management information and control systemsassignment a

8/8/2019 Management Information and Control Systems Assignment A

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28 September 201028 September 2010 11

Management Information andManagement Information and

Control SystemsControl Systems

Assignment AAssignment A

SUBMITTED BY:

Shekhar Batta (09609040)

Manisha Chugh (09609080)

Mayur Singhal (06502917)


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2228 September 201028 September 2010


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Enterprise Systems (ES) have over the past decade emerged to be one ofEnterprise Systems (ES) have over the past decade emerged to be one of

the most important developments in the corporate use of informationthe most important developments in the corporate use of informationtechnology.technology.

Information systems investments are under increasing scrutiny and pressureInformation systems investments are under increasing scrutiny and pressureto justify their value and contribution to the productivity, quality, andto justify their value and contribution to the productivity, quality, andcompetitiveness of organizations.competitiveness of organizations.

Evidence of IS success has been mixed with some studies showing positiveEvidence of IS success has been mixed with some studies showing positiveimpacts of IS in organizations, while others have shown nil or detrimentalimpacts of IS in organizations, while others have shown nil or detrimentalimpacts.impacts.

These conflicting results may be attributable to (1) incomplete orThese conflicting results may be attributable to (1) incomplete orinappropriate measures of success, (2) lack of theoretical grounding ofinappropriate measures of success, (2) lack of theoretical grounding ofcausal and process models of IS success, (3) myopic focus on financialcausal and process models of IS success, (3) myopic focus on financialperformance indicators, or weaknesses in (4) survey instruments employedperformance indicators, or weaknesses in (4) survey instruments employed

(e.g., constructs lacking in validity) or (5) data collection approach (e.g.,(e.g., constructs lacking in validity) or (5) data collection approach (e.g.,asking the wrong people).asking the wrong people).

An enterprise system entails many users ranging from top executives toAn enterprise system entails many users ranging from top executives todata entry operators; many applications that span the organization; and adata entry operators; many applications that span the organization; and adiversity of capabilities and functionality.diversity of capabilities and functionality.


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28 September 201028 September 2010 44

Figure 1Figure 1 depicts the study design, with spheres representing main phases ofdepicts the study design, with spheres representing main phases of

activity and rectangles representing key inputs and outputs.activity and rectangles representing key inputs and outputs.


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Models and Measures of IS SuccessModels and Measures of IS Success Research assessing the success of information systems has been ongoingResearch assessing the success of information systems has been ongoing

for nearly three decades.for nearly three decades.

TheThe DeloneDelone and McLean (1992) IS success model is one of the most widelyand McLean (1992) IS success model is one of the most widelycited. The model is an attempt to represent the interdependent, processcited. The model is an attempt to represent the interdependent, processnature of six IS success constructs: (1) system quality, (2) informationnature of six IS success constructs: (1) system quality, (2) information

quality, (3) use, (4) user satisfaction, (5) individual impact, and (6)quality, (3) use, (4) user satisfaction, (5) individual impact, and (6)organizational impact.organizational impact.

The main contributionsThe main contributions DeloneDelone and McLean make to understanding of ISand McLean make to understanding of ISevaluation are: (1) the constructs of the model provide a classification forevaluation are: (1) the constructs of the model provide a classification forthe many IS evaluation measures reported in the prior literature, (2) theirthe many IS evaluation measures reported in the prior literature, (2) theirapproach begins to identify relevant stakeholder groups in the process ofapproach begins to identify relevant stakeholder groups in the process ofevaluation, and (3) they suggest a model of interdependencies among theevaluation, and (3) they suggest a model of interdependencies among theconstructs.constructs.

The Shang andThe Shang and SeddonSeddon (2000) framework classifies potential ERP benefits(2000) framework classifies potential ERP benefitsinto 21 lower level measures organized around five main categories:into 21 lower level measures organized around five main categories:operational benefits, managerial benefits, strategic benefits, IToperational benefits, managerial benefits, strategic benefits, ITinfrastructure benefits, and organizational benefits.infrastructure benefits, and organizational benefits.


