Page 181 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Fundamentals of Project Management

Notes The need for measuring E-business performance is confirmed by a study conducted by the
consulting firm Accenture.
In the 1990s, Kaplan and Norton developed the balanced scorecard.

Their idea is that the evaluation of a company should not be restricted to the traditional
financial performance measures but should be supplemented with measures concerning
customer satisfaction, internal processes and the ability to innovate.
The costs that go with the development, implementation and the maintenance of an
E-business project can be very high.

The Business Contribution perspective captures the business value created from the
E-business investments.

The ultimate goal of E-business projects, as any other IT project, is to satisfy the Board of
Directors and consequently the shareholders.
The business value of E-business projects shows how the E-business projects are affecting
the performance of the whole business

Customer satisfaction is the feeling that a product or service meets the customer expectations
and determines whether a customer will repeat his or her web purchases or not.

10.8 Keywords

Balance Scorecard: In the 1990s, Kaplan and Norton developed the balanced scorecard. Their
idea is that the evaluation of a company should not be restricted to the traditional financial
performance measures but should be supplemented with measures concerning customer
satisfaction, internal processes and the ability to innovate.
Customer Satisfaction: Customer satisfaction is the feeling that a product or service meets the
customer expectations and determines whether a customer will repeat his or her web purchases
or not.

E-business Project: An E-business project represents a capital investment that entails expenses as
well as revenues.

10.9 Review Questions

1. Describe the E-business projects.

2. Explain the balance scorecard.
3. Describe the E-business balance scorecard.
4. What do you mean by measures for business contribution?
5. Explain the compliance with the budget.

6. Discuss the measures for customer orientation.
Answers: Self Assessment

1. E-business 2. Kaplan
3. Four 4. Scorecard
5. True 6. True

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