Kế toán doanh nghiệp - Chapter 13: The balanced scorecard and business value of information technology

Chapter 13The Balanced Scorecard and Business Value of Information TechnologyCopyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Learning Objectives13-2LO#1 Describe the balanced scorecard frameworkLO#2 Explain the purpose of strategy mapsLO#3 Describe different types of IT and why IT initiatives can be difficult to evaluate LO#4 Define the balanced scorecard management processLO#5 Describe how an AIS system contributes to a balanced scorecard management processThe Balanced ScorecardA strategic planning and management system Used extensively in business and industry, government, and nonprofit organizations worldwide Aligns business activities to the vision and strategy of the organization, Improves internal and external communicationsMonitors organization performance against strategic goals13-3LO# 1Four Perspectives13-4LO# 1Learning & Growth PerspectiveDescribes the firm’s objectives for improvements in tangible and intangible infrastructureHuman Capital – investment in peopleEnsuring the right people with the right skills are availableInformation Capital – investment in informationEnsuring required access to information and the ability to communicateOrganization Capital – investment in creating a unique corporate identity and cultureEnsuring that employees know and are aligned with the organization’s strategic objectives13-5LO# 1Process PerspectiveOperations management processes, such as supply, production, distribution, and risk management.Customer management processes, such as those involved with the selection, acquisition, and retention of customers, and growth of the firm’s market.Innovation processes, such as identifying opportunities, research and development, product design and development, and product launch.Regulatory and social processes, such as financial reporting, accounting, and those that manage environmental, safety and health, employment, and community issues.13-6LO# 1Customer PerspectiveThe value proposition differentiates from the competitionProduct attributes PriceQualityAvailabilityFunctionService attributesBrand imageCreates customer satisfaction, retention, and new customer acquisition13-7LO# 1Financial PerspectiveConfirms the success of the firm’s investments and its ability to deliver value to customersOverall objective is shareholder value (for-profit companies)Other objectives usually related to:Long-term growthProductivity13-8LO# 1Why a Balanced Scorecard13-9Leading IndicatorsLagging IndicatorsInternal PerspectivesExternal PerspectivesLO# 1Strategy MapsA one-page representation of the firm’s strategic prioritiesShows the cause-and-effect linkages among strategic prioritiesAllows organizations to assess and prioritize gaps between current and desired performance levels13-10LO# 213-11LO# 2Roles of AIS/IT in Balanced Scorecard FrameworkBalanced scorecard recognizes the difference betweenInvestments in tangible information technology, andThe capabilities created by that technology Information Capital in the Learning & Growth Perspective is an intangible asset that reflects the readiness of the organization’s technology to support business processesInformation Capital includes:Computing hardware, such as individual computersInfrastructure, such as communications networksApplications, such as accounting and decision support softwareEmployees’ abilities to use the technology effectively13-12LO# 3Nature of Information Technology InvestmentsFunction ITPerforms a single function, such as enhancing worker productivity for standalone tasksNetwork ITAllows people to communicate with one anotherEnterprise ITRestructures interactions within the organization as well as with external partnersExamples?13-13LO# 3Summary of 3 IT Investment CategoriesIT CategoryDescriptionCharacteristics   Function ITAssists execution with discrete tasksDoes not require complements but impact can increase with the users skillNetwork ITFacilitates interactionsDoes not require complements but impact increases with users’ skill and extent of teamworkEnterprise ITSpecifies the nature of business processes and requires interactions Requires complements and impact often depends on users’ skills, teamwork, changes to the way work is performed, and changes in the way decisions are made13-14LO# 3The Balanced Scorecard Management ProcessThe steps necessary to plan, implement, and monitor performance:Formulate. The company examines its competitive environment and identifies ways in which it can best compete consistent with its mission, vision, and values. Translate. The company establishes specific objectives, measures, targets and initiatives, and develops capital, initiative, and other long-term budgets to guide resource allocation and action according to its strategy. Link to operations. The company prepares operating budgets, prioritizes business process improvements, and key performance indicators. At this point it establishes necessary IT systems to support strategic business processes as well as management reporting and review capabilities. Monitor. The company monitors performance to ensure processes are meeting objectives and provides feedback to operating managers to continuous improvement.Adapt. The company evaluates the effectiveness of its strategy, conducts profitability analytics, tests the cause-and-effect assumptions of the strategy, and identifies potential alternatives.13-15LO# 513-16LO# 4Role of AIS/IT in Balanced Scorecard Management ProcessIT has an important role in implementing and managing the balanced scorecard management process Provides information to support strategy formulationProvides processing to develop and distribute budgets for strategy executionCollects data and converts to information to assess performance against strategic objectives and allow ongoing management 13-17LO# 5