Evaluating Management Accounting in Innovation: Canon & Apple Inc.

This essay critically evaluates the role of management accounting systems and information provision in the innovation processes of Canon Inc. and Apple Computer Inc., based on a journal article comparing the two companies. It identifies the components of each company's management accounting system, discussing their relevance in enabling efficient and effective decision-making. The essay explains how management accounting contributes to the innovation process as a process of information creation and transmission, providing specific examples from both companies. Finally, it outlines key outcomes and lessons learned from the article's research findings that are useful for management accountants, emphasizing the importance of continuous innovation and improvement in management information systems for long-term success in a competitive business environment. Desklib provides similar solved assignments for students.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note:

1MANAGERIAL ACCOUNTING
Table of Contents
Part B:.........................................................................................................................................2
Sub part 1:..............................................................................................................................2
Sub part 2:..............................................................................................................................4
Sub part 3:..............................................................................................................................5
References and bibliography:.....................................................................................................7

2MANAGERIAL ACCOUNTING
Part B:
Sub part 1:
Management accounting can be defined as the process of evaluation, analysis and
preparation of various useful reports which can help in various managerial decision making
process of a business organisation. Its scope is not that much wide as financial accounting but
it has a greater significance in achieving the organisational goals of an organisation by
helping in business decision making and strategy building process. The journal “Towards a
new theory of innovation management: A case study comparing Cannon, Inc. and Apple
Computer Inc.” is a discussion of such management accounting process of two renowned
technologies companies. It gives an overview of various management accounting process and
techniques of Cannon Inc and Apple Computer Inc (Greenberg 2017).
Cannon Inc is known for their innovative and highly advanced photo copier machines
and copying solutions. On the other hand the Apple Inc is the market leader in desktop and
laptop computers and mobile phones. Every organisation achieves success based on certain
core competencies and efficiencies in their business operations and management. It can be
observed from various studies that, the technologies market are ever changing and various
companies are coming into the competition with their innovative products and services.
Therefore, to survive in such a competitive situation and to become the market leader,
companies must be innovative in their product offerings as well as they need to be cost
effective and cost efficient. Efficient cost and management system can help and organisation
to offer their products to their customers at a lowest possible costs.
There are various aspects of the management account process. In this journal the main
component of the cost and management accounting processes that have been given most

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emphasise is the information creation and the system of efficient information sharing within
the organisaotn. It can be cited from the journal that, the Canon Inc, formed a group for
analysis and feasibility study for commercially launching of their newly developed product
the mini copier. They had included various personnel from almost all of their working
groups. Their strategy behind such an act was to include personnel from executive to ground
level workers, so that information could be gathered from all the levels of the organisation
(Krajewski, Ritzman and Malhotra 2013).
The struggled of Steven Paul Jobs behind the development of Apple Mac Pc is very
much known to us and its success is also known to everyone. Behind the success of the Apple
Computer Inc, the contribution of their efficient and effective management can be observed
well. It has been outlined in the selected journal, that the company has a strong and effective
team of executive and managers and they are continuously striving toward innovations in
their products and achievement of their organisational goals. They have continuous flow of
information from the all levels of the management and the departments (Krajewski, Ritzman
and Malhotra 2013). Their innovative information creation and information sharing facilities
helped them to make their management more strong and efficient and equipped their
management to make solutions for all the managerial problems that the company is facing. It
helped them to achieve their mission and vision and to achieve a sustainable growth in their
business.
Based on the above analysis and discussion, it can be commented that, the application
of various management accounting tools and techniques in real time business situation can
give the optimal solution for the managerial issues and it can help them to achieve the overall
goal of the business.

