E. Finance Interacting With The Organisation Flashcards
(247 cards)
1
Q
The finance function relate to other functions?
A
provide information
Provide insight about value creation
Influence and shape how function preserves value
Achieve desired organisational impact
2
Q
What is an operations function?
A
Activity is concerned with the acquisition of raw materials, the conversion into finished products and the supply of that finished product to the customer
“what the company does”
3
Q
Explain the operations processes in four steps
A
- input resources
- transformation process
- output products and services
- customers
4
Q
What is operations management?
A
Activities involved in designing, producing and delivering products and services that satisfy the customers requirements
5
Q
Operations management and IKEA: explain how operations management improved IKEA’s business?
A
Self assembly innovators operations and reduce selling costs
Showing in warehouse concept allows customers to pick up furniture themselves
Operations managers are involved in numerous activities: process design, product design, job design, supply network design, supply chain management, capacity management, failure prevention, inventory management, quality monitoring, operations improvement
6
Q
What are processes in operations?
A
A collection of processes that are building blocks of operations and connect with one another to form a network
The process of transferring the input resources into output products/services
7
Q
Name the inputs, processes and outputs for the following operations:
Airline
Department store
Police
Frozen food manufacturer
A
See pg 213
8
Q
What are the four Vs of operations processes?
A
Volume of inputs and outputs
Variety of inputs and outputs
Variation in demand
Visibility to customers
9
Q
Describe how volume dimensions make a difference at McDonald’s?
A
Volume implications:
– repeatability of tasks
– systemisation of the work
As tasks are systemised and repeated it’s worthwhile developing specialise fries and others
This gives lower unit costs
10
Q
What is Porters value chain model based around?
A
The value chain model is based around activities rather than traditional functional departments e.g. operations or finance
11
Q
How are the activities on Porter’s value chain split?
A
Primary activities – customer can see value creation in these activities
Secondary activities – support primary activities by improving efficiency and effectiveness
12
Q
How is the margin achieved in Porters value chain?
A
If the customer is willing to pay more for the product/service than the sum of all the costs of all the activities in the value chain
13
Q
Draw Porters value chain
A
Primary activities across the bottom
Support activities dropping down from the top
Tip of Pentagon is margin
See page 215
14
Q
What are the primary activities of Porters value chain?
A
Inbound logistics – receiving, storing and handling raw material inputs
Operations – transformation of raw materials into finished goods and services
Outbound logistics – storing, and distributing and delivering finished goods and services
Marketing and sales – mechanism by which the customer is made aware of the product or service
After sales service – all activities that occur after the point of sale, such as customer enquiries, returns and repairs
15
Q
Which primary activities is operations management concerned with on the value chain?
A
Inbound logistics, operations, outbound logistics, and after sales service
i.e everything except marketing
16
Q
What are the support activities of Porters value chain?
A
Infrastructure – how the firm is organised
Human resource management – how people contribute to competitive advantage e.g. recruitment, selection, training and development and reward policies
Technology – how the firm uses technology
Procurement – purchasing, but not just limited to materials e.g. a new building
17
Q
Which support activities is operations management directly concerned with?
A
Procurement and some elements of infrastructure and technology development
18
Q
What are the different approaches to value chain?
A
One manufacturer might add value and hopes that they can charge a premium
Another manufacturer might help to gain economies of scale thus selling at a cheaper price
19
Q
What do you linkages in the value chain do?
A
They connect interdependent elements of the value chain e.g. better quality production could reduce the need for after sales service
20
Q
What is process design?
A
The method by which individuals specialists seek to understand business processes and ensure that these processes are designed to be efficient and effective as possible
The design of these processes will go hand-in-hand with the design of new products and services
21
Q
What is a process map?
A
It provides a visual representation of the steps and decisions by which a product/transaction was processed
Can assist in examination before process design
22
Q
What are the advantages of process maps?
A
Management understanding – better understanding of the basic processes that are undertaken that’s providing management with the convenient overview demonstrating responsibilities and key stages
Role understanding – allows workers to understand what their job is and how it fits in the whole process. Can also help with role reallocation
Standardisation – highlights where opportunities exist to standardise processes
Highlights and efficiencies – visually highlights areas where inefficiencies are present through analysis of cues, value and location does pinpointing areas of waste. Provides an agenda to tackle duplication, requirement of a necessary paperwork, and misdirected queries that hold up production
Supports corporate initiatives – nothing can be used as a tool as part of a corporate initiatives such as customer satisfaction improvement programs
23
Q
What is the first stage of product and service development?
A
Stage 1: consider customers needs
Product to satisfy the needs of the customer e.g. VFM, high quality, cutting edge design
24
Q
What is the second stage of product and service development?
A
Stage 2: concept screening
The product/service concept should be vetted.
It will only pass through to the design and development process of mean certain criteria e.g. is it profitable?
25
What is the third stage of product and service development?
Stage 3: the design process
This may include procedures such as:
– building a physical prototype (using CAM)
– value engineering i.e. ensuring that all the components/features add value
26
What is the fourth stage of product and service development?
Stage 4: time – to – market
A short time to market is desirable sense:
– new product/service may be released ahead of competitors
– development costs may be lower
27
What is the fifth stage of product and service development?
Stage 5: product testing
The new product should be tested before it’s released market:
– does it work properly?
– do customers like it?
28
Name two ways that companies can understand customers needs better
– CRM: customer relationship management systems will allow this either directly or via surveys or more softly via prudent logging of Customer sentiment
– more radical solutions e.g. customer portal idea of crowdsourcing validation used at Lego
29
How does purchasing coordinate with the finance function?
Establishing credit terms– Liaise with suppliers to obtain credit card or negotiate credit terms
Prices– Advise purchasing on max price that should be paid to maintain margins
Payment– Payment to be approved by purchasing but made by finance
Data capture e.g. orders– All the details input by purchasing and passed on to finance
Inventory– Purchasing will consult with inventory section of finance to determine quantity in stock and therefore quantity required
Budgeting:The finance function will consult with purchasing and the likely costs in preparing budgets
30
How does production of the operations function coordinate with the finance function?
Cost measurement, allocation, absorption-Production Measures quantities of material and time used; management account and gives a monetary value to them. Cost of then allocated and absorbed to calculate production costs based on advice given about production
Budgeting – production or decide on quantities produced and finance will determine costs are incorporate it in the overall budget
Cost best quality– Functions will discuss the features that can be included and products and materials that should be used. They should agree with better quality materials and features justify the extra cost and how to Max quality and profit
Inventory – production will liaise with the inventory section of finance to ensure that there are sufficient materials for production that is planned
31
What are the four main characteristics of services?
