Research On The Theory And Approaches For The Evaluation Of Information System Applications In The Manufacturing Industry

Researches on the evaluation of information systems (IS) applications are important to the effectiveness of the investment on IS and to the implementation of the Information Project of the Manufacturing Industry. This paper presents approaches for the evaluation problems of IS applications in various stages of the implementation of the project. These approaches can be applied to the feasible analysis of IS applications at the initial stage of an information project, to the decision of the order in which the IS applications are put into use at the implementation stage, to the evaluation of the project effectiveness after the project has been finished. The main contents of the paper are as follows:1. A systematic approach to estimate the potential benefit of an IS application to be introduced is proposed. It considers the synergy among the candidate IS applications and the applications already applied. A decision model is constructed which considers the synergistic effects systematically and thus facilitates the feasible analysis of the IS applications.2. Four approaches are presented for the selection and the implementation order decision of the IS applications. Namely selecting IS applications through the analysis of the following factors: (1) the return characteristics of the applications, (2) the return characteristics and the competitive factors, (3) the competitive factors and synergy, (4) the investment constraint and synergy. The characteristics and the relations of the approaches are analyzed. To improve the revenue of the project, a company may choose the appropriate approach to apply from the company's characteristics and data availability.3. Applying the principles of systems engineering, the contents and the characteristics of the system formed by all applied IS applications (SFAISA) are discussed. The hierarchy structure and the mathematic model for the evaluation of the SFAISA are proposed. The model considers the following factors which affect the success of the SFAISA: number of IS applications applied, the implementation level and the operating scope of each application, the goal of the SFAISA, and the characteristics of the company. The evaluation indexes and the approach adequate to applying in China are put forward and the evaluation software was developed.4. Through the analysis of references and further research, the aims of the IS projects are divided into three types: to obtain competitive advantage, to achieve the goals of the business strategy, and to gain economic benefit. The indexes and evaluation method for each type are given. After an IS project has been finished, the company may make reference to or apply these methods to improve the evaluation of the return.Our university takes part in the foundation project of the Department of Science and Technology by working together with The Standards Research Center of China and The Research Institute of Mechanical Science of China to write "The evaluation criteria of IS applications of the manufacturing industry". The theory and approach presented in this paper for the evaluation of the SFAISA constitute the main frame of the evaluation criteria (The edition under riview, April, 2002). The approach is applied in the evaluations of the SFAISA in two factories and the results indicate that the approach is feasible and effective.