analysts, security analysts, web developers, systems administrators, software product man- agers, and IT managers.
3. Is Information Systems a part of IT or is IT a part of information systems? Does it matter which is a part of which? IT is part (or a subset) of information systems. Yes, it matters as it can lead to misunderstandings, trivialization of the importance of one or all terms, and feelings of overwhelm for some stakeholders outside of the IT or IS profession (at times even within the IT/IS professions). It is these misunderstandings of the slippery and overlapping terms that often drives some accountants to trivialize, or only see a part of, the importance and value of information systems and digital technologies to business operations and strategy. In turn, this leads them to misunderstand their role in IS and digital technology issues and therefore sideline them, or to see such issues as ones that can be relegated to the IT/IS/Technology function. This misunderstanding and the resultant attitudes and actions can be a risk to both managers’ careers and the fates of their organizations. IT, Information Systems, and Digital Technologies 4. What is the best metaphor you can think of to explain the interrelationship between digital technologies and information systems? Lots of different metaphors can be used here. E.g.: -digital technologies are like a catalyst for information systems -digital technologies are like jigsaw pieces in an information system -digital technologies are like components of a computer -digital technologies are like building components of an IS building -digital technologies are like athletes on an IS team
5. Are digital technologies a part of IT or is IT a part of digital technologies? Digital technologie scan be a part of IT and IT can be a part of digital technologies. The term “digital technologies” refers to combinations of information (or data), computing (or computation), communication, and connectivity technologies. Digital technologies include all types of electronic hardware and software that use information in the form of binary code (information represented by strings of 0's and 1's). Digital technologies include electronic tools, systems, devices, personal computers, calculators, traffic light controllers, mobile telephones, satellite
technology, high-definition television, the internet and other networks, software applications, email, mobile apps etc. 6. What is the role of digital technologies in information systems? Used the right way, information systems can become very pow- erful strategic weapons capable of conferring often insurmountable strategic advantages. The right digital technologies can supercharge this strategic power of information systems by drastically enhancing how efficiently and effectively such information systems function. For example, the right combination of digital technologies can speed up the rate at which data flows between hardware, software, networks, business processes, and people, making it near instant. The right combination of digital technologies can transform all of an organization’s infrastructure (buildings, machinery, furniture, cars, stationery, etc.) into smart things capable of collecting data, communicating data, and acting on data insights, and doing all of these things autonomously. The right combination of digital technologies can enable an organization’s employees to work from anywhere in the world, to collaborate with any of the organization’s infrastructure and other physical things, and to serve large numbers of customers globally in real time, irrespective of their location. The right combination of digital technologies can enhance the efficiency and effectiveness of interactions between people, technology, and processes. These examples only scratch the surface of the power of digital technologies to supercharge the strategic power of information systems. 7. What are five different types of digital technologies? Digital technologies include electronic tools, systems, devices, personal computers, calculators, traffic light controllers, mobile telephones, satellite technology, highdefinition television, the inter- net and other networks, software applications, email, and mobile apps.
They also include emerging digital technologies such as the internet of things, blockchain, LPWAN, LEO satellites, 8. Assuming that an organization is not already using the digital technologies you identified in question 7, how could using them improve each component of an information system? Answers will vary depending on the specific digital technologies chosen. Below is a suggested solution for one digital technology (the internet of things)
Information System Component Hardware
Software
Data
Network
People
Processes
Improvement / Positive Impact IoT can enable bringing all IS hardware online so that real-time monitoring and preventative maintenance of IS hardware can occur to minimise disruptions in IS functioning. IoT enables software to play a significantly expanded role in IS. For example, instead of the activities software can perform being limited to a specific device (e.g. a computer), these activities can be expanded to every internet enabled thing (e.g. other software, all online hardware, connected buildings, connected devices etc.). This enables software to coordinate / facilitate the performance of almost all activities people and machines are able to perform. The IoT significantly expands the availability of data and the ability to route data to different parts of an IS. This can profoundly change the efficiency and effectiveness of decision making throughout the IS. The IoT can significantly improve network efficiency and effectiveness through real-time monitoring and preventative maintenance of network hardware and software. The IoT can enhance the efficiency and effectiveness of people within IS. For example, by enabling them to realtime decision-making information. The IoT can profoundly improve efficiency and effectiveness of processes. For example, through realtime monitoring of activities within IS, through automation of activities within IS, and through expanded integration of activities within IS.