Intangibility - physical aspects
Inseparability - Created same time they are consumed therefore inseparable from person/organisation providing service
Perishability– Services cannot be stored for later
Variability– Every services is unique and cannot be repeated in the same way making standardisation difficult
32
What are the issues where service departments may need input from the finance function?
Charge out rates: hourly rates which should be higher than salary as it should include a share of overhead e.g. training and any profit the company wishes to make. However the higher charge out rates may cause customers to go elsewhere
Estimating costs: problems may arise in determining amount of overhead included in charge out rate. Also services take longer than expected the company may not be able to pass on extra cost
Problems Measuring benefits: market conditions may mean charge out rate contains a low profit element and may lead the company to question whether it’s worth carrying out the services. Due to intangibility they’re not easy to measure
33
What is the supply chain?
It consists of a network of organisations.
Together they provide and process the necessary raw materials firstly into work in progress and then into finished goods for distribution and sealed to the end customer
34
What are the four stakeholder stages of supply chain?
Raw material supplier
Manufacturer
Wholesaler and retailer
Customer
35
What activities does the transformation of the product along the supply chain include?
```
Product planning
Purchasing
Materials management
Distribution
Customer service
Forecasting
```
36
What is supply chain management (SCM)?
It involves the coordination of activities from the suppliers of all materials at one end of the supply chain to customers at the other end
It seeks to save costs while adding value
37
Explain how Provenance uses block chain to increase supply chain transparency?
Provenance
– start-up tech firm tracking journey of organic food
-Hopes to give users the products complete supply chain journey
-pilot uses blockchain tech
-leaves out app as info of products journey is instantaneously
available
– The tech will be available both on product packaging and on the shop shelf
38
What does cousins model emphasise the importance of?
Doing supply as central to the organisation and its effectiveness
Additionally supply was viewed as an operational issue i.e. purchasing was seen as an administrative task
In today’s competitive environment it is seen as a strategic issue
39
What notion is Cousins thinking based on?
The notion that an organisation supply strategy should involve a number of key areas i.e. spokes in the wheel
As such the model can help an organisation concentrate on key areas for attention and action
Model-strategic supply wheel
Key areas-spokes
Corporate supply strategy-hub of wheel I.e balances spokes
40
What are the five spokes of cousins strategic supply wheel?
Organisation structure: choice of structure impacts control and interaction, should enhance rather than hinder supply strategy
Relationships with suppliers: should be competitive (contractual) or collaborative (relational)
Cost/benefit: decision should be based on benefits as well as costs
Competencies: necessary skills?
Performance measures: necessary for monitoring and controlling start strategy chosen and measures should extend beyond price and be aligned with strategy
41
What are Cousins two broad approaches to supply relationships?
Competitive: contractual
Collaborative: relational
42
What defines competitive relationships with suppliers?
This was the typical nature of relationships in the past
– lowest price applies through tendering use of power or switching
– heavy penalty clause if there was mistrust with supply contracts
– knowledge and skills of supply could not be exploited
Therefore no single supplier knew enough about the ultimate customer to suggest ways of improving cost effectiveness or quality of relationship
43
Describe the collaborative supplier relationship of cousins wheel?
Change in the past couple of decades from competitive to collaborative relationship to improve job satisfaction and increase market share
– enter partnerships with key customers and suppliers to provide better understanding of services
– product design process includes discussions with customer and supplier
– enHance the nature of collaboration and reward suppliers with long-term sole sourcing agreements
– nature of collaboration needs to shift to reflect Constant change
44
What recent changes in the UK are impacting on supply chain collaboration?
– A volatile political and economic climate
– increased urbanisation in the UK
– a dramatic change in consumer behaviour i.e. preference for convenience and online shopping
– a growth in automation
– shift towards digitisation
45
What is material requirements planning?
MRP is a computerised system for planning the requirements for all materials, work in progress and finished items
46
What three questions is MRP designed to answer?
What is needed?
How much is needed?
When is it needed?
47
What are the functions of MRP?
– Identifying firm orders and forecasting future orders
– using orders to determine quantities of materials required
– determining the timing of the material requirements
– automatically placing purchase orders
– scheduling materials for future production
48
What are the benefits of MRP?
Improved forecasting
Improved ability to meet orders leading to increase customer satisfaction
Reduced stockholding
Schedule can be amended quickly if demand estimates change since the system is computerised
System can warn of purchasing or production problems due to bottleneck or delays in the supply chain
Close relationship tends to be built with suppliers i.e. consistent with just-in-time
49
When is MRP not suitable?
If it is not possible to predict sales in advance
50
Name two technologies that have been developed from MRP
Manufacturing resource planning (MRPII)
Enterprise resource planning (ERP)
51
What is MRPII?
Goes several steps beyond MRP - manufacturing resource planning
```
Includes:
– production planning
– machine to scheduling
– demand forecasting and analysis
– quality tracking tools
– employee attendance
– productivity tracking
```
52
What is ERP?
Technology that is the next evolution of an MRP system
Integrate information from many aspects of operations and supports functions into one single system
53
What are the benefits of ERP?
- identification and planning of the use of resources across org to provide better service
- free flow of information across all functions and improved communication between depts
- aids mgmt decision making due to decision to support features
- can be extended to incorporate SCM and CRM softwares this helping manage org connections
54
How do you define quality?
– Is the product free from errors and does it adhere to design specification? (industrial context)
-Is a product/service fit for use?
– Does the product/service meet the customers needs?
55
How do Japanese companies define quality?
How does Juran?
How does Ken Holmes?
Jap definition:‘Degree of conformance to standard’ was too narrow so use new definition of ‘user satisfaction’
Juran: ‘Fitness for use’
Holm: ‘The totality of features and characteristics of a product or service which bears on its ability to meet stated or implied needs’
56
What is Pret A Manger is focus on quality
The secret is to continuously focus on quality in every aspect of the operations practice
– avoid chemicals and preservatives
– fresh food
– reject centralise sandwich factory i.e each store has its own kitchen
– build great teams through rewards and career opps
-use customer feedback in weekly meetings and daily briefs
57
Who can we attribute the growth of global companies resulting in dramatic improvement of quality to?
Japanese manufacturing companies
58
Who are the three key writers on quality?
