PurposeIncreased 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/approachThe 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.FindingsThe paper clarifies the possible application areas of business analytics and their advantages within the context of organizational performance management.Originality/valueThe 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.

Business Performance Analytics (BPA) entails the systematic use of data and analytical methods (mathematical, econometric, 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 organization, 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, organizational competences and cultural shifts.

Recent reviews of the 'operations management' (OM) research literature have shown a surprising little shift towards empirical methodologies from traditional modelling 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.

PurposeThe purpose of this paper is to develop and apply a framework that examines the effectiveness and efficiency of managing knowledge in organizations for competitive advantage.Design/methodology/approachReviews knowledge management and strategic cost management literatures to identify key elements that determine and facilitate the enhancement of competitive advantage. 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.FindingsThe CKM framework is usefully 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.Practical implicationsThe CKM framework allows organizations to analyze the activities performed in terms of cost structure and cost drivers, value created, and knowledge utilized, the latter in terms of knowledge specificity and type. The framework can also be used to highlight specific areas of effectiveness improvements in terms of identifying which activities should be leveraged and how knowledge can be better mobilized. In addition, the framework enables an assessment of the non value added but required and waste elements of organizational activities and the specific drivers of costs in these activities, thereby enabling an identification of efficiency improvement opportunities.Originality/valueThis paper integrates strategic cost management and knowledge management perspectives to examine how organizations can usefully analyze and improve the effectiveness and efficiency of managing knowledge for competitive advantage. Thus far, this integration has not occurred in either literatures.

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