Management Accounting – Information Strategy (FLIS)

Syllabus overview

This syllabus is concerned with the strategic importance of information to organisations in the current and future business environment. It recognises that, although many organisations employ IT professionals, Chartered Management Accountants have a key role to play in the provision of information that adds significant value to the ever-increasing volume of data that is available.

This syllabus aims to test the student’s ability to:

• identify how information supports business strategy;

• evaluate the use of IS/IT to improve the competitiveness of an organisation;

• prepare a coherent plan to manage information;

• identify the ways in which IS/IT is changing the nature and structure of the working environment.

Assessment

There will be a written paper of three hours. Section A will contain a compulsory question up to a maximum of 50 marks, based upon a scenario. Section B will contain a choice of questions, normally two from four.

Learning outcomes and syllabus content

On completion of their studies students should be able to:

• evaluate the use of information as a key resource in different organisational contexts;

• evaluate information and information systems;

• evaluate appropriate channels of communication available;

• evaluate and advise managers in the development of knowledge-management strategy;

• identify and evaluate the various support systems available for the management of knowledge;

• evaluate the impact of electronic commerce on the way business is conducted and recommend an appropriate strategy.

• Typical information requirements of organisations operating in different sectors such as manufacturing, service and the public sector, as well as non-profit-making organisations such as charities.
• Chief reasons why information is important for organisations.
• Process of cost–benefit analysis and how to assess the value of information.
• Characteristics of information at all levels of the organisation.
• Use of qualitative information by organisations in planning, control and performance monitoring.
• Typical methods of data collection in various business sectors (for example, bar codes and scanners in retailing).
• Various IT systems that deliver information to different levels in the organisation (for example, transaction processing, decision support and executive information systems).
• Potential benefits and drawbacks of Internet use by organisations for activities such as data collection and dissemination of information (including the security issues to be borne in mind), as well as the concept of intranets and their use by organisations in information management.
• Concept of electronic commerce and the potential impact it has on the business strategy.
• Concept of knowledge management and why it is seen as a key element of an organisation’s success.
• Use of databases and planning models in assisting the strategic planning process (for example external databases, economic models, forecasting and modelling packages/applications).

On completion of their studies students should be able to:

• identify and evaluate appropriate IS/IT systems and recommend changes to meet the strategic information needs of an organisation;
• evaluate the use of IS/IT to gain competitive advantage, and recommend appropriate strategies;
• evaluate the importance of process innovation and re-engineering;
• evaluate the strategic benefits of IT and advise managers on the development of an IS/IT/IM strategy.

• Why an organisation needs an IS/IT strategy which is complementary to the organisation strategy.
• How organisations can compete through better use of information as opposed to technology: for example, using a database to identify potential customers or market segments as opposed to creating a barrier to entry through investment in IT.
• The link between IS/IT and business strategies and how one supports the other while at the same time, potentially using IT as the key element of the competitive strategy.
• The way IT can impact upon an industry by utilising frameworks such as Porter’s five forces and value chain, and how organisations can use IT to enhance competitive position.
• How CSFs link to performance indicators and corporate strategy and how they can be used to drive the information needs in the organisation.
• The strategic business use of the Internet and WWW in terms of marketing and sales activities, and utilising technology to provide enhanced value to customers and suppliers.
• Use the applications portfolio to improve IS/IT strategy (McFarlan).
• Data warehousing and data mining as tools for managing data and the likely benefits that can be gained from their use, together with the implications of data warehousing.
• The concept of business integration – links between strategy, people, technology and operations in determining the role of IS/IT.
• The role of IT in innovation and business process engineering.

• The strategic case for IT investment, particularly where benefits and value of information are difficult to quantify with any degree of reliability.

On completion of their studies students should be able to:

• analyse the contents of IS, IT and IM strategies, and recommend improvements thereto;
• evaluate the organisation of the IS/IT function within a given organisation;
• recommend strategies for achieving the integration of technical and business staff;
• evaluate and recommend strategies for managing change in an IT context.

• The purpose and content of IS, IT and IM strategies.
• How to develop a plan and implement the various strategies in a positive way.
• The potential ways of organising the IT function, involving the use of steering committees, support centres for advice and help-desk facilities, end-user participation.
• The argument for and against outsourcing.
• The criteria for selecting outsourcing/facilities management partners and for managing ongoing relationships, service-level agreements, discontinuation/change of supplier, hand-over considerations.

On completion of their studies students should be able to:

• identify and recommend new working patterns to improve a given situation;

• identify and evaluate the impact of developments in telecommunications;

• recommend ways of achieving co-ordination of activities via IS/IT in a decentralised organisation;

• explain and interpret the concept of human information processors;

• evaluate the use of ‘intelligent agents’ software;

• identify and evaluate the cultural dimensions of IT acceptance.

• The way IS/IT is changing the method of working and the increase in the knowledge content of many jobs.
• The organisational impact of technology, its implications for structure and working relationships, and how individuals may be faced with a role change.
• The human information processor and the implications of providing a user-friendly interface to gain maximum benefits while minimising the potential drawbacks, such as physical and emotional effects, providing the right volume of information, easy retrieval and storage facilities, and merging sources of information reaching individuals so that they become a manageable number.
• How intelligent agent software can be applied to monitor an individual’s use of a system and learn what the user’s day-to-day information needs are.
• The growing awareness of remote working and the implications for the individual and the organisation.
• The impact of IS/IT on the social aspect of the organisation and implications for organisational culture.

• The management of change and potential staff reactions, particularly in respect of actual or perceived role changes.