Entrepreneur’s strategy leveraged and monitored by the interrelation of ERP and BSC

Abstract

Nowadays business operates in a turbulent environment, demanding quality products at low cost in short delivery times. Bearing this in mind, entrepreneurs devote special attention to define strategies, monitor entrepreneurial indicators and recruiting qualified employees. In this sense, organizations need to rely on an efficient measurement system with vast and complex information. Considering this need, the Balanced Scorecard (BSC) embraces a short-, medium-and long-term time horizon and guides entrepreneurs in the measurement of their Key Performance Indicators (KPI), as acknowledged by the well-known company like Apple, which is using BSC for planning and performance measurement. Furthermore, as the KPIs need to reflect organisational performance, the interconnection of BSC with SAP Enterprise Resource Planning (ERP) is considered of benefit. By means of this interlinkage, performance is monitored in an integrated way, as the flow of material and information of the whole chain is integrated and interlinked via ERP. Stressing out that several BSC implementations have failed, this research, intends to detail how ERP implementation can leverage the BSC’s features, namely to monitor entrepreneur’s strategy. As several studies have focused their attention in an isolated way and several BSC implementations failed, this research sheds light on entrepreneur’s strategy leveraged and monitored by the interrelation of ERP and BSC.