04 Performance Measurement IT Governance

04 Performance Measurement IT Governance

1. PERFORMANCE MEASUREMENT PERTEMUAN 04

2. Grembergen & Haes (2008)

3. IT BALANCED SCORECARD An important part in the implementation process of strategic alignment is the performance measurement of IT and of IT related to the business. Kaplan and Norton (1992) introduced the balanced scorecard (BSC) as performance measurement tool at enterprise level. Their fundamental premise is that the evaluation of a firm should not be restricted to a traditional (i.e., financial) evaluation but it should be supplemented with measures concerning customer satisfaction, internal processes, and the ability to innovate. Grembergen & Haes (2015)

4. IT BALANCED SCORECARD For each of the four perspectives of the business BSC, consist of three-layered structure: 1. Mission (e.g., to become the customers’ most preferred supplier) 2. Objectives (e.g., to provide the customers with new products) 3. Measures (e.g., percentage of turnover generated by new products) Grembergen & Haes (2015)

5. IT BALANCED SCORECARD Corporate contribution Control of IT Expenses Percentage over or under IT budget Business Value of new IT Projects Financial evaluation based on ROI, NPV, IRR, PB User Orientation Partnership with users Index of user involvement in developing new applications User Satisfaction Index of user satisfaction Operational excellence Efficient Software Developments Percentage of projects performed within SLA Efficient Computer Operations Percentage unavailability of network Future orientation Training and education of staff s education budget as a % of total IT budget Research into emerging technologies % of budget spent on IT research Grembergen & Haes (2015)

6. EXAMPLE OF IT BALANCED SCORECARD

7. PERFORMANCE MEASUREMENT & RISK MANAGEMENT Stakeholder value driver menggerakkan : IT strategic alignment , IT delivery value , risk management , dan performance measurement . IT strategic alignment dan performance measurement dapat diposisikan sebagai penggerak bagi IT value delivery dan risk management . IT value delivery dan risk management dapat diposisikan sebagai hasil . IT value delivery → creation of business value. Risk management → preservation of business value. Grembergen (19:2004)

8. PERFORMANCE MEASUREMENT & RISK MANAGEMENT Balanced Scorecard (BSC) dapat digunakan pada komponen performance measurement . Manajemen risiko fokus pada pengamanan aset TI dan penanggulangan bencana . Risiko dapat dimitigasi ( dikurangi / dihilangkan ), ditransfer ( ke kolega ), dan diterima ( tanpa ditanggulangi ). Grembergen (19:2004)

9. REFERENSI Grembergen , W. V. & Haes , S. D. 2008. Implementing Information Technology Governance: Models, Practices, and Cases. New York: IGI Publishing. Grembergen , W. V. 2004. Strategies for Information Technology Governance. London: Idea Group Publishing. Haes , S.D. & Grembergen , W.V. 2015. Enterprise Governance of Information Technology: Achieving Alignment and Value, Featuring COBIT 5. New York: Springer.