IDEAS home Printed from https://ideas.repec.org/a/eee/ijoais/v25y2017icp29-44.html
   My bibliography  Save this article

Impact of business analytics and enterprise systems on managerial accounting

Author

Listed:
  • Appelbaum, Deniz
  • Kogan, Alexander
  • Vasarhelyi, Miklos
  • Yan, Zhaokai

Abstract

The nature of management accountants' responsibility is evolving from merely reporting aggregated historical value to also including organizational performance measurement and providing management with decision related information. Corporate information systems such as enterprise resource planning (ERP) systems have provided management accountants with both expanded data storage power and enhanced computational power. With big data extracted from both internal and external data sources, management accountants now could utilize data analytics techniques to answer the questions including: what has happened (descriptive analytics), what will happen (predictive analytics), and what is the optimized solution (prescriptive analytics). However, research shows that the nature and scope of managerial accounting has barely changed and that management accountants employ mostly descriptive analytics, some predictive analytics, and a bare minimum of prescriptive analytics. This paper proposes a Managerial Accounting Data Analytics (MADA) framework based on the balanced scorecard theory in a business intelligence context. MADA provides management accountants the ability to utilize comprehensive business analytics to conduct performance measurement and provide decision related information. With MADA, three types of business analytics (descriptive, predictive, and prescriptive) are implemented into four corporate performance measurement perspectives (financial, customer, internal process, and learning and growth) in an enterprise system environment. Other related issues that affect the successful utilization of business analytics within a corporate-wide business intelligence (BI) system, such as data quality and data integrity, are also discussed. This paper contributes to the literature by discussing the impact of business analytics on managerial accounting from an enterprise systems and BI perspective and by providing the Managerial Accounting Data Analytics (MADA) framework that incorporates balanced scorecard methodology.