9. Assuming that an organization is not already using the digital technologies you identified above, how could using them improve the functioning of its information systems? (e.g. how would using them impact efficiency, effectiveness, strategic position?) Depending on the digital technologies identified, examples of improvements in IS functioning due to use of digital technologies includes:
- Speeding up the rate at which data flows between hardware, software, networks, business processes, and people, making it near instant. - Transforming all of an organization’s infrastructure (buildings, machinery, furniture, cars, stationery, etc.) into smart things capable of collecting data, communicating data, and acting on data insights, and doing all of these things autonomously. -Enabling an organization’s employees to work from anywhere in the world, to collaborate with any of the organization’s infrastructure and other physical things, and to serve large numbers of customers globally in real time, irrespective of their location. -Enhancing the efficiency and effectiveness of interactions between people, technology, and processes Strategic Information Systems 10. What are strategic information systems? How can they transform the strategic positioning of an organization? (identify 5 ways they can transform it) Strategic information systems are information systems that can significantly transform the strategic position of an organization in its external environment. Such transformation can be in the form of breakthroughs in efficiency, differentiation, innovation, adaptability, or agility. Efficiency breakthroughs include dramatically speeding up or enabling cost leadership in processes such as product and service delivery processes, customer engagement and support processes, and strategy execution processes. Adaptability refers to an organization’s ability to adapt its operations to surprising events in its external environment (financial crises, pandemics, disruptive competition). Agility refers to an organization’s capacity for flexibility and speed in sensing and responding to external changes. 11. Identify two organizations that are exemplar users of information systems as powerful strategic weapons Lots of exemplar organisations. For example, Amazon, Google, Microsoft, Netflix, Apple, Disney, Caterpillar 12. What is the role of accountants in the efficient and effective functioning of information systems? As trusted advisors and business partners, accountants can play critical roles in optimising the design, implementation, operation, maintenance, and optimization of
information systems. For example, they play critical IS roles such as systems analysts, systems designers, systems auditors, systems users, power users of particular digital technologies within information systems, data managers, data analytics experts, cybersecurity risk analysts or managers, digital ethics analysts or risk managers, and many more. The extent to which accountants possess the right knowledge, skills, and abilities to fulfil and effectively carry out relevant roles can enhance or inhibit the efficiency and effectiveness of information systems.
13. What is the role of accounting / finance managers in the efficient and effective functioning of information systems? Ensuring the effective design, implementation, operation, maintenance, and optimization of information systems is not just the responsibility of the IT/IS or similar function, but it is a shared responsibility of all leaders / managers – including accounting and finance leaders / managers. To deliver on this responsibility, accounting and finance leaders / managers can ensure that the right digital technologies are used, that the right operational and strategic processes are in place, that these processes leverage digital technologies for optimal efficiency and effectiveness, that the right job roles exist with the right capabilities to ensure information systems function optimally, that the right strategic partnerships are in place to optimize the strategic value of IS, and that employees within the accounting / finance function and throughout the organization continuously upgrade their technology skills and keep up with digital technologies. 14. Identify 5 actions that accountants can take to improve the effectiveness and efficiency of information systems at their organization There are almost an unlimited number of actions that accountants can take including cultivating and keeping their accounting related digital technology and information systems competencies up to date, cultivating and keeping their strategic technology competencies up to date, effectively fulfilling one or more critical information systems roles (e.g., business analyst, systems analyst, systems administrator, systems auditor), effectively reporting on the status of information systems efficiency and effectiveness, effectively reporting on information systems efficiency and effectiveness improvement opportunities, building highly collaborative relationships with technology and procurement teams / functions, and building sufficiently deep technical knowledge of key software systems and technologies critical to their organisations’ strategy and operations.
15. Identify 5 actions that accounting and finance managers can take to improve the effectiveness and efficiency of information systems at their organization Accounting and finance managers can ensure that the right digital technologies are used by accounting / finance teams, that the right operational and strategic processes are in place to ensure efficient and effective use of digital technologies by accounting and finance teams as well as the wider organisation, that the accounting team plays a leadership role in ensuring organization - wide processes leverage digital technologies for optimal efficiency and effectiveness, that the accounting team effectively partners with managers and leaders throughout the organization to ensure the right job roles exist with the right capabilities to ensure information systems function optimally, that the accounting team partners with leaders and managers within the technology and procurement functions to ensure the right strategic partnerships are in place to optimize the strategic value of IS, and that accounting and finance team effectively supports managers to ensure that employees throughout the organization continuously upgrade their technology skills and keep up with digital technologies.
Chapter 3: Digital Technology Advancements and Digital Disruption: Game Changing Opportunities and Existential Threats Digital Technology Advancements and Digital Disruption 1. What is the difference between the terms digital disruption, disruptive technology, and disruptive innovation?
The term disruption refers to preventing something (e.g., routines, processes, events) from continuing as usual, or as expected. Put another way, it refers to interrupting the normal course of action, or throwing the status quo into disorder. Digital disruption refers to digital technology-induced disruption. A disruptive
technology is a technology that significantly changes or disrupts the behaviours, routines, processes of consumers, organisations, industries and or societies. The term disruptive innovation describes how a new product / service (e.g., a digital technology product) initially takes root through simple / cheaper or more accessible applications at the bottom of a market (e.g., use of Netflix mail / online video rental) before moving upmarket to displace established products / services and competitors (e.g. Netflix displacing video rental companies like Blockbuster).
2. How do digital technology advancements cause disruption?
The introduction of new digital technologies or breakthroughs in existing digital technologies enables the use of these digital technologies to do things differently or more efficiently and effectively. This prevents business routines / processes / events from continuing as usual, or as expected for organisations that want to remain competitive. For example, the introduction of online search engines and GPS meant