Replacing Accounting Information System with New Ones Essay

Replacing Accounting Information System with New Ones - Essay ExampleIt is bare that an organization would go out of business unless it effectively runs the changing needs and requirements of its customers and investors. Therefore, it is crucial for every unassailable to make its musical arrangements and processes up to date so as to wear serve the stakeholder interests. As Beke (2011) points out, an accounting selective information system plays a pivotal role in processing financial and accounting data into perceivable information used by the firms stakeholders including investors, creditors, and managers. An old version of AIS may non meet the current information needs of the stakeholders concerned (particularly in case of publicly traded companies) and this situation would cause dissatisfaction among them. Hence, it is better for organizations to modify the existing AIS on time or install a new one in order to keep their stakeholders satisfied. Such a alter would probably assist the attach to to provide its stakeholders with much accurate and extensive information in lower time frame. Since modern business is based on highly complex processes and practices, stakeholder groups would be greatly benefitted from a high tech accounting information system that enables them to easily assess the companys financial position. ... Furthermore, the company may face numerous practicable issues at the initial stages of the change execution. The following sessions assess the pros and cons of each available option. Advantages of AIS Purchase By buying a new AIS system, the company nominate acquire a potential and powerful system that smoke meet all modern business needs. This option provides the organization with Oracle teams avail in installation, configuration, and testing of the solution. The organization can reduce further system maintenance be to most extent as this newly installed system can be used for a relatively long-acting time period. Disadvant ages of AIS Purchase The feasibility of a new system may be unpredictable and, hence, the company cannot fully rely on it at its primary stages The company hast to invest relatively higher amounts in change management programs A decline in the total productivity at the initial stages of the change implementation may occur due to employee inexperience Advantages of Existing System Modification As compared to different options, the process of modification of the existing system requires less installation costs. Since the existing system is modified by its own information system group that is well aware of the firms needs, the company can ensure the development of proper AIS. The company does not need to depend much on orthogonal parties. Disadvantages of Existing System Modification Modification of an outdated system would be a complex working class and hence this process may raise a range of potential issues to the company. If the system modification is not performed in an excelle nt way, then the company may be forced to spend further costs on the system in near future.