Information Systems - Case Study

Question: Read the case study Success to Succession. Identify the importance of wetware costs. Identify an organisation implementing an Accounting Information System. Discuss the relevance of wetware costs to the implementation in the organisation you have identified. Draw some conclusions. Answer: Importance of Wetware Costs The increased awareness and importance is being given to the wetware costs and the basically provided priority is meant by the exploration of the solutions. These solutions are essential in order to identify, diminish and conquer the chilling effects that can be observed on the IT markets. From an early example, many of the problems related to the software issues were solved by the way of hardwiring solutions into the CPU. Also, it is acknowledged that many of the wetware solutions have been designed by the way of the changes made to the hardware and software. In this case, an instance can be given by relating the aspect of plug-and-play. It helps to reduce the different compliances involved in the setup and installation of new hardware even in the tough conditions (Gelinas and Dull, 2008). Apart from the software and hardware, the contradictory term is known as wetware which similarly affects the success or failure of the entire IT system. The term that wetware came from the fact that human brain is filled with 75% of water. Therefore, wetware refers to the human capital or personnel who can be considered as the developers, programmers, IT experts, system administrators and other employees. The contribution of them in the overall IT systems of the organization cannot be ignored. Based on this reason, every organization should need to give importance on the wetware costs in order to invest effectively into this portion as the different projects of the organization cannot be completed without the intervention of human activities and needs. Organisation Implementing an Accounting Information System An accounting information system is known as the system for collecting, storing and assessing the different types of accounting as well as financial data from the specific company, for the purpose of helping the management and business to take the effective decisions. With the conjunction of information technology resources, the computerized systems are used by the accounting information system in order progress the systematic activities and functions under the process (Gelinas, et al., 2004). Different types of accounting functions and their information from the business are tracked by that particular system in order to create the effective and statistical reports of the business. These reports are used by the internal parties like the management and also the external parties interested with the organization, like shareholders, creditors, investors, etc. The basic fact is the involvement of the physical devices and systems which are responsible for the operations of AIS. Based on the importance of the AIS, the implementation of the entire system is considered as of major importance for the organization. Some of the major organizations like Tycon International, Worldcom and Enron have been identified as they implemented the AIS and also have to face different scandals during the process of implementation. The implementation process of AIS should need to comply with the strong internal controls into their transaction-based systems (Laudon and Laudon, 2001). In this particular context, in 2002, the designing of Sarbanes-Oxley Act is being done. According to the act, the implemented organizations should need to produce the internal control report which will be responsible for the internal control structure of the organization and also outlines the effectiveness of those controls. Relevance of Wetware Costs to the Implementation All of the processes of the organization is being operated and function properly on the basis of the involvement of human capital and the effective contribution from the wetware. Therefore, the organization need to the make the effective valuation of the wetware resources involved with the particular process of the organization as, the relevant information related to that should need to be delivered to the management, investors, etc. Also, the relevant statistics and information should need to portray on the financial statements of the organization. In the process of implementing the AIS into the organizational structure of Enron, the effective contribution from the wetware is essential and based on that context an appropriate accounting system was utilized by the organization in order to acquire the proper estimation of the wetware costs in the overall implementation process (Romney and Steinbart, 2006). The relevance of wetware costs can be established by recognizing the level of i mportance given to the human assets. In order to build the shareholder values, the effective contribution of wetware is important. Thus, the intellectual power of the employees is given the utmost priority and considered as the important input in the process implementing the AIS to the company as identified. The whole process of implementation is based on the usage of technology and thus it is considered as the knowledge-related process. Considering this particular fact, the critical success of the entire procedure depends on the aspect of wetware and wetware costs. Moreover, the necessity of the wetware is observed during the maintenance and handling of the AIS and its effective outcomes (Simkin, et al., 2013). Therefore, the company should always need to make the proper allocation and measurement of the costs and values involved with the wetware. Conclusions The contributions, benefits and advantages of accounting information systems and wetware can be idolised from the effective portions portrayed in the above sections. In order to set up an effective accounting information system in a specific organization, it is important for the management and leaders of the organization to dedicate time to give priority and attention to the entire implementation and outcomes of the system in order to make it sustainable in terms of the particular business (Ward and Peppard, 2002). The implementation and functionality of the entire system vary by the nature and business operations of the organizations. In this case, the business must take the help of the consultant to make the process fast, safe and ensuring the successful results. In this case, the effective contribution from the wetware is considered as the significant aspect and the intending the primary preparation relating to its cost is also the major part of the whole implementation plan. Changing of workflow, cost allocation of the wetware, work habits, etc. is considered as the factors of huge importance when the organization switches to accounting information systems (Romney and Steinbart, 2006). Also, the compatibility and sustainability of the entire system is facilitated by the way of effective solution derived not only from the software or hardware, but also from the wetware. References Gelinas, U. and Dull, R. (2008).Accounting information systems. Mason, Ohio: Thomson/South-Western. Gelinas, U., Sutton, S. and Hunton, J. (2004).Acquiring, developing, and implementing accounting information systems. Mason, Ohio: Thomson//South-Western. Laudon, K. and Laudon, J. (2001).Essentials of management information systems. Upper Saddle River, NJ: Prentice Hall. Romney, M. and Steinbart, P. (2006).Accounting information systems. Upper Saddle River, N.J.: Pearson Prentice Hall. Simkin, M., Rose, J. and Norman, C. (2013).Accounting information systems. Singapore: Wiley. Ward, J. and Peppard, J. (2002).Strategic planning for information systems. Chichester, West Sussex, England: J. Wiley.