Digital Prosperity Understanding the Economic Benefits

Question: Discuss about the Digital Prosperityfor Understanding the Economic Benefits Answer: Introduction Technology industries are characterized by their sophisticated computing control and massive data storage space capacity, enhancing the production of information by combining diverse views of the entity, adding to its competitive advantage increase. Because of the need to transform the economy into figures, accounting has been the key tool in the process and has been applied more efficiently in this process and is issuing appropriate and explicit information for all interested parties. More so the expansion of technology and increased usage of the internet have enhanced new and fast solutions to accountancy and more so cloud accounting solutions. However, internet shared projects, blogs, content sites, social networking sites, online game sites, and online social networks pose accounting challenges in accounting. Challenges of Accounting in Global Organizations The main challenges to the technology industry accounting are business process management, mobile tools, technology of cloud computing, business intelligence, and the enterprise architecture aspect and its application integration. Cloud computing emerged not long ago as one of the major technologies for entities to adopt. It accommodates a wide collection of technologies that are simply looked at as the services facilitated by internet and technology, software and hardware, that maintain them. Like accounting currently, focuses on the current issues to present managers and industry leaders the opportunity to scrutinize and optimize business processes. According to the study conducted by (Atkinson, R, and McKay, A. 2007), the accounting progress has transformed to the era of intelligence and cloud accounting, which involves the current element of technology in business activities which offer the capability to deliver real-time monitoring of business processes. Both platforms share con cepts such as business process, business transactions, and proceedings but with diverse views, while accounting aims at identification, measurement, and communication of economic data to management. In the study of (Bhimani, A. 2008), they found out that given the resources that entities apportion to implementation and maintenance of social media for the entity, management will demand proof of return on investment. However, the (Cinquini, L. and Tucci, A. 2007) showed that cloud computing had dominated most business areas, only that the accounting managers are doubtful about this latest phenomenon. While the study by (Burns, J., Ezzamel, M., and Scapens, R., 2009) concluded that some accountants consider online based accounting as the threat to business returns. Analysis of social media premeditated results is significant since social media platforms facilitate in shaping new products new inventions, develop consumer service, sales, and marketing initiatives. In the study of (Cinquini, L. and Tucci, A. 2007), the researchers concluded that, economically coherent managers will refer to the saying you can't manage what you can't measure' to their company's use of social media. However, the upcoming of the media comparative to conventional methods of communication has enhanced exploratory examination on public media assessment to subject whether conventional financial reports presentation metrics, such as stakeholder understanding, recall, and acquisition, can realistically measure public media premeditated outcomes Creating value is another major challenge in accounting for technology industries. The research conducted by (Burns, J. and Yazdifar, H., 2011) concluded that technology industries should aim at providing platforms for improving service delivery in departments to the company and the entity's departmental requirements. This has been hindered by the emergence of social media, which is thought to be taking a lot of time of the workers that could have been productive. In particular, accountants are interested in these aspects that not accurately captured in financial reports. Big Data Analytics is another challenge to accounting for technology firms. The challenges of big data analytics are; undertaking the required training to develop the necessary skills for initiating and enhancing data analysis activities and changing the current model of auditing to include the necessary auditing requirements. There is amorphous data varying in design, such as basic text, electronic emails, blogs, formatted articles, network explore logs, etc. such data need new techniques to capture, store and analyze data. The huge amounts and expansion of amorphous data swiftly defeat conventional solutions and requires new ways of handling. This kind of data is collected from new areas. Customary data administration processes are unable to cope with the inconsistent character of big data. New approaches put forward techniques to handle the diversity. The study conducted by (Cinquini, L. and Tucci, A. 2007) found out that, to produce higher profits, use of data analytics is a necessary element which enhances a competitive advantage for the entity. The organizations that do not consider data analytics fail in profitability in the long run since in data analytics is the only aspect where change easily occurs. The real value of data analytics is in transactional aspects and the management role. A big number of accounting companies have adopted a paperless company plan and started putting in place the required expertise and advanced solutions to realize this company purpose. Accepting a paperless policy brings more benefits to the firm too. Digitized records make possible for firms to use up-and-coming technology trends in particular mobile technology and cloud computing. New technology and advancements is another challenge in accounting for technology firms, Technology grows swiftly and emerges on media and in other areas. It implies that stakeholders at all levels require technology firms to enhance the implementation of this innovative technology. Accountants require the advanced software to handle the financial data too. However, this new and advanced software are not readily available. On the other hand, technology is currently changing at a high rate. Accountants should assess the economic significance every technology brings to establish if it is profitable to the company and when. In some instances, latest technology e.g. cloud, virtual computing, and mobile computing happen to be tools for practiced accounting managers who recognize their company's priorities. Given that each the institution differs, the technology value of new technology varies with the strategic objectives of each. Enterprise architecture is another challenge for technology industry accounting; it is one of the fundamental aspects that organizations should embody in their components, their associations to one another, including the environment and ideologies embracing its design and development. Accounting information systems must not work individually, however sufficiently incorporated with more information applications for them to become more successful. The study oc (Cinquini, L. and Tucci, A. 2007) concluded that technology companies should consider contemporary approaches when preparing and reporting financial data. The superior challenge with the approach is that it would take more time to accomplish with reporting activities. Successful establishment of an accounting information system relies on technology enhancement, though other scopes must be examined, like stakeholder dimensions, profit motive dimension, and the organizational