EVALUATION OF IMPLEMENTATION FOR ENTERPRISE

INFORMATION SYSTEMS


Umarova Jamal , 3th year student of the specialty " 5B050700 - Management" Sh . A.Baitursynov

Irina Morozova , Senior Lecturer , Department of Information Systems

KSU . A.Baitursynov


          In modern conditions, there is the fact of the use of information systems in all sectors of the economy , providing strong revenue growth of enterprises and the efficiency of the organization. There are some of the economic date on the implementation of integrated information systems.

As a result of the implementation of information systems in the enterprise costs associated with the purchase of raw materials decreased by approximately 5 %, the level of customer service grow by 10 and 25%, labor productivity increases by 7-19 % guarantee of delivery times increased to 95 %, for 30-40% of the time of appearance of the product is reduced to 50 % increase in profits. Return on investment in the implementation of such an integrated information system resources usually occurs within 4-5 years. The cost structure for the implementation of ERP systems such as the following :

-         The cost of equipment - 10 %;

-         Software - 15%;

-         On the actual implementation - 75 %.

The introduction of the company usually incurs costs related to the operation and development of an integrated information system about 2% of the sale volume of the company . According to the company APICS each month of the firm without an integrated information system MRP II - is a loss of 100 to 300 thousand dollars. USA. At issue in this case, of course comes to large corporations. According to the statistics firm APICS, the introduction of MRP II allows a 60 % reduction in inventories. It should be noted that the date and approval of company - owned developer of the system and may contain inflated estimates for promotional purposes .

Assessing the options for investment in the project for the introduction of IP in the enterprise, you can use the well-known method of assessing the effectiveness of capital investments , called " The development of the capital budget " (Capital Budgeting - NE ) . This assessment should be carried out qualitative and financial analysis of each draft of IS implementation proposed for consideration.
In the method NE options are evaluated by comparing the estimated costs and potential benefits (Costs and Benefits), expressed in terms of additional cash flows (Incremental Cash Flows). The costs associated with investing in the project, are treated as cash expenditures. They are include:

-         The cost of purchasing equipment and materials;

-         Operating costs.

Expenses for the acquisition of IP include funds directed to obtain ownership of the assets included in the structure of IP. This takes into account the actual payment for the purchase of assets. By operating costs include periodic (annual ) costs associated with the use of the acquired assets (IP).

When comparing the costs and benefits of the project IS implementation should be assessed additional cash, cash inflows ( + ) outflows (- ) associated with the implementation of the investment project (Incremental Cash Flows from Investments). In this case, to the costs (Costs) may include:

-  The cost of acquisition of IT is not necessarily equal to the purchase price;

- Annual operating costs associated with the operation of IP;

- Damages for loss of depreciation in the sale of computer equipment replace;

- Taxes on gains from the sale of obsolete computer equipment;

- Increasing the amount of the payment of income tax in relation to its height, due to the introduction of IP;

- Reducing the size of the profits from the sale of obsolete computer equipment;

- Costs associated with deductions for capital repairs.

In turn, the benefits (Benefits) are:

-         Proceeds from the sale of obsolete computer equipment;

-         Revenue associated with a reduction of costs in connection with the introduction of IP;

-         Increase the size of profits in connection with the adoption of new assets to the balance ;

-         Tax benefits(if any) ;

-         Additional revenue resulting from the introduction of IP.

All proceeds after the introduction of IP and all expenses incurred in connection with the purchase and implementation of IP, as well as related to its operation , according to the lists should be given to a current year t by discounting procedure, ie, by multiplying the discount x


x = 1 / (1 + r) 2

 

where r - the discount rate is determined by taking into account the bank interest rates , missed opportunities and risks in project implementation ; t - current year (t = 1,2, ..., n).

The same should be done with the additional cash flows associated with the planned for gain.

Optimize the process, you can move on the criteria for the parameters, such as time - cost - quality.