International Journal of Academic Research in Accounting, Finance and Management Sciences

Vol. 10, No.1, January 2020, pp. 13–24

E-ISSN: 2225-8329, P-ISSN: 2308-0337
© 2020 HRMARS
www.hrmars.com

To cite this article: Al kaabi, O.M.S.M., Adaikalam, J., Karim, A.M., Hock, O.Y., Hossain, M.I. (2020). Influence on
Internal Control through Digitalization of Assets: A Study on Ministry of Interior, UAE, International Journal of
Academic Research in Accounting, Finance and Management Sciences 10 (1): 13-24
http://dx.doi.org/10.6007/IJARAFMS/v10-i1/698 (DOI: 10.6007/IJARAFMS/v10-i1/6989)

Influence on Internal Control through Digitalization of Assets: A Study

on Ministry of Interior, UAE
Ahmed Khamis Ali Saeed Alkaabi1, Joseph Adaikalam2, Asif Mahbub Karim3,
Oo Yu Hock4, Mohammad Imtiaz Hossain5
1
PhD Research Fellow, Binary University of Management & Entrepreneurship, Malaysia
2
Founder and Executive Chairman, Binary University of Management & Entrepreneurship, Malaysia
3
Dean & Associate Professor, Binary Graduate School, Binary University of Management & Entrepreneurship, Malaysia,
3
E-mail: [email protected] (Corresponding author)
4
Professor, Asia e University (AeU), Malaysia
5
MSc in Business Economics, Universiti Putra Malaysia, Malaysia

Abstract
Fixed assets management through digitalization has been always been a matter of concern for public
organization, especially organization as strategic and important like Ministry of Interior, in the United Arab
Emirates. Since there are huge assets procurement, its management and control keeping has been a
daunting task always. The purpose of this research is to evaluate the influence of internal control through
assets management’s digitalization. To carry on with the research work a survey questionnaire was designed.
A structured questionnaire was used to collect data and SPSS was used to analyse them. From the finding of
the survey it was observed that the pace of digitalization was not so fast moreover the control on the assets
tracking system at times was difficult as the ministry deals with very sophisticated tangible equipment’s.
Well, after examining the evaluation of fixed assets management through digitalization, a study on ministry
of interior in UAE – the first objective of the study, it is seen that yet the application of the assets
management through digitalization is not in that level so the performance is very poor. This study may
inform managers of the importance of understanding the technology are a fundamental part of the business
that requires its strategy. It may also have implications for the organization’s mentality towards internal
factors concerning the technical systems.
Key words
Internal Control, Digitalization, Fixed Assets Management, UAE

Received: 02 Feb 2020 © The Authors 2020

Revised: 12 Feb 2020 Published by Human Resource Management Academic Research Society (www.hrmars.com)
Accepted: 22 Feb 2020 This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and
Published Online: 09 Mar 2020 non-commercial purposes), subject to full attribution to the original publication and authors. The full
terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction
Asset Management is not a new field that has suddenly come out of nowhere; asset management
activities have been carried out since utilizing capital assets started, such as power plants, ships, buildings,
or any kind of production assets. However, changes in technology and business environment mean that
asset management is more important that before and has a new focus, among other reasons, because
growing turbulence of markets, globalization and increasing competition, pressure for higher profitability,
so Asset Management has become a new discipline and gradually has gained the attention in many places
in the world.

