431 Developments There is a lot written about the effect of IS in organizations

431 developments there is a lot written about the

This preview shows page 33 - 35 out of 83 pages.

4.3.1 Developments There is a lot written about the effect of IS in organizations. Each author tries to describe the effect as useful and clear as possible. Remarkable is that there findings do not always match. Some studies have reported a positive relationship between IT investments and firm financial performance, whereas others have found no significant relationships. Wight (1994) suggests that the use of information systems such as manufacturing resource planning (MRPII) within manufacturing organization are often the natural choice for improving process performance and organizational competitiveness. The reason for this is that such systems provide businesses with robust and responsive intra-organizational infrastructure; Irani et al. (2001) draw attention to many of the human and organizational issues associated with its evaluation and management. Chung and Snyder (2000) identify the attempt being made by many organizations to expand their IS infrastructure beyond their organizational boundaries through developing inter-organizational business systems. Yet, such systems are not perfect and not without limitation. Hochstrasser (1991), argues that the high rate of IT/IS failure is partly attributable to a lack of solid but easy to use management tools for evaluating, prioritizing, monitoring, and controlling IT investments(Zahir 2002). From a business point of view, an organization mostly focuses on value, on the effect IT has on the performance of the business. IT has not a direct value in the business domain, but the value lays mainly in the application of the technology, not on costs. The value of the information technology is derived from the capability it affords to the information system organization to
Image of page 33
34 deliver its services to the different business units. The justification for information technology, then, is balance of the value and the costs assigned to the business, whereas viability is based on the value of the information technology to the IS organization(Zahir 2002). In the past decade, organizations have increased their investments in IS significantly with the expectation that these investments will improve firm performance. However, some organizations continue to be able to garner better value from IS than others. This has created a need to better understand the sources of such differences and, consequently, the mechanisms by which IS contributes to firm performance(Zahir 2002). In is showed with the developments in the literature, Information Systems (IS) have become an important tool for organizations. With the upcoming IT developments from the last years, information systems are getting more complex but also diverse so organizations can get the most benefit and competitive advantage. At least, that is what the intention is when information systems are developed. Are information systems the cause of a more efficient and effective organization? It is never possible to give complete evidence that a more efficient outcome of an organization is only caused by the introducing of a certain IS. However, it is possible to study the
Image of page 34
Image of page 35

You've reached the end of your free preview.

Want to read all 83 pages?

  • Winter '16
  • dr lizam

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture