Data Quality Issues for accounting Information Systems’ Implementation: Systems, Stakeholders and Organizational Factors

8/8/2019 Data Quality Issues for accounting Information Systems Implementation: Systems, Stakeholders and Organizational Factors

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Data Quality Issues for accountingData Quality Issues for accountingInformation Systems Implementation:Information Systems Implementation:

Systems, Stakeholders and OrganizationalSystems, Stakeholders and Organizational

FactorsFactors

Prepared by:Ruchir Joshi 06503878

Mayank Khulbe 06502908

Shishir Saxena 09609020

28-Sep-10 1Data quality issues for accounting information systems implementation: Systems, stakeholders, and organizational factors


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WHAT ISACCOUNTINGWHAT ISACCOUNTING

INFORMAT

ION SYSTE

M?INFORMAT

ION SYSTE

M? Being a subset of Management InformationSystem, its a system of records a business keeps

to maintain its accounting system.

Includes purchases, sales and other financialprocesses of the system.

AIS is responsible for providing timely

and accurate financial and statistical reports for

internal management decision making, and forexternal parties such as creditors, investors, and

regulatory and taxation authorities.



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THECURRENT SCENARIOTHECURRENT 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 onlineinformation is being utilized.

For achieving high qualityAIS, critical factors

have become an important topic of concern.



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STAKEHOLDERS IN DATASTAKEHOLDERS IN DATA

QUA

LIT

Y ST

UDIESQU

ALIT

Y ST

UDIESy Data producers- Those who create or collect

data for theAIS.

y Data Custodians-Those who design, develop

and operate theAISy Data Consumers-Those who use the

accounting information in their work activities.

y Data Managers- Responsible for managing the

entire data quality inAIS.



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AISWORKFLOWAISWORKFLOW

Data

Producers

DataConsumers

DataCustodians

Data Managers



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CRITICAL FACTORS IN DATACRITICAL FACTORS IN DATA

QUA

LIT

YQUA

LIT

Yy Much study has been conducted onAIS andfollowing critical factors were identified

affecting the data quality.

Role ofTop 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.



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CRITICAL FACTORS IN DATACRITICAL FACTORS IN DATA

QUA

LIT

YQUA

LIT

Y Employee/ Personnel Relations Supplier quality management

Performance evaluation and rewards (responsibility for DQ)

Manage change

External Factors

Evaluate Cost/ BenefitTradeoffs.

Audits

Internal Control (Systems, Process)

Input Control Customer focus

Continuous improvement.



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RELATIVE IMPORTANCE OFRELATIVE IMPORTANCE OF

CRIT

ICA

L FACT

ORSC

RIT

ICA

L FACT

ORS



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CRIT

ICA

L FACT

ORSC

RIT

ICA

L FACT

ORS



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CRIT

ICA

L FACT

ORSC

RIT

ICA

L FACT

ORSy Most of the authors identified Role of topmanagement and Data quality as the most

important critical factors.

y Managing change had the lowest score because

any change over weak underlying foundation

cant turn things in line.



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Data for the case studies in this research was collected from

multiple sources as it allows a broader range ofHistorical

Attitudinal

behavioural issues

provides a converging line of inquiry

there by construct validity can be achieved as it provide multiplemeasures of the same phenomena.

Data collection sources also includeMain source in-depth interviews with majorAIS stakeholders:

Position descriptions: explicit responsibilities of certain positions.

policy manualsorganizational structure charts : interrelationship among different

divisions.

training documents : training undertaken.

financial statements : general background information.

annual reports : general background information.

28-Sep-10 Data quality issues for accounting information systems implementation: Systems, stakeholders, and organizational factors 11

METHODOLOGYMETHODOLOGY


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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.


ANALYSISTECHNIQUESANALYSISTECHNIQUES


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QUOTATIONS USEDQUOTATIONS USED

y Used to illustrate the factors or sub-factors which could

assist in explanation building.

y Quotations from case study interviewees represented

Own opinions

Perceptions

Experiences regarding particular factors or situations.

Respondents true feelings and beliefs on certain issues.

y Therefore quotes have the potential to provide insights into

the respondentsy understanding of the phenomena.



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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


CASE STUDYCASE STUDY


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ORGANIZATIONORGANIZATION -- EE

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 groups accounting information.

Business units throughout the world have different entities

with their own local budgets and they run a separateanalysis in the software package for those divisions.



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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.


ANALYSIS FACTSANALYSIS FACTS


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Category Factors

Stakeholders

MeanInfo producer

Info

custodian

Info

userCFO Acc

Oficer

AIS

CharacteristicsNature of the IS 8 7 5 8 7

DQ

characteristics

DQ policies &

standards10 10 8 10 9.5

Internal control 10 6 5 10 7.75

Stakeholders

related factors

Information

supplier quality

management

8 7 10 10 8.75

DQ manager 5 5 6 8 6

Organizational

factors

Manage change 9 5 9 10 8.25

Evaluate

cost/benefit

tradeoffs

7 7 2 8 6

External

factorsExternal factors 9 5 4 7 6.25

Overall 8.10 6.52 7.32 8.14 7.50



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Findings ofCase EFindings ofCase E

y Data Quality regarded as a priority

Acts as early warning signals if a part of the business

looks like not performing as forecasted

y Input controls had been addressed as the most

important control

Case E transferred a substantial portion of its funds

electronically



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y No formal performance evaluation or rewardsfor employees data quality control activities

Employed well-trained and experienced personnel to

prevent DQ problems

DQ requirement as part of the job description forthe appropriate position

y Employees rated as performing in an above-average manner were given opportunities forpromotion



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y Day to day implementation responsibility restedwith the people at the front end

y Timing pressure from each of the information

customers, both internal and external

y No DQ manager position

y In order to manage the quality of data fromsuppliers Case E established a position calledaccount relationship manager



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Account Relationship ManagerAccount Relationship Manager

y The raw data supplier was the data entryperson as they inputted raw data into thesystem

y Account Relationship Manager had all thedetails needed and did all the communicationbetween the technical staff and clients

y They make sure the clients are inputtingthe correct information into the system tomake the system work correctly



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CONCLUSIONCONCLUSION

y Systems, Stakeholders and organizationalfactors impacts on data quality of accountinginformation systems

y Explored the issues related to accountinginformation systems implementation

y

Different stakeholders of the systems and dataquality controls need to work together toensure the data quality inAIS



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Key Learning'sKey Learning's

y Competent personnel is as important as thesuitable system

y

Input control is the most important control

y DQ manager functions should be incorporatedinto job functions for DQ inAIS

y For a successfulAIS implementation attentionshould be paid to both systems andorganizational factors



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Thank YouThank You

Queries ???


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Data Quality Issues for accounting Information Systems’ Implementation: Systems, Stakeholders and Organizational Factors