Creating Value Through Business Model Innovation Managerial Accountin

Question: Discuss about the Creating Value Through Business Model Innovation for Managerial Accounting? Answer: Introduction Delta Air Lines. is a major Airline company in the US which operates over 5400 flights on a daily basis serving both on international and domestic network (Mallikarjun 2015). The performance measure of the company as per the balanced scorecard categories can be recommended by the following areas: Financial Perspective Reduction of administration expenses The company should be focusing more on its sales and marketing budgets, which have a significant impact on its administrative costs. Spending more on the promotions could be a wasted expense and thus, it needs to be monitored by implementing a proper strategy to reduce down on the inappropriate expenses in the end. Sales growth The company has been investing huge amounts on the marketing and promotions of its products and services in the market (Hoffmann Ringo 2012). This is causing an excessive wastage of the money in the long run. Thus, the company needs to implement a monitoring strategy such that the marketing of the products and services can be made at a reasonable expense. Customer Perspective Customer satisfaction In order to keep the customers satisfied, the company needs to improve on its customer services. At present, most of the passengers are facing problems reletd to long waiting hours, delay in flight timings, improper placement of passenger baggages and many others. Thus, the company needs to give priority to the customers issues and should also enhance the skills and knowledge of each employee such that they could be able to solve the issues of the customers and keep them satisfied as well. Customer retention The loyalty of the customers is influenced by the brand value and standard customer services of a company. Thus, the airline company needs to shift its corporate strategy to a more pro active service strategy in order to influence the perceptions of the customers in respective of their customer satisfaction power. Internal Processes Lead-time The lead-time in respective of airline reservation is the number of days between the reservation of tickets and the actual date of travel for the passengers. The more the lead time between the travel time and booking implies that the company needs to focus more on its travel management (Mallikarjun 2015). Outsourcing Business Processing and Information Technology The company should be looking forward to the outsourcing of its business processing, information technology and customer service responsibility to the third parties (Amit Zott 2012). This would help the company to reduce down on its administration cost and thereby improve the efficiencies as well. Innovation Employee satisfaction This aspect would help the company to enhance its productivity and profitability in the long run. By providing propep training and implicating proper reward system for the employees, the company could enhance the job satistfaction of its employees (Min Min 2015). Automating more online functions The automation of the platforms and technical experts online could help the company to minimize on the administration costs by reducing down on the labor-driven expenses. This would also enable the customers of the company to except a certain level of self-service. Importance of Balance scorecard From the above illustration, it can be found that the balance scorecard of an organization helps in: Carrying or updating the business strategy. Linking the strategic objectives with the long-term targets. Facilitating the organizational change. References Amit, R., Zott, C. (2012). Creating Value Through Business Model Innovation.MIT Sloan Management Review,53(3), 41. Hoffmann, C., Lesser, E.L. Ringo, T., 2012.Calculating success: How the new workplace analytics will revitalize your organization. Harvard Business Press. Mallikarjun, S. (2015). Efficiency of US airlines: A strategic operating model.Journal of Air Transport Management,43, 46-56. Min, H., Min, H. (2015). Benchmarking the service quality of airlines in the United States: an exploratory analysis.Benchmarking: An International Journal,22(5), 734-751.