· 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.
Identify the importance of wetware costs
User training encounter and understanding is referred to as wetware. It also refers to the brain of the user. Generally, it is characterized by the following merits:
1. It generally boosts the suppliers’ income as they incorporate the indirect cost in their total expenditure. These costs on time which they spend on updating the software in order to respond to the user's commands send from the hardware by the users in order to attain the output.
2. It has led to solving more IT problems more than they create (Rawson 2002). This has been enhanced by reduction of information fatigue caused by information overload.
3. It leads to innovation and invention since there is a need for changes to be made to the software and hardwired for the wetware effects on the market to be tamed.
4. It can improve and promote learning to the users since they are being provided by the knowledge and technical know-how which makes them ready to use and apply the IT hardware and software’s application.
5. It can lead to the improved living standards of the suppliers since the programmers, developers and IT architects can be able to be paid highly due to the high sales since the losses will be curbed due to incorporation of the indirect costs (Rawson 2002).
6. The applications, servers, networks and the rest of IT system will be improved for the employees, programmers and developers are motivated hence increase efficiency and effectiveness.
7. It leads to meeting users’ needs and lowers the extent to which they are compelled to acclimatize to the practice.
8. Wetware gives users assess, indexing, manipulation and analysis of information and furthermore, promote communication.
9. It has led to adoption of lot of new systmes that contain individual learning schedules for customized needs. Programs such as Ms. Word and XP provide customized interfaces which are efficient and easy to use.
Identify the importance of wetware costs.
Human beings are less reliable, and wetware infrastructure helps reduce the human errors. When errors resulting from human mistakes are made, some of them may be fatal and may lead to the incurrence of huge costs such as repair costs. Wetware systems help reduce such errors thereby proving quality, accurate and reliable results.
Programmers, developers, system designers, cloud and IT architects, as well as other employees directly, are able to directly affect how servers, applications, networks and the rest of the IT systems function. Hence, there is more control of the wetware system which that is why it is effective.
Wetware infrastructure helps lower the costs of implementation of an array of systems. It is hence economic to install wetware systems in order to provide economically effectively and efficient systems (Levin, Rubin & Stinson 1986). Installing other related softwares may be hefty to the organization but with wetware systems, it is cost effective.
Incurring wetware costs provides for the installation of systems that boost production and thus contribute to the increasing of the revenues from the firm. A business that has incurred wetware costs cannot be compared to one that has not. Incurrence of costs helps the organization increase its diversity in terms of the scope of operation.
Discuss the relevance of wetware cost to the implementation in the organization you have identified.
With the emerging trends in the globe today, vast number of software and programs are being designed with the overall aim being to increase the usability of the programs as well as making tasks easier and more doable. The systems are designed in a way that provides for the solvation of myriad user problems (Levin, Rubin & Stinson 1986).
The wetware cost is an indirect cost which are majorly incurred in the organization while creating awareness to the user’s applications, networks and accessing, interpreting, correcting information. Yahoo is a company that majorly provides mailing services. There is a need therefore for them to educate users on the usage of the website, employ programmers to update and access the cloud (Chen 2003). Moreover, the processes help them air their adverts, for the final consumers to acquire and sufficiently use for varies decision-making e.g. product promotion. Furthermore the Yahoo system dominates acquisition of decisions to reduce the hardware and software costs, for example, the cost of using the system, analyzing, justifying and drawing conclusion from the results offered. Contrary to the introduction age of the computers, these costs were too small and buried in the other expenses.
Implementing an Accounting Information System such as NetSuite which involves the use of business clouds software contributes to the automation of business process through incorporation of systems such as enterprise resource management (ERP), CRM, PSA, end to end B2C, service resource planning software, openAir as well as NetSuite business intelligence.
Many of the ecommerce software available in stores and which have been utilized by enterprises have seen the corporations’ record increased profit margins. Accounting information systems provide informational summaries of reports every week or month depending on the frequency set by the business itself.
The role of AIS is critical. It is indeed clear that utilizing AIS contributes a lot to effective business decision making process. The quality of decisions made by the businesses using AIS is far much above organization that do not utilize the systems. The internal controls, performance evaluation help an organization in conducting its transactions effectively. Accessibility of information has enables corporations plan adequately on their production levels as well as forecast their demand and sales budgets. This has in turn helped lower the occurrences of surpluses and shortages. What this implies to an economy is that resources in the economy will be utilized optimally through avoidance of excesses and shortages.
As a computer system software, AIS reduces the prevalence of making human errors which are common especially when computing figures and calculations manually. Business are hence able to report accurately of their revenues. This to a nation helps in the tax collection since reporting the correct accurate amount of tax will help the government raise funds through taxes collected. The cases of tax evasion will hence be lowered. An increase in tax collection by the government is also beneficial to the citizens since the government will be able to provide better services with the given tax revenue. Tax revenue reported has favorable effects on the economy as it an injection.
Draw some conclusion.
In conclusion, wetware cost is an essential factor which should be given priority over hardware and software. This is because, it is the feature which determines the way the hardware and software work and interprets the input into output.
When left unchecked, then IT market will chilled, in the long run. It will also stall the human progress since people will tend not to respond to the changes in technologies making the IT experts to relent and be the custodian of knowledge. The massive rise in wetware costs are rising especially in the 1990s caused shocks in the market scenes. This has a great impact on the economy (Chen 2003).
In relation to Figure 4, the actual cost of equipments fells as the expenses on the equipment reduces drastically than software while wetware increases (Dubash 2005). This, therefore, confirms that the wetware are indirect cost which should be tamed without delay.
Eventually, the use of adaptive systems has seen the reduction in prices into what will see the reduction in the wetware costs. In the future, there is a likelihood that culture and businesses will will delve into the onus of solving the wetware-cost problem and most likely, human beings will connect effectively with the technology. This will ultimately increase the growth effects of culture and technology in the economy.
Chen, M. (2003). Moore‘s Law Technology and Economics. Technology Manufacturing Group,
Intel Research & Development. .
Dubash, M. (2005). Moore's Law is dead, says Gordon Moore.
Levin, I., Rubin, D. & Stinson, J. (1986). Quantitative Approaches to Management. 6th ed. McGraw-Hill Book Company. Canada: Toronto.
Rawson, H. (2002). Unwritten Laws: The Unofficial Rules of Life as Handed Down by Murphy and Other
Sages. Castle Books. Edison, N.J.