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Asset Management process is the set of processes aligning the development, operation and
maintenance of assets, so as to meet the desired requirements and objectives of the shareholders in the
organization. Asset Management is a systematic process of maintaining, upgrading and operating assets,
combining engineering principles with sound business practice and economic rationale, and providing tools
to facilitate a more organized and flexible approach to making the decisions necessary to achieve the
public's expectations (Davenport & Westerman, 2018).
Assets are classified into two categories: tangible and intangible. Tangible assets are assets that one
can touch, hold, or feel. Typically called fixed assets in accounting literature, tangible assets are the physical
things that a business uses in the production of goods and services. They constitute the production
facilities, buildings, equipment, and vehicles. These operational assets of a business include furniture,
computers, and similar items not used up within a year. Intangible assets are primarily financing items:
stocks, bonds, mortgages, etc.
A fixed asset management life-cycle consists of a set of procedures that align with the enhancement,
operation, maintenance of fixed assets, in order to meet the demands and objectives of the business
decision makers. The scope of fixed assets management is often broad within an institute due to
connection between its internal factors such as human resources, finance, technology, operation,
production, information technology and management, as the same time external factors such as
governance and external environmental. Fixed asset management via digitalization is aim to optimize the
management processes, modelling initiatives should be implemented.
Information of fixed asset management enhances the effectiveness of decision-making process in the
organization. It captured in advances and abstract level within the scope of organization workflow, which
used as an executable guideline for implement the fixed asset management decision process in practice.
Moreover, it can be used as system which incorporated with plenty of information and workflow process. It
is able to support the automation workflow of such a process in a more elaborated way.
Digitization is the process of creating electronic resources from your physical assets, and has rapidly
evolved into one of the most recognized forms of organizational efficiency for companies today, and
tomorrow. Proper digitization is more than just scanning and storing documents in an electronic format.
Digitization is a strategy that involves systems, tools and technologies, organization including: meta-data,
cataloging and captioning, and most importantly, the right Digital Asset Management (DAM) system (Matt
et al., 2015).). The smart adoption of technology and exploitation of the data it generates can help
companies reinvent their business model, achieve major operational and cost efficiencies, and become
more relevant to their customers (Lee & Shin, 2018).
Nilly Essaides (2019) noted from a Hackett Group’s recent study “Internal Controls in the Age of
Disruption Study” (2019) that expects a significant increase in digitalization on asset management. For
example, they project that the adoption of advanced analytics solutions will more than double over the
next 12 to 24 months.

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Figure 1.The current and expected effects of digital transformation on the internal controls environment
While UAE companies lead their GCC peers in going digital, they must do more to engage consumers
in their market, who are among the most tech-savvy in the world, and stay relevant in an age of disruption.
The digitization of the Saudi economy has for the past decade or more been led by individual ministries and
their “digital arms”, which they have either developed themselves or with companies operating in related
fields. Ministry of UAE is working in the field of information security before expanding into wider range of IT
support services.

2. Literature review
Managing effective asset management is not an alternative for an organization if it is to achieve and
keep a competitive situation. Understanding and rapidly communicating the complaints and demands of
customers to internal managers then can ensure that these demands are met rapidly and accurately, are
essential and significant to every organization. Automated asset management helps enhance the
organization’s response time and efficient the accuracy of the management and process that result in the
products and services that customer’s satisfaction. Capturing the competitive race depends on having the
proficiency demanded to compete and the ability to express that competence to achieve maximum
competition advantage. Effective and useful automated workflow management of knowledge and
information is the key factor to unlocking the capability and knowledge that resides in every organization.
There are solutions that help create the right structures and consistency in the content used for
branding: Digital Asset Management (DAM). Data can be stored, managed, found, retrieved, shared and
sent using DAM software. Individual media content is described by individual metadata, which may vary
depending on the needs of the system or target groups, such as designers or users. In this way, the data
supply of numerous channels can be designed intelligently (Moran, 2015). Digital assets are the digital
ownership of all values. This is the most accurate definition, but we may not be clear enough to
understand. In general, digital assets can be classified in two basic categories (Björling, 2015):
• Limited audited digital assets, such as PayPal's digital dollars or central bank digital assets. It's hard
to audit these digital assets, which means you can't confirm the authenticity of their processes; you can
only choose who believes in managing those assets.
• Token: Its accounting is more transparent because some processes can be audited. Encrypted
tokens are accounting units used to represent a numerical balance with a specific value, and the ownership
of the token is evidenced by certain cryptographic mechanisms, such as digital signatures.
Many businesses are well down the path to digitizing their most important assets. Healthcare
facilities and educational institutions are easy examples to point out; they continue their inexorable shift
toward electronic records and books. The aim of digitization is straightforward – to make information
easier to access, and leverage-able by the broader organization for business advantage.

