ACCA Applied Knowledge · Business and Technology · Technological factors

A logistics company replaces manual paper-based dispatch records with a system that automatically captures delivery data, feeds it into invoicing, and flags exceptions for human review. Which statement best describes the effect on the business process?

The best description is process re-engineering supported by technology, with management by exception. The dispatch-to-invoice flow is redesigned around automated data capture, and humans review only flagged exceptions. There is no new market, no change to matrix structure, and no transfer of decisions to customers.

AProcess re-engineering supported by technology, with management by exceptionCorrect
BDiversification into a new market
CA change from a functional to a matrix structure
DA transfer of all decision-making to customers

Explanation

Redesigning the dispatch-to-invoice process around technology is business process re-engineering, and flagging only exceptions for review is management by exception. Nothing indicates a new market (diversification), a structural change to matrix form, or decisions moving to customers.

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