1. Identify the importance of wetware costs?
2. Identify an organisation implementing an accounting information system?
3. Discuss the relevance of wetware costs to the implementation in the organisation you have identified?
The increase in the information and communication technology has changed the traditional world into digital. This transformation is termed as the information age. Due to rapid increase in the technology usage, the world is mostly focusing on the progress and development of the information technology. This information age is separated into three different periods one is the stage that mainly focuses on the hardware systems, the second is the stage that focuses on the software and third is the wetware cost organization. This paper emphasizes on the significance of wetware cost and its impact on the organization.
1. Significance Of Wetware Cost
For more value added services, the organization must transform its present knowledge base in to upgraded version focusing on the existing activities and the ideas. There exist three different categories of organization human resource, intangible assets and the tangible assets (Quarta, 2009). According to Silicon Valley the resources of a company are the wetware, software and hardware (Abeles, 2009). Here, the wetware can be defined as the brainpower of an employee. It is said to be private property of the employees that can be carried or transformed to different organizations. Thus based on the definition, the wetware cost can be defined as an indirect cost that is needed to make the users knowledgeable about the utilization of hardware and software. However, it is to be noted that this wetware has to be controlled properly, or else it might control the achievement decisions of IT industry.
2. Implementing Accounting Informational System Within Companies
Hawaiian Telcom is one of the most reputed companies based in the United States of America. The company’s headquarter is located at Hunululu. The firm effectively provides communication services to different businesses, government, residential area, and wholesale consumers. It is one of the members of S&P 500 index. Within the country US, the company stands at the third position amidst telecommunication industry. Besides generating communication services to multiple companies, it even provides long-distance services. The firm is believed to use accounting information system extensively (Chapman & Kihn, 2009). This is immensely helpful in collecting data. This accounting information system is useful in processing of data. Once the data is processed, the information system would generate relevant data which may be used by all internal organizational users and that of external users. This accounting information system was applied by the auditors to determine various activities of fraudulence within allocation of expenses. The firm successfully pointed out the anomalies within the entry of any sort of accounting information (Fisher, 2007). The system of accounting information has acted as an effective mechanism to identify every minute detail within the accounting entry.
3. Relevant Wetware Expense Within Implementation
Hawaiian Telcom has been successful in implementing accounting information system for enhancing the organizational security. The effectiveness of such an information system has successfully increased and improved due to the incorporation of accounting information system. This mechanism has been used as a tool for controlling different financial operations such as budgeting process, calculation of tax, revenue recognition, and resource allocation. This accounting information system has rendered accuracy to the information processing activity. This has enhanced the effectiveness of the firm (Bhimani, 2012). Operational efficiency has been the result in the process of identifying important and significant costs. As all costs are equally significant to lead to organizational growth, the process of decision-making of firms is based on important costs and that of organizational revenue. In this regard, it may be considered that wetware expense is quite significant within the process of implementation of accounting information system. It is identified that quite a greater extent of wetware cost is involved with the utilization of technologies within firms. Various innovations within area of information system has caused higher wetware costs within firms. As accounting information system is an improved technological advancement that would involve greater level of expense, the issues connected with maintenance as well as communication technology demands greater rate of wetware costs (Chapman & Kihn, 2009). Implementation of accounting information system within organizations demands for higher investment into hardware, wetware, and that of software.
In conclusion, the current report has enlightened the theoretical concept of Wetware and its significance. With the rapid growth of the information technology, the relevance of wetware cost is also rising. Rising innovation through implementation of high-end technologies have resulted in the rise in the wetware cost. The report also discusses the initially the information technology focused on the development of hardware but now there has been a transformation or paradigm shift from the hardware stage to the software stage and presently it is the wetware stage. This creation or transformation is thus adding value to the organization. The software development helps to manipulate and analyze the data which furthers helps the organization to make effective communication process by sharing the data. This has given outcome of indirect cost which is termed as the wetware cost that mainly focuses on enhancing the organization’s performance and growth. The wetware cost has become the most dominating area in IT system. The report also highlights the significance of implementing the accounting information system and also significance of wetware cost in the implementation of such system. The report highlights that the Accounting information system is one of the latest technology that helps in carry the transaction process easily in the organization. This process also involves huge cost. This cost is nothing but the wetware cost. Thus for successful performance and implementation of accounting information system, the firm must focus on investing into the wetware cost.
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Bhimani, A. (2012). Management accounting system implementation success: is reporting useful information sufficient?. IJAAPE, 8(2), 115. doi:10.1504/ijaape.2012.046612
Chapman, C., & Kihn, L. (2009). Information system integration, enabling control and performance.Accounting, Organizations And Society, 34(2), 151-169. doi:10.1016/j.aos.2008.07.003
Fisher, I. (2007). A prototype system for temporal reconstruction of financial accounting standards.International Journal Of Accounting Information Systems, 8(3), 139-164. doi:10.1016/j.accinf.2007.07.001
Quarta, M. (2009). Wetware Concepts. New Biotechnology, 25(4), pp.193-194.