Business Driven Technology
Business Driven Technology
7th Edition
ISBN: 9781259567322
Author: Paige Baltzan Instructor
Publisher: McGraw-Hill Education
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Chapter 4, Problem 1OC

Explanation of Solution

Difference between Efficiency MIS metrics and Effectiveness MIS metrics:

Efficiency MIS MetricsEffectiveness MIS Metrics
MIS Efficiency metrics measures the performance of MIS like throughput, transaction speed, and system availability.MIS Effectiveness metrics measures the impact that MIS has on business processes and activities which includes customer satisfaction and customer conversion rates.
Efficiency is focused on the extent to which a firm uses its resources in an optimal way.Effectiveness is focused on how well a firm achieves its goals and objectives.
Efficiency is addressed as doing things right.Effectiveness is addressed as doing the right things.
Efficiency MIS metrics focus on the technology itself and they do not always guarantee effectiveness.Effectiveness MIS metrics are determined according to an organization’s goals, strategies, and objectives.

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