ENDS/MEANS (E/M) ANALYSIS

Ends/means analysis was developed by Wetherbe and Davis at the MIS Research Center at the University of Minnesota. It can be used to determine information requirements at the organizational, functional, or individual manager level. (Wethtrbe, 1988) (Wetherbe and Davis 1982).

This methodology is based upon general systems theory and focuses first on the outputs (goods, services, and information) called ends, which are generated by each organizational process. The methodology then defines the inputs and processes termed means, which are used to accomplish the ends. The ends from one process are the means to some other process. One example is an inventory process that provides budget information for other processes, or a marketing process that provides products to customer processes.

Ends/means analysis is primarily concerned with the effectiveness and efficiency of generating outputs from processes. Effectiveness is the degree to which the outputs from a process fill the input criteria of the other processes. Efficiency is the amount of resources used to accomplish a given end result, compared to the minimum amount of resources actually required to accomplish the same result.

The ends/means analysis model provides two types of information, effectiveness and efficiency. Effectiveness information is based upon what constitutes output effectiveness or what feedback is needed to evaluate this effectiveness. Efficiency information is based upon what constitutes input and transformation efficiency or what feedback is needed to evaluate this efficiency.

Wetherbe (1988) gives an example of an inventory manager who specified these information requirements during an ends/means analysis:

Ends specification: The outputs, or end result, of the inventory management function is an inventory kept as low as possible with an acceptable level of availability.

Means specification: The inputs and processes to accomplish the ends are the following: forecasts of future needs, amounts on hand and on order, items that are obsolete or in unusable condition, safety stock policy, demand variations, cost of ordering and holding inventory, cost of items, and stockouts.

In this example the efficiency measures needed for inventory management are: the number and cost of orders placed, cost of holding inventory, and loss from disposal of obsolete or unusable inventory. Efficiency will depend on the cost to attain a given level of effectiveness. Effectiveness measures needed for inventory management in this example are the number and seriousness of stockouts. (Wetherbe, 1988)

This methodology has been used in a wide range of organizational settings with positive results. Information requirements determined by this methodology are usually more extensive than those generated using other methodologies. The problem with most information planning tools is that they usually result in an IS that provides more efficiency-oriented information than effectiveness-oriented information. While most would agree that it is more important to be effective than to be efficient, ends/means analysis brings out effectiveness information requirements as well. These requirements are typically interdepartmental, making this methodology especially useful for a database planning effort.

This method focuses on improving the organization's efficiency by means of information systems suited to its processes, but does not examine their suitability for the organization's goals.