The selected article has been written by Andreas I. Nicolaou of Bowling Green State University. Here we are traveling to critically analyse the article, stressing upon its aims, hypothesis, consequences, research methodological analysis, trying techniques, and its impacts on industrial tendencies and public presentation. We shall besides turn to the demand and importance of this article, highlight its strengths and failings, discourse the deductions, and suggest betterments wherever possible. We shall besides compare this essay with the modern twenty-four hours tendencies and researches traveling on in the specific niche. The organisation of this essay is outlined in the undermentioned mode, we start with an debut to the writer and his background, followed by a outline of the article, traveling on we shall include a thorough critical treatment based upon its aims, jobs, premises, informations aggregation and analysis, illations and their significance, part to the field, the manner of presentation and deepness of research. This will be followed by direction accounting position of the paper and the practicality and deductions of this research paper on the foresaid subject. We shall reason while supplying our methodological analysis that we have pursued and the mentions used in the manner.
About the writer
Andreas I. Nicolaou is a professor at the Department of Accounting and Management Information Systems at the Bowling Green State University ( BGSU ) . He presently delivers talks on Accounting Information Systems ( Basics and Advanced ) , Accounting for executives and seminar on Professional Ethics. Nicolaou is a celebrated research worker and has published 2 books, several research paper and still more publications in diaries, magazines and other resources. His chief focal point of research remains the Information systems and usage of engineering to unleash the potency of information exchange in organisations. Nicolaou has demonstrated his abilities in assorted Fieldss including Data Exchange, Financial coverage, Enterprise Resource Planning, Management Information Systems, Management accounting, Database direction systems, Information System Development schemes, and Value added revenue enhancement to call merely a few.
A few words about his educational background, Nicolaou received his Bachelor of Science in Business Administration in 1981 from the Athens University of Economics and Business, Greece. He so completed his Maestro of Humanistic disciplines in Accountancy from the Southern Illinois University at Carbondale in 1983. Nicolaou was awarded his Ph.D. in Accounting Information Systems from the same in 1993.
Earlier traveling as an associate professor at the Bowling Green University in autumn 2000, Nicolaou served as an helper professor at the University of Piraeus, Greece and besides as an Assistant Professor at Morgan State University. He had besides been a visiting professor at the University of Cyprus, Greece and Adjunct Assistant professor at the University of Maryland in 1996.
Introduction and overview of the Article
The paper under treatment focuses upon the usage of cost direction systems, deduction and application of JIT systems in fabrication and presenting systems, and usage of EDI in concurrence to bring forth better efficiency in execution of fabrication scheme and effectivity of cost direction systems.
The paper tests the declared hypothesis that the perceptual experience of Cost Management System effectivity is positively associated with the extent of complementarities between the usage of Just In Time/Electronic Data Interchange systems and range of Cost direction in operational determination devising.
The writer has used a trying frame of 612 organisations that used the JIT system in either in the whole production system or in the bringing procedure merely. He has farther categorized his happening on a binary variable that the JIT is farther supported with EDI system or non. Using get offing to happen replies to their specifically designed questionnaire, he received a 20 % response rate and based his decisions on the responses that he got.
The research variables were “ CMS Scope ” , “ CMS effectivity ” , “ usage of “ JIT ” fabrication techniques ” , and “ usage of EDI systems ” . The writer used arrested development analysis to happen out the relationship between these variables. The arrested development theoretical account can be outlined through the undermentioned equation.
CMS-EFF = b0 + b1 CMS-SCOPE + b2JIT +b3EDI +b4 CMS-SCOPE*JIT*EDI + vitamin E
The writer used assorted techniques for proving the steps utilizing cogency and dependability trials calling concept cogency, internal consistence of steps, and chief constituent analysis. The full testing process revealed that the input informations was secure and valid and could be used to be entered in the theoretical account.
The consequences were supportive of the first premise of positive association between the usage of JIT/EDI systems and the CMS range. This indicated that the complementary usage of CMS for determination devising procedure along with the usage of JIT and EDI systems ( in procurance ) was associated with the higher degree of effectivity of Cost Management System.
The Research Topic: Relevance, Importance and Need
The concern today is go throughing through an epoch of development where the whole concern construct in altering its dimensions. The whole concern procedures get downing through procurance, research and development, production, selling and distribution are traveling through this revolution. The basic driver of this alteration is engineering. The raising of Information Systems and their increased usage in direction and planning is a hot subject today. Assorted schools of ideas exist on the usage, benefits and deduction of these direction information systems. These systems are usually associated with immense initial capital layouts, whole concern transforms and sometimes a complete alteration of the concern nucleus competence. The concerns have been reported to seeking to travel through a concern reengineering procedure to be able to get by with the turning demand of engineering and remain alive in the race of accomplishments.
