Performance Measurement from the Intellectual Capital Perspective. A theoretical approach through a groupware-based intranet application

Table of Contents

1 Introduction

2 Strategic Management in the Information Age

2.1.1 The Industry-Based View of the Firm

2.1.2 The Resource-Based View of the Firm

2.2 A New Type of Organization

2.2.1 Characteristics of the New Organization

2.2.2 New Organizational Forms

2.2.3 New Strategies

2.3 Value Creation in the Information Age

3 Intellectual Capital

3.1 Shortcomings of Traditional Accounting Methods

3.2 Economics of Knowledge-Based Resources

3.3 The Concept of Intellectual Capital

3.3.1 Human Capital

3.3.2 Structural Capital

3.3.3 Customer Capital

4 Performance Measurement with the Balanced Scorecard

4.1 Financial Perspective

4.2 Customer Perspective

4.3 Internal Business Process Perspective

4.4 Learning and Growth Perspective

4.5 The BSC as a Strategic Management System

4.5.1 Cause-and-Effect Relationships

4.5.2 Implementing a Balanced Scorecard

4.5.2.1 Clarifying and Translating Vision and Strategy

4.5.2.2 Communicating and Linking

4.5.2.3 Planning and Target Setting

4.5.2.4 Strategic Feedback and Learning

4.6 A Critical Look at the Balanced Scorecard

5 Enabling the Balanced Scorecard

5.1 Requirements for an Automated Balanced Scorecard

5.1.1 Strategic Requirements

5.1.2 Technical Requirements

5.1.3 A Critical Look at Automated Balanced Scorecard Solutions

5.2 NetFicient

5.2.1 NetFicient Add-Ons

5.2.2 NetFicient Knowledge

5.2.3 eSurvey and NetFicient Project

5.2.4 A Critical Look at NetFicient to Support a Balanced Scorecard

5.3 Conclusion

6 Outlook

Objectives and Topics

The primary objective of this thesis is to demonstrate how the Balanced Scorecard (BSC) can be utilized as a strategic management tool with a specific focus on Intellectual Capital (IC) and its measurement. Additionally, the research analyzes how information technology (IT) and groupware-based applications can support the implementation and continuous operation of a BSC.

• Evolution of strategic management in the information age
• Economic importance and classification of Intellectual Capital
• Methodological framework and perspectives of the Balanced Scorecard
• Integration of non-financial measures in corporate performance systems
• Technical requirements and IT support for automated BSC solutions

Excerpt from the Book

Chapter Summary

1 Introduction: Provides an overview of the transformation from an industrial to an information-based economy and outlines the research focus on Intellectual Capital and Balanced Scorecards.

2 Strategic Management in the Information Age: Explores the evolution of strategy frameworks and the transition toward value innovation and resource-based views in competitive environments.

3 Intellectual Capital: Defines IC components, analyzes the economics of knowledge-based resources, and introduces measurement concepts through a case study on Skandia.

4 Performance Measurement with the Balanced Scorecard: Describes the BSC framework, its four perspectives, and its role as a strategic system for translating vision into operational metrics.

5 Enabling the Balanced Scorecard: Examines technical requirements for automated BSC systems and evaluates the role of the groupware-based application NetFicient in supporting the BSC process.

6 Outlook: Summarizes the challenges of the ‘new economy’ and the long-term potential for integrating IT and management practices to measure organizational performance effectively.

Keywords

Balanced Scorecard, Intellectual Capital, Strategic Management, Knowledge Management, Performance Measurement, Information Age, Human Capital, Structural Capital, Customer Capital, NetFicient, Shareholder Value, IT Infrastructure, Economic Profit.

Frequently Asked Questions

What is the core subject of this thesis?

The work focuses on the intersection of strategic performance measurement and the management of Intellectual Capital (IC) in modern, information-age organizations.

What are the central thematic areas?

The core themes include strategic management evolution, the economic valuation of intangible assets, the structure of the Balanced Scorecard, and the role of groupware IT solutions in enabling management systems.

What is the primary goal of the research?

The aim is to illustrate how the Balanced Scorecard serves as a holistic strategic management system that emphasizes IC and to analyze how IT tools can facilitate its implementation.

Which scientific methods are applied?

The author performs a conceptual analysis of management literature and business frameworks, supplemented by a case study (Skandia) and an evaluation of specialized groupware software (NetFicient).

What is covered in the main section of the paper?

The main part details the theoretical foundations of Intellectual Capital, the four perspectives of the Balanced Scorecard, and the technical requirements for automated scorecard systems.

Which keywords characterize this work?

Key terms include Balanced Scorecard, Intellectual Capital, Knowledge Management, Shareholder Value, and performance indicators.

How does the author define Human Capital?

Human Capital is defined as the knowledge, skills, and experience of employees, which cannot be owned by the organization but only rented, making retention a critical strategic issue.

What role does NetFicient play in the BSC process?

NetFicient acts as a groupware-based enabling infrastructure that facilitates communication, knowledge sharing, and structured data presentation throughout the Preparation, Implementation, and Feedback phases of a BSC project.