Information Technology Reference
In-Depth Information
Efficiency is a relative term used to compare systems. For example, a hybrid gasoline
engine for an automobile or truck can be more efficient than a traditional gasoline engine
because, for the equivalent amount of energy consumed, the hybrid engine produces more
energy and gets better gas mileage.
Effectiveness
is a measure of the extent to which a system achieves its goals. It can be
computed by dividing the goals actually achieved by the total of the stated goals. For example,
a company might want to achieve a net profit of $100 million for the year using a new
information system. Actual profits, however, might only be $85 million for the year. In this
case, the effectiveness is 85 percent (85/100 = 85 percent).
Evaluating system performance also calls for using performance standards. A
system
performance standard
is a specific objective of the system. For example, a system performance
standard for a marketing campaign might be to have each sales representative sell $100,000
of a certain type of product each year (see Figure 1.4a). A system performance standard for
a manufacturing process might be to provide no more than 1 percent defective parts (see
Figure 1.4b). After standards are established, system performance is measured and compared
with the standard. Variances from the standard are determinants of system performance.
effectiveness
A measure of the extent to which a
system achieves its goals; it can be
computed by dividing the goals actu-
ally achieved by the total of the
stated goals.
system performance standard
A specific objective of the system.
Figure 1.4
System Performance Standards
$150,000
125,000
Good
Standard=$100,000
100,000
Sales
Bad
75,000
50,000
25,000
Adams
Brown
Davis
Thomas
Salesperson
(a)
4
3
Defective
parts (%)
2
Bad
Standard=1%
1
Good
1
2
3
4
5
6
7
8
9
10
11
12
13
Production day
(b)
