STUDY UNIT 4

Technology concepts of hardware,

software, telecommunications,
database management and office
automation
In this study unit

HARDWARE SOFTWARE DATABASE TELE- OFFICE

MANAGEMENT COMMUNICATIONS AUTOMATION

1 Introduction
As indicated in previous study units, technology is revolutionising how work is done in
the office and organisational setting. The emergence of many technical devices to
support people’s lives indicates that information technology (IT) is developing rapidly
and becoming increasingly advanced in the current era of globalisation (Putri, Ardiany
& Meyla 2015). Providing accounting information for management and administration is
the basis for economic and executive decision-making in businesses as well as related
fields, such as state management agencies, business partnerships, and investors,
where an accounting information system (AIS) plays a significant role (Hien, Hung,
Huong, Ha, Trung, Thang 2020). One problem that often appears from IT development
is the reduced use of human labour. This is because work is being done by machines or
systems that have been programmed with very little error rate. Thus, work is done far
more effectively and efficiently than humans ever could. Even so, the role of accountants
cannot be eliminated within a company, as they are needed in preparing the AIS so that
the system is arranged under applicable regulations. For big companies, accounting
services are not needed as much as during the era before the development of IT;
nowadays, companies only need accountants as systems operators who will input
financial data, while data processing is computerised. Although ample workforce is
available, it cannot be absorbed by industries as the expertise of the workforce is not in
 accordance with what is needed. In this regard, government needs to provide education
or training for workers in order to obtain the required skills. Without exception, these
developments also penetrated the field of information and various aspects of
organisations’ activities (Putri et al 2015). Thus, to possess traditional accounting
knowledge is necessary; however, it is no longer sufficient for an accounting information
professional. This means that one must also understand information system design,
development, and application and be able to integrate these two bodies of knowledge
within complex organisation settings.

According to ACC_CIMA_E1 (2021), the emergence of new advancements in

technology allows organisations to do much more than they have in the past. However,
many organisations are struggling with the pace of change, constantly having to react
rather than lead with technological innovation. Several factors influence the extent and
the pace of technology adoption by organisations. These include:

• Technical feasibility
• Cost of developing, implementing and maintaining the new technology
• Economic benefits of the new technology
• Availability of labour skills to implement and use the new technology
• Regulatory and social acceptance

By implementing an up-to-date and flexible IT infrastructure, the organisation can

manage many of these factors – enabling technical feasibility, minimising costs and
maximising the economic benefit as well as having the appropriate labour skills present,
thus allowing them to embrace new technologies and opportunities they present.
Enabling transformation technology is no longer viewed mainly as a vehicle for improved
productivity but is seen as a key component of business transformation.

2 The role of accounting information professionals in business transformation

Nowadays, accountants in the digital economy and globalised world need digital
competence in soft skills more than technical or hard skills. It was found that accounting
students had sufficient digital competence, but were lacking in digital content creation
(Kongpradit, Teepjatupon & Iqbal 2020). Evidently, information currently available is
immeasurable and growing exponentially. Similarly, data processing is changing
radically. Thus, accounting is accompanied by constant technological innovations, and
in the latest wave of technology, software solutions are emerging and a large number of
routine tasks have been automated (Monteiro & Oliveira 2022).

However, while much of our daily working life has been digitalised, it is by no means
fully automated. Several issues such as programming cost, lack of skill, or project
complexity hinder the implementation of fully automated integrated solutions using
enterprise software or business process management systems. Hence, many tasks sub-
processes are still performed manually despite obvious automation potential. Robotic
processes automation (RPA) is a fairly new technology to automate these digital yet
manual tasks by only accessing the presentation layer of IT systems and imitating
human behaviour. Due to the novelty of this approach and the associated lack of
knowledge about the execution of RPA projects, up to 50% of RPA projects fail (Herm,
Janiesch, Steinbach & Wüllner 2021). Finance and accounting are leading areas for the
 implentation of RPA. Next to other technologies, RPA is a core driver of this digitalisation
of accounting (Langmann & Kokina 2021). In this regard, RPA is seen to be changing
the work of accountants and their role in their organisations’ digital transformation and
categorising the skills and competencies they will need to develop in order to
successfully work along their digital colleagues. It was revealed that accountants play
an important role as identifiers, explainers, trainers, sustainers and analysers of their
organisation’s automation initiatives. To prepare to undertake these five roles they will
need to acquire new technical skills (Kokina, Gilleran, Blanchette & Stoddard 2021).