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Mutual exclusivity and additivity of success measuresMutual exclusivity and additivity of success measures

Model completenessModel completeness

Choice of IS success dimensionsChoice of IS success dimensions

Theoretical basis for causal/process pathsTheoretical basis for causal/process paths

Excessive emphasis on quantitative (financial) measuresExcessive emphasis on quantitative (financial) measures

The nature of the contemporary IS environmentThe nature of the contemporary IS environment

Multiple stakeholder perspectivesMultiple stakeholder perspectives


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The Inventory SurveyThe Inventory Survey The main purpose of the initial exploratory inventory survey was toThe main purpose of the initial exploratory inventory survey was to

identify a salient set of ES success dimensions to include in the a priori ESidentify a salient set of ES success dimensions to include in the a priori ESsuccess measurement model.success measurement model.

In September 2001, the exploratory survey was conducted to inventoryIn September 2001, the exploratory survey was conducted to inventoryimpacts of the SAPR/3 system, as perceived by staff at all levels of 27impacts of the SAPR/3 system, as perceived by staff at all levels of 27government agencies in the state of Queensland, Australia.government agencies in the state of Queensland, Australia.

The inventory survey was non anonymous with three main instrumentThe inventory survey was non anonymous with three main instrumentsections querying (1) respondent demographics (e.g., name, position,sections querying (1) respondent demographics (e.g., name, position,

number years with agency, years with Queensland Government) and a briefnumber years with agency, years with Queensland Government) and a briefdescription of their involvement with the SAPR/3 system; (2) specificdescription of their involvement with the SAPR/3 system; (2) specificimpacts of the SAP system; and (3) any past, inimpacts of the SAP system; and (3) any past, in--progress for increasingprogress for increasingpositive impacts from the SAP system.positive impacts from the SAP system.


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The objectives of this exercise were to yield a framework that is (1) simpleThe objectives of this exercise were to yield a framework that is (1) simple

and generalizable beyond the current study, while also being (2) intuitive toand generalizable beyond the current study, while also being (2) intuitive to

the study respondentsthe study respondents..

Two main approaches for data coding and synthesis: (1) a bottomTwo main approaches for data coding and synthesis: (1) a bottom--up, dataup, data

driven, open coding approach (2) a topdriven, open coding approach (2) a top--down, structured coding,down, structured coding,

framework approach.framework approach.

TheThe toptop--down approachdown approach employs deduction, and starts with a logicalemploys deduction, and starts with a logical

framework or model to categorize the responses.framework or model to categorize the responses.

TheThe bottombottom--up approachup approach employs induction, starting with the data in hand,employs induction, starting with the data in hand,

that is arranged into a logical classification.that is arranged into a logical classification.


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The Delone and McLean constructs, and measures, served as the basis ofThe Delone and McLean constructs, and measures, served as the basis of

the starting ES success model.the starting ES success model.

The constructs/measures of the Delone and McLean model provided aThe constructs/measures of the Delone and McLean model provided a

holistic view across the organizationholistic view across the organizationfrom a top management perspective,from a top management perspective,

to that of data entry officersto that of data entry officersand provided a detailed categorization ofand provided a detailed categorization ofsuccess dimensions.success dimensions.


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Operationalization of the beginning model proceeded as follows:Operationalization of the beginning model proceeded as follows:

(1) revisit relevance of the(1) revisit relevance of the DeloneDelone and McLean use construct;and McLean use construct;

(2) revisit relevance of user satisfaction;(2) revisit relevance of user satisfaction;

(3) define a more expansive organizational impacts construct;(3) define a more expansive organizational impacts construct;

(4) introduce further ES related measures, and(4) introduce further ES related measures, and

(5) remove measures that are inappropriate for this study.(5) remove measures that are inappropriate for this study.


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A priori model is simply a measurement model for assessing the multidimensionalA priori model is simply a measurement model for assessing the multidimensional

phenomenon of ES success using five separate dimensions of success (constructs):phenomenon of ES success using five separate dimensions of success (constructs):

system quality, information quality, satisfaction, individual impact, andsystem quality, information quality, satisfaction, individual impact, and

organizational impactorganizational impact..


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The Weights Survey:The Weights Survey:

To validate the priori model.To validate the priori model.

