An Introduction to the Green IT Balanced Scorecard as a Strategic IT Management System from An Environmental Perspective

Transcription

1 An Introduction to the Green IT Balanced Scorecard as a Strategic IT Management System from An Environmental Perspective Authors: Yulia Wati; Chulmo Koo Chosun University South Korea

2 Go green??? Source: The Wall Street Journal

3 What is the bottom line? Source: New York Times

4 I. Introduction The Strategic Balanced Scorecard (Kaplan and Norton, 1992) An organization s mission and strategy Performance Measurement 1. Customer 2. Internal Business Process 3. Learning and Growth 4. Financial Perspective

5 I. Introduction Background: IT Balanced Scorecard + Environmental Aspect The environmental concern are only incompletely reflected in economic transactions Motivation: In this paper, we have incorporated the environmental aspects of technology into scorecard measurement.

6 II. Literature Review The Development of IT-Balanced Scorecard

7 II. Literature Review The Development of IT-Balanced Scorecard

8 III. An Introduction to Green IT BSC The drivers of IT Balanced Scorecard: (1) demonstration of IT value; (2) IT governance; and (3) cost cutting and efficiency The adoption of Green IT Scorecard differs from IT adoption approaches: (1) The ethical concern (2) The possibility of Rebound Effect (3) The relationship between long-term resources and capabilities

9 III. An Introduction to Green IT BSC Green IT Balanced Scorecard is defined as a nomological management tool to systematically align IT strategy with business strategy from environmental sustainability perspective in order to achieve competitive advantage Prerequisites: the companies have committed to environmental responsibility. 3 Green IT BSC Objectives: (1) to measure technology performance by effectively integrating environmental aspects, (2) to investigate both tangible and intangible assets of Green IT investment, and (3) to align IT performance and business performance, and transform the results into competitive advantage.

10 IV. Model Validity A balanced scorecard must contain the appropriate mixture of outcome measures (lagging indicators) and performance drivers (leading indicators). The scorecard should strongly emphasize financial outcomes. The scorecard should include measurements critical to the success of the unit s established strategy. The measures that appear on the scorecard should be integrated thoroughly into the cause-and-effect relationship (Kaplan and Norton, 2002). The new theory should fit in with the preexisting and apparently related theories (Connectivity dimension and transformational dimension)

11 IV. Model Validity 2 Basic Pillars of Green IT BSC: Environmental Aspect of Technology The objective of environmental technology investment is to achieve the Win-Win Solution. Green IT is related to any computer-based tools (hardware, software, equipments), mechanisms, structures, guidelines, and methodologies as the results of environmental breakthrough at each stage of the technology s life-cycle, including use, design, manufacture, and reuse, refurbish, and disposal of technology in environmentally sound manners (to deliver sustainable values for business, environment, and society, and at the same time, improve the quality of life).

12 IV. Model Validity 2 Basic Pillars of Green IT BSC: Green IT and Competitive Advantages

13 V. Green IT BSC 3 core questions: (1) How can top management get their investment on environmental technologies to return some business value to them? (2) How does top management ensure that investments in environmental technologies are the right decision, not only to comply with government regulations, but also to achieve and transform those investments into competitive advantage? (3) How does top management control the firm s environmental technology investments?

14 V. Green IT BSC Comparison of IT BSC and Green IT BSC

15 V. Green IT BSC

16 V. Green IT BSC The Structure of sustainability Scorecard

17 V. Green IT BSC Process Perspective (Life cycle approach) Stages of the product life cycle-australian Government: Department of the Environment and Heritage (Adapted from UNEP [40])

18 V. Green IT BSC Process Perspective (Life cycle approach)

19 Stakeholder Perspective V. Green IT BSC

20 Stakeholder Perspective V. Green IT BSC

21 Financial Perspective V. Green IT BSC

22 Future Orientation V. Green IT BSC

23 VI. Cause and Effect Relationship

24 VII. Solutions and Recommendation Green IT BSC is a technique that can only prove successful when the business and the IT work together and collaborate in the scorecard measurement process In relation to the first recommendation, it is necessary to identify the key stakeholders necessary for success in sustainable environmental and business. It is also recommended that companies incorporate this strategic tool into other environmental management systems such as ISO14000 and LCA. We suggest IT management team to focus on implementing Green IT BSC in every investment of environmental technology. A broader perception throughout the entirety of management. Top management should be familiar with green business strategies and practices

25 IX. Future Research Direction Model validation in the real company. Despite the fact that we generate the structure of Green IT BSC and the classification metrics could likely be enhanced in the future The weights of the metrics might be affected to some degree by the companies primary orientation and initial business type. This study can be viewed as an advanced step in the development of IT strategic management tools from environmental perspective

26 X. Conclusion The objectives of the Green IT balanced scorecard are to evaluate technology performance by integrating environmental aspects effectively, to investigate both the tangible and intangible assets of Green IT investment, and to align IT performance and business performance and transform the results into competitive advantage. This integration concept offers a new possibility for both practitioners and researchers to translate their sustainable business strategies into Green IT actions.

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