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Assessment of AIS Implementation
Organizational leaders are beginning to fathom the numerous benefits of the shift from manual accounting processes to automated accounting systems. Accounting Information Systems promise to appraise specific as well as collective effectiveness in achieving strategic and operational goals (Dillard, Yuthas, & Baudot, 2016). Large as well as small companies are actively embracing new AIS paradigms as a means for appraising effectiveness and accuracy of management functions (Uyar, Gungormus, & Kuzey, 2017). For instance, planning and controlling are highly impactful processes undertaken by management that determine how organizational leaders can engage in decision making that is favorable to the firm in the longer term (Dillard, Yuthas, & Baudot, 2016). AIS continues to take center stage as a component of a well functioning administrative system since it empowers organizational leaders to acquire the right financial information necessary for purposeful decision making (Moffitt et al., 2016). By looking at how Jordanian banks have implemented indigenous AIS projects, it is possible to identify factors that encourage AIS development and implementation.
AIS Implementation in the Jordanian Banking Sector
Technology adoption across the Arabian Peninsula is taking place at an enviable rate. In the region’s quest to modernize it financial services industry, the banking sector in Jordan has taken a proactive approach towards appraising their planning and control capabilities. According to Al-Fasfus and Shaqqour (2018), Jordanian commercial banks opted to invest significant capital into establishing AIS systems that could enhance their performance in the short as well as long term. However, the large size of capital investments as well as the associated high risks and very low returns on investment implied that the impact of AIS project implementation could not be measured in the short term. However, the study by Al-Fasfus and Shaqqour (2018) determined to extrapolate the effects of AIS application in credits and investment decisions as well as in executing planning and control functions.
The study was conducted after the AIS project was implemented successfully. The primary purpose of the research endeavor was to identify if a balance existed between production costs associated with the automated production of accounting information and the returns realized from the application of such information in decision making endeavors. It was found that the manner with which accounting information was employed determined how the wealth and resources of a society was employed (Moffitt et al., 2016). The accounting system was thus successful in appraising the performance of various administrative processes within banks and by extension, the Jordanian society. AIS enhances management effectiveness in achieving administrative processes’ targets which in turn appraised performance levels as indicated through the positive attainment of set objectives (Uyar, Gungormus, & Kuzey, 2017).
The implementation of the AIS project by Jordanian commercial banks was a worthwhile undertaking. Its positive impacts are bound to continue emerging in the longer term (Trigo, Belfo, & Estébanez, 2016). The fact that the Jordanian society is now served by a commercial financial services sector that is informed by a fully functional AIS apparatus is reason for economic optimism. The presence of an appropriate and efficient accounting system ensures that decision makers are furnished with accurate and necessary information critical for accurate planning and control.
Project implementation is basically a learning a curve. If I was the project manager for the AIS implementation process in the Jordanian commercial banking system, I believe I would have taken on the same trajectory. Firstly, engagements with stakeholders revealed that AIS was the best approach to take in identifying challenges banks encountered individually and as an industry. From the pilot projects, it emerged that information of AIS could be accurately employed to highlight solutions towards the quick resolution of problems facing the banking system (Trigo, Belfo, & Estébanez, 2016). For instance, making comparison between planned and actual budgeting forecasts using the automated process compelled administrators to analyze deviations and provide reasons for their occurrence.
The only constant thing within organizational environments is change. At times, the intention of leaders within organization is to institute far reaching reforms which inadvertently lead to friction (Pan & Seow, 2016). The application of accounting information works to smooth out incidences of organizational friction. The move from a manual accounting system to an automated one was resource intensive on numerous fronts (Uyar, Gungormus, & Kuzey, 2017). For instance, it demanded continuous training and development for all accounting staffs (Pan & Seow, 2016). Massive capital inlays with regard to automation of the accounting systems resulted in veiled pessimism amongst some of the initial change actors. I believe that better results could have been achieved if more resources were placed in the project planning phase so that stakeholder engagement was fully integrated in the process simplification phase.
It is evident that the stages in project development and implementation were followed in a conclusive manner. The study by Al-Fasfus and Shaqqour (2018) was systematic in nature. It began with stakeholder engagement before making process simplification a reality. Planning for acquisition was achieved within the specified timeframe enabling for project implementers to accurately tighten scope, commit resources, manage pro-actively, and work towards a common objective. As a result, the commercial banking industry in Jordan realized change at the same time which remains a significant win for the Jordanian society. The reviews and subsequent test by researchers are a good indication that AIS evaluation will continue into the longer term.
After looking at how Jordanian banks implemented their indigenous AIS projects, it is possible to identify factors that encouraged AIS development and implementation. The commercial banks desired to have better results coming out of their decision making endeavors. AIS promised accuracy and efficiency in decision making process which ultimately implied that the banking sector would be in a better position to control and plan for resources at hand.
Dillard, J., Yuthas, K., & Baudot, L. (2016). Dialogic framing of accounting information systems in social and environmental accounting domains: Lessons from, and for, microfinance. International Journal of Accounting Information Systems, 23, 14-27.
Moffitt, K. C., Richardson, V. J., Snow, N. M., Weisner, M. M., & Wood, D. A. (2016). Perspectives on past and future AIS research as the Journal of Information Systems turns thirty. Journal of Information Systems, 30(3), 157-171.
Pan, G., & Seow, P. S. (2016). Preparing accounting graduates for digital revolution: A critical review of information technology competencies and skills development. Journal of Education for Business, 91(3), 166-175.
Suleiman Al-Fasfus, F., & Fareed Shaqqour, O. (2018). The effect of accounting performance on accounting information systems, planning and controlling in Jordanian commercial banks-survey study. Academy of Accounting & Financial Studies Journal, 22(2).
Trigo, A., Belfo, F., & Estébanez, R. P. (2016). Accounting Information Systems: evolving towards a business process oriented accounting. Procedia Computer Science, 100, 987-994.
Uyar, A., Gungormus, A. H., & Kuzey, C. (2017). Impact of the accounting information system on corporate governance: Evidence from Turkish non-listed companies. Australasian Accounting, Business and Finance Journal, 11(1), 9-27.