Balanced Scorecard and IT Flashcards
What are the common problems with IT investments?
prove little or no ROI
What is a balanced scorecard?
widely used tool that can help companies link their IT investments to strategic performance
What is a Balanced Scorecard use for?
1) strategic planning and management system
2) Used extensively in business and industry, government, and nonprofit organization world wide
3) Aligns business activities to the vision and strategy of the organization
5) Improves internal and external communications
6) Monitors organization performance against strategic goals
What are the four perspective of Balanced Scorecard?
1) Financial perspective
2) Business Process Perspective
3) Customer Perspective
4) Learning and Growth Perspective
What does Business process perspective do for financial perspective/
lower costs
What does Learning and Growth Perspective do for Business process Perspective?
Improve Processes
What doe Customer perspective do for financial perspectives]?
Grow revenue
What does Business process perspective do for customer perspective?
Enhance customer value
What is Strategic positioning
helps companies to obtain a relative advantage over it competition
What are the components of Strategic positioning?
1) Differentiation
a) Customer intimacy
b) Product/Technology leadership
2) Cost Leadership
a) Operational excellence
What is learning and growth Perspective?
describes a firm’s objectives of improvements in tangible and intangible infrastructure.
What are the types of Capital in Learning and growth perspectives?
1) Human capital
2) information capital
3) organization capital
What are the four types of Process perspectives?
1) Operations Management
2) Customer Management
3) Innovation process
4) Regulatory and social processes
What is a common customer perspective?
1) Value Proposition A)Product attributes B) service Attributes C) Brand image 2) Creates customer satisfaction, retention, and new customer acquisition
What are the four types of Product attributes?
1) Price
2) Quality
3) Availability
4) Function
What is Financial Perspective?
confirms the success of the firm’s investments and its ability to deliver value to customers
What is Financial Perspective’s overall objective?
Shareholder value
What is Financial Perspective’s other objectives ( other than shareholder value)?
1) Long term growth
2) Productivity
What is a strategy map?
one page representation of the firm’s priorities that shows the cause and effect linkages among strategic priorities.
It also allows organization to assess and prioritize gaps between current and desired performance levels
What is the nature of information technology investments?
Function IT ( Performs a single function)
Network IT ( allows people to communicate with one another)
Enterprise IT ( restructures interactions within the organization as well as with external partners)
What is information capital examples?
1) Computing hardware
2) Infrastructure
3) Applications
4) Employees’ abilities to use the technology effectively
