Performance Measurement in ITG Based on Balanced Scorecard

Author(s):  
Haviluddin Haviluddin ◽  
Rayner Alfred

The article reports on our work in conducting performance measurement for the management of Information Technology (IT) by applying the Balanced Scorecard (BSC) at Mulawarman University, Samarinda, East Kalimantan, Indonesia. The results of this study are then used to propose a hybrid framework that applies both BSC and a artificial intelligence (AI) techniques in order to measure the performance of IT governance generally. This article also examines BSC’s abilities and its flexibility compared to other methods in measuring the performance of IT governance. The proposed hybrid framework is expected to yield a management that produces a scorecard measures that are more rigorous, accurate and consistent with the objectives and organizational strategies in non-profit organizations, especially educational ones.

Author(s):  
Wim Van Grembergen ◽  
Isabelle Amelinckx

The Balanced Scorecard (BSC) initially developed by Kaplan and Norton is a performance measurement system that supplements traditional financial measures with the criteria that measure performance from three additional perspectives: customer perspective, internal business perspective, and innovation and learning perspective. In recent years, the Balanced Scorecard has been applied to information technology in order to ensure that IT is fairly evaluated. The proposed methodology can also be applied to e-business initiatives. In this chapter, it is illustrated how the BSC can be used to measure and manage e-business initiatives. A generic e-business Balanced Scorecard is proposed and its development and implementation is discussed.


2014 ◽  
Vol 5 (3) ◽  
pp. 17-31 ◽  
Author(s):  
Ruey-Shiang Shaw ◽  
Che-Pin Cheng ◽  
Ta-Yu Fu ◽  
Chia-Wen Tsai ◽  
Dong-Cheng Yen

More and more enterprises regard Information Technology (IT) as their most valuable property and make full use of IT to maximize the performance of their business operations. As a result, enterprises are attaching more importance to coordinating their IT strategy and enterprise strategy in order to get the most from their IT investment. For the sake of better IT performance and long-term development, firms must adopt a complete strategy for IT governance. In Taiwan, most financial enterprises have not considered IT governance to be a necessity, and those which are implementing IT governance have difficulty explaining, systemically, how it affects IT performance. Based on the five dimensions of IT governance, this study uses the balanced scorecard to measure IT performance and discusses the influence of effective governance on IT performance. The results show that the five dimensions of IT governance (strategic alignment, value delivery, risk management, resource management, and performance measurement) are all positively correlated with IT performance. The results of this study can help Taiwan's financial enterprises set the proper course for IT governance and more clearly understand how it serves to improve IT performance.


2015 ◽  
Vol 14 (1) ◽  
pp. 127-138
Author(s):  
Miriam Magdala Pinto ◽  
Bruno Mannato Angius

The Balanced Scorecard (BSC), when it reaches its maximum potential, is a strategic management system mainly usedby companies. However, with some adjustments, it can be used by Non-profit Organizations (NPO). Its use, in this case,needs to be further investigated. The article reports the experience and lessons learned from using BSC in an academiclab for sixteen months. The process included initial planning, three rounds of performance measurement and a finalplanning review. Entrepreneurial BSC, with some adjustments, was adequate for strengthening laboratory’s identity,for performance measurement and results reporting, although not reaching, during the experiment period, the maturityof a strategic management system.


2016 ◽  
pp. 1786-1801 ◽  
Author(s):  
Ruey-Shiang Shaw ◽  
Che-Pin Cheng ◽  
Ta-Yu Fu ◽  
Chia-Wen Tsai ◽  
Dong-Cheng Yen

More and more enterprises regard Information Technology (IT) as their most valuable property and make full use of IT to maximize the performance of their business operations. As a result, enterprises are attaching more importance to coordinating their IT strategy and enterprise strategy in order to get the most from their IT investment. For the sake of better IT performance and long-term development, firms must adopt a complete strategy for IT governance. In Taiwan, most financial enterprises have not considered IT governance to be a necessity, and those which are implementing IT governance have difficulty explaining, systemically, how it affects IT performance. Based on the five dimensions of IT governance, this study uses the balanced scorecard to measure IT performance and discusses the influence of effective governance on IT performance. The results show that the five dimensions of IT governance (strategic alignment, value delivery, risk management, resource management, and performance measurement) are all positively correlated with IT performance. The results of this study can help Taiwan's financial enterprises set the proper course for IT governance and more clearly understand how it serves to improve IT performance.


