• Title/Summary/Keyword: IT Balanced Scorecard

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The Impact of Key Success Factors and Implementation Typology of SCM on the Business Performance -Using the Balanced Scorecard- (공급사슬관리(SCM)의 핵심성공요인과 추진유형이 기업의 경영성과에 미치는 영향 -균형성과표(BSC)를 활용한 성과측정-)

  • Lee, Jae-Sik
    • Management & Information Systems Review
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    • v.28 no.1
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    • pp.45-69
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    • 2009
  • Today, SCM is used as a important tool of management innovation for enterprise's survival and development. BSC forces managers to focus on balanced measures of business performance that are most critical. The purpose of this study is to find out the determinants of SCM adoption through the analysis which examine the relationship among the key success factors, and business performance using the BSC perspective. This study also gives the suggestion for the effective SCM implementation in the korean companies. This study has been conducted using the data collected from 107 companies implementing SCM. By analyses of the questionnaires, empirical results shows that the implementation of SCM has positive effect on organizational performance with 4 perspectives of BSC. The contribution of this study is that it provides a conceptual framework and empirical evidence of the causal relationship between key success factors, and business performance with 4 perspectives of BSC concept. This study showed that more consideration are essential to obtain balanced business performance for companies with SCM adoption plan.

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The Impact on the Business Performance of CRM System -Using the Balanced Scorecard- (고객관계관리(CRM) 시스템이 경영성과에 미치는 영향 -균형성과표(BSC)를 활용한 성과측정-)

  • Lee, Jae-Sik
    • Management & Information Systems Review
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    • v.29 no.3
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    • pp.97-121
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    • 2010
  • Many enterprises introduce CRM as a new process accessible to customers. And BSC forces managers to focus on balanced measures of business performance that are most critical. The purpose of this study is to find out the determinants of CRM adoption through the analysis which examine the relationship among the key success factors, and business performance using the BSC perspective. This study also gives the suggestion for the effective CRM implementation in the korean companies. This study has been conducted using the data collected from 115 companies implementing CRM. By analyses of the questionnaires, empirical results shows that the implementation of CRM has positive effect on business performance with 4 perspectives of BSC. The contribution of this study is that it provides a conceptual framework and empirical evidence of the causal relationship between key success factors, and business performance with 4 perspectives of BSC concept. This study showed that more consideration are essential to obtain balanced business performance for companies with CRM adoption plan.

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Balanced Scorecard for Performance Measurement of a Nursing Organization in a Korean Hospital (대학병원 간호조직 균형 성과지표의 적합성 검증)

  • Hong, Yoon-Mi;Hwang, Kyung-Ja;Kim, Mi-Ja;Park, Chang-Gi
    • Journal of Korean Academy of Nursing
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    • v.38 no.1
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    • pp.45-54
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    • 2008
  • Purpose: The purpose of this study was to develop a balanced scorecard (BSC) for performance measurement of a Korean hospital nursing organization and to evaluate the validity and reliability of performance measurement indicators. Method: Two hundred fifty-nine nurses in a Korean hospital participated in a survey questionnaire that included 29-item performance evaluation indicators developed by investigators of this study based on the Kaplan and Norton's BSC (1992). Cronbach's alpha was used to test the reliability of the BSC. Exploratory and confirmatory factor analysis with a structure equation model (SEM) was applied to assess the construct validity of the BSC. Result: Cronbach's alpha of 29 items was .948. Factor analysis of the BSC showed 5 principal components (eigen value>1.0) which explained 62.7% of the total variance, and it included a new one, community service. The SEM analysis results showed that 5 components were significant for the hospital BSC tool. Conclusion: High degree of reliability and validity of this BSC suggests that it may be used for performance measurements of a Korean hospital nursing organization. Future studies may consider including a balanced number of nurse managers and staff nurses in the study. Further data analysis on the relationships among factors is recommended.

