CHAPTER ONE

INTRODUCTION

1.1      Background of the Study

Services represent substantial part of business output and investments. In providing these services, Management Information System (MIS) is employed to facilitate the services, which represents a substantial portion of corporate spending. The objective of such investments is to create business value. But in order for any investment to have a positive impact on business value, additional revenues need to be created or overall costs reduced. Thus, when evaluating investments in services that have potential contributions to the improvement of business performance, the interactions of costs among the various business processes and activities need to be considered (Roztocki and Weistroffer, 2008).

Investment in information technology can have dramatic effects on both the internal and external operations of a business organization as well as academic institutions. Internally, improved IT systems can enhance and strengthen organizational infrastructure and capacity by increasing employees’ efficiency; service coordination; information sharing between departments, financial record keeping and tracking of an organization’s production and impact. Externally, information technology solutions can fundamentally transform business organization service delivery (Allison, 2010).