The balanced scorecard and its practical applications in oracle balanced scorecard

Abstract

In today's rapidly changing world, strategy management is a vital element of management. In connection with this, there exists a necessity to translate strategy into definite goals and steps. This facilitates communication of corporate strategy to staff at a company, and execution is simpler for an employee of the firm. Furthermore, it is imperative to maintain feedback on information about the state of performance objectives. The methodology of the Balanced Scorecard proves most appropriate for this task. Implementing the Balanced Scorecard, however, cannot be successful without the support of a high-quality business information system as, especially within a larger business, this concept will not function if not working with large amounts of data and information. This paper deals with applying Balanced Scorecard methodology in business information systems, focusing on practical applications in Oracle Balanced Scorecard. Beginning with a brief overview of current knowledge about the Balanced Scorecard, it includes a discourse on the essential logic of this methodology and a presentation of its individual components. Attention is also paid to the role of the Balanced Scorecard in strategic management. Following this, focus switches to the support of the Balanced Scorecard in information systems. In this section of the paper, concentration is placed on Business Intelligence and Corporate Performance Management and their relation to the above-mentioned methodology. In the main body of this study, practical solutions are addressed that support this methodology within the information system of Oracle. This part is divided into two chapters. First, a solution is dealt with from the perspective of Viewers (end users). The major benefits for employees of the company are highlighted, as is the influence on the effectiveness of their work. The other portion is devoted to the duties of designers - people transposing the Balanced Scorecard into an information system. Therefore, it constitutes a way of setting up and customizing the Balanced Scorecard within an information system. Finally, this paper summarizes the main benefits of integrating the Balanced Scorecard and an information system, such as aligning corporate goals with those of employees, improved communication and better feedback.