Strategic Management (Jan 2017)
The impact of the digital economy on controlling
Abstract
Due to the information technology revolution, the capacity of the IT data management has increased dramatically. Therefore, those companies which are unable to adopt the new opportunities, which can't integrate these data as the result of the digital economy, will be at a disadvantage in the long run. Integration of these databases into the operational or strategic planning allocates more information, since the company may get important information, which is sometimes absolutely critical for the company's survival. Today, the big stores, the pharmaceutical firms and banks use such IT solutions whose costs cover a significant part of the sales and marketing budgets, and in addition to these solutions, tools did not even exist a few years ago. These drastic changes take effect on the activity and behaviour of the economy, so it affects the functionality of companies which was working for past centuries as well. Based on the above mentioned, we can say that the company's controller and the controlling organization also must consider that in the future how to do, how to adapt the activities, processes within the company and outside the company, since a much larger amount of data is available, there is no difficulty to be able to get information to complete a task, solve a problem, but how they choose and filter data source, and then what conditions are used to limit the amount of available data. The examples listed above reflect that an efficient use of digitized information nowadays is essential to make quick management decisions, it ensures a competitive advantage, and for this change the companies must change their traditional controlling activities. If a company recognizes the inefficient practice of present reports, it raises the idea that it would be worthwhile to develop a new business intelligence tool. The goal is how to read the data in the future. It is important to know that before the implementation of the BI tool, what the practice of the organization is, what controlling activities are, how the relationship is between the decision-maker and the controller, how the controlling helps the business, how the controlling helps to set company's goals. In the 21st century large companies want to keep the competitiveness and the implementation of BI applications is very important for it. The advantage of BI implementation is that the new system uses pre-defined templates to be able to get information for an entire business, to get complete analysis on time, on product or company level very fast. Thus, it follows that the applied BI can help employees and managers using the basic functions can get the information of a client, markets very easily in just a few seconds. First and last we can say that the use of the digital economy the businesses become more productive and efficient, and they could enter into the digital market of the world economy, so their business could operate more effectively.
