Change management is the process of assisting individuals and organisations passing from an old way of doing things to a new way of doing things. Information Technology can be both a cause of a major change in doing business and a response to them

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Lecture 9
Abdisalam Issa-Salwe
Thames Valley University
Information systems and
Organisational Change
Abdisalam Issa-Salwe, Thames Valley University
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Change Management and IT
 Change management is the process of
assisting individuals and organisations
passing from an old way of doing things to a
new way of doing things.
 Information Technology can be both a cause
of a major change in doing business and a
response to them

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Abdisalam Issa-Salwe, Thames Valley University
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Change Management and IT (cont…)
 A new system is more than just the hardware
and the software;
 It is also the people and organisational
considerations
 Significant new systems require cultural
change
 People are often willing to change, but they
resist being changed
Abdisalam Issa-Salwe, Thames Valley University
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Project and IT
 A project is affected by a number of
factors:
 Quality of system required, in terms of
basic system requirements
 Time, both to complete the project,
and in terms of the opportunity cost of
time spent on this project which could
be spend on others
 Costs and resources allocated to the
project

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Abdisalam Issa-Salwe, Thames Valley University
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User resistance
 People might be resistance of change.
Three types of user resistance:
 People oriented:User is caused by factors
internal to the user as individual or as a
group. For example, user may need not
to disrupt their current work practice and
social groupings
 System oriented: User-resistance is
caused by factors inherent in the new
system and functionality. For example, a
poorly designed user-interface will
generate user-resistance.
Abdisalam Issa-Salwe, Thames Valley University
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User resistance (cont…)
 Interaction: User-resistance is
caused by the interaction of people
and the system. For example, the
system may be well-designed but
its implementation will cause
organisational changes that users
resist, e.g.. Reduce change of
bonuses, redundancies,
monotonous work

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Abdisalam Issa-Salwe, Thames Valley University
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Problem occurring when implement IS
 Problem that occur when
implementing a new information
system can be usually be traced to
deficiencies in the development
process. Some of these are:
 Analysis:
 the problem the system is intended to
solve is not fully understood.
 User inadequately consulted
Abdisalam Issa-Salwe, Thames Valley University
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Problem occurring when implement IS (cont…)
 Design:
 Insufficient user input
 Lack of flexibility
 Failure to perform organisational impact
analysis
 Programming:
 Insufficient time and money allocated to
programming
 Programmer supplied with incomplete or
inaccurate specification
 The logic of the program misunderstood

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Abdisalam Issa-Salwe, Thames Valley University
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 Testing:
 Insufficient time and money allocated to
testing
 Failure to develop an organised testing plan
 Insufficient user involvement
 User management do not review and sign-off
results of testing
 Conversion:
 Insufficient time and money allocated to data
conversion
 Insufficient checking between old and new file
 Process is rushed to compensate for time
overruns elsewhere
Problem occurring when implement IS (cont…)
Abdisalam Issa-Salwe, Thames Valley University
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IT and change (cont…)
 Most research seems to indicate
that the major cause of information
systems failure is inadequate user
involvement
 Users need to be involved in the
development process at all stages –
including system design

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Abdisalam Issa-Salwe, Thames Valley University
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IT and change (cont…)
 Other common cause of dissatisfaction
with information systems
 If IS mangers are technicians, not mangers,
technical ability for IS staff is no guarantee of
management skills
 Poor or non-existing planning is recipe for
disaster:
 Unrealistic deadlines would be identified
much earlier if a proper planning process
was undertaken.
 A lack of monitoring and controlling:
 Users change their requirements,
resulting in costly changes to the system
as it is being developed
Abdisalam Issa-Salwe, Thames Valley University
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IT Role in Change
 IT can play a significant role as an
enabler in the change management
process
 In some circumstance IT may be
the driving force or trigger of
organisational change
 Even when IT is not significant
factor in the actual change, it can
play an important part in the
change management process

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Abdisalam Issa-Salwe, Thames Valley University
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IT Role in Change (cont…)
 The type of products or services
that are made and and sold,
 i.e., Internet service
 The way in which products are
made:
 The use of automation and computer
aided design and manufacture, e.i.
Computer Integrated Manufacturing
(CIM)
 CIM changed the methods and cost
profiles of many manufacturing process
Abdisalam Issa-Salwe, Thames Valley University
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IT Role in Change (cont…)
 The way in which employees are
mobilised:
 Computerisation encourages de-laying of
organisational hierarchies and greater
workforce empowerment and skills.
 Using technology frequently requires change
in working methods
 The way in which services are provided:
 High-street banks encourage customers to use
‘hole-in-the-wall’ cash dispensers, or telephone
or Internet banking
 Most large shops now user computerised Point
of Sale Terminals at cash desks.
 Many companies use e-commerce selling
products and services over the Internet

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IT Role in Change (cont…)
 IT acts as an enabling technology:
 IT can produce dramatic changes in individual
businesses and whole industries. For example,
competition in the airline industry has
intensified due to information systems that
allow easy fare comparisons and booking
 Communication and coordination:
 Coordination is essential when introducing
change
 IT can facilitate this through the use of e-mail,
project management software, an internet, etc
Abdisalam Issa-Salwe, Thames Valley University
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IT Role in Change (cont…)
 Source of unity and structure:
 In times of restructuring, IS can be a
visible sign of the new situation. For
example, an organisation-wide network
perhaps with an intranet provides
evidence of and encourages acceptance
of the new situation

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Abdisalam Issa-Salwe, Thames Valley University
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DATA WORKERS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS
MANAGEMENT LEVEL MIDDLE
MANAGERS
OPERATIONAL OPERATIONAL
LEVEL MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCESMARKETING