Student Name Ikram: B01ACIS215

a) Explain the role, component of accounting information systems, internal control and IT governance using the documentation technique in organisations.

b) Describe the business processes, the related technologies/infrastructure and challenges.

     Accounting information system: E-commerce and ERP and ERP system

Executive Summary

 This study reflects the importance of E-commerce and ERP system within the IT process of David Jones. Analyst demonstrates the working process of E-commerce and ERP with the other IT services of David Jones such as RFID technology, Data mining, Database, Internet, Van, EDI, etc. Moreover, this study also highlights the implementation issues of E-Commerce and ERP system with the business process and utilizes the key advantages for David Jones after implementing E-commerce and ERP system.

Table of Contents

Introduction. 4

Background of the Selected Company (David Jones) 4

Implementation of E-commerce and ERP system with ICT facilities in the company. 5

Implementation Issues Related to E-commerce and ERP System.. 6

Advantages of implementing an E-commerce and ERP system.. 7

Conclusion. 8

References. 10

Accounting information system: introduction of E commerce system with ICT facilities

Introduction

This study focuses on analyzing the importance of E-commerce and ERP system within the IT process of a selected organization namely David Jones. Apart from that, this study also explains the implementation issue of E-commerce and ERP system and the key advantages that can gain by David Jones through implementing E-commerce and ERP system.

Background of the Selected Company (David Jones)

David Jones limited company is a retailer and E-commerce and ERP company in Australia. It has several departments with branded collection of products like: dresses, shirts, sweaters, shoes, jewelry, watches, furniture, home decorators,  electronic devices like laptops, tablets, kitchen products, beauty products at its best price and with a wide range of satisfactory services. The company also offers financial related services through the alliance with American companies to its customers. It offers attractive corporate services to its customers. New staffing method, restructuring stores and proper analysis of database by the higher and trained authorities of the company recently helps it to organize 38 stores near the Australian territories (David Jones, 2016).

Myer Holdings and Harvey Norman Holdings Ltd are the two biggest competitors of David Jones that poses to several threats for the company. Myer holding is a departmental store faces increasing competition with David Jones especially in the fashion store products and electronics products. Inversely Myer Holdings and Harvey Norman holding Ltd understands the customer’s requirements very easily and provides services according to that which lead to a significant profit for the companies (Shop.davidjones.com.au, 2016). Therefore, David Jones needs proper planning and strategies to make a place for itself in this competitive retailing world.

Implementation of E-commerce and ERP system with ICT facilities in the company

David Jones implements the two-foundation tools E-commerce and ERP and ICT infrastructure. This E-commerce and ERP system helps the company to relate with its existing ICT facilities that are data mining; data warehousing; database system etc for better service management. E-commerce and ERP model relates with Data mining process in the ICT system of the company to pick up relevant information through the stored database (Gonzalez et al, 2013).. Therefore, through the data mining method the ecommerce system of the David Jones must prioritize the data including products sold, purchasing record, consumers browsing history (Al-Debei et al. 2012). Data mining is basically related to data warehouse system. E-commerce and ERP website of David Jones uses the data warehouse to provide services related to finance, banking service, goods and retail sections.

Since e commerce and e business environments are rapidly, expanding in the information and communication field it is very much important to analyze the data using data warehousing as it could increase business intelligence significantly. Business intelligence aims to success in e commerce. Another technology of ITC field is the use of RFID that is radio frequency identification technology used for transferring data.  E-commerce and ERP system with the use of RFID technology (Delen et al. 2013) helps to implement business process and security issues. Over the internet a consumer, select products and proceeds for payments on internet browser. In the proposed solution a customer physically in a store, collect up all the RFID tagged products to purchase and put it in a basket (Al-Lozi et al. 2012). Then the customer proceeds to check out exit. At that moment RFID receiver, system will register all the products with the buyer.

The RFID system integrated with E-commerce and ERP system calculates the total amount of payment and ask consumer to make the payment by entering password. This completes an E-commerce and ERP transaction. The most important service of ICT is the communication through a value added network channel. When transaction process is going in the company instead of using manual process of transaction the e commerce model uses VAN technology (Demirkan et al. 2013).

In this process, transaction is very fast, information transmitted instantly; better communication can be established between the buyers and sellers. At the end, E-commerce and ERP models of David Jones overviews another method of ICT that is EDI-electronic data interchange. In order to exchange the data to the other departments of the company this electronic communication process is used. To achieve the goals of the company and requirements of the consumers’ E-commerce and ERP uses some of the documents of EDI system such as orders, shipping requests, delivery timing of the products etc.