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Digital asset management (DAM) has been referred to by a variety of names that often are used
interchangeably, such as Enterprise Content Management (ECM), Digital Content Management (DCM),
Digital Media Management (DMM), Media Asset Management (MAM), and Rich Media Asset Management
(RMAM) (Alkaabi et al., 2019).
DAM software enables consistent branding through efficient data storage and coordination of
individual assets. In-house, flexibility and mobility are promoted by giving users secure access to mission-
critical assets, whether they are querying them from the desktop or mobile. Another advantage: A DAM
usually has a feature for license management, so that one's own content can be legally reused - even when
put together again. DAM solutions also provide an overview of all digital data types. The bottom line is that
production delays and thus costs are avoided by distributing tasks to internal and external teams. As a
result, there is more transparency in terms of changes, annotations and approvals, which are reproducible
by system (Matt et al., 2015).
At present, the blockchain application areas being developed in China include: the circulation
network of digital assets, the digitization of physical assets and interests, network distribution, transactions,
delivery, global transparent supply chain and genuine and false verification of goods, smart contracts, big
data, Internet of Things and cloud computing. With tools like robotic process automation (RPA) and AI-
enabled analytics, they are beginning to automate compliance monitoring and remediation activities. They
are also using machine learning solutions to detect suspicious activities, identify emerging control points,
and learn from experience on an ongoing basis (Jonsdottir et al., 2017).
To digitize things and people is a different story. The digitization of people allows enterprises to
leverage knowledge – tribal and otherwise – for faster and more accurate decision-making; to make
information easier to access through online records and real-time collaboration; and secure an intellectual
legacy that perpetuates the business. Digitizing your people allows a company to make any desk less
worker as smart as the smartest individual, unhindered by geographic location, or time-zone (Gomber et
al., 2017). At the regional level, the 2018 Global Digital Competitiveness Report presents a gap in
digitization in general, and despite the clear leadership of the UAE and its improved performance in the
various factors of the technology index, particularly technology, the gap between the UAE and the rest of
the Arab countries is very wide, Followed by Qatar in 28th place, and then the gap widens further to Saudi
Arabia in 42nd place, and Jordan in 45th place with improvement of more than ten ranks.

3. Conceptual Framework

Infrastructure

Budget Fixed Assets Management

through Digitalization
Technical Expertise

Regulatory Committee

Figure 2. Conceptual framework

Source: Authors

4. Research objectives
The specific objective of the research is, (1) to analyse the performance of fixed assets management
through digitalization of Ministry of Interior, UAE.

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The other objectives of the research are: (1) To study on the impact of digitalization of fixed assets
management in MOI; (2) To examine elements involve in the automation processes; (3) To make
recommendation to improve fixed assets management performance via digitalization.

5. Methodology of research
A quantitative methodology is used to assess the trust of the system that leads to its adoption. The
research was conducted using self-administered questionnaires. A structured questionnaire was prepared
after consultation guides, experts in the field, and after going through review of relevant literature. The
questionnaire designed in this study is 5 Likert Scale. Questions of Independent variables were utilizing on a
Likert scale ranging from 1= strongly disagree to 6 = strongly agree and some use 5= much better off, 4=
somehow better off; 3=about the same; 2= somehow worse off; 1= much worse off. SPSS used to analyse
the data. In total, 180 questionnaires were administered to the members of the public. Out of the 180
questionnaires that were administered 165 were returned. From the numbers returned, 15 were either
incomplete or improperly filled which rendered them useless for analysis. Therefore, only 150 were
considered for analysis.

