On The Applicability of Data Envelopment Analysis for Multiple Attriliute Decision Making in the Context of Information Systems Appraisals

Abstract

This article elaborates on the applicability of basic and extended data envelopment analysis (DEA) models for various information system (IS) decision use-cases including illustrative examples from an enterprise resource planning (ERP) software investment appraisal. The usage of data envelopment analysis models and their extensions for IS decisions remains limited. This omission seems critical in particular for two reasons. First, organizational studies have shown that in practice business management fails to appreciate the portfolio of investment appraisal techniques available. Second, DEA based methodologies, especially new extensions, promise valuable insights to support the complex IS decision problem. The results indicate DEA applicability in a number of use-cases, e.g. for structural analysis of system alternatives or validation of ranking outcomes.