performed a systematic

performed a systematic

1 Week 8 Instructions for: Workshop/Lab for week 8 Exercise 4 IS Assessment, Impact, & Success Figure 1: The DeLone and McLean, IS Success Model (2002) DeLone and McLean performed a systematic review of available published material on the question of the success of information systems in organisations. DeLone and McLeans IS Success Model 3 Figure 2: Efficacy, efficiency and effectiveness To do: Describe measures of efficiency, efficacy, and effectiveness for your proposed new IS. The level of performance an organisation attains is a function of the efficacy, efficiency and effectiveness of the actions it has undertaken. Performance of systems in organisations have three main types of measures: Efficacy (does it work? Output oriented) Efficiency (does it work well? Outputs / Inputs) Effectiveness (does the system contribute to a higher-level system?) Measures of Performance 4 Efficacy: is a measure of the extent to which a system achieves its intended transformation. Efficacy is primarily focused on the outputs and producing appropriate value. Examples: how durable specific batteries produced by Samsung are? How many years an average Toyota Corolla can travel without needing a major service? How tasty a specific food product is (as measured by its customers perception)? Efficiency (Outputs/Inputs): The extent to which the system achieves its intended transformation with the minimum use of resources. Examples: how many person hours does it take to produce one unit of product? Average time it takes to provide a specific service to a customer? How much does it cost to produce one unit of a product? Effectiveness: is a measure of the extent to which the system contributes to the purposes of a higher-level system. For example: the contribution of the GC private hospitals income (that is a member of a larger business group) has made to the groups overall profitability? The percentage of Griffiths students attracted by the School of ICT (HAS)? A reduction in time for visitors to find a car parking space, thereby increasing satisfaction of the visitors at the GC hospital. Note: Both human activity system and information system may have their own success measures. Examples of Measures of Success Positive vs Negative Impact on groups and individuals inside organization: Individuals Groups (HAS) Organisation as a whole Impact on groups and individuals outside organization Examples of potential positive impact: increased level of work monitoring and control by managerial group, enriching certain activities and empowering certain groups of workers, empowered decision making by managers. Examples of potential negative impact: An online system developed for customer support which has been slow and down many hours every week, an online system generated to access patients medical history lacks data accuracy and completeness. Employees losing their job due to automation, or de-skilling of employees. IS Impact 6 6 Dr Bruce H. Rowlands, Dr Amir Ghapanchi, Dr. Sven Venema 1803ICT Information Systems Foundations Lecture 7 Five organisational forms (Mintzberg, 1991) 1. Simple Structure (Entrepreneurial): start-up firms, visionary leadership, single executive (SMEs, medium-sized retail stores) little or no techno-structure, few support staffers, a loose division of labour, minimal differentiation among its units, and a small managerial hierarchy. The behaviour of simple structure is not formalised and planning, training, and liaison devices are minimally used in such structures. 2. Machine: mass production, inward looking, standardisation (factories) highly specialised, routine operating tasks; very formalised procedures in the operating core; a proliferation of rules, regulations, & formalised communication; large-sized units at the operating level; reliance on the functional basis for grouping tasks; relatively centralised power for decision making; an elaborate administrative structure with sharp distinctions between line and staff 3. Professional: concentrate on levels of skill & proficiency (accountancy practices, law firms, university schools) standardization of skills and its associated parameters such as design, training and indoctrination. In professional bureaucracy type structures, duly trained and indoctrinated specialists -professionalsare hired for the operating core, and then considerable control over their work is given to them. Most of the necessary coordination between the operating professionals is handled by the standardization of skills and knowledge especially by what they have learned to expect from their colleagues. 7 7 Dr Bruce H. Rowlands, Dr Amir Ghapanchi, Dr. Sven Venema 1803ICT Information Systems Foundations Lecture 7 4. Divisional (Diversified): range of products or services, semi-autonomous business units (Unilever) Divisionalised form type organizations are composed of semi-autonomous units the divisions. The divisionalised form is probably a structural derivative of a Machine Bureaucracy an operational solution to co-ordinate and control a large conglomerate delivering: Horizontally diversified products or services In a straight-forward, stable environment Where large economies of scale need not apply 5. Adhocracy: skilled experts, fluid structure, informal communication (R&D arm of company, film productions) little formalization of behaviour; job specialization based on formal training; a tendency to group the specialists in functional units for housekeeping purposes but to deploy them in small, market-based project teams to do their work; a reliance on liaison devices to encourage mutual adjustment, the key coordinating mechanism, within and between these teams To do: Classify Amazon Australia (or its divisions) Five organisational forms (Mintzberg, 1991) 8 Lyytinen & Hirschheim (1987) Four categories of information systems failure: Correspondence failure: failure to meet requirements set in advance Process failure: system not produced within given budget or time Interaction failure: system not used or under-used by target Expectation failure: failure to meet user expectations (a super set of the above 3) Systems Failure Double * = stronger relevance 3 Correspondance Failure Process Failure Interaction Failure Expectation Failure Organisational Form Machine ** * Entrepreneurial * * * Professional ** ** Adhocratic ** ** Diversified ** * ITSM & ITIL Reading Please remember to read this paper (posted on the course site) 1. Why would an organisation be interested in ITIL? 2. What is a service level agreement? 3. What is a RACI chart/matrix? 4. Do you agree with the adage, that you cant manage what you cannot measure? In exercise 4, you are given a scenario for which you will analyse the vehicle repair company of exercise 1, 2 & 3. You will work on the exercise individually during the lab and draft an answer for marking in week 9. You can ask your workshop demonstrator for assistance if you have questions. Then, you have until the start of your next lab in week 9 to submit your answers to the exercise. 11 Week 8 Exercise 4 (worth 5%) Assessed Exercise 4: Scenario: Six mechanics work in this car service business, they are all trained specifically for the job they need to do, and they have considerable control over their work. Four types of mechanics work in the car service business: (i) Brake Repairers (two people): Brake repairers adjust, replace, and repair the brake rotors, brakes; (ii) Front-End Mechanics (two people): Front-end mechanics align, balance, and repair the wheels, suspension systems, and steering mechanisms; (iii) Transmission Technician and Rebuilder (one person): Auto technicians repair the gear trains, hydraulic pumps, couplings, etc; (iv) Automotive Air-Conditioning Repairer (one person): Mechanics work on installing and repairing air conditioners parts etc. The business has recently implemented a new online service booking system. This system enables the car owner to specify any problems with the cars running, and to choose extra services such as car wash and/or internal clean. The new online system also gathers details of the customer such as email address, telephone number, odometer reading, car make, year and model. At the back end, an admin person regularly processes and monitors online bookings. In many cases, the admin person needs to send an online request via this system to a mechanic to enable estimating cost/time which should be communicated to the customer along with the booking confirmation. 12 Assessed Exercise 4: Questions: 1. For the new online system, suggest and explain at least one indicator for each performance criteria of: efficiency, efficacy, and effectiveness (1 mark) 2. Describe dimensions of impact of your proposed new information system within the business for all stakeholders (cover intended positive effects as well as possible negative effects); describe the proposed impact of the new system on the organisation, groups, and individuals (1 mark) 3. Identify and justify the organisational form of this business using Mintzbergs classification (1 mark) 4. Use Lyytinen & Hirschheims 4 categories of systems failure, and the grid in slide 9, to determine what type of failure is predicted, and offer advice to ensure system success (2 marks) 13

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