The ISSUE methodology for quantifying benefits from information systems

George M. Giaglis (George M. Giaglis is a Lecturer in the Department of Information Systems and Computing, Brunel University, Uxbridge, UK)
Nikolaos Mylonopoulos (Nikolaos Mylonopoulos is a Lecturer at The Business School, Loughborough University, Loughborough, UK)
Georgios I. Doukidis (Georgios I. Doukidis is Professor in the Department of Informatics, Athens University of Economics and Business, Athens, Greece)

Logistics Information Management

ISSN: 0957-6053

Publication date: 1 February 1999

Abstract

The assessment of information systems (IS) benefits is an important practical problem in IS investment appraisal. After briefly reviewing the nature of IS benefits, we argue that an incremental measurement approach can help an organisation obtain quantitative estimates of expected IS impacts on business performance. Such an approach should start from quantifiable benefits directly attributable to the information system and then gradually consider more intangible and indirect effects. We suggest that Business Process Simulation can be an effective technique in applying this approach and we present a methodology that incorporates incremental, iterative business process modelling and simulation into five practical steps. To illustrate this approach, we present a case of measuring the potential improvements in inventory management introduced by electronic data interchange and discuss issues of feasibility and directions for further research and development.

Keywords

Citation

Giaglis, G.M., Mylonopoulos, N. and Doukidis, G.I. (1999), "The ISSUE methodology for quantifying benefits from information systems", Logistics Information Management, Vol. 12 No. 1/2, pp. 50-62. https://doi.org/10.1108/09576059910256259

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MCB UP Ltd

Copyright © 1999, MCB UP Limited

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