Role of Financial Performance Management in Business Transformation - Case Study with IBM

• Main Authors: Cheng, Po-Hua, 鄭博化
• Other Authors: Lin, Che-Chun
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/vhw8f2

碩士 === 國立清華大學 === 高階經營管理碩士在職專班 === 105 === Industry in Taiwan is facing the critical time of transformation. Some enterprises face the problem of successors (2nd generation managers), and these 2nd generation expects to lead business transformation to continue the growth. Business transformation involves changes in business model which also changes how financial management should be and successful transformation not only drives for better financial performance but also requires support from financial management. Strategic transformation will result in different business models, product portfolio, business processes, and existing financial management framework might not support transformed enterprise. Managing finance of transforming enterprises with “old” way, existing KPIs might not manage the transformation effectively, and even disrupts the transformation. Financial performance is the result of business transformation, not the objective of business transformation. If transformation is evaluated with financial KPIs, it is nearly impossible to design holistic performance evaluation framework, and it is even harder to manage strategic transformation with such framework. Managers need to understand the changes through transformation including organization, cost structure, and financial management shall be re-defined along with the transformation. By doing this, it is possible to cohere strategic transformation with financial management. This study uses IBM (international business machine) as the target enterprise to understand how IBM plans its strategic transformation and how financial management with EPS as major objective affects the results for major transformation attempts during 1990~2010. The experience and lessons learned from IBM might be taken as a reference for Taiwan enterprises which consider business transformation.