Using balanced scorecards for the evaluation of “Software-as-a-service”

To overcome the problem of limited resources, increasing numbers of small- and medium-sized companies (SMEs) are adopting “Software-as-a-service” (Saas) as an efficient tool for IS implementation. The balanced scorecard (BSC) has been adopted by SMEs to evaluate Saas via four measures: learning and growth, internal business processes, customer performance, and financial performance. The survey results for 101 Software-as-a-service adopters indicate that learning and growth, internal business processes, and customer performance are causally related to financial performance. The results show that these four key elements for Saas success are interrelated, supporting the core premise of the BSC.