Framework for performance measurement and management in a collaborative business environment

Abstract

Purpose-The purpose of this paper is to provide practical justification for performance measurement and management within a collaborative business network. The basic performance measurement indicators are elaborated within the scope of this research. Design/methodology/approach-Performance measurement techniques are highlighted through the application of an ICT-based solution approach, with special focus on business collaboration among small and medium sized enterprises (SMEs). Findings-From the basic need to measure the performance of individual partners within a business network, this research proposes a generic framework and process flow with the objective of evaluating the individual partners in terms of various performance indicators such as key success factors (KSF), key performance factors (KPF) and key performance indicators (KPI). The outcomes from this framework or process flow will help partners in the network to build valuable trust, cooperation and coordination. Originality/value-The focus of this paper is to demonstrate the methodological approach of measuring the performance through identifying and prioritizing the performance indicators (KSF, KPF, KPI) among collaborative partners and to highlight their importance for successful business operations.

Business model metrics: an open repository

“…Busi and Bititci (2006) suggest focusing on extended process measures, proactive measures and collaboration measures. Also, Ferreira et al (2012) suggest collaborative performance measures and Heikkilä et al (2014) illustrate in a case study how a BMbased set of performance metrics are defined and incorporated into the design of networked BMs.…”

“…Furthermore, in our definition we implicitly assume that a company isn't able to deliver the necessary resources and capabilities all by themselves, but that it relies on resources and capabilities at an arm's length as proposed by the Resource Dependency theory (Salancik and Pfeffer 2003;Wirtz 2011;Zott and Amit 2010). BM research that goes beyond the single firm and focuses on network enterprises points to the importance of process alignment and (Bouwman 2003;Dubosson-Torbay et al 2002;Ferreira et al 2012;Heikkilä et al 2014;Johnson et al 2008;Rayport and Jaworski 2001) Value uniqueness Quality Service S1. Service Development life cycles: development time of new service (concepts); time to first proposal; # of customer-requested features added per upgrade S2.…”

“…For instance, CANVAS is a brainstorming tool , and in BM stress testing people use it to select and prioritize uncertainties to trace problematic BM components based on their personal interpretation . By contrast, in CSOFT BM design, key performance indicators are defined for each customer segment and for resource type (business process, application, information, (Kaplan and Norton 1992, 1993Ferreira et al 2012;Heikkilä et al 2014) (Edvinsson and Malone 1997;Heikkilä et al 2014;Johnson et al 2008;Neely et al 2002;Tseng et al 2009)…”

“…Number of external partners: # of Tier-1 (core network partners), Tier-2 (replaceable provider and product/service) and Tier-3 (partners included based on market availability) network partners; % cross unit/organizational collaboration O4. Characteristics of (internal) Network: size; inclusiveness; connectivity; density; centralization; symmetry; brand; owned versus outsourced manufacturing (Bouwman 2003;Dubosson-Torbay et al 2002;Eckerson 2009;Edvinsson and Malone 1997;Heikkilä et al 2014;Johnson et al 2008;Ferreira et al 2012;Graser et al 2005;Smith 2006 Dubosson-Torbay et al 2002;Eckerson 2009;Edvinsson and Malone 1997;Heikkilä et al 2014;Johnson et al 2008;Kaplan and Norton 1992, 1993Smith 2006;Tseng et al 2009;Venkatraman and Ramanujam 1986) (Ferreira et al 2012;Heikkilä et al 2014;Venkatraman and Ramanujam 1986) Value exchange in organization network…”

“…Even though some BM methods pay attention to financial and investment metrics, non-financial aspects such as technology are seldom measured (Afuah and Tucci 2003;Daas et al 2013;Gordijn and Akkermans 2001). There is a clear need for research combining evaluation metrics with BM, especially within networked environments (Busi and Bititci 2006;Ferreira et al 2012;Voelpel et al 2006).…”