The study conducted suggests that accounting students’ digital competence must be
promoted and advanced, both at curricula and institutional levels (Kongpradit,
Teepjatupon& Iqbal 2020). Thus, it was found that the current plans of accounting
degrees need to be changed urgently to ensure that accounting professionals acquire
the appropriate skills, such as knowledge of operational systems, linguistics and an open
mind, without which the future of accountants can be called into question in view of the
introduction of RPA and the consequent threats and opportunities this poses(Monteiro
Lopes, & Oliveira 2022).

In this regard, accounting information experts are required to integrate accounting

knowledge with a strategic perspective in order to facilitate the specification of
Information Systems (IS) requirements. Working as a member of a design development
and implementation group, it is crucial to understand IS development tools. If the
accounting information expert does not appreciate the technological possibilities and
constraints, the necessary assistance cannot be provided to management as they strive
to respond to a dynamic market environment (Dillard 2000).

3. Information system (IS)

An information system (IS) is a work system whose activities are devoted to capturing,
transmitting, storing, retrieving, manipulating and displaying information. A work system
is a system in which humans or machines perform processes and activities using
resources to produce specific products or services for customers. IS specifically aims to
support operations, management and decision-making. In support of the business
processes, IS reflects the way people interact with the information and communication
technology (ICT) that an organisation uses to manage the business.

Computerised information system (CIS) is a system that is composed of people and

computers that process or interpret information. The term is also sometimes used to
simply refer to a computer system with software installed. Traditional systems and office
practices quickly become employee mistakes and are doomed to extinction. The
introduction of new and seamless technologically advanced tools improve efficiency,
save on costs and enhance quality. For example, e-mail communication has taken the
place of memos, shared drives have kicked cabinet filing out the window and employee
timesheet stamping has been rendered useless by biometrics.

Academically, IS has a specific reference to the complementary networks of computer

hardware and software that people and organisations use to collect, filter, process,
create and distribute data. An emphasis is placed on an information system having a
definitive boundary, users, processors, storage, inputs, outputs and the aforementioned
 communication networks.

4 Components of information systems

The main components of IS are computer hardware, software, telecommunications and

databases. The hardware and software constitute information technology (IT), which is
organised in the operations and management of an organisation. Increasingly, computer
and storage services are delivered from the cloud from share facilities accessed over
telecommunications networks.

5. Difference between hardware and software

Hardware consists of all machinery and equipment in a computer system. The hardware
includes, among other devices, the keyboard, the screen, the printer and the “box” – the
computer or processing device itself. Input hardware consists of devices that allow
people to insert data into the computer in a format that the computer can use.

Computer hardware refers to the physical parts of a computer system. Computer

hardware can be classified in many ways. One way of classifying computer hardware is
to divide it into internal and external hardware devices. Internal hardware devices, also
referred to as components, include the motherboard, central processing unit (CPU),
random access memory (RAM), hard disk drive, and the BD/DVD/CD (optical disc) drive.
External hardware devices, also referred to as peripheral devices, include the monitor,
keyboard, mouse, speakers, printer and scanner.

Software consists of all the electronic instructions that tell the computer how to perform
a task. These instructions come from software developed in a format (such as CD, or
compact disk, or an internet download) that will be acceptable by a computer. An
example is a subscription cloud-based service such as Microsoft 365, formerly Office
365 (rebranded in 01 April 2020 and launched on 10 July 2017). Microsoft 365 is suitable
for individuals, businesses of all sizes and types, and educational institutions. Microsoft
365 is designed to help meet any organisation’s needs for robust security, reliability and
user productivity. It is a suite of various intelligent office applications (apps), such as
Word, Powerpoint, Excel, Outlook, Access Publisher Teams; cloud storage; and other
features such as OneDrive, and Teams that helps users to remain connected and gets
things done. These apps can be used across multiple operating systems like Windows,
macOS, Android, and iOS.

