With BI and the Balanced Scorecard to integrated corporate management

For a holistic view of the company, the Balanced Scorecard can play an important role and effectively support decisions. Business Intelligence solutions enable the efficient use of the Balanced Scorecard by minimising manual effort.

What is the Balanced Scorecard?

The Balanced Scorecard is an instrument for developing, concretising and measuring the success of corporate strategies. As it takes different perspectives into account, it promotes a balanced view of the company. It is particularly effective in supporting decision-makers in the context of corporate performance management, as it takes into account interdepartmental cause-effect relationships.

The concept of the Balanced Scorecard was developed in the 1990s by the team around Robert S. Kaplan and David P. Norton. The motivation for this was the fact that in many companies the implementation of strategies failed because the employees were not sufficiently aware of them. Also, the classical performance measurement with the help of financial ratios should be supplemented by non-financial factors in order to enable a balanced assessment of the company’s performance. The Balanced Scorecard also takes the company’s environment into account. The instrument contributes significantly to the achievement of goals, as strategies can be operationalised in this way in a promising way.

Holistic view of the company

The Balanced Scorecard looks at the company from four different perspectives: the financial perspective, the customer perspective, the internal process perspective and the learning and development perspective. The financial perspective is based on the expectations of the capital providers. Since the main goal of any company is long-term financial success, the financial perspective stands above all other perspectives. The customer perspective analyses the relationship between the company and its customers, focusing for example on their needs and perceptions. The process perspective deals with identifying and influencing cross-divisional processes. It is necessary to focus on the most important processes. The learning and development perspective is also often called the potential perspective. It analyses whether the potentials available in the company create the conditions for achieving all other strategic goals in the long term. These can include, for example, adaptability, innovative strength or employee resources.

Operationalisation of strategic goals

The four perspectives can be individually supplemented by others. For each perspective, goals, appropriate indicators, targets and measures are defined. On this basis, regular measurement and control of performance is possible. It should be noted that the four perspectives must not be considered separately from each other, as they influence each other. The fact that a balanced scorecard can function as an early warning system is also due to the use of non-financial indicators. This is because the effects of certain developments on finances only become clear with a time lag. If only financial indicators are used, many problems and undesirable developments cannot be recognised in time.

- bdg insights

Balanced Scorecard and Business Intelligence

Before Business Intelligence solutions were available for the Balanced Scorecard, collecting and preparing the information required a lot of effort and caused corresponding costs, with a higher probability of error. Business Intelligence automates the calculation of meaningful Key Performance Indicators. The basis for success is a uniform, consistent and up-to-date database. The Balanced Scorecard can be used in conjunction with many other functions, such as dashboards, forecasting tools or data mining.

Would you like to manage your company in the direction of Corporate Performance Management? Then get in touch with us. We will support you with suitable CPM and BI solutions. We would be happy to arrange an appointment or send you further information.

- bdg insights
Coming Events
No event found!

Share:

LinkedIn
Twitter
Email

RELATED POSTS

Better Insights ALLOCATION AND REPLENISHMENT

Reach the optimum in Allocation and Replenishment

Allocation & Replenishment is complex – and getting it right just isn’t easy! Sending the wrong stock to stores, or more commonly sending the wrong quantities to stores, is super common in retail. But it doesn’t have to be! Read on and learn how a systemic solution for allocation and replenishment can support you in this increasingly complex task.

Butget Cycle

The Four Phases of a Budget Cycle – Made Easy with the Right BI Tool

Have you ever thought about why the regular financial budget season spans over three months? It‘s because Controlling and FP&A departments have to walk a tightrope between accuracy and timely completion as they often rely on a variety of spreadsheets. What falls short is the flexibility to react to today’s world with its rapid market dynamics. Read on to learn how the right BI tool can help!

Image Free Your Assortment Planning from the Wedge

Free Your Assortment Planning from the Wedge

If it’s not just potatoes, shoes or open doors you think of when you hear the word “wedge”, then read on! If you’re in merchandising, you’ll want to learn how to replace the Wedge with an Assortment Planning tool that will maximise sales, profit, customer retention and market share.

better decisions Swiss GmbH

HOPP BDG SCHWIIZ!

We are celebrating another milestone in the history of bdg: with better decisions Swiss GmbH, bdg is now officially represented in Switzerland. We are thrilled

BUCHEN SIE
EINE DEMO

In einer Live-Demo zeigen wir Ihnen eine hochwertige Lösung auf Basis von bdg ONE. Gern besprechen wir vorab Ihre konkreten Anforderungen.

In der Live-Demo:

  • Einblick in die Architektur einer Bi- & EPM-Lösung
 
  • Wie bdg eine BI-/EPM-Lösung individualisiert
 
  • Features, die bdg speziell für Ihre Branche entwickelt hat
 
  • Wie ein typisches Projekt mit bdg abläuft
 

Wählen Sie einfach einen Termin; Sie erhalten Zugang zu einem digitalen Meeting-Raum – ein bdg-Mitarbeiter wird Sie dort begrüßen.