A Study on the Development of Performance Indicators in the Community Business (커뮤니티 비즈니스 성과지표 개발연구)

  • Kim, Myung-Jin
    • The Journal of the Korea Contents Association
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    • v.17 no.6
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    • pp.22-31
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    • 2017
  • This study has begun with the perception that proper measuring system is required to grow community business in equilibrium and to grope for some developmental directions of it. First, for effective performance evaluation of community business, the study developed a performance evaluation model based on balanced score cards, and to apply validity analysis and analytic hierarchy process (AHP) by classifying. Second, the relative importance of the second indicator for each of the first aspects shows that participation of local residents and in the aspect of person interested, satisfaction of inner education in the aspect of learning and growth, shortening of work process in the aspect of inner process, and sales per head in the aspect of substantiality were high in relative importance. Third, in the result of calculation of overall weight for each aspect, participation of local residents, a business connection to the community, sales per head were ranked in the upper group. Thus, it's now necessary to have management support through fostering intermediate support organizations in community business which has been bureaucratic, and improvement of product and service through connection with outside consulting agencies and strategic alliance with the leading businesses is required.

Construction Project Performance Management Using BSC and Data Warehouse (BSC를 활용한 Data Warehouse 기반의 건설 프로젝트 성과관리)

  • Park, Moon-Seo;Kim, Nam-Ho;Lee, Hyun-Soo;Ahn, Chang-Bum;Lee, Kyu-Sung
    • Korean Journal of Construction Engineering and Management
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    • v.10 no.2
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    • pp.14-25
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    • 2009
  • Many companies have managed their business performance in order to achieve their enterprise purpose. Performance management which applied concept of BSC (Balanced Scorecard) is widely used all over the world. In the construction industry, BSC-based performance management is currently introduced with needs of balanced performance evaluation. However, most companies actually have intermediate level of adapting BSC. It is important to understand its process or and structure. Therefore, this paper is focused on making performance management process and defining each phase of it. In addition, the model and system are established with putting them together. With developing performance process in construction, the construction companies are supposed to detect the deficiencies of the current performance management systems and take some opportunity to be helped for supporting their decision-making. In conclusion, this paper will provide the construction industry with the opportunities to enhance the values of performance management system and construction application.

Factors Affecting Financial Performance of ERP System Based on BSC Framework: The Moderate Effect of Strategic Alignment and the Mediating Effect of Customer and Business Process Perspectives (BSC프레임워크 기반 ERP시스템의 재무 성과 영향요인: 전략적 연계성의 상호작용효과와 고객 및 비즈니스 프로세스 관점의 매개 효과)

  • Park, Ki Ho
    • The Journal of Information Systems
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    • v.30 no.3
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    • pp.93-112
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    • 2021
  • Purpose Recently, many organizations are actively adopting enterprise architecture (EA) as a methodology to manage IT assets and build IT-based business system. This study intended to empirically examine how the role of EA operating unit and utilization capability of organizational members impact on system performance at the post-adoption stage. A balanced score card (BSC) is being used as a framework for a company's key performance indicator (KPI). Design/methodology/approach This study tried to investigate the causal relationship between the four perspectives of the balanced scorecard as an influencing factor of the introduction of the Enterprise Resource Planning (ERP) on the financial value. In particular, the mediating effect between the customer's point of view and the business process point of view was investigated between the learning growth point of view and the financial point of view, and the interaction effect (regulating effect) of strategic linkage in the system introduction process was investigated. Findings The results of the study were first, that the organizational learning and growth perspective had a positive effect on the customer perspective, business process, and financial perspective. In addition, the customer perspective and the process perspective also had a positive influence on the financial perspective. Second, between the learning growth and financial perspectives, the customer perspective and the process perspective showed a partial mediating effect. Third, as for strategic linkage, the interaction effect between the customer perspective, the learning growth perspective, and the process perspective and the financial perspective was not significant. The results of this study are expected to provide a framework for performance evaluation to organizations that have introduced ERP systems.