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Sub part 2:
Managerial accounting is a continuous process of ascertaining various costs related
information and helping the management to make various important business decisions. It
also helps in creating innovative management process which can be applied to smoother the
activities of management. The journal “Towards a new theory of innovation management: A
case study comparing Cannon, Inc. and Apple Computer Inc.” explains the process of making
innovation in the business management and application of such innovative management
techniques in the business practice. It has talked about innovation in the information system
of an organization. The author believed that, the information system or the creation and
sharing of management information in a business have a very crucial role to play in achieving
the managerial efficiency and effectiveness. The argument made by the author can be proved
with the example of the given case study of Cannon Inc and the Apple Computer Inc. In both
the companies, it can be cited that, they have customised their information systems and their
innovative information creating and sharing system contributed a lot towards their success.
As decisions are made based n various internal and external information, the effectiveness of
those decisions depends largely on the available information (Krajewski, Ritzman and
Malhotra 2013).
The Journal “Towards a new theory of innovation management: A case study
comparing Cannon, Inc. and Apple Computer Inc.” it can be cited that, in case Cannon Inc
their improved collaboration system with all the department of their organization and the
effective communication and information system helped them to bring innovative products in
the market. They utilized their innovative management tools and techniques and through the
communication in an improved information system, they gathered all the executives in one
platform to find the solution for their managerial issues. Therefore, innovation in the
management process is need for a long term success and a sustainable growth of the business.

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In case of Apple Computer Inc also an innovation in the management process can be
noticed. They mainly made innovation in their high tech analysis systems and information
creation which have become an integral part of their management process. The management
processes in the selected companies are quite a different from each other. Cannon Inc mainly
used some traditional management tools and techniques with a little changes and innovation,
whereas the Apple Computer Inc used various improved and efficient analytical tools in their
management process (Krajewski, Ritzman and Malhotra 2013).
Lastly, it can be commented that, innovation in the management process is required to
keep the spirit of the management alive and to become the market leader by countering all the
challenges in the market.
Sub part 3:
Management is the strength of any organisation and it makes all the departments of
the business to come together and to work for achievement of the organisational goals. The
decision making process is one of the most important function of the business management.
Business organisations compete with their competitors in the market with their innovative
products and service offerings. Management is the process of such innovation and
achievement of organisational goals (Laudon and Laudon 2016).
There is a great importance of the information system or the management information
system in effective and efficient decision making. There are various such strategy building
and decision making process which can be applied to business to solve the issues faced by the
management and to make an optimal solution for the problem (Laudon and Laudon 2016).
In the journal “Towards a new theory of innovation management: A case study
comparing Cannon, Inc. and Apple Computer Inc.” examples of such innovation in the
management tools and management information system have been outlined and it can be

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observed well that those techniques were successful in helping the organisation to achieve
their success. Continuous innovation is the management techniques and information creation
and sharing system can help an organisation to improve their management process.
Therefore, the management information system is an integral and important part of the
effective and innovating management system. It can be recommend for business
organisations to strive for innovation in their management information system, so that it can
improve the efficiency of their managerial activities (Krajewski, Ritzman and Malhotra
2013).
From the above discussions, it can be concluded that, management information
system should be a part of the business management process and there must be a continuous
innovation and improvement in the management systems. It can help an organisation to
achieve a long term success in a competitive scenario.

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References and bibliography:
Alexander, K., 2013. Facilities management: theory and practice. Routledge.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Dalkir, K., 2013. Knowledge management in theory and practice. Routledge.
Galliers, R.D. and Leidner, D.E., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Greenberg, J.S., 2017. Comprehensive stress management. McGraw-Hill Education.
Innovation, C., 2019. Information, Process, Management.
Jarle Gressgård, L., Amundsen, O., Merethe Aasen, T. and Hansen, K., 2014. Use of
information and communication technology to support employee-driven innovation in
organizations: a knowledge management perspective. Journal of Knowledge
Management, 18(4), pp.633-650.
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management. Pearson,.
Laudon, K.C. and Laudon, J.P., 2015. Management Information Systems: Managing the
Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Massa, L. and Tucci, C.L., 2013. Business model innovation. The Oxford handbook of
innovation management, 20(18), pp.420-441.