ASSESSMENT OF THE ECONOMIC EFFECT OF IMPLEMENTING MANAGEMENT INFORMATION SYSTEMS: GENERAL PRINCIPLES OF EVALUATION

Keywords: management information systems, evaluation principles, economic indicators, methods, techniques, management decisions

Abstract

An important issue is the assessment of the economic effect of the implementation of management information systems (MIS). The company's management must understand the benefits of implementing the company's MIS, how effectively, from an economic point of view, the production process will change during the use of the system. Therefore, the main purpose of the work is to develop a scientifically sound approach to the selection and implementation of MIS to ensure effective management of production resources and management decisions as well as research in identifying and disclosing general principles for assessing the economic effect of implementing management information systems. The general principles and approaches, rules on the evaluation process regardless of the evaluation methodology used are described, namely: the need to understand and describe the objectives of the evaluation process; awareness and description of the priorities of business goals; description of positive and negative IT factors in terms of business with the involvement of leading experts and company management; differentiation of sources of payback of IT projects through: one-time reduction of the company's assets and permanent changes, including sales growth and reduction of certain components of production costs; accounting for the time factor and the value of money. Information systems, in contrast to production, have a number of specific features, due to which the exact calculation of these economic indicators using standardized methods is difficult. The article considers the issue of assessing the economic effect of the implementation of management information systems (MIS). The article substantiates the essence that determines the direct economic effect of the introduction of a modern integrated enterprise management system – ERP system. The expected improvements achieved through the ERP system can be grouped into such categories, each of which has its own sources of payback. The abbreviation ERP is used to denote complex enterprise management systems. ERP is a term introduced by the research firm Gartner Group to describe control systems. Recommendations and suggestions for the choice of methods and models in assessing the benefits of the effectiveness of IT projects are given.

References

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Published
2021-07-27
How to Cite
Tereshchenko, L. (2021). ASSESSMENT OF THE ECONOMIC EFFECT OF IMPLEMENTING MANAGEMENT INFORMATION SYSTEMS: GENERAL PRINCIPLES OF EVALUATION. Economy and Society, (29). https://doi.org/10.32782/2524-0072/2021-29-44
Section
ECONOMICS