Balanced Scorecard and its relationship to UMM

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P G Punchihewa, G N Wikramanayake, D D Karunaratna (2003) Balanced Scorecard and its relationship to UMM IS Engineer, The Bulletin of the British Computer Society Sri Lanka Section 7-8 Oct

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Balanced Scorecard and its relationship to UMM

  1. 1. 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.
  2. 2. 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

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