The measurement of the efficiency of information systems is the evaluation of information systems. The evaluation of information systems depends on the amount of efficiency in workflow and management an organization achieved by implementing an information system. Evaluation of information systems is measured based on a few criteria as follows:
- Dependency of Information
- Availability of Information
- Support in Business Operation
- Help to Survive in Competition
- Reduce Uncertainty
- Value and Cost of Information
- Presentation of Information
- Accuracy of Information
- Verification and Validation of Information
Dependency of Information
How much an organization can rely on the information it gets from it’s information system is a criteria while evaluating the information system as if the information system is not providing reliable information then there is not mean to have it in the organization.
Availability of Information
Information systems are meant to deliver information when asked for. So, if an information system can’t deliver information in time, that if information is unavailable at the moment when required, the whole system becomes useless.
Support in Business Operation
An organization implements single or multiple information systems to get support in every levels of the organization’s operations. Thus, an efficient information system is supposed to support business operations in each level.
Help to Survive in Competition
To survive and run successfully in the market an organization need to face and win various challenges from other organization in the market. Information systems are supposed to help organization in this survival by delivering competitive reports.
Information systems are supposed to deliver forecasts based data and current market data to take business decision in a way that reduces uncertainty of the business.
Value and Cost of Information
The cost of developing, implementing and running an information system must be less than the value of the information it provides. If it is more costly to operate an information system than what the information system gives in return then there is no need to have such an information system.
Presentation of Information
Efficiency of an information system depends on the presentation of information by the system. The information system that represents information in an attractive, easy and more understandable format is obviously more efficient than others.
Accuracy of Information
Like reliability of the information achieved from an information system, accuracy of the information is also important.
Verification and Validation of Information
If data were collected from multiple sources then information system must cross-check the data to verify and validate it before using it in processing to generate information.
Various approaches are used to evaluate the organizational MIS performance. The most common approaches are:
- Quality Assurance Review: The quality assurance review is also known as a technical review. It determines the technical quality performance of MIS. The quality assurance review determines the data transmission rate, main or secondary storage, and CPU capacity.
- Reliability and Accuracy: Reliability and accuracy is a key indicator of measuring the performance of an MIS. The usefulness of the resulting information is usually determined by the precision of the data, it uses some parameters to find reliability and accuracy.
- Timeliness of Information: The results of MIS must be recent. And when evaluating patterns, management must make assumptions about the organization’s future, based on MIS data. A more recent on MIS, decision making always reflects on current reality and correctly predict their impact on the business. If the data collection and processing delay its availability, the MIS must take into account its potential age-related inaccuracies and present the resulting information accordingly, with probable error ranges.
Product-based MIS evaluation
The product-based MIS evaluation is also known as effectiveness evaluation. Determines the effectiveness of an MIS output. For assessing the effectiveness of MIS output, a model structure may be used.
- Model Structure: A model structure is a structure that contains various information attributes such as timeliness and relevance. To determine the MIS effectiveness in an organization, we need to determine the information attributes for the MIS output.
Some of commonly used attributes are,
- Timeliness: Real-time information may be called information that is evaluated in a very short period.
- Relevance: Questions such as timeliness, authority or novelty of the outcome may include significance.
- Accuracy: The accuracy of information or measurements is their consistency, even in small details, of being accurate or correct.
- Completeness: Completeness’ refers to how comprehensive the data is.
- Adequacy: The ability to obtain the information required for decision making in a timely and reliable manner.
- Explicitness: The degree to which the MIS is consistent with the particular organization.
- Exception-based: MIS should be built based on the exception-based reporting concept, which implies an irregular condition where the maximum, minimum, or predicted values differ outside the limits. Exception reporting should be given to the decision-maker at the appropriate level in such cases.
Cost-based evaluation of the MIS system determines the benefits expected from the developed system. Different approaches are used to measure the cost and evaluate the various benefits to organizations. The approaches of cost-benefit analysis are used to find out the feasible solution. The benefits to be expected from the system and expected benefits are carried out in the cost/benefit calculation of the different expected costs. The measurement of cost/benefit decides the system’s cost-effectiveness.