magnitude Virtualization has shifted and expanded applications from personal computers to servers, to routers, and to firewalls. The virtualization concept provides an advanced level in control such applications than saving organization's resources. This means that the company's infrastructure should have superior servers, in addition to the current expenditure on personal computers. Virtual information centers involve most similar management roles that should be done in the objective server setting. The jobs have to be comprehensive to the cloud environment as well as incorporated into accessible processes. The other aspect is in compliance, audit, and implementation, including daily system administration in dealing with virtualized systems. Virtualization brings unique challenges which are difficult to address with conventional, not- technological particular solutions. Managing an increasing and complex web-based infrastructure, the available present infrastructure and relying on technology sets a weighty demand on staff resources restricted and specific. In addition to these complexities, technology companies still must deliver on the virtualization undertaking of condensed expenses and improved competence. Not to talk on the subject of getting the packed profit of virtualization investment made. Conclusively virtualization technology currently is a pillar to the continuing achievement and the efficient application of information technology advancements. It is imperative that Virtualization enhances extra vibrant data hub while improving virtualized cloud technology to be applied for further industry benefit. Many entities are effectively virtualizing and consolidating as activities go on growing steadfastly, most companies determine how to inspire stakeholder buoyancy and reduce threat even more in their activities and the software mass. The research of (Axelsson, B., Van Weele, A. and Wynstra, F., 2011) concluded that when virtualization technology is enhanced, the processes and decisions to keep an online system on track. Such solutions encompass the growth in the visibility of the application pile and sustaining infrastructure. Visibility should be manipulative, which is to say that you should clearly observe constituent resources and their associations in the virtual atmosphere. Information communications disruptive inventions Currently, that may enable the execution of real-time financial statement preparation, like company process administration, promoting real-time managing of enterprise processes that transmit pertinent financial or non-financial data from company activities to the stakeholders through mobile computing technology, allowing interested parties to instantly obtain the information published at any time and in any place; mobile computing, encouraging the immediate distribution of information amongst all stakeholders internally and externally need it to make well-versed decisions. The research conducted by (Bessant, J., Kaplinsky, R., and Lamming, R. 2012.) showed that trade intelligence, encouraging the production and delivering of extra focused and appropriate information of industry operations to policy makers enabling long-term forecast of the company goals and the administration and optimization of everyday business activities and project planning and project purpose integration, structuring and including diverse systems and the consequent data at hand in the company to allow real-time accounting statement production with extra significance to users. In the research conducted by William J, Kramer, Beth Jenkins and Roberts S. Katz, (2007) it indicated that the developments in ICT sector have been the pioneer and catalyst in addressing the accounting requirements for most organizations. This concurred with the study of (Arnold, N., 2013) which indicated that, technological innovation has accelerated the growth in accounting through software innovations, content development and mobile applications. This is considered a crucial factor in accounting and management effectiveness. However the challenge posed by the researchers is that of productivity when the relevant applications are used considering network applications by different users that share costs. There are diverse universe players involved in the use and application of networks. As a result it is crucial to involve key business strategies to improve productivity. Offer connectivity efficiently; enhance growth of accounting information and the accounting base. This is signifi cant in increasing the accountants opportunities in the sector. The study carried out by Dixon, R. 1998. Accounting for Strategic Management: a practical application. Long-range Planning, 31(2), 272-279 concluded that ICT development will continue to grow, and the most of the households will not shy away from spending on ICT. This means the costs of accessing streams of data will continue to fall in the future. Therefore the low income earners will take advantage of the expansion and growth in information communication technology to increase their incomes. This will facilitate the entry of entrepreneurs in the macro economy. This will in return lead to the demand of new hardware and make it expensive for accountants to manage. This will especially become true due to the emergency of new markets that are key elements in driving innovation. Conclusion These papers a comparison of global challenges of accounting for global technology industries and. It looks into multiple perspectives and complexities, in accounting. The paper presents modern and technical issues presently apprehensive with accounting for global technology for global firms. The article addresses the cloud accounting model from a business-oriented perspective but does not intend to establish economic impacts that are put forward by the approaching shift. The evolution of cloud technology is the beginning. It may grow to be an essential element for reshaping the veracity and understanding globalization as we identify it. When accountants give technology an opportunity to establish its value, the accounting career could in the end act as a global identical entity and transform businesses to efficiency levels. Innovations are key elements in developing the potential of technology organizations globally. However they pose a big challenge to accountants in developing software to accommodate the rapid advancement and growth in ICT, making it difficult for accountants to develop content regarding frameworks and policies too. Therefore it is important to develop inclusive models in the sector too to allow for product extension adapting and segmentation. This will be facilitated by the financial sector and the ICT sectors that need to collaborate in regard to the new developments. This will in turn expand the economic opportunities of a number of countries. References Atkinson, R, and McKay, A. 2007. Digital Prosperity: Understanding the economic benefits of the IT revolution (Washington DC: ITI Foundation) Bhimani, A. 2008. Strategic Finance. London, UK: Strategy Press. Bhimani, A. and Langfield-Smith, K. 2007. Formality the importance of financial and non-financial information in strategy development and implementation Management Accounting Research. 18(1), 3-31 Cinquini, L. and Tucci, A. 2007. Adoption of Strategic Management Accounting techniques strategy-driven"? Evidence from a survey. MAR 2007- Cost and Performance in Services and Operations, Trento (Italy) June 18-20 2007 Inventory Driven Costs, Harvard Business Review March, pp. 271-282 Child, J. 2005. Cooperative Strategy (Oxford University Press) Byrne, S.M., and Pierce, B. 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