Cloud Computing is Ushering in a Paradigm Shift in Business Models; Can Management Accounting Stay Unaffected?

Abstract

Cloud services are just not a Technology but a major strategic shift inducing new business models and it unleashes tectonic forces affecting the very traditional business assumptions. It is an outcome of the rapid changes wrought by digital technologies and may be considered as a major facilitator of Digital Transformation. It drastically changes the expectations of customers, partners, and employees and thus, leads to major changes in the conditions under which business is done. Viewed from a strategic lens, it brings about a radical shift in the way in which a business create, delivers and captures value. Management Accountants should understand the strategic implications of the cloud approach and should appropriately modify the costing, valuation and decision making methodologies.