CIMA E1 Syllabus E4. IT - Finance function and IT - Notes 1 / 2
Interaction between IT and Finance
Traditionally IT was viewed as a cost and the interaction was limited to budgeting and investment appraisal decisions on new systems.
IT is now viewed as an important aspect of the organisation.
A good IT system can provide significant competitive advantage to businesses.
What are the reasons increased interaction between both functions?
Smarter investment in IT - guidance of the IT function on which technology will help the company achieve its strategic goals and increase competitiveness
Information security and compliance - Finance function and IT function can work together on minimising the threat of data theft and loss.
Data analytics - to turn data into business intelligence and use it for decision making
Cost benefit analysis - Improving system design is a cost of information. The finance function will assist this process by producing a cost benefit analysis.