Information and Communication Technology Market Success To Succession

Questions: 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? Answers: 1. Introduction Information and communication technology has transformed significantly due to rapid growth of the Information technology. Thus this period is referred to as the Information age. The world is focusing on the development and progress of the information technology. The IT organizations have developed as a result of the operational activities and the organization has adapted to the dynamic environment in the organization. The information age can be divided into three major periods. They are the information age in which the main focus was on the hardware. The second stage of the phase focused on the development of software. The third phase identified a new factor in the organization. This is known as the wetware cost. It has been seen that the wetware cost is the highest in the organization. The paper has focused on the importance of wetware cost in the organization. Importance of Wet-ware cost In order to create value the company must convert its existing knowledge about the various activities of the organization into ideas that will be implemented by the organization. The resources of the organization can be divided into three categories. They are tangible assets, intangible assets and human resource (ConceicÃÅ'Â §aÃÅ'Æ’o, 2002). It has been referred by Silicon Valley that the three resources of the organization are hardware, software and wetware. Wet ware refers to the employee brainpower. It is also known as wet computers. The company derives value from the hardware and software but it can only rent its wetware (ConceicÃÅ'Â §aÃÅ'Æ’o, 2000). Wet ware is considered as a private property of the individual employees. The employees can carry it to another firm which it has chosen. The managers have to find out ways to convert the knowledge contained by the employee wetware into software. Wetware cost can be defined as the indirect costs that are required to make the users sufficiently knowledgeable so that they are aware of the ways to use the IT hardware as well as the software and the cost incurred for using the system. The wet ware cost has to be controlled. If the wetware costs are not tamed or controlled then they will dominate the acquisition decisions of the IT industry (Inzelt Hilton, 1999). There is rising concern in the IT industry on the wet ware costs. The chilling effect of the IT industry can be avoided. There are numerous wet ware solutions that involve changes in the hardware and the software (Managerial Eco And Orgn Arc 4E, 2015; p-200-250). 2. Implementation of accounting Information System in an Organization Century Link, Inc is a multinational company based in USA. The company has headquartered in Monroe, Louisiana (Edgar.secdatabase.com, 2012). The company provides services of communication to business, residential area, government and wholesale customers. It is a member of SP 500 index (Turner Weickgenannt, 2013). It is the third largest telecommunication company in United States. Apart from providing communication to various organizations, it also provides long distance service. The company used accounting information system. It is helpful for the collection of data. It is also used in the processing of data (Telarus.com, 2015). After data processing, the information system will provide relevant data that can be used by the internal users as well as the external users. The accounting information system was used by the auditors for determining the fraud activities in the allocation of the expenses. The company has also identified anomalies in the entry of the accounting information ( news.centurylink.com, 2015). The accounting information system has served as a tool for the identification of the minute details in the accounting entry (Gelinas, Wheeler Dull, 2015). 3. Relevance of Wetware costs to the implementation Century Link has implemented accounting information system to enhance the security of the organization. The efficiency of processing accounting information has enhanced as a result of implementation of accounting information system (Hall, 2007). The accounting information is used as a tool to control the various financial functions like the process of budgeting, tax calculation, allocation of the resources and revenue recognition. The accounting information system has made the processing of information accurate. This has increased the efficiency of the organization. Operational efficiency has resulted in the identification of the relevant costs. Since all the costs and expenditures are equally important for the growth of the organization. The decision making f the organization is based on the major expenses and income of the organization. In thus context it can be said that wetware cost is important in the implementation of the accounting information system (Bray, 2011). There is hig h level of wetware cost involved with the use of new technologies in the organization. Innovation in the field of information technology has resulted in high wetware costs in the organization. Since, accounting information system is an innovative technology which will involve high wetware costs. The issues related to maintenance and communication technology requires high rate of wetware cost. Implementation of accounting information system in an organization requires high investment in the hardware, software and wetware (Terplan, 2015). Conclusion The concept of wetware cost has been enlightened in the present report. With the development of the information technology, wetware cost has found significant relevance. Innovation has resulted in the implementation of high level of technology which has resulted in the increase in wetware costs. Initially the focus of the information technology was on the development of hardware. But the recent development of technology has resulted in the shift from hardware development to software development and recently it has focused on wetware. This has resulted in the creation of favorable business for the organization. The development of software has helped in manipulation of data, analysis of data as well as communication of data. This has resulted in the development of an indirect cost which is known as wetware cost for enhancing the development of the organization. Wetware cost is considered as the dominant cost in IT system. Accounting Information system is a high level of technology whic h involves huge cost. This cost can be defined as wet ware costs. For the success of accounting information system in the organization, the firm has to invest in wetware costs. References Bray, D. (2011). Wetware: A Computer in Every Living Cell (pp. 50-200). Conceicao, P. (2000). Science, technology, and innovation policy. Westport, Conn.: Quorum Books. Conceicao, P. (2002). Knowledge for inclusive development. Westport, Conn.: Quorum Books. Edgar.secdatabase.com,. (2012). ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Retrieved 15 January 2015, from https://edgar.secdatabase.com/131/104746913002037/filing-main.htm Gelinas, U., Wheeler, P., Dull, R. (2015). Accounting Information Systems (pp. 20-50). Hall, J. (2007). Accounting information systems. Mason, OH: Thomson. Inzelt, A., Hilton, J. (1999). Technology transfer. Dordrecht: Kluwer Academic Publishers. Managerial Eco And Orgn Arc 4E. (2015) (pp. 200-250). news.centurylink.com,. (2015). centurylink. Retrieved 15 January 2015, from https://news.centurylink.com/index.php?s=43item=2452 Telarus.com,. (2015). CenturyLink Master Agent: Program Information, Promotions, and Network Coverage. Retrieved 15 January 2015, from https://www.telarus.com/carrier-information/centurylink.html Terplan, K. (2015). Telecom Operations Management Solutions with NetExpert (pp. 200-250). Turner, L., Weickgenannt, A. (2013). Accounting information systems. Hoboken, NJ: John Wiley and Sons.