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Information security investment decisions: evaluating the Balanced Scorecard method

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  • Linda J. Tallau
  • Manish Gupta
  • Raj Sharman

Abstract

Justifying security investments has been challenging for managers and executives alike for several well-published reasons. With the growing importance of security measures, companies are increasing the share of security investments in their overall Information Technology (IT) budgets. This paper presents a practical application of the Balanced Scorecard method in evaluating the investment decisions made on the acquisition of security technologies by an organisation. The research shows that this methodology can be used effectively in comparative analysis situations where two or more investments are being considered using a set of best choices per organisational goal. The proposed methodology incorporates the percentages of financial, customer, business and growth goals defined in a set of metrics and places a weighted value on those percentages to achieve an overall percentage of met goals. The research is carried out in a US-based large public university's IT division.

Suggested Citation

  • Linda J. Tallau & Manish Gupta & Raj Sharman, 2010. "Information security investment decisions: evaluating the Balanced Scorecard method," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 5(1), pages 34-57.
    • Handle: RePEc:ids:ijbisy:v:5:y:2010:i:1:p:34-57
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    References listed on IDEAS

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    1. Kjell Hausken, 2006. "Returns to information security investment: The effect of alternative information security breach functions on optimal investment and sensitivity to vulnerability," Information Systems Frontiers, Springer, vol. 8(5), pages 338-349, December.
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    1. Tejaswini C. Herath & Hemantha S. B. Herath & David Cullum, 2023. "An Information Security Performance Measurement Tool for Senior Managers: Balanced Scorecard Integration for Security Governance and Control Frameworks," Information Systems Frontiers, Springer, vol. 25(2), pages 681-721, April.
    2. Kemendi Agnes & Michelberger Pal, 2024. "Process security methods and measurement in the context of standard management systems," Engineering Management in Production and Services, Sciendo, vol. 16(2), pages 148-165.
    3. Jürgen Harrer & Andreas Wald, 2016. "Levers of enterprise security control: a study on the use, measurement and value contribution," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 7-32, February.

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