Week 10 assignment AIS change failure

AIS Implementation Failure Student Name University Course Professor Name Date AIS Implementation Failure The accounting information system (AIS) is an expansive field covering a wide range of topics. Many studies on this subject pay a disproportionate amount of attention to the benefits of these systems (Kocsis, 1). Few, if any, focus on the successes and failures of the AIS implementation. Interestingly, most recent efforts in AIS systems implementation involve enterprise resource planning (ERP) systems – these majorly comprise information systems (IS) suites that, besides AIS functionalities, integrate other functionalities. Just to highlight a few of these functionalities, examples customer relationship management (CRM), human resources, and management decision support systems. As will be demonstrated in this essay, which explores the failed attempts by a selected company (Veronica's Auto Insurance Services, Inc.) to implement AIS systems, it is clear that despite internal issues causing failed implementation attempts, external factors should not be ignored. Company Overview Veronica’s Insurance Services, Inc. (henceforth, VIS), is an insurance business. Its core business revolved around a wide range of insurance services, including life, home, auto, boat, renters, and motorcycle insurance. VIS was founded about two and a half decades ago by the CEO and Founder, Veronica Gallardo. Her initial vision for the business, as a social entrepreneur, was to offer sustainable insurance to disenfranchised communities while, at the same time, offering employment to over 200 families. She is a Mexican woman who has since become the leading broker in the Hispanic insurance industry. Due to the focus on lower-income communities, VIS is renowned for its low prices compared to the competition. The main product offered by VIS is a multiline insurance – this entails an insurance policy where different risks/exposures are bundled together and covered under a single agreement (Banton, et al., 2). Other products include specialty vehicle insurance, health insurance, homeowner and renter insurance, life insurance, and commercial insurance (commercial vehicles, business owners’ policies, general liability, and workers’ compensation). Reasons for AIS Implementation Failure One of the biggest reasons why NetSuite ERP/AIS system implementation at VIS can be derived from the ensuing lawsuits: misrepresentations and broken promises from the vendors. VIS sued NetSuite, claiming that its sales representativesmade several specific promises before the contract was signed to win the contract. However, once the contract was signed, VIS realized that the promises made were false and that key functionalities were either not available or required expensive third-party plugins (Mondaq, para. 3). The lawsuit reveals that despite the misrepresentations by NetSuite sales personnel, the firm failed to do its due diligence to determine the true nature of the NetSuite package. In other words, implementing AIS must start with a determination of the specifications requirements, which should inform key decisions such as which products and vendors offer the best solution. The second reason is a rather general one affecting most firms experiencing failed NetSuite implementation failures: ambiguous and impractical specifications. Many clients often provide unclear or unrealistic expectations (Ybanez, 4). This problem becomes magnified by the fact that the failure to accurately a...