By Dr. Marco Meier, Dr. Werner Sinzig, Professor Dr. Dr. h.c. mult. Peter Mertens (auth.)
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Statuses can either be set automatically using threshold values for key figures and aggregation rules, or they are set by individuals. In many cases, the company links the attainment of given statuses for key figures, objectives, strategies, perspectives or entire scorecards with variable, performance-based compensation of employees. All persons and departments involved are connected to each other by a status reporting system, which allows them to exchange comments on the status and assessments.
For this reason, risk portfolios offer graphical visualization that provides valuable assistance in identifying the areas that are most in need ofmanagement's attention. 1 Business Management Instruments Instruments for Strategie Enterprise Management Enterprise and Competition Analysis The analysis of the firm has the objective of determining a capability profile that depicts the relative competitive strength of the firm. 1) is often used for structuring the internal areas for analysis. Porter distinguishes between primary activities, which are directly related to production and the sale of products, and secondary activities, which support the primary activities.
0 Market Share of Company ----'--'-'--'--'--'-'---"-'-~ Market Share of Strongest Competitor Fig. 5: Need for Funds and Release of Funds in Market Share/Market Growth Portfolio (Horv:ith 2002, p. 6 41 Balanced Scorecard The concept of the Balanced Scoreeard (BSe), developed by Robert S. Kaplan and David P. Norton, links the enterprise strategy with operational business processes, forming a framework for the distribution of resourees in a firm. The BSC is often misunderstood as a grouping of key figures in four perspectives, where purely finaneial figures are augmented by non-financial ones.
Enterprise Management with SAP SEM™ / Business Analytics by Dr. Marco Meier, Dr. Werner Sinzig, Professor Dr. Dr. h.c. mult. Peter Mertens (auth.)