Data Quality Issues For Accounting Information Systems' Implementation: Systems, Stakeholders and Organizational Factors

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Data Quality Issues for accounting

Information Systems’ Implementation:


Systems, Stakeholders and Organizational
Factors

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WHAT IS ACCOUNTING
INFORMATION SYSTEM?
 Being a subset of Management Information System,
it’s a system of records a business keeps to maintain
its accounting system.
 Includes purchases, sales and other financial
processes of the system.
 AIS is responsible for providing timely
and accurate financial and statistical reports for
internal management decision making, and for
external parties such as creditors, investors, and
regulatory and taxation authorities.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
THE CURRENT SCENARIO
 Due to increased complexity, the management of
organizations has much more focus on systematical
issues than previously required.
 Now a days more and more digital and online
information is being utilized.
 For achieving high quality AIS, critical factors have
become an important topic of concern.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
STAKEHOLDERS IN DATA QUALITY
STUDIES
• Data producers- Those who create or collect data for
the AIS.
• Data Custodians- Those who design, develop and
operate the AIS
• Data Consumers- Those who use the accounting
information in their work activities.
• Data Managers- Responsible for managing the entire
data quality in AIS.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
AIS WORKFLOW
Data
Custodians

Data Data
Producers Consumers

Data Managers
Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
CRITICAL FACTORS IN DATA
QUALITY
Much study has been conducted on AIS and
following critical factors were identified affecting the
data quality.
 Role of Top Management
 Data Quality policies and standards.
 Role of data quality and data quality manager
 Training
 Organizational Structure.
 Nature of Service, Product, Design
 Approaches (Control and Improvement) management processes.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
CRITICAL FACTORS IN DATA
QUALITY
 Employee/ Personnel Relations
 Supplier quality management
 Performance evaluation and rewards (responsibility for DQ)
 Manage change
 External Factors
 Evaluate Cost/ Benefit Tradeoffs.
 Audits
 Internal Control (Systems, Process)
 Input Control
 Customer focus
 Continuous improvement.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
RELATIVE IMPORTANCE OF
CRITICAL FACTORS

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
RELATIVE IMPORTANCE OF
CRITICAL FACTORS

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
RELATIVE IMPORTANCE OF
CRITICAL FACTORS
• Most of the authors identified Role of top
management and Data quality as the most important
critical factors.

• Managing change had the lowest score because any


change over weak underlying foundation can’t turn
things in line.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
METHODOLOGY
Data for the case studies in this research was collected from
multiple sources as it allows a broader range of
Historical
Attitudinal
behavioural issues
provides a converging line of inquiry
there by construct validity can be achieved as it provide multiple
measures of the same phenomena.
Data collection sources also include
Main source in-depth interviews with major AIS stakeholders:
Position descriptions: explicit responsibilities of certain positions.
policy manuals
organizational structure charts : interrelationship among different
divisions.
training documents : training undertaken.
financial statements : general background information.
annual reports : general background information.
Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
ANALYSIS TECHNIQUES
Interviews with the additional documents obtained from the case
study organization is then:

Transcribed

Entered into a software package for qualitative data analysis.

content analysis of those documents and interview transcripts

Material was coded and an INDEX TREE developed to aid in


categorizing and grouping.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
QUOTATIONS USED
• Used to illustrate the factors or sub-factors which could
assist in explanation building.
• Quotations from case study interviewees represented
 Own opinions
 Perceptions
 Experiences regarding particular factors or situations.
 Respondents’ true feelings and beliefs on certain issues.
• Therefore quotes have the potential to provide insights into
the respondents
• understanding of the phenomena.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
CASE STUDY
Overview of the company, its information systems,
and the data analysis of the case study is as follows
stakeholders that were interviewed :

 Data producers: CFO and accounting officer

 Data custodian: IT manager

 Data consumer: General user

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
ORGANIZATION - E
 An education and training infrastructure company
 Medium size organization with a one hundred staff.
 Partners with universities and professional education
providers to market and deliver their courses over the
Internet to students and organizations.
 Off the shelf commercial software package which
performs the group’s accounting information.
 Business units throughout the world have different
entities with their own local budgets and they run a
separate analysis in the software package for those
divisions.

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
ANALYSIS FACTS
Summary of cross stakeholders analysis
At the conclusion of the interviews with the
stakeholders, each of them was asked
to rate a list of factors, generated from the
literature review, on a ten point scale for the
importance of those factors, where

 10 (ten) represented extremely


important, and

 1 (one) was not important at all.


Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
Stakeholders

Info producer
Category Factors Info Info Mean
CFO Acc custodian user
Oficer
AIS
Nature of the IS 8 7 5 8 7
Characteristics
DQ DQ policies &
10 10 8 10 9.5
characteristics standards

Internal control 10 6 5 10 7.75

Information
Stakeholders’
supplier quality 8 7 10 10 8.75
related factors
management

DQ manager 5 5 6 8 6

Organizational
Manage change 9 5 9 10 8.25
factors
Evaluate
cost/benefit 7 7 2 8 6
tradeoffs
External
External factors 9 5 4 7 6.25
factors
Overall 8.10 6.52 7.32 8.14 7.50
Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
Findings of Case E
• Data Quality regarded as a priority

– Acts as early warning signals if a part of the business looks


like not performing as forecasted

• Input controls had been addressed as the most


important control

– Case E transferred a substantial portion of its funds


electronically
Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
Findings of Case E
• No formal performance evaluation or rewards for
employees’ data quality control activities

– Employed well-trained and experienced personnel to


prevent DQ problems

– DQ requirement as part of the job description for the


appropriate position

• Employees rated as performing in an above-average


manner were given opportunities for promotion

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
Findings of Case E
• Day to day implementation responsibility rested with
the people at the front end

• Timing pressure from each of the information


customers, both internal and external

• No DQ manager position

• In order to manage the quality of data from suppliers


Case E established a position called ‘account
relationship manager’
Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
Account Relationship Manager
• The raw data supplier was the data entry person as
they inputted raw data into the system

• Account Relationship Manager had all the details


needed and did all the communication between the
technical staff and clients

• They make sure the clients are inputting the


correct information into the system to make the
system work correctly

Data quality issues for accounting information systems’ implementation: Systems, stakeholders, and
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organizational factors
CONCLUSION
• Systems’, Stakeholders’ and organizational factors’
impacts on data quality of accounting information
systems

• Explored the issues related to accounting


information systems’ implementation

• Different stakeholders of the systems and data


quality controls need to work together to ensure the
data quality in AIS

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Key Learning's
• Competent personnel is as important as the suitable
system

• Input control is the most important control

• DQ manager functions should be incorporated into


job functions for DQ in AIS

• For a successful AIS implementation attention should


be paid to both systems and organizational factors
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Thank You

Queries ???

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