Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
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Evaluating Performance Efficiency of Information Systems Function in A System Integration Corporation

정보시스템 통합관리를 위한 정보시스템실의 업무수행 효율성 평가

  • 김효열 ((주) beTRUSTed Korea) ;
  • 한인구 (한국과학기술원 테크노경영대학원) ;
  • 신택수 (한국과학기술원 테크노경영연구소)
  • Published : 2002.09.30
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Abstract

For the last decade, some leading groups of corporations in Korea have integrated and managed their Information Systems(IS) functions. Each group established a separate System Management(SM) company to manage the IS and tried to get a synergy effect from the integration. These attempts, however, were not initiated by any one company. Rather they were group efforts. Moreover, the previous measuring tools evaluated IS with the scope of technical performance or quantitative user satisfaction using an absolute scale. Obscure criteria were used in an attempt to present improvements in IS function which were qualitatively weak. This study evaluates whether integration has been efficient and successful. For this purpose, we evaluate the performance efficiency of IS functions with Data Envelopment Analysis(DEA) methodology. In comparison with prior methods, DEA presents the rate of relative efficiency, the efficiency frontier for improving inefficiency, the degree of improvement(slack), and the guideline to construct any benchmark(reference set). For our DEA evaluation, this study selected a leading group of 23 companies in Korea. Our experimental results are as follows. First, efficiency was rated low on average. It also demonstrates that the motivation of performance efficiency of IS functions is deficient. Second, the result of the test to find the existence of economy of scale and scope shows that the growth of an organization and industrial characteristics do not affect IS performance efficiency from the perspective of user satisfaction. Finally, the comparison with other evaluation approaches informs us that DEA can be a complementary evaluation method which supports other measuring tools.

Keywords

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