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System Evaluation and Choices - Coggle Diagram
System Evaluation and Choices
Introduction
To assess the system to see if it does what it was supposed to do, that it is working well. and every one is happy with it.
PURPOSE OF SYSTEM EVALUATION
Evaluation is the process by which we decide whether or not to purchase or commit ourselves to something. Evaluation activities are, by definition, decisive periods in the life of any high tech project.
Decision makers engage in convincing behaviour drawing on a mix of objective and subjective resources as evidence supporting their decision.
All decisions arise from a process of evaluation, either explicit or implied. The method of valuing an option by balancing its benefits against its costs. Furthermore, decisions occur throughout the development life cycle as and when opportunities are identified.
How do we decide what systems to use (develop or acquire, install and operate) in our organizations? We think of the process of making a decision as the process of evaluation.
How evaluation works
Efficient
Efficiency is the ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result.
Easy to use
To ensure the system is easy to use by everyone.
Appropriate
Must confirm whether that particular system is helpful for the company's business.
Evaluating information system effectiveness and efficiency
Problems have arisen or criticisms have been voiced in connection with a system
Some indicators of the ineffectiveness of the hardware and software being used may prompt the review
Quality of Working Life
High quality of working life for users of a system is a significant objective in the design process. Unfortunately, there is less agreement on the definition and measurement of the quality of working life.
Cost-Benefit Analysis in AIS Development
Since cost plays an important role in deciding the new system, it must be identified and estimated correctly. Fees vary by type and consist of various distinct elements. Benefits are also of different styles and can be grouped based on the advantages they provide to the management.
Cost-savings benefits lead to a reduction in administrative and operational costs. A reduction in the size of the clerical staff used in support of organisational activity is an example of a cost-saving benefit.
Improved-service-level benefits are those where the performance of a system is improved by a new computer-based method.
Improved-information-benefit is where computer-based methods lead to better information for decision-making. For example, a system that reports the most-improved fifty customers as measured by an increase in sales is improved. This information makes it easier to provide better service to significant customers.
Direct or Indirect Costs and Benefits
Direct costs are those which are directly associated with a system. They are- applied directly to the operator. Immediate benefits also can be specifically attributable to a given project. For example, a new system that can process 30 per cent more transactions per day is a direct benefit
Indirect costs are not directly associated with a specific activity in the system. They are often referred to as overhead expenses. For example, cost of space to install a system, maintenance of computer centre, heat, light and air-conditioning are all tangible costs, but it is difficult to calculate the proportion of each attributable to a specific activity such as a report. Indirect benefits are realized as a by-product of another system.
Fixed or Variable Costs and Benefits
Some costs and benefits remain constant, regardless of how a system is used. Fixed costs are considered sunk costs. Once encountered, they will not recur. For example, the purchase of equipment for a computer centre is called a fixed cost. It remains constant whether equipment is being used extensively or not similar, the insurance, purchase of software etc.
Variable costs are incurred regularly. They are generally proportional to world volume and continue as long as the system is in operation. For example sample, the cost of computer forms varies in proportion to the amount of processing or the length of the reports desired.