Author(s):  
Rainer Hannesto

Business growth nowadays is very rapid. Most organization in all industry depends on information technology to compete in industrial competition. Before make a decision to invest in information technology, better to make planning for alignment between information technology and strategy that can brings benefit to company. The lack of information System strategic planning can have an impact on the achievement of the vision and mission of the organization.This research was conducted based on the framework by Ward & Peppard. Researchers interviewed the management and doing direct observation to determine the current business processes. Researchers also get the data by distributing questionnaires to the employees of the organization as well as literature. The result of this study is the composition of an application portfolio that contains information system strategic planning needs, management and infrastructure also performance measurement targets indication based on the results of the analysis of the Balanced Scorecard.


2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Shradha Gawankar ◽  
Sachin S. Kamble ◽  
Rakesh Raut

This paper aims to propose the idea of briefly explaining the balance scorecard by highlighting its use, application in depth. A critical enabler in achieving desired performance goals is the ability to measure performance. Despite the importance of accurately measuring organizational performance in most areas of academic research, there have been very few studies that have directly addressed the question of how overall organizational performance is or should be measured. Perhaps more importantly, none of these studies seems to have significantly influenced how overall organizational performance is actually measured in most of the empirical research that uses this construct as a dependent measure. The most popular of the performance measurement framework has been the balanced scorecard abbreviated as BSC. The BSC is widely acknowledged to have moved beyond the original ideology. It has now become a strategic change management and performance management process. The approach used in this paper is the combination of literature review on evolution of balance score card and its applications in various sectors/organizations/ areas. This paper identify that the balanced scorecard is a powerful but simple strategic tool and the simplicity of the scorecard is in its design. By encompassing four primary perspectives, the tool allows an organization to turn its attention to external concerns, such as the financial outcomes and its customers expectations, and internal areas, which include its internal processes to meet external requirements and its integration of learning and growth, to successfully meet its strategic expectations. This paper provides a comprehensive overview of the balanced scorecard combined with application and strategy, which are now in a better position to begin to recognize managements expectations and to discover new ways to build value for workplace learning and performance within organization.


2016 ◽  
Vol 12 (2) ◽  
pp. 57 ◽  
Author(s):  
Johanes Fernandes Andry

Established in 2001, XYZ Cargo is a Freight Forwarder Service Company specialized in the logistic transportation located in Jakarta. XYZ Cargo has broad experiences in both ocean freight and air freight service and has more than sixty agents of partnership around the world. XYZ Cargo has implemented Information Technology (IT) that covers all key aspects of business processes of the enterprise. It has an impact on the strategic and competitive advantages of its success. Many organizations have started implementing IT governance in order to achieve the collaboration between business and IT. The purpose of this research is to get an overview of performance measurement of the currently-running IT Governance with several aspects to consider such as effectiveness, efficiency, functional unit of information technology within an organization, data integrity, safeguarding assets, reliability, confidentiality, availability, and security. The analytical tool used in this research is the COBIT 5 standard procedure by ISACA. The result of IT Governance based on COBIT 5 in domain EDM, shows average values at the level of 2.0 until 2.7 (managed process) for EDM01, EDM02, EDM03 and 1.3 until 1.7 (performed process) for EDM04, EDM05.


Author(s):  
Yasrin Zabidi

One important factor in influencing the progress and decline of an industry is the performance factor. Performance issues are not only important for middle-to-upper-level companies and large companies, but also important for small and medium industries such as the batik craft industry in the Wukirsari region, Bantul. Given the importance of performance, researchers tried to design a performance measurement model of the batik craft industry in the Wukirsari region, Bantul with the aim of identifying performance criteria, determining performance indicators, formulating performance indicators, and making performance measurement instruments. The steps in this study are divided into four phases, namely the initial research phase and problem formulation, the design phase, the analysis phase and the conclusion phase. The initial research phase and problem formulation include, the profile of the batik craft industry in the Wukirsari region, Bantul, the current performance evaluation system, problem formulation and research objectives. The design phase includes the design process of the performance measurement model with the Balanced Scorecard method which includes setting strategic objectives, establishing performance indicators (key performance indicators), determining performance indicator formulas, making performance measurement instruments. Analysis phase includes KPI analysis and strategy map analysis. Conclusion phase includes conclusions from the results of research and suggestions for the batik craft industry in Wukirsari, Bantul. From the results of the study obtained four performance perspectives based on the balanced scorecard, namely financial, customer, internal business processes, learning and growth. five, namely: increased sales growth, high customer satisfaction, improved system and better work processes, the creation of a good work climate, and increased employee productivity.There are seven performance indicators formed, namely: the rate of sales growth, the level of customer satisfaction, level of compliance with customer complaints, percentage of defective products, number of new products, level of job satisfaction, and employee productivity. The establishment of a performance measurement worksheet, so that the performance values of each performance indicator and total performance can be known in a certain period.Keywords: Performance, Measurement, Batik


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