Riccardo Silvi

Demand chain management: an integrative approach in automotive retailing

Recent reviews of the Operations Management research literature have shown a surprising little shift towards empirical methodologies from traditional modeling solution methods. In addition, there is generally a lack of empirical testing and validation of manufacturing strategies. Coupled to this fact is that empirical work is rarely carried out in an inter-disciplinary manner, with the complete combination of OM, marketing, strategy, lean thinking and accounting approaches particularly poorly researched. Fully cross-functional integrative empirical research is required to help support the understanding of the applicability of OM practices within industry. This paper explores such an integration of approaches developed within the Lean Thinking, Strategic Cost Management, Marketing and Policy Deployment areas. In order to investigate the approach a single automotive retailer is used as an instrumental case. The results of the study show that the new approach stands up well as an integrative approach that can prove highly beneficial results. However, the pilot work also identified a number of limitations that are the basis of further refinement and testing of the method.

A framework for business analytics in performance management

Purpose - Increased business competition requires even more rapid and sophisticated information and data analysis. These requirements challenge performance management to effectively support the decision making process. Business analytics is an emerging field that can potentially extend the domain of performance management to provide an improved understanding of business dynamics and lead to a better decision making. The purpose of this positional paper is to introduce performance management analytics as a potential extension of performance management research and practice. The paper clarifies the possible application areas of business analytics and their advantages within the context of performance management. Design/methodology/approach - The paper employs a literature based analysis and from this a conceptual argument is established. Finally, a business analytical model is presented to be used to undertake future research. Findings - The paper clarifies the possible application areas of business analytics and their advantages within the context of organizational performance management. Originality/value - The main implication is that the paper provides evidence of the use of business analytics for understanding organizational performance. Several insights are provided for management accounting research and education.

Investigating the Management of Knowledge for Competitive Advantage: A Strategic Cost Management Perspective

The purpose of the paper is to develop and apply a framework that examines the effectiveness and efficiency of managing knowledge in organizations for competitive advantage. The paper reviews knowledge management and strategic cost management literatures to identify key elements that determine and facilitate the enhancement of competitive advantage. It then develops a cost-knowledge management (CKM) framework that integrates these elements and enables the analysis of how knowledge utilization in organizational activities can be made more effective and efficient. The CKM framework is applied to a sample of four Italian firms operating in the mechanical industry. Both the results of applying the CKM framework and the insights that are generated are discussed.

The practice of strategic performance measurement systems: Models, drivers and information effectiveness

Purpose – For over 20 years, management control literature has indicated the importance of supporting the strategy development and implementation process with strategic performance measurement systems (SPMS) and integrating traditional financial indicators with a set of multidimensional forward-looking measures focusing on the long term and linked to cause-effect relationships. Nevertheless, knowledge on the specific SPMS models used in practice and their effectiveness in supporting the managerial decision-making process is still fragmented and ambiguous. The purpose of this paper is to first analyse the SPMS models used in practice, also considering the role of strategy and firm size as drivers of adoption, thereafter analysing the capability of SPMS models to provide managers with measures that are consistent with their strategic information needs. Design/methodology/approach – The research is based on a survey involving 88 Italian medium-large sized firms (or subsidiaries of multinational firms) operat...

Knowledge management: a strategic cost management perspective

Organizational knowledge is receiving increasing attention in the management literature because ofits claimed capability to create a competitive advantage. In recent years, notable research effortshave been addressed to strategic, organizational, technological, financial and management reportingissues linked to the knowledge role in organizations.This paper focuses its attention to the way knowledge affects firms cost structure. Most specifically,by using recent research development in the field of strategic cost management, the paperinvestigates the activities related to organizational knowledge, their cost and cost drivers, and theirimpact on firm’s profit potential with the aim to provide information for effective strategic decisionmaking and control. After a brief literature review of knowledge management theories andapplications, research model and methodology will be elicited. Then the model will be applied tofour Italian companies operating in the mechanical industry. While this paper is a work in progress,evidence shows that strategic cost management framework might represent a valuable source forunderstanding and managing the critical aspects related with knowledge management andmeasurement (specifically what a firm knows or should know, which activities should a firmperform in order to capture, develop or leverage its knowledge). In the conclusive part theoreticaland methodological issues will be reported as well as future research efforts.

