Accounting information systems are termed as structures that collects and processes information from various transactions within an organization, and then organizes the information in a useful manner for the organization administration usage as deduced by (Aronson 2014, p. 14). Hence, information technology/ IT and AIS are applied in businesses and organizations with the primary goal of enlightening their competence and efficiency as explained by (Blundell-Wagnall 2013, pp. 67-68). In addition, organizations invest billions of dollars in acquiring and implementing of these important tools yearly, in order to advance their performance. Thus, this report aim to critically determine how organizations applies the strategic and premeditated use of AIS in achieving Information Technology supported innovation.
As stipulated by Demotte, Marcy and Feininger (2018, pp. 150-455) is that intricacy of AIS continues to improve with the involvement and introduction of technologies advancements, as well as with the modern ways of carrying out business in the globe. It is by understanding how innovation drives financial industry as an essential aspect in determining the AIS innovation progress. The two example of accounting information systems include Cloud Computing and Big Data Online Services.
According to study conducted by Robert (2016, pp. 243-578) an autonomous software analyst, is that approximately 39 percent of organizations are currently using cloud computing-based accounting packages. Some of the reasons for the adopting of cloud computing by most companies is because of customers and workers based applicable benefits. These benefits include increase in productivity and competence, the availability of connected supplements for particular challenges of accountings and easing of collaboration in various departments and locations within the organization (Robert 2016, pp. 243-578). In addition, cloud computing-based solutions offer a better user access and regulator mechanism that helps in the mitigation of risk. It alleviate risk by use of digital fingerprints and putting of timestamp in each entry. By use of this kind of AIT- accounting information technology, organization are able to achieved more comprehensive auditing activities in a systematic way at a given time.
Cheema (2010, pp. 979-985) suggested that in a world or globe of Big Data, the whole accounting and fin-technology sector is in a maturation period. However, the sector is even working tirelessly to adopt modern and innovative methods of thinking about the information, as clients demand more and easier ways to get financial data online. Cheema (2010, pp. 979-985) added that firms in financial sector such as banks, insurers and investment companies have increased and improved investments in information management and Big Data all around the globe. Big Data recognizes the importance and power of gathering and utilizing of information to enhance services.
Internal factors are aspects that within the organization which are intangible or tangible, and controls the company. These aspects can lead to success or failure of AIS enabled innovation by an organization. Some of these factors include organizational structure, infrastructure, human resource, capital resources, and operational efficiency (Franklin 2016, p.23).
The owners of the organization have to set up a system that ensure a smooth working condition within the firm, has it will enable the development of suitable and stable structure from AIS enabled innovation discussed in the examples above (Marczyk & Festinger 2011,p.13 ). Whether, the organization is centralized, independent, and dependent or decentralized the most significant trait is the effectiveness of the structure applied by the organization in its innovation. To ensure that innovations of the company become successful the heads of departmental have to ensure that the flow of information is broadly conveyed to clients. The suitable regulations and guidelines have to be applied to ensure that benefits of workers and the organization is reached through the accounting information system innovation enabled.
Its being argued Franklin (2016, p.23), that human constitutes a large part of significant factors which internally utilize the impacts on the growth of organization innovation. Individual employees can either be a success or a failure factors of innovation depending on their level of skills in practical scenario and attitudes of work. For instance, if the company has deployed workers who are skilful and motivated, the firm will be sure that innovation enabled will succeed (Gast 2013, pp. 130-250). Whereas, if the firm employed unskillful and less motivated workers, the outcome enabled innovation is be failure.
When an organization have skilled, well-trained and motivated workers, an effective operating structure and administrative system the company owners should make sure that organization structure supports the innovation enabled by AIS (Franklin 2016, p.23). When the infrastructure within the company are company are good for both secondary and primary functions the successfulness of innovation will be taken care of by the available manpower. In addition, with new, modern and high-quality tools or facilities, power stability, internet connection the performance of the company will be at par with the AIS enabled innovation. Moreover, the better the organization infrastructure the successfully of the company performance towards its innovation.
Money is the vital element for any organization to accomplish its plans (Demotte, Marcy & Feininger 2018, pp. 467-487). There is no organization that can survive with its innovation without having enough funds or financial resources. Once an organization has adequate budgets, it can easily launched its enabled innovation and even expand it to a large scale innovation. However, there also various ways in which a company can maintain a stable budgets for its innovations by some of its resources such as the increasing investment outputs and opportunities, backing or funding and yearly income.
The way in which the organization is being operated may positively or negatively affects its innovation, which results to success or failure of the same. The operation of an organization in a marketplace includes bundle of contribution aspects including commodities, clients and workers. For the successful of innovation, the owners of the business to understand the how enabled AIS innovation is implemented, how it is being used with the company, how does workers performs their duties for the successfulness of the innovation as well as to what improvements that should be made to the innovations (Marczyk & Festinger 2011,p.13). These can only be possible if the operator understands the level of proficiency of the organization enabled innovation is at, if he/she can come up with appropriate adjustment techniques of handling current innovation problems.
