This document discusses ICT-enabled organisations and a model for change management. Some key points:
1. Many planned change interventions in the 1990s using approaches like BPR and ERP failed to achieve objectives or realize benefits, incurring high costs. This was often due to a linear view of change that ignored the emergent nature of change.
2. Interviews with consultants found that client ignorance of IT, vendor indifference to client needs, and consultants focusing on technical skills rather than strategic understanding contributed to IT project failures.
3. Two case studies showed how ICT could enable successful change: a bank used BPR and a web strategy to enter new markets profitably, though later struggled; an
Never before has Information Technology (IT) played a more important role in bringing competitive advantage to an organization. Yet IT has never before been more complex. In the past, the mainframe paradigm provided turnkey solutions to complex business problems. The functionality was provided by
the software vendor, which may have also been the hardware vendor. The business processes were adapted to this functionality. As these processes evolved it was discovered that the systems were not sufficiently flexible or adaptable to meet the new demands of the business. The introduction of distributed processing provided a means to deal with the inflexibility and monolithic nature of these legacy
applications.
Critical success factors for ERP implementation projects include:
1) Strong executive support and leadership.
2) Clear goals and objectives aligned with business needs.
3) Careful selection of the ERP system that best fits the organization.
4) Effective project management with dedicated resources and project champions.
The above article was published in the May 2008 edition of FEDTECH Magazine. It summarizes the key priorities of Federal CIOs as captured in the Information Technology Association of America's (now Tech Amercia) Survey of Federal CIOs, dated February 2008, entitled "Transforming IT to Support the Mission." The article is one in the series I write entitled "The Business of IT."
This document summarizes a research paper on the role of information technology in enabling business process reengineering. It first defines business process reengineering and discusses how IT is an essential enabler of radical business process changes. It then reviews several past studies that have examined the relationship between IT adoption, infrastructure, and BPR. The document outlines some key principles of using IT to reengineer business processes, such as organizing around outcomes rather than tasks. Finally, it discusses how IT can help reduce coordination costs and enable new process structures through capabilities like reducing mediation and increasing collaboration between functions.
The Relationships Between IT Flexibility, IT-Business Strategic Alignment and...IJMIT JOURNAL
What seems to still be the main concern for managers in the corporate world across the globe is IT business strategic alignment. This study seeks to address the research problem about the lack of alignment between IT and business strategies. Upon reviewing various literature on this subject, it was found that IT flexibility is one of the most vital factors that help sustain strategic alignment. The researcher upon having a detailed discussion on the possible areas associated with the present body of knowledge has discovered gaps in the studies that have been undertaken on strategic alignment and IT flexibility. This is because IT capability in relation to IT flexibility and strategic alignment has been ignored in the previous studies. As a result, this research proposes a relationship between IT flexibility (i.e., modularity, connectivity and compatibility), IT capability, and strategic alignment.
Business innovation and transformation with ITLeon Dohmen
As a cure for the poor results of business innovation in which IT plays an important role, this article presents IBAFrame. IBAFrame stands for the IT Benefits Accelerator Framework. IBAFrame ensures, if applied properly, that innovations in which IT plays an important role, will have better results and an improved use of the IT possibilities. IBAFrame combines knowledge and insights from the professional fields project management, change management and IT auditing.
Trabajo desarrollado para crear un ambiente de aprendizaje apoyado con TIC para la Gestión de TI en las organizaciones. Realizado en el año 2010, en el programa de Maestría en Ingeniería, área Sistemas y Computación, Univ. de los Andes.
ERP II systems aim to integrate information, processes, and functions both within and between companies in real-time. This allows for data to be shared anywhere at any time accurately, regardless of location, borders, or language. Key needs driving the adoption of these extended enterprise systems include speed of execution, adaptability, flexibility, and responsiveness to better serve customers and the supply chain. The future of ERP II will focus on clear information flows within and between organizations, differentiating solutions with bottom-line impact, utilizing web services to link applications and exchanges, and establishing standards.
Never before has Information Technology (IT) played a more important role in bringing competitive advantage to an organization. Yet IT has never before been more complex. In the past, the mainframe paradigm provided turnkey solutions to complex business problems. The functionality was provided by
the software vendor, which may have also been the hardware vendor. The business processes were adapted to this functionality. As these processes evolved it was discovered that the systems were not sufficiently flexible or adaptable to meet the new demands of the business. The introduction of distributed processing provided a means to deal with the inflexibility and monolithic nature of these legacy
applications.
Critical success factors for ERP implementation projects include:
1) Strong executive support and leadership.
2) Clear goals and objectives aligned with business needs.
3) Careful selection of the ERP system that best fits the organization.
4) Effective project management with dedicated resources and project champions.