Performance Management Analytics - The Next Extension in Managerial Accounting

Hypercompetitive businesses are increasingly requiring the need for more rapid and sophisticated information and data analysis. This challenges management accounting’s role in effectively supporting the management decision making process. The emerging area of business analytics can potentially extend the domain of management accounting to the comprehension of business dynamics and provide more solid inputs for managing its performance. This paper introduces performance management analytics (PMA) as the next extension in management accounting research and practice. Specifically, it defines PMA as the understanding of relevant business dynamics through the use of data and analytical methods. In addition, it suggests PMA as a relevant part of performance management systems and moreover as the missing link between the existence of highly sophisticated performance management systems and their effective implementation. Furthermore, it provides a framework that incorporates a set of key components (input, process, output, outcome) where performance is grounded in its context, captured, coupled, and controlled. This framework might be useful for research and practice in the area of performance management. The relevance of performance analytics might be a predestinated subject for further empirical research in the field of the advances in management accounting with specific regards to performance management systems. If relevance and effectiveness of performance management analytics will arise, education on management accounting would have to be redesigned and integrated with performance analytical topics and new skills and competences on IT and analytical methods might be required for management accountants.

Performance Measurement and Capitals

This chapter focuses on the most important characteristics that Key Performance Indicators (KPIs) should have in order to reinforce their informative effectiveness in stakeholders’ decision processes. To this aim, we discuss the role that KPIs can potentially play within Integrated Reporting (IR)—i.e. measuring the ability of the company to create value, by increasing or transforming its tangible and intangible capital. Moreover, given the lack of a generally accepted model for measuring and communicating the integrated performance of a company, this chapter introduces a theoretical framework in accordance with IR guidelines and principles. It provides an innovative perspective that contributes to integrate internal- and external-oriented performance measurement systems.

The role of performance indicators in management commentary

Recent literature on financial reporting underlines that, in order to meet the changing needs of business reporting users, more information with a forward-looking perspective should be provided, with a focus on those factors that are responsible for longer- term value, including non-financial measurers. This article hence focuses on the importance of Key Performance Indicators (KPIs) in Management Commentary (MC). Through content analysis, we examine a sample of 111 reports from around the world (following different local and/or international regulations). The paper explores how organizations in practice use KPIs for external purposes, first investigating to what extent KPIs provide the information required by the MC frameworks, and, secondly, whether such KPIs have the suggested characteristics. Results show that although KPIs seem to potentially play a valuable and recognized role in providing the information required by the different MC frameworks, a large number of companies have not provided an effective and balanced picture of the drivers and factors that will lead their future performance. This paper contributes to the scarce research on the effectiveness of different approaches to regulate MC reports, with a specific focus on KPIs. It also highlights some critical issues concerning what and how KPI information should be produced and reported.

A Framework for Extending Lean Accounting into a Supply Chain

The Lean Transformation of the Supply Chain represents a major challenge in Lean Management studies and involves both the reduction of waste (both within and between companies) and supply chain alignment to the actual needs of the final customer. At the same time, Lean Management is looking for an information system able to support a Lean Transformation by incorporating all the drivers of company performance in the development of a cost system. In order to explore the possibility of an integration between the Cost Management practices, the Lean Management principles, and the Value Analysis studies, this paper presents a new integrated methodology, as well as the results of an international and interdisciplinaty research project: the Le.M.A. (Lean Management Accounting) Program. The case study approach adopted reviews an internal supply chain with a view to extending the work at a later point to an external supply chain.

Business Performance Analytics: exploring the potential for Performance Management Systems

Abstract Business Performance Analytics (BPA) entails the systematic use of data and analytical methods (mathematical, econometric and statistical) for performance measurement and management. Although potentially overcoming some traditional diagnostic issues related to Performance Management Systems (PMS), such as information overload, absence of cause-effect relationships, lack of a holistic view of the organisation, research in the field is still in its infancy. A comprehensive model for operationalising analytics for diagnostic and interactive PMS is still lacking. Adopting an action research approach, this paper addresses this gap and develops a five-step framework applied to a company operating in the construction industry. The results show that in addition to encouraging dialogue, BPA can contribute to identifying critical performance variables, potential sources of risk and related interdependencies. A number of critical issues in implementing data-based approaches are also highlighted, including data quality, organisational competences and cultural shifts.