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TITLE: THE IMPACT OF INFORMATION SYSTEMS INVESTMENT ON BUSINESS

PERFORMANCE

BACKGROUND AND MOTIVATION OF THE STUDY

Information system is the techno o!y "se# to store$ mani%" ate$ #istri&"te or create

information' The techno o!y is any mechanism ca%a& e of %rocessin! this #ata' Information

systems often ha(e si!nificant conse)"ences for the content an# the sha%e of *or+ in

or!ani,ations 'information system$ an inte!rate# set of com%onents for co ectin!$ storin!$

an# %rocessin! #ata an# for #e i(erin! information$ +no* e#!e$ an# #i!ita %ro#"cts'

B"siness firms an# other or!ani,ations re y on information systems to carry o"t an# mana!e

their o%erations$ interact *ith their c"stomers an# s"%% iers$ an# com%ete in the mar+et% ace'

For instance$ cor%orations "se information systems to reach their %otentia c"stomers *ith

tar!ete# messa!es o(er the -e&$ to %rocess financia acco"nts$ an# to mana!e their h"man

reso"rces' .o(ernments #e% oy information systems to %ro(i#e ser(ices cost/effecti(e y to

citi,ens' 0i!ita !oo#s$ s"ch as e ectronic &oo+s an# soft*are$ an# on ine ser(ices$ s"ch as

a"ctions an# socia net*or+in!

An information system 1IS2 is any com&ination of information techno o!y an# %eo% e3s

acti(ities that s"%%ort o%erations$ mana!ement an# #ecision ma+in!' In a (ery &roa# sense$

the term information system is fre)"ent y "se# to refer to the interaction &et*een %eo% e$

%rocesses$ #ata an# techno o!y' In this sense$ the term is "se# to refer not on y to the

information an# comm"nication techno o!y 1ICT2 that an or!ani,ation "ses$ &"t a so to the

*ay in *hich %eo% e interact *ith this techno o!y in s"%%ort of &"siness %rocesses'

Some ma+e a c ear #istinction &et*een information systems$ com%"ter systems$ an# &"siness

%rocesses' Information systems ty%ica y inc "#e an ICT com%onent &"t are not %"re y

concerne# *ith ICT$ foc"sin! in instea#$ on the en# "se of information techno o!y'

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Information systems are a so #ifferent from &"siness %rocesses' Information systems he % to

contro the %erformance of &"siness %rocesses'

A ter ar!"es for an information system as a s%ecia ty%e of *or+ system' A *or+ system is a

system in *hich h"mans an#4or machines %erform *or+ "sin! reso"rces to %ro#"ce s%ecific

%ro#"cts an#4or ser(ices for c"stomers' An information system is a *or+ system *hose

acti(ities are #e(ote# to %rocessin! 1ca%t"rin!$ transmittin!$ storin!$ retrie(in!$ mani%" atin!

an# #is% ayin!2 information'

As s"ch$ information systems inter/re ate *ith #ata systems on the one han# an# acti(ity

systems on the other' An information system is a form of comm"nication system in *hich

#ata re%resent an# are %rocesse# as a form of socia memory' An information system can a so

&e ca%a& e of ana y,in! an or!ani,ationa 1or &"siness2 #ata an# then %resents' it in a *ay that

he %s the "ser to ma+e &"siness #ecisions more efficient y an# effecti(e y' It is &asica y an

informationa a%% ication *hich #e%en#s on the information a rea#y in%"t *hi e ans*erin! to

a !i(en )"ery' For e5am% e$ a #ecision s"%%ort system co" # %ro(i#e6

7 Com%arati(e sa es fi!"res for one *ee+4month an# the ne5t

7 Pro8ecte# re(en"e fi!"res &ase# on ne* %ro#"ct sa es ass"m%tions

7 Conse)"ences of #ifferent #ecision a ternati(es$ !i(en %ast e5%erience

Sometimes there is an o(er a% &et*een the &roa# cate!ories of IS an# a 0SS co" # &e

ca%a& e of %resentin! information !ra%hica y thro"!h an e5%ert system or artificia

inte i!ence 1AI2' Us"a y the 0SS is "se# &y a e(e s of %eo% e *ithin a &"siness

or!ani,ation' To% e(e mana!ement "ses 0SS for strate!ic #ecisions$ mi## e mana!ement

"ses for tactica #ecision *hi e first ine s"%er(isors "se #e% oy it for #ay/to/#ay o%erationa

#ecisions'

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Therefore$ the %rocess of #ecision/ma+in! in any &"siness is an inherent y (ita as%ect not

8"st for or!ani,ations &"t a so for in#i(i#"a s *ho !reat y re y on these #ecisions for their

s"r(i(a in the hi!h y com%etiti(e arena of entre%rene"rshi%'

Objectives

The main o&8ecti(e of this st"#y is to e5amine the im%act of information system in(estmenton &"siness %erformance6 other o&8ecti(es are

9' To e5amine the contri&"tion of Information system in(estment on or!anisationa o"t%"t

:' To e5amine the contri&"tion of Information System in(estment on or!ani,ationaefficiency

;' To e5amine the contri&"tion of Information System in(estment on #ecision ma+in!

Resea c! "#esti$%s

9' -hat are the contri&"tions of Information system in(estment on or!ani,ationa o"t%"t