Innovation and Its Application
One definition of innovation is the process by which solutions are created for complex problems. Another perspective sees innovation as creating something entirely new that takes situations and people down a path not previously conceived. Read this section, which discusses innovation and several practical aspects of bringing new ideas to fruition, and demonstrates case studies of successful applications.
The IS budget provides a reference point of efficiency at the firm level instead of the system level. An organization with relative less IS budget when comparing with similar organizations is considered to be more efficient since it achieve the same level of services (output) with less resource (input). The advantage of using IS budget as a reference is that the information needed can be obtained relatively easily from financial documentation.
IS budgets, as measure of efficiency, have some significant limitations however. For one, assuming that two organizations are very similar is an over-simplification of reality. Moreover, a firm's IS budget will depend on the systems it currently has, as well as the ones it is currently developing.