Digital Balanced Scorecard System as a Supporting Strategy for Digital Transformation

Abstract

Reports of the high percentage of failed digital transformation ventures motivate the need to find a comprehensive framework with regulatory attributes to support these initiatives. Due to its structure, consistent strategy decomposition capabilities, and strategic map architecture, the assumption is that a customized version of the Balanced Scorecard can ensure the better overall success of digital transformation projects. The qualitative analysis methodology was applied to previous research, and this study identified critical issues and challenges related to the strategy and overall endeavor of digital transformation. Based on the methodology of the traditional Balanced Scorecard, a draft version of the Digital Balanced Scorecard was formulated. The Digital Balanced Scorecard is a comprehensive, primarily prescriptive model that is focused directly on the challenges, opportunities, and obstacles of transformation. The proposed BSC model can consistently interpret a digital strategy and assist organization leaders in successfully formulating and coordinating all necessary activities and projects to apply technologies. The Digital BSC provides the projection of financial results and improvements in sustainability after transformation. The proposed solution to support digital transformation can accelerate an organization’s development, improve efficiency, and strengthen efforts to achieve an organization’s sustainability goals.