W.Edwards Deming
Joseph M. Duran
Philip P. Crosby
59
What main contribution to quality did Deming have in terms of beliefs and what was he credited with the creation of?
Believed:
– managers should continuously improve systems in which people work
– managers should work with employees to gain their feedback
-workers should be trained in quality to identify what needs changing and how
Credited with creation of TQM in Japan and developed 14 points for quality improvement
60
What principle did Juran draw on and what was his argument about quality focus?
– Pareto principle: stated that 85% of quality problems are due to the systems employees work within rather than the employees
– Therefore, need to develop key projects for dealing with quality problems rather than concentrating on employee motivation
– quality should focus on the role of the customer i.e. anyone affected by the product
61
What concept of Crosby introduce? What did he think was the key quality and what did he argue for?
– Introduce the concept of “zero defects “
– believe that prevention is key and importance of quality is measured by the cost of not having quality
– argued for worker participation and need to motivate individuals to do something about quality
62
What are the four main types of quality related costs that the organisation needs to identify?
Costs of conformance:
– prevention costs
– appraisal of costs
Cost of nonconformance:
– internal failure costs
– external failure costs
Businesses should monitor the costs and set targets for each of them
63
What is the prevention cost?
The cost of implementing a quality improvement program to prevent defects before they occur
Should lead to continuous improvement
Examples:
– cost of designing products and services with built in quality
–Cost of training employees and the best way to do the job
– cost of equipment testing to ensure it conforms to quality standards required
64
What are appraisal costs?
The cost of quality inspection and testing
Example: inspection and testing of purchase material or service
65
What are internal failure costs?
Costs arising from the failure to make quality standards BEFORE the good reaches the customer
Examples:
– cost of scrapped metal due to poor quality
– cost of reworking
– reinspection costs
– lower selling prices for low quality products
66
What are external failure costs?
Costs arising from the failure to make quality standards AFTER the good reaches the customer
Example:
-Cost of recording and correcting products
– cost of lost goodwill
67
What are seven quality focus techniques used for operational improvement?
```
Statistical process control
TQM
Kaizan
Six Sigma
Lean thinking
Just-in-time
Reverse logistics
```
68
What is SPC in manufacturing?
A method for measuring and controlling quality during a process
Real-time data is plotted on a graph with predetermined targets and control limits
Any variation within the control limits is due to natural variation and is expected
Data outside of the control limit should be investigated and corrective action taken before defect occurs
69
How is SPC used for Mars bars?
Used as a large number of items are produced
– target weight for Mars bar : 51g
– control limits above or below : 1g
–investigate any outside limit: above 52 or below 50
X axis: bars sampled
Y axis: weight
70
What is TQM and when did it originate?
Total quality management is a CONTINUOUS IMPROVEMENT in quality, productivity and effectiveness obtained by establishing management responsibility for processes as well as outputs. In this, every process has an identified process or not every person and entity operates within the process and contributes to his improvement
Philosophy of quality management that originated in 1950s Japan
71
What are the four fundamental features of TQM
Prevention of errors before they occur: get things right first time, increase in prevention costs but decreasing in internal and external costs
Continual improvement: not a one off process, continuous examination improvement
Real participation by all: the “total” TQM means that everyone in the value chain is involved in the process including employees, suppliers and customers
Commitment of senior management: management must be fully committed and encourage everyone else to become quality conscious
72
Who is involved in TQM value chain process improvement and how?
Employee – seek out, identify and correct quality problems. Teamwork is vital and they should be empowered to decide how best to do the work and be responsible for achieving targets
Suppliers – quality and reliability of suppliers will play a vital role
Customers – goal is to identify and meet the needs of customers
73
How was Corning Inc a TQM success and how was British telecom a TQM failure?
Corning Inc
– world leader in specialty glass and ceramics due to TQM
– 1983:1 .6 billion investment in TQM including intensive training and decade of applying TQM
– all employees bought into quality concept
– impact of techniques lead to profits soaring
BT
– launched total quality program in late 1980s
– got bogged down in quality processes and You’re a Chrissy
– failed to focus on customers and dismantled TQM program
– great cost to company as they failed to make a full recovery
74
What are the six steps to implementing TQM?
1.thesenior management consultancy
– managers must be committed and should undergo quality training
2.establish quality steering committee
– committee will guide the company through the process of implementation
3.presentations and training
– the steering committee should communicate the benefits to employees to gain buying
4.establish quality circles
– this will involve employees in the process of quality improvement
5.documentation
– The actions carried out should be clearly documented
6.monitor progress
– actual results to be monitored against the standard set
75
What is the Kaizan philosophy?
Japanese term for the philosophy of continuous improvement in performance by a small, incremental steps
76
What are the characteristics of a Kaizen philosophy?
– setting standards and then continually improving the standard to achieve long-term sustainable improvements
– focuses on eliminating waste, improving processes and systems and improving productivity
-employees often work in teams in our empowered to make changes. Employees are a source of ideas so a change in culture is required to encourage them to suggest
– Allow the organisation to respond quickly to changes in the competitive environment
77
How have Japanese companies introduced a Kaizan approach and what is its effect?
In company such as Toyota and Canon, 60 to 70 suggestions put employer written and shared annually
It’s not unusual for over 90% of the suggestions to be implemented
78
How was British cycling revolutionised through small, incremental improvements?
- Sir David Brailsford became performance director
- believed huge cumulative gains could be achieved by making 1% improvements in many areas
- made marginal changes by looking for weaknesses
Examples:
- paint paint floor white to spot impurities which stopped dust affecting aerodynamics
- made employees use antibacterial gel to reduce illness
- team bus redesigned to improve comfort and recuperation
Lead to multiple Olympic medals and Tour de France wins since 2012
79
How is continuous improvement different from business process re-engineering (BPR)?
BPR:Radical one-off changes
Concepts of continuous improvement:
– organisation should always seek perfection
– search for perfection ingrained into culture and mindset of employees
– individual improvements identified by workforce will be small rather than far reaching
80
What is the six Sigma approach? What is the aim?
Quality management program pioneered in the 1980s by Motorola
Aim is to achieve a reduction in the number of faults that go beyond and accepting tolerance limit through the use of statistical techniques
Sigma equals standard deviation: if the error rate lies beyond the sixth stigma of probability, there will be fewer than 3.4 defects in every 1 million
This is the tolerance level set and is almost perfection and Is close to perfection as customers will complain fewer than 4 times per million
81
How can the hospital use the six Sigma process to improve patient waiting times?
