Business Process Management And Significance Of AIS Deployment

Unit Learning Outcomes

AIS is the system which is used to store and collect the data regarding the finance and the accounting of the organization (Hassan, Nasir & Khairudin,2017). The main objective of using the AIS in the organizations or the banks is to collect the data regarding the financial condition and the accountings which will eventually help in the decision making system of the organization (Mirzaey,Jamshidi& Hojatpour,2017). Apart from that proper processing of these information will help to generate the current financial situation of the company. The AIS is a computer generated system which uses multi-tier architecture from the processing of the data. The application or the software has the presentation layer which allows the users to view the data related to the statistical and financial analysis of the market and the company (Ismail & King,2014). The data is backed up by the stored data. Stored data can be of transactional data or the static master data. Proper security measures are taken in order to maintain the security of the whole system (Mirzaey,Jamshidi& Hojatpour,2017). This report will evaluate different aspects of using the AIS and its significance in the proper managing of the business(Mirzaey,Jamshidi& Hojatpour,2017). The discussion will identify the possible challenges and the opportunities regarding the usage of AIS and areas for improvement.

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The methodology which has used to address the following objective consists of addressing the objectives separately. The literature review has been done to understand the literature gap. The gap of the literature will help to identify the areas for the discussion.

AIS can be considered as the system which validates the information regarding the transactions and other financial functions in the organization. The analysis of the financial and the transaction data is done by the AIS and the report generated by this system helps in the decision making process of the organization. There are several guidelines which are provided by ISACA and AICPA (Romney & Steinbart,2015). These guidelines are helpful in understanding the performance of the AIS.

AIS can be regarded as the emerging system which aims to mitigate the failure and the numbers of errors in the process. In this context role of the stakeholders in the functioning of the AIS is important. There are four types of internal stakeholders in the whole system (Trigo, Belfo&Estébanez, 2016). Data custodians help to design the process related to AIS, data procedures are responsible for collection of data for the system, data managers are responsible for the managing of the data and data consumers are the users of the system.

Major Functions Performed by AIS

AIS helps the users to provide the information so that they can effectively control and process all the systems and the functions available in the AIS. In the traditional system, after happening of the transaction and entry is recorded in the journal (Mirzaey,Jamshidi& Hojatpour,2017). In the manual accounting system there is a chance for the happening of the error. However, the traditional AIS can be modified with JIT. JIT allows the computerized version of AIS (Nurhayati&Mulyani, 2015) . There are certain advantages of using AIS. The electronic transaction system will help the flow in the communication between the supplier and the organization. The organization can present the demand of the consumers in a small time span (Susanto, 2016). Apart from that the implementation of the computerized AIS will help to increase the quality of the service provided by the company and it will help the organization to plan effectively for delivering the service.

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The main objective of using the AIS in the business organization is to evaluate the data in an effective manner (Mirzaey,Jamshidi& Hojatpour,2017). The main concern regarding this evaluation is to maintain the quality of the data and mitigate the errors in the data. The error free data will generate the accurate report which will eventually help in the decision making process.

AIS provides the organizations with the quantitative information which eventually helps to generate the effective accounting information. The system can be both manual and computerized (Mirzaey,Jamshidi& Hojatpour,2017). However, the computerized version of the AIS is more effective. The main function of the AIS is to collect and process the raw data and generate the report which would be helpful in the decision making for the organization or the company (Libby, 2017).  There are certainadvantages of using the AIS in the organization. Good decision making can be done through the effective use of the AIS which will eventually lead to the quality management of the services provided by the company (Mirzaey,Jamshidi& Hojatpour,2017). The collaboration of the work between the different departments within the organization can be accomplished through the use of the AIS.

The information in the AIS can be divided into two groups- the information used for the decision making purpose in the organization and the information which are needed for the coordination in the company (Susanto, 2018). The AIS provides the data and information for the decision making process however the effectiveness of the decision making process depends on the perception of the users about the data.

Business and Transactional Life Cycle

All these articles and paper has discussed about the different aspects and the functionality of the usage of the AIS in the organization (Mirzaey,Jamshidi& Hojatpour,2017). However, detailing of the processes followed in the AIS for the processing of the data has not been covered in the discussion.

