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Journal of Accounting & Taxation

June 2016 Vol 1(1), pp. 001-024

Copyright 2016 Unified Journals

Original Research Article

Can Predictive Business Analytics Improve Performance Measurement? (Analysing Business Performance Measurement Systems)

Emmanuel Opoku Ware, PhD1* and Michael Adu Nti2

1Graduate School of Business, Kings University College of Ghana, Accra

2Sunyani Polytechnic, School of Business, Ghana

Corresponding Author's Email: emmanuelopokuware@ymail.com

Accepted 8 February, 2016


Abstract


Business Performance Measurement (BPM) systems have grown in use and popularity over the past twenty years. Firms adopt BPM systems for a variety of reasons, but chiefly to improve control over the firm in ways that traditional accounting systems have not allowed. Several approaches, or frameworks, for building and managing BPM systems have evolved with the balanced scorecard as the dominant framework in use today. Despite the growing use of BPM systems in organizations of all kinds, significant problems cause firms to experience difficulty in implementing BPM systems. The problems range across a variety of topics: excessive diversity in the field of study, data quality and information system integration problems, lack of linkage to strategy, fundamental differences in how a strategy is formulated and executed in the firm, ill-defined metrics identification processes, high levels of change in BPM systems, analytical skills challenges, knowledge as a social and non-deterministic phenomenon, judgment and decision biases (from prospect theory literature) and organizational defenses that can undermine successful BPM systems use. To help address these problems, a set of critical success factors for BPM projects, derived from the literature, are identified. A minimal set of four criteria for designing successful BPM systems along with 12 BPM system factors to be considered when building BPM systems are discussed. Forty (40) software vendors with BPM related solutions are listed and the role of data visualization and metaphor is discussed as a potential means for addressing cognitive problems with BPM systems. Given the continual information processing and computing power improvements, coupled with the advances in business strategy theory, analysis of decision-making, organizational learning and BPM systems overall, BPM systems are at a crossroads of difficult problems and interesting opportunities.

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Cite This Article

Emmanuel Opoku Ware, PhD and Michael Adu Nti.Can Predictive Business Analytics Improve Performance Measurement?(Analysing Business Performance Measurement Systems) 1(1) 2016 pp. 001-024.




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