Application of the ERP Balanced Scorecard

Enterprise Resource Planning or ERP is a system or software capable of managing and handling all business information and functions from shared data storage. Typically, this is a commercial software package that supports the flawless integration of information generated by a company. Many experts believe that the ERP system is so sophisticated yet very complex compared to the other softer systems. This provides solutions essential to various processes in the company, including production planning and management of the control and storage departments. Due to the popularity of ERP, the providers of this type of software packages have seen a big jump in sales in recent years.

On the other hand, the Balanced Scorecard is considered to be one of the most useful tools when it comes to the decision-making process. A businessman needs to know the precise condition or status of his business in order to make the right and unbiased decisions. The BSC does that for him. He gets the opportunity to look at the health of his company from different perspectives, such as: B. the customers, the financial aspect, the learning and growth of the employees and the internal processes. All of these things are essential and enable a company to thrive in the volatile business world.

When you combine them, you get the ERP Balanced Scorecard. This is a powerful tool that not only helps you measure performance but also helps you align your goals with the strategies. Managers have already recognized the effectiveness of the ERP Balanced Scorecard, as it allows them to assess information technology from their perspective. There are three things to consider with this type of BSC. They are the goals, measures and benchmarks.

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Your goal is, for example, to manage risks. In actions you can name the results of internal audits and the execution of the security plans. You can also add Disaster Recovery assessment delivery here. For the benchmarks you can simply assign the defined business practices. The ERP Balanced Scorecard is a modified version of the BSC. This is often used to evaluate the implementation of the ERP software and to assess the continued operation of the ERP installation.

As already mentioned, the launched scorecard examines the four perspectives in the company. When the ERP is applied to the scorecard, there is an additional perspective here. It is the project view that encompasses the requirements of each project in the organization and the identification of the crucial path and milestones. The fifth perspective represents the tasks that arise in project management. While most ERP adopters only focus on the financial and internal process aspects, the ERP Balanced Scorecard helps them focus on the customers and the development of the company. The improvement and growth of the company is very important as it allows the generation of alternative values ​​intended for conceivable paths of progress to support the implementation of flexible systems.