Balanced scorecard for aligning it strategy with business strategy in an energy company

• Main Author: Rachmadianto, Faisal
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/16002/1/P56.pdf; http://repo.uum.edu.my/16002/; http://stmlportal.net/ictom04/TOC.html

In this paper, we look at the use of the Balanced Scorecard and how it can be used to align IT strategy with business strategy in an energy company called ABC.We can use Henderson and Venkatraman research on Strategic Alignment Model and link it with Balanced Scorecard defined by Kaplan and Norton and different variants such as IT scorecard.This paper presents a case study in analyzing alignment between information technology department and business at an energy company in Indonesia.The design of IT department BSC serving an energy company will be described and discussed. IT department is categorized as shared supporting group in this company.ABC Business Unit is one of biggest energy producer in Indonesia and IT department is playing an important role to achieve business strategy.We related Balanced Scorecard with their current strategies, objectives, targets and measurements on both the business and IT sides of the company to see if they have alignment between business and IT.The results of the case study analysis consist of a review against strategic alignment model and against a Balanced Scorecard.Future alignment research could take other method than balanced scorecard to analyze alignment between IT and business.In the future, it can also consider other energy company outside Indonesia so that it can cover a wider range of industry types, especially in energy industry