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Measuring success in Information Systems Essay

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Businesses are run in a majority of cases considering primarily money. Keeping costs as low as possible are the rule for them. And when it comes to spending money in IS and IT, it does not get too different. Companies ask themselves “Was the money spent in the implementation of the new IS worthy?” or in doubt if the benefits are equal or better than the money invested (Should I change my IS system? How can I know if the IS department is helping my company to improve its business or not?). For these and many other reasons, measuring the success or failure of IS not just in a financial perspective, but also considering technical side and user viewpoint is important.

Various improvements in almost every kind of business in the last fifty …show more content…

As we can see, Information systems (IS) and information technology (IT) are closely related but they are not the same thing. However their differences are not a priority in this study, as the IS and IT environment are.
By a Gartner Group study (2012), worldwide spend in IT was at US$ 3.5 trillions. Considering the same study, the number in 2013 was of approximately US$ 3.6 trillions and the 2014 forecast is of US$ 3.8 trillion dollars. It seems obvious that IS and IT are a big part of todays business. In the same study, it was found that Software based companies (software publishing and internet services) spent, in average, 8.8% of their revenue in IT, while Banking and financial services companies spent 6.6% of their revenue with IT. These numbers suggest the importance that IS and IT have in business nowadays. According to Gartner Group Worldwide IT Spending Forecast, in 2013 it was spent US$ 3.6 trillions in IT and the projection to 2014 is to growth of 3.1%, or US$ 3.8 trillions. These are staggering numbers and the trend is for even more growth, achieving approximately US$ 4.24 trillions in 2017. This numbers should tell the weight that IS and IT carry in businesses.
Some argue that there are not many facts that IT really improves a business functioning. But if this area does not bring improvements, why are IS and IT generating so much money?
Considering the importance of this part for the

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