Page 10 - DCAP208_Management Support Systems

Unit 1: Support Systems

There have been a number of business developments because of these changes. Some of the most Notes
obvious are:

An increased pace of change in the business world
Shorter product life cycles and shorter competitive advantages
A requirement for better, quicker, and more decisive actions by management
Emergence of new companies and new industries

Emergence of new professional services
Outsourcing of non-value-added, but necessary, services
Increased uncertainty and the explicit recognition of risk
Increasingly complex business transactions

Restructuring of rewards with:
Elimination of or reduction in rewards for services replaced by technology
Unchanged rewards for traditional, but needed services
Increased rewards for services that help leverage technology and globalization and
that assist in making better strategic decisions
Changes in financial reporting and relationships with financial markets and major market
players

Increased regulatory activity
Increased focus on customer satisfaction
The following diagram illustrates the drivers of change, results of these changes, and
developments that have occurred because of the changes that have taken place.
Figure 1.1: Key Drivers of Change in the Business Environment

Concentration of
Technology Globalization Market Power in
Large Pension and
Mutual Funds
These Drivers have
Resulted in:
Inexpensive information
Increased Competition
Inexpensive Information and
Increased Competition Have Led to:
An increased pace of charge in the business world
Shorter product life cycles and shorter competitive advantages
A requirement for better, quicker, and more decisive actions by management
Emergence of new companies and new industries
Emergence of new professional services
Outsourcing of non-value added, but necessary, services
Increased uncertainty and the explicit recognition of risk
Increasingly complex business transactions
Restructuring of rewards with:
Elimination of or reduction in rewards for services replaced by technology
Unchanged rewards for traditional, but needed services
Increased rewards for services that help leverage technology and globalization and that assist
in making better strategic decisions
Changes in financial reporting and relationships with financial markets and major market players
Increased regularly activity
Increased focus on customer satisfaction
Source: http://aaahq.org/pubs/AESv16/chapter2.pdf

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