Sample Technology Paper on Digital Innovations: High-Tech Limited in YORKSHIRE, England


Technological innovations and inventions are consistently evolving global operations with new improvised styles introduced to solve complex issues in a fast, easy and efficient manner. The business field have specifically experienced radical changes digital innovations. Business firms are necessitated to either adopt digital operation strategy or risk their services from turning obsolete and irrelevant (Gümüş, 2011). Business innovations have mainly been impacted by extended demands from consumers, increased competition rates and development of new markets and target groups (Varriale, 2018). Today, the service life expectancy among companies have declined from sixty years as per the record half a century ago to barely eighteen years in the twenty fist century. All these organizational changes are attributable to digital innovations. Digital innovation involves the application of a digital technology to existing business problems to facilitate improved outcomes. For instance, a company may opt to digitalize its operations to reduce operation costs through reducing labor force to enhance fast and efficient output. (Tschakert, 2011) Digital innovations have had significant impacts on business firms. However, despite these effects some firms are yet to digitalize their operations, while some that have digitalized are yet to fully utilize its full potential. This study reviews the impacts of advanced technology on managerial accounting practices in organizations by reviewing the various innovations introduced to improve the field of accounting. The study further reviews the impact of digital organization in a practical case study to evaluate High-Tech limited, balanced scorecard and Tableau de bond.

Impacts of digital innovations on organizations

Digitalization has led to a profound impact on the way of operation in most organizations. Through disruptive innovation, companies are adopting innovative strategies meant to foster a competitive advantage on their operations. Companies are introducing innovative strategies in different operation fields such as customer communication, application of big data to identify consumer trends and extensive demands, interrelated connections among firms operating under a similar field among others. For instance automobile firms have improvised customer communication by adopting online configurators where consumers can direct car manufacturers on the alterations they require in their desired car. As such, clients no longer have to visit various showrooms when seeking for a machine that is compatible with their requirements (Cong, 2010). Also, insurance companies no longer have to take customer cars for valuation to identify premium rates. Rather, they can easily install a tracking device that gives all client information to the underwriters. Digital innovations are also transforming aerodynamics, robotics, artificial intelligence and data analytics through development of software that enables films related to these fields in achieving the desired goals in a shorter period and with less incurred amounts.

Influences of digital technologies on management accounting

The field of managerial accounting forms the basis of operations in every firm. Managerial accounting is the process in which managers utilize the provisions of accounting information to make informed decisions on matters pertaining the control of their organizations (Hiebl, 2015). This involves identifying, synthesizing, measuring ad analyzing financial information to make decisions that foster a forward movement in their organization. Various technological innovations that are disruptive to the field of managerial accounting include the introduction of cloud computing, block chain, big data techniques and artificial intelligence (Moers, 2015).

Cloud computing technology

This is an innovative strategy that enables business organizations to utilize the internet to run their daily operations such that they can access and streamline through all organizational information without time or locational limitations. Cloud computing is simply the on-demand delivery of computer services such as storage, networking, analytics, databases, and various software (Bendovschi et al., 2013). Also, big firms save on storage costs and limit the risks of loss of data through cybercrimes. Cloud systems enables accountants to account for any arising issues in organizations at any time or in any location thus facilitating an all-round continuity of operations (Quinn, 2015). Managers can also access accounting information at their most preferred location and time such that they can make a detailed analysis and come up with informed decisions through smart devices and in a timely manner (Cong, 2010). However, the cloud systems posits security limitations as it is hard to secure data for organizations that use a public cloud system (Wang, 2017). Provision of a solution would enhance the efficacy of cloud computing in evolving the field of management accounting.

Artificial intelligence

Artificial intelligence is one of the most underexplored innovations despite its far reaching significance in most operations. Different firms lack informed description on the applicability of the technique in business processes. Artificial intelligence involves the ability of a computer program or a programmed machines such as a robot to operate like human beings by simply thinking and learning. It is also incorporates the programming of computers to act without encoding them with commands (Davenport, 2017). Artificial intelligence is highly applicable in managerial accounting to perform bulky tasks such as data entry and computational analysis in a fast and more efficient way. It helps save money in that it does not require hired labor to operate, and also saves on time due to the ability of the programs to run numerous operations at a go (Moudud-Ul-Huq, 2014). Hojatpour (2017) explained that it has also been applied by managers to inform clients and shareholders on the movement of their finances in the business entity. Further, organizations have designed an artificial intelligence software that presents a comprehensive and accurate insight to their clients.

Big data analytics

Most organizations have been overwhelmed by the consistent rise in global data in their storage systems and databases. Research indicates that global data doubles after every one and a half years, limiting the ability of organizations to analyze and come up with conclusive information. However, with introduction of big data analytics system, organizations have increased their data mining capacity with over forty percent (Zhang, 2014). Most organizations have adopted the continuous data mining technique where data is analyzed as it enters their data bases. This postulates that soon, organizations will manage to analyze any amount of data using the bug data analytic systems. This analysis provides managers with detailed information concerning consumers and the organization in general. Further, the managers obtain synthesized accounting data which they can easily analyze and make conclusive decisions. Further, data analysis has created room for digitalization as organizations seek to fulfill the demands of consumers arising from these analysis.

