A performance evaluation model for information systems using the balanced scorecard and the value chain: A case study

During the last decade many enterprises spent a huge amount of money for investment on Information Technology (IT) & Information System (IS) to attain competitive advantage and to maximize their businesss performance by satisfying the various requirements of customers. Under such circumstances, methodologies for evaluating IT impact on business performance are very important issues for strategic decision making on investment. In this study, we propose a performance evaluation model that adopts the concept of the Balanced Scorecard (BSC) and the Value Chain to analyze the financial impact and non-financial impact of IT & IS at each critical work area. This model combines the 4 evaluation areas from BSC and 6 critical work areas from Value Chain and measures the Key Performance Indicator (KPI) and the effect of KPI. Also, we present a case study in which the evaluation model has been conducted on a major manufacturing company. Finally, we address some important notes to improve the IT & IS performances in the real-world.