5.1 Acquisition or development of software

This refers to the acquisition of software already identified according to the specifications
set in the design stage.

Application software can be acquired by purchasing it from external developers or by

developing it in-house; this is usually referred to as the make-or-buy decision. However,
when it comes to software that serves more specialised needs, it might be better to
create new software that fits those specific needs, such as a financial system.

Off-the-shelf software is software that can be purchased commercially. It typically

requires some configuration so that the software package is tailored for the specific user.
 Thus, off-the-shelf software packages, such as word processors and anti-virus
packages, can be sold to many users. Off-the-shelf software may offer significant
savings in that the initial cost may be lower because the software development has been
spread over many customers. Moreover, the quality of the product is likely to be high
because the developers have been able to test and fix program bugs and glitches as
they are reported by users. However, it may happen that the software lacks certain
important features.

In-house developed software cannot be purchased commercially. As the name

indicates, the software needs to be developed in-house, which will result in a one-of-a-
kind program for a specific application. One advantage of having software developed in-
house is that the users can get exactly what they want. However, it takes time to develop
and test the new software and is usually more expensive than off-the-shelf options.

There are few circumstances when it makes sense to create software, as it can be very
expensive, and the benefits do not always justify the risks or costs.

5.2 Comparison of off-the-shelf software and in-house developed software

Factor Off-the-shelf (buy) In-house (developed)

Needs Might not match needs exactly Software should match your needs
exactly
Cost Cost of buying prewritten Higher cost
packages is lower
Time Time spent on development will be Can take years to develop a
drastically reduced, as the system to suits your needs
software can be acquired
straightaway
Quality Usually high quality Quality can vary depending on the
programming team
Competitive Other organisations can have the Good software can create a
advantage same software and the same ad- competitive advantage
vantage

6 Database management system

Evidently, the volume of data shared across enterprises is rapidly increasing, making it
difficult to manage. A database management system (DBMS) is a program or coIIection
of programs that enables a user and applications to store, modify, and extract
information from a database. Different types of DBMS exist, from a small system that
runs on a personal computer, to a giant system that runs on a mainframe. Microsoft
Access is an example of such a program.

Requests for information from a database are made in the form of a query, which is a
question. The set of rules for making queries is known as a query Ianguage. Each
different DBMS uses a different query language. One semi-standardised query language
is called SQL (structured query language). Complicated languages for managing
database systems are called fourth-generation languages or 4GLs.

The information from a database can be presented in various formats. Most DBMSs
 include a report writer program, including a graphics component, which enables a user
to obtain output data or information in the form of a report together with charts and
graphs. Examples of mainframe database applications include a computerised library
system, a booking reservation system and a computerised inventory system. This can
be seen in programs provided by SAP or Oracle.

Database management software (DMS) is one of the solutions that allows organisations
data accessibility and simplifies the process of document management. Thus, a
database software is a utility or software program developed to create, edit, store,
search, extract, automate, and maintain database files and records. DBMS helps users
to manage data in the form of fields, columns and tables. Simply defined, DBMS stores
data in an organised manner in a web application.

6.1 Benefits of using database software

A capable database helps organisations to enhance their access to heaps of data

generated regularly in a faster and more accurate manner. Database software is mainly
used in data analytics and presentation, for multi-user access controls, and data
security. In summary, the benefits are the following:

1. Reduced data redundancy

2. Efficient data integration
3. Consistent and compliant data
4. Data security
5. Backup and recovery
6. Privacy
7. Quicker decision-making

Database and telecommunication systems require a mix of hardware and software. As

such, acquiring hardware and software also applies to a database system and
telecommunications hardware and software (Booyse et al 2017).

7 Telecommunications

The Collins Dictionary defines telecommunications as the technology of sending signals

and messages over long distances using electronic equipment such as telephony, radio,
cable, television, and computer networks. On the other hand, a telecommunication
system is a special system for communicating at a distance where a device refers to the
exchange of information by an electronic and electrical medium over a significant
distance.