Implementation Issues Related to E-commerce and ERP System

In order to implement an E-commerce and ERP website for a retailing company is not an easy task at all. David Jones also faces some of the issues related to e commerce implementation. Some of the major issues are a website that will give 24×7 services, but sometimes fails to communicate with the consumers as many users are searching for the products at the same time over a single network that leads to congestion. Then implantation cost of such system is very high that affect the economical area of the company. Apart from that, shortage of skills and lack of trained personal make the system erroneous (Demirkan et al. 2013).

Another major issue is security. It has been identified that database is less secure during the implementation. Therefore, there are many chances for database hack. Reliability of network infrastructure is very much needed as the system can be destroyed with the spreading of viruses. Some legal factors like taxation issues are always engaged in this kind of system. Proper environmental factors are needed to implement an e commerce system (Gasco et al. 2013). Technical factors related to the hardware and software to build the E-commerce and ERP network is leads to several problems in the organizations which fail to satisfy customer’s needs.

Advantages of implementing an E-commerce and ERP system

By implementing an E commerce system, three major advantages can be achieved which are by David Jones ltd: organizational advantages; advantages to the customers; and advantages to the society (Green et al. 2012).

Organizational advantages: by using e commerce model David Jones Company is capable of expanding their market to worldwide with minimum amount of investment. The company easily locates its consumers, best trading partners across the national and international markets. It helps the company to reduce the cost of processing and managing by the information that are made digitized.

Advantages to the consumers: The Company uses a reliable E-commerce and ERP website that gives 24×7 accessible supports to the customers. The customers are capable of comparing the products with many options and can select the best item.

Societal advantages: consumers do not need to travel for shopping, they can purchase products from home that minimizes the traffic on the road and pollution is lower in the environment (M.M et al. 2012). E-commerce and ERP system helps the government to provide health services, education services to the common people in a better way It is an evolution which achieves more competitions, market place, faster transaction and communication and maintains the relationships between customers and sellers. However, this system also thinks over the security issues that are a very important factor for any organization. Therefore, the company tries to provide healthy E-commerce and ERP services to its customers to achieve its business goals.

Conclusion

In this research report, it can be concluded that the retailer company of Australia David Jones ltd uses the E-commerce and ERP system integrated with ICT facilities like data mining, data warehousing, RFID, and EID in a perfect and proper way. It takes the help of the existing ICT facilities of the company includes: database, data mining, data warehousing; business intelligence; RFID, VAN, and EID technologies. Combination of E-commerce and ERP model with information and communication system makes the success factors for the company.

References

Al-Debei, M.M. and Al-Lozi, E.M., (2012). Implementations of ICT Innovations: A Comparative Analysis in terms of Challenges between Developed and Developing Countries. arXiv preprint arXiv:1208.0887.

Ali, S. and Green, P., (2012). Effective information technology (IT) governance mechanisms: An IT outsourcing perspective. Information Systems Frontiers, 14(2), pp.179-193.

David Jones, (2016). The Story of David Jones – David Jones. [online] Available at: http://www.davidjones.com.au/About-David-Jones/The-Story-of-David-Jones [Accessed 8 Jan. 2016].

Demirkan, H. and Delen, D., (2013). Leveraging the capabilities of service-oriented decision support systems: Putting analytics and big data in cloud.Decision Support Systems, 55(1), pp.412-421.

Du, K., Huddart, S. and Xue, L., (2015). Accounting Information Systems and Asset Prices.

Gonzalez, R., Llopis, J. and Gasco, J., (2013). Information systems offshore outsourcing: managerial conclusions from academic research. International Entrepreneurship and Management Journal, 9(2), pp.229-259.

Ismail, N.A. and King, M., (2014). Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms. Journal of Information Systems and Small Business,1(1-2), pp.1-20.

Shop.davidjones.com.au, (2016). Shop Our Catalogues | David Jones. [online] Available at: http://shop.davidjones.com.au/djs/en/davidjones/shop-our-catalogues%20 [Accessed 8 Jan. 2016].

Soudani, S.N., (2012). The usefulness of an accounting information system for effective organizational performance. International Journal of Economics and Finance, 4(5), p.p136.

Stewart, P., (2012). The role of E-commerce and ERP systems for the construction industry. Australasian Journal of Construction Economics and Building, 1(2), pp.24-36.