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.

Keywords:

• Performance measurement
• IT platform
• Drive from management

Acknowledgments

Sai Nudurupati is a KTP Associate working with Mastclimbers Ltd and at the University of Strathclyde. Sai completed a PhD degree in management implications of IT-supported performance measurement systems by working with several SMEs in Scotland. Sai also did a placement in Daks Simpson Ltd, a textile manufacturing company as a part of his Master's course in Management of Competitive Manufacturing. Sai did his undergraduation in Mechanical, Production and Industrial Engineering and graduated with distinction.

Umit Bititci , MSc, PhD, CEng, MIEE, FIOM, MILT, is a Professor at the University of Strathclyde and also the Director of the Centre for Strategic Manufacturing (CSM). He is the current Chairman of IFIP WG5.7, specializing in Integrated Production Management, and a past Vice Chairman of the Institute of Operations Management. As a management professional, consultant and an academic he has over 20 years, experience working with a wide spectrum of UK, European and Asian companies on Strategy Management, Performance Measurement, Value Development, Supply Chain Management and Business Process Improvement. As the Director of the CSM, he has been responsible for a number of European and UK-funded research and development programmes. To date, Umit has published three edited books and over 100 papers in international journals and conferences.