Digital Balanced Scorecard System as a Supporting Strategy for Digital Transformation

Abstract

Reports of the high percentage of failed digital transformation ventures motivate the need to find a comprehensive framework with regulatory attributes to support these initiatives. Due to its structure, consistent strategy decomposition capabilities, and strategic map architecture, the assumption is that a customized version of the Balanced Scorecard can ensure the better overall success of digital transformation projects. The qualitative analysis methodology was applied to previous research, and this study identified critical issues and challenges related to the strategy and overall endeavor of digital transformation. Based on the methodology of the traditional Balanced Scorecard, a draft version of the Digital Balanced Scorecard was formulated. The Digital Balanced Scorecard is a comprehensive, primarily prescriptive model that is focused directly on the challenges, opportunities, and obstacles of transformation. The proposed BSC model can consistently interpret a digital strategy and assist organization leaders in successfully formulating and coordinating all necessary activities and projects to apply technologies. The Digital BSC provides the projection of financial results and improvements in sustainability after transformation. The proposed solution to support digital transformation can accelerate an organization’s development, improve efficiency, and strengthen efforts to achieve an organization’s sustainability goals.

An Empirical Framework for Assessing the Balanced Scorecard Impact on Sustainable Development in Healthcare Performance Measurement

“…The BSC translates the vision and strategy of an organization into performance indicators from a strategic measurement and management system. BSC represents a valuable tool that facilitates the strategies’ implementation and the development of strategic objectives [ 27 ]. The BSC creates an equilibrium between traditional financial and non-financial indicators: customers, the organization’s internal processes, and learning and organizational development processes.…”

“…As a result of strategic performance evaluation capabilities, BSC has a crucial role in strategy analysis and implementation and in assessing organizational goals [ 27 , 34 , 35 , 36 , 37 , 38 , 39 ]. In the last two decades, various researchers addressed the implementation of BSC by leading companies in various sectors [ 38 ], including the public sector [ 35 , 40 , 41 ] or the healthcare sector [ 14 , 16 , 19 ].…”

“…DT consists of implementing new digital technologies in a business model, improving organizational processes, redesigning the value creation chain, and better satisfying customer needs [ 27 , 66 , 67 ]. Formulating a strategy in the DT field is not enough to successfully implement digital transformations because the implementation of digital technologies and their strategic integration is a broader concept [ 27 , 68 ].…”

“…DT consists of implementing new digital technologies in a business model, improving organizational processes, redesigning the value creation chain, and better satisfying customer needs [ 27 , 66 , 67 ]. Formulating a strategy in the DT field is not enough to successfully implement digital transformations because the implementation of digital technologies and their strategic integration is a broader concept [ 27 , 68 ]. However, since DT is an organizational transformation much more than digital technologies, the success of DT depends on the integration into organizational processes and the acceptance of these technologies by employees.…”

“…Consequently, implementing a strategy in the field of DT would be supported by using BSC. DT positively influences BSC dimensions, particularly FD [ 27 , 68 , 70 ]. The BSC implementation can be made much easier with the help of digital technologies integrated into the organization’s strategy and the performance evaluation system [ 23 ].…”