5. Transformation of the finance function

Question 1

Driving forces for change

Answer 1

Management structure
Technology
Competition

Question 2

Outsourcing

Answer 2

subcontracting to external providers

Question 3

Non core competences

Answer 3

can be outsourced
cleaning
printing
catering
legal
property maintenance

Question 4

Core competences

Answer 4

not to be outsourced

Question 5

Complementary competences

Answer 5

can be outsourced but as complex must only be given to a trusted outsourcer

Question 6

Internal outsourcing to shared service centres

Answer 6

economies of scale
single best practice from all operations
Improved control and delivery

Question 7

Offshoring

Answer 7

relocation of parts of an organisation’s activities to another country

Question 8

Near-shoring

Answer 8

moving activities to neighbouring countries

Question 9

Business process reengineering

Answer 9

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in measures of performance such as cost, quality, service and speed (Hammer and Champy 2001)

Question 10

Stages of BPR

Answer 10

Process identification
Process rationalisation
Process redesign
Process reassembly