3. Technology in a digital world Flashcards by Lucy Bishop

What were the key developments of the 1st industrial revolution?

Steam and water power harnessed to enable mechanisation

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What was the key development of the 2nd industrial revolution?

Mass production

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What were the key developments of the 3rd industrial revolution?

The personal computer, the internet and automation

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What were the key developments of the 4th industrial revolution?

Decentralised consensus, peer to peer interactions

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What is cloud computing?

The use of the internet to carry out processes that were traditionally done on localised hardware

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What are two examples of cloud computing in organisations?

Software as a Service (e.g. remote based email service)

Infrastructure as a Service (e.g. internet based data storage)

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What are the main benefits of using cloud computing?

Reduced need to invest in and maintain significant infrastructure, and…

Competitiveness
Limber (flexibility)
Our planet (environmentally friendly)
Unity (collaborate and contribute)
Disaster recovery
Security

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What are the disadvantages of using cloud computing?

Large servers more likely to be attacked by malicious hackers and leave the client vulnerable, relying on the controls of the provider

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What is big data?

Collections of data that are so large that traditional methods of data collection are insufficient

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What are the 4 Vs of big data?

Volume
Variety
Velocity
Veracity

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What is the difference between structured and unstructured big data?

Data captured intentionally vs data amassed with no identified purpose

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What are 4 categories of data source?

Traditional, machine generated, human sourced or publicly available

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What are the 5 biggest possible gains from big data?

Information transparent and accessible for ease of customer understanding
Can minimise risk by scenario testing
More potential for customer segmentation
Make better decisions through product and customer insights
Help develop products/services with faster time to market

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What is needed for big data to be of any use?

Big data analytics

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What is process automation?

The use of software to carry out low level tasks

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What is the benefit of process automation?

Cost saving and freeing up of time for value add activities

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What is the possible negative impact of process automation?

Bad for staff morale, can cause redundancies

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What are the 2 key considerations to be made when deciding whether to automate a process?

The level of repetition

- Rules or judgement based

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What is artificial intelligence?

Technology that can be used to make decisions

What is the shift in decision making style of artificial intelligence?

Rules based systems to pattern learning

What are the key benefits of artificial intelligence? (3)

Can process considerably more data
Can identify patterns better
Do not suffer from bias, tiredness or boredom

What are the key limitations of artificial intelligence? (3)

Work with input data, made by humans which may contain bias
May not have access to all the appropriate data
Have no empathy or creativity

What are the uses of AI in finance? (3)

Forecasting
Accounting entries
Fraud detection

What is data visualisation?

The communication of data in a user-friendly, diagrammatic way to facilitate understanding

What is the benefit of data visualisation?

It makes complicated data more accessible and easier to understand

What is blockchain?

A decentralised, continuously growing data record - a digital ledger which lists transactions in blocks and continues to grow with each transaction, creating a permanent record

What are the benefits of blockchain?

- It is transparent and accurate - It is decentralised and open - There is no need for an administrator

What is an exponential development?

Once which not only improves current capabilities but develops entire new methods of working

What is the internet of things?

The increasing connection of devices to the internet via new technologies such as cloud computing

What are 3 ways in which finance may use the IoT?

- Remote assets can give feedback about wear and tear for useful life and depreciation calcs - Knowledge of minute by minute machine workings help costing and inventory valuation - Real time analytical procedures monitor confirmation of financial data

What are the main advantages of teleworking?

- Greater potential workforce - Less commuting time - Less need for expensive office space

What are the main disadvantages of teleworking?

- Lack of visibility of employees - Lack of social interaction - Communication barriers

How does finance use mobile technology as a customer?

To enable it to work flexibly

How does finance use mobile technology as a supplier?

Recording customer transactions using mobile technology, and developing how it connects with its customers

What is 3D printing?

Printing 3D objects from a variety of materials - sometimes called additive manufacturing

What are the 5 main benefits of 3D printing?

1. Reduction of waste materials 2. Increased customization 3. Increased flexibility 4. Reduction of supply chains 5. Reduction of distribution costs --> Greater efficiency --> Lower costs

Is finance more likely to be a customer or supplier of 3D printing?

Supplier - partners with operations to understand how 3D printing can add value to the business and in determining cost benefit analyses

What is the impact of automation on financial accounting?

Many transactional roles can be easily replaced by robot technology

What is the impact of automation on management accounting?

Forecasting roles may be reduced by the use of automation, releasing time for value add work

What is the impact of automation on treasury?

Decision making machines could be used to advise on investing and borrowing activity

What is the impact of automation on internal audit?

Improves fraud detection, but increases the need for effective controls over automated processes

What are the 4 new areas for finance to focus on, now that many simple processes have been automated?

1. Economic/value driven factors 2. Human resource factors 3. Customer factors 4. Operational factors

What are the 5 moral dimensions of the information age?

``` Property (intangible intellectual property rights) Accountability/controls Information rights/privacy Life quality (negative social costs) Systems (standards and quality) ```

What are the main ethical issues relevant to IT? (5)

- Equality in access to IT - Maintaining privacy - Globalization and loss of cultures - Health risks/sedentary lifestyles - Work related stress

What is the UK data privacy legislation called and what does it set out?

The Data Protection Act 2018 - restricts what the organization can do with an individual's private information

What are the key examples of physical IT security?

Controlling building access, security guards, cameras, locks and ID cards

What is CDR?

Corporate digital responsibility - preventing data loss and loss of reputation