Friday, July 27, 2012

Traditional view over strategy

Posted by Unknown 6:54 AM, under | No comments



 An important role of both the finance and information technology functions is to help ensure the agreed strategy is proceeding according to the plain. The table below (devised by the US institute of Management Accounts) outlines the rationale behind this view.
  
Description
Traditional View
Strategic implication
Cost

The finance and information technology functions can be relatively expensive.
Shared services and outsourcing could be used to capture cost savings
IT
IT has traditionally been transaction based
IT/IS should be integrated with business strategy.
Value
The finance and IT functions do not add value
Redesign the functions
Strategy
Accountants and IT managers’ are seen as scorekeepers and administrators rather than as a business partner during the strategic planning process.
Change from cost oriented to market oriented. This is development of more effective strategic planning systems.



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