Linking the balanced scorecard to business models for value-based strategic management in e-business

Abstract

Values have been noted as integral elements of an electronic business model (BM) while value creation has been considered as a central strategic task in e-business planning. It has also been suggested that performance measurement and strategic management should focus on the value creation process. In recent years, the balanced scorecard (BSC) has evolved to become a dominant strategic management mechanism and has been widely adopted in business sectors. However, a gap between BM and the BSC still hinders the usefulness and effectiveness of applying the BSC to the e-business domain. This paper aims at providing an integrated framework for linking the BSC to e-business models through identified values and strategies to facilitate strategic management activities. Value dimensions identified include market, supply chain, customer, enterprise, and product and service, and therefore the adapted value-based BSC framework contains market, supply chain, customer, as well as business structure and process as balanced perspectives. © Springer-Verlag Berlin Heidelberg 2005.