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6. Data Analysis and Findings

6.1. Demographics
Gender
Frequency Percent Valid Percent Cumulative Percent
Male 61 40.7 40.7 40.7
Valid Female 89 59.3 59.3 100.0
Total 150 100.0 100.0

Age in year
Frequency Percent Valid Percent Cumulative Percent
Valid 20 to 29 23 15.3 15.3 15.3
30 to 39 76 50.7 50.7 66.0
40 to 49 46 30.7 30.7 96.7
50 to 59 5 3.3 3.3 100.0
Total 150 100.0 100.0

Education Background
Frequency Percent Valid Percent Cumulative Percent
Valid Diploma 60 40.0 40.0 40.0
Undergraduate 68 45.3 45.3 85.3
Postgraduate 21 14.0 14.0 99.3
Others 1 .7 .7 74.5
Total 150 100.0 100.0 100.0

6.2. Infrastructure
Familiarity and Expertise with The Technologies Relating Asset Management
Frequency Percent Valid Percent Cumulative Percent
Valid so so 7 4.7 4.7 4.7
Better 34 22.7 22.7 27.3
Excellent 109 72.7 72.7 100.0
Total 150 100.0 100.0

Your Involvement in Implementing Methods of Managing and Preserving Digitalization

Frequency Percent Valid Percent Cumulative Percent
Valid Poor 1 .7 .7 .7
So So 3 2.0 2.0 2.7
Better 91 60.7 60.7 63.3
Excellent 55 36.7 36.7 100.0
Total 150 100.0 100.0

Ability of Your Department to Organize The E-Data

Frequency Percent Valid Percent Cumulative Percent
Valid Poor 1 .7 .7 .7
so so 27 18.0 18.0 18.7
Better 75 50.0 50.0 68.7
Excellent 47 31.3 31.3 100.0
Total 150 100.0 100.0

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Top management have full support on arranging trainings

Frequency Percent Valid Percent Cumulative Percent
Valid strongly disagree 3 2.0 2.0 2.0
Disagree 5 3.3 3.3 5.3
Neutral 16 10.7 10.7 16.0
Agree 67 44.7 44.7 60.7
strongly agree 59 39.3 39.3 100.0
Total 150 100.0 100.0

6.3. Regulatory Committee

Degree of Involvement by Regulatory Committee
Frequency Percent Valid Percent Cumulative Percent
Valid Worst 1 .7 .7 .7
Poor 3 2.0 2.0 2.7
so so 32 21.3 21.3 24.0
Better 80 53.3 53.3 77.3
Excellent 34 22.7 22.7 100.0
Total 150 100.0 100.0

Departmental Communication with regulatory committee for Digitalization

Frequency Percent Valid Percent Cumulative Percent
Valid Poor 5 3.3 3.3 3.3
so so 27 18.0 18.0 21.3
Better 63 42.0 42.0 63.3
excellent 55 36.7 36.7 100.0
Total 150 100.0 100.0

Employing Regulatory committee increase Efficiency

Frequency Percent Valid Percent Cumulative Percent
Valid strongly disagree 1 .7 .7 .7
Neutral 9 6.0 6.0 6.7
Agree 39 26.0 26.0 32.7
strongly agree 101 67.3 67.3 100.0
Total 150 100.0 100.0

6.4. Technical Expertise

Repair and maintenance department are properly functional
Frequency Percent Valid Percent Cumulative Percent
Valid Disagree 4 2.7 2.7 2.7
Neutral 21 14.0 14.0 16.7
Agree 68 45.3 45.3 62.0
strongly agree 57 38.0 38.0 100.0
Total 150 100.0 100.0

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Have adequate safeguarding expertise to protect fixed assets from theft and fire
Frequency Percent Valid Percent Cumulative Percent
Valid strongly disagree 1 .7 .7 .7
Disagree 1 .7 .7 1.3
Neutral 11 7.3 7.3 8.7
Agree 45 30.0 30.0 38.7
strongly agree 92 61.3 61.3 100.0
Total 150 100.0 100.0

6.5. Budget
Budget are sufficient
Frequency Percent Valid Percent Cumulative Percent
Valid strongly disagree 3 2.0 2.0 2.0
Disagree 3 2.0 2.0 4.0
Neutral 11 7.3 7.3 11.3
Agree 42 28.0 28.0 39.3
strongly agree 91 60.7 60.7 100.0
Total 150 100.0 100.0

