Digital Age and Dynamic Business Environment
The digital age, as per yourdictionary.com is also called the information age, is defined as the time period starting in the 1970s with the introduction of the personal computer with subsequent technology introduced providing the ability to transfer information freely and quickly.
The digital age, as per yourdictionary.com is also called the information age, is defined as the time period starting in the 1970s with the introduction of the personal computer with subsequent technology introduced providing the ability to transfer information freely and quickly.
The time period in which we live now where Internet and email are available is an example of the digital age.
The digital age technologies have displaced established technology resulting in a completely new way of doing business and creating opportunities for emergence of a new industry.
These technologies have disrupted the way traditional companies have conducted businesses and both old and new businesses must embrace these disruptive technologies to stay relevant and to meet customer needs.
Here are a few examples of disruptive technologies in 1990’s that transformed established businesses to newer ways of working:
- personal computer replaced typewriter
- Internet enabled Email replaced letter-writing disrupting greeting card industries.
- Cell phones enabled people to call anywhere disrupting telecom industry.
- Laptop and mobile computing made mobile workforce possible.
- Smartphones disrupted pocket cameras, MP3 players, calculators and GPS devices,
- Social networking disrupted telephone, email, instant messaging and event planning.
The last decade has seen an increased intensity in industrial competition, in which cycle times are shrinking and the volatility, uncertainty, complexity, and ambiguity have opened opportunities and challenges alike
The above listed are just a few examples of disruptions in the 1990’s that have set the stage for continuous evolution in technology to what is observed today. Business services functions – finance, human resources, procurement and IT – are under pressure to adapt the way they deliver services to the demands of the digital age.
Related Links
You May Also Like
-
Trial Balance in General Ledger
One of the greatest benefits of using a double-entry accounting system is the capability to generate a trial balance. What do we mean by trial balance? As the name suggests a trial balance is a report that must have its debits equals to credits. Understand the importance of trial balance and why it is balanced. Learn how it is prepared and in which format.
-
Horizontal or Flat Organizational Structures
Flat organizational structure is an organizational model with relatively few or no levels of middle management between the executives and the frontline employees. Its goal is to have as little hierarchy as possible between management and staff level employees. In a flat organizational structure, employees have increased involvement in the decision-making process.
-
There are two commonly used methods of accounting - Cash Basis and the Accruals Basis. Understand the difference between accruals and reversals. Recap the earlier discussion we had on accruals and reversals and see the comparison between these two different but related accounting concepts. Understand how the action of accruing results in reversals subsequently in the accounting cycle.
-
In this article we will help you understand the double-entry accounting system and state the accounting equation and define each element of the equation. Then we will describe and illustrate how business transactions can be recorded in terms of the resulting change in the elements of the accounting equation.
-
GL - Journal Posting and Balances
In this tutorial, we will explain what we mean by the posting process and what are the major differences between the posting process in the manual accounting system compared to the automated accounting systems and ERPs. This article also explains how posting also happens in subsidiary ledgers and subsequently that information is again posted to the general ledger.
-
In this article we will discuss various types of "Management Entities". Various types of operational units, are created by management, to effectively run, manage and control their business. Different types of functional units, and divisional units, are widely used across industry.
-
In most of the automated financial systems, you can define more than 12 accounting periods in a financial year. This article will explain the concept of the adjustment period and the benefits of having adjustment periods. Adjustment periods have their inherent challenges for the users of financial statements and there is a workaround for those who don’t want to use adjustment periods.
-
An organizational design is the process by which a company defines and manages elements of structure so that an organization can control the activities necessary to achieve its goals. Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. Organizational structure is the formal system of task and activity relationships to clearly define how people coordinate their actions and use resources to achieve organizational goals.
-
There are five types of core accounts to capture any accounting transaction. Apart from these fundamental accounts, some other special-purpose accounts are used to ensure the integrity of financial transactions. Some examples of such accounts are clearing accounts, suspense accounts, contra accounts, and intercompany accounts. Understand the importance and usage of these accounts.
-
Driving Business Efficiency through Divisions and Departments
In case of a multi-divisional organizational structure, there is one parent company, or head-office. And that parent owns smaller departments, under the same brand name. Dividing the firm, into several self-contained, autonomous units, provides the optimal level of centralization, in a company.