– Patients do not want to be called before the appointment time (lower limit = 0 minute wait)
– maximum length of time they are prepared to wait after appointment is 30 minutes (< 30 mins)
X axis length of weight after appointment
Y-axis is frequency
Bell curve with mean at peak
0 min wait
82
Key requirements for successful six Sigma implementation
– Focused on customer and based on the level of performance acceptable to Customer
– target for process should be related to the main drivers of performance
– to maximise savings, six Sigma needs to be part of a wider performance management strategy which is adding to the strategy of the organisation. Doing things better and different
– senior managers have a key role in driving process
– training and education about process is essential for success
– set a target target but except some Failure: target is 0 defects, 3.4 failure in a million expected
83
What are the criticisms/limitations of six sigma?
– Criticised for its focus on current processes and reliance on data
– based on use of models which are by their nature simplification the real life, judgement needs to be applied
– approach can be time-consuming and expensive
– culture of organisation must be supportive of the scientific process
– heavily data driven which could become overly bureaucratic
– important to ensure that this does not become jargon
-assumes current process can meet expectations not if it is right process
84
What is the lean thinking quality approach?
It is a philosophy that aims to systematically eliminate waste with identification and elimination of all non-value adding activities
85
How did lean production help Toyota?
60 years ago, Toyota was making uncompetitive cars in both cost and quality
To catch up with American competitors are developed lean production
This lead it to become in the biggest car manufacturer in the world
86
What wastes can be eliminated through lean thinking?
Inventory – holding or purchasing and necessary materials
Waiting – time delay/idle time when value is not added
Defective units – production of a part that is scrapped or requires re-work
Effort or motion – actions with people/equipment that do not add value
Transportation – delays in transportation on necessary handling due to poor planning or factory later
Overprocessing – unnecessary steps that do not add value
All the production – produce more than customers have ordered
87
Characteristics of lean production
Improve production scheduling: demand pull production, not supply push
Small batch production or continuous production: based on customer demand so highly flexible and responsive processes
Economies of scope: economical to produce more batches of a variety of products, contrast with traditional manufacturing economies of scale
Continuous improvement: reduce process times
Zero infantry: just-in-time production
Zero waiting time: reducing lead time
88
How did lean management improve the customer experience in the NHS?
Patient perspective: value defined solely from customer’s perspective, any thing That helps treat patient is value adding, anything else is a waste
Pull: to create value NHS aims to provide services in line with demand
89
Is the main objective of the lean supply chain?
What are the other benefits?
What are the disadvantages?
Main objective: to completely remove waste in order to achieve competitive advantage for a reduction in costs and improvement in quality
Benefits:
– reduced inventory thus increasing cash flow and profits
– shortly lead times thus faster deliveries
– few bottlenecks leading to profit improvement
– few quality problems
Disadvantages:
– potential for large, powerful customers to dominate supply chain
– over emphasis on cost reduction rather than quality improvement
90
What are the criticisms and limitations of lean manufacturing
High initial outlay: changing systems, old equipment, training employees
Requires a change in culture: philosophy/culture of working, need employee commitment
Part adoption: companies might select some parts and not others
Cost may exceed benefit: lower cost and shorter lead times might not materialise or might be smaller than expected
91
What is lean synchronisation?
Aims to meet demand instantaneously with perfect quality and no waste
Overlaps to a large degree with the concept of lean thinking (eliminating waste) and just in time (pull production)
92
What is the just-in-time system?
The system is objective it is to produce or procure products or components as they are required by the customer or for use, rather than for inventory
This means inventory levels of raw materials, work in progress and finished goods can be kept to a minimum
93
How does just-in-time apply to production within an organisation and purchasing from external suppliers?
JIT purchasing: Involves ordering materials only when customers place an order so good to go straight to production
JLT production: driven by demand for Finished product whereby each component is only produced when needed for the next stage
94
How does Toyota use just-in-time manufacturing?
Supply some parts daily
Notified electronically when assembly line is running out
400 trucks a day
Long-term relationship with suppliers and has a stake in most of them
95
Requirements for successful just-in-time system?
```
High quality and reliability
Elimination of non-value-added activities
Speed of throughput
Flexibility
Lower costs
```
96
What are the advantages of a just-in-time company developing better relations with the supplier?
No reject/returns
OnTime deliveries
Low infantry
Close proximity
97
What are reverse logistics?
The return of unwanted or surplus goods, materials or equipment back to the organisation for reviews, recycling or disposal
98
How has Internet selling lead to more organisations focusing on the reverse logistics capacity?
Product some shorter life cycles
| Some Internet retailers estimate returns of 50%
99
What are some of the main reasons for reverse logistics?
```
Customer is not satisfied
Installation or usage problems
Warranty claims
Return unsold stock by retailer
Manufacturer recall
```
100
What are some techniques firms can use to attack the returns challenge?
Root cause analysis to understand returns
Create profit centres around returns process
Separate supply chain into forward and reverse logistics
Centralise return centre
Outsourcing returns process
Using your ERP to support reverse logistics
101
How did Estee Lauder reduce the amount of products they were dumping into landfills?
Made a small investment of 1,300,000 to build a reverse logistics system
Recovered this investment in the first year
Reduce production by putting return goods back into market for a better data
Redistributed 150% more it’s returns in the next year
Saved about .5 million of labour costs
102
What opportunities are there for business partnering between finance and operations?
Strong alignment between supply change and broader strategy
CFO help set the right priorities and pace of growth
Monitoring and enhancing performance through establishing appropriate KPIs
Managing risk and business opportunity i.e. CFO and manager of supply chain
103
What is a CSF?
Critical success factors of vital areas 'where things must go right' for the business in order for them to achieve the strategic objectives
104
What are KPIs?
Key performance indicators of measures which indicate whether or not the CSFs are being achieved
105
What are the characteristics of good KPIs?
Cascade from strategy to tactics
Cover alls perspectives in supply chain management giving a well balanced view of all types of performance
Challenging but achievable
Smart i.e. specific, measurable, achievable, relevant and time bound
Extended to include supply chain partners
106
How do you calculate the following working capital ratios?
Inventory days
Payable days
Receivable days
Length of the cash operating cycle
Inventory days = inventory / cost of sales x 365
Receivables days = receivables / sales x 365
Payables days = payables / sales x 365
Cash operating cycle= inventory days + payables days - receivables days
107
How does the finance function help operations assemble information Through the use of KPIs?
