P1.F.3 Technology-Enables Finance Transformation Flashcards
Systems Development Life Cycle (SDLC)
P1.F.3 Technology-Enables Finance Transformation
The systems development life cycle is a conceptual model used in project management that details the process of designing, testing, and deploying an information system. This roadmap increases the chances of a successful implementation, and gives management something to follow and reference during the process to monitor progress.
- System analysis: collecting all systems requirements in advance
- Conceptual design: modeling processes to be included
- Physical design: layering hardware and software specifications
- Implementation and conversion: development, implementation, conversion from legacy system and employee training.
4a. Post mortem review - Operations and maintenance: used and monitored on an ongoing basis while modifying when necessary.
Business Process Analysis
P1.F.3 Technology-Enables Finance Transformation
- Important part of systems analysis
- Analyzing efficiency and effectiveness of a particular process
- Increase efficiency in existing system or lead to new system adoption
- Results in better documentation and understanding of bottlenecks.
- How managers can improve processes or create better solutions.
Accounting Specific Technology
P1.F.3 Technology-Enables Finance Transformation
- Systems integration
- Optical Character Recognition (OCR): can read paper receipts in order to capture and understand relevant figures.
- Artificial intelligence
Artificial Intelligence Capabilities
P1.F.3 Technology-Enables Finance Transformation
- Auto scan and capture data
- Predictive engines can suggest entries that need to be confirmed rather than manually input.
- Data mining for trends and insights
- In the future, recommend decisions
- Route data searches
Robotic Process Automation (RPA)
P1.F.3 Technology-Enables Finance Transformation
Software to perform tasks previously performed by humans.
- Can be deployed with many types of systems
- Automates work using existing systems
- Same benefits as other forms of automation
- Doesn’t require new enterprise system
- Useful for repetitive tasks with closed-ended solutions
- Not useful for decisions in open-ended problems.
Cloud Computing
P1.F.3 Technology-Enables Finance Transformation
System in which applications and content are accessed remotely via web browser as opposed to local installation on users machine.
- Costs less than local solutions (economic efficiency)
- Shares capacity of powerful processors
- Distributed information security
- Eliminates issues with different versions
Software as a Service (SaaS)
P1.F.3 Technology-Enables Finance Transformation
Business model in which businesses lease software instead of buying.
Advantages
- Automatic updates
- More frequent updates
- Preferable cost model for infrequent use
Disadvantages
- Customer never owns
- Risk of integration breaking
- Can confuse existing users
- Relies on internet connection
- Latency
Distributed Ledger
P1.F.3 Technology-Enables Finance Transformation
- Replaces need for central data authority.
- Relies on consensus of many ledgers
- Removes needs for intermediaries
- Holds promise for both simple and complicated transactions
- Reduces possibility for fraud
- Introduces trade-offs around privacy
- Eliminates issues with different versions.
Blockchain
P1.F.3 Technology-Enables Finance Transformation
- Type of digital ledger
- Groups data into ‘blocks’ containing ledger
- Currently suffers from scalability problem
- Bitcoin: most famous example (proof of work, supply cap)
Smart Contracts
P1.F.3 Technology-Enables Finance Transformation
- Framework for governing repeatable transactions with fixed parameters.
- Allows automatic settlement without escrow, etc.
- Analogous to vending machines
- Implementation: define terms and automatically disburse payments