The Block chain technology

Block chain is an accounting technology that forms the basics of the accounting profession through maintaining the ownership and ledger of assets. Therefore, the technology is set to replace the role of accountants in performing their core tasks thus assisting organizations to save on labor costs for hiring accounting professionals (Vasarhelyi, 2017). Though the technology is still under development, it is set to introduce the double ledger entry system that will enable a single ledger entry instead of the manual separated entry of data in ledgers (Kalyanaraman et al., 2016). Through this, block chain will reduce costs, save on time and enhance the integrity of management accountants through provision of highly accurate accounting records.

Case study of High- Tech Limited

High-Tech initiated its operations 1901 at Yorkshire as a dales company for punch cards, cheese and meat before evolving to the manufacture of computers. The company had an initial employee count of 1300 employees and had international links where it exported its products in Wales, Scotland, and England. The company experienced a downturn in its business operations as it would occasionally fail to meet time restrictions for its deliveries. Strategies to counter the failing operations of the company had to be put in place. These included the incorporation of health sales incentives, implementation of advertising strategies to restore the company’s pride, advancement in customer delivery strategy and enhancing the attractiveness of its employees by introducing a new uniform in form of a dark suit. Further, the company had to specialize in production and sale of the tabulation machines that were high on demand during that period. The company expounded its international sales network to the United Kingdom, South America, Australia and Asian continent. High-Tech gained a significant market following amid the world war two since its operations were not altered due to the high support that the company received from the local government, mainly because it was one of the funding agencies for its country’s operations in the world war. Further, the company had indicated high corporate social responsibility by funding casualties that were involved in the war. This prompted mass following making the operations of High-Tech to blossom.  Today, High-Tech retains its initial manufacturing offices in Yorkshire but has also expanded in France by opening a manufacturing point in Essonners. The company seeks to obtain corporate agreements every years via SAP adapters in the bid to widen its market share in the computer hardware market industry. These strategy has incurred significant costs on the company due to the separate management of its manufacture points thus subjecting the focus on accounting costs to record analysis and budgeting.


The value chain model incorporates all operations involved in a firm by creating a linking connection between them through a heightened rate of competition. The primary operations at High-Tech involve the manufacture of goods according to consumer demands and the delivery of services. The secondary operations include supporting services to the production of goods and supply of services to the target markets (Fernandez-Stark, 2011). These include procurement, the infrastructural development of the firm, research and development to develop new products and understand the target market and human resource management (Gümüş, 2011). The principal activities include logistic operations, service, marketing strategies, inbound logistics and sales.  The company’s goal is to successfully run the three components of the supply chain to enhance a competitive strategy.

  1. Primary activities

Primary activities are the prime operations of the corporation that help in the manufacture of goods and provision of services to consumers. It involves a number of strategies such as inbound logistics, operations, outbound logistics, sales and marketing and provision of services.

  • Inbound logistics- this involves the initial strategy in the supply chain where the company obtains raw materials for the production of low-end servers and personal computer systems (Hezabr, 2015). Previous data indicates the need for an urgent action to improve the inbound logistics following a recent decline in the sale prices and its limitations in capturing the right prices till the succeeding quarter of a fiscal year.
  • Operations- this involves the use of corrected raw materials to assemble low end servers and personal computers and packaging them for supply. Package containers are equipped with barcodes and derail numbers for easy cost tracking.
  • Outbound logistics- this involves the supply of finished products to satisfy customer orders and storing others for stock. Bulkiness of servers incurs lots of transport costs for High-Tech.
  • Sales and marketing- this involves the strategies of creating market awareness on the existence of High-Tech products in the market. It involves meetings among the marketing department members to discuss sales strategies and stipulated prices (Rogošić, 2012). The company is currently considering to conduct direct sales to customers to limit the use of retailers as their intermediaries.
  • Service- High-Tech offers delivery services, warranty and also rebates for obsolete stock to its clients.
  1. Secondary activities
  • Technological development- High-Tech has incorporated technological advances in its operations. It uses the SAP system, a technologically advanced accounting system and also uses technology to track product costs in terms of barcodes and serial numbers (Levant, 2014).
  • Human resource management- human resource is the backbone to the success of any organization. High-Tech allocates five percent of operational funds to HR management. Through this, the company has enhanced stability in labor provision thus assisting it to retain its competitive advantage.
  • Firm infrastructure- the company has sufficient infrastructure to support all operations in the supply chain.
  • Procurement- this involves all the supply activities such as the purchase of raw material and other services (Guilding, 2012). The company needs to improve on this section by retaining procurement records for record keeping and accounting practices.


The balanced scoreboard is an analytical review of business by the managers through different perspective such as customers, internal business processes, innovation, learning and its customers. The main objective of the balanced scorecard at Yorkshire is to optimize the costs of production by incorporating the use of digital technologies to replace traditional methods. It analyzes both financial and non-financial performance indicators (De Oliveira, 2012). For instance, the firm could integrate social media marketing to reach a wider scope and reduce on marketing costs. Also, robot systems could be integrated for storage services in the