A modem connects to the internet and a router connects devices to WiFi. To wirelessly
connect multiple devices, both a modem and wireless router are needed. The modem
decodes and codes the information being sent and received through phone or fibre optic
lines. On the other hand, the router provides wireless network and additional safety
features. Modem and router combo (2-in-1) devices, known as wireless gateways, have
the technology incorporated to perform both.
 Most people use the terms modem and router interchangeably, thinking that they are
the same as telecommunications devices. This is because they look similar: rectangular
boxes with blinking lights that somehow connect to the internet. However, they are not
the same – they use different technologies and work differently.

Modem: Modem devices (modulator and demodulator) are networking devices that
communicate with the internet through a broadband connection provided by an internet
service provider (ISP). They are used to convert signals into the appropriate language
needed for information to travel through a telephone line or fibre optic cable, depending
on the type of internet used. They act as translators when sending or receiveing
information: translation of data from a digital signal to an analogue signal is called
modulation, while translation of data from an analogue signal to a digital signal is called
demodulation. Modems allow data to be transmitted via various communication
mediums owing to their being able to translate analogue electrical, light and radio signals
into digital signals. They are suitably wired for one device. There are three types of
modems: fibre, dial-up and ADSL. Wireless devices such as tablets and smartphones
will not be able to access the internet directly through a modem, as they need to connect
to a WiFi router that shares internet connection wirelessly.

Routers: Routers are commonly known as devices that give WiFi. They are small boxes
that help “route” traffic between all of the connected devices (wired or wireless) in a local
area network (LAN) and the internet. Thus, they manage all incoming and outgoing
information and direct it to the correct location. For example, if a computer and a printer
are connected to the router, a file can be printed without physically connecting to the
printer.

8 Mobile technologies

Code-division multiple access (CDMA) is the technology that underpins mobile

technology. It has developed rapidly over the last decade and increased the capability
of mobile technology. Developments in mobile technology have seen mobile phones
progress from basic call and message devices in the late 1980s and 1990s to the
smartphones and tablets we see today. These devices are more like computers than
telephones and this is reflected in the prices of the latest models.

According to ACC_CIMA_E1 (2021), the rapid development in the capability of mobile

technology has emerged at the same time as huge advances in internet technology, and
together the two technologies have been perfect partners. All aspects of modern life are
impacted by mobile technology, with major industries being completely transformed or
new ones emerging, including:

• Newspapers – Physical sales of newspapers are in terminal decline. News is now

consumed via mobile devices and is live rather than being a record of yesterday’s
news. Newspaper companies have attempted to evolve to maintain a presence in
this mobile online world.

• Advertising – Closely linked with newspapers and other media, advertising is

being transformed. Large-scale mass advertising is in decline, with a growth in
 smarter, targeted adverts.

• Music – CDs were replaced by MP3s which were seen as the future, but have in
turn have been replaced by music streaming services like Spotify.

• Banking – Increasingly, people bank via mobile apps, designed for ease and
convenience. Consequently, the traditional high street branch continues to
decline.

• Socialising – Social media has transformed how people socialise and

communicate with friends using smartphones to post and tag and photograph their
every move.

• TV/Film – Video streaming services such as Netflix and Amazon Prime as well as
on-demand TV and video sites like YouTube are designed for mobile internet
technology and are transforming how we watch TV and films.

9 Office automation

Since the advent of the steam engine, work automation has disrupted and transformed
society. This has led to exponential human growth prosperity and innovation. Artificial
intelligence (IA) brings the third transformational event and, this time, it will affect more
white-collar than blue-collar roles. It will change what people do, how they do it and the
skills needed for future career success. It will be more important than ever for businesses
to develop change leadership strategies and educational systems to prepare for the
change in skills needed by industries (Beth 2021).

The evolution of new technologies, the recent financial crises, and the parallel change
in the behaviour and needs of customers are putting pressure on world economies and,
consequently, the business world. Based on new trends such as big data, robotic
developments and artificial Intelligence (AI), humanity and the business environment will
look for new opportunities to reduce their costs and increase their revenue through
efficiency and productivity. The environment for recruiting and retaining the best talent
is becoming increasingly competitive, and organisations that adopt automation of
manual and repetitive tasks will be able to provide alternative human resource
strategies, such as part-time work or flexible work weeks, that can attract a greater set
of qualified professionals (Monteiro Lopes & Oliveira 2022).