Helps them set appropriate KPIs
Assembles data from internal and external sources
Processes data
Reports to relevant people
108
How does the finance function help operations analyse the insights through the use of KPIs?
Draw out patterns and relevant insights
| This question you may require individual KPIs to be broken down
109
How does the finance function help operations advise to influence through the use of KPIs?
Communicates insights
Helps develop solutions through contributing and objective and responsible perspective
Influences decisions made in operations function
110
How does the finance function help operations apply for impact through the use of KPIs?
Applies information to harness value for operations function through its impact
Solutions are deployed such as changes to operational strategy and future KPIs
111
How are technology and automation playing important role in the finance function having an impact on the assembly and analysis activities?
Enterprise data warehouse and access single source to assemble clean data and reports
Integrated tech can draw out patterns reducing the analysis role of the finance function
Or free of resources allowing more time for advising and applying
112
How has the fourth industrial revolution enhanced performance management in operations functions?
Easier linking of internal supply chain detail with external sources
Digitisation of supply chains
Web mining to report the most relevant data
Real-time data enabled by sensors
Data visualisation
Predictive measures
Improved analytics capabilities
113
What is the chartered Institute of marketing’s (CRM) definition of marketing?
The management process that identifies, anticipates and supplies customer needs efficiently and profitably
Key element is customer needs
114
What are the six steps of the market planning process?
1. situation analysis
2. review mission and objectives
3. set more objectives
4. devise an appropriate marketing strategy
5. implementation
6. review
115
Name 2 situation analysis techniques?
SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
PESTEL analysis
Political, economic, social, technological, environmental/ecological, legal factors that make up the external environment
116
What technique should be used to set marketing objectives that Are aligned with the company’s mission?
Smart
Specific, measurable, achievable, relevant and time bound
117
What techniques can a company use to close the gap between current performance and performance required?
```
Market research
Segmentation
Targeting
Positioning
Marketing mix
```
118
What is the definition of a macro environment?
Includes all factors that influence and organisation but it outside of their control
Popular analysis technique is PESTEL
119
According to Johnson and Scholes which social influences should be monitored?
```
Population demographics
Income distribution
Social mobility
Lifestyle changes
Consumerism
Levels of education
```
120
What is the marketing mix?
A set of controllable variables that are firm plans to produce desired results from its chosen target market
121
What are the seven Ps of the marketing mix?
```
Traditional 4:
Product - product features
Places - distribution channels, storage
Promotion - advertising
Price - price level, payment methods
```
Additional 3 for service industry’s:
People - inseparability means higher quality staff needed
Processes - how service is delivered
Physical evidence - make tangible service tangible I.e brochures, testimonials
122
What are some of the distinguishing features of service organisations?
– Services are intangible so it’s difficult to measure their quality
– cannot be stored or consumed immediately
– heterogeneity: maintaining consistent, standard output can be difficult
– inseparability: reinforce need for high-quality employees
– do not result in the transfer property: will need to convince Customer of benefits
123
What are the two main product issues to consider?
Product definition: main issue regarding product is to define exactly what it should be. This is done in three levels:
– core/generic product
– actual product
– augmented/extended project
Product positioning: how does it compare with competitors? Is Our product better? If so in what way?
124
Specify the three levels of product definition for a car
Core/generic product – personal transportation
Actual product – range of engine sizes, different body shapes, brand name, capabilities
Augmented product – warranty, discounted service contract, installation
125
Describe in detail the further considerations of the three levels of product definition
Core product:
- what are they really buying?
- use, benefit or problem solving service they are really buying
- need that is being fulfilled
Actual product:
-tangible product/service that serves as medium for receiving core benefits
Augmented product:
- measures taken to help consumer put actual product to sustained use
- installation, deliver, warranties, after sales service
126
What are the four key considerations (4 Cs) when pricing a product?
Cost – the price must be high enough to make profit
Customers – what are they willing to pay?
Competition – is our price higher than competitors?
Corporate objectives – e.g. price could be set low to gain market share
127
Give definitions of the following pricing tactics:
```
Cost plus pricing
Penetration pricing
Perceived quality pricing
Price discrimination
Going out pricing
Dynamic pricing
Price skimming
Loss leaders
Captive product pricing
```
Cost plus pricing- Cost per unit as calculator than mark up added
Penetration pricing-a low price is set to gain market share
Perceived quality pricing- high Price is set to reflect/create an image of high-quality
Price discrimination-Different prices are set for the same product in different markets
Going out pricing-Prices are set to match competitors
Dynamic pricing-Prices are altered in line with demand e.g.hotel/airline industries
Price skimming-High price set when new product is launched then dropped to increased demand once consumers are willing to pay more have been skimmed off
Loss leaders-One product may be sold at a loss when the expectation that customers will then go on and buy other more profitable products
Captive product pricing-This is used where customers must buy two products. First is cheap to try customers then second is expensive, once they are captive
128
What is the primary aim of promotion?
To encourage customers to buy the products by moving them along the AIDA sequence:
Awareness > interest > desire > action
It is essentially about market communication
129
What are four different promotional techniques that are part of the ‘promotional mix’?
Advertising
Sales promotion techniques
Personal selling
Public relations
130
What are the two polar views on advertising?
Advertising is ineffective and a waste of money only adding the companies costs
E.g. Rolls-Royce and Zara rely on other sources to form positive attitudes towards product, sometimes ads are unethical
Vs
But as it is so powerful and effective that is it is essential
E.g. walkers crisps and John Lewis
131
Explain the following forms of marketing communication:
```
Viral
Guerilla
Experiential
Digital
Search engine marketing
Social media marketing
Postmodern marketing
```
Viral:word of mouth, exponential growth e.g Dove ‘choose beautiful’
Guerilla : well thought out, highly focused, unconventional attack on jet targets e.g Gail Porter
Experiential: experience stimulating all senses, trigger positive memories e.g Carlsberg Brick Lane
Digital:Promotion via forms of electronic media e.g. email, website, Google search
Search engine marketing: promotion of organisations website by increasing visibility on search engine results pages
Social media marketing:Getting traffic or attention through social media sites
Post modern marketing: philosophical approach which focuses on giving the customer experience customised to them
132
What are the two key decisions under ‘place’?
Selling direct to consumer e.g buying flight ticket yourself
Selling indirectly to consumer e.g sing Expedia, ticket agent
133
What is market research?
Systematic gathering, recording and analysing it for information about problems relating to the marketing of goods and services
Problems will relate to what customers and potential customers want, need and care about
134
What are the two types of data gathering techniques?
