8. The Finance Function's Relationship with IT Flashcards
What are knowledge management systems?
Those which are developed using databases, networks and IT to capture and manage the information held by the organisation
What is the learning organisation?
Where employees collaborate, share knowledge and work in teams to improve organisational efficiency and effectiveness
What 4 ways can IT strategy contribute to overall strategy?
- IT can create new business opportunities
- IT can improve efficiency and effectiveness
- IT enables structural change
- IT can create competitive advantage
Which theory provides a framework for the operation of any type of system?
General systems theory
What are the 5 stages of turning data into useful information?
- Collection
- Evaluation
- Analysis
- Interpretation
- Reporting
What is the difference between an open and closed system?
Closed has little or no interaction with its environment, open has a high level of interaction
What is an expert system?
A system that simulates the problem solving techniques of human experts
What is a Data Processing System (DPS) or Transaction Processing System (TPS)?
Systems that capture large volume data processing, producing simple and well defined information
What is the issue with legacy DPS systems?
Likely to be inflexible
What is a Management Information System (MIS)?
An extension of DPS which allows much greater reporting, often with report writing packages attached
What is an Executive Information System (EIS)?
A system for senior executives that contains internal and external data and KPIs to support strategic decision making
What is a Decision Support System?
Data modelling software that uses mathematic formula to replication organisational activity - scenario planning
What is a cloud based system?
One which is made available to users on demand via the internet
What is a Database Management System (DBMS)?
Software that builds the database and organises access to and change within the file structure
What are the advantages of Database Management Systems (DBMS)?
+ Reduced duplication of data
+ Ensures data integrity - accuracy and consistency
+ Improved security and control over data
+ Provision of more flexible reports
What are the disadvantages of Database Management Systems (DBMS)?
- High set up costs
- Risk of failure
- Data may not meet all users needs
- Additional security considerations
What is Electronic Data Interchange (EDI)?
A standardised method of transferring data between different computer systems
What is the key benefit of EDI?
Facilities a close relationship between organisations
What is systems architecture?
How the components of an information system are arranged and linked together
What are the advantages of a centralised systems architecture?
+ Wide access to a common store of data
+ Ease of maintaining data for all access points
+ Improved security
+ Powerful applications available to all users
What are the advantages of a distributed systems architecture?
+ Flexible use of IT
+ Not reliant on a single server
+ Local control and involvement from users
What is network topology?
How a computer network is physically arranged in a company
What are the 3 ways in which IT can create competitive advantage?
- Better links with customers and suppliers
- Enabling production, marketing and distribution of new products and services
- Providing information to help develop and implement strategy
What does the networked enterprise do?
Use new technologies to connect the work of the organisation’s employees with each other and the work and opinions of external stakeholders
What is an intranet?
Internal ‘mini’ internet for employees
What is an extranet?
Secure extension of the company’s intranet, that can be accessed by authorised outsiders such as suppliers and customers
What are Web 2.0 applications?
Those which emphasis collaboration and two way communication
What is social media?
All internet based applications that allow the create and exchange of user-generated content
What are the 5 main benefits of e-commerce?
- Enhanced communication between employees
- Improved supply chain
- Cheaper information exchange with suppliers
- Low cost access to new markets
- Creation and maintenance of customer relationships
What are digital markets?
Any market that is available online
What are virtual teams?
Teams that are geographically dispersed and utilise IT tools to communicate and collaborate
What are virtual companies?
A network of alliances and subcontracting arrangements that are geographically dispersed, where members utilise IT tools to operate as a coherent group
What are IT General Controls?
Controls over the IT environment, computer operations, access to programs and data, program development or program changes, disaster recovery
What are IT application controls?
Transaction processing controls, specific to individual applications
What are the 4 extents of outsourcing IT?
- Ad-hoc
- Project management
- Partial outsourcing
- Total outsourcing
What are the 4 approaches to outsourcing of IT?
- Multiple sourcing
- Incremental sourcing
- Joint venture outsourcing
- Application Service Providers (ASP)
What are 2 key IT KPIs?
Digital asset turnover and IT spend as a percentage of turnover
