It Balance Scoreboard

ASSIGNMENT 3

IT Balance Scoreboard

Tran Thi Thanh Binh (201505021)

MBA Fall 2015 (INF 500)

SolBridge International School of Business

IT Balance Scoreboard

The IT Balanced Scoreboard is used as a mean to help the organization capture the total value of IT to the business. It provides the view of where your Information System organization is at a certain point The purpose is to understand the key concerns of all IT governance partners, either directly or indirectly through senior sponsors, into a single framework to guide the new organization. IT Balanced Scoreboard consisting of four new perspectives:

• Corporate Contribution
•  Customer (User) Orientation
•  Operational Excellence
•  Future Orientation

IT Balanced Scoreboard can also be illustrated as following graph :

Graph 1 : IT Balances Scoreboard

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How IT Balanced Scoreboard is used to measure the performance and value of IT projects:

All of four perspectives have to be translated into suitable metrics and measures in order to analyze the current situation. And every evaluation have to be conducted systematically and have to be confronted with objectives that have to be set in advance and with benchmarking figures. It  is very crucial that IT Balanced Scoreboard need to define the cause-and-effect correlations and the relations between the two types of measures, which is performance drivers and outcome measures. Those two kinds of meansures should be combined appropriately. Because for example, the outcome measures, such as programmers’ productivity without performance drivers, do not convey how the outcomes are to be attainted. These cause-and-effective relationship have to be described throughout the whole IT Balanced Scoreboard

More importantly, development of the IT Balanced Scoreboard must be driven by the overall corporate mission, vision and strategy. Therefore, it should be undertaken only after a thorough understanding of the corporation..

The objectives of meansurement are shown in Graph 1. There are some example about performance indicators when meansuring the performance and value of IT project for each perspective as follow:

1. Business Contribution