Budget is properly utilized

Frequency Percent Valid Percent Cumulative Percent
Valid strongly disagree 2 1.3 1.3 1.3
Disagree 7 4.7 4.7 6.0
Neutral 6 4.0 4.0 10.0
Agree 84 56.0 56.0 66.0
strongly agree 51 34.0 34.0 100.0
Total 150 100.0 100.0

Digitalization allow Organization to control system over fixed asset

Frequency Percent Valid Percent Cumulative Percent
Valid Disagree 3 2.0 2.0 2.0
Neutral 13 8.7 8.7 10.7
Agree 34 22.7 22.7 33.3
strongly agree 100 66.7 66.7 100.0
Total 150 100.0 100.0

Internal influence is important for digitization over fixed assets

Frequency Percent Valid Percent Cumulative Percent
Valid strongly disagree 3 2.0 2.0 2.0
Disagree 4 2.7 2.7 4.7
Neutral 6 4.0 4.0 8.7
Agree 89 59.3 59.3 68.0
strongly agree 48 32.0 32.0 100.0
Total 150 100.0 100.0

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6.6. Tests of Normality

Kolmogorov-Smirnova Shapiro-Wilk
Statistic Df Sig. Statistic df Sig.
Fixed Assets Management through Digitalization .149 150 .000 .948 150 .000
a. Lilliefors Significance Correction

Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Infrastructure .174 150 .000 .865 150 .000
a. Lilliefors Significance Correction

Kolmogorov-Smirnova Shapiro-Wilk
Statistic Df Sig. Statistic df Sig.
Technical Expertise .258 150 .000 .742 150 .000
a. Lilliefors Significance Correction

Kolmogorov-Smirnova Shapiro-Wilk
Statistic Df Sig. Statistic Df Sig.
Regulatory Committee .189 150 .000 .908 150 .000
a. Lilliefors Significance Correction

From normality table we can see that for Kolmogorov-Smirnov and Shapiro-Wilk test the p value is
exactly 0.00 which means the test is significant and not follows normal distribution. And also from
histogram, normal Q-Q plot and detrended normal Q-Q plot, the test statistic not follows the normal
distribution.

6.7. Mann-Whitney Test

Ranks
sex/gender N Mean Rank Sum of Ranks
Male 61 74.15 4523.00
Fixed Assets Management through Digitalization female 89 76.43 6802.00
Total 150
male 61 76.25 4651.50
Infrastructure female 89 74.98 6673.50
Total 150
male 61 74.91 4569.50
Technical Expertise female 89 75.90 6755.50
Total 150
male 61 82.09 5007.50
Regulatory Committee female 89 70.98 6317.50
Total 150
male 61 83.54 5096.00
Budget female 89 69.99 6229.00
Total 150

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Test Statisticsa
Asset Management Technical Regulatory
Infrastructure Budget
Digitalization Expertise Committee
Mann-Whitney U 2632.000 2668.500 2.678E3 2312.500 2.224E3
Wilcoxon W 4523.000 6673.500 4.570E3 6317.500 6.229E3
Z -.321 -.180 -.147 -1.578 -2.189
Asymp. Sig. (2-tailed) .748 .857 .883 .115 .029
a. Grouping Variable: sex/gender

The corresponding p- value of the test statistic for the only Budget has been observed to be 0.029
which is less than 0.05. It can thus be concluded that there is no difference between the Infrastructure
Technical Expertise, Regulatory Committee, except for the Budget, where the people who are below 30
years encounter more challenges than other age groups. This can be explained that lack of Budget, as a
challenge, is primarily considered by the people who are below 30 years as the mean rank of 69.99 which is
lower than the mean rank of other age group.