The above article was published in the May 2008 edition of FEDTECH Magazine. It summarizes the key priorities of Federal CIOs as captured in the Information Technology Association of America's (now Tech Amercia) Survey of Federal CIOs, dated February 2008, entitled "Transforming IT to Support the Mission." The article is one in the series I write entitled "The Business of IT."
This document summarizes a research paper on the role of information technology in enabling business process reengineering. It first defines business process reengineering and discusses how IT is an essential enabler of radical business process changes. It then reviews several past studies that have examined the relationship between IT adoption, infrastructure, and BPR. The document outlines some key principles of using IT to reengineer business processes, such as organizing around outcomes rather than tasks. Finally, it discusses how IT can help reduce coordination costs and enable new process structures through capabilities like reducing mediation and increasing collaboration between functions.
The Relationships Between IT Flexibility, IT-Business Strategic Alignment and...IJMIT JOURNAL
What seems to still be the main concern for managers in the corporate world across the globe is IT business strategic alignment. This study seeks to address the research problem about the lack of alignment between IT and business strategies. Upon reviewing various literature on this subject, it was found that IT flexibility is one of the most vital factors that help sustain strategic alignment. The researcher upon having a detailed discussion on the possible areas associated with the present body of knowledge has discovered gaps in the studies that have been undertaken on strategic alignment and IT flexibility. This is because IT capability in relation to IT flexibility and strategic alignment has been ignored in the previous studies. As a result, this research proposes a relationship between IT flexibility (i.e., modularity, connectivity and compatibility), IT capability, and strategic alignment.
Business innovation and transformation with ITLeon Dohmen
As a cure for the poor results of business innovation in which IT plays an important role, this article presents IBAFrame. IBAFrame stands for the IT Benefits Accelerator Framework. IBAFrame ensures, if applied properly, that innovations in which IT plays an important role, will have better results and an improved use of the IT possibilities. IBAFrame combines knowledge and insights from the professional fields project management, change management and IT auditing.
Trabajo desarrollado para crear un ambiente de aprendizaje apoyado con TIC para la Gestión de TI en las organizaciones. Realizado en el año 2010, en el programa de Maestría en Ingeniería, área Sistemas y Computación, Univ. de los Andes.
ERP II systems aim to integrate information, processes, and functions both within and between companies in real-time. This allows for data to be shared anywhere at any time accurately, regardless of location, borders, or language. Key needs driving the adoption of these extended enterprise systems include speed of execution, adaptability, flexibility, and responsiveness to better serve customers and the supply chain. The future of ERP II will focus on clear information flows within and between organizations, differentiating solutions with bottom-line impact, utilizing web services to link applications and exchanges, and establishing standards.
This independent survey was commissioned by
Savvis and conducted with 550 CIOs, IT Directors,
Heads of IT and Senior IT Managers of global large
enterprises based in the USA (200), UK (100),
Germany (100), Japan (50), Hong Kong (50) and
Singapore (50), and was completed in August
2012. The research was conducted by Vanson
Bourne, a research based technology marketing
consultancy offering clients analysis and advice
based on incisive, rigorous research into their
market environment. The research used a
combination of online fieldwork methodology and
telephone interviewing. All research carried out by
Vanson Bourne adheres to the latest MRS Code
of Conduct. Demographic detailing respondent
communities includes industry sector, country
in which the respondents were based, and size
of business.
A new dual-model approach to IT management is proposed that separates IT functions into "Factory IT" and "Enabling IT". Factory IT aims to drive efficiency and reduce costs through standardization, lean techniques, and automation. Enabling IT focuses on supporting innovation through rapid experimentation, close business collaboration, and enabling new technologies like data analytics and Web 2.0 tools. The document discusses how each model operates and the organizational changes needed to effectively implement this new dual-model approach to IT leadership and governance.
This document analyzes the role of the Chief Information Officer (CIO) and whether the CIO brings value to an organization. It begins with an executive summary outlining the report's analysis of the CIO role, perspectives on the role, and forecasts for the future. The report then provides background on the evolving CIO role from operations to strategic partner. It analyzes the CIO role using Porter's Five Forces model and finds prospects for maintaining the CIO role are high if CIOs remain sensitive to communicating with CEOs and CFOs to align with corporate needs. Weaknesses include some CEOs viewing the CFO as better positioned to authorize IT investments.
Information management and enterprise architecturenvvrajesh
The document discusses practical enterprise information management. It describes EIM as managing data in all forms as a strategic asset. A good EIM program results in integrated, accurate and timely enterprise data through policies, frameworks, technologies and processes. These include data models, data lineage, data quality, data profiling and stewardship. The document recommends aligning EIM with enterprise architecture and developing conceptual, logical and physical data models across three layers to support the information architecture.
Leveraging IT to create business agility: Why leading IT organisations are re...3gamma
CIOs are under pressure. Some analysts are even predicting the end of the CIO role. In the light of digitalisation and an ever-increasing need for business agility, IT is becoming an embedded part of the business. Information technology is no longer just a utility but a deeply integrated driver of products and services within most companies. An ever-changing environment means that old assumptions on how to deliver IT services need to be revisited if the IT organisation is to remain relevant.
