On the Integration of IT System with the Budgetary Control System: Insights from the Case of Wanhua Chemical
With the advances of IT technology, all businesses are disrupted by digitalization and have to adapt and transform. The role of IT has gone beyond computing. The capability of Information management is critical to the organizational strategy. At the same time, the finance function is undergoing massive transformation, with the IT function building systems and solutions for the new environment. Budget, as one of the key management tool of the finance function, has been pushed by digitalization to provide real time information and enhance decision making and value to the business. Based on a case study, the authors discuss the integration of the IT system with the budgetary control system in support of the strategy of the company, and a dynamic model of the process was built. The underlying mechanism linking IT to strategy is also discussed. In this way, the authors prove that when properly integrated with budget of the finance function, IT can move from computation technology to become capabilities that create value for business.
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