It was designed to operationalize the 41 measures of the five constructsIt was designed to operationalize the 41 measures of the five constructs

Items were scored on a sevenItems were scored on a seven--pointpoint LikertLikert scale with the end values (1)scale with the end values (1)

strongly disagree and (7) strongly agree, and the middle value (4) neutral.strongly disagree and (7) strongly agree, and the middle value (4) neutral.

Construct Validity :Construct Validity :

Following the weights survey, the study model and related instrument itemsFollowing the weights survey, the study model and related instrument items

were tested for construct and criterion validity and reliabilitywere tested for construct and criterion validity and reliability


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Criterion measures of overall success in response to each ofCriterion measures of overall success in response to each oftwo statements: (A) Overall, the impact of SAP on thetwo statements: (A) Overall, the impact of SAP on theagency has been positive and (B) Overall, the impact of SAPagency has been positive and (B) Overall, the impact of SAPon me has been positive.on me has been positive.

Criterion average is the simple average of the two criterionCriterion average is the simple average of the two criterionitemsitems

Dimensions average is the simple average of the four successDimensions average is the simple average of the four successdimensionsdimensions

The extent to which each dimension or the dimensionsThe extent to which each dimension or the dimensionsaverage correlates with the criterion scores is evidence ofaverage correlates with the criterion scores is evidence oftheir criterion validitytheir criterion validity



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It has 4 quadrants, representing four distinct but related dimensions of the

multidimensional phenomenon: enterprise systems success.


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Revised modelRevised model for ES success deviates from the traditionalfor ES success deviates from the traditional DeloneDeloneand McLean model in the following ways:and McLean model in the following ways:

It depicts a measurement model and does notIt depicts a measurement model and does not surportsurport a causal/processa causal/process

model of success,model of success,

It omits the use construct.It omits the use construct.

Satisfaction is treated as an overall measure of success, rather than as aSatisfaction is treated as an overall measure of success, rather than as a

dimension of success.dimension of success.

New measures were added to reflect the contemporary IS context andNew measures were added to reflect the contemporary IS context and

organizational characteristics.organizational characteristics.

It includes additional measures to probe a more holistic organizationalIt includes additional measures to probe a more holistic organizational

impacts construct.impacts construct.


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Close attention to the mutual exclusivity of the dimensionsClose attention to the mutual exclusivity of the dimensions

Most extensive and complete set of IS measures tested in aMost extensive and complete set of IS measures tested in asingle IS success studysingle IS success study

First operationalization and test of the Myers et al. (1997) ISFirst operationalization and test of the Myers et al. (1997) IS

success frameworksuccess framework First test of the completeness and relevance of the sixFirst test of the completeness and relevance of the six

DeloneDelone and McLean (1992) constructsand McLean (1992) constructs

First partial empirical test of the Shang andFirst partial empirical test of the Shang and SeddonSeddon (2000)(2000)benefits frameworkbenefits framework

Evidence of theEvidence of the additivityadditivity of the four model dimensions, andof the four model dimensions, andthe validity of an overallthe validity of an overall measure of success based in theirmeasure of success based in theircombinationcombination



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Validates the model constructs and measures in a contemporary ESValidates the model constructs and measures in a contemporary ES

contextcontext

First comprehensive empirical, quantitative assessment of ES successFirst comprehensive empirical, quantitative assessment of ES success

reported in the academic pressreported in the academic press

Illustrates the relative importance of nonfinancial measures of ES successIllustrates the relative importance of nonfinancial measures of ES success


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This presentation presents a validated measurement model and instrumentThis presentation presents a validated measurement model and instrument

for assessing enterprise systems success from multiple perspectives.for assessing enterprise systems success from multiple perspectives.

The final validated study model employs 27 measures of the fourThe final validated study model employs 27 measures of the four

dimensions: information quality, system quality, individual impact, anddimensions: information quality, system quality, individual impact, and

organizational impact.organizational impact.

The model is empirically tested with survey data gathered from 27 publicThe model is empirically tested with survey data gathered from 27 public

sector organizations that implemented SAPR/3.sector organizations that implemented SAPR/3.


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management information and control systemsassignment a

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