Merely In Time ( JIT ) systems, Enterprise Resource Planners ( ERP ) , Accounting Information Systems ( AIS ) , Cost Management Systems ( CMS ) and Electronic Data Interchange ( EDI ) are merely technological tools to unleash the values. Whatever possibly, there are two ways to accommodate to these technological instruments:
A: To modify or to implement the tool or engineering in line with your concern scheme and determination devising procedure ( modify to your demands )
Bacillus: To modify your vision to fit the tools available to be able to utilize them.
Yet, there is a clear consensus that the Technological systems and the concern scheme demand to be in line with each other to unleash the maximal possible offered by these information systems and tool.
Sing this background this article has been an first-class part to the universe of concern, particularly of import to those who pursue their callings in project executions of Management Information System, specifically cost direction systems. The organisations involved in execution, whether they are the clients or the sellers, need to stress on the construct that the applied system must be supportive to the demand of the concern scheme and contribute towards easiness and act as an informational gateway to strategic and operational determinations.
Talking on grass-root degree the addressed engineerings, CMS, EDI, JIT along with direction and cost accounting, and the fabrication scheme is a hot subject in the MIS sphere. There are many benefits said to be associated with the deductions of these systems that include better direction, better information spread, immense cost nest eggs, and better client service which leads to better quality.
Therefore this article can be termed as a utile and relevant one and can profit its mark readers. Surveies reveal that in most of instances the ground behind the failure of Management Information Systems is non their bad quality but is in fact the mismatch between the range of these systems and the demands of the organisation or the section where they have been implemented. Thus the hypothesis statement that addresses the perceptual experience of the CMS as an effectual tool if the CMS/JIT/EDI is in line with the concern scheme appears to hold been rationally chosen.
The organisation and aim of the article are a spot confounding to general readers as they can non associate to the context, the linguistic communication being excessively complex and proficient. The writer possibly should hold phrased his research aims and hypothesis in a more simpler and apprehensible manner to do his mark audience for the article comparatively bigger.
Though the writer has non made any important premises yet there are a few which need to be addressed. First, despite a response rate of 20 % he has gone frontward with the research which could hold resulted in a response prejudice. Second he has studied all variable at a individual point of clip that farther bounds the range of the research. Despite these two premises or restrictions, the article is a meaningful part to the universe of Cost Management Systems.
Background Theories and Hypothesis
MIS and CMS the subjects under treatment have been addressed often in assorted research documents and have been an option which offers concern research from a comparatively new, of import and effectual point of position, and this is the ground why there is so many literature and publication ‘s nowadays on the subjects. Yet, despite so strict research conducted and published, the MIS execution, its tantrum and other related subjects have non yet been good saturated. The big figure of failures may be a large ground behind that but there are other grounds which include arguments on short seasonal life of technological tools and package, United Nations needed excess outgo involved with them, hazard involved in execution and the opposition, behavioural and cultural facets within the organisation traveling through the procedure are some of the subjects which are a changeless beginning of heat among the participants of argument.
In this facet the writer has highlighted the sidelong information processing construct ( Dertouzos and Hayes ) , importance of Information Systems as a cost salvaging tool ( Cooper and Slagmulder ) , the accent of strategic direction of costs ( Bromwich, Shank and Govindarajan, Simons ) . Furthermore the writer has besides pointed out recent developments in accounting tendencies and surveies, design of information systems for cost control and direction, the impact of fabricating scheme on direction of costs, and the usage of cost direction systems as a support to fabrication scheme.
His literature reappraisal is non really much thorough, as it does n’t dig deeper into the theories, and skips some of the major parts besides. Furthermore his literature reappraisal is non reasonably organized hence a hard undertaking for a general reader ( who does n’t understand a batch about direction information systems and the related nomenclature ) to associate to the construct traveling afoot. But the mentions and surveies that he has pointed to are relevant to the proceedings of the paper. He has based his hypothesis on the literacy reappraisal and it has helped him to come up with concise statement of the job.
Data Collection and Analysis
The writer sampled 604 organisations through seeking SEC online database which contains one-year studies and other related material. SEC database is reported to hold a immense figure of registered and listed companies and their information which is relevant to SEC. He has searched this database for a clip period tilting upon 10 old ages and seeking for related keyword in the paperss that are available on SEC database, and so he has used certain filters to contract down his focal point of research.
There are a figure of issues related to the sampling that he has used. First of wholly he has limited his focal point to companies registered within the United States, so has ignored the forms which can be different in the other parts of universe. The Eastern, Asian, Russian and Chinese civilizations can be a spot different towards the perceptual experience of these Information Systems and their benefits. The demographics and educational background of directors in these countries are significantly different than the 1s working within US and they might hold a wholly different position on the issue. This implies that the survey is merely somewhat relevant to other markets, and a sampling prejudice exists if he claims that the article addresses all the major markets of the universe.
