Encyclopaedia

ABC - Activity Based Costing

calculation of costs according to partial activities; the ABC philosophy is based on the idea that costs are not incurred by actual performance, but by the activities (or processes) that lead to the creation of performance; the result of the ABC method is a much more precise overview of the cost effectiveness of individual products or customers.

ABM - Activity Based Management

management of processes and activities; this management concept is based on the fact that the operation of each organisation may be described as a sequence of certain activities or processes.

Asset Management

administration and management of the company’s assets.

Balanced Scoreacard

BSC- global methodology for putting strategies into implementation.

BNS

see Business Navigation System.

BNS-AB

Business Navigation System, Advanced Budgeting – a BNS subsystem supporting tactical management within the framework of the managerial decision-making process. Used to create tactical (annual) plans and for results analysis.

BNS-SX

Business Navigation System, Strategic Extension – a BNS subsystem supporting strategic management within the framework of the managerial decision-making process. Used for project strategic changes and results analysis.

BNS-Training (BNS-T)

(BNS-T) is a training programme associated with a set of accompanying services. It is intended for business managers, controlling staff and specialists, who master the principles of business navigation in the fields of sales performance, profitability and financial performance and potential management.

BSC

see Balanced Scorecard.

Business Intelligence

a term for software that provides access to information from various business sources, enabling it to be used and analysed. The aim is to ensure better and more precise information, thus rendering managerial decision-making more efficient.

Business Intelligence is a term for software (particularly powerful analytical and reporting tools) that provides access to information from various business sources, enabling past events to be analysed and also used to forecast future developments. The aim is to ensure better and more informed decisions.
The terminology sometimes differentiates between the concepts of executive information systems, management information systems and business intelligence. Although these are all separate and established terms, they may overlap in many aspects.
Business Intelligence is a way to achieve a competitive advantage.

Business Navigation

a new concept of information support for managerial decision-making, which extends beyond the existing Business Intelligence concept. The business is firmly focused on the future. A factual analysis searches for deviations between goals and what is actually achieved and seeks ways of remedying those differences. Business Navigation is a comprehensive set of methodical and software tools focused on strategic project changes, tactical and strategic management, planning and result analysis.

Controlling

a management tool designed to coordinate tactical and strategic planning, evaluate business results and thus achieve efficient management, thus steering the company towards its designated goals.

EVA

Economic Value Added; EVA measures a firm’s performance by deducting the cost of company’s equity capital from reported profit. Managers evaluated on the basis of EVA are thus remunerated solely for decisions that increase the value of the firm.

KP

Cover contribution - an indicator expressing the difference between revenues and total variable costs. It is intended to cover fixed costs and profit.

Manažerský informační systém (MIS)

this is a superstructure above the standard corporate information system. The outputs from the management information system are intended for members of middle and higher management.

The management information system (MIS) is a superstructure above the standard corporate information system. The outputs from the management information system are intended for members of middle and higher management.

The management information system is a system that streamline’s the company’s planning and decision-making processes, particularly by:

  • standardising (i.e. strengthening and codifying) controlling processes within the firm,
  • reducing the work required in processing controlling outputs,
  • increasing user comfort and the integrity of controlling outputs within the firm, and thus their information value for the user.

This all means that the company management has more time and motivation to focus their attention in the right direction, and has all the necessary information in a clear form to enable it to make decisions. It is not hampered by an excess of different forms of imprecise figures, but focuses on the causes of various deviations and possible problems.

The terminology sometimes differentiates between the concepts of executive information systems, management information systems and business intelligence. Although these are all separate and established terms, they may overlap in many aspects.

MFG/ PRO

a type of operational system from QAD, which is fully connective with the BNS system.

Navision Financials

a type of operational system, which is fully connective with the BNS system.

Profitability Management

one of the functional areas of management that is supported by the BNS information system KP (Cover contributions) and VN (Variable costs) modules.

SAP/ R3

a type of operational system from SAP, which is fully connective with the BNS management information system.

SBU

Strategic Business Unit – a business unit of the company with its own separate strategy.

System 21

a type of operational system from GEAC, which is fully connective with the BNS management information system.