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A fuzzy multi-objective balanced scorecard approach for selecting an optimal electronic business process management best practice (e-BPMBP)

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Abstract:

Purpose ‐ The rapid intensification of the internet and electronic commerce diffusion has given rise to electronic business process management (e-BPM) which enhances the overall connectivity of the business processes. However, when confronted by the range of e-BPM best practices (e-BPMBPs), organizations struggle to identify the one most appropriate to their needs. The paper aims to address these issues. Design/methodology/approach ‐ The paper proposes a novel fuzzy group multi-objective method for e-BPMBP evaluation and selection. First, a fuzzy group linear assignment method is used to rank the e-BPMBPs drawing on the four perspectives of a balanced scorecard (BSC). Second, a fuzzy group real options approach is used to estimate the financial values of the ranked e-BPMBPs. Third, a four-objective assignment model is used to select the optimal e-BPMBP in deferral time with respect to their rankings, financial values, and a series of pertinent constraints. Findings ‐ The contribution of the proposed method is threefold: it is grounded in the four perspectives of a BSC, it considers imprecise or vague judgments which lead to ambiguity in the decision process, and it uses a meaningful and robust multi-objective model to aggregate both qualitative judgments and quantitative data. A case study is presented to demonstrate the applicability of the proposed framework and to exhibit the efficacy of the procedures and algorithms. Originality/value ‐ The novel fuzzy group multi-objective framework for e-BPMBP evaluation and selection proposed in the paper takes into consideration (1) the qualitative and quantitative criteria and their respective value judgments; (2) the verbal expressions and linguistic variables for qualitative judgments which lead to ambiguity in the decision process; and (3) imprecise or vague judgments.

Keywords: Balanced scorecard; Best practice; Business process reengineering; Process management

Document Type: Research Article

DOI: http://dx.doi.org/10.1108/14637151111105625

Publication date: February 8, 2011

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