3 - Technologies used in Business & Finance Flashcards
1st industrial rev
Water and steam power that allow mechanisation of production.
2nd industrial rev
Mass production power by electricity
3rd industrial rev
Mass production became automated through use of electronics and info technology e.g. robotics
4th industrial rev
powered by digital technology
the 4th industrial rev is characterised by…
the fusion of technologies that blur the lines between physical, digital and biological spheres.
3 key features of 4th IR
- Velocity - speed of tech breakthru faster than ever b4
- Effect - disrupting in every industry every country @ same time - not just specific ind.
- Scope - breadth and depth of change, transformation of entire systems of production, mgmt, governance
How 4th IR impact technological change & transportation/comms?
Faster tech change
Cheaper transportation & comms costs
How 4th IR impact labour mkt?
Disruption - jobs replaced by automation, falling income levels.
How 4th IR impact efficiency?
Gains in efficiency & productivity that add value
Does 4th IR impact how bis is done?
Yes - disrupts industries and supply chains
How 4th IR impact competitiors?
Ops for new, more agile competitiors to challenge existing orgs.
How 4th IR impact types of economy?
Sharing & on-demand economies –> gig economy
and lower entry barriers
How 4th IR impact customers?
Higher expectations for products and svcs provided.
How 4th IR impact existing products?
Can enhance with digital capabilities
How 4th IR impact innovation?
Increased collaborative innovation between orgs
5 other characteristics that distinguish 4th IR from other IRs
- Employment - remove/change nature of jobs
- Natural assets - tech makes better use of natural assets, increases renewables
- Machine-led manu - role of workers assisted by machines –> assisting machines
- Fusion - digital & physical systems merge
- AI & ML - products customised easily & cheaply
Farrar - 3 ways technologies increase value of accountants
- Enables them to work faster
- Enables them to work more efficiently.
- Makes them more productive at new tasks
Cloud computing =
Provision of computing as a consumable service instead of a purchased product. System info & software can be accessed remotely as a utility thru the internet. Sell physical storage + processing power, happens on cloud rather than inside computer.
Public vs private clouds
Public = sell svcs to anyone on internet Private = proprietary network or a data centre that supplies hosted svcs to a limited number of people or orgs.
Virtual private cloud =
when a service provider uses public cloud resources to create their private cloud.
4 characteristics of cloud computing that distinguish it from traditional hosting
- Sold on demand - pay only when use
- Elastic - expand or reduce resources as need
- Fully managed by svc provide
- On-demand & self service - available all the time & user can operate it themselves.
Impact of cloud computing on IT costs
Sold on demand shifts IT costs from capital expenditures –> operating expense model.
Big data =
Vast volumes of data captured by various sources, such as web browsing & internet of things, that can be analysed to reveal patterns or trends, especially related to human behaviour or interactions.
How do cloud computing and big data relate?
Cloud computing means not restricted by storage limitations & cheaper to store
4 sources big data
- Human interactions with social networks, search engines
- Machines - internet of things
- Open data sources e.g. from Gov
- Closed data sources e.g. marketing database from research org available for a fee
4 V’s model Big data
- Volume = huge quantity
- Velocity = often real time
- Variety = many diff forms & often unstructured
- Veracity = inaccuracies, bias, anomalies, and noise
Data analytics =
collection, management & analysis of large datasets to convert data –> useful info to use for decision making.
How have big data/data analytics impacted decision making?
Large volumes of data analysed real time = help make better decisions that improve profits
How have big data/data analytics impacted marketing?
Analyse customer data to customise marketing approach to individuals or groups
How have big data/data analytics impacted risk?
Better understand risks org faces particularly in bis environ
How have big data/data analytics impacted product dev?
analysis of org market and customer needs = identify ops for new products/services
How have big data/data analytics impacted knowledge?
Create and enhance knowledge
Define knowledge
Info you have and is useful and you can deploy somewhere. Get from insights.
How have big data/data analytics impacted Perf mgmt?
Deeper understanding of perf = can identify previously unknown causes of poor perf that can be rectified.
McKinsey: 6 benefits of effective data analysis
- Fresh insight & understanding into own bis
- Improved perf (ops, decision making, resource util)
- Segment & customise markets
- Faster decision making
- Innovation - improve existing/create new products
- Better risk mgmt
Process automation =
the ability of systems to perform ROUTINE activities without the input of humans.
Traditional process automation =
machine carries out simple, repetitive task.
Modern process automation =
Focuses on more complex bis areas previously thought beyond the scope of automation.
Robotics process automation = & is it traditional or modern?
RPA = enables automation of routine, clerical activities = increases efficiency & reduces staff costs.
Traditional
McKinsey: managing others function % automated + level in finance function
9%
Leading the finance team
McKinsey: stakeholder interactions % automated + level in finance function
20%
Partnering for value and shaping how org creates and preserves value.
McKinsey: applying expertise % automated + level in finance function
18%
Partnering for value and shaping how org creates and preserves value.
