Performance Management in E-commerce Companies: A Case Study of JC E-commerce Retail Company

Abstract

—Performance management is the core of business management, and all the work of business management is based on performance management. The purpose of enterprise management is to improve performance better and faster, optimize the various problems that exist in the process of enterprise survival, and achieve enterprise goals. Since its establishment in 2013, JC has also experienced a rapid growth phase, but the early growth of corporate performance was slow and the company entered a bottleneck in its development. This study investigates JC E-commerce Company as a case study to examine the reasons, process and results of using KPI performance management methods. JC is a private e-commerce company in China. In the early days of its establishment, JC underwent several changes, including corporate mergers and acquisitions, the introduction of advanced production technologies, and a focus on internal innovation, but corporate development was still unsatisfactory and the return on investment remained low. After changing the way of performance management, JC’s performance reached higher than before. At present, there are two main performance management tools widely used by well-known group companies worldwide, one is the Key Performance Indicator (KPI), which was developed earlier, and the Balance Scorecard (BSC), which was created in the early 1990s and is widely used. KPI is JC’s main way of performance management. In a highly competitive business and rapidly changing market environment, the success of business operations depends on achieving higher levels of product quality, cost, innovation, and speed in delivering new products. Therefore, performance management activities aimed at improving the overall performance of the company by promoting the performance of the company and its employees in these areas are receiving increasing attention from companies. This paper will investigate the process JC’s performance management, and then explain the strength and weakness of KPI.