Whether it is downloading the accounting software or acquiring an app to help with

processes such as data reporting or screening applicants during hiring, automation is
being increasingly used in the workplace. Although people still need to be involved, the
reason for employers to automate data collection is that the manpower required to, for
instance, post to multiple job boards and then sift through hundreds, if not thousands of
unqualified applications received, is overwhelming, a waste of time and resources and,
ultimately, money, that companies cannot afford. By using screening questions,
recruiters can easily select higher-potential candidates that meet the basic
requirements. Once the unqualified and high-risk applicants are removed from
consideration, human interaction is essential. Therefore, using automation and
technology will not eliminate human interaction, but allows them to find top talent more
quickly and to focus on candidates who are most likely to succeed. However, it is also
argued that whilst office automation kills some jobs, it creates and promotes others. For
example, it promotes employment in software companies and computer manufacturers.

Definition: Many sources define office automation differently, but according to

dictionary.com, it means a method or system or electronic equipment, such as word
processors and computers, in the operation of an office. On the other hand, Collins
Dictionary refers to it as an introduction (to an organisation or business) of computer
machinery and software for the purposes of carrying out clerical work and office
procedures, amongst others. Thus, it refers to using computers and software to carry
out and help optimise clerical work and office procedures.

Aim: Office automation helps in optimising or automating office procedures. Whatever

the definition, the aim of automating office procedures is to reduce workloads for
humans, thus allowing for more creativity. In doing so, it uses computers and software
to carry out clerical work and other office automation for filing, documenting
correspondence, communication and many other office functions. In this regard, raw
data storage, electronic transfer and management of electronic business information
comprise the basic activities of an office automation system. For example, using cloud
computing (cloud) for online storage helps to store and share data throughout the office,
thus reducing the need for physical storage space. Moreover, by keeping everything in
digital format remotely, there is no risk of people breaking in and stealing.

Automation and automation technology (AT): Automation technologies (AT) allow

the production and sale of goods and services with no or minimum human involvement.
These include a wide range, such as:

• industrial robots
• service and social robots
• artificial intelligence
• vending machines
• ATMs
• kiosks
• chatboxes
• automated trading algorithms
• other technologies

The International Federation of Robotics reported that, in 2018 alone, the number of
newly installed industrial robots was 422 271, to reach a total of 2 439 543 operating
industrial robots. In addition, claims in recent studies are that 47% of jobs in the United
States (US) and in other countries are susceptible to computerisation, putting more fuel
into the fear engine that employees will become obsolete in a robotic society (Ivanov,
Khunumdzihiev & Webster 2020).

Automation technology characteristics: Every AT simultaneously has both

enhancement and substitution effects. The enhancement effect means that the adoption
of new technology allows the employees to perform better at their jobs and increase
 their productivity. On the other hand, through the substitution effect, the human workers
who were previously doing the same tasks are replaced. The massive implementation
of AT changes the nature of work employees perform, and creates expectations and
fear among employees that they may lose their jobs and be replaced. Furthermore, the
use of ATs raises concerns regarding what individuals, companies and social institutions
would do if the automation fears materialise into severe technological unemployment
(Ivanov et al 2020).

Origins of fear of automation and AT: This fear stems from how easily the employees
would be able to find a new job in the same or another industry, so that they do not find
themselves in a financially stressful situation. Employees would not fear automation if it
is directed not at substitution but at enhancement; a tool to achieve higher productivity
and greater personal well-being. However, although the fear of automation used to be
largely about losing jobs, currently there is resistance to AT based on concerns
regarding creating difficulties and sophisticated situations for humans. They fear that
they would lose jobs when mundane, repetitive tasks are increasingly replaced by AT
tools and technologies. This fear is increased by lack of knowledge about AT. It has
been established, for instance, that journalists consider the new technologies as
liberating rather than subordinating them.

