Research On The Application Of Beyond Budgeting Management In Knowledge-intensive Enterprises

With the vigorous development of science and technology,a new type of enterprise,knowledge-intensive enterprise,has emerged and has been playing an increasingly important role in the economic development.At the same time,the uncertainty and competitiveness of the market environment of enterprises have been enhanced obviously,which has seriously shaken the basis of the traditional budget management,and has gradually caused the appearance of inherent defects of the traditional budget management.Traditional budget management has been unable to meet the inherent requirement of budget management of knowledge-intensive enterprise.In order to adapt to the new requirements of the new era,management accounting theorists try to overturn traditional budget management method.In January 1998,the Constitution for Advanced Manufacturing International(CAM-I)established a cooperative organization of industry,education and research in Europe,the "BBRT",which proposed the concept of "beyond budgeting" for the first time.It is of great theoretical and practical significance to make up for the shortcomings of the traditional budget management through the full authorization of the subordinates to realize the management goals of the enterprises with no budgeting.In recent years,the emergence of new management tools such as balanced scorecard and benchmarking provides a guarantee for the implementation of beyond budgeting in enterprises.Overseas enterprises such as Toyota Corporation and Swedish banks have improved their environmental adaptability and creativity by adopting beyond budgeting management.Beyond budget was introduced into China at the beginning of twenty-first Century.At present,the domestic research on beyond budget is relatively few,and mainly focused on the theoretical level,the application research of beyond budget is relatively few.Therefore,it is difficult to provide direct guidance for improving the budget management level of Chinese enterprises.At the same time,the domestic research on knowledge-intensive enterprises mainly focused on its concepts,characteristics and classification,while the research on the budget management of knowledge-intensive enterprises is relatively few.Therefore,it is necessary to strengthen the research on budget management of knowledge-intensive enterprises,and improve the level of the budget management of knowledge-intensive enterprises constantly,so as to promote the further development of the social and economy.This paper adopts literature research and case analysis to conduct a case study on the application of beyond budgeting management in knowledge-intensive enterprises.First of all,this paper introduces the research background and significance of this article,reviews the domestic and international literature,and introduces the research methods and ideas of this article.Secondly,this paper expounds the theory of beyond budgeting and knowledge-intensive enterprises,and thinks that beyond budgeting management is compatible with knowledge-intensive enterprises.Therefore,knowledge-intensive enterprises should adopt beyond budgeting management,which lays a theoretical foundation for the design of beyond budgeting management system for knowledge-intensive enterprises.Thirdly,this paper designs a system of beyond budgeting management for knowledge-intensive enterprises from five aspects:establishing a strong enterprise culture,constructing a flexible organizational structure,formulating a strategy-oriented and scientific rolling budget target,evaluating the relative performance indicators of the enterprise as a whole and establishing a perfect information management system.This system enriches the content of beyond budgeting theory,and shows that it is theoretically feasible for knowledge-intensive enterprises implementing the mode of beyond budgeting management.Fourthly,this paper conducts a case study on the application of beyond budgeting management in knowledge intensive enterprises,taking company Z as an example.It shows that the application of beyond budgeting management system in knowledge-intensive enterprises have practical value.This part can be divided into three chapters as follows:The fourth chapter introduces the basic situation of the case company and analyzes the existing problems and causes of current budgeting management process of company Z.This has put forward the list of problems to be solved and the improvement targets for the budgeting management of company Z;The fifth chapter applies the beyond budgeting management system designed above to company Z from five aspects:implementing enterprise culture and rebuilding organizational structure,establishing budget target through the balanced scorecard,optimizing the allocation of resources through activity-based cost management,establishing budget adjustment mechanism through rolling budget and evaluating the performance through the benchmarking method.Therefore,it shows that beyond budgeting management of knowledge-intensive enterprises are maneuverability in practice;The sixth chapter analyzes the application of beyond budgeting management in company Z from financial and non financial aspects,and think that the beyond budgeting management system designed above has achieved good results in company Z.Therefore,it shows that beyond budgeting management of knowledge-intensive enterprises are effective in practice;Finally,the conclusion of this paper is drawn and the prospect is made.Taking company Z as an example,this paper shows that beyond budgeting management can be applied to knowledge-intensive enterprises and achieved good implementation results.Therefore,to a certain extent,this article enriches the contents of the theory of beyond budget and provides some reference value in practice for improving the level of budgetary management of knowledge-intensive enterprises and promoting the process of the application of using beyond budgeting management in knowledge-intensive enterprises.