A Sustainable BSC-IT based Framework for Assessing the Strategic Impacts of Green IT Initiatives (그린IT 이니셔티브들 전략적 영향들을 평가하기위한 지속가능한 BSC-IT 기반 프레임워크)

  • Ruiz, Luis;Park, Jeong-Sun
    • Journal of the Korea Safety Management & Science
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    • v.14 no.4
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    • pp.205-210
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    • 2012
  • We don't have time to waste, time is running, and the global warming is an issue that concerns to all of us. Information technology, which on a global level is responsible for 2% of emission of greenhouse gases. However, the remaining 98% is seen as an opportunity for IT to help our planet, our companies and our society. The purpose of this paper is to analyze green information technology (IT) initiatives and their strategic impact. And to have done this, we develope and create a very useful balanced-scorecard framework to explain, understand, and identify the direct and indirect contribution of green IT initiatives. The green IT evaluation framework, called here a sustainable green IT balanced scorecard, integrates the four BSC-IT perspectives with the Zuboff's automate/informate goals of information systems and the contribution of the sustainability (economic, social and environment). This study also seeks to answer the following questions: 1) what are the driving forces for implementing green IT initiatives? 2) How can an analytical framework be built to systematically analyze the benefits and strategic contribution of green IT initiatives? And 3) how green IT initiatives impact the strategic goals of a firm and how they can contribute to the triple bottom line? The framework demonstrates to be useful as a management tool to hopefully integrate environmental and social management with the general management of a company. Besides, the strategy map and measures for each cell of the framework are provided.

A Study on the e-Business Utilization Schemes in Small and Medium Companies (국내 중소기업 전자상거래 현황 및 활성화 방안에 관한 연구)

  • Lee, Jong-Min
    • Korean Business Review
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    • v.18 no.1
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    • pp.1-17
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    • 2005
  • This study attempts to investigate the IT utilization and e-business level of the small and medium companies in order to facilitate their e-commerce efforts. Results show that they have basic IT infrastructures such as internet and PC, but they use their IT resources mainly for office automations. Major problems with such low level of IT utilization are in their lack of manpower, skill, and fund. Considering above issues, web hosting service is believed as a good measure to alleviate their problems. Hence, this paper suggests that utilization of the web-based ASP can be a viable solution for the currently revealed issues. Also, development of creative IT application(business) cases and their advertizement can lead small and medium finns to more productive IT investments, which requires more diverse IT performance measurements such as BSC(balanced scorecard), other than traditional ROI.

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A PLS Path Modeling Approach on the Cause-and-Effect Relationships among BSC Critical Success Factors for IT Organizations (PLS 경로모형을 이용한 IT 조직의 BSC 성공요인간의 인과관계 분석)