6.8. Kruskal-Wallis Test

Ranks
sex/gender N Mean Rank
male 61 74.15
Fixed Assets Management through Digitalization female 89 76.43
Total 150
male 61 76.25
Infrastructure female 89 74.98
Total 150
male 61 74.91
Technical Expertise female 89 75.90
Total 150
male 61 82.09
Regulatory Committee female 89 70.98
Total 150
male 61 83.54
Budget female 89 69.99
Total 150

Test Statisticsa,b
Asset Management Technical
Infrastructure Regulatory Committee Budget
Digitalization Expertise
Chi-Square .103 .032 .022 2.489 4.794
df 1 1 1 1 1
Asymp. Sig. .748 .857 .883 .115 .029
a. Kruskal Wallis Test
b. Grouping Variable: sex/gender

The corresponding p- value of the test statistic for the only Budget has been observed to be 0.029
which is less than 0.05. It can thus be concluded that there is no difference between the Infrastructure
Technical Expertise, Regulatory Committee, except for the Budget, where the people who are below 30

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years encounter more challenges than other age groups. This can be explained that lack of Budget, as a
challenge, is primarily considered by the people who are below 30 years as the mean rank of 69.99 which is
lower than the mean rank of other age group.

6.9. Reliability Test

Reliability Statistics
Cronbach's Alpha N of Items
.653 5

A total of 150 questionnaires were distributed and all were filled and returned giving a response rate
of 100%. Here the value of Cronbach’s Alpha is 0.653 which indicates the internal consistency of our data.
Our calculated value of Alpha is greater than 0.5 so the internal consistency is acceptable.

6.10. Coefficients Test

Coefficients a
Unstandardized Coefficients Standardized Coefficients
Model t Sig.
B Std. Error Beta
1 (Constant) 2.500 .409 6.107 .000
Infrastructure .273 .085 .272 3.198 .002
Technical Expertise .041 .053 .068 .778 .048
Regulatory Committee .016 .081 .017 .201 .041
Budget .072 .042 .144 1.712 .089
a. Dependent Variable: Asset Management Digitalization

6.11. Interpretation of coefficients

Asset Management Digitalization
Here R is the regression coefficient and the regression parameter B which we have to interpret. We
consider Fixed Assets Management through Digitalization as dependent variable and we have four
independent variables. Here the value B are the 2.50 (intercept), 0.273 (1st regression coefficient), 0.041
(2nd regression coefficient), 0.016 (3rd regression coefficient) and 0.072 (last regression coefficient).
One unit increase of 1st (Infrastructure) regression coefficient when other coefficients are remaining
constant then the average increase of dependent variable (Asset Management Digitalization) is 2.50 unit.
This was evidenced by the p value of 0.000 which is less than that of critical value (0.05). So, there is a
correlation.
One unit increase of 2nd (Technical Expertise) regression coefficient when other coefficients are
remaining constant then the average increase of dependent variable (Asset Management Digitalization) is
2.50 unit. This was evidenced by the p value of 0.002 which is less than that of critical value (0.05). So, there
is a correlation
One unit increase of 3rd (Regulatory Committee) regression coefficient when other coefficients are
remaining constant then the average increase of dependent variable (Asset Management Digitalization) is
2.50 unit. This was evidenced by the p value of 0.048 which is less than that of critical value (0.05). So, there
is a correlation
One unit increase of 4th (Budget) regression coefficient when other coefficients are remaining
constant then the average increase of dependent variable (Asset Management Digitalization) is 2.50 unit.
This was evidenced by the p value of 0.089 which is less than that of critical value (0.05). So, there is a
correlation.

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6.12. Correlations Test

Correlations
Asset
Technical Regulatory
Management Infrastructure Budget
Expertise Committee
Digitalization
Asset Management Pearson Correlation 1 .338** .219** .161* .242**
Digitalization Sig. (2-tailed) .000 .007 .049 .003
N 150 150 150 150 150
** ** **
Infrastructure Pearson Correlation .338 1 .356 .308 .259**
Sig. (2-tailed) .000 .000 .000 .001
N 150 150 150 150 150
** ** **
Technical Expertise Pearson Correlation .219 .356 1 .307 .342**
Sig. (2-tailed) .007 .000 .000 .000
N 150 150 150 150 150
* ** **
Regulatory Pearson Correlation .161 .308 .307 1 .278**
Committee Sig. (2-tailed) .049 .000 .000 .001
N 150 150 150 150 150
** ** ** **
Budget Pearson Correlation .242 .259 .342 .278 1
Sig. (2-tailed) .003 .001 .000 .001
N 150 150 150 150 150
*. Correlation is significant at the 0.05 level (2-tailed).

