Searching for e‑Business Performance Measurement Systems

Abstract

Organisations of all kinds continue to expand their involvement in e‑business. This requires considerable financial investment in IT, in processes and in people. It might be expected that there would be a concern to ensure that performance measurement systems are capable of justifying these investments, and of evaluating their worth once implemented. The paper describes research aimed at determining the exact nature of such e‑business performance measurement systems and the benefits that accrue from their use. The research uses a case study methodology to report the performance measurement practices of twelve potentially exemplar organisations that have made efforts to develop distinctive performance metrics for e‑business. Qualitative data was collected from interviews with key informants from each organisation. Additional data came from company documents. The cases reveal a variety of approaches to e‑business performance measurement, with no common framework apparent. Whilst there is considerable disparity in the level of success achieved in developing suitable measures, there is evidence of a common concern to link e‑business performance to organisational objectives. However, there is a general reluctance to embark on major overhauls of existing performance measurement systems. The paper discusses the possible reasons for this and the implications for future developments in e‑business performance measurement practices.