Impact of IT

Question 1

Impact of new IT on performance - fin and non performance, impact on PMS

Answer 1

what will be the effect of new IT on profits, you must be EXPLICIT and SPECIFIC

what will be impact on existing performance management systems

financial aspects of performance
1. Revenue
2. costs - staff, processing, less duplication, waste
3. Assets values
4. gearing debt
5. balance between fixed and variable cost

non financial aspects
1. flexibility
2. quality - less faults, cheaper buying
3. Relationships- customers & staff
4. Better information
5. Resource utilisation
6. process efficiency

Generic impact on PMS
- Impact on CSF or KPI
- Impact on budgetary approaches
- reporting changes
- Reward systems
- available data might change
- impact on quality - i.e. marketing

Question 2

Impact of new IT on performance - RFID

Answer 2

RFID tags physical things- people, assets and inventory. radio signal indicates location and historical descriptive data.

impact on performance
1. Less waste
2. less duplication as location of all assets are known
3. Reduces risk of theft and obsolesce
4. faster locating of assets

impact on the PMS
1. Stronger control over assets - traditional stock counts may then
decrease.
2. nature of controls may change from location to condition
3. Fifo is easier to implement

Question 3

Impact of new IT on performance - ERPS

Answer 3

A system which combines into one the various systems within A business.

Impact on performance
- product components being delivered on time
- Happier customers- this could lead to referral work and more
revenue
- less rebooking of services
- staff scheduling that matches customer booking
- identification and alert of bottlenecks earlier or total prevention

Impact on PMS
- KPI system will need to altered to measure impact
- info will be more reliable and should lead to better planning
- manual ordering replaced by automated ordering

Question 4

Impact of new IT on performance - Big Data

Answer 4

Features
1. Volume - a lot of data
2. veracity - data might be misleading or false
3. Variety - Data from different sources with different details
4. Velocity - Data coming in quickly and must be turned around quickly

AI and ML

Data silo is an old unintegrated systems created and used by a single department, looking to change will lead to duplication

Issues
1. Data duplication and divergence
2. Existing culture of isolation and poor data sharing
3. poor decision making - lack of flow of info will lead to poor
decision making
4. poor cost control as each system requires maintenance
5. poor controls
6. Accounting issues

solutions
1. Invest in modern technology -ERP, data warehouse, networks
2. Strengthen data governance