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Accounting Information Systems Case

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Prudential Europe
Business Summary and Analysis

Accounting Information Systems
Professor R

Overview
There is no question that the world we live in is highly competitive and prone to change. Technology is always advancing and business needs are always changing. “Every year, businesses spend billions of dollars on software projects in order to improve or replace their information systems.” (Romney & Steinbart, p. 579.). This includes insurance company Prudent Europe and how they had intended to expand their business by developing their own information system with IT Company Unisys. The project was ultimately terminated and €12 million of its €35 million total investment was already spent by the end of August of 2001. Management of Prudential Europe did not feel the software met their expansion needs especially with the increasing costs. The purpose of this writing assignment is to analyze Prudential Europe’s development project along with the successes and failure of it. (Prudent firms, n.d.)
System Analysis The first step of the system development life cycle is to determine whether a new information system is needed. Prudential Europe figured that a project to increase its processing ability would be economically feasible given that management calculated the capital budgeting of €35 million. If successful, the project would have given the company a huge competitive advantage and improved business processes over other companies, otherwise known as a business process management system. Prudential Europe’s board of directors then decided to look for a vendor to help the company’s needs and gave the approval to work with worldwide information technology company, Unisys. They found the decision to be appropriate for Prudential Europe as Unisys’ product Unisure, was greatly followed by major insurance

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