It is necessary for you to implement the right strategies to stay ahead of the competition. Companies use different strategies to reach this goal. One is to follow the balance scorecard strategy.
The information technology (IT) department in most corporations today faces a strange phenomenon: While investments in IT have been steadily growing in the last two decades, business sponsors often have a question: Are the benefits/returns from the IT investments as high as initially expected?
As a business discipline, IT has become crucial to most organizations for achieving their business goals as well as differentiating the company from the competition. Achieving market leadership is increasingly a function of getting the right data inputs from the field, interpreting the raw data and passing this value-added information to the strategic decision-makers. The quality of business intelligence decides the fate of many organizations.
If companies are to survive and prosper in today’s competitive environment, the corporate IT portfolio-planning function needs to plan IT initiatives strategically. They must use performance measures that are derived from the overall strategies of their business.
Therefore the IT department or arm of a business absolutely needs the balanced scorecard.
In a future article we shall examine how to implement the balanced scorecard in the IT department.