Balanced Scorecard and its relationship to UMM
P.G. Punchihewa, G.N. Wikramanayake, D.D. Karunaratna
University of Colombo School of Computing
1. Introduction Measures in the Balanced Scorecard are
used in four broad areas - financial,
In order to facilitate e-commerce customer, internal business processes, and
communication, many standardisation learning and growth of an organisation. The
activities have been initiated in the industry. Balanced Scorecard can also be used to test,
One of the most influential standardisation gain feedback on, and update the
efforts, which enable enterprises to search organisation’s strategy. It goes beyond
for information efficiently and accurately, short-term management of the bottom line to
establish agreements, and carry out business providing a management system for long-
transactions, is ebXML [1]. term investment in customers, employees,
new product development and systems.
UN/CEFACT Modelling Methodology
(UMM) [2] describes a method and 3. UN/CEFACT Modelling Methodology
supporting components, to capture business
knowledge, independent of the underlying UMM is organised into four main views,
implemented technology so that the business namely business operations map (BOM),
acumen is retained and usable over business requirement view (BRV), business
generations of implemented technology. transaction view (BTV) and the business
service view (BSV).
Today organisations are competing in
dynamic, complex environments. An The BOM of a business process model
accurate understanding of their objectives specifies the use case scenarios, input and
and the methods for quickly achieving those output triggers, constraints and system
objectives is vital. The Balanced Scorecard boundaries for business areas, business
[3] is a revolutionary tool that motivates processes, business collaboration protocols,
staff to make the organisation’s vision business transactions and their
happen. The mapping of the performance interrelationships. For example financial,
measurement and management tool production & sales, purchases, marketing,
‘Balanced Scorecard’ using UMM concepts research & development and management
is described here. are examples of general business areas,
while budgeting & variance analysis,
2. Balanced Scorecard creating financial statements, payroll,
authorising payments, management debtors
The Balanced Scorecard does more than just and treasuryship are the process areas of
measure performance. It is a management financial. The BOM partitions business
system that focuses the efforts of people, processes into business areas and business
throughout the organisation, towards categories.
achieving strategic objectives. It gives
feedback on current performance and targets The BRV represents the process areas
future performance. This strategic applicable to each business area, with an
management approach translates a vision increase in the level of detail such as the
into a clear set of objectives or critical inclusion of Category Schema, Category,
success factors. Objective, Scope and Business justification
for each business process area.

BTV captures the semantics of business the Jbuilder development tool, while MS
information entities, inputs, outputs and SQL server was used as the back-end
their flow of exchange between roles as they database.
perform business activities. For every
process areas identified above, the relevant Out of the many measurements identified
business processes are identified. Using above, the measurements that could be
activity diagrams the workflow of each implemented were identified and used in the
business process is explicitly depicted. respective Balanced Scorecard components.
They are Financial: debtor analysis, interest
BSV incorporates the view of a business rate yield curve, portfolio management, ratio
process model, so that it specifies the analysis; Internal Business: variance
network component services and agents and analysis, stock management; Customer:
their message interactions. In the context of market share, product life cycle; Growth:
mapping the processes into the relevant ratio analysis.
components of the Balanced Scorecard, the
BSV is outside the scope of the work 6. Conclusion
presented here.
The Balanced Scorecard in the relation to
4. Mapping of Business Processes UMM would enable an organisation to
assess its strategic objectives by means of
The business processes and objectives usage of software and thus it is left that this
identified are mapped to the pertinent work would be a precursor to future work
Balanced Scorecard component. Table encompassing knowledge of both
below identifies the Balanced Scorecard information technology and management
component for some business processes. fields.
Business Process Balanced 7. Acknowledgements
Scorecard
Component Contributions made by Mr. Anders W. Tell
Budgeting & variance Internal and the Open ebXML laboratory members
analysis Business of University of Stockholm are
Creating financial Financial acknowledged.
statements
Managing debtors Financial 8. References
Treasuryship Financial
Customisation product Customer 1. About ebXML. www.ebXML.org
Stock management Internal 2. UMM chapters.
Business www.ebtwg.org/projets/documentation/
Introduce new product Customer bioreference/pdf/
Existing product Customer 3. What is the Balanced Scorecard?
www.balancedscorecard.org/basics/bsc1.ht
marketing
Pure research Growth
Applied research Growth
Identifying business Growth
opportunities
5. Implementation
The Balanced Scorecard software system
was implemented using Java language and