External factors are those aspects that impact organization outside and organization has no control of them. However, by considering the external aspects environments business owners are able to adjust toward suitable marketing strategic plans concerning their innovations. Some of the external factors that determine the successfulness or failure of an innovation includes economic factors, immediate infrastructure, clients’ demands, and laws and regulations.
Economy is the primary determining factor towards the success or failure of company innovation, though it is an external component of business environment (Romney, Steinbart & Cushing 2010, p.45). There are some contributing factors within the economy that may lead to success of the AIS enabled innovation. Some of these contributing factors are fluctuation in terms of interest rate, economic instability due to political crisis which may directly or indirectly impact the usage of the enable innovation. Thus, affecting the clients’ consumption rates and, subsequently lowering the organization profits, hence the failure of the innovation enabled.
The regulations and guidelines from government may play an integral function in the development of the organization innovation. For instance, in some state or countries the laws and rules prevents the developments of some particular innovation in a given industry which is a threat to organizations dealing with AIS innovation strategic in those countries. Conversely, some organization receive utmost positive and incessant support from state government or local authority which leads to success of their activities such as innovation. In addition, if the regulations permits outer organizations to invest in the local companies, they will be indirect creation of resources or sources of financial support for local organization hence, will boost their innovations in the marketplace (Shao & Lokhnygina 2014, p.2455).
According to Turner and Burton (2014, p. 244-245) it is well known that individuals’ needs and demand are not similar, as they tend to vary in different ways. Therefore, the consumers demand may either affect the enabled innovation positively or negatively. For example, if what has been innovated is not what clients’ demands and what it will automatically failure. On the other hand, if the organization is able to investigate and establish what the company clients’ demand, it will be easy for the customers to use the available innovation.
Depending on the organization infrastructure alone will not be adequate to able company innovation developments. If the company have well-thought-out structures and modern-advanced infrastructure but the infrastructure outside such as roads, electricity and financial institutions are inadequate the business innovation will be discouragement the industry innovation (Zalan & Toufaily 2014, p. 480). The organization will find it difficult to deliver products to their clients that will result to failure of the business innovation. Nevertheless, if the inside and outside infrastructure are in better condition the organization AIS enabled innovation will be implemented successful (Yemack, 2015, p.33).
Success factors associated with the AIS enabled innovation given in the examples include the time factors, independence and speed, and skills. Some of the recommendations derived from the success factors that can help organization embarking on AIS for innovation include;
Companies embarking in AIS innovations should is the time that the organizations will put in their innovations (Gast 2013, pp. 130-250). Hence, for the successful of AIS innovation the companies have to put a lot of time for properly and sufficient innovation.
The organization embarking in AIS innovation should be able to have ability of making rapid decision concerning the legitimacy of their AIS innovation (Gans & Halaburda 2015, p. 258). The legitimacy here is the reality in the innovation there are involving themselves in. In order, to achieve this reality organizations have to carry out their various tests and adaptation concerning their innovations.
Companies getting on accounting information systems should always try to employ workers with motivation to work, with skills and have positive attitude toward working environment, hence, their innovation will be successful rather than failing (Franklin 2016, p.23).
Conclusion
In summary, the report looked at various aspect of accounting information system has applied in IT innovation. The paper introduced the report by describing how IT and AIS are related. It also focuses on the innumerable factors affecting the AIS. The factor looked at were both internal and external aspects and how they impact AIS innovation of an organization. Recommendations and regulations success factors for organizations embarking on AIS innovation. The recommendations have been stated and vividly described has per assessment requirement, finally, the report conclusion.
References
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Blundell-Wagnall, F. (2013). Significance of AIS in organization and its negative impacts. OECD Working Papers on Finance, Assurance and Remote Pensions, (37), pp. 67-68.
Cheema, A., (2010). “Relative importance of online versus offline information for Internet purchases: Product category and Internet experience effects.” Journal of Business Research 63.9 pp. 979-985.
Demotte, S., Marcy, E., & Feininger, Y. (2018). Essentials of research enterprise and methodology in business strategies. Page Press, pp.101-580.
Franklin, M. (2016). THE PROFILE OF ORGANIZATION ACCOUNTING SYSTEM. International Journal of Business & Economics Viewpoints, 11(1), p.23.
Gans, J. S., & Halaburda, H. (2015). Some economics of private digital currency. In Economic Analysis of the Digital Economy (pp. 257-276). University of Chicago Press.
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Marczyk, G., & Festinger, D. (2011). Essentials of computing system and impacts of its adoption. John Wiley. New York, p.13.
Robert, M. (2016). Contemporary Strategy Analysis Cloud Computing. John Wiley & Sons, pp., 243-578.
Romney, M.B., Steinbart, P.J. & Cushing, B.E., (2010). Accounting information systems (Vol. 2). Upper Saddle River, NJ: Prentice Hall, p.45.
Shao, J., & Lokhnygina, S. (2014).THE BIG DATA ONLINE. Chapman and Hall/CRC, pp. 2412-5632.
Turner, S. F., & Burton, R. M. (2014).Impact of AIS to small organizations. Organizational Accounting Analysis, 21(2), 244-268.acc
Yemack, D. (2015).The internal and external business environment factors. In Handbook of business environment (pp. 32-43)
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