AFM241 Chapter Notes - Chapter 1: Toll Road, Information Technology Management, Financial Statement

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM241
• Professor: Joyce Tian

Document Summary

Information technology: development, maintenance and use of computer systems, software and networks for the processing and distribution of data: capture, store, manipulate and present data to support business processes and value adding activities. Ifrs does not require firms to report it spending on financial statements: average it spending across various industries is 3% It intensive industries: banking and financial services, media and entertainment, consulting, Innovation adoption life cycle: follows an approximate bell shaped distribution, cumulative adopters follow an s-shaped curve, documented profitability and efficiency gains of early adopters force competitors to follow to catch up or face competitive disadvantage. Innovators: first to adopt an emerging technology: prepared to take high risk, high uncertainty, technology may not be fully developed, early adopters: relatively high level of uncertainty. Innovation trigger: technological breakthrough or proof-of-concept, experimental stage, no proven business applications have been developed, peach of inflated expectations, companies start investing in the new technology, trough of disillusionment.