DEVELOPMENT OF PERFORMANCE MEASUREMENT METHOD AND METRICS IN BANKING SECTOR USING IT BALANCED SCORECARD AND COBIT

The importance of information technology (IT) role in supporting business process in
banking industry can be seen from the investment made by the industry, from front office
to back office aplication system, hardware, software and the entire information system
that cost million of dollars a year[10,11,12].
But from a survey conducted[2] stated that only 5% from all huge scale IT investment
made are successfully deliver the business value of IT. This phenomena is known as ”IT
Productivity Paradox”[4,7] or ”IT Black Hole” [6] where IT investment made by company
or organzation failed to realize the value that IT promised to business.
To make sure that the IT investment made is alligned with the business decision,
measurement have to be made to the implementation of IT within the organization,
wether it is tangible or intangible benefit to organization’s business side. This research
uses IT Balanced Scorecard and COBIT as tools for measurement conducted for the
implementation of IT in banking sector. As the result, some outcome measures and
performance indicators are defined as measures to value the IT invesment made and
grouped in the four IT balanced scorecard perspectives (Corporate Contribution, User,
Operational Excellence, Future Orientation). Table below shows the metrics defined as
the results of this research.