Abstract:
Since work on dynamic aspects of balanced scorecards is just in an early state and a company may gain great insight from simulation results, this paper seeks to develop a dynamic model based on the financial perspective of a balanced scorecard (BSC) in a case study on the basis of a telecommunication company. The value of this paper, at first is related to the application of system dynamics (SD) in a BSC which overcome the limitations of BSC. At second, the paper provides causal loop diagram, dynamic modeling, simulation results, and validation results in the period 2015 to 2020 for the financial aspect to present suitable scenarios such as creation of new infrastructure, increasing the quality of services, diversification of product portfolio, and value-added services. At third, the paper is based on a case study of Tehran Telecommunication Company-Data Network which is a service-based company. Thus, it provides knowledge and information for academician and practitioners of BSC and SD to implement SD based on a BSC in companies, especially service-based firms.
Machine summary:
An Integration of System Dynamics Modelling Approach into the Balanced Scorecard for a Case Study Maryam Ebrahimia, Amir Daneshvar*b a Independent Researcher, Germany b Department of Information Technology Management, Electronic Branch, Islamic Azad University, Tehran, Iran C H R O N I C L E Abstract rk on dynamic aspects of balanced scorecards is just in an early state andArticle historyReceived: 10/11/2020Received in revised:26/01/2021Accepted: 10/02/2021Keywords:Financial Perspective Service-based Firms Strategic Planning Simulationa company may gain great insight from simulation results, this paper seeks to develop a dynamic model based on the financial perspective of a balanced scorecard (BSC) in a case study on the basis of a telecommunication company.
Strictly speaking, the main aim of the study is to develop a dynamic BSC and to demonstrate the use of SD as a method to advocate feedback loops rather than unidirectional causality, delays between cause and effects, provide rigorous validation by quantification of the qualitative insights, propose strategies and present their links to operational processes and performance indicators, define endogenous and exogenous variables in the developed model for the purpose of presenting various scenarios/strategies to improve system’s performance The value of this paper, at first is related to the application of SD in a BSC which overcome the limitations of BSC such as ignoring time dimension and causal loop in a BSC, lack of integration between strategic and operational levels, and wider view to consider competitors and supplier contributions.