Benefiting From Scoreboard Software Benefits

Companies measure their current performance vis a vis their organizational goals through pre-identified metrics. To make this easier, companies have now made use of business intelligence tools like digital dashboards, reporting software, data mining software and scoreboard software applications.

In particular, scoreboard software had been used by several companies since the early part of 1990s to monitor data concerning the different aspects of their business operations including sales, marketing and distribution. From the data gathered through this software, managers are able to see and analyze relevant business data and from there, decide what needs to be done in order to meet company objectives. The popularity of the scorecard software can be attributed to the increasing number of companies that practice the balanced scorecard concept introduced by Robert S. Kaplan and David P. Norton in 1992. The balanced scorecard concept is a comprehensive management approach that allows companies to assess how their activities fare in response to the vision of the entire firm. The metrics indicated in a corporate scorecard are categorized into four sections namely, the financial perspective, internal business processes perspective and the learning and growth perspective. For each perspective, it is recommended that five or six metrics are identified. Measures under the financial perspective focuses on the identification, execution and implementation of strategies adapted. These financial metrics are continuously monitored all throughout the three stages of rapid growth, harvest and sustain. Metrics under the customer perspective focuses on the value of the product or service delivered to the market. Meanwhile, the metrics under the internal process perspective takes a look and evaluates all processes and activities undertaken to deliver a product or service. Lastly, the metrics under the learning and growth perspective monitors an organization’s intangible assets like information capital, organization capital and human capital.

Several businesses fail to achieve their objectives because of weak financial or marketing management brought about by lack of relevant data. This is where scoreboard software applications come in. These make it easier for managers to capture all needed information without going through a lot of electronic files. These software applications allow managers to experience the benefits of features such as financial scoreboard matrix, financial performance strategies, ratios and graphs and trend analysis tables. With the matrix, managers are able to see and scrutinize financial statements conveniently. This application likewise allows managers to evaluate the effectiveness of the strategies implemented through relevant metrics. Captured data are also shown through ratios, graphs and trend analysis tables to make analysis easier. The functions of a scoreboard software application closely resemble that of digital dashboards or business intelligence dashboards that are commonly used by managers especially in companies with multiple departments.

The Internet is a rich source of scoreboard software applications that various software manufacturers have developed. These have been used by various companies of different sizes. Software applications that assist managers in designing a Balanced Scorecard for an organization are also widely available. These applications help managers define the relationships between key performance indicators and organizational objectives.