Secondary (desk) research: readily available
– internal sources
– external sources
```
Primary (field) research: collecting information direct from respondents
– questionnaires
– for interviews
– focus groups
– observation
```
135
what are the pros and cons of tech use in market research?
pros:
- secondary resources online
- conduct quality analysis through social media monitoring
- focus groups online
- insight gained faster and more comprehensively
cons:
- false impression that it is statistically reliable
- reliability and validity?
136
What is market segmentation?
Subdividing of the market into a margin this group is to accept marketing mix can be focused
137
What is the market segment? Why segment the market?
Market segment is a group of consumers with distinct, shared needs
Segment the market because:
-Identify which segment is more likely to go to support
– target a particular segment and split marketing budget accordingly
– identify new market opportunities or dominant one sector
138
What three criteria did Kotler suggest that segments must meet?
Measurable: possible to identify the number but is English so that potential profitability can be assessed
Accessible: possible to reach customers for promotion/distribution channels
Substantial: small market segments may be unprofitable
139
What are the four different bases for segmentation?
Demographic: age, gender, geographical location, family life-cycle
Socio-economic: Occupation and income
Psychological: lifestyle, attitudes, values
Situational/behavioural: occasion of use, frequency of purchase
140
What is targeting?
The process of selecting the most lucrative market segments for marketing the product
141
What Are the three types of targeted marketing approaches?
Concentrated marketing
– i.e. niche/target marketing
-specialise in one of the identified markets only
Differentiated marketing
– i.e. segment and marketing
– several products each aimed at a separate target segment
Undifferentiated marketing
– I.e. massmarketing
– single product to the entire market
142
What does positioning mean?
It involves the formulation of a definitive marketing strategy around which the product would be marketed to the target audience
143
What are Porter’s 4 positioning strategies?
Cost leadership
– low-cost, broad target
– aims to be the lowest cost producer and industry
Cost focus
– low-cost, narrow target
– pursuit of cost leadership strategy but focused on one particular segment only
Differentiation
-Broad target, high cost
– produce products which are different and appeal to customers on different grounds
Differentiation focus
– high cost, narrow target
-Pursuit of a differentiation strategy but focus on one particular segment only
144
What are the two areas the finance team has an opportunity to enhance performance of business partnering with the sales and marketing team?
Product/service development
| Product/service life cycles and costing
145
What Are the five stages of product/service development
1. consider customers needs
2. concept screening
3. design process
4. time to market
5. Product testing
146
What are the four stages of the product life-cycle?
1.introduction
– small number of individuals pay a high price for new product
– low revenue
– high expenditure
2.growth
-Revenue and profit grow as product an interest increase
– differentiate product and brand
– purchase costs and prices may fall due to colonies of scale and increase competitive pressure
– investment costs. The high
3.maturity
– longest and most successful stage of the life-cycle
– costs at all
– growth plateaus due to competition
– price cut in order to attract new customers
4. Decline
– few people purchase at end of life cycle as alternatives replace it
– exit the market and find profitable alternatives
147
What are the two main ways finance will interact with sales and marketing In terms of product life cycles?
Life cycle costing
– cost and revenue product and service over its whole life
Balanced portfolio
– products are different stages and life-cycle have different implications on resources, risk and strategy
148
How can block chain be used in the product life-cycle?
That offers the prospect of designing a data structure from the perspective of the product i.e. a single chain all vital data about that product over this whole life-cycle can be captured
149
How can the Internet of things be used to analyse the product life-cycle?
Maintenance and service I.e servicing data
Requirements management i.e. how product is being used
Product performance managing i.e. real performance data
150
How do you Google analytics and Hadoop extract value from big data?
Google analytics: trucks many features a website traffic
I do software: allows processing of large data sets by utilising multiple servers simultaneously, instant analysis
151
How did Oreo use real-time marketing?
Tweeted message during power outage in Super Bowl
| Received more interaction during this time
152
How to motor insurance and health and life insurance companies use data and customer behaviour to create new products?
Motor Insurance: you satellite centres and satnav is to refine pricing of insurance policies
Health/life insurance (vitality): link activity tracking device to online profile, points and for more activity, redeem points for treats like coffee and cinema visits
153
What are KPI dashboards and how they used?
KPI dashboards display the KPIs of the sales and marketing function in a life format that is allowing immediate understanding of her performance and potentially prompting action to correct or amend performance accordingly
Assist with data visualisation
Free up resource of finance function to ‘advise’ and ‘apply’
154
What is the HR function?
creation, development and maintenance of an effective workforce, matching the requirement of the organisation and responding to the environment
155
What is the HR plan?
strategy developed in the context of the organisation's overall strategic plan
156
Stages of HR plan?
1. Strategic analysis
2. Internal analysis
3. Identify the gap between supply and demand
4. Put plans into place to close the gap
5. Review
157
What is the HR cycle? (7 steps)
```
Recruitment
Selection
Training and development
Performance management
Incentive and motivation
Reward
Termination
```
158
What does recruitment involve?
attracting a field of suitable candidates for the job
159
What is a recruitment plan?
```
agree vacancy
job analysis
job description
person specification
source candidate
```
160
Recruitment in downturn?
Good recruitment:attract small number of highly suitable candidates
During downturn, more unemployment so harder to do so
161
What are some alternatives to recruiting?
```
promotion
secondment
closing job down (sharing duties)
rotating jobs
contracting job
```
162
Difference between job analysis and description?
analysis: study and description of tasks that make job
description: after analysis, what is required
163
What is a job description?
broad statement of the purpose, scope duties and responsibilities of the job
164
What are some sections included in a job description?
```
title
purpose
wage
duties
difficulties
position in hierarchy
working conditions
```
165
What is Alec Rodgers' 7-point plan for the content of a person specification?
BADPIGS
```
Background/circumstances
Attainments
Disposition
Physical makeup
Interests
General intelligence
Special attributes
```
166
How does the selection process work?
aimed at choosing the best person for the job from the field of candidates sources via recruitment
167
What are some selection interview methods?
```
face-to-face
group
succession of interviews
problem solving
panel interview
stress testing
```
168
What selection tests do candidates undertake?
proficiency and attainment: skills based
| psychometric: aptitude based
169
What does Bryan Appleyard say about the growth and usefulness of psychometric testing?
