Information and Knowledge Management using ArcGIS ModelBuilder

The Balanced Scorecard and its Practical Applications in
Oracle Balanced Scorecard
Michal Pivnička
Tomas Bata University in Zlin, Czech Republic
pivnicka@fame.utb.cz
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.
Keywords: balanced scorecard, information system, corporate performance management
1. Introduction
For successful management and to achieve the objectives for which the same was established, it is
essential that a company possesses a clear shared vision and strategy, and is consistently assiduous
as regards implementing it. A high level of performance with a strategy can be greatly facilitated if a
suitable tool is used for translating said strategy into operational terms. The Balanced Scorecard
(BSC) seems like the most suitable tool for this purpose. Due to the fact that the BSC works with high
volumes of data (information) that must be current and used by everyone in an organization, it is
appropriate if the BSC is supported by a superior information system allowing the BSC to manage
operations. Since the author is well aware of the growing importance of promoting strategic
management with information systems, he has begun to devote itself to this issue. The aim of this
article is to provide basic information about the Balanced Scorecard and how this tool is supported in
the Oracle Balanced Scorecard application. Output will be further applied in teaching at the Tomas
Bata University in Zlin, in the Czech Republic.
The thesis begins by briefly introducing strategic management and the Balanced Scorecard – its logic
and role in strategic management. Afterwards, the Oracle Balanced Scorecard application is
described for Viewers (who use Oracle BSC in their daily jobs), Designers (who design the Balanced
Scorecard) and Administrators (who ensure that the application operates without problems).
2. Strategic management and the balanced scorecard
Any company that wants to exist for considerable period must apply the process of creating a
strategy. This usually starts with devising the business’ mission and clarifying values that the
company both recognizes and intends to follow. The following is a formulation of the vision and
strategy of a company at this point in time. It is necessary to conduct various analyses, on the internal
and external environments of a company, before such a strategy may be compiled. In the external
environment, the market position in relation to other players in the same marketplace is taken into
account. As for the internal environment, endeavor is placed on finding core competencies. According
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