This document discusses strategic planning and information systems strategy. It covers topics like strategic planning, vision and business needs, Earl's grid, McFarlan's application portfolio, and business process reengineering. For McFarlan's application portfolio, it describes assessing existing, planned and potential IT systems based on their current and future importance to the business. It also discusses Earl's reasons for having an IT strategy and categorizing systems as high potential, strategic, key operational or support.
Success Factors for Enterprise Systems in the Higher Education Sector: A Case...inventionjournals
This document summarizes literature on critical success factors for implementing enterprise systems in higher education. It finds that while many studies have identified success factors for commercial sectors, the unique characteristics of higher education including decentralized structures, non-uniform cultures, and focus on teaching and research rather than business processes, suggest a more specialized set of factors may apply. The document reviews literature on challenges implementing enterprise systems in higher education due to misalignment with academic culture. It then presents a case study of a large Australian university to determine which proposed critical success factors are most relevant for successful enterprise system deployment in higher education.
Implementing Erp Systems In Small And Midsize Manufacturing FirmsDonovan Mulder
The document discusses a study on implementing enterprise resource planning (ERP) systems in small and midsize manufacturing firms. It presents profiles of 4 case study companies that implemented ERP systems. The companies ranged in annual revenue from $55-200 million.
It then outlines the ERP implementation process explored in the case studies, dividing it into 3 phases: planning activities, justification and selection activities, and installation activities. For each phase, it discusses the findings from the case studies and presents propositions related to the activities within each phase. The goal is to help understand what leads to successful ERP implementations.
The relationship between the Chief Information Officer (CIO) and the Chief Executive Officer (CEO) is crucial for effectively utilizing information technology for competitive advantage. As IT has evolved from a support function to a strategic resource, the roles of the CIO and CEO have also evolved. The development of the CIO position was a response to the need for an executive to oversee all aspects of a firm's IT and report directly to high-level executives. Effective CIOs require both business and technical knowledge to develop IT strategies. Similarly, CEOs have recognized the strategic importance of IT, though some older CEOs remain skeptical. The partnership between CIO and CEO is necessary for merging their respective knowledge and perspectives to effectively manage IT
This document summarizes a research paper that studied the enterprise architecture (EA) benefit-realization process. The paper conducted an in-depth case study to clarify how EA benefits are realized. The study found that EA benefits are realized through a long chain of intertwined activities from the initiation of the EA program when comprehensive understanding starts to form, to years later when measurable outcomes like cost savings materialize. Organizations benefit from EA through various means along this process. The paper suggests that to maximize benefits, EA programs should incorporate strategies to realize benefits at all stages of the process.
The document discusses IT best practices for mergers and acquisitions (M&A) in the communications services provider (CSP) industry. It recommends involving IT early in the M&A decision process to better estimate integration costs and timelines. It also suggests assessing cultural fit between merging IT departments. During planning, companies should make an inventory of merging technologies, processes, and people, and document existing IT systems. For execution, the document advises following an M&A roadmap in phases and avoiding incomplete decommissioning of redundant assets.
Digital Fuel- Achieving IT cost visibility-Id gresearch cio_study_1009yisbat
The document discusses the challenges organizations face in achieving visibility into their IT costs. It found that while having detailed cost visibility is important, over half of respondents were less than satisfied with their current level of visibility. The biggest challenges are a lack of an explicitly defined IT cost model and difficulties obtaining detailed cost breakdowns and mapping costs to specific services. Achieving true cost visibility requires new processes and tools to capture both direct and indirect costs associated with delivering various IT services.
The document summarizes key concepts from the first chapter of the book "Managing and Using Information Systems: A Strategic Approach – Fifth Edition" by Keri Pearlson and Carol Saunders. It discusses the importance of aligning business strategy, information systems, and organizational design. It introduces the Information Systems Strategy Triangle and various business strategy frameworks including Porter's generic strategies and models for dynamic competitive environments. The role of the general manager in information systems decisions is also covered.
2-pager leaflet How well do understand your clients environment - PhD proposa...Ir. Jos Geskus EMITA
This document summarizes Jos Geskus' PhD proposal on applying principles of Enterprise Engineering to auditing. It discusses how understanding clients as complex social systems is key for auditors. Technological advances like cloud computing increase complexity, requiring methods to reduce complexity and identify significant parts. Enterprise Engineering uses Enterprise Ontology, Architecture, and Governance as pillars. The proposal aims to develop tools using Enterprise Ontology to better understand clients' enterprises and improve audit quality.
The Influence of Aligning Information Technology (IT) Strategy, Performance C...ijmpict
Strategic alignment of Information Technology (IT) with Corporate Strategy remains a key concern for enterprises and scