Using a Balanced Scorecard Framework to Leverage the Value Delivered by IS

Abstract

The pace of business and technological change continues to accelerate and the gap between business requirements and the capability of Information Systems (IS) groups to deliver, is getting wider. Very often both business and IS executives fail to understand the value of their IS investments and the factors that underpin IS performance. What is required to address these issues is a broad range of metrics to gauge both IS value and performance. The fundamental principle underlying the approach described in this chapter is that measurement should be used as a catalyst for change. “You cannot fully understand a subject until it is measured,” is a cliche from a famous physicist. The subject matter under review is that of the overall effectiveness and efficiency of an IS group in meeting the business needs. The emphasis is more on the information systems that provide business functionality than on technology processes and technical infrastructure issues. IS management is particularly challenging as it usually lacks mature measurement. This is paradoxical as the IS industry promotes the use of information systems to more effectively manage businesses.