How to Use Linear Programming for Information System Performances Optimization

Open access

Abstract

Background: Organisations nowadays operate in a very dynamic environment, and therefore, their ability of continuously adjusting the strategic plan to the new conditions is a must for achieving their strategic objectives. BSC is a well-known methodology for measuring performances enabling organizations to learn how well they are doing. In this paper, “BSC for IS” will be proposed in order to measure the IS impact on the achievement of organizations’ business goals. Objectives: The objective of this paper is to present the original procedure which is used to enhance the BSC methodology in planning the optimal targets of IS performances value in order to maximize the organization's effectiveness. Methods/Approach: The method used in this paper is the quantitative methodology - linear programming. In the case study, linear programming is used for optimizing organization’s strategic performance. Results: Results are shown on the example of a case study national park. An optimal performance value for the strategic objective has been calculated, as well as an optimal performance value for each DO (derived objective). Results are calculated in Excel, using Solver Add-in. Conclusions: The presentation of methodology through the case study of a national park shows that this methodology, though it requires a high level of formalisation, provides a very transparent performance calculation.

References

  • 1. Brumec, J. (1996), “A contribution to IS general taxonomy”, Proceedings of the 7th International Conference Information Systems 96, Varaždin, Croatia, pp. 95.-105.

  • 2. Brumec, J. (1998), “Strategic Planning of IS”, Journal of Information and Organisational Sciences, Vol. 23, No. 2, pp.11.-26.

  • 3. Brumec, J. D. (1999), “The assessment of IS complexity based on genetic taxonomy, Evolution and Challenges in System Development”, New York: Kluwer Academic_Plenum Publ.

  • 4. Brumec, J. V. (1998), “Structured and object-oriented methods in a complex IS”, Journal of Information and Organisational Sciences, Vol. 22, No. 2, pp. 45-59.

  • 5. Brumec, J. V. (2002), “Strategic Planning of Information Systems (SPIS) - A Survey of Methodology”, CIT, Vol. 10, No. 3, pp. 225.-232.

  • 6. De Waal, A. (2006), “Strategic Performance Management: A Managerial and Behavioural Approach”, London: Palgrave Macmillan.

  • 7. Dumičić, K., Spremić, M., Pejić Bach, M. (2002), “Adding Value with Information Technology Investments: Survey Research on Croatian Business Perspectives”, Zagreb International Review of Economics & Business, Volume 5, No.1, pp.79-100.

  • 8. Dumičić, K., Čeh Časni, A., Palić, I. (2014), “Internet Purchases in European Union Countries: Multiple Linear Regression Approach”, World Academy of Science, Engineering and Technology: International Journal of Social, Human Science and Engineering, Vol. 8, No. 3, 2014, pp. 193-199

  • 9. Hell, M., Vidačić, S., & Garača, Ž. (2009), “Methodological Approach to Strategic Performance Optimization”, Management, Vol 2, pp.21.-42.

  • 10. Martinsons, M. D. (1999). “The Balanced Scorecard: A foundation form the Strategic Management of Information Systems”, Decision Support System, Vol. 25, No. 1, pp.71-88.

  • 11. Roest, P. (1997), “The golden rules for implementing the balanced business scorecard”, Information Management & Computer Security, Vol. 5, No. 5, pp.163.-165.

  • 12. Ross, J. W. (2003), Creating a Strategic IT Architecture Competency: Learning in Stages. MIT Sloan of Management Working Paper, available at: http://dspace.mit.edu/handle/1721.1/3526, [Accessed 15, February, 2014]

  • 13. Sikic, Z. (2007), Plan upravljanja Nacionalnog parka Plitvička jezera (Management Plan for National Park Plitvička jezera). Plitvička jezera, Hrvatska: Plitvička jezera

Business Systems Research Journal

The Journal of Society for Advancing Innovation and Research in Economy

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 29 29 29
PDF Downloads 8 8 8