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Digitisation, 'Big Data' and the transformation of accounting information

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  • Alnoor Bhimani
  • Leslie Willcocks

Abstract

Developments in digitisation, software and processing power and the accompanying data explosion create significant alterations, dilemmas and possibilities for enterprises and their finance function. The article discusses a model for understanding data, information and knowledge relationships. We apply the model to examine developments in strategy, organisational and cost structures, digitisation, business analytics, outsourcing, offshoring and cloud computing. We argue that organisations need to be sensitised to different types of knowledge, the challenges in creating and applying that knowledge, and be more circumspect about what can be achieved through advances in information-based technologies and software. We point to both the potential of and the complexities presented by Big Data in relation to the finance function generally and to management accounting information provision specifically. We suggest that 'Big Data' and data analysis techniques enable executives to act on structured and unstructured information but such action must recognise that the traditionally presumed sequential and linear links among corporate strategy, firm structure and information systems design are no longer in play. Additionally, cost structure changes are affected by developments in how data, information and knowledge can be utilised. We discuss the outsourcing and offshoring of work and their data, information and knowledge ramifications as well as those related to cloud computing. We conclude that the possibilities for the digitally enabled business create a range of 'information literacy' challenges as well as new possibilities for accounting information providers.

Suggested Citation

  • Alnoor Bhimani & Leslie Willcocks, 2014. "Digitisation, 'Big Data' and the transformation of accounting information," Accounting and Business Research, Taylor & Francis Journals, vol. 44(4), pages 469-490, August.
    • Handle: RePEc:taf:acctbr:v:44:y:2014:i:4:p:469-490
    DOI: 10.1080/00014788.2014.910051
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    1. Bhimani, Alnoor, 1996. "Management Accounting: European Perspectives," OUP Catalogue, Oxford University Press, number 9780198289661.
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    Cited by:

    1. Vitor Azzari & Emerson Wagner Mainardes & Aziz Xavier Beiruth & Fábio M. Costa, 2021. "The dimensions of accounting service quality," SN Business & Economics, Springer, vol. 1(8), pages 1-31, August.
    2. Franco Visani, 2017. "Applying business analytics for performance measurement and management. The case study of a software company," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2017(2), pages 89-123.
    3. Bhimani, Alnoor, 2015. "Exploring big data’s strategic consequences," LSE Research Online Documents on Economics 86632, London School of Economics and Political Science, LSE Library.
    4. Anca Antoaneta Vărzaru, 2022. "Assessing Digital Transformation of Cost Accounting Tools in Healthcare," IJERPH, MDPI, vol. 19(23), pages 1-18, November.
    5. J. Piet Hausberg & Kirsten Liere-Netheler & Sven Packmohr & Stefanie Pakura & Kristin Vogelsang, 2019. "Research streams on digital transformation from a holistic business perspective: a systematic literature review and citation network analysis," Journal of Business Economics, Springer, vol. 89(8), pages 931-963, December.
    6. Ulrich Leicht-Deobald & Thorsten Busch & Christoph Schank & Antoinette Weibel & Simon Schafheitle & Isabelle Wildhaber & Gabriel Kasper, 2019. "The Challenges of Algorithm-Based HR Decision-Making for Personal Integrity," Journal of Business Ethics, Springer, vol. 160(2), pages 377-392, December.
    7. Gianluca Gabrielli & Alice Medioli & Paolo Andrei, 2022. "Accounting and Big Data: Trends, opportunities and direction for practitioners and researchers," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2022(2), pages 89-112.
    8. Maël Schnegg & Klaus Möller, 2022. "Strategies for data analytics projects in business performance forecasting: a field study," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 33(2), pages 241-271, June.
    9. Moll, Jodie & Yigitbasioglu, Ogan, 2019. "The role of internet-related technologies in shaping the work of accountants: New directions for accounting research," The British Accounting Review, Elsevier, vol. 51(6).
    10. Seddon, Jonathan J.J.M. & Currie, Wendy L., 2017. "A model for unpacking big data analytics in high-frequency trading," Journal of Business Research, Elsevier, vol. 70(C), pages 300-307.
    11. Sivarajah, Uthayasankar & Kamal, Muhammad Mustafa & Irani, Zahir & Weerakkody, Vishanth, 2017. "Critical analysis of Big Data challenges and analytical methods," Journal of Business Research, Elsevier, vol. 70(C), pages 263-286.
    12. Purva Grover & Arpan Kumar Kar, 2017. "Big Data Analytics: A Review on Theoretical Contributions and Tools Used in Literature," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(3), pages 203-229, September.
    13. Oesterreich, Thuy Duong & Teuteberg, Frank & Bensberg, Frank & Buscher, Gandalf, 2019. "The controlling profession in the digital age: Understanding the impact of digitisation on the controller's job roles, skills and competences," International Journal of Accounting Information Systems, Elsevier, vol. 35(C).
    14. Michael Kend & Lan Anh Nguyen, 2020. "Big Data Analytics and Other Emerging Technologies: The Impact on the Australian Audit and Assurance Profession," Australian Accounting Review, CPA Australia, vol. 30(4), pages 269-282, December.
    15. 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.
    16. 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).
    17. Alnoor Bhimani, 2020. "Digital data and management accounting: why we need to rethink research methods," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 31(1), pages 9-23, April.
    18. PhD Student Pantazi Anca Alexandra, & PhD Student Coman Elena Liliana, 2022. "Analysis of financial reporting in terms of costs for decision-making," Social-Economic Debates, Association for Entreprenorial Spirit Promotion, vol. 11(2), pages 1-15, Decembrie.
    19. Sophie Cockcroft & Mark Russell, 2018. "Big Data Opportunities for Accounting and Finance Practice and Research," Australian Accounting Review, CPA Australia, vol. 28(3), pages 323-333, September.

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