The application of the factor analysis method to determine the performance of IT implementation in companies based on the IT balanced scorecard measurement method

Abstract

The purpose of this paper is to provide an overview of how to measure the performance of information technology implementation in a company by using factor analysis and regression analysis methods. From the resulting mathematical model, it can be used to make predictions and make strategies in the implementation of information technology in the future. The concept was developed from the IT Balanced Scorecard (IT BSC) theory which was developed by constructing each of the existing perspectives to obtain indicators which are then used as a research instrument in the form of a questionnaire. Data were collected by distributing questionnaires to 75 respondents, but only 70 questionnaires were complete and valid for this study. The data obtained were then analyzed using the factor analysis method. The analysis shows that there are four factors that affect the performance of IT implementation, namely: IT Competency, IT Service Capability, Business Continuity, and IT improvement.