The measurement of IS success

8 Feb

IS plays an important role in an organization. CIO’s main objective is to ensure information to be delivered effectively and ensure support company operations efficiently.
According to the survey by Ernst and Young (Breshnahan, 1996), IS performance would be measured on the operation or service level as these three criteria:

  • Are systems projects delivered on time?
  •  Are systems projects delivered on budget?
  •  Are users satisfied with the delivered systems?

IS success can be measured at three levels: organizational level, function or process level and individual level. At organizational level, metrics related to organizational performance are used to measure IS success. At function level, IS success is measured by the efficient use of resources and the reduction of process cycle times. At individual level, IS success is based on users’ perception of utility and satisfaction. The following are details in the three levels.

Organizational level

  •  Market share, profit, and return on investment
  •  Return on equity and stock
  •  Revenue from new products and services
  • Operating efficiency of MIS relative to competitors
  • Operating cost, system availability and response time
  • Organization wide perceptions of performance
  • Degree to which IT strategy is aligned with organizational strategy

Function or process level

  •  Operating efficiency of functional areas
  • Reduced process cycle times
  •  Reduced costs
  •  Low costs and cycle times relative to industry practices
  •  Processes are well integrated
  • Organization has detailed knowledge of how resources are being used to produce products and services

Individual level

  • User IS satisfaction
  • Utility of system




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