Advertisement

A Comprehensive Framework for Accounting 4.0: Implications of Industry 4.0 in Digital Era

  • Banu Esra AslanertikEmail author
  • Bengü Yardımcı
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

The fourth industrial revolution, namely “Industry 4.0” refers to a new digital industrial technology, digital transformation and the fourth phase of technological advancement promoting the industrial production of the future. Cyber-Physical Systems (CPS) and the Internet of things (IoT) are the main forces of industry 4.0 which are improving the manufacturing systems and business processes by leading-edge innovations. Industry 4.0 with integrated production and logistics processes, growing interaction between robots and human and data flows within global value chains will have a significant impact on all business processes. In this context, accounting systems, which have a very important function for businesses, need to adapt to industry 4.0 by redefining the whole accounting system, as well as redesigned strategies. Industry 4.0 offers a new potential for the transformation of the accounting process through digitalization and application of new tools of industry 4.0 such as big data analytics, networking, system integration. The main objective of this chapter is to offer a conceptual framework for a newly designed accounting process in terms of procedures, technology and accounting professionals.

References

  1. Aslanertik, B. E. (2007). Enabling integration to create value through process-based management accounting systems. International Journal of Value Chain Management, 1(3), 223–238.CrossRefGoogle Scholar
  2. Bhimani, A., & Willcocks, L. (2014). Digitisation, ‘big data’ and the transformation of accounting information. Accounting and Business Research, 44(4), 469–490.CrossRefGoogle Scholar
  3. Bourmistrov, A., & Kaarboe, K. (2013). From comfort to stretch zones: A field study of two multinational companies applying beyond budgeting ideas. Management Accounting Research, 24(3), 196–211.CrossRefGoogle Scholar
  4. Burritt, R., & Christ, K. (2016). Industry 4.0 and environmental accounting: a new revolution? Journal of Sustainability and Social Responsibility, 1, 23–38.CrossRefGoogle Scholar
  5. Chen, T., Barbarossa, S., Wang, X., Giannakis, G. B., & Zhang, Z. L. (2019). Learning and management for internet of things: Accounting for adaptivity and scalability. Proceedings of the IEEE, 107(4), 778–796.CrossRefGoogle Scholar
  6. Dai, J., & Vasarhelyi, M. A. (2016). Imagineering Audit 4.0. Journal of Emerging Technologies in Accounting, 13(1), 1–15.CrossRefGoogle Scholar
  7. Davies, R. (2015). Industry 4.0 digitalisation for productivity and growth. European Parliamentary Research Service, 10.Google Scholar
  8. Deloitte. (2015). Industry 4 (p. 0). Challenges and solutions for the digital transformation and use of exponential technologies. Deloitte AG: Zurich. https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/manufacturing/ch-en-manufacturing-industry-4-0-24102014.pdf Google Scholar
  9. Ernst and Young. (2017). The role of the CFO and finance function in a 4.0 world. UK: E&Y. https://www.ey.com/uk/en/services/assurance/ey-the-role-of-the-cfoand-finance-function-in-a-4-world-form Google Scholar
  10. Erol, S., Schumacher, A., & Sihn, W. (2016, January). Strategic guidance towards Industry 4.0–a three-stage process model. In International Conference on Competitive Manufacturing (Vol. 9, No. 1, pp. 495–501).Google Scholar
  11. Green, S., McKinney Jr., E., Heppard, K., & Garcia, L. (2018). Big data, digital demand and decision-making. International Journal of Accounting & Information Management, 26(4), 541–555.CrossRefGoogle Scholar
  12. Griffin, P. A., & Wright, A. M. (2015). Commentaries on big data’s importance for accounting and auditing. Accounting Horizons, 29(2), 377–379.CrossRefGoogle Scholar