AIS is the system which helps to process the data and provide the information to the organizations which help the organization in the decision making process. Apart from that this system also helps the organization in planning and managing of the financial and operational data (Mancini & Lamboglia,2017). The system can be both manual andcomputerized. The effectiveness of the computerized AIS is more effective as it can automatically tracks the transactional details of the organization(Mirzaey,Jamshidi& Hojatpour,2017). In the theoretical background regarding the AIS some of the concepts can be discussed-

The major function of the AIS is to collect the data from the different sources regarding the organization. The data are processed through the system and provide relevant information. The information generates the report which helps in the decision making process. Apart form that the significance of using AIS is that it helps to enhance the quality of the service provided by the organization.

The transactional and the business life cycle regarding the AIS stats with the identification of the business process and the transaction. As for example the system in the organization can specify the difference between transaction regarding the loan transaction and transaction of the debit. The Thee recording and monitoring of the transaction needed to be recorded in the ledger and journal. The balancing is needed to be done in both the cases. The entries will evaluated and will reflect the financial condition of the organization. This will help in the decisisonmaking process of the organization.

All the functions of the AIS can be implemented in the computerized version of the AIS. In order to make new entries in the system and entry in the ledger the proper software can be implemented (Abduljalil& Zainuddin,2015). In this case usage of SAP can be beneficial (Seyal& Rahman, 2015). On the other hand the front view of the system needed to be developed by the experts in a proper way so that the users can interact with the software in a proper way.

The deployment of the AIS in the organization can be done in various ways. However, the gathering of the requirements and the functionality is needed to be known before the implementation of the system(Mirzaey,Jamshidi& Hojatpour,2017). There are various AIS available in the market with various functionalities (Teittinen& Granlund,2017). The requirements are needed to be known to choose which functionalities are needed to be implemented in the organization. Apart from that the use of the proper infrastructure and training of the employees regarding the handling of the system are needed to be done in a proper way. The security is needed to be considered as the main issue during the deployment of the system. The system is needed to be secured and the limited accessibility is needed to be given to the employees of the company so that the unnecessary modification can never be made. The deployment of the AIS can be done through the implementation of the software like SAP.

Deployment of AIS

There are certain ethical issues those are needed to be concerned regarding the implementation of the AIS in the organization. One of the main ethical issue regarding the usage of the system is the unauthorized access in the system (Mirzaey,Jamshidi& Hojatpour,2017). In this case, the implementation of the user name and the password for handling the system can be done. This will also mitigate the chances of the data manipulation in the system (Patel,2015). The encryption of the data is needed to be done in a proper way so that the AIS can serve the purpose and can be useful for large number of organizations.

Another ethical issue regarding this process is breaching of the data and the degradation of the quality of the data. The breaching of data can manipulate the result and the degradation of the quality of the data can lead to the providing of the wrong information.

The AIS is a concept where the managing and processing of the data are done in order to acquire the information regarding the decision making process in the organization. The system can be manual and computerized (Komala, 2017). In the current trends the usage of the different computerized accounting system are doing well for providing the business solutions for the organization. There are different advantages of the computerized information system over the traditional AIS.

The analysis and interpretation from the discussion indicates that the proper implementation of the AIS will help the organization to manage the transactional data long with the proper management of the information (Mirzaey,Jamshidi& Hojatpour,2017). Apart form that the AIS will help the organization in the decision making process which will eventually lead to the betterment of the quality of the services provided by the company(Mirzaey,Jamshidi& Hojatpour,2017). The implementation of the computerized AIS will help to mitigate the error in the data and the communication between the different departments of the organization can be increased (Brandas, Megan & Didraga,2015). However, there are some ethical issues related to the usage of the AIS. Those issues can be resolved using the proper tools and security measures.

The significance of the application of the AIS can be found out from the discussion (Mirzaey,Jamshidi& Hojatpour,2017). The main findings of this paper includes the different aspects of the AIS along with the processes involved in the system (Mirzaey,Jamshidi& Hojatpour,2017). The advantages and the ethical issues along with the mitigation plan for those issues has been discussed in this context.

Contemporary Ethical Issues


The discussion is regarding the significance of the usage of the AIS in the organization. Different aspects of the AIS have been discussed in this context. The aspects have been identified from the review of the literature regarding the topic. The gap in the literature review has been identified. The transaction life cycle has been discussed. In this context the ethical issues has also been discussed. It can be said from the above discussion that the usage of the AIS can be beneficial for the organization and there are certain advantages of using the computerized AIS over manual AIS.


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