Since financial reporting is a complex process, convoluted action was required to resolve this problem. The annuity technology group, along with the annuity business group came up with three possible solutions and conducted a high level requirements analysis and a cost benefit analysis to determine which solution to implement. The solutions analyzed were, do nothing and stay on the existing accounting system, go with a new accounting system designed and built by our Life Insurance partners, or build our own accounting engine. The requirements and cost benefit analysis took several months to complete and a final decision would not be made until 18 months after the initiation of this project. The end result of the requirements and cost benefit analysis concluded that it was most beneficial to our business partners to build our own accounting engine; however this was not the elected solution. Our suggestion to do nothing was not feasible; we were already facing resource issues for existing accounting problems. Additionally, through requirements analysis, we discovered that no future enhancements would be made to this old system, as the annuity business unit was the sole user of this system.
Early on, we were able to eliminate remaining with our existing accounting system as a reasonable solution. External pressure from our Life Insurance partners wanted us to commit to using their services. Life Insurance had designed and implemented an accounting system a few years ago that provided wonderful functionality. This system is being used by most of the enterprise although there is no corporate mandate requiring administration areas to use it. While the functionality of this system is quite detailed and impressive, it fails to meet all of the needs of the annuity business customers. Because the annuity business requirements were quite extensive, the life insurance group could not commit to the necessary enhancements that would be required to their system to satisfy annuity users. Because of these business requirements, we then conducted an extensive analysis to determine what Annuities IT could do to satisfy the business requirements. The analysis revealed that we could build our own accounting system for only 25% of the cost of using the life insurance system.
The Business plan on Business Analysis Assessment Assignment 2
Business Analysis & Assessment Assignment 2. Company names (and registered addresses) and industrial classification (product tree). International business Machines (NYSE: IBM) The company has global presence and is Headquartered: I should start by saying that according to the corporate website http://www.ibm.com, International Business Machines Corporation (IBM), was incorporated in June 1911, ...
With clearly documented analysis, many on the development team thought that the annuity technology solution was an easy sell. However, this was not the case. Negotiations between life insurance and annuities went on for months to persuade annuities to conform and join most of the enterprise in utilizing this new system. Some of the advantages that this new system could offer included using a centralized repository for accounts, account maintenance would not be needed for administration systems, and accounting would be streamlined and accurate for financial reporting. While the Annuities IT solution would provide the same advantages and meet the same financial reporting requirements, the biggest risk was not utilizing the centralized repository for accounts. After renegotiating the cost, eventually our annuity business partners elected to join the rest of the enterprise and utilize the life insurance solution.
Once the life insurance solution was elected as the alternative to solve the accounting dilemma, an action plan was developed for implementing the solution. The action plan involved the basic steps that are used for implementing technical solutions. The steps were programming, testing, delivery of software to the users, and training the users on the new software. Six months after the implementation of the life insurance accounting solution, the decision to utilize this system has been deemed a success. Daily MIS reports and weekly status meetings are used to as evaluation tools to monitor the success of the implementation. The daily MIS reports indicate successful transmission and processing of accounting files in addition to accounting errors.
The Term Paper on Accounting Software Decisions
Selecting Accounting Software is one of the most important and, potentially, one of the most costly decisions a business makes. The decision is important because if the right choice is made, internal control of most accounting functions will provide a lower risk of doing business. An accurate method of keeping track of the essential financial functions of the business also will result. However, ...
The weekly status meetings serve as a communication tool in which action items are assigned for follow up and updates to problems are discussed. While these evaluation tools are indications of a successful implementation, this project was also deemed successful mainly because perceptions were effectively managed throughout the project. McCall and Kaplan (1990) state that there are three types of outcomes that result from decisions: First, decisions form policies and strategies for the organization or the decision makers; second, decisions impacts the relationships of those involved or excluded from the decision process; and third, the success or failure of the implementation of the decision becomes a part of the decision maker’s track record. Since the annuity business unit has elected to utilize the life insurance accounting solution, this has now set a precedent for the entire enterprise. The life insurance accounting solution is the first accounting system that has been used by both life and annuities business unit. Now that the annuity business unit is on board, undoubtedly this will be used to push for electing this system as a corporate initiative.
Most likely, this accounting solution will become a corporate mandate and all business units will be expected to utilize this system. While a corporate mandate does have its advantages, such as additional funding for enhancements, this system is not a cure all for all business units. Significant modifications were required to the annuity business systems to migrate to this solution, likewise it should be expected that other business units would incur the same costs. Relationships between the annuity business and technical teams were strengthened during this accounting project. For problems that require simple action, often communication between the two groups does not exist which sometimes leads to bigger problems. However, because the accounting problem was much more complex and involved an outside business unit, communication was constant.
The Essay on Business Accounting
Businesses such as Toyota find accounting being a very critical aspect of their business life. Accounting involves recordings of the financial transactions for the business. The importance of accounting is that great that even if a business has one of the best products in the world it could still be faced to fail for simple things such as not enough investment, too high costs to produce the ...
The annuity business unit had to be a united front when meeting with the life insurance business unit. Additionally, since it was critical to have the buy in from both business and technology management, the decision making process for this problem was highly visible from the initiation of the project. Through constant communication and keeping all stakeholders involved throughout the decision making process, ownership in the decision was mutually shared and perceptions of outcomes were effectively managed. The success of the accounting project has become a positive force for all participants in the life insurance accounting project Management track records for all parties; life insurance, annuities business, and annuities technology. Two managers have been promoted to director positions after implementation. The annuities accounting problem was a complex problem that required convoluted action. Our evaluation tools are quite useful in helping us monitor and determine the success of the final decision, however it must be noted that effectively managing perceptions and expected outcomes throughout the decision making process was a critical factor in the success of this project.
Constant communication along with keeping all stakeholders involved in the decision making process allowed for equal ownership of the solution and helped to make the project successful. References McCall, M.W., & Kaplan, R.E. (1990).
Whatever it Takes. Upper Saddle, NJ: Pearson Custom..
