Academic journal article European Research Studies

Business Performance Management Models Based on the Digital Corporation's Paradigm

Academic journal article European Research Studies

Business Performance Management Models Based on the Digital Corporation's Paradigm

Article excerpt

1. Introduction

Global digital transformation (DX) currently affects all the aspects of human life, rapidly changing a private life, business, markets, state and social institutions. As reflected in the published results of the study "Digital Universe" (Research and analysis of IDC, commissioned by EMC "Digital Universe study", 2014), conducted by EMC and IDC, by 2020 there is likely to be a 10-fold growth of the "digital universe" compared to the level of 2013. According to the report of Deloitte (Deloitte's seventh annual report Tech trend 2016), some technological trends in 2016 might change the business rules in various areas in the nearest future-- within 18-24 months. While researchers identify capabilities of the so-called "third platform" (cloud, mobility, social business, advanced analytics and large data), major corporations face serious challenges--how should their target business architecture and associated processes and technologies change in order to become competitive market participants in a new digital reality (Westerman, Bonnet and McAfee 2014a; Olanrewaju, Smaje and Willmott 2014; Digital transformation in the Age of the Customer, 2015; Westerman, Bonnet and McAfee 2014b; Thalassinos and Politis, 2012).

Paradoxical as it may sound, corporations themselves are a significant barrier to DX --their business models, business processes and corporate management tools, created and proven successful in the predigital era of development: methods and technologies of targeted management based on KPIs, corporate performance management, strategic and operational marketing management, etc. Table 1 summarizes the results of comparative analysis of classical and digital models of corporate governance.

As can be seen from Table 1, major barriers to the DX lie in the management, methodological and information fields. Strategic, managerial and methodological aspects of the DX are reflected in the works of researchers, analysts, and consultants from McKinsey & Co (Willmott 2013), IDC (Greene, Parker and Perry, 2017), MIT and Capgemini Consulting (Westerman, Bonnet, and McAfee, 2014b) Forrester and Accenture (Digital transformation in the Age of the Customer, 2015) and others. A huge practical contribution to DX is made by the leaders of the global IT industry (Google, IBM, SAP, etc.), implementing their global projects in the field of business digitalization. Although it is already possible to speak confidently about the general laws, the key principles of the DX and success factors of digital leaders, it is premature to state that there is a deep-designed universal paradigm of transition from classical to the digital corporation (Thalassinos et al., 2012a; 2012b; 2013; Sibirskava et al., 2016; Pociovalisteanu et al., 2010).

It is possible that the very ideas of creating such a transition based on various road maps, frameworks, digital reengineering plans, are contradictory (Westerman, Bonnet and McAfee 2014b; IDC Future Scape, 2015; Greene, Parker and Perry 2017), since they bring pre-digital approaches to the corporate development. We believe that diversity and ambiguity of digitalization, uneven development of industries, social institutions, participants of digital ecosystem, uncertainties and the high dynamics of global changes in the macroenvironment allow to assert, that the DX process will develop flexibly in an evolutionary way, improving and changing the "original channel" as the market, state and society matures. The present article analyzes evolutionary approaches to the construction of digital performance management based on the advanced business analytics and proposes the functional architecture of the information system of digital corporate management. The proposed information models are based on the authors' project experience in real economy, as well as studies conducted by the Academic Competence Center of IBM "Reasonable Commerce" (located in Plekhanov Russian University of Economics) and outlined the prospects for further research. …

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