The design of the Information systems architecture and acquisition of technology are important aspects of an entity business strategy. The choice regarding technology can be critical to achieving entity objectives. Technology decisions should be an input to the strategy process helping to define innovations and seeking to increase revenue rather than merely an after the fact too for achieving goals.
A. Common principles of Technology Driven strategy development
1. Technology is a core input to the development of strategy, just as much as customers, markets and competitors.
2. Because of the speed with which technology changes, strategy development must be a continual process rather than something is revised every three to five years.
3. Innovative emerging business opportunities must be managed separately and differently than core business.
4. Technology has power to change long held business assumptions, managers and executives must be open on this.
5. Technology must be managed from two perspectives i)its ability to create innovation in existing business and ii) the ability of emerging technologies to create new markets products.
6. The focus be on customer priorities as well as internal efficiencies.
B. The Role of Technology in information and communication
1. Technology plays a crucial role in enabling the flow of information in an organization including directly relevant to enterprises risk management across strategy setting and the whole organization. The selection of specific technologies to support enterprises risk management for an organization typically is a reflection the
A. Entity approach to enterprises risk management and its degree of sophistication.
B. Types of events affecting the entity.
C. Entity's overall information technology architecture and
D. Degree of centralization of supporting technology.
2. Enterprises risk management includes a number of key components that enable an organization to identify assess and respond to risk. Monitoring risk through control activities and information systems is critical to achievement of objectives.
A. Information Management approach
In some organization information is managed separately by unit of function whereas others have integrated systems, As enterprises resource planning systems have matured, more companies are moving toward integrated systems that can share information throughout the organization.
B. Availability and usefulness of Data
Some Organizations have enhanced their technology architectures to allow grater connectivity and usability of data, with increased use of internet. Web services based information strategies enable real time information capture maintenance and distribution across units and functions, often enhancing information.
C. Types of Events affecting the Entity
Event Identification is integral to enterprises risk management. Events might be adverse or positive (representing opportunities). Selection of Information technology system and procedure are driven by strategies that capitalize on opportunities and Mitigate risks.
D. Information technology architecture
Various methods of organization technology resources may be used to accomplish organization objectives. This organization of resource is generally referred to as technology architecture.
a. Customized Systems: Some Companies develop customized systems for handling information systems requirements. Customized Systems are often characterized by data warehouse to support the entity management.
b. Open Architecture: Open architectures utilize such technologies such as XBRL, XML, and web services to facilitate data aggregation, transfer and connectivity among multiple systems.
Disclaimer: The content of this write up is intended to provide a general guide to the subject matter.
This Article has been written by Suresh Kumar. He is a Lawyer and Company Secretary in Chennai and has 17+ years of experience in the area of Finance, Compliance, AML, Company Secretary & Legal and Arbitration. He can also be reached at firstname.lastname@example.org
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