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AIN1501/SU1/Act 1.1/SolStudy Unit 1 Discussion Forum
Activity Question Solutions
Accounting Information Systems in
Computer Environment
AIN1501
Semester 1
Activity 1.1
Department of Management Accounting
IMPORTANT INFORMATION
This tutorial letter contains important information
about your module.
, CONTENT
Page
1 INTRODUCTION .......................................................................................................................... 3
2 DISCUSSION FORUM .............................................................................................................. 3-4
2.1 QUESTION
2.1.1 EXPECTED RESPONSES
2.1.1.1 Advantages for centralisation
2.1.1.2 Advantages for an in-house
2.1.1.3 Advantages for outsourcing
2
, AIN1501/SU1/Act1.1/Sol
1 INTRODUCTION
Dear Student
Attached please find the suggested solutions for Study Unit 1 Discussion Forum Activities.
Going through and participating in these activities is compulsory, as they lead to the successful completion
of Assessment 1.
Assessment 1 comprises Study Units I -5 covering the following Part 1 and Topic 1 of the Module:
PART 1: INTRODUCTION TO INFORMATION SYSTEMS AND TECHNOLOGY CONCEPTS
TOPIC 1: BASIC INFORMATION SYSTEMS CONCEPTS
Please compare your answers with the following recommended and/or suggested solutions and adapt
them accordingly where necessary for e-Tutor Activity for:
STUDY UNIT 1: FUNDAMENTALS OF SYSTEMS AND INFORMATION SYSTEMS
2. DISCUSSION FORUM
2.1 QUESTION - Is your office supported by an in-house (on the premises) IS department or is the IS
department located at the head office (central point) or outsourced? Why do you think this is the case -
what could be the reason for each? If you are not currently employed, ask someone who is, about his or
her organisation.
2.1.1 EXPECTED RESPONSES
The IS department will have a clear chain of command.
2.1.1.1 Advantages for Centralisation
Communication improves in a centralized office where employees and managers can interact in person,
rather than communicating via telephone and e-mail.
a. Centralised sales and other company information system
b. Valuable broad marketing information
c. Ease of training
d. Centralised support to the users instead of many system
e. Data integrity is maximised due to a single location
f. Data redundancy is minimal as it is stored in together and not scattered across different places
g. The standardized procedures and better supervision in a centralized organization result in
improved quality of work. There are supervisors in each department who ensure that the outputs
are uniform and of high quality.
h. Reduced chances of security issues
i. Mutual understanding of objectives, goals, and values
j. Communication improves in a centralized office where employees and managers can interact in
person, rather than communicating via telephone and e-mail.
k. Reduced costs for IS departments
l. Quick implementation of decisions
3
, The following can be considered:
2.1.1.2 Advantages for an in-house IS
a. Better communication – face to face with developers is less burdensome
b. Full control of the team – internal team available at fingertips
c. Better understanding of company values
d. Well matched team – internal team is more involved than external contractor. Are more careful as
they are working for their own company (the company they belong). Selection of team done
internally
e. Working with trusted teams with outsourcing there is a risk of revealing company data and secrets.
2.1.1.3 Advantages for outsourcing
a. Reduction of hardware costs
b. Since it is in one place security measure around it is strengthened
c. Cheaper as it requires less power and maintenance
d. Better cost management (cost reduction by paying for what you have used) and
e. Reduce risk (risk management - assume and manage most of risk with specific industry knowledge,
especially security and compliance)
f. Can act as a backup when information is lost in various ways
g. Reduced labour costs (hiring and training IT can be very expensive
h. Getting access to trained, qualified, experienced and certified staff
i. Increased efficiency and competitiveness (Organisations which try to do IT services themselves
can have higher research and development costs and implementation time which are ultimately
passed to the customer
j. Quick implementation of new Technology (a quality IT organisation will have resources to start new
projects right away and quicker as they bring experience which might save money and time)
k. Stay focused on core business rather than being distracted by complex IT decisions
l. Level playing fields (small business cannot afford to match the in-house support services that the
companies maintain)
Good Luck!!!
Your Lecturers
UNISA 2022
4
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