The transformation of management control in the digital age: changes in practices, tools and the role of the controller

Abstract

Digitalisation is gradually transforming the way organisations operate and is having a direct impact on management control practices. Automation, ERP systems, Business Intelligence, Big Data and data analysis tools are changing the way information is produced, reported, forecast and used to support decision-making. However, this evolution goes beyond the purely technological dimension and is leading to a re-evaluation of the roles and skills required of management controllers.

This article provides a review of the literature on the transformations in management control in the age of digitalisation. The analysis highlights a shift towards more automated, integrated and data-analytical practices, accompanied by a gradual repositioning of the management controller towards advisory and decision-support activities. It also highlights several limitations relating to data quality, digital skills, organisational changes and the adoption of technologies. Digitalisation thus appears to be a catalyst for the renewal of management accounting, the effects of which remain closely linked to the organisational and human conditions under which it is implemented.

Keywords: Management accounting; Digitalisation; Digital transformation; Digital technologies; Management accountant; Performance management.

Received Date: April 07, 2023                  Accepted Date: May 10, 2023          

Published Date: July 04, 2023

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/808