Application of information technology on performance measurement in service industries

The research on application of information technology (IT) on performance measurement in service companies was conducted. Performance measurement plays an important role in organizations, providing information on the achievement or otherwise of an organization’s competitive strategy, and linking that strategy to operations. The use of IT in business process has been increasing and has made a revolution in industries worldwide. However, in developing countries like Tanzania, the application of information systems in performance measurement is still primitive, compared to what is out there for other areas. This study examined the application of information technology and various concepts regarding the performance measurement in service companies, and how that measurement could be done. It was realized that the application of IT on performance measurement is proving to be essential because it helps in three primary ways: in collecting performance data, in processing or analyzing them, and in disseminating them to decision makers. Information technology can support performance measurement in delivering a good number of services. It was found that the application of IT on performance measurement has moderately enhanced quality awareness, improving service quality, and reducing quality related costs. The application of IT in Tanzania is reflected by three main observations: the number of performance measures used by the industry, the variety of business aspects measured and reporting of the measures. The study concluded by recommending appropriate measures to be taken if the organization wants to realize maximum benefit from the application of information technology on performance measurement.