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Assesing Company Financial Health using an Integrated BSC-DEA Framework with a Focus on Process Digitization Cover

Assesing Company Financial Health using an Integrated BSC-DEA Framework with a Focus on Process Digitization

Open Access
|Mar 2025

Figures & Tables

Fig. 1.

Comparison BSC-DEA model with other systems [2]
Comparison BSC-DEA model with other systems [2]

Fig. 2.

Key aspects of a company's financial health
Key aspects of a company's financial health

Fig. 3.

Decision – making process of BSC - DEA model
Decision – making process of BSC - DEA model

Fig. 4.

Visualization of efficiency scores in BSC-Dea model
Visualization of efficiency scores in BSC-Dea model

Fig. 5.

Strategic Insights of BSC-DEA mdoel
Strategic Insights of BSC-DEA mdoel

Fig. 6.

Benefits of the Integrated Approach
Benefits of the Integrated Approach

Fig. 7.

Digitization tools for BSC-DEA model
Digitization tools for BSC-DEA model

Software options suitable for BSC-DEA digitalization [6]

SoftwareBest ForStrengthsLimitations
BSC DesignerBSC implementation with strategy maps and KPI trackingUser-friendly, good visualization for BSCMay lack advanced DEA functionaliti es
ClearPoint StrategyComprehensive strategy management with reporting and visualizationStrong BSC features, extensive reportingMay not provide detailed DEA analysis
MaxDEADedicated DEA analysis with advanced modelsSpecialized in DEA, strong visualizationLacks BSC functionaliti es
DEA-Solver ProAdvanced DEA modeling with a focus on efficiency analysisHighly regarded for DEA, advanced modelingRequires expertise, not focused on BSC
PIM-DEAsoftIntuitive DEA tool with solid visualization featuresGood for DEA, intuitive interfaceDoesn’t focus on BSC
QPR SoftwareIntegrated performance management across BSC and other methodologiesVersatile, strong BSC featuresMay not have the same depth in DEA
Tableau (customized for BSC-DEA)Customizable and advanced data visualizationPowerful visualization, customizableRequires manual setup for DEA
R with Benchmarking PackageUsers comfortable with programming and customizationFlexible, advanced analysisRequires coding skills
MATLAB with DEA ToolboxAdvanced users needing custom DEA solutionsPowerful analytics, customizableRequires significant expertise
Frontier AnalystPerformance benchmarking with DEAStrong DEA focus, good visualizationLimited BSC functionality

Comparing different DEA models [6]

ModelScale AssumptionEfficiency FocusApplicabilityKey Advantage
CCRConstant ReturnsOverall TechnicalStandardized processesSimple and widely applicable
BCCVariable ReturnsPure TechnicalUnits of varying sizesHandles scale effects
AdditiveNon-radialSlack-basedInput-output balance criticalMeasures input and output inefficiency
Malmquist IndexTime-basedProductivity ChangeLongitudinal performance studiesMeasures efficiency over time
Super-EfficiencyConstant/ Variable ReturnsRanking Efficient UnitsCompetitive benchmarkingRanks DMUs beyond efficiency frontier
Network DEAMulti-stage ProcessProcess-basedComplex operations (e.g., supply chains)Evaluates internal processes separately

BSC weaknesses and strengths of DEA [1]

Weaknesses of BSC
One of the challenges in BSC is having the baseline which performance is measured against. Evaluation is impossible without a benchmark. First, a baseline for evaluation should be determined and then we should do the evaluation against the baseline. However, baselines and benchmarks are hard to determine and can be ambiguous. As DEA is based on relative comparison, the DMUs are evaluated against each other. By combining the BSC with DEA we can answer this important challenge of BSC.
BSC confronts managers with an extraordinarily complex optimization problem because of BSC has complexity and the interrelated indicators. This complexity also rises from the large number of variables. Big companies, which should try to track hundreds of measures in BSC, state that BSC lacks a single complex index to summarize the interaction between these measures of performance.
Lack of a common scale of measurement causes more complexity. Moreover, in BSC, we may have dimensionless ratios and index numbers.
Strengths of DEA
DEA permits to analyze multiple inputs and output factors simultaneously. This ability is very helpful in real-world management situations because there are usually multiple, multidimensional inputs and outputs. From this perspective, DEA is better in comparison with traditional approaches that can only deal with multiple inputs and a single output. Managers can use the results of DEA to improve and increase corporate performance, efficiency and competitiveness.
DEA solves an optimization problem and gains its weights result. Hence, DEA is only dependent on the empirical observations. This fact gives the DEA a great advantage over usual optimization procedures.
DEA is a non-parametric approach so it does not need to have an explicit functional form to relate inputs to outputs.
DOI: https://doi.org/10.2478/ama-2025-0019 | Journal eISSN: 2300-5319 | Journal ISSN: 1898-4088
Language: English
Page range: 164 - 171
Submitted on: Aug 23, 2024
Accepted on: Oct 30, 2024
Published on: Mar 31, 2025
Published by: Bialystok University of Technology
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2025 Michaela Kočišová, Milan Fiľo, Jaroslava Kádárová, Alžbeta Suhányiová, published by Bialystok University of Technology
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.