Advantages of automation and AT: Although automation will substitute human

employees in the long run, AT and elimination of work should be embraced because
work is inherently detrimental and impedes humans flourishing and leading a meaningful
life. AT would have a positive impact on society not only by liberating humans from
repetitive , tedious, dangerous, and dirty jobs, but by providing new opportunities for
creating value for humans, improving life and their well-being in economic, health and
social terms.

9.1 Potential factors influencing the fear of automation

a. General perception of AT: people can have both positive and negative perceptions
about the role of AT in society. When AT has high perceived benefits for society as
a whole, companies and public institutions would be inclined to implement them.

b. Characteristics of AT as production factors compared to human employees:

From an economic point of view, AT is concerned with production factors. As such,
it has both advantages and disadvantages compared to human employees. For
example, ATs process information much faster than humans, can provide more
accurate information with fewer mistakes, are more relilable than humans and have
higher productivity and greater cost-efficiency. Some of the perceived
disadvantages of AT inlcude lack of creativity, less interactive than humans and
operating mostly in highly structrured/standard situations.

c. Self-image of human employees: Prior studies have indicated that the image
people have about themselves influences the way they behave, the products they
buy, and their attitude towards acceptance of new technologies. Characteristics of
human employees include innovativeness, professionalism and technical skills.

d. Demographic characteristics of human employees: Demographic characteristics

 have been found to influence perceptions towards AT such as robots. Statistics by
the International Labour Organisation (ILO) show that, globally, men dominate in
manufacturing, construction, and transport and storage, where industrial and
warehouse robots and autonomous vehicles would be introduced in future. On the
other hand, men also hold more managerial positions than women, which are less
automatable than operational level jobs. Women dominate in professions where
emotional intelligence and social skills are key requirements, which are more difficult
to automate. Job positions occupied by men seem at a greater risk of automation
than those occupied by women.

e. Job characteristics: The automability of a job position and its level within the
organisational structure of the company determine the probability of a job being
automated. At the current state of technological development, some tasks (such as
routine/repetitive tasks, calculations, information processing, moving objects) are
easier to automate than others (such as non-routine or tasks that require emotional
intelligence) through physical or cognitive automation. People whose jobs involve a
lot of personal interaction are less afraid of losing their jobs to ATs.

f. Work experience: An experienced person would be more confident that they

perform well (effectively and efficiently) on the job because of direct work experience
or overall accumulated work experience. Hence, they may not be so fearful of losing
their job to automation or may use this experience as a competitive advantage to
find a new job elsewhere.

g. Social influence: Social influence stemming from television, shows online, media,
posts in social media and blogs, and conversations with colleagues, friends and
relatives, among others, has been found to have an impact on peoples’s behaviour
and opinions about a vast range of topics, including AT. The information people are
exposed to at work, at home, with friends or online contributes to the formation of
specific attitudes toward technologies (positive or negative).

9.2 Solutions to automation fears

These are solutions to the threat and consequences of technology unemployment. They
can be divided into three groups depending on who has a responsibility to implement
them. These are individual, corporate and social.

Individual solution: This includes all those actions employees can undertake to
mitigate the negative consequences of automation on their employability. These can be
divided into three possible strategies, as follows:

a. Fight: This strategy encompasses action aimed at remaining competitive in the

labour market by improving their qualifications in order to perform their current jobs
better than AT or by learning how to use AT to be more productive in their current
jobs. This is achieved by utilising the enhancement effect of technology or fighting
the substitution effect.
b. Flight: Looking for a new job that will not be automated soon in the same or another
industry.
c. Passive: Avoid proactive behaviour, do nothing, and wait for the automation impact
 to unfold.

Corporate solution: This includes actions that companies can undertake to decrease
the fear and negative impact of automation on employment. For example, procedures
of ATs can evaluate and publicly announce the impact of AT on jobs. In that way, people
and governments would be familiar in advance with the likely effect of these technologies
in various industries. Similarly, companies that use ATs can evaluate and publicly
announce their impact on jobs before the technologies are adopted.

