Management Accounting in Disruptive Times: Challenges and Strategies

Like manyotherfields,Management Accountingis being disrupted by a whole host of new  technologies,  including big data,  predictive  analytics,  artificial  intelligence  (AI), blockchain, cognitive computing, machine learning, and robotics process automation (RPA).   A   recent   Institute   of   Management   Accountants   (IMA)   survey1of   161 management   accounting   professionals findsthat   42   percent   are   worried   that technology  will  eliminate  their  jobs,  with  the  greatest  concern  coming  from  those overseeing  general  accounting  functions  such  asbilling  and  budgeting.  While  these will result in the elimination of many management accounting positions, they also have the potential to create new ones. The key to the later will be the continued evolution of the  management  accountant’s  rolefrom  its  traditional  focus  on  reporting  and stewardship  to  becoming  a  more  complete  business  partner  who  enables  an organization  to  enhance  performance.  To  exploit  the  digital  transformation  and successful  transition tovalue  creator’s  role,  management  accountants  will  need  to enhance  their  data  analytics  skills,  develop  their  strategic  management  skills,  and focus on innovation.Required:Working in groups of 4-5 students, select one large global companythat operates in a highly competitive and changing business environment. Assume you are the senior management accountant of this company. Prepare a report to the CEO that addresses the following questions:a.Discuss challenges the new disruptive technologies have posed in the areas of strategic management accounting and the role of management accountants.b.Explores  ways  to  manage,  analyze  and  extract  values  from  the  changing environments. In your answer, explain clearly how your suggestions (e.g., tools and techniques) can help managing costs and improving the performance of acompany. (1300 words: 40marks)1Source:
c.In  an  appendix  to  the  report  ,  provide  a  group reflective  statement  that summarizesindividual  group  member’s  contribution, key challenges faced by individuals and the group in preparing the report, and the key learning experiencesof individuals