Environmental Engineering Reference
In-Depth Information
Moreover, Martinsons et al. (1999) proposed
four perspectives: (1) user orientation with a mis-
sion to deliver value-added products and services
to end users, (2) business value with a mission to
contribute to the value of the business, (3) inter-
nal process with a mission to deliver IT products
and services in an efficient and effective manner,
and (4) future readiness with a mission to deliver
continuous improvement and prepare for future
challenges. They proposed three key balanced
scorecard principles: cause and effect relation-
ship, sufficient performance drivers, and linkage
to financial measures. They also demonstrated
that cause-and-effect relationships can involve
one or more of those four perspectives. Rosemann
and Wiese (1999) adopted a system-level balance
scorecard approach. They employed a modified
balanced scorecard approach to evaluate the
implementation of ERP software and to assess
the continuous operation of the ERP installation.
Additionally, Brewton (2003) provided an illustra-
tion of a balanced CRM scorecard. He projected
four perspectives: financial, customer, process,
and staff. Fairchild (2002) attempted to devise
a Balanced Knowledge Management Scorecard
by viewing the scorecard from two different
perspectives. The first approach involved the
Knowledge Centric Organizational perspective,
and the second adopted a resource management-
based approach. The details of the development
of IT balanced scorecards during this decade can
be observed in Table 1.
The drivers of IT BSC are divided into three
categories: (1) demonstration of IT value: IT BSC
assist to demonstrate the IT value by providing a
straightforward method of reporting on a range
of IT metrics, enabling the value of IT to be
quantified for the business stakeholders; (2) IT
governance: A structure of relationships and pro-
cesses to direct and control the enterprise in order
to achieve the enterprise's goals by adding value
while balancing risk versus return over IT and its
processes (COBIT, 2000); and (3) cost cutting
track both the efficiency of IT activities and the
efficacy of contributions to organizational goals
(Cram, 2007). According to the study of Epstein
and Rejc (2005), an IT performance measurement
and management system must necessarily focus
on the causal relationships and linkages within
the organization and the actions managers can
take to improve both customer and corporate
profitability and increase value. In this paper, we
adopted Van Grembergen's scorecard since this
model integrates the outcome measures and per-
formance drivers systematically and establishes
the cause and effect relationship fairly effec-
tively.
SO, WHAT IS THE GREEN IT
BALANCED SCORECARD,
AND WHY?
Currently, many organizations have an opportu-
nity to tackle with sustainable development while
improving their productivity, reducing costs, and
enhancing benefits. However, their lack of envi-
ronmental skills has resulted in many forms of
waste, unused resources, energy inefficiency, and
pollution (Watson et al., 2010). Although many
companies have previously implemented specific
environmental or social management systems in
the past decade, as can be seen in Table 1 (p.2-3),
these systems have only rarely been integrated into
the general management system of the firm. As a
consequence, in many cases, these systems are not
linked to the economic contributions of the envi-
ronmental management system (Laurinkevičiūtė,
2008). In order to address this issue, several
authors have previously suggested applying the
balanced scorecard approach to sustainability
(e.g. Bieker, 2003; Elkington 1997; Figge et al. ,
2002; Johnson, 1998) in order to ascertain that
environmental concerns are thoroughly considered
in the decisions and activities of the other sectors
(Laurinkevičiūtė, 2008).
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