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Balanced Scorecard

Measuring and improving corporate information technology through the balanced scorecard
Wim Van Grembergen
Rik Van Bruggen
UFSIA (University of Antwerp)
Prinsstraat 13
B 2000 Antwerp
Belgium

Contents:
Abstract
Introduction
The BSC method
Evaluation of corporate information technology with the BSC
Applying the IT balanced scorecard
IT balanced scorecard practice
Conclusion: efficiency and effectiveness
References
Biographies

Abstract
The balanced scorecard (BSC) is a recently developed strategic management system that should allow businesses to drive their strategies based on measurement and follow-up. These measures are divided into four domains: financial achievements, customer orientation, effectiveness and efficiency of internal processes, and innovation and learning. In this article the BSC is applied to the evaluation of IT projects and the IT function as a whole. Also, the relationship with more traditional IT/IS-evaluation methods like Capital Budgeting and Information Economics is pointed out.

1. Introduction
The evaluation of the IT function, as with the evaluation of IT investments, remains the subject of many academic and business discussions. In IT issues-studies - where managers are asked what they find important in corporate information technology - we can always find this subject under the name "Measurement of IT effectiveness and productivity". In a British study (Galliers et al., 1994), this issue was ranked 9th by IT managers, and in a very recent US publication, (Brancheau et al., 1996) it was ranked 11th. The many publications in scientific journals and the much visited seminars and conferences, also suggest a continued and actual interest.
There are reasons for this extensive public interest: IT is increasingly becoming crucial to achieve organisational and strategic goals. Investments in IT are also never ceasing to grow, and business managers worry about the fact that the benefits of these investments might not be...