Measuring IT Performance

Paper Summary:

This paper explains that the use of multiple IT performance measurement frameworks are ideal because it provides more information to an organization as to where it went wrong and where it still needs improvement. The author points out that economic value added, one of the most effective performance metrics in use today, assesses how well an organization is achieving its objectives and goals consistent with valuation principles that are important to any investor's analysis of a company. The paper relates that intellectual capital is a performance measurement framework that assesses the intangible assets of a company including the in-depth knowledge and skills of an organization's employees and the strategies and techniques implemented by an organization.

Table of Contents:
Introduction
Performance Measurement Frameworks
The Balanced Scoreboard
What is a Balanced Scorecard?
Financial Measures as Evaluated by the Balanced Scorecard
Strategy Implementation as Evaluated by the Balanced Scorecard
Economic Value Added
Intellectual Capital
Use of the Performance Measurement Frameworks in IT
Conclusion

From the Paper:

"In using the balanced scorecard in measuring the performance and value of IT in an organization, it is ideal that every scorecard focuses on the corporate goals. Thus, when developing metrics for the Balanced Scorecard, it is significant to have strategic thinking that emphasizes the organization's goal. For instance, Brickman and Fidler, two successful IT executives, suggests the following metrics to determine whether their company's IT meets customer needs and demands. Apparently, these elements are parts of strategy implementation which is one of the focus of the Balanced Scorecard performance measurement."

Sample of Sources Used:

• Stiroh, K. J. (2002). Measuring Information Technology and Productivity in the New Economy. World Economics Journal.
• Barua, A., et. al. (1995). Information Technologies and Business Value: An Analytic and Empirical Investigation. Institute for Operation Research and the Management Sciences, pp. 3-23.
• Chaudron, D. (2003). The Balanced Scoreboard and Performance Improvement. Organized Change Consultancy [Online] Available at: http://www.organizedchange.com/balancedscorecard.htm
• Niven, P. Performance Measurement and the Need for a Balanced Scorecard.Balanced Scorecard. [Online] Available at: http://www.balancedscorecard.biz/Introduction_BSC_C1.html
• Harper, D. (2006). EVA: Introduction. Investopedia [Online] Available at: http://www.investopedia.com/university/EVA/

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