A hierarchical design of case-based reasoning in the balanced scorecard application

A balanced scorecard (BSC) is a management decision tool intended to be the corporate performance measurement. It also can play an important role in transforming an organization’s mission and strategy into a balanced set of integrated performance measures. Assigning suitable weight to each level of balanced scorecard is crucial to conduct performance evaluation effectively.In this research a case-based reasoning (CBR) system has been developed to assist in assigning the suitable weights. Based on the balanced scorecard design, this study proposed a three-level feature weights design to enhance CBR’s inference performance. For effective case retrieval, a genetic algorithm (GA) mechanism is employed to facilitate weighting all of levels in balanced scorecard and to determine the most appropriate three-level feature weights. The proposed approach is compared with the equal weights approach and the analytical hierarchy process (AHP) approach. The results indicate that the GA-CBR approach is able to produce more effective performance measurement.     

Strategic alignment of ERP implementation stages: An empirical investigation

We applied the notion of strategic alignment to ERP system implementation and used a balanced scorecard approach to analyze business performance. The PLS analysis showed a positive association between realized strategic alignment, shorter and more cost efficient ERP projects, faster reaction times to business events, and the benefits of ERP systems. While each stage of ERP implementation has its inherent intricacies, we concluded that there was a substantial interdependency between the stages of ERP implementation and the success factors in one stage influencing the success of another.     

Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard

An enterprise resource planning system (ERP) is the information backbone of a company that integrates and automates all business operations. It is a critical issue to select the suitable ERP system which meets all the business strategies and the goals of the company. This study presents an approach to select a suitable ERP system for textile industry. Textile companies have some difficulties to implement ERP systems such as variant structure of products, production variety and unqualified human resources. At first, the vision and the strategies of the organization are checked by using balanced scorecard. According to the company’s vision, strategies and KPIs, we can prepare a request for proposal. Then ERP packages that do not meet the requirements of the company are eliminated. After strategic management phase, the proposed methodology gives advice before ERP selection. The criteria were determined and then compared according to their importance. The rest ERP system solutions were selected to evaluate. An external evaluation team consisting of ERP consultants was assigned to select one of these solutions according to the predetermined criteria. In this study, the fuzzy analytic hierarchy process, a fuzzy extension of the multi-criteria decision-making technique AHP, was used to compare these ERP system solutions. The methodology was applied for a textile manufacturing company.     

Investigating the success of ERP systems: Case studies in three Taiwanese high-tech industries

The measurement of enterprise resource planning (ERP) systems success or effectiveness is critical to our understanding of the value and efficacy of ERP investment and managerial actions. Whether traditional information systems success models can be extended to investigating ERP systems success is yet to be investigated. This paper proposes a partial extension and respecification of the DeLone and MacLean model of IS success to ERP systems. The purpose of the present research is to re-examine the updated DeLone and McLean model [W. DeLone, E. McLean, The DeLone McLean model of information system success: a ten-year update, Journal of Management Information Systems 19 (4) (2003) 3–9] of ERP systems success. The updated DeLone and McLean model was applied to collect data from the questionnaires answered by 204 users of ERP systems at three high-tech firms in Taiwan. Finally, this study suggests that system quality, service quality, and information quality are most important successful factors.     

Successful product or successful system? User satisfaction measurement of ERP software

Most software projects are largely undertaken with a focus on developing successful products rather than successful systems. For example, enterprise resource planning (ERP) products are generally developed in isolation from other system components like people, information or existing business processes. This paper applies the human-centred approach in studying the design of SAP-ERP system and measuring its user satisfaction. The objective of the paper is to explore the relationship between the human-centred dimensions (process, syntactic, semantic, social and pragmatic) and the user satisfaction on SAP-ERP system. This paper attempts to answer two questions: what human-centred model can provide a systematic and successful ERP system? And what methodology can be used for validating this model and how can it be applied for evaluating user satisfaction? The contributions of the paper are to address the need for the human-centred approach as a basis for the design of ERP system, to define a systematic human-centred model for measurement towards user satisfaction. This paper suggests the application of a proposed five dimensional model in measuring the human-centredness of SAP-ERP system and embarks a case study to conduct quantitative analysis. In conclusion the paper suggests an urgent and immediate need to develop scientific and engineering methodologies for designing, building, and analysing complex systems that centre on fundamental forms of human activity, supported by computer and communication technology.     

