Which method is essential for reviewing the effectiveness of IT investments?

The IT balanced scorecards are essential for reviewing the effectiveness of IT investments because they provide a comprehensive framework for measuring performance across multiple dimensions. This approach goes beyond traditional financial metrics, incorporating various perspectives such as customer satisfaction, internal processes, learning and growth, and financial performance.

By aligning IT investments with organizational goals, balanced scorecards allow stakeholders to assess how well IT initiatives are contributing to strategic objectives. They enable organizations to identify areas where IT is creating value, determine the return on investment, and guide future decision-making. This holistic view is critical for ensuring that IT expenditures align with business strategies and deliver tangible benefits.

In contrast, enterprise data models primarily focus on the organization of data within the enterprise, while historical financial statements provide insights into past performance but may not reflect the current effectiveness of ongoing IT investments. The IT organizational structure outlines how IT is arranged within the organization but does not directly measure the outcome of IT investments. Thus, balanced scorecards are uniquely suited to effectively evaluate the impact of IT investments in a comprehensive manner.