This study will shed light on the Organisational structure of Janome which is a manufacturing Industry. A brief discussion will be done on the efficiency of the present structure. This study will also shed light on the most likely acquisition system used in an industry such as commercial software, custom software or ERP. Sales process of Janome will be discussed in this study. Control problems in the acquisition system will be evaluated and discussion will be done the security challenges. This article will discuss the development process of a accounting software and will also include how to adopt the system. Current market size of Janome will be highlighted in this study and evaluation will be done of the current market competition of Janome. This study will also include current gaps and challenges in accounting software encountered by both of the users and customers.
1. Current Organizational structure
Janome is a sewing machine manufacturing company which started journey from Japan in the year 1921. With the technological development and progress the manufacturing quality also developed and the market of this company kept expanding (janome.com.au, 2018). It has the manufacturing unit in Australia which is working with 3500 employees at present. The organisational structure is dependent on tree structure. The organisation is headed by the group of directors. Project directors and the director take the important decision of the organisation. The structure is divided in four sectors which are accounting, sales, manufacturing and quality control. As suggested by Mellor et al. (2014, p. 197), business of the organisation is dependent on the skilled and talented sales team. The seals team if Janome is headed by the Sales managers and the business expansion and growth in the market is executed by the sales support staffs. The organisational growth and the financial report of Janome are dependent on the accounting sector of that organisation. The manufacturing unit is headed and controlled by the supply chain managers who take care of every activity and the processes. As suggested by Dey et al. (2015, p. 209), under the supply chain manager technical manager, charge hands, production planner and tooling managers takes care of the whole system. Technical assistant helps the technical manager in order to carry out the strategic technical planned designed by the technical manager. Charge hands take care of the kittens, despatch, seal machinist, modules and trimmers. The manufacturing process is mainly carried out by the technical assistance and the tool makers. Tool manager is responsible for the manufacturing of tools and he controls the tool makers. The quality of the production is maintained by a group of employees which is headed by quality and system manager. The quality management is divided in between two groups which are quality assistance and the other is programmer. Programmer takes care of the software part of the products and the quality assistance team takes care of the quality of the products.
Figure 1: Organizational Structure
2. Inefficiency and the errors in the present organizational structure
Janome started it business from Japan but at present, it is controlling the total business in all over the world from New Zealand and Australia. The manufacturing hub of Janome is present in Australia which is operating with 3500 employees. As suggested by De Vries (2015, p. 221), the main inefficiency occurs in the part of communication in between the units present in different countries. Each unit in different countries works as different bodies which works like a different company. This gap in coordination creates a difference in the company tears which varies from one country to another country. Products also differ depending on the body present in different countries. Manufacturing units are mainly dependent on the human resource of an organisation. The skill and talent of the employees vary from one location to another location which creates a difference in the quality of the products. As suggested by Berry and Green (2016, p. 107), in the tree structure the company is ruled by the board of directors. Project directors are present on the board of directors who take all the strategic decision and makes reforms to the organisational policies. Performance of a manufacturing unit depends on the employees and the technical managers who have the technical concept and can make contributions to the strategic planning. Non-inclusion of the technical managers in the strategic decision making and also not giving importance towards the Quality control and system managers works as the efficiency factor for Janome.
3. System acquisition method
The concept of business is changing rapidly with the change in technology. Advancement in informational technology is creating different ways to business development. In order to track day to day business most of the organisations are dependent on commercial software, custom software or ERP. As suggested by Özcan and Çimtay (2016, p. 402), commercial software is dependent on only the accounting part of an organisation. This type of software only tracks the business but fails to do the multitasking. Commercial software is based on physical software which runs only on the system where it is installed. Small industries or business units generally use this type of software as it costs less than other types of software. Custom software is designed in a complex way that it can perform multiple tasks at the same time. As suggested by Schubert and Merian-Str (2015), it has also the limitation as it can work only a few numbers of tasks. The cost of the software depends on the complex nature of the system and the designing of the software. It is, mainly used in the medium size industries where the operations of the organisation are limited. As suggested by Kulkarni et al. (2015, P. 129), with the development in information technology ERP software has been in use by the most of the leading organisations. Janome uses Apprise ERP software which is one of the advanced ERP systems which is also used by other market leaders in different sectors (apprise.com, 2018). ERP is known as the Enterprise Resource Planning system which takes care of the whole business process whether it is financing or it is manufacturing. Appraise concentrates in eight sectors in order to organise the business of an organisation which are CRM & sales, manufacturing, purchasing, finance, time and projects, customer web portal, distribution and dashboards.
Figure 2: Structure of ERP
4. Sales Procedure
Sales process of Janome is dependent on four steps which are marketing, qualification, proposing and delivery. Business development is mainly based on market research and sales strategies. Depending on the location the market changes and the challenges also changes. Janome is doing business in more than 100 countries. In the different country, the market criteria differ. In Australia the Australian unit of Janome gives importance towards the market research in order to understand the market trend, consumers need and competitions. In order to a good business of Janome in Australia, the Sales managers give importance towards the sales training for the sales support staffs. In order to generate new sales opportunities, the managers give importance towards the qualification and the talent of the employees as great knowledge can support the convincing power of an employee. In order to understand the prospect of the sales process and the market, Janome gives importance some qualities in an employee in order to hire which are research business, accounting planning, and presentation. In order to generate business, Janome promotes a linear process which includes account planning, schedule meeting and conduct presentation, engage resources, defining value propositions, developing proposals and pricing.
