Role of the Management Accountant in Value Chain Analysis Management Accountants should recognize that the traditional, functional, internally oriented information m is inadequate or the Firm engaged in global competition. In order to facilitate Value Chain Analysis, should be a change in focus for Management Accounting. The Management Accountant's role will be scant in the following areas-
(i) Need for education, training and awareness:
Management Accountants should bring the importance of customer value to the forefront of Management's strategic thinking. They should take the initiative to bring the Value Chain message to major players in the Firm through seminars, articles, Value Chain examples and Company-specific applications.
(ii) Exploring for information:
VCA requires expertise in internal operations and information and also remands a great deal of external information. Management Accountants must seek relevant financial and non-financial information from sources outside the Firm.
(iii) Creativity:
Management Accountants must integrate databases and potential sources of timely information on competitive forces confronting the business. This calls for innovation and creativity in gathering and analyzing information for management decisions.
(iv) System design:
Designing internal and external information systems to assist managers in planning, monitoring and improving value-creating processes is another challenge facing Management Accountants.
(v) Cooperation:
Management Accountants should solicit support from all senior managers for
allocating resources to develop and improve Value Chain-oriented Information
Systems. The Management Accountant should ensure that the Top Management is committed to Value Chain Analysis and the organizational changes necessary for its successful implementation.
(i) Need for education, training and awareness:
Management Accountants should bring the importance of customer value to the forefront of Management's strategic thinking. They should take the initiative to bring the Value Chain message to major players in the Firm through seminars, articles, Value Chain examples and Company-specific applications.
(ii) Exploring for information:
VCA requires expertise in internal operations and information and also remands a great deal of external information. Management Accountants must seek relevant financial and non-financial information from sources outside the Firm.
(iii) Creativity:
Management Accountants must integrate databases and potential sources of timely information on competitive forces confronting the business. This calls for innovation and creativity in gathering and analyzing information for management decisions.
(iv) System design:
Designing internal and external information systems to assist managers in planning, monitoring and improving value-creating processes is another challenge facing Management Accountants.
(v) Cooperation:
Management Accountants should solicit support from all senior managers for
allocating resources to develop and improve Value Chain-oriented Information
Systems. The Management Accountant should ensure that the Top Management is committed to Value Chain Analysis and the organizational changes necessary for its successful implementation.
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