Accounting Information System Assignment - KPIs and Scorecards

This assignment delves into the realm of accounting information systems, focusing on business process innovation, business process management, and the tools used to measure their effectiveness. The student's work defines business process innovation and its role in enhancing operational performance, contrasting it with business process management's systematic approach to efficiency and adaptability. The assignment then explores performance measurement tools, specifically the balanced scorecard and key performance indicators (KPIs), and demonstrates how they are used to assess the success of innovation strategies. It provides examples of how organizations establish goals and use the balanced scorecard to evaluate perspectives like product development time and new product contributions. The assignment clarifies that business process management and innovation utilize these performance measurement tools, and are interconnected. The references include sources that support the concepts of business process management, innovation, and related performance measurement techniques.

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student:
Name of the University:
Author Note

1ACCOUNTING INFORMATION SYSTEM
Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................4
Answer to Question 3......................................................................................................................4
References........................................................................................................................................5

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Answer to Question 1
Business process innovation essentially refers to applying a strategic perspective to the
work processes, and the units and scope of work in order to make it possible to separate as to
what is required and what is not. In simpler terms a business process is essentially a process that
has been structured with a set of activities fundamentally designed to produce a specified output
by a particular market or client. Business process innovation is the innovation of such a process
for the sole purpose of improving operational performance of the organization.
Business process management on the other hand refer to the systematic approach that is
applied on the workflow of an organization to make it more efficient, effective and adaptive or
more prone to adapting to the always changing business environment.
Now, in order to measure the effectiveness of the business process management or the
business process innovation employed by business different performance measurement tools
have been utilized. Essentially, the performance measurement tools that have been utilized for
this purpose are the balanced scorecard approach and the key performance indicators.
For instance, a particular organization may implement innovation and learning in its
processes by the setting up of the following goals:
 Leadership in technology
 Manufacturing learning
 Focus o the product
 Market timing

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Now, in order to measure the effectiveness of the above established goals the balanced
scorecard approach has been used by the management of the organization. The balanced
scorecard essentially develops a number of perspectives based on the respective goals whose
effectiveness has to be measured. In this case, the perspectives that the balanced scorecard
can develop in order to aid the innovation techniques implemented by the organization are:
 Time to develop the next batch of products
 The process time required for maturity
 Percentage of contribution of the new line of products to sales
 New product introduction versus competition
All of the above mentioned perspectives of the balanced scorecard approach are
dependent on the company goals that have been set in alignment with the concept of business
process management and business process innovation.
The next performance measurement that has the ability to substitute the balanced
scorecard is the key performance indicators. The key performance indicators are established with
the aim to determine whether a particular process is running as desired. The key performance
indicators may be divided into long-term indicators and real time indicators depending on the
company needs. Key performance indicators (KPIs) are essential to measure and subsequently
improve business processes in an organization. Therefore, it can be clearly understood from the
above discussion that balanced scorecards or key performance indicators are the tools via which
the effectiveness of the business process management and business process innovation
implemented in business is measured (Harmon, 2015).

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Answer to Question 2
No, there are no ways in which these business processes detract from key performance
indicators or the balanced scorecard approach as business process management or business
process innovation utilize these performance measurement tools to measure the effectiveness of
the implemented goals (Tjader et al., 2014).
Answer to Question 3
The balanced scorecard approach or the key performance indicators and the business
process innovation or business process management are the two respective faces of the same coin
and are intricately connected with each other (Tjader et al., 2014).

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References
Harmon, P. (2015). The scope and evolution of business process management. In Handbook on
business process management 1 (pp. 37-80). Springer, Berlin, Heidelberg.
Tjader, Y., May, J. H., Shang, J., Vargas, L. G., & Gao, N. (2014). Firm-level outsourcing
decision making: A balanced scorecard-based analytic network process model.
International Journal of Production Economics, 147, 614-623.