基于BSC的贸易供应链信息系统绩效评价指标体系构建

信息系统的绩效通常具有间接性和滞后性,以往的评价方法侧重于财务角度,缺乏全局性和系统性。为此,建立了一种以平衡计分卡为基础的贸易供应链信息系统绩效综合评价指标体系。     

Measuring e-business performance: Towards a revised balanced scorecard approach

The balanced scorecard (BSC) is a management system that enables executives and managers to map their strategic objectives onto a set of performance measures in four inter-related areas, known as the financial, customer, learning and growth, and the internal process perspectives. Based on research into leading and lagging e-business companies and their measurement practices, this paper introduces an approach to modifying the balanced scorecard, applicable to the management of e-business units in which the customer perspective of the traditional balanced score card is supplemented by the incorporation of four additional perspectives (brand, service, market and technology) that have been found to be critical to the development and execution of e-business strategies. This approach facilitates a clearer understanding of the customer perspective, which consequently benefits the process of selecting the goals and measures associated with the other three perspectives, improving the quality of the overall decision-making and managerial processes as a whole.     

Identifying IT sustainability performance drivers: Instrument development and validation

IT firms vary in their performance to improve the environmental sustainability of their own operations and in their ability to provide products and solutions that enable and transform the environmental sustainability of other industries. In the parlance of the balanced scorecard, performance has two dimensions, that is, “drivers” and “outcomes”. The drivers, also known as leading performance indicators, refer to learning and innovation, processes, and customer value propositions. The outcomes, also known as lagging performance indicators, refer to financial results. This study has developed and validated an instrument to measure the environmentally sustainable IT performance (eSITP) drivers. We established the nomological network of the eSITP by drawing from several theoretical domains in the areas of innovation antecedents and values, balanced performance measurement and IT and eco-sustainability. Based on a survey of 133 IT firms, we developed and validated a four-dimension, 17 items eSITP instrument covering eco-learning, eco-process, eco-brand and eco-value governance. The instrument is validated by following a seven step rigorous process. The paper breaks new ground from both research and practice perspectives. The instrument makes it easier for other researchers who wish to explain the leading (drivers) and lagging (outcomes) of IT firms’ environmental sustainability and for IT business managers who want to improve their environmental sustainability performance.     

Designing a knowledge-based system for strategic planning: A balanced scorecard perspective

First developed by Kaplan and Norton [Kaplan R. S., & Norton D. P. (1992). The balance scorecard – measures that drive performance. Harvard Business Review, 70(1), 71–79], balanced scorecard (BSC) provides an integrated view of overall organizational performance and strategic objectives. BSC integrates financial measures with other key performance indicators to create a perspective that incorporates both financial and non-financial aspects. BSC has proven a powerful tool for strategic planning and communicating strategy that assists in strategy implementation. Successful strategy implementation is based on effective strategic planning. Owing to the strategic planning being a virtual necessity in business, this work proposes an integrated approach for the balanced scorecard tool and knowledge-based system using the analytic hierarchy process (AHP) method, and then develops an intellectual BSC knowledge-based system for strategic planning that sets or selects firm management or operational strategies based on the following perspectives: learning and growth, internal/business process, customer, and financial performance. This system can help determine specific strategy weights. The intellectual BSC knowledge-based system facilities efficient automated strategic planning.     

Multidimensional appraisal of customer relationship management: integrating balanced scorecard and multi criteria decision making approaches

This paper presents a comprehensive integrative framework for measuring the performance of customer relationship management (CRM) system based on a detailed empirical study of 32 Iranian internet service provider (ISP) firms. At first, by an extensive literature review and experts who have real practical experiences in the field of CRM, appropriate key performance indicators (KPIs) based on four perspectives of balanced scorecard have been extracted. Then, due to the interdependency and feedback among these KPIs, multiple criteria decision making techniques are used to evaluate CRM performance. Specifically, this study first applies the decision making trial and evaluation laboratory approach to determine the interrelated relationships among criteria, and to find the crucial central and influential factors. Then, the analytical network process method is used to obtain the criterion weights. Finally, according to these previous results, the technique for order of preference by similarity to ideal solution method is adopted to analyze the CRM performance of 32 Iranian ISP firms. The results of this study illustrated that learning and growth is the most crucial influential perspective and it would influence on the other perspectives much more. Furthermore, indicators including organization capital, human capital, customer retention process, customer perceived value, and customer expansion process play an essential role in succeeding of CRM. The results of this study can provide a comprehensive insight for managers into discerning how and through which mechanisms CRM can create merits for the organizations.     

