The document discusses change management in relation to information technology, emphasizing that successful changes require consideration of not just systems but also cultural and organizational factors. It identifies common causes of user resistance and problems encountered during the implementation of new information systems, often linked to insufficient user involvement. Additionally, it highlights the role of IT as both an enabler and a driving force behind organizational change, impacting processes, services, and communication.

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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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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
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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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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.
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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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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
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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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 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…)
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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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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
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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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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
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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
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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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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