Information Technology (IT)

Question 1

What is the primary responsibility of the information technology (IT) function in an organization?

Answer 1

Management of information — the collection, transmission, management, and protection of data across the enterprise.

Question 2

How does the finance function relate to the IT function?

Answer 2

The finance function relies on IT for financial accounting and reporting systems and plays a business partnering role in managing IT efficiently.

Question 3

What is the significance of obtaining the right information systems and hardware?

Answer 3

It can be key to competitive advantage and part of good decision-making and prosperity.

Question 4

Fill in the blank: The IT function works in partnership with other departments to ascertain what data needs to be _______.

Answer 4

[captured]

Question 5

What are the three characteristics of big data?

Answer 5

• Velocity
• Volume
• Variety

Question 6

What is a CRM solution?

Answer 6

Software that tracks all interactions between the company and existing or potential customers.

Question 7

How can IT improve organizational performance?

Answer 7

By identifying areas where technology can facilitate better trading results.

Question 8

What does ERP stand for and what is its importance?

Answer 8

Enterprise Resource Planning; it manages all core organizational data and processes in an integrated software solution.

Question 9

True or False: IT has no role in facilitating internal and external communication.

Answer 9

False

Question 10

What is the impact of social media on customer power?

Answer 10

Even one individual can have a major impact on the organization due to the mass audience created by social media.

Question 11

What is the role of the IT function in e-commerce?

Answer 11

To ensure the organization has a first class ‘e-business’ offering appropriate to its operations.

Question 12

Fill in the blank: The IT function traditionally provides _______ for the company and employees.

Answer 12

[hardware, software, and computer networking]

Question 13

What is the purpose of an IT help desk?

Answer 13

To provide technical support and resolve problems as they arise.

Question 14

What does it mean when data or software is held over the internet?

Answer 14

It is deemed to be use of the cloud.

Question 15

What are some risks associated with collecting and managing vast amounts of data?

Answer 15

Data being lost, stolen, or exploited.

Question 16

What is a key element of protection against cyberattacks?

Answer 16

Centralized management and monitoring of devices, applications, and security protocols.

Question 17

What is the role of the IT function in ensuring data privacy?

Answer 17

To ensure data is not shared about individuals or organizations without permission.

Question 18

What is a growing trend regarding the IT function in organizations?

Answer 18

Increasingly outsourcing the IT function.

Question 19

What are some examples of key performance indicators (KPIs) for the IT function?

Answer 19

• IT project delivery time
• IT problem response time
• IT problem resolution time
• Budgeted expenditure versus actual expenditure
• Downtime
• Cost and time savings
• Revenue arising from new technology

Question 20

What is the relationship between finance and IT in business partnering?

Answer 20

Finance supports IT with investment proposals, budgeting, and monitoring spend, while IT supports finance in operational areas.

Question 21

What is necessary for evaluating proposed investments in technology?

Answer 21

Analyzing the potential impact on productivity, quality, or other cost-related components against potential revenue improvements.

Question 22

What framework does the IT contribution model provide?

Answer 22

A framework for analysing the costs and benefits of IT capital investments and ongoing IT costs.

This model is detailed in the CGMA Management Accounting Guideline Evaluating Performance in Information Technology.

Question 23

What should be analysed when evaluating a proposed investment in technology?

Answer 23

The potential impact on productivity, quality, and cost-related components against potential revenue improvements.

This analysis can also help develop KPIs for monitoring ongoing performance.

Question 24

True or False: The IT contribution model suggests that inputs and their processing determine project outputs.

Answer 24

True.

Question 25

What are the most obvious inputs to an IT initiative?

Answer 25

Resources invested by the business such as time, money, and assets. ## Footnote Successful IT initiatives require proper funding and support.

Question 26

What external factors must be considered in IT initiatives?

Answer 26

* Economic downturns * Increases in competition ## Footnote These factors may be uncontrollable but should influence how the IT initiative is selected and managed.

Question 27

What internal factors affect how IT resources are directed?

Answer 27

* Overall strategic objectives * Product portfolio * Culture of the business

Question 28

What is essential for the success of IT initiatives according to the model?

Answer 28

Knowledgeable senior leadership and appropriate IT systems for project needs.

Question 29

What can IT initiatives do for a business’s outputs?

Answer 29

* Save IT costs * Support quality initiatives * Improve asset utilisation * Speed time to market * Automate work processes * Offer staff greater work flexibility

Question 30

What external outputs can result from an IT initiative?

Answer 30

* Better value for customers * Increased customer loyalty * Attraction of new customers * Development of new channels

Question 31

What are the potential business outcomes of IT initiatives?

Answer 31

* Increased revenues * Reduced costs * Greater profitability

Question 32

What components does the IT contribution model analyse for evaluating IT investments?

Answer 32

* Inputs * Processes * Internal outputs * External outputs * Business outcomes

Question 33

What is the purpose of developing KPIs in the IT contribution model?

Answer 33

To monitor ongoing performance towards targets and the final return on investment.

Question 34

When was Printz founded?

Answer 34

In 1974.

Question 35

What types of products did Printz develop in the 1980s and 1990s?

Answer 35

* Colour photocopiers * Printers for home and office

Question 36

What is Printz known for in terms of technology?

Answer 36

Being an industry leader in innovation and offering the latest digital copying and printing products.

Question 37

How many countries does Printz operate in?

Answer 37

140 countries globally.

Question 38

What type of organisational structure does Printz use?

Answer 38

Divisional structure based on products and countries of operation.

Question 39

What is the target service score Printz's IT function aims for?

Answer 39

4.7.

Question 40

Which KPI would not be useful for measuring the performance of the IT department at Printz?

Answer 40

C. Operational gearing. ## Footnote Operational gearing measures fixed and variable costs and is not controlled by the IT department.

Question 41

How might the finance department assist the IT function in purchasing a new CAD system?

Answer 41

* Assisting in preparation of the business case * Measuring the cost of the system versus budget * Measuring time savings arising from the new system

Question 42

What are the roles and responsibilities of a typical IT function?

Answer 42

* Management of data and information * Finding opportunities to improve performance * Use of IT in production

Question 43

True or False: The IT function's role is limited to helping staff with desktop computer problems.

Answer 43

False.

Question 44

What must organizations identify to measure the performance of the IT function effectively?

Answer 44

The right KPIs.

Question 45

Fill in the blank: The IT function can enhance communication techniques, allowing organizations to talk to customers ______.

Answer 45

[cheaply and easily]