This document discusses key metrics for measuring the value and productivity of information systems. It defines productivity as the ratio of output to input, with higher productivity indicating greater output from the same level of input. It describes return on investment (ROI) as a measure of the gain or loss generated by an investment relative to the amount invested. The document also mentions other metrics like earnings growth, market share, customer awareness and satisfaction, and total cost of ownership. Finally, it notes that managers must consider the risks associated with information systems projects.

1. Royal University of Phnom Penh
MIS-A2-Group6
Slide: 39-42
2012-2013
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2. Productivity
 Ratio between output and input
 Productivity = (output / input) x 100%
 A measure of output > A measure of input
=> greater productivity
 A measure of output < A measure of input
=> lower productivity
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3. Return on investment and the
value of information system
 Return on investment (ROI):
o One measure of IS value
o Measures the gain or loss generated on an investment
relative to the amount of money invested
o Is usually expressed a percentage
For example: Say $1,000 is invested and it earns $1,250. This is a
gain of $250. Divide the $250 by $1,000 (the amount invested)
gives an ROI of 25%.
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4. Return on investment and the
value of IS (cont.)
 Earnings growth
o The increase in profit that the system brings
 Market Share and speed to market
o The percentage of sales that a product or service has
in relation to the total market
For example: If consumers buy 8 widgets from Company A, 2
from Company B, and 2 more from all other suppliers,
Company A can claim a 67% market share for widgets.
Company B has a 16% market share.
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5. Return on investment and the
value of IS (cont.)
 Customer awareness and satisfaction
o Measurement is based on feedback from internal
and external users
Total cost of ownership
o Is the sum of all costs over the life
(hardware/software, the research, development,
training, operation, …etc)
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6. Risk
o Managers must consider the risks of
designing, developing, and implementing
system
o Information systems can sometimes be
costly failures
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7. Thanks for paying attention to
my group