedures are usually different from regular client flowchart procedure.
Describes and prepare a system flowchart of the sales procedures for Qantas Airlines
There are numerous control issues in this system which the airline service organization could encounter (Chang, Kuo, Wu and Tzeng, 2015). One is on the sales execute individuals making fake promises to the clients in regards to the complimentary services that might damage on the image of the organization. The automated online system for the payment could be compromised by attackers in case it is not well secure or the details of the account could get leaked (Chang, Kuo, Wu and Tzeng, 2015). Another issue is when the 3rd party vendors in greed to increase on their sales revenue which make them to commit fraud (Creed, Daly, Dowdle & Stevens, 2008). They might charge more than the stipulated amount of money for travel especially to the clients who are in urgent need to travel. Another issue is that the cashiers who are at the counter could steal money and at the same time make false representation of date so that they could protect themselves from getting caught (Kilic, Zaim and Delen, 2015). The data for this organization is important since the details of the clients and the passengers modes of the payment could be stored or even reused by the cashiers to make a payment for their personal need without the data to the client.
The accounting software package need to record accurate to all the details of transactions especially in a systematic manner (Chang, Kuo, Wu and Tzeng, 2015). The software need to be user friendly to the workers so that it could reduce on the time which is taken in learning as well as getting hand on the experience when using the software (Susanto, 2015). This accounting software need to minimize all the steps which entails the recording of the information and at the same time improving on the efficiency of the workers and the storage of the data in ensuring there is a maximum data which has been stored at any particular time (Chang, Kuo, Wu and Tzeng, 2015). The software need to offer all the important data any department in the organization without wasting of the time as well as retraction of the process which is necessary to extract data in a manner that is quick and secure.
There are numerous accounting software which are available in the market but not all that fulfil the requirements of organization such as Qantas airline since they have processes that are complex (Cassidy, 2016). This would entail a good and an effective ERP system that is capable of supporting on the technological requirement in airline in order to reduce all the possibilities of occurrence of any kind of the errors especially in the accounting as well as the cash flow in the airlines (Granlund, M., 2011). As a result of the complex process, airline might not afford the implementation of the various systems in order to satisfy on the technological requirement needs (Oster, 2012). Moreover, they also need to be compatible to each other and they do not cost any extra money on the part of the airline.
Due to the development in information technology as well as advancement in the information system, it is crucial to any organization such as small, medium or large to implement various accounting technology (Granlund, M., 2011). The current players in the Australia market for the small as well as the medium organization are MYOB, Xero, Reckon and QuickBooks (Oster, 2012). These organizations are competing against each other in order to maintain their market size share. Presently, MYOB has the maximum share in the market with account to approximately 35%, then followed by the QuickBooks, Reckon and the last is Xero which currently has been gaining speed and also occupying the share in the market away from the MYOB (Laudon, 2016).
The large organization in Australia cannot depend on small accounting system thus they would prefer the large technology from companies such as Oracle, SAP and IFS (Cassidy, 2016). These software vendors’ organizations are usually the best in the market especially in the provision of the ERP solutions that could support the business needs as well as other operational function so as to ensure there is efficiency leading to improvement of the productivity (Supramaniam, Abdullah and Ponnan, 2014).
Presently the leaders in the ERP system in market are Oracle and the SAP organization which are the major leading large scale organization in providing this accounting software. The Oracle organization has Net suite software as well as the SAPS which are among the most popularly known in the market to the large scale businesses (Cassidy, 2016). Qantas airline organization is amongst the largest organization that has complex structure in the business, thus they require accounting software that is more flexible in nature and that can be handled well by the employees (Oster, 2012).
NetSuite software is popular technology due to its flexibility nature since any worker could alter the fields within the software when they have correct access and the authority. The use of this software does not utilize the traditional technique where alteration could be done via IT individuals or the administrators of the system like in the past (Oster, 2012). The software is scalable and could offer opportunity when making additions to the modules or even delete them when required (Oster, 2012). This software is a complete ERP solution system that could automate all the operations of the business and at the same time incorporate them to a single application. The software has the ideal benefits when it comes to collaborating data from the numerous entities subdiary to one point of operation and at the same time incorporates them to single application (Shatat, 2015). The software also offers benefits when it comes to collaborating data from numerous entities within the organization into the application and is able to streamline and at the same time evaluate on the performance of the decision making process on the strategic aspects.
