Evaluating performance efficiency of IS function : focused on system integration corp.

Abstract

For the last decade, some leading groups of corporations in Korea have integrated and managed their IS functions. Each group found an SM corporation to manage the IS and wanted to get synergy effect. These integrations, however, had not self-motivation, because the integration was led by the group, and now we have to evaluate whether the integration was successful, being efficient or not. The previous measuring tools evaluated IS with the scope of technical performance or quantitative user satisfaction using the absolute scale. They also presented obscure criteria to improve the weakness. Data Envelopment Analysis method presents the rate of relative efficiency, the efficiency frontier for improving inefficiency, the degree of improvement (slack), and the guideline to construct benchmark(reference set). In this dissertation, information system infrastructure index, staff, and budget are selected as inputs and system quality, information quality, and service quality as outputs to evaluate performance efficiency of IS function with DEA methodology. And a leading group which has 23 companies is selected. Generally, the efficiency is rated low on the average. The result proves the deficiency of motivation. The result of the test to find the existence of economy of scale and scope shows that the growth of organization and the industrial characteristic do not affect the IS performance efficiency focusing on user satisfaction. The comparison with other evaluation approaches informs us that DEA can be an additive evaluation method.