  • Lee, Jung-Hoon;Shin, Taek-Soo;Lim, Jong-Ho
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.207-228
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    • 2007
  • Measuring Information Technology(IT) organizations' activities have been limited to mainly measure financial indicators for a long time. However, according to the multifarious functions of Information System, a number of researches have been done for the new trends on measurement methodologies that come with financial measurement as well as new measurement methods. Especially, the researches on IT Balanced Scorecard(BSC), concept from BSC measuring IT activities have been done as well in recent years. BSC provides more advantages than only integration of non-financial measures in a performance measurement system. The core of BSC rests on the cause-and-effect relationships between measures to allow prediction of value chain performance measures to allow prediction of value chain performance measures, communication, and realization of the corporate strategy and incentive controlled actions. More recently, BSC proponents have focused on the need to tie measures together into a causal chain of performance, and to test the validity of these hypothesized effects to guide the development of strategy. Kaplan and Norton[2001] argue that one of the primary benefits of the balanced scorecard is its use in gauging the success of strategy. Norreklit[2000] insist that the cause-and-effect chain is central to the balanced scorecard. The cause-and-effect chain is also central to the IT BSC. However, prior researches on relationship between information system and enterprise strategies as well as connection between various IT performance measurement indicators are not so much studied. Ittner et al.[2003] report that 77% of all surveyed companies with an implemented BSC place no or only little interest on soundly modeled cause-and-effect relationships despite of the importance of cause-and-effect chains as an integral part of BSC. This shortcoming can be explained with one theoretical and one practical reason[Blumenberg and Hinz, 2006]. From a theoretical point of view, causalities within the BSC method and their application are only vaguely described by Kaplan and Norton. From a practical consideration, modeling corporate causalities is a complex task due to tedious data acquisition and following reliability maintenance. However, cause-and effect relationships are an essential part of BSCs because they differentiate performance measurement systems like BSCs from simple key performance indicator(KPI) lists. KPI lists present an ad-hoc collection of measures to managers but do not allow for a comprehensive view on corporate performance. Instead, performance measurement system like BSCs tries to model the relationships of the underlying value chain in cause-and-effect relationships. Therefore, to overcome the deficiencies of causal modeling in IT BSC, sound and robust causal modeling approaches are required in theory as well as in practice for offering a solution. The propose of this study is to suggest critical success factors(CSFs) and KPIs for measuring performance for IT organizations and empirically validate the casual relationships between those CSFs. For this purpose, we define four perspectives of BSC for IT organizations according to Van Grembergen's study[2000] as follows. The Future Orientation perspective represents the human and technology resources needed by IT to deliver its services. The Operational Excellence perspective represents the IT processes employed to develop and deliver the applications. The User Orientation perspective represents the user evaluation of IT. The Business Contribution perspective captures the business value of the IT investments. Each of these perspectives has to be translated into corresponding metrics and measures that assess the current situations. This study suggests 12 CSFs for IT BSC based on the previous IT BSC's studies and COBIT 4.1. These CSFs consist of 51 KPIs. We defines the cause-and-effect relationships among BSC CSFs for IT Organizations as follows. The Future Orientation perspective will have positive effects on the Operational Excellence perspective. Then the Operational Excellence perspective will have positive effects on the User Orientation perspective. Finally, the User Orientation perspective will have positive effects on the Business Contribution perspective. This research tests the validity of these hypothesized casual effects and the sub-hypothesized causal relationships. For the purpose, we used the Partial Least Squares approach to Structural Equation Modeling(or PLS Path Modeling) for analyzing multiple IT BSC CSFs. The PLS path modeling has special abilities that make it more appropriate than other techniques, such as multiple regression and LISREL, when analyzing small sample sizes. Recently the use of PLS path modeling has been gaining interests and use among IS researchers in recent years because of its ability to model latent constructs under conditions of nonormality and with small to medium sample sizes(Chin et al., 2003). The empirical results of our study using PLS path modeling show that the casual effects in IT BSC significantly exist partially in our hypotheses.

An Empirical Study on the Influence of Environmental, Organizational, IS Characteristics on the Organizational Balanced Performance of SCM Systems (환경, 조직, 정보시스템 요인이 공급사슬관리(SCM) 시스템의 균형적 기업 성과(BSC)에 미치는 영향 연구)

  • Moon, Tae-Soo;Kang, Sung-Bae
    • The Journal of Information Systems
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    • v.17 no.2
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    • pp.1-26
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    • 2008
  • SCM is one of the important key issues in Internet-based business environment. This study intends to suggest a research model to measure the influence of environmental, organizational, information technology factors on organizational performance using the four perspectives of balanced scorecard (BSC). 9 independent variables and 4 dependent variables were adopted from existing literature review. 103 companies data were collected by survey. Four hypotheses in this study were generated to analyze the positive relationship of environmental, organizational, information systems on organizational performance with 4 perspectives of BSC. The results of hypothesis testing show as follows. First, organizational performance of learning and growth perspective has a positive influence of IS maturity, process innovation, top management support, use of SCM package, IS interoperability, and objectives sharing. Second organizational performance of infernal process perspective has a positive influence of process innovation, IS interoperability, objectives sharing, top management support, use of SCM package, competitiveness, and IS maturity. Third, organizational performance of customer perspective has a positive influence of IS interoperability, objectives sharing, process innovation, IS maturity, competitiveness, and use of SCM package. Finally, organizational performance of financial perspective has a positive influence of process in innovation, use of SCM package, IS maturity, objectives sharing, IS interoperability, and top management support. The contribution of this study is that it provides a conceptual framework and empirical evidences of the causal relationship between environmental, organizational, IS factor and organizational performance with 4 perspectives of BSC.