Financial Engineering
E-ISSN: 2945-1140
Volume 2, 2024
Modeling and Analyzing of Financial Data within Digital Transformation Era and its Impact on Balanced Scorecards Utilizations: A Theoretical Review
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Abstract: The present theoretical review outlines the interaction between digital transformation and financial
data modeling and the use of Balanced Scorecards in improving strategic management in organizations.
Considering the context of rapid technological processes and the growing influence of international competition,
the principle question of this work is how current management accounting methods, most of which are inspired
by digitization, shift the theoretical perspective of how organizations use (BSCs) for strategic forecasting and
performance assessment.
By conducting a thorough review of the literature within the realms of management accounting, information
systems, and strategic management, this theoretical review identifies the main trends, the rationale, and the
challenges behind the use of (BSCs) and digitization. The current finding indicates that the implementation of
digital technologies into the process of financial data modeling substantially increases the potential of (BSCs) by
offering real-time, useful information for strategic decision-making. At the same time, the implementation
process raises a set of challenges, such as security issues, hefty financial investments into technological
infrastructures, and human factors of organizational change. Despite these hurdles, the potential benefits of
digitally-enhanced (BSC) framework-such as improved decision-making accuracy, strategic agility, and
operational efficiency-underscore the importance of adopting a holistic approach to digital transformation in
strategic management practices.
This review calls for a balanced perspective that considers both the technological and cultural dimensions of
implementing digital innovations within (BSC) frameworks. It concludes with recommendations for future
research, emphasizing the need for empirical studies to validate theoretical insights presented and explore the
practical implications of digital transformation organizations-BSCs effectiveness in diverse organizational
context.
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Keywords: Financial Data Modeling, Digital Transformation, Balanced Scorecard (BSC), Management
Accounting, Financial Engineering
Pages: 180-186
DOI: 10.37394/232032.2024.2.17