70% big firms use one of the big 4 tests
Firms don't trust uni degree standards anymore
Want to know motivations
Want best candidates
Help weed out unsuitables
Sceptics think personality is too complicated to test
conclusion: tests work if applied properly, rigorously and accompanied by other assessments
170
What do assessment centres entail?
candidates being observed and evaluated by assessors during exercises/trials
e.g group discussions, presentations, questionnaires, simulations, written tests, games, speeches, peer rating
171
What are the advantages of assessment centres?
```
high degree of acceptability and user confidence
avoidance of bias
reliability in predicting success
development of skills in assessors
benefits to candidates
```
172
What types of information should references contain?
Straightforward, factual information such as details of job
| Opinions about applicant's personality and attributes
173
What is the average UK employee turnover rate and cost?
15%
6.3k per employee
Main reason for leaving in first 6 months is poorly planned induction
174
What is the difference between training and development?
training: modification of behaviour through events, programmes and instruction to become more knowledgable in work
development: growth of person's ability through learning and education
175
What are the 5 steps to a training and development process?
1. Identify training and development needs
2. Set training objectives-targets
3. Plan the training-who/what/where of training
4. Deliver the training-programmes
5. Evaluate the training-feedback
176
What is Donald Kirkpatrick's four level model of evaluation of training?
level 1 : reaction
-how they feel
level 2: learning
-how much they learn
level 3: behaviour
-extent of implementing learning
level 4:results
-effect on business
177
What is performance management?
Assess and ensure employee is carrying out their duties in an effective and satisfactory manner
178
What are the four main steps to monitor when managing employee performance?
Set targets: for improvement, goals, training tagets
monitor-provide feedback
review-appraisal
action plan-new targets
179
What is appraisal?
systematic review and assessment of an employee's performance, potential and training needs
180
What are the six main barriers to effective appraisal according to Lockett?
```
Confrontation
Judgement
Chat
Bureaucracy
Annual event
Unfinished business
```
181
What do organisations mean by the term motivation?
willingness of individuals to perform certain tasks or actions
182
What are the 5 levels of Maslow's hierarchy of needs?
bottom to top:
```
Basic/physiological
safety/security
social
ego
self-fulfilment
```
183
What is Maslow's theory as people progress higher up the pyramid?
That money becomes less important and they want recognition and to achieve potential
184
What is the psychological contract?
outlines the perceptions of the employee and employer regarding what their mutual obligations are towards eachother
185
Difference between employment contract and psychological contract?
psych is not written down, legally binding and highly subjective
186
What are the key elements of the psychological contract for employees and employers?
employee wants needs satisfies
employer wants hard working employee
employee offers talents and energy
employer offers payment, benefits and other outcomes
187
How does Apple's talent management lead to amazing products?
creation culture
lean management style:tight deadlines and lean schedules for teamwork
rewards/recognition programme
Apple is clear it wants hard working employee
188
How does employee empowerment lead to quality?
Some quality practices rely on empowerment:
TQM-employees identify problems
Kaizen-employees suggest improvements
lean culture
JIT system uses highly skills and well trained staff
189
What is flexible working?
```
flexibility in working patterns:
wfh
flexitime
shift system
compressed week
job sharing
part-time
```
190
What is task/functional flexibility?
moving between tasks as and when required
firm can react to change in prod reqs and levels of demand
191
What is financial flexibility?
variable reward systems eg bonus schemes, profit sharing, commission
192
What are reward systems?
monetary, non-monetary or psychological payments that employers provide in exchange for work
193
Aims of a reward system?
```
support strategy
part of psychological contract
influences success in recruitment and retention policies
conform to relevant laws and regulations
must be affordable
administered efficiently and correctly
```
194
Methods of rewarding employees?
Basic pay
performance related pay
benefits
195
What are some examples of performance related pay?
```
individual performance related pay
group performance related pay
knowledge contingent pay
profit related pay
share options
commission
piecework-i.e each unit of output
```
196
What overlapping responsibilities are there between finance and HRM functions?
cost and benefit of recruitment
| impact of HR policies e.g reward systems
197
How has tech helped finance and HRM interact?
cloud system:easier and quicker to track key info and collaborate
advances in analytics:easier to quantify different HR activities or measure impact
198
What are some examples of KPIs that the HR function can use on their dashboard?
recruitment and selection process KPI
rewards KPI
employee turnover rates KPI
199
Examples of activity HR wishes to monitor and their KPIs?
recruitment and selection:cost per employee hired, selection method conversion, time to fill position, f to m ration
training and development: costs, impact on existing KPIs, feedback
performance management:appraisals completed in time, action plan
motivation: turnover rate, absenteeism, productivity satisfaction scores, flexi working arrangements
reward systems: cost, competitiveness, adherence to laws
200
Why do organisations need information systems?
to enable them to capture and generate the information that managers need for planning, control and decision making
provide competitive advantage
201
What are information systems?
provision and management of information to support the running of the organisation
202
What is information technology?
supporting equipment (hardware) that provides the infrastructure to run the IS
203
What is the IT function responsible for?
planning, evaluation, installing, operating and maintaining the hardware, software, networks and data centres required by the organisation
204
What is a management information system? (MIS)
converts internal and external data into useful information which is then communicated to managers at all levels and across all functions to enable them to make timely and effective decisions for planning, direction and controlling activities
205
What are the 4 different types of MIS?
Executive information system (EIS) - gives senior mgmt access to int/ext info, presented in summaries
Decision support system (DSS)-aids managers in decision making, predicts consequences and scenarios
Transaction processing system (TPS)-used by operational managers to make decisions, records daily transactions
Expert system -hold specialist knowledge e.g law and taxation, used by all levels of mgmt
206
What does a typical EIS report entail?
An executive information system would typically combine many types of data on the same screen and make it easier for senior management to understand the performance of the business
207
What is the difference between data, information and knowledge?
data- raw facts
info-processed, organised data
knowledge-application of a cognitive process to the info to make it useful
208
What is the difference between explicit and tacit knowledge?
explicit-knowledge company knows/has
| tacit-held by people within organisation that has not been formally documented e.g gained through experiences
209
What is knowledge mangement?
process of acquisition, sharing, retention and utilisation of knowledge
210
What is a knowledge management system?
any type of IT that helps to capture, store, retrieve and use knowledge to enhance the knowledge management process
211
What are some examples of knowledge management systems?
```
Groupware-software that helps collaboration
Intranets-private network
Extranets-extension of intranet
Data warehouses
DSS
Content management systems
```
212
How could technology simply increase the volume and management of unfocused data and analysed info?
