Browse > Article

IT Investment Evaluation Using the Indices Generated from the Balanced Scorecard Strategy Map : A Method and Case  

Choi, Doug W. (The School of Systems Management Engineering, Sungkyunkwan University)
Lee, Dong-wook (The School of Systems Management Engineering, Sungkyunkwan University)
Lee, Dong-Cheol (Department of MIS, Cheju National University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.31, no.2, 2005 , pp. 143-151 More about this Journal
Abstract
Information technology(IT) investment evaluation requires measurements from many perspectives. Except for the case of financial performance, these measurements mostly belong to the qualitative or intangible domain. The problem with IT investment evaluation lies in the fact that it is very difficult to define the qualitative properties against which to measure the performances. This paper addresses the issue of developing the set of performance indices, and defining the structural relationships between them, such that the IT investment evaluation can be done in a systematic, objective and comprehensive manner. We introduce the balanced scorecard strategy map as the backbone reference frame for the generation of performance indices and for the description of the relationships between them. Sample indices for evaluating projects from strategic perspectives are provided with a case example. A step by step follow through of the index generation process has been presented along with the case.
Keywords
investment evaluation; balanced scorecard(BSC); BSC strategy map; index generation; information system success model;
Citations & Related Records
연도 인용수 순위
  • Reference
1 General Services Administration (1996), A Model Procurement Program: Successful Information Technology (IT) Acquisition
2 Kim, Jeongyu (2001), IT investment evaluation methods and the applications, working paper,28, e-bizgroup
3 Kim, H.K. and Seong, E.S. (2001), BSC Practice Manual, Sigma Insight Pub.Co
4 Pitt, L.F. Watson, R.T. and Kavan, C.B. (1995), Service Quality : A Measure of Information Systems Effectiveness, MIS Quarterly, 19,173-187   DOI   ScienceOn
5 Korea Ministry of Information and Communication (2001), 2001 Analysis of The Enterprises IT Investment Activities
6 Kaplan, R.S. and Norton, D.P. (1998), BSC: The Integrated Management Indices for Value Realization, Translated into Korean, Haneun Pub.Co
7 Kaplan, R.S. and Norton, D.P. (200Ib), Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part II, Accounting Horizons, 147-161
8 Delone, W.H. and McLean, E.R. (1992), Information systems success : The quest for the dependent variable, Information Systems Research, 3(1), 60-95   DOI
9 KoreaTelecommunications Co. (2002), Symposium on Enterprise IT Investment Evaluation Methods
10 Shank, J.K. and Gobindarajan, V. (1993), Strategic Cost Management, Free Press,New York
11 Korea Computing Center (2000), A study on the IT evaluation, R&D report
12 Kaplan, R.S. and Norton, D.P. (2001a), Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I, Accounting Horizons, 87-105