Social solution: This includes a set of economic and administrative actions of

governments and public institutions directed not at the automation fears of a specific
person but society as a whole. For example, government may provide free education to
everyone to improve their qualifications in order to be more productive and be able to
use AT effectively and efficiently, or it can provide free education only to those who have
lost their jobs due to automation (Ivanov, Khunumdzihiev & Webster 2020).

9.3 Functions of office automation software

These functions are:

a) Eliminating paperwork
b) Requiring less storage space
c) Minimising errors
d) Making data storage and retrieval easy
e) Allowing several people to access data
f) Retrieving information instantly
g) Eliminating data redundancy

9.4 Benefits of office automation

Regardless of the organisation’s size and their industry, businesses that have already
implemented full office automation systems may reap many benefits. But the feature that
cuts across is the ability to reduce manual efforts, save on time and store a large volume
of data. The tools assist in streamlining the daily administrative and management
practices, ensuring no delays and errors, and enhancing process visibility. This gives
administrators an upper hand at proactively spotting and dealing with bottlenecks.

Activity 4.1

Go to your e-tutor site and complete this activity.

How do you see office automation evolving five years from now and what do you think
could its impact be on the South African economy, currently and in the near future?

a. We have learnt that there are pros and cons in selecting in-house developed
software versus buying off-the-shelf software. Considering the technology
 concepts and software, which option would you consider a better option (in-
house or off-the-shelf) for a small-medium enterprise that would like to stay
relevant in an ever-changing digital environment?
Go to Discussion Forum 1 for study unit 4 and discuss this with your fellow
students.
b. We have learnt that the evolution of new technologies, the recent financial
crises, and the parallel change in the behaviour and needs of customers are
putting pressure on world economies and, consequently, the business world.
Based on new trends such as big data, robotic developments and artificial
intelligence (AI), humanity and the business environment will look for new
opportunities to reduce their costs and increase their revenue through efficiency
and productivity.
Go to Discussion Forum 2 for study unit 4 and discuss with your fellow students
the effects of office automation on accounting information professionals.

10 Summary

In summary, in this study unit we learnt that providing accounting information for
management and administration forms the basis of economic and executive decision-
making by business owners as well as related stakeholders, where the accounting
information system plays a significant role. Evidently, the volume of data shared across
enterprises is rapidly increasing, making it difficult to manage. In this regard, technology
is revolutionising how work is done in organisational settings and in offices. In support
of the business processes, an information system (IS) reflects the way people interact
with information and communication technology (ICT) that an organisation uses to
manage the business. Therefore, IS specifically aims at supporting operations,
management and decision-making. As a work system, its activities are devoted to
capturing, transmitting, storing, retrieving, manipulating and displaying information. A
computerised information system (CIS), on the other hand, is composed of people and
computers that process or interpret information. Database and telecommunication
systems require a mix of hardware and software. A database management system
(DBMS) is a program or coIIection of programs that enables a user and applications to
store, modify, and extract information from a database. Database software is used
mainly for data analytics and presentation, multi-user access controls, and data security.
Acquiring hardware and software also apply to a database system and
telecommunications hardware and software. Telecommunications is the technology of
sending signals and messages over long distances using electronic equipment by
telephony, radio, cable, television and computer networks, among others, using a
modem or a router or both. As computer hardware can be classified in many ways, one
way is to divide it into internal and external hardware devices. Application software can
be acquired by purchasing it from external developers or by developing it in-house; this
is usually referred to as the make-or-buy decision. All aspects of modern life are
impacted by mobile technology, with major industries being completely transformed or
new ones emerging. The rapid development in the capability of mobile technology has
emerged at the same time as huge advances in internet technology and, together, the
two technologies have been perfect partners. Automation is gradually replacing humans
to ensure data is generated regularly in a faster and more accurate manner, in other
words, putting people out of work. It comes with enhancement and substitution effects
for employees. In this regard, employees fear losing their jobs, especially in a situation
where they believe that they do not have a competitive advantage. Regardless of the
organisation’s size and their industry, businesses that have already implemented full
office automation systems may reap many benefits. However, it is also argued that whilst
office automation poses a threat to jobs, it creates and promotes jobs in other forms. For
example, it promotes employment in software companies and computer manufacturers.