Strategy Mapping : The Intended Effects of an Investment in Information Systems - A Case Study on Alpha AB

University essay from Högskolan i Jönköping/IHH, Företagsekonomi

Abstract:

Problem

Deciding where to spend the information system investment budget with respect to strategic priorities is important for companies, but it is far from every company that does it. There is no consesus in the literature on how information system investment decisions should be assessed. This case study is conducted on Alpha AB. The company consists of several departments that each require different kind of information to support, improve and facilitate their area of operation. They are in the process of deciding where to spend their investment budgets.

Purpose

The Purpose of this thesis is to identify the processes that will be improved by a new information system and display how it affects the overall goal of Alpha AB, using the strategy map and the balanced scorecard. This will enable decision makers to make better decisions regarding information system investments.

Theoretical Framework

In order to fulfill the purpose have a review of how information systems improve companies been done, furthermore have investment issues been discussed. In order to display the effects of the intended investment will the strategy map be used, the balanced scorecard will be introduced for performance measurement.

Empirical Findings

The empirical findings are collected from four high level employees at Alpha AB. Through unstructured and semi-structured interviews have information about the company, its goals, customers, the internal processes and their hopes for the new information system been collected.

Analysis

The empirical findings have been compiled on the strategy map with the intension to show the causal relationship that the intended investment will have on the company. In order to quantify the targets on which the investment is supposed to cause its effects, have the empirical findings also been compiled on to a balanced scorecard

Conclusion

The strategy map and the balanced scorecard display the intended effects that the investment causes. The decision makers at Alpha AB can with a holistic view follow the causal relationship from the expectations of the investment and see  which of them will be a priority to invest in.

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