News Letter

Ahmed Ali Mohammad

SBE, Vol.20, No.1, 2017

ISSN 1818-1228

Qatar University

4.2

Re-designing revenue power on

technology bases

It is generally admitted that the emergence of

knowledge business model has transformed the

old realities of accounting. Knowledge

management are technology intensive, inter-

organizational, visionary, value added, and

customer-based. The high obsolescence of

knowledge had made it increasingly difficult

for any company to survive. As technology

transforms the economics of doing business, a

knowledge business model is driven by

disintermediation and connectivity. The

transaction values have been replaced by

interaction values (Amidon, 2003). Thus,

business revenue power has become a function

of interactivity and connectivity (Barnes and

Hunt, 2000). As for interactivity, intensive use

of information technology has established real-

time and more interactive relationship between

companies and customers. This creative

interactive is enhancing customer satisfaction

and creating new paradigms of product design

and customer service (See Figure-3). The fast

pacing of technology and high obsolescence of

knowledge had created another paradox for the

accounting model. The going concern

assumption of accounting has come under a

stream of discussion (Keen and Balance, 1997;

Prusak, 1997; Barnes and Hunt, 2000; Janszen,

2000). In recognition of such reality, the

dynamic nature of information technology has

transformed both the economics and ways of

doing business. Growing around this issue, the

accelerated changes have resulted in the

globalization of markets and emergence of new

organizational forms. As a result, the

organizational boundaries have been shifted

and the organizational revenue power has been

transformed (McKeown and Philip, 2003).

However, the dramatic shifts happened in the

drivers of business revenues towards greater

flexibility and responsiveness (See Figure-3).

The growing popularity of e-commerce and

e-business technologies has transformed the

drivers of knowledge business model especially

in terms of disintermediation and connectivity.

Further, reengineering business infrastructure

has largely increased traceability in

consequence of interactivity and connectivity

applications (Barnes and Hunt, 2000).

However, application of lean/JIT technologies

has significantly led to high level of

standardization, formalization, and integration

within and outside business organizations

(Rondeau

et al

., 2000). Thus, improve customer

architecture has successfully incorporated

customer’s community into the companies

through sophisticated real-time and more

interactive applications. This creative paradigm

has

enhanced

customer

partnerships,

engagement, satisfaction, and loyalty especially

in product design and customer service

(Despres and Chauvel, 2000). The new

transactions based relationships have been

very energizing to increase business

opportunities and revenues (Cohan, 2000). The

success of integration process reduced lead

time and increased relationships of supply

chains practices. The ubiquity of the internet

technology and new forms of businesses has

fostered the creation of shared global market

space (Evans, 2003). These integration based

practices have improved the operational

efficiency and facilitated markets integration

which in result enabled the horizontal growth

(Hakansson

et al

., 2010). In attempting to

investigate the impacts of these technologies

on accounting model, the extant literatures

indicate that these challenges are not easy

questions to be answered. The business trend

detailed above is figuring out a key fact that a

real shift happened in the mechanism of

revenue power in terms of style and nature of

transactions. Together all these technology

innovations have shifted the drivers of revenue

power from the financial assets to knowledge