Second seeking based on studies and paperss does non stand excessively much valid, because there possibly cases that either smaller companies, or such organisations which are n’t listed on the SEC database may hold used these technological tools, and may hold their ain point of position about the issue.
Third he has attributed the 80 % non response rate towards denials due to miss of clip or company policies or non bringings, but all these grounds of non response when added up count up to 11 % of the mark respondents, he is soundless about the staying 69 % , and it arises a inquiry that why did n’t they take to answer. Where there is a opportunity that there may be similar grounds for non response, there is besides a major opportunity that they may hold denied response because either they thought of IS as a beginning of outgo and concern, or they may hold wanted to maintain their positions to them because they thought that if their part is of no usage if they do n’t hold with the purpose of the writer.
Here although the writer tested the informations to follow out that whether the non response rate has resulted in a sampling prejudice, and found that it had n’t, but yet one can indicate out that there may be some concealed grounds behind these non responses.
Refering the analysis methodological analysis and techniques, the writer has done this portion wonderfully, he has merely used the relevant theories and has used those steps and analytical methods which do n’t project an consequence on the quality of research, the paper reveals that he has ever adapted disciplinary methods whenever his information was non in conformity with the prescribed informations signifier required with a peculiar signifier of theoretical account. The writer holding long term experience as a research worker and as a professor can be taken as an authorization to analytical methods and I do n’t believe that there is the slightest opportunity that he has used hapless analytical techniques. The writer has used a arrested development theoretical account to prove for the coefficients of strength for assorted relationships and has good interpreted the consequences. It is apparent that no effort has been made to writhe the consequences to the writer ‘s pick. He has remained indifferent through the procedure and has analyzed and presented what the information has supported, he has n’t made a individual effort to pull strings any determination or informations portion.
The Findings and Relation to recent tendencies
The writer tested the hypothesis statement by appraisal of arrested development theoretical account of CMS effectivity on the interaction between CMS range and usage of JIT/EDI systems. The consequences supported the aforementioned hypothesis statement in general. The information provided grounds that there is a important positive relation among the CMS effectivity and the perceptual experience of range of CMS that whether it is in line with the concern scheme or non, along with the usage of JIT/EDI systems.
The consequences of the research are rather meaningful which really have provided a clear cogent evidence of importance of design of cost direction systems and the related tools so that they support the overall strategic planning and operation determination doing procedure on an operational footing. This is an of import construct in the field of information systems and has pointed out a new dimension in the execution stage of direction information systems ; the research has suggested that this is one of the most of import facets of successful execution of information system, which adds value to the overall operations of the organisation. Specifically speaking about fabrication scheme where costs are a important variable, thanks to the economic recession, low disposable incomes and terrible competition that exists in our markets at this clip. This implies that the findings of this research ca n’t be ignored as they can move as a competitory arm for the fabrication section of any organisation, if the construct is successful integrated into the cost direction systems implemented.
The research has besides posed a possible issue behind the failure rates of Information system executions, which were touching up to 80 % worldwide in the old decennary although it has now resonated near 60 % at present but this is still a failure rate that needs attending. This has been a important discouraging factor when companies undergo the determination stage of execution of MIS systems because of the immense costs involved and the needed human capital, transmutation of aims and schemes and concern procedure rhenium technology at certain times.
Overall Presentation of the subject
Taking a expression on presentation manner, the article has been organized in a logical manner but has non addressed the issue traveling into the basal degree. He has non emphasized much about the background and has non discussed the deductions of the paper up to the degree which he should hold discussed. The aims are rather proficient and the reader has to be good cognizant of background researches and subject to derive from the article otherwise it will be an arrant confusion. That ‘s why this article seems to turn to merely those who are technologically adapted and groomed and can associate to the implicit in constructs. It would turn out a hard undertaking for those to understand who have a pure concern background and they do n’t hold adequate consciousness about technological progresss and the nomenclature.
Deductions for Management Accounting
The article decidedly has a position of direction accounting. The overall subject of the article has really been direction accounting, as the writer has based his research on cost direction and stock list control mechanisms.
The article discusses the impacts of cost direction systems on the fabrication costs, which he has discussed in footings of value add-on and value concatenation. Manufacturing costs control systems and mechanisms are some of ingredients of direction accounting and a portion of the houses overall value concatenation. The nutriment of a house really stands upon its cost direction system because net incomes can be handled from two poles, either through the pricing pole or through the cost pole. In today ‘s market, it ‘s harder to conceive of covering your inefficiencies in cost control through bear downing higher monetary values ; we are left with merely one manner of harvesting greater net incomes or in other footings making value that is control of costs.
