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How to Use Linear Programming for Information System Performances Optimization

Author

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  • Hell Marko

    (University of Split, Faculty of Economics, Croatia)

  • Dragičević Tea

    (University of Split, Faculty of Economics, Croatia)

Abstract

Background: Organisations nowadays operate in a very dynamic environment, and therefore, their ability of continuously adjusting the strategic plan to the new conditions is a must for achieving their strategic objectives. BSC is a well-known methodology for measuring performances enabling organizations to learn how well they are doing. In this paper, “BSC for IS” will be proposed in order to measure the IS impact on the achievement of organizations’ business goals. Objectives: The objective of this paper is to present the original procedure which is used to enhance the BSC methodology in planning the optimal targets of IS performances value in order to maximize the organization's effectiveness. Methods/Approach: The method used in this paper is the quantitative methodology - linear programming. In the case study, linear programming is used for optimizing organization’s strategic performance. Results: Results are shown on the example of a case study national park. An optimal performance value for the strategic objective has been calculated, as well as an optimal performance value for each DO (derived objective). Results are calculated in Excel, using Solver Add-in. Conclusions: The presentation of methodology through the case study of a national park shows that this methodology, though it requires a high level of formalisation, provides a very transparent performance calculation.

Suggested Citation

  • Hell Marko & Dragičević Tea, 2014. "How to Use Linear Programming for Information System Performances Optimization," Business Systems Research, Sciendo, vol. 5(3), pages 49-66, September.
    • Handle: RePEc:bit:bsrysr:v:5:y:2014:i:3:p:49-66
    DOI: 10.2478/bsrj-2014-0019
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    References listed on IDEAS

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    1. Ross, Jeanne W., 2003. "Creating a Strategic IT Architecture Competency: Learning in Stages," Working papers 4314-03, Massachusetts Institute of Technology (MIT), Sloan School of Management.
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