Financial information systems (FIS) are the neural network of business organizations. They record the financial impact of every business transactions and translate the consolidated impact into actionable information on cash flow, revenue, profitability, and taxation for executives, shareholders, and external stakeholders.
Today, with businesses generating up to one million transactions each day, FIS are the cornerstone of effective and accurate financial reporting on the strategic level but also for day-to-day operations. Additionally, FIS are an important element in ensuring regulatory compliance. Modern FIS allow you to investigate, audit, and optimize business processes using financial information.
In the future, FIS will play an even more important role. Innovations in financial technology (fintech) record, integrate, and manage financial information in radically different ways. Fintech will change not only the role and scope of FIS but will affect existing business models and promote completely new business models.
Understanding the fundamentals of FIS, the relationship of FIS and business processes, and being able to analyze and design FIS using innovative financial technology help you to become an invaluable addition to any business organization.
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How Technology Companies Are Deflating Asset Prices
One of our politician’s greatest fears has been inflation, but recently economists are examining the deflationary pressure technology places on assets. According to the author of “Janet Yellen Eats The World”, Faisal Khan, this has been achieved through efficiency and transparency.
Technology companies create products that makes your assets better. However, the more interesting way Khan argues technology promotes efficient is through better asset utilization. Companies like Uber help the average consumer turn their assets into another source of revenue, and puts downward pressure on the price of that asset. In a shared economy there is a decreased the demand for assets, which has caused an overall fall in the price of assets.
Technology also makes prices more transparent. The most typical example of this has been Amazon, and the ease at which consumers can discover prices. But according to Khan, big data solutions have moved into almost every industry. For example, even in the food industry, leaders like Tyson Foods are creating smart farms to stay ahead of their competitors.
This deflationary pressure has caused many questions about monetary policy. Khan argues now the government can raise interest rates or minimum wage with the expectation that the deflationary pressure of technology will fight inflation.
https://techcrunch.com/2017/01/14/janet-yellen-eats-the-world/