Chapter 12: Digital strategy - digital technologies

Question 1

What is disruptive technology?

Answer 1

Relates to instances where technology is used to funamentally change and ‘disrupt’ the existing business model in an industry

Question 2

What are the advantages that organisations have if they are using financial technology?

Answer 2

Better use of data
Frictionless customer experience using elements such as smartphone apps to provide a broad and efficient range of services
More personalisation of products/services to individual customers
Lack of physical presence
Access to cheap capital to fund growth

Question 3

What should business leaders focus on in developing digital strategies?

Answer 3

Internet of me
Outcome economy
Platform (r)evolution
Intelligent enterprise
Workforce reimagined

Question 4

What is the internet of me?

Answer 4

Users are being placed at centre of digital experiences through apps and services being personalised

Question 5

What is outcome economy?

Answer 5

Organisations have an increased ability to measure the outcomes of the services that they deliver. Customers are more attracted to outcomes than just simply to products.

Question 6

What is platform (R)evolution?

Answer 6

Global platforms are becoming easier to
establish and cheaper to run. Developments such as cloud computing and mobile technology offer huge potential for innovation and quicker delivery of next-generation services.

Question 7

What is the intelligent enterprise?

Answer 7

using data in a smart way enables organisations to become more innovative and achieve higher degrees of operating efficiency

Question 8

What is workforce reimagined?

Answer 8

whilst greater use is made of smart machines, the role of human beings is not being removed altogether; they are simply being used in a different way.

Question 9

What are the myths about digital transformation?

Answer 9

Those organisations that are nto digital already have missed their chance
Becoming a digital business is an administrative excercise that focusses on achieving operational efficiencies
Digital transformation can be successfully achieved just by creating a digital business unit headed by a Chief Digital Officer

Question 10

What is AI?

Answer 10

Area of computer science that emphasises the creation of intelligent machines that work and react like human beings.

Question 11

What is machine learning?

Answer 11

Detect patterns and learn how to make predictions and recommendations by processing data and experiences, rather than by ecplicit programming instruction.

Question 12

What are the three types of machine learning?

Answer 12

Supervised Learning
Unsupervised Learning
Reinforcement Learning

Question 13

What is supervised learning?

Answer 13

Algorithm uses training data and feedback from humans to learn the relationships of given inputs to given outputs.

Question 14

What are the three steps to how supervised learning works?

Answer 14

1. Human labels every element of the input data and defines the output variable
2. Algorithm is trained on the data to find the connection between the input variables and the output
3. Once training is complete then the algorithm is applied to new data

Question 15

What is unsupervised learning?

Answer 15

Algorithm interrogates input data without being given any explicit output variable.
This can be used when there is not known classification of the data, and the user wants the algorithm to find patterns and classify the data for them.

Question 16

What are the three steps for using unsupervised learning?

Answer 16

1. Algorithm receives unlabelled data
2. Algorithm then infers some sort of structure on the data
3. Algorithm identifies groups of data that exhibit similar behaviour

Question 17

What is reinforcement learning?

Answer 17

Algorithm learns to perform a task by trying to maximise the rewards it receives for the actions it takes.
It can be used when there isn’t a lot of training data available or the only way to learn abut the environment is to interact with it.

Question 18

What are the three steps for reinforcement learning?

Answer 18

1. Algorithm takes an action on the environment
2. Receives a reward if the action taken brings the machine a step closer to its objective
3. Algorithm optimises for the best series of actions by correcting itself over time.

Question 19

What are the benefits of cloud and mobile computing?

Answer 19

Store and share data
On-demand self-service
Flexibility - employees no longer need to be ‘plugged into’ work networks
Collaboration
More Competitive
Easier scaling
Reduced maintenance
Back-ups
Disaster recovery
Better security

Question 20

What are the risks of cloud and mobile computing?

Answer 20

Reliance on the service provider
Regulatory risks
Unauthorised access of businss and customer data

Question 21

What is the internet of things?

Answer 21

Described as the inter connection via the internet of computing devices embedded in everyday objects, enabling them to send and receive data

Question 22

What is big data?

Answer 22

Collection of data which is so large that it becomes difficult to store and process using traditional databases and data processing applications

Question 23

What are some examples of data that inputs into big data systems?

Answer 23

Social network traffic
Web server logs
Traffic flow information
Satellite imagery
Streamed audio content
Banking transactions

Question 24

What are the 3V’s of big data?

Answer 24

Volume - refers to the amount of data
Variety - comes from numerous sources
Velocity - data is likely to change on a regular basis and needs to be continually updated

Question 25

What are the benefits of big data?

Answer 25

Driving innovation - by reducing the time to answer key business questions and make decisions Gaining competitive advantage - by identifying trends Improving productivity - by identifying waste and inefficiency

Question 26

What is blockchain?

Answer 26

Decentralised, distributed and public digital ledger that is used to record transactions across may computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.

Question 27

What is the benefit of blockchain?

Answer 27

Security

Question 28

What are the key features of blockchain?

Answer 28

Transactions are recorded by a number of participants using a network which operates via the internet When transaction takes place the details of that deal are recorded by everyone Process of verifying the transaction is carried out by computers When a new block is added, it is linked to the previous block using a cryptographic hash generated from the contents of the previous block.

Question 29

How can blockchain enhance the accounting profession?

Answer 29

Reducing cost of maintaining and reconciling ledgers Providing absolute certainty over the ownership and history of assets Helping accountants gain clarity over available resources Freeing up resources to concentrate on planning and valuation, rather than record keeping

Question 30

What is data visualisation?

Answer 30

General terms that describes any attempt to take data and help people to understand it better by presenting it in a visual context. Helps organisations to understand their home-grow data in more detail and therefore to exploit it better to achieve growth and flexibility.

Question 31

What are some common general types of data visualisation?

Answer 31

Charts Tables Graphs Maps Infrographics Dashboards

Question 32

What is 3D printing?

Answer 32

Additive layer manufacturing (ALM) is a process whereby three-dimensional solid objects are created from digital files

Question 33

What are the benefits of 3D printing?

Answer 33

Reduced waste Eliminate transport costs Less environmental impact Shorter lead times Greater customisation Increased profitability Social benefits

Question 34

What are the problems associated with 3D printing?

Answer 34

Cost Quality concerns Lack of skills Legal concerns Environmental impact Ethical concerns

Question 35

What is process automation?

Answer 35

Refers to use of digital technology to perform a process or processes to accomplish a workflow or function. Processes that used to be manually become automated

Question 36

What are the benefits of process automation?

Answer 36

Productivity Accuracy Consistency Audit trail Flexibility Staff retention Availability Cost savings

Question 37

What are the challenges of process automation?

Answer 37

Lack of integration in IT systems Lack of standardisation Reluctance to reduce headcount Cost Lack of skills