Assessment of the Necessary Alterations in a Company’s Information System Arising from the Business Environment Change Cover Image

Оценка на необходимите изменения в информационна система на фирма, породени от промяна на бизнес средата
Assessment of the Necessary Alterations in a Company’s Information System Arising from the Business Environment Change

Author(s): Valentin Kisimov
Subject(s): Economy
Published by: Стопанска академия »Д. А. Ценов«

Summary/Abstract: Information systems for companies/ organizations are created ever more rarely in the world, starting from scratch - from a state of complete absence of any prior ICT systems. Numerous methodologies described in the specialized literature about designing information systems are related to the newly created ones. The most common case is when there is an information system, which should undergo some alterations as a result of new changes entering into the business environment of the company, the information system is built for. This necessitates the existence of business flexibility requiring the appropriate/flexible support from the information and communication technology (ICT). The term „Total Cost of Ownership – (TCO) exists in the world literature and in practice, and it is a financial measure to evaluate the direct and indirect cost of a service in the information system. Although it is used in many industries, besides ICT, this unit is a comprehensive assessment, measurable in the price of existence and operation of a given service. This is the price that is registered. However, there are other parameters related to the introduction of new functions into one information system, which are not included in the TCO, such as „Time needed for entering the market”; „Efforts related to creating human potential of the company/organization”; „Social commitments to existing staff (how to use the existing staff and not to dismiss part of it and to enlist new people)”; „Competitive advantage”, „Creating the capacity of the company/organization”. Having in mind these considerations, the "Comprehensive alteration” indicator is introduced in this research. This indicator represents the result of the introduction of each alteration (business and ICT), due to changes in the business environment in which a company/organization operates. This indicator can be implemented in two stages - before the introduction of the business alteration and after the alteration introduction is made. „The comprehensive alteration” represents an alteration in the business strategy, business policy, business processes, as well as changes in all components of the ICT architecture, where necessary. Four parameters are developed for the quantitative evaluation of the „Comprehensive alteration” indicator, describing what would be (or what are) the results of applying the relevant alteration: „Human resources (needed for both the business alterations as well as for the changes in the information system)”; „ICT resources”; „Duration of alteration’s introduction”; „Price of the alteration”. A set of measures are suggested for each parameter. An approach to detail each of these parameters is suggested, so that dynamism of the valuation can be achieved depending on the concrete economic and technical conditions.

  • Issue Year: 2009
  • Issue No: 3
  • Page Range: 16-23
  • Page Count: 8
  • Language: Bulgarian