Topic 2D: Technological Factors Flashcards
What are the different ways new structures are brought about through technology in business?
Downsizing
Delayering
Outsourcing
Offshoring
Shared service centres
What is downsizing?
Reducing the headcount in an organisation by making job cuts. This has been driven by about by automation, where routine tasks that were once performed by labourers are now performed by robots. Corporate strategy now looks to reduce the number of workers needed by using technology to perform their role or make them more productive.
What is delayering?
The removal of layers of middle management, where managers or staff lower down the hierarchy are empowered to make decisions previous made by middle managers. Corporate strategy now relies technology to make decisions previously made by managers or to support lower level staff in taking such decisions
What is outsourcing?
The contracting out of specified operations or services to an external vendor. Corporate strategy now focuses on performing core business activities and using third parties to perform non-core activities .
What is offshoring?
Migrating some part of an organisations activities to another country - offshored activities are still operated by the business itself but wherethere are cheaper labour rates or specialist workers not available in home country
What are shared service centres?
Centralising operations that previously existed in more than one part of the organisation. Referred to as internal outsourcing. Corporate strategy looks to improve productivity of workers and the quality of work by setting up specialist teams that perform tasks for the rest of the business (for example a dedicated finance team that peforms all of the finance tasks for the whole organisation rather than having individual finance team located in diffferent of functional areas)>
What is the impact of technology on the role of the accountant a.) Routine processing?
Technology developed allows bookkeeping work to be automated and process
What is the impact on the role of the accountant oF digital information and record keeping?
Information is now longer paper based and can now be analysed in much greater detail.
What is the impact of the role of the accountant on skills required and ways of working?
Role of the accountant is more about analysing information AND Can be remote in the way they work.
What is the impact of the role of the accountant on reliance on IT?
Work is computer based.
What is the impact on accountants on methods of communication?
There are new methods of communication and providing customer service.
What is the impact on accounts in terms of viewing information ?
Now viewed as a valuable resource and as a commodity.
