Implementation and impact of IT-supported performance measurement systems

Abstract

There is little solid research evidence that illustrates the implementation and impacts of performance measurement systems. From a structured pilot case study, it was demonstrated that appropriately designed performance measurement systems with appropriate IT support, driven by senior management commitment, had delivered positive impact on management and business when implemented. Based on these results, a hypothesis was constructed on several enabling factors (technical and people factors), which ensure the appropriateness of the IT support and its use for performance measurement and hence assess the impact of IT-supported performance measurement systems (IT-PMS). The hypothesis was tested in three other companies using action research as the main methodology. From the results obtained, it was found that IT-PMS would bring improvements in identifying business weaknesses, facilitating managers with proactive decision-making, facilitating continuous improvement, increasing transparency and visibility and increasing positive behaviour. The paper also includes the factors that are causing this impact and establishes the relationship between the IT-PMS implementation, factors and impact.