Read the case study ‘Success to Succession’.
1. Identify the importance of wetware costs.
The scenario of the whole world is changing along with the advancement of information technology. In order to keep a pace with this changing world, advancement in technology and information systems are essential (Norton, Porter, 2011). Now days all the organizations are dependent on the information technology and computer aided systems that makes the work easier and faster. The success of the organization solely lies on the level of adaptability of the organization in the changing dynamic environment. In addition to this, the wetware costs in today’s world find a good importance within the organization (Wright, Dawood, 2009). In this assignment, it will be discussed about the importance of wetware costs along with its relevance within the organization that had implemented Accounting Information System.
The term wetware means the association of human beings in the information technology and the costs associated with them is the wetware costs. It is the synonym of the human capital that is connected with the sector related to Information Technology. Wetware includes the developers, system administrators, IT architects, programmers and other employees who are associated with the IT tasks, servers, networking, applications, software developments etc. According to Saxton (2012) along with wetware, a major cost is associated which is in the possession of the computer system. This is because; a huge amount of cost is incurred to give a proper and methodical training to the users of Information technology system for the better and productive use of technology driven systems. The wetware cost can be termed as the indirect cost that takes into account the training cost of both hardware and software systems by the users (Hurley, 2002). Previously, the companies used to ignore the indirect costs but now with the modernization of the technology, companies are focusing on the indirect costs which due to negligence can expose the organizations towards a huge risk.
The demands as well as expectations of the information technology systems are increasing so with this advancement, the information’s are available to the users leading to spam’s and overloaded information. Dennett, Daniel (2014) commented on the fact that previously, the software problems were easily solved by hardware solutions. The wetware solutions reduced the complexity regarding the set up and installation of the hardware through plug and play approach. For this reason, the wetware costs are rapidly increasing that needs immediate attention to resolve the difficulty in maintaining the wetware cost. This is even seen that the companies failing to put focus on the wetware costs have failed to get success with the changing technological driven world (Abeles, Tom, 2009).
HBF Group Limited having it’s headquarter in Perth is an Australian company that provides financial services that includes health insurance, car insurance, travel insurance, workplace health insurance, life insurance and home insurance. The company has adopted Accounting Information System that has proved helpful to the company in collecting data and processing relevant information to both the internal and external users (Bushman, 1999). The internal auditors along the chief financial officer used the accounting information system to analyze the excess expenditure as well as for identifying the inconsistencies in the accounting systems. The newly implemented Accounting Information System proved helpful to the company and made their work easier and correct to a large extent.
HBF Group Limited implemented the Accounting Information System that helped the organization in carrying out the accounting system efficiently in order to successfully achieve the goals of the organization. Van Zwanenberg (2012) commented on the fact that this Accounting Information System mainly focuses on the financial and accounting sections of the organization that takes into account the taxation, inventory control, financial budgeting, revenue collection, resource allocation etc. The organization after implementation of the accounting financial systems in order to attain the operational effectiveness successfully also needs to focus on the relevant costs (Applegate, Scott, 2009). It is seen that the wetware costs within the organization is very essential to identify. This is because, with the new innovation and implementation of the modern technologies, the wetware costs are also increased. In addition to this, the cost of maintenance for resolving the issues in order to provide a good service increases the wetware costs. For identification and to keep a proper accountability of the cost of information technology, the organization keeps into account the costs related to software, hardware as well as wetware (Ehrenberg, Rachel 2009).
The idea that was followed by HBF Group Limited for implementing wetware costs proved beneficial to the organization. This helped to improve the progression of the internal process of the organization tactfully and successfully. Previously, the company was facing certain problem regarding the software and hardware in keeping the records of the clients and mistakes regarding the accounts. According to Mender, Donald (2010) the company in order to make the accounts correct and updated invested a handsome amount behind the software and hardware of the company but somehow it didn’t work out well. So, in order to solve the problem, the company invested a huge amount in providing sufficient and effective training to the employees those are majorly connected with the IT systems (Ehrenberg, Rachel, 2011). This helped the company in undertaking the wetware costs for dealing with the unauthorized entries in the confidentiality of the company thereby civilizing the operational activities of the company. The wetware cost was successful since it helped the company in efficiently using the hardware and software. Moreover, the wetware costs helped the organization in reducing the errors and the safety hazard is also controlled to a considerable extent.
The assignment has taken into account the effectiveness, importance and relevance of wetware cost within the organization. The cost of the wetware is increasing significantly with time and the companies need to look into the matter with importance for ensuring success and victory to the company. Previously, the companies used to focus on the hardware but later the software facilitated in creating favorable environment for developing a strong and cost effectual IT system.
Van Zwanenberg, P. Current trends in technology and society, (2012) Brisbane, Qld.: Primrose Hall
Norton, C. and Porter, G. Introduction to financial accounting, (2011) Australia; United Kingdom: South-Western Cengage Learning.
Applegate, Scott D., 'Social Engineering: Hacking The Wetware!' (2009) 18 Information Security Journal: A Global Perspective
Wright, C. and Dawood, I. ‘Information Technology: Market Success To Succession’ (2009) 23 Review of Business Information Systems
Bushman, E., 'Wetware Performance Problems' (1999) 286 Science
Ehrenberg, Rachel, 'Genes & Cells: Computer Chips Wired With Wetware: Experiments Could Lead To Ways Of Melding Mind And Machine' (2011) 179 Science News
Quarta, M. ‘Wetware Concepts’ (2009) 193 New Biotechnology
Saxton, G.. ‘New Media and External Accounting Information: A Critical Review’ (2012) 57 Australian Accounting Review
Hurley, M. ‘Wetware Problem, Not a Software Problem’ (2002) 75 Science
Abeles, Tom P., 'Hardware, Software, And Wetware' (2009) 17 On the Horizon
Dennett, Daniel, 'The Software/Wetware Distinction' (2014) 11 Physics of Life Reviews
Mender, Donald, 'From Quantum Wetware To Mental Illness: A Section Editor's First Interim Progress Report' (2010) 8 NeuroQuantology.
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