Addressing The Challenge Of Strategic Alignment Faced By Small And Medium-Sized Entities During The Selection Of Accounting Software Packages

Abstract

Alignment between an entity’s strategic business objectives and its information systems (ISs) has recently received research attention. Currently, small and medium-sized entities (SMEs) still face the challenge of successfully aligning their strategic business objectives with their ISs. Various small generic accounting software packages are available for purchase by SMEs. These accounting packages all have functionalities that enable SMEs to keep proper accounting records. However, due to their generic nature, these accounting packages do not always have sufficient functionalities to drive the SMEs’ strategic business objectives, resulting in IS misalignment. Not selecting the correct accounting software package will result in the accounting software not addressing the strategic business needs of the SME. The purpose of this study is to review and discuss the challenges faced by SMEs when selecting generic accounting packages and to develop a mapping between strategic business objectives commonly found within SMEs and software package functionalities that SMEs can refer to during the selection and implementation of new accounting software packages. This is accomplished on a non-empirical basis through a review of pertinent literature. In order for a SME to select the correct accounting software package, it is important that it invest time and effort in considering the software functionalities provided by the software package and map it against its strategic business imperatives to prevent failure of the package.

“Key Performance Indicators (KPIs), Key Result Indicator (KRIs) and Objectives and Key Results (OKRs)” A New Key Incorporated Results (KIRs) Approach

“…Organizations today are attempting to cope with the often chaotic and quickly changing environment in order to achieve their desired goals. (Bishop, 2017). With the implementation of Key Incorporated Results (KIRs), this objective can be achieved in an easy and efficient manner.…”

“…Strategic alignments analysis is a technique used to ensure that these KIRs reflect the organization's strategic goals and objectives. (Bishop, 2017). It helps to identify areas of misalignment and make changes to the KIRs to better align them with the overall strategic objectives.…”

A project management framework for small- and medium-sized entities: Accounting software implementation

“…Accounting software packages should only be purchased if the functionalities that they provide meet the needs of the SME, but is still affordable (Bishop 2017); otherwise, if a generic software accounting package is installed that does not provide the required outputs for that SME, it will result in software failure (Dwivedi et al 2015). The misalignment between generic software and strategic business imperatives is also commonly referred to as the IT gap (Kruger 2011).…”

“…Strategic alignment Misalignment between an entity's strategic business objectives (set by management) and its information systems (managed by IT) is formally defined as the IT gap (Bishop 2017 Testing of functionalities Testing of the functionalities of the software package by end users should be conducted at the end of the project before the software is implemented. It is important for the end product to be tested by the users that will be working with the program to ensure that the program is working as it should and that functionalities achieve the desired outcomes as required by the business imperatives of the entity.…”