6.13. Interpretation of Correlations Test

The relationship among Fixed Assets Management through Digitalization and Infrastructure,
Technical Expertise, Regulatory Committee, Budget is approximately good because the value of the
coefficient is 0.338, 0.219, 0.161, 0.242. The Pearson correlation coefficient indicates that there was a
positive and significant relationship between Fixed Assets Management through Digitalization and
Infrastructure. This was evidenced by the p value of 0.000 which is less than that of critical value (0.05).
The relationship between Infrastructure and Technical Expertise is approximately good because the
value of the coefficient is 0.356.
The relationship between Infrastructure and Regulatory Committee is approximately good because
the value of the coefficient is 0.308.
The relationship between Infrastructure and Budget is approximately good because the value of the
coefficient is 0.259.
The relationship between Technical Expertise and Regulatory Committee is approximately good
because the value of the coefficient is 0.307.
The relationship between Technical Expertise and Budget is approximately good because the value of
the coefficient is 0.342.
The relationship between Regulatory Committee and Budget is approximately good because the
value of the coefficient is 0.278.

7. Conclusions
In the digital economy, change is rapid and often unexpected. Technological and business model
innovations are disrupting market dynamics, while economic and geopolitical uncertainty injects a whole
new level of volatility into the business environment. Digital transformation is a more holistic view, in that
it not only focuses on digitizing and digitalizing but also focuses on how to implement these changes
throughout an organization. It engages the entire organization and the people that make up the company,
rather than just the processes and the data that are part of the company.

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On a more individual level, the results of this report may inform managers of the importance of
understanding the technology are a fundamental part of the business that requires its strategy. The digital
strategy is an iterative and forever changing process that has to be updated alongside the internal factors
of the industry. It may also have implications for the organization’s mentality towards internal factors
concerning the technical systems. If the business is in a changing climate such as the current financial
industry, then it is necessary to design systems that can change and adopt new functionality, without
having to do a major architectural redesign of the systems.
This research provides overview about Digital Asset Management (DAM), Blockchain, and robotics
besides other internal and external factors. As the implementation of IR4.0 growing day by day in all
industry, this researches result can be used as a reference for digital implementation in asset management.
Future research could be to evaluate cases where digital transformation has already been conducted
and see the results of such transformations. It would also give the possibility to assess the transformation
process and the implications found during transformation. Furthermore, explanation about how did the
digital strategy change from before, during, and after the digital transformation. Recommendation for
future research is to think about the gathering of information when in regards to financial organisations.
There is a significant amount of data to collect; however, it is essential to make sure that the data looked
for is available and offered by the company.

8. Recommendations
-Assets management must be digitalized as to provide accurate information on the actual book value
of the each classification of fixed assets.
-To adhere to international accounting standards framework of disclosure the net book value such
assets management digitalization is essential.
-Introduction of training facilities on the industry benchmark of assets digitalization and application
of various classification of fixed assets. Like high tech assets useful life determination as per IAS 16 –
Property Plant.
-Introduction of high rate of depreciation – that is accelerating depreciation rates to the assets which
are subject to obsolescence in few years. As robotics engineering is used now in many assets so it cannot be
depreciated in the usual manner as per IAS – 3 – Depreciation.
- Proper and digitalized inventory mechanism should be introduced to safeguard the assets from
abuse and misuse.
-E-fixed assets identification numbers to be introduced to trace each and all type of assets.
-Smart technology like application development to be done to keep the control on the movement of
the fixed assets through SIM based GPRS tracking devices.

9. Limitation of the research

Firstly, the collection of data had an issue as many employees were not so much aware of the on-
going assets digitalization system.
Secondly, the nature of conventional assets and high-techrobotics-oriented assets classification and
appreciation is a big challenge as per international accounting standard.
Thirdly, the time bound framework.
Finally, most of the data are very classified and used here very cautiously.

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International Journal of Academic Research in Accounting, Finance and Management Sciences
Vol. 10 (1), pp. 13–24, © 2020 HRMARS (www.hrmars.com)

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