In: Accounting
Following are the three reasons according to me why company changes their existing AIS:-
1) Better Intergration
Generally, one major reason why a company changes its existing AIS is better integration in the new system. For a big organisation, it is very important to keep all the data integrated with each other. This will help the company to keep their data upto date, can access whenever required, can submit data to regulators whenever required and so many other benefits.
2) A larger database
An AIS must have a database structure in place.
Generally, the type of data included in an AIS may consist of the following:
It is possible that the old AIS is not having a higher database to handle all such functions together and so company changes its existing AIS.
3) Security concerns
Generally, the internal controls of an AIS are the security
measures it contains to protect sensitive data. These can be
passwords, biometric entries, id card entries etc. Also, it must
have proper system in place to safeguard their highly confidential
data. It is possible that in their old AIS, there are certain
security concerns and due to which their data is getting leaked
which leads to high losses. So, they may go for change in existing
AIS.