Measuring organisation IS/IT effectiveness in the Australian manufacturing industry : an overview of IT manager perspectives

The objective of this research was to examine the extent to which IS/IT effectiveness is measured in manufacturing industries in Australia. IS/IT (information system/information technology) is an integral yet costly investment for most organisation and its investment are substantial and growing. Since many companies have failed to achieve and maximise the expected benefits of their IS/IT investment, there is a need to ensure that it is providing its maximum. Accordingly, the measurement of IS/IT effectiveness is an essential process in organisations. From a review of related literature three main areas of interest were identified. These are the role of IS/IT in organisations, IS/IT investment management and IS/TT effectiveness measurement. A quantitative method was implemented in this research. In the absence of an available validated instrument, a questionnaire was developed, refined and administered to 300 engineering manufacturing industries across Australia. The key finding of this research was generally Australian manufacturing industries are not well prepared in relation to the measurement of their IS/IT effectiveness measurement. These organisations generally view their IS/TT as a necessary business expense and characterise their IS/IT as current in technology without getting too far ahead of their competition. Because of this, they are more likely to not allocate their time and money for measuring IS/TT effectiveness. As a consequence of the fmdings of this research, it is recommended that engineering manufacturing industries need to take into consideration of the measurement of IS/IT effectiveness. Appropriate time and funding should also be channelled to ensure that IS/IT brings the maximum of both tangible and intangible benefits to the organisation.