When relate IT to cost, IT always relate to High Cost, especially in initial stage. We need to measure the value of the IT investment made by company related to company performance and metrics, especially understandable by business people.
We are IT people talk about technical performance, and Business people understand about money, reveneu, profit, and other financial measure. So there is gap between IT and business.
Coma the Balance Scorecard which can be use to communicate the IT value provided to business and relate its output with company financial performance like cost Vs revenue in a balance sheet.
Balance scorecard have 4 perspective in the creation so the balance perspective provided within the scorecard. This is usefull to get a balance perspective with IT or non IT performance measurement.
4 basic question from many perspective in Balance Scorecard :
- How do customers see us? (Customers perspective)
- What must we excel at? (Internal perspective)
- Can we continue to improve and add value? (Innovation and learning perspective)
- How do we look to shareholders? (Financial perspective)
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| Balance Scorecard Perspective |
Some example here is provided which relating IT cost with Financial performance indicator :
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| Relating Cost to the Balance Socreboard of an airline Example |