If appropriate skills/processes focused on the conversion of this data into knowledge are not established
213
What does IT infrastructure consist of?
core networks, databases, software, hardware and procedures managed by the IT function
214
What factors influence the extent and pace of technology adoption in organisations?
- technical feasibility
- cost of developing, implementing and maintaining the new tech
- economic benefits of new tech
- availability of labour skills to implement use
- regulatory and social acceptance
215
In what ways can having good IT infrastructure in place enable organisational transformation?
- adoption of new ways of working across the business and industry e.g BPR, disruptive tech such as AirBnB
- productivity improvements e.g tech in farming
- multi-source data capture and analysis e.g big data in shops
- creation of shared service capability
- digitisation of information e.g in NHS
- flexible working
- virtual organisations/
216
How has digitisation improved the NHS?
```
fifth largest employer in the world
govt invested billions in going paperless
-electronic records
-online booking and prescriptions
-healthcare apps
-speak to doctor online or via video
```
217
Advantages to remote working?
- lower infrastructure costs
- increased employee motivation and productivity
- increased commitment to organisation
- attracting individuals
- reduced absenteeism and staff turnover
218
Disadvantages to remote working?
- hard to co-ordinate staff
- loss of control of staff
- dilution of culture
- less commitment
- extra costs e.g wfh equipment
219
What is a virtual organisation?
outsourcing most/all functions to other organisations and exist as network of contacts with few functions kept inhouse e.g Amazon relies on external suppliers
220
What is a virtual team?
group of people who interact through independent tasks guided by a common purpose and across space, time and organisational boundaries with links strengthened by IT
221
Challenges for virtual teams?
```
forming a team
knowledge sharing
processes and goals
leadership-managing diff time zones
cultural differences
morale
```
222
How has tech enabled new ways of working?
geographically dispersed teams: remote working and virtual organisations
223
What system can enhance customer-business relationships?
CRM-customer relationship management system
224
What does a company use the CRM process for?
identify, attract and win new customers
retain existing customers
bring past customers back
225
What does a CRM system include?
```
simple spreadsheets and databases to more complex online applications:
central database accessible to employees
customer data analysis
customer web-based ordering
tracking customers
up-to-date reports
```
226
What ethical/social issues must organisations consider in IS and data?
- data protection and privacy:compliant with legislation too
| - corporate digital responsibility (CDR):voluntary commitment
227
What are examples of Legal, Ethical and Social issues firms should consider related to IT?
How can firms combat them?
legal:
- data used in unlawful way
- comply with GDPR to prevent this
ethical:
- what is right or wrong in terms of use
- org must create ethical code
social
- make choices that are best for society
- share info with causes which can benefit society e.g donating to research such as Johnsons&J to Yale Uni
228
What is a CBA?
cost-benefit analysis to compare costs and benefits
229
Initial costs of IS?
- design and development for bespoke system
- purchase price if not bespoke
- hardware purchase price
- testing/implementation cost
- training cost
230
Running cost of IS?
- labour time to run system
- cost of materials e.g. replacement cost
- cost of service support
- cost or quality, security adherence/failure
231
Benefits of IS?
```
speed-repetitive tasks performed quicker
accuracy-less human error
volume-24/7 work
complexity
collaboration
presentation
lower costs-efficiency
```
232
What are potential threats and solutions to IS systems in terms of privacy and security?
natural disasters
-fire procedures, location, physical environment, back-up procedures, business continuity planning
malfunction
-network design to cope, back up procedures
unauthorised access, usage damage or theft
-personnel controls, access controls and computer equipment controls
viruses
-anti-virus software, security policy, regular audits and tests
hackers
-firewall software, password and usernames, data encryption
human errors
-training, controls
human resource risk eg strain, headaches
-ergonomic design, anti glare screens, cables covoered
233
What are some examples of companies getting hacked?
WikiLeaks
- NFP to protect whistleblowers and journalists who leak info
- 2010:released US military logs
- 2016:Hilary Clinton corruption exposed
NHS hacked for ransom
- ops cancelled and ambulances diverts
- biggest ransomware attack in history w 57k infections in 99 countries
234
What is the systems architecture?
way system's infrastructure is orgnaised together to support the organisation's functions and its overall goals
235
How do organisations connect their computers together?
local area networks (LANs)
236
What connects LANs together?
Wide area networks (WANs) allows users in one location to connect to users in another
237
What are the two broad approaches to systems architecture?
centralised systems architecture: IT function/IS is based out of single, central location
decentralised systems architecture:IT function/IS spread out throughout the organisation's location
238
What are the costs of a decentralised approach?
- higher costs due to duplication of equipment and effort
- barriers to sharing data between different parts of the org due to unaligned IS
- inconsistent data i.e one version more up to date than other
- loss of control at a central level
239
What are the benefits of a decentralised approach?
- better ability to meet local needs
- fewer staff relying on a single system
- less reliance on a few key workers
- tech tends to be less complex making problems easier to diagnose
- security breaches will have less of an impact
- efficiencies since time is saved on feeding back to one location
240
How could organisations outsource IS?
from outsourcing development of a single system to total outsourcing when majority of IS or IT systems are outsourced
241
What is data flow and what does it include?
data flow-movement of data through a process or system
- data inputs ie raw data
- data processing
- data outputs
- data storage
242
What is a data flow diagram?
model used to map out the entire process of data movement
243
What are some benefits of big data information management?
- enhanced transparency
- performance improvement
- market segmentation and customisation
- improved decision making
- possible product innovation
- effective risk management and control
244
How does Netfix use big data information management?
- over 100 m users worldwide
- uses info of habits to inform decisions
- analysis of past views to determine viable investments
245
Costs associated with big data info management?
- cost of establishing hardware and software, and maintenance
- tech difficulties and costs of
- incorrect data leading to incorrect decisions
- time spent on collecting data that is not useful
- security of data requires a lot of resources
- data might become irrelevant/outdated
- availability of skills to use data
246
What are some examples of why IT and finance need to intergrate?
smarter investment in IT-IT expertise will help achieve goal
information security and compliance-create policies and controls with IT
data analytics-IT can help with turning data into actionable information
247
Examples of type of activity IT will engage in and possible KPIs
Operational activities-day to day performance
- ticket response rate
- resolution rates
- system downtime
Transformational activities- measure impact of IT initiatives
- cost of new tech
- time saved by new tech
- IT utilisation
- security adherence
Strategic activities-progress towards goals
- new business opportunities
- revenue generated by tech
- comp advantage
- IT function as market leader
