Study on the performance of IT service division based on balanced scorecard and DEA

The study on the evaluation theories and methods of performance of IT service division has been an issue of great importance. in this paper, we present the evaluation method and model for determining IT value and organizational effectiveness, and establish an IT balanced Scorecard and the model of performance evaluation. The performance of IT service division(ITSD) is defined as the contribution of IT service division to organization performance in this paper. The Balanced Scorecard(BSC), a framework originally developed in order to structure the business performance measurement, can also be used for the evaluation of ITSD performance. The paper establishes an evaluation method with the BSC, and measure the overall performance of IT service division with DEA from the angle of input and output, then gives an empirical study. The paper chooses five IT service divisions of different commercial banks and makes comparison among them with the model and makes analysis on the evaluation results, and gives some instructions on the limits of the model. The DEA results provide meaningful insights on ways to improve ITSD performance.