  13. Hitpass, B., & Astudillo, H. (2019). Industry 4.0 challenges for business process management and electronic-commerce. Journal of Theoretical and Applied Electronic Commerce Research, 14(1), I–III.CrossRefGoogle Scholar
  14. Hofmann, E., & Rüsch, M. (2017). Industry 4.0 and the current status as well as future prospects on logistics. Computers in Industry, 89, 23–34.CrossRefGoogle Scholar
  15. https://consulting.ey.com/agile-grc-a-new-approach-to-governance-trust-and-risk-in-the-digital-age/. 31 August 2017.Google Scholar
  16. https://www.elevenpaths.com/solutions/industria-4-0/index.html. 25 April 2019.Google Scholar
  17. Huerta, E., & Jensen, S. (2017). An accounting information systems perspective on data analytics and big data. Journal of Information Systems, 31(3), 101–114.CrossRefGoogle Scholar
  18. Kaplan, R. S., & Norton, D. P. (1996). Linking the balanced scorecard to strategy. California Management Review, 39(1), 53–79.CrossRefGoogle Scholar
  19. Moffitt, K. C., & Vasarhelyi, M. A. (2013). AIS in an age of big data. Journal of Information Systems, 27(2), 1–19.CrossRefGoogle Scholar
  20. O’Leary, D. E. (2013). Big data’, The ‘internet of things’ and the ‘internet of signs’. Intelligent Systems in Accounting, Finance and Management, 20(1), 53–65.CrossRefGoogle Scholar
  21. Richins, G., Stapleton, A., Stratopoulos, T. C., & Wong, C. (2017). Big data analytics: Opportunity or threat for the accounting profession? Journal of Information Systems, 31(3), 63–79.CrossRefGoogle Scholar
  22. Rüßmann, M., Lorenz M., Gerbert, P., Waldner, M., Justus, J., Engel, P. & Harnisch, M. (2015). Industry 4.0 the future of productivity and growth in manufacturing industries. Retrieved from https://www.bcg.com/publications/2015/engineered_products_project_business_industry_4_future_productivity_growth_manufacturing_industries.aspx
  23. Sandengen, O. C., Estensen, L. A., Rødseth, H., & Schjølberg, P. (2016). High performance manufacturing—an innovative contribution towards industry 4.0. In 6th international workshop of advanced manufacturing and automation. Atlantis Press.Google Scholar
  24. Sauter, R., Bode, M., & Kittelberger, D. (2015). How Industry 4.0 is changing how we manage value creation. Retrieved from https://www.horvath-partners.com/en/publications/featured-articles-interviews/detail/how-industry-40-is-changing-how-we-manage-value-creation
  25. Schoenthaler, F., Augenstein, D., & Karle, T. (2015, July). Design and governance of collaborative business processes in Industry 4.0. In Proceedings of the workshop on cross-organizational and cross-company BPM (XOC-BPM) co-located with the 17th IEEE Conference on Business Informatics (CBI 2015), Lisbon, Portugal.Google Scholar
  26. Schwartz, J., Stockton, H., & Monahan, K. (2017). Forces of change: The future of work. Retrieved May 6, 2019, from https://www2.deloitte.com/content/dam/insights/us/articles/4322_Forces-of-change_FoW/DI_Forces-of-change_FoW.pdf
  27. Sledgianowski, D., Gomaa, M., & Tan, C. (2017). Toward integration of big data, technology and information systems competencies into the accounting curriculum. J Account Educ, 38, 81–93.CrossRefGoogle Scholar
  28. Vasarhelyi, M. A., Kogan, A., & Tuttle, B. M. (2015). Big data in accounting: An overview. Accounting Horizons, 29(2), 381–396.CrossRefGoogle Scholar
  29. Warren Jr., J. D., Moffitt, K. C., & Byrnes, P. (2015). How big data will change accounting. Accounting Horizons, 29(2), 397–407.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Department of Business Administration, Faculty of BusinessDokuz Eylul UniversityIzmirTurkey
  2. 2.Department of Finance, Banking and Insurance, Vocational SchoolYaşar UniversityIzmirTurkey

Personalised recommendations