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

Question 5

Exam Slide

Answer 5

1. You must be able to relate a change in technology to a change in performance
2. Performance is measured by looking at revenue, costs, assets and non financial
3. You must be able to relate a change in technology to a change therefore required in the PMS
4. The impact on PMS could be anything in the syllabus, e.g. KPI, budgeting, rewards and better info provision are the most common ideas.
5. Learn what all the new technology is capable of, as this is your core knowledge.

Question 6

Data Silos

Answer 6

Data Silo is an unintegrated data source, created and used by a single department or division. The staff using it will be used to it and may like it as it serves their needs at least to some extent . There will be resistance to change.

Exam point - Evaluation of PMS based on data Silos
Evaluation of potential solution based on silos

Problems with Data Silos
1. Data duplication and divergence - Other teams might have the same data
2. Culture of isolation and poor data sharing
3. Poor decision making - missed opportunities, false acceptance, false rejection due not not having the full information
4. Poor IT control over IT expenditure - separate maintenance costs, systems may be incompatible
5. Accounting issues - more complicated and time consuming
6. Poor controls - internally generated systems almost always lack essential controls
7. Poor customer experience

Solution to existence data silos
1. Invest in modern technology e.g. ERPS, data warehouses. networks
2. cultural shift is needed
3. Strengthen data governance - IT control and development system
4.