A comprehensive study of the relationship between enterprise resource planning selection criteria and enterprise resource planning system success

We developed a conceptual framework for investigating how ERP selection criteria are linked to system quality and the service provided by suppliers and consultants, and thus how these influenced ERP implementation success. Through a cross-sectional survey of the top 5000 largest companies in Taiwan, using a balanced scorecard concept and path analysis, we showed that four system selection criteria (consultant's suggestion, a certified high-stability system, compatibility between the system and the business process, and the provision of best practices) were positively related to system quality. Three supplier selection criteria (international market position, training support by the supplier and supplier technical support and experience) had a significant influence on supplier service quality, and two consultant selection criteria (consultant's ERP implementation experience in a similar industry and consultant's support after going live) were related to consultant service quality. However, we found that most organizations did not consider all these criteria when implementing ERP systems. Our study also suggested that enhanced system quality and service quality could increase user perspective and ERP success.     

Implementing enterprise resource planning systems: organizational performance and the duration of the implementation

This paper examines the impact of the duration of ERP implementation on firm performance both during and after implementation. Organizations choose either an accelerated implementation approach or a traditional (longer) implementation approach. The former approach gives the organization the advantage of speed, but the disadvantage of fitting its processes to that of a packaged (thus, undifferentiated from competitors) ERP. The latter approach allows the organization to redesign strategy and processes, and thus, search for ways to be unique from its competition. The study uses a regression model to capture the changes in various performance measures during and after implementation between firms that implemented the ERP, using the performance measure of a matched group of firms that did not implement an ERP as a benchmark/control sample, on the basis of the duration of the implementation. Financial data from Compustat, and data on start date and end date of ERP implementation between 1990 and 2005 for firms in the Oil and Gas industry was collected from an ERP vendor. Results show that measures such as return on sales improved after implementation. However, measures such as inventory turnover, which reflect operational benefits, improve during implementation. We find that accelerated implementation confers both operational and strategic benefits. This study highlights the strategic consequences of the different choices of implementation.     

Aligning Erp Systems with International Strategies

With the globalization of trade and economics, large multinational enterprises are turning to enterprise resource planning (ERP) systems to meet their international information management needs. However, misalignments between the firm's ERP system and its international strategy can often result in unsuccessful ERP implementations and sub-optimal business performance. Building on prior research, this article presents a systematic logic that can be used by business executives to address the alignment challenges. in particular, it provides details on three ERP systems issues that should be addressed: (1) systems configuration, (2) information architecture, and (3) systems rollout to reap the benefits of ERP system alignment.     

An ERP system performance assessment model development based on the balanced scorecard approach

Previously completed research has not been significant when regarding the aspect of deriving a model for measuring the performance of an Enterprise Resource Planning (ERP) system. Therefore, this research attempts to present an objective and quantitative assessment model based on the Balance Scorecard approach for the purpose of appraising the performance of the ERP system. The methodology used in this research involves the Grounded Theory, Expert Questionnaire, the Analytic Hierarchy Process, and the Fuzzy Theory to filter out and develop the KPIs for the ERP system performance assessment model. It is expected that such a model may be used by enterprises to assess the efficiency of the ERP system during the various stages of management and support within the system. Finally, this assessment model is verified in a case company through the examination of its unbiased and quantifiable assessment approach. This result allows us to further understand authentic efficiency, and explore if enterprises have fulfilled their proposed objectives after the introduction of the ERP system.     