Suggested Citation

  • Appelbaum, Deniz & Kogan, Alexander & Vasarhelyi, Miklos & Yan, Zhaokai, 2017. "Impact of business analytics and enterprise systems on managerial accounting," International Journal of Accounting Information Systems, Elsevier, vol. 25(C), pages 29-44.
    • Handle: RePEc:eee:ijoais:v:25:y:2017:i:c:p:29-44
    DOI: 10.1016/j.accinf.2017.03.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1467089517300490
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.accinf.2017.03.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Guoqiang & Y. Hu, Michael & Eddy Patuwo, B. & C. Indro, Daniel, 1999. "Artificial neural networks in bankruptcy prediction: General framework and cross-validation analysis," European Journal of Operational Research, Elsevier, vol. 116(1), pages 16-32, July.
    2. Ittner, Christopher D. & Larcker, David F., 2001. "Assessing empirical research in managerial accounting: a value-based management perspective," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 349-410, December.
    3. Ritesh Chugh & Srimannarayana Grandhi, 2013. "Why Business Intelligence?: Significance of Business Intelligence Tools and Integrating BI Governance with Corporate Governance," International Journal of E-Entrepreneurship and Innovation (IJEEI), IGI Global, vol. 4(2), pages 1-14, April.
    4. Peters, Matt D. & Wieder, Bernhard & Sutton, Steve G. & Wakefield, James, 2016. "Business intelligence systems use in performance measurement capabilities: Implications for enhanced competitive advantage," International Journal of Accounting Information Systems, Elsevier, vol. 21(C), pages 1-17.
    5. Kallunki, Juha-Pekka & Laitinen, Erkki K. & Silvola, Hanna, 2011. "Impact of enterprise resource planning systems on management control systems and firm performance," International Journal of Accounting Information Systems, Elsevier, vol. 12(1), pages 20-39.
    6. Robert Scapens & Mostafa Jazayeri, 2003. "ERP systems and management accounting change: opportunities or impacts? A research note," European Accounting Review, Taylor & Francis Journals, vol. 12(1), pages 201-233.
    7. William H. DeLone & Ephraim R. McLean, 1992. "Information Systems Success: The Quest for the Dependent Variable," Information Systems Research, INFORMS, vol. 3(1), pages 60-95, March.
    8. William Yeoh & Aleš Popovič, 2016. "Extending the understanding of critical success factors for implementing business intelligence systems," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 67(1), pages 134-147, January.
    9. Taleizadeh, Ata Allah & Noori-daryan, Mahsa & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items," International Journal of Production Economics, Elsevier, vol. 159(C), pages 285-295.
    10. Bongsug Kevin Chae & David L. Olson, 2013. "Business Analytics For Supply Chain: A Dynamic-Capabilities Framework," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 9-26.
    11. Dechow, Niels & Mouritsen, Jan, 2005. "Enterprise resource planning systems, management control and the quest for integration," Accounting, Organizations and Society, Elsevier, vol. 30(7-8), pages 691-733.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    2. Thorsten Knauer & Nicole Nikiforow & Sebastian Wagener, 2020. "Determinants of information system quality and data quality in management accounting," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 97-121, April.
    3. Ruivo, Pedro & Oliveira, Tiago & Neto, Miguel, 2014. "Examine ERP post-implementation stages of use and value: Empirical evidence from Portuguese SMEs," International Journal of Accounting Information Systems, Elsevier, vol. 15(2), pages 166-184.
    4. Aernoudts, R.H.R.M. & Boom, T. van der & Vosselman, E.G.J. & Pijl, G.J. van der, 2005. "Management Accounting Change and ERP, an Assessment of Research," MPRA Paper 9582, University Library of Munich, Germany.
    5. Roy-Ivar Andreassen, 2020. "Digital technology and changing roles: a management accountant’s dream or nightmare?," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(3), pages 209-238, September.
    6. Andreas G. Georgantopoulos & Evangelos I. Poutos & Nikolaos Eriotis, 2018. "Recent Developments and Trends in Accounting Information Systems," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 3(1), pages 1-9.
    7. Kanellou, Alexandra & Spathis, Charalambos, 2013. "Accounting benefits and satisfaction in an ERP environment," International Journal of Accounting Information Systems, Elsevier, vol. 14(3), pages 209-234.
    8. Jack, Lisa & Kholeif, Ahmed, 2008. "Enterprise Resource Planning and a contest to limit the role of management accountants: A strong structuration perspective," Accounting forum, Elsevier, vol. 32(1), pages 30-45.
    9. Pong, Christopher K.M. & Mitchell, Falconer, 2012. "Inventory investment & control: How have UK companies been doing?," The British Accounting Review, Elsevier, vol. 44(3), pages 173-188.
    10. How, Shi-Min & Alawattage, Chandana, 2012. "Accounting decoupled: A case study of accounting regime change in a Malaysian company," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(6), pages 403-419.
    11. Francesca Maria Cesaroni & Domenico Consoli, 2015. "ICT e piccole imprese. Il Cubo della Predisposizione Tecnologica Aziendale," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2015(1), pages 73-100.
    12. Robert Rieg, 2018. "Tasks, interaction and role perception of management accountants: evidence from Germany," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 183-220, August.
    13. Sameh Ammar & Ghassan H. Mardini, 2021. "Enterprise resource planning enabling segmental information reporting practices of UK‐FTSE 100," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 1205-1237, March.
    14. Reinking, Jeff & Arnold, Vicky & Sutton, Steve G., 2020. "Synthesizing enterprise data through digital dashboards to strategically align performance: Why do operational managers use dashboards?," International Journal of Accounting Information Systems, Elsevier, vol. 37(C).
    15. Knudsen, Dan-Richard, 2020. "Elusive boundaries, power relations, and knowledge production: A systematic review of the literature on digitalization in accounting," International Journal of Accounting Information Systems, Elsevier, vol. 36(C).
    16. Martinez, Daniel E. & Pflueger, Dane & Palermo, Tommaso, 2022. "Accounting and the territorialization of markets: A field study of the Colorado cannabis market," Accounting, Organizations and Society, Elsevier, vol. 102(C).
    17. Teittinen, Henri & Pellinen, Jukka & Järvenpää, Marko, 2013. "ERP in action — Challenges and benefits for management control in SME context," International Journal of Accounting Information Systems, Elsevier, vol. 14(4), pages 278-296.
    18. Ahrens, Thomas & Becker, Albrecht & Burns, John & Chapman, Christopher S. & Granlund, Markus & Habersam, Michael & Hansen, Allan & Khalifa, Rihab & Malmi, Teemu & Mennicken, Andrea & Mikes, Anette & P, 2008. "The future of interpretive accounting research—A polyphonic debate," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(6), pages 840-866.
    19. Mohamed Z. Elbashir & Steve G. Sutton & Habib Mahama & Vicky Arnold, 2021. "Unravelling the integrated information systems and management control paradox: enhancing dynamic capability through business intelligence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1775-1814, April.
    20. Cristiano Busco & Ariela Caglio & Robert Scapens, 2015. "Management and accounting innovations: reflecting on what they are and why they are adopted," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 495-524, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijoais:v:25:y:2017:i:c:p:29-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-accounting-information-systems/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.