There are numerous problems which are related to clients booking which take place in 3 locations (Morecroft, 2015). The booking might be done at the airport, internet or perhaps through the 3rd party vendors. In such situations it could lead to mis-coordination between the workers and the services providers in regards to the capacity of the plane and the distribution of the tickets as well as fulfillment of seats (Morecroft, 2015). There has been rise in regards to complaints about overbooking of the tickets by the clients who are traveling with this plane and this has caused a lot of issues to the clients. There have also been complaints in relation to the payment portal which is not supportive especially to the model of windows since it does not allow the payment to go through for the clients (Jadhav and Sonar, 2009). This could lead to huge losses in the business on the part of the airline
The new accounting software which would be implemented in the organization would offer services as compared to the traditional software they had. Qantas airline is one of the largest businesses therefore, they require more powerful as well as flexible software for the business such as NetSuite that would fulfil on all the requirements of airline as well as streamline on their business operations to one single software. The requirements of this organization are complex thus they could not be satisfied through use of small scale accounting software that cater for small business.
Conclusion
Qantas airline organization should identify on all their requirements before they could take any decision in relation to the implementation of new accounting software. This software requires huge capital and also time for implementation. ERP system would be advantageous to the business since it would improve on efficiency as well as productivity which lead to reduction in the errors thus making all the process transparent within the entire department in the organization.
References
Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic literature review. Journal of Enterprise Information Management, 30(4), pp.666-692.
Amrollahi, A., Ghapanchi, A.H. and Talaei-Khoei, A., 2014. Three Decades of Research on Strategic Information System Plan Development. CAIS, 34, p.84.
Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.
Chang, B., Kuo, C., Wu, C.H. and Tzeng, G.H., 2015. Using fuzzy analytic network process to assess the risks in enterprise resource planning system implementation. Applied Soft Computing, 28, pp.196-207.
Clark, R.A., Shoaib, M., Hewitt, K.N., Stanford, S.C. and Bate, S.T., 2012. A comparison of InVivoStat with other statistical software packages for analysis of data generated from animal experiments. Journal of Psychopharmacology,26(8), pp.1136-1142.
Creed, D., Daly, D., Dowdle, P., & Stevens, J. (2008). A roadmap to help your organization become process-based. Journal Of Corporate Accounting & Finance (Wiley, 19(5), 77-83. doi: 10.1002/jcaf.20420
Granlund, M., 2011. Extending AIS research to management accounting and control issues: A research note. International Journal of Accounting Information Systems, 12(1), pp.3-19.
Jadhav, A.S. and Sonar, R.M., 2009. Evaluating and selecting software packages: A review. Information and software technology, 51(3), pp.555-563.
Kilic, H.S., Zaim, S. and Delen, D., 2015. Selecting “The Best” ERP system for SMEs using a combination of ANP and PROMETHEE methods. Expert Systems with Applications, 42(5), pp.2343-2352.
Ladewi, Y., Susanto, A., Mulyani, S. and Suharman, H., 2017. Critical Factors Accounting Information System Success Survey of State-Owned Enterprises (SOE) in Indonesia. International Journal, 10(1).
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Leyh, C. and Sander, P., 2015. Critical success factors for ERP system implementation projects: An update of literature reviews. In Enterprise Systems. Strategic, Organizational, and Technological Dimensions (pp. 45-67). Springer, Cham.
Morecroft, J.D., 2015. Strategic modelling and business dynamics: a feedback systems approach. John Wiley & Sons.
Mouritsen, J., Hansen, A. and Hansen, C.Ø., 2009. Short and long translations: Management accounting calculations and innovation management. Accounting, Organizations and Society, 34(6), pp.738-754.
Oster, R.A., 2012. An examination of statistical software packages for categorical data analysis using exact methods. The American Statistician.
Shatat, A.S., 2015. Critical success factors in enterprise resource planning (ERP) system implementation: An exploratory study in Oman. Electronic Journal of Information Systems Evaluation, 18(1), pp.36-45.
Supramaniam, M., Abdullah, A. and Ponnan, R., 2014. Cost analysis on ERP system implementation amongst Malaysian SMEs. International Journal of Trade, Economics and Finance, 5(1), p.72.
Susanto, A., 2015. What factors influence the quality of accounting information. International Journal of Applied Business and Economic Research, 13(6), pp.3995-4014.
Whittington, R., 2014. Information systems strategy and strategy-as-practice: a joint agenda. The Journal of Strategic Information Systems, 23(1), pp.87-91.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
