IT BSC: A Comprehensive framework for IT Evaluation, IT Management, and IT Governance Mohammad Ibraheem Ahmad MSc, MAIS, Alexandria University Alexandria, Egypt Mohammad_ibraheem_77@yahoo.com Abstract—This Paper aims to review extended use of Balanced Scorecard (BSC) in Information Technology field. Since early introduction of BSC in IT field, it was used for years as a measurement tool. After maturity of IT BSC as an IT performance evaluation framework, it was considered as strategic management tool. Recently, IT BSC has been developed to become IT Governance tool. The contribution of this paper is to put the fragmented frameworks of IT Balanced Scorecard into a comprehensive framework of IT Evaluation, IT Management, and IT Governance. Keywords-IT BSC; IT Evaluation; IT Management BSC; IT Governance BSC; Green IT BSC. I. INTRODUCTION While organizations sought to meet the growing needs of information, especially in the modern business environment, which is characterized by risk and uncertainty, they adopt information technology to enable them to meet their information needs. Nowadays, the information technology is not a competitive advantage in organization anymore [1]. The use of IT has the potential to be the major driver of economic wealth in the 21 st century [2]. Recent surveys indicate that issues such as ‗measuring the value of IT‘ and ‗evaluating IS performance‘ are of great importance to managers [3]. In spite of this, it is difficult to ascertain the benefits of developing software applications [4]. The nature and characteristics of IT projects investments impose methods of evaluation and criteria that suit this special nature [5], [6]. In this regard, there was a variety of information technology evaluation models. Some of these models used classical economic analysis (This includes productivity models, economic welfare analysis) to evaluate information technology. Others used profitability analysis to measure improvement in performance and profitability as a result of the information technology use. Others relied on strategic analysis and market based models to evaluate information technology. Recently, a trend of IT evaluation models, which relies on risk and portfolio management, emerges. A widely acceptable framework is the Balanced Scorecard (BSC), was introduced by Kaplan and Norton in 1990s as a framework of performance evaluation. Since early introduction of BSC in IT field, it was used as a framework of IT Evaluation. Later on, it was used as a framework of IT Management, and IT Governance. This paper is organized as follows. Section II shows an overview of IT Investments. Section III shows an overview of BSC. Section IV reviews theoretical foundation of IT BSC. Section V shows IT BSC development. Section VI reviews IT BSC as an IT evaluation framework. Section VII reviews IT BSC as an IT Management framework. Section VIII reviews IT BSC as an IT Governance framework. Finally, Section IX shows Conclusions. II. AN OVERVIEW OF IT INVESTMENT EVALUATION Many methods and techniques have been suggested over the years to evaluate IT and IS investments. Traditional methods focus on well-known financial measures [1], [3], such as the Return On Investment (ROI) (in which total lifecycle of investment is taken into account. While time value of money is not taken into consideration, Risk can be entered into the appraisal to a certain extent [7]), Net Present Value (NPV) (which calculates the present value of the investment‘s money flows, using a discount rate [7]), the Internal Rate of Return (IRR), (which takes the time value of money into consideration by introducing a discount factor, but risks are not accounted for in mutual exclusive investment projects [7]), and the Payback Period (PP) (in which Projects are judged on the period needed to compensate the initial investment [7]). On the other hand, methods derived from other disciplines were used to evaluate IT Investments. These include classical economic models like productivity models (which measure IT productivity) [8], [9], [10], and economic welfare analysis (which measure consumer welfare; value added to consumer as a result of information technology use) [8], [11]. Others used profitability analysis to measure improvement in performance and profitability as a result of the information technology use [8], [12], [13]. Others relied on strategic analysis [14], and market based models [15], to evaluate information technology. Emerging trends in information technology assessment include Real Options Approach [16], [17], Portfolio Management Approaches and Value at Risk [18], [19], as well as the Balanced Scorecard (IT BSC). It has been suggested that it may be appropriate to evaluate IT using Balanced Scorecard (BSC) [3]. This arguments stem from the fundamental assumption that an organizations‘ primary objective is that of maximizing profit/shareholders wealth [3]. This assumption has led to an emphasis on financial appraisal techniques that are consistent with these objectives [7]. Therefore; financial scales must be complemented with In proceedings of Third International Conference on ICT in our lives 2013 ―Information Systems Serving the Community” (ISSN 2314-8942), Information Systems and Computer Science Department, Faculty of Commerce, Alexandria University, Alexandria, Egypt, December 21-23, 2013.