Downsizing IS is rapidly emerging as one of new information systems of the 1990s that involves (1) the cost reduction, (2) the reduction of MIS staff, and (3) the transfer of IS functions to end - users. As downsizing is relatively new information systems, little is known about the causes, the process, or the consequences of downsizing. Case study was chosen as the research methodology of this study. The downsizing IS of Namsun Aluminum Co. Ltd. in Taugu City was chosen for the exploratory case study. The detailed and qualitative analyses to Namsun were performed with the use of observation, participation, and interview techniques. Consequently, the causes, the process, and the consequences of Namsun's downsizing were analyzed and discussed. As for the main cause, downsizing was started with the purpose of cost reduction. The important consequences of downsizing IS are as follows : (1) About 700 million won reduction in the cost of initially developing the downsizing was achieved. (2) Downsizing is performing Namsun's mission critical applications. (3) Namsun's downsizing could be considered to be SIS(strategic information systems).
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