Effect of information systems on the achievement of organizational goals: A modern control theory approach

The study develops an analytic method of analysis to explicitly determine the effect of alternative information systems on the attainment of organizational goals. Model formulation is based on optimal control theory, coupled with the behavioral aspects of organizational team theory. The model incorporates a multiperiod, multiperson, stochastic environment with decentralized team decisionmaking. An illustration to demonstrate how the model can be used for information system evaluation shows its ability to explicitly isolate the effect of specific information system design alternatives on the achievement on organizational goals. This approach provides the Information System designer the ability to determine optimal (in the sense of organizational goal achievement) information systems. In the specific settling used, the effect of alternate information systems on the achievement of organizational goals varied both with regard to particular decision makers and with respect to time.