As discussed, the costs can be controlled through an efficient fabrication procedure which is cost economy, and this can be achieved through implementing the aforesaid engineerings, i.e. JIT, EDI, and CMS at each and every degree of fabricating procedure. The article discusses the factors through which these systems can be more effectual and a beginning of part in value add-on in a house. This suggests that the research paper has besides a direction accounting dimension, and it is moderately of import and relevant in the context.
The paper besides opens a new door to research, that how should the JIT systems and CMS be tailored that they non merely run into the strategic maps of the organisations, but besides cater to the demands of direction accounting map as the houses strive upon this map, direction accounting is possibly an of import competitory tool which makes successful houses distinctive from those who are non that much successful.
Practical utility of research findings
Findingss of this research documents are rather practical and are non merely theoretical. The research suggests that the usage of JIT and EDI can be significantly helpful in a house ‘s strategic procedure and determination procedure in twenty-four hours to twenty-four hours operations. The research besides suggests that the usage of a CMS to back up fabrication schemes and operations is a utile tool and can move as a competitory arm in the modern epoch of competition.
The research has concluded that the CMS effectivity depends to the range of the usage of CMS. This means that the perceptual experiences of effectivity of CMS in a house indicated that whether the CMS efficaciously supports the schemes and helps in the determination doing procedure or non. It besides indicates that CMS is an effectual tool which really provides relevant information which is utile in the strategic planning particularly fabricating strategic planning. It was noted that if the design and construction of the CMS was harmonizing to the fabricating scheme of the house, usage of complementary systems, that as JIT and EDI besides proved rather effectual.
Deduction for the hereafter of Management Accounting
One can be bold plenty to reason organize all this research and background that is provided, that direction accounting is besides traveling to take a bend as engineering impacts direction accounting systems. This implies that the direction accounting will now be done in a more proficient manner, in a more aligned manner, in a more balanced attack that matches the fabrication scheme of the house. This will take to better integrating within assorted sections of the house and it will take to superior public presentation due to be decrease. Management accounting has been functioning as a tool to increase net incomes since long, but it has yet to develop into a major tool. The JIT/EDI will be an built-in portion of direction accounting in future and it will to a great extent trust upon these systems as discussed above these systems cast a really positive impact on the efficiency of cost direction systems, which is a map of direction accounting. Thus direction accounting will function as a tool to value add-on which will take to an addition in its demand and importance.
Approach, Learning and Knowledge Value Addition
I have used a measure by measure attack to analyse this article, and have followed the organisation of the original article. I have tried to cover with this article without any prejudice, giving equal importance to its strengths and failings, and proposing betterments wherever possible. I have addressed the article from a double point of position, both from a technological and accounting point of position. My attack to analyse this article was based upon strategic benefits, and a top direction point of position in footings of value add-on and job work outing attack, yet I have besides tried to delve to the operational degree at cases where I have deemed fit to make so. Furthermore, in the subdivisions where a position of methods and theories of concern research is more relevant I have switched to that position.
The full procedure of critical analysis of this paper has proved rather good in betterment of my cognition base. I have reviewed a batch of stuff on direction information systems, cost direction, cost control, stock list control and direction, yesteryear and present tendencies in the industry and future tendencies that are underway.
I had besides the chance to take a expression on the direction accounting tendencies and rules that are practical to the modern industry and the debut of engineering and information systems to prosecute direction accounting ends and aims. I have besides came across some concern research rules to which I am new and this will give me chance to further believe about them.
Overall the whole article has provided me a good penetration of theories of societal behaviour, information demands and strategic determination devising and has proved to be an first-class acquisition experience for me.
The Title of the Article
Coming to the rubric of the article, it is already a good one and outlines the intent and aim of the article rather efficaciously. If he would hold used the footings JIT, EDI or CMS, this would hold instead narrowed down the range of the article which would hold resulted in lower hunt consequences besides. Once once more, sing the hunt engine optimisation construct, the article rubric is relevant, effectual and good versed.
Improvements and Future Research
In this facet, I would wish to speak upon Research methodological analysis foremost. In my point of position it would hold been better if the writer would hold used some other sampling technique and frame which would hold led to more relevant respondent profile which will do the article broader and will increase its cogency mark. The writer should do the sample of at least 50 % of the companies where JIT/CMS/EDI has been of all time used implemented and analyze their positions and include their consequences either quantitatively or qualitatively.
The hereafter researches might include fiscal facets of the CMS alliance with corporate scheme, the successful ways of CMS execution, and usage of direction accounting with engineering to maximise profitableness.