Figure 3: Sales Process
The presentation is the most important part of this linear sales process as it is used in order to attract the customer attention. Resources are engaged in order to make the consumers understand the value of the product and make a good impression in the mind of the consumer about the products. Developing proposal is the vital part of the sales process as the business of the organisation depends. The main factor in this process is pricing which works as the deciding factor for the consumers. After finalizing a contract Janome gives importance towards implementing change in according to the needs of the customer..
Figure 4: Flowchart
5. Issues with the ERP system
Organisations are using the modern technology in order to organize and plan the resources in an organisation. The common issues are the Crashes and integration issues, loss of control, the power to change the program behaviour, data theft and software vulnerability.
Crashes and Integration issue: with time the organisational structure are changing and the complexity of a business process is increasing. As suggested by Sila (2015, p. 293), with the advancement of the technology the software and the systems are also changing which creates an issue with the adaptability of a software within a system. With the up-gradation of the technology, it fails to run old software which results in crashing issue and integration issue. The software which is mainly based on hardware this type of
ERP software faces crashes issues.
Loss of Control: Introducing the ERP software in the everyday practice of the employees' issues can arise regarding the controlling process. Not all the employees are able to get attached to new technology which depends on the adaptability of the employees. ERP software is the integrated system of different programs which includes Excel, accounting and different programs. Employees with different organisational duties feel a controlling issue in order to access the software.
Software Vulnerability: With the development of technology, the architecture of the ERP system is changing. In order to make changes with the development of technology, the vendors of the systems need to upgrade the software to avoid the crashing issues. As suggested by Ramasamy and Singh (2017, p. 36), vendors of the systems make changes in the architecture in according to the present trend and give the update to the consumers to upgrade the system. This upgrading process opens the door for the hackers which
create vulnerability issues.
Power to Change the Program Behaviour: Sometimes the technical representative of the ERP software becomes the main factor of security issue for an organisation. Technical representatives are responsible for the management of the ERP system in order to maintain the system and the server of the system. They have all the access to make any changes in the software. Misconduct of the technology executives might lead them to make changes in the software which can harm the reputation of an organisation.
Data Theft: The biggest issue in the ERP system is the data theft threats. In the new system of an ERP system is based on data cloud storage which enables a user to get access to the system at any place at any time. This system enables a hacker to put malicious software in a system or in the server which enables a hacker to get access in a system. Not only hackers can get access to the private data of the company it can also hack the transaction links and can leave an organisation in financial trouble.
Figure 5: Issues with the ERP System
1. Development and adoption of the software package on accounting
The development of accounting software is dependent on the working process of software. The important terms in a accounting software are the bill of materials, stock, purchase, sales order, debtors, cash book, creditors, purchase order, and job costing. As mentioned by Kim (2016, p. 41), an organisation stand on the business it has done so the most important part of a accounting software is sales part which includes sales order generation, purchase order stock and cash book. In order to promote the sells the important thing to maintain is the stock which makes an organisation enables to continue the service. As suggested by Seethamraju (2015, p. 481), financial condition depends also on the fixed assets and the purchases. In order to track the business and understand the earned revenue purchase orders also important. A business is run by the employees which also includes cash flow of a company. That's why sally of the employees are also the important part in order to analyse the revenue of a business.
Figure 6: Design Process of Accounting Software
2. Current market size
Janome is one of the market leaders in the manufacturing industry of sewing machines. Though the business started in Japan it faced the most growth being in Australia. At present Janome is doing business in more than 100 countries. In the year 2017 net asset of Janome was 463,963 thousands $ which in this year become 480,130 thousands $. Janome sewing machines are being sold by the retail shops and the distributors which own 50% of the market share (janome.com.au, 2018).
3. Competition in the market
There are many market dealers in Australia in the sector of manufacturing sewing machines. Bernina International, Brothers industry, Elna, Juki, Jennie June, and Davis sewing machine company are the leaders in the market in Australia (needlebar.org, 2018). In the healthy competition of gaining market share, Janome is the leader as it owns the 50% share of the market. The biggest advantage of this company is the technology used by the Japanese engineer is mostly welcomed by the people of Australia. Technology in Japan is so advanced that it works as the reliability factor which helped Janome to take the 50% of the market share in Australia.
4. Identification of current gap encountered by the customers and recommendation on mitigation strategies.
The biggest gap in the Organisation is based on the security issues which creates a security threat for the users and the customers also. The ERP system is based on the cloud data storage system where the mother storage memory is the cloud system. As suggested by Ramasamy and Singh (2017, p. 36), users can access the system at any place from any system at any time. All the systems are not secure to access the system as there might be malicious small software by the hackers which can hack the system and get the path of the server by which they can get access to the private data. This data hacking also acts as the threat to the consumers at the time of the online transaction. There are many possibilities of financial account getting hacked.
This study has highlighted the Organisational structure of Janome. A discussion has been done on the efficiency of the present structure. This study has shed light on the most likely acquisition system used in an industry such as commercial software, custom software or ERP. Sales process of Janome has been evaluated in this study. Control problems in the acquisition system have been evaluated and discussion has been done on the security challenges. This article will have developed the working process of a accounting software. Current market size of Janome has been highlighted in this study and evaluation has been done of the current market competition of Janome. This study has also included current gaps and challenges in accounting software encountered by both of the users and customers.
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