Measuring the functional dynamics of product-service system: A system dynamics approach

In the light of the prevailing trend towards product-service systems (PSSs), this paper focuses on the measurement of PSS functional performance. As a ‘dynamic’ system wherein various stakeholders achieve functional performance through long-term relationships in a complex value network, PSS functional performance requires a dynamic approach for measuring its effectiveness, an approach that is missing in the literature. This study aims to fill that void. Firstly, we address the concept of functional dynamics as a distinctive measure of PSS functionality with regard to functional performance and propose a five-phase analytic scheme of functional dynamics. Then, to measure the functional dynamics of PSS using the analytic scheme, a four-step procedure based on the system dynamics is suggested. As a representative method for measuring the long-term dynamics of a complex system, system dynamics is effectively employed to measure PSS’s functional dynamics comprehensively. To illustrate the proposed approach, a case study of a u-healthcare system is presented.     

A framework for performance measurement in the e-business environment

The advent of networked economy calls for new understanding of business, and it is evidenced by the visible trend of traditional businesses either migrating to e-business or expanding to embrace electronic commerce. Constant change in the environment means continually evolving strategies, new products, new processes and new technologies to adopt. E-business metrics are needed to measure performance with the firm’s strategic focus in mind, and they must go beyond the Web metrics that are discussed in the usual electronic commerce context. The basic objective of this paper is to present a framework for developing performance measurement metrics in the e-business environment. The proposed framework, designed by incorporating the balanced scorecard methodology with existing taxonomies of e-business models and the theories behind them, is intended to enable firms to develop new metrics that are needed to implement e-business strategies and tactics.     

Developing strategic measurement and improvement for the biopharmaceutical firm: Using the BSC hierarchy

The balanced scorecard (BSC) provides an enterprise view of an organization’s overall performance. It integrates financial measures with other key performance indicators around customer perspectives, internal business processes, and organizational growth, learning, and innovation. The strategy planning is a virtual necessity for business activities, and this paper presents the use of the analytic hierarchy process (AHP) to prioritize all of the measures and strategies in a BSC framework. This study has found related strategies and objectives from four perspectives of balanced scorecard. This case illustrates selection or design of the most appropriate and helpful measures of the BSC in the pharmaceutical firm in an emerging market.     

The critical success factors for ERP implementation: an organizational fit perspective

Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems. IT managers responsible for managing their organization’s ERP implementation view their ERP systems as their organizations’ most strategic computing platform. However, despite such strategic importance, ERP projects report an unusually high failure rate, sometimes jeopardizing the core operations of the implementing organization. This study explores the root of such high failure rate from an “organizational fit of ERP” perspective. Based on the relevant literature, we define the concept of organizational fit of ERP and examine its impact on ERP implementation, together with ERP implementation contingencies. The results from our field survey of 34 organizations show that ERP implementation success significantly depends on the organizational fit of ERP and certain implementation contingencies.     

Oracle Erp and Network Computing Architecture: Implementation and Performance

Enterprise resource planning (ERP) systems enable firms to attain information technology integration. Such integration results in a uniform information system across the entire organization, thus augmenting performance. in this article, the issues and performance of Oracle ERP are discussed based on perspicacious exploratory analyses conducted in two manufacturing firms located in Ohio and Wisconsin. the factors of influence to implement Oracle ERP systems, various issues involved in the process of implementation, and performance of the systems are discussed in detail. the triangulation technique was used to make sure that the qualitative and quantitative findings were congruent. the results of the quantitative analysis and details of the constructs and items identified to measure the constructs are explained elsewhere by the first author. Oracle ERP systems enabled these firms to perform better by simplifying and streamlining their information retrieval and dissemination processes. Oracle's Web-based network computing architecture (NCA) offers many advantages, such as higher scalability and better coordination with suppliers and customers. These case studies provided a foundation for future research to build theoretical models.     

A semantic fuzzy expert system for a fuzzy balanced scorecard

Balanced scorecard is a widely recognized tool to support decision making in business management. Unfortunately, current balanced scorecard-based systems present two drawbacks: they do not allow to define explicitly the semantics of the underlying knowledge and they are not able to deal with imprecision and vagueness. To overcome these limitations, in this paper we propose a semantic fuzzy expert system which implements a generic framework for the balanced scorecard. In our approach, knowledge about balanced scorecard variables is represented using an OWL ontology, therefore allowing reuse and sharing of the model among different companies. The ontology acts as the basis for the fuzzy expert system, which uses highly interpretable fuzzy IF–THEN rules to infer new knowledge. Results are valuable pieces of information to help managers to improve the achievement of the strategic objectives of the company. A main contribution of this work it that the system is general and can be customized to adapt to different scenarios.