McKinsey: data processing % automated + level in finance function
69%
Generating insights in specialist areas
McKinsey: data collection % automated + level in finance function
64%
Assembling and extracting data, providing limited insight
define AI
The ability of a computer system to assist a human operator to make business decisions or help solve problems.
Automation + AI systems are collectively known as…
Intelligent systems
Cognitive computing =
Collective name for several technologies including AI, ML and NLP. Enable automation of more complex tasks such as advanced data analysis & reporting writing.
Define ML and how relates to AI
ML = a subset of AI that involves code being developed and designed to replicate how the human brain works. Uses experience from past events, data, connections & probability to apply in future situations by detecting patterns & making recommendations. Design to learn from mistakes and do not repeat = adapt and improve functions over time.
Data Visualisation =
the process of presenting report formats that represent data and info in a pictorial or graphical format that helps recipient to understand the significance of the content more easily than if in a traditional report format.
Waterfall charts description + AKA
AKA bridges
Present variance analysis
Size of steps scaled so eye naturally focuses on most significant movements first.
Dashboards -
relevant summary and often used to provide 4/5 relevant drivers that give overview of bis area. Can drilldown into supporting data.
Line charts =
Show trend analysis or time based results
Can extrapolate to predict future
Mapping charts =
present data geographically - can click and drilldown into countries to find info specific to those areas.
Bar and pie charts
Traditional methods of comparing data made up of component parts e.g. sales by bis area
Tables
Traditional method of presenting reference material by breaking into rows and columns
Data visualisation changes medium of presentation to…
Tablets and smart devices rather than on paper
5 features of effective data visu tools
- Real time (use OLAP)
- Interrogation - can drilldown
- Decision making - focused on results & support decision making
- Prompt (timely) - display results quickly & update continually
- Infrastructure - tool supported by sufficient quantity & quality of data.
Distributed ledger technology =
A technology that allows org/ind who are unconnected to share an agreed record of events such as ownership of an asset. Not just 1 master ledger kept by org on its server, collectively keep a ledger >1 version.
Blockchain =
A form of distributed ledger system. Way to record transactions - when something is added to the ledger, a new block is created and added to the chain.
Distributed ledger technologies eliminate the need for…
Data and info to be stored and managed centrally.
5 benefits of distributed ledger tech
accurate, up to date, single, trusted & transparent record to be shared between numerous parties.
Key aspects of blockchain (5)
- Participants of a blockchain record transactions on an online network that is publicly available & distributed to everyone.
- Transactions only accepted after all participants have updated their ledgers to reflect them
- Network computers verify transaction –> authorise + added to blockchain
- Blocks connected to blockchain using cryptographic hash generated from previous block = cannot break chain & blocks preserved permanently
- can only amend prior blocks is subsequent ones altered first.
Stage 1 of blockchain transaction
Transaction is requested e.g. sale or purchase
Stage 2 of blockchain transaction
Digital representation of the transaction is requested (a block)
Stage 3 of blockchain transaction
Block sent to all nodes in network (distributed ledger)`
Stage 4 of blockchain transaction
Each node verifies authenticity of transaction
Stage 5 of blockchain transaction
A reward for verification sent to each node e.g. Bitcoin
Stage 6 of blockchain transaction
Completed & authorised block added to the chain
3 P’s of blockchain
- Propagation = many copies, no master copy. All versions identical. New transaction –> propagates to all copies of blockchain.
- Permanence = past transactions only edited if consent by majority.
- Programmability = allow program code to be stored as well as transaction info. Allow smart contracts - ledge entries auto created when triggered without human intervention.
Internet of things =
Consists of computing devices, objects, mechanical and digital machines which transfer data over the internet without requiring human to human OR human to computer intervention.
4 tasks internet of things can perform
Record, store & transfer data over internet to other devices. Can also be controlled remotely.
2 ways internet of things impacted orgs
- Created new ops to provide products/services
2. Ops to improve products/services
what are RFID tags?
Radio frequency identification - tags attached to airline baggage or parcels to allow customer to get real time updates on progress
Mobile technology =
The infrastructure that supports cellular comms and so allows internet of things to work.
Mobile tech typically includes… + how developed over time?
Phone masts that mobiles connect to and transmit data from. 2 way voice calls (SMS + MMS) –> video calling & internet access.
The technology that underpins mobile tech is called…
Code-division multiple access
2 impacts mobile tech on orgs
- New ops to provide new products/services
2. Employees can WFH, no need to be located centrally
3D printing definition + AKA
AKA additive manufacturing
Computer controlled process in which material (liquid/powder) is joined, fused together & solidified to create solid objects.
2 stages to 3D printing
- Object designed using software such as CAD
2. Transmitted to printer
Benefits of 3D printing
- Time-savings from design to finished product
- Cost effective - reduced labour time
- Customisable - tailored bespoke products
- Lean - precise amount of inputs = min waste
- Secure = done in house = improved confidentiality.
- Create on demand = reduce storage need
- Increased global reach - sell & transmit designs that purchase can print themselves
