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Measures of the Business Value of IT

Measures of the Business Value of IT
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Author(s): Han van der Zee (University of Tilburg, Netherlands)
 Copyright: 2002
 Pages: 20
 Source title: Measuring the Value of Information Technology
Source Author(s)/Editor(s): Ing. Han T.M. van der Zee
 DOI: 10.4018/978-1-930708-08-2.ch004
 ISBN13: 9781930708082
ISBN10: 1930708084
EISBN13: 9781591400103

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Abstract

In any business a “dashboard” of vital performance indicators is needed to gauge how the company is faring. Such a dashboard, consisting of the appropriate measures to indicate strengths and weaknesses, provides a guide for management and forms the core of planning and control. A dashboard of performance indicators allows management to valuate the contribution of several factors that impact the overall performance of the organization. One of these factors is the application of IT. To valuate IT, a dashboard of relevant performance indicators for IT must be developed. The BtripleE framework offers the structure of the dashboard and identifies the distinct but interdependent levels of Business value of IT, Effectiveness of IT, and Effectiveness and Efficiency of IT supply. This chapter aims at developing the appropriate performance indicators (the gauges) at the first level within this structure: measures of the business value of IT.

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