Business Case in Java Drawer USS Code 39 in Java Business Case

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1 Business Case generate, create code 39 full ascii none with java projects interleaved 25 makes the utility of as awt ANSI/AIM Code 39 set-based ratios (such as . . .

ROI . . .

) questionable as a measure of performance. . .

. There was no relationship between the costs of information management and profitability. .

. There was no relationship between the estimated costs of information technology and profitability . .

.18 Thus, Strassmann s views on what is important regarding determining business effectiveness in general (and from our viewpoint, software process improvement in particular) contrasts markedly from the previously cited references on ROI..

Management Value-added We need to make an addi awt Code39 tional observation about Strassmann s views. Approximately a decade before he published his book on Information Productivity, he wrote a book titled The Business Value of Computers: An Executive s Guide. In his introduction to this book, Strassmann begins as follows:19 There is no relationship between expenses for computers and business profitability.

This book will show you why. You will find that similar computer technologies can lead either to monumental successes or dismal failures. My purpose is to shift your attention from information technology to the executives who manage it.

The difficulty in discovering the business value of computers lies in their managerial applications. Computers on which you run information systems can deliver productivity gains. In isolation, they are just pieces of metal, plastic or glass.

Therefore, my discussions will not deal with the worth of computers. Only Management Value-added, with or without computers, will tell you if computers produce a business payoff. Strassmann discusses how Management Value-added is related to something he calls Return-on-Management, or R-O-M.

He goes on to explain that R-O-M is an absolute measure of [business] performance, in contrast to ROI or ROE [return on equity] (p. 134). The point here is that, by extending Strassmann s logic regarding the utility of conventional measures of business effectiveness such as ROI, we might conclude the following: If conventional measures such as ROI miss the boat regarding determining overall business effectiveness, then it is probably not surprising that such conventional measures miss the boat regarding determining the effectiveness of specific aspects of a business.

In particular, it is probably not surprising that a measure such as ROI misses the boat in helping to determine the effectiveness. Ibid., p. xiv.

P. A. St rassman, The Business Value of Computers: An Executive s Guide (New Cannan, CT: The Information Economics Press, 1990), p.

xvii.. 19 18. 1 Business Case of software process imp jdk barcode 39 rovement activities that are folded into the business of developing software systems.. Balanced Scorecard We mention briefly anot barcode 3 of 9 for Java her approach to assessing business effectiveness that gained prominence in the 1990s the Balanced Scorecard.20 This approach contrasts with Strassmann s approach and the ROI approach previously discussed. It is an additional indicator of the diversity of opinion that exists regarding how to determine whether decisions to improve a business make good business sense.

While the Balanced Scorecard addresses business performance in a context far broader than software process improvement, it has, in fact, been used in a software process improvement context.21 The opening paragraph of the preface to The Balanced Scorecard explains the origins of the approach. This paragraph reads as follows:22 The origins of this book can be traced back to 1990 when the Nolan Norton Institute, the research arm of KPMG, sponsored a one-year multicompany study, Measuring Performance in the Organization of the Future.

The study was motivated by a belief that existing performance-measurement approaches, primarily relying on financial accounting measures, were becoming obsolete. The participants believed that reliance on summary financial-performance measures were hindering organizations abilities to create future economic value. David Norton, CEO of Nolan Norton, served as study leader and Robert Kaplan as an academic consultant [Norton and Kaplan authored the book].

Representatives from a dozen companies manufacturing and service, heavy industry and high-tech met bi-monthly throughout 1990 to develop a new performance-measurement model. In a nutshell, the Balanced Scorecard measures business effectiveness (for the purpose of giving corporate decision makers quantitative insight into how to improve the business) along the following four dimensions (which the book calls perspectives ):23 Financial. The generic measures of this perspective are ROI and economicvalue added (EVA).

. R. S. Kaplan and D.

P. Norton, The Balanced Scorecard: Translating Strategy into Action (Boston, MA: Harvard Business School Press, 1996). 21 P.

Ferguson, G. Leman, P. Perini, S.

Renner, and G. Seshagiri, Software Process Improvement Works! Advanced Information Services Inc., Software Engineering Institute and Carnegie Mellon University Technical Report CMU/SEI-99-TR-027 (November 1999), Appendix A ( The AIS Approach to the Balanced Scorecard ).

22 R. S. Kaplan and D.

P. Norton, The Balanced Scorecard: Translating Strategy into Action (Boston, MA: Harvard Business School Press, 1996), p. vii.

23 Adapted from R. S. Kaplan and D.

P. Norton, The Balanced Scorecard: Translating Strategy into Action (Boston, MA: Harvard Business School Press, 1996), p. 44.

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