STRATEGIC PERFORMANCE MEASUREMENT SYSTEM

STRATEGIC PERFORMANCE MEASUREMENT SYSTEM

1. plan, measure and control their perfomance

   • decisions, resources and activities can be better aligned with business strategies
     • achieve desired results
     • create shareholder value

2. interdisciplinary in information systems, accounting and management

   • complex mix of technological aspects, information and control systems and organizational variables

3. affected by information technology variables

   • technical characteristics: Internet usage in the SPMS and the use of tools such as ERPs
   • technical outcomes: SPMS effectiveness and usefulness of IT tools
   • affected by systems variables: SPMS information quality and system design purposes

4. Organizational Information Processing Theory (OIPT)

   • organizational structure: impede or facilitate information flow
   • management decision-making style: collaborative versus command-and control decision-making styles
   • various levels of uncertainty: the difference between the amount of information available and the amount of information required to perform the task at the desired level of performance

5. designed to present managers with financial and non-financial measures covering different perspectives which, in combination, provide a way of translating strategy into a coherent set of performance measures

   • Financial measures: short-term impact of managerial decisions in revenue growth, asset utilization, and cash flows etc
   • non-financial measures: variables that are likely to influence future financial performance, such as customer service and quality products

6. methodology: proposing and testing a model that integrates IT, systems and organizational variables from the information systems, accounting and management lieeratures

7. organizational variables

   • scope of operations: regional, national, international, global
   • organizational size
   • velocity and predictability of change facing an organization
   • different levels of information requirements to be satisfied by the SPMS

8. LIMITATION: to achieve SPMS effectiveness, the system must be designed to ensure that it fulfills the purposes intended by the organization

9. ARGUMENT: small business is one of the target in the study but IT tool is set one of the variable in the study

   • will small business invest in effective IT tools?