University of Oulu

Jari Huikku, Timo Hyvönen, Janne Järvinen, (2017) "The role of a predictive analytics project initiator in the integration of financial and operational forecasts", Baltic Journal of Management, Vol. 12 Issue: 4, pp.427-446,

The role of a predictive analytics project initiator in the integration of financial and operational forecasts

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Author: Huikku, Jari1; Hyvönen, Timo2; Järvinen, Janne3
Organizations: 1School of Business, Aalto University, Helsinki, Finland
2Faculty of Management, University of Tampere, Tampere, Finland
3Oulu Business School, University of Oulu, Oulu, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.5 MB)
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Language: English
Published: Emerald, 2017
Publish Date: 2017-09-28


Purpose: The purpose of this paper is to investigate the initiation of accounting information system projects. Specifically, it examines the role of the predictive analytics (PA) project initiator in the integration of financial and operational sales forecasts.

Design/methodology/approach: The study uses a field study method to address the studied phenomenon in eight Finnish companies that have recently adopted PA systems. The data are primarily based on 19 interviews in the companies and five interviews with the PA consultants.

Findings: The authors found that initiators appear to play a major role regarding the degree of integration of financial and operational sales forecasts. The initiators from an accounting function have a tendency to pay more attention to the integration than the representatives from other functions, such as operations and sales.

Practical implications: The study also makes a practical contribution to companies in showing and discussing the important role of the accounting department as an initiator of a project if the target is to achieve a tight coupling of financial and operational forecast figures, i.e., “one set of numbers”.

Originality/value: Even though companies have increasingly adopted PA systems in recent years, we still know little about how the initiation affects the design of accounting information systems overall. The central contribution of the paper, therefore, is to show that if a PA project is initiated by the accounting department, data integration becomes more likely. It contributes also to the discussion related to the appropriateness of data integration in the context of forecasting.

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Series: Baltic journal of management
ISSN: 1746-5265
ISSN-E: 1746-5273
ISSN-L: 1746-5265
Volume: 12
Issue: 4
Pages: 427 - 446
DOI: 10.1108/BJM-05-2017-0164
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
Funding: The financial support granted to the authors by the Jenny and Antti Wihuri Foundation is acknowledged with gratitude.
Copyright information: © Emerald Publishing Limited 2017