Information
Systems in Organisations |
MSc
Management Assessment 2007-2008. |
Author:
Alistair Nicholas Bancroft |
Chapter 4 Implication Risk |
|
The implementation of IT in an organisation can result in dramatic failures, with the success of implementation potentially dependent “on a large number of smaller decisions…rather than on a few large decisions” (Mata et al, 2001, p493) by the organisation. As IT becomes more generic, it is important that the organisation has a strategy in place and become involved in ISs to develop a strong understanding of the implications involved (Marquis 2006, pp14-15). Change requirements must be considered when implementing a new IS. Organisations have to consider whether to wait longer, when IT is cheaper and bugs have been ironed out, or invest early in the hope of being first to benefit from its implementation; as Carr notes, “the longer you wait to make an IT purchase, the more you’ll get for your money” (2003, p49). Managing the overall budget is important to help work out what can be gained from the money that has been invested, considering both initial investment and the long term costs. Employees must be considered as the end user when introducing the technology, as Marquis comments “executives need to approach IT as a people and process issue… focus needs to be on quality… the usefulness of a given process” (2006, p15). If appropriately implemented and managed, the IS has the potential to be fully utilised; resulting in a new kind of competitive advantage. However, it all depends on the end user, their understanding of the software and the intensity of the training involved; which must be consider in the initial set up in ease of use and the cost, in lost hours of productivity. The
London ambulance service is a prime example of an organisation that
failed to implement a new IS successfully, in the ‘system disaster’
of October 1992. The downfall in the implementation of the IS was a
result of a split between management and staff leading to a “demoralised
workforce” (Page et al: cited by Goulielmos 2003, p320). Management
overlooked signs of any errors, and bad planning resulted in having
less time to complete on time, which led to reduced time for quality
control, end user training and testing (Bray 1993; cited by Goulielmos
2003, p320). Goulielmos notes that the “technical factors had ultimately
very little to do with the IS failure” (2003, p320), thus, emphasising
the failures of the management of the project. In this situation it
led to the unfortunate death of 20-30 people, however, not progressively
planning IT implementation in an organisation could lead to bankruptcy
and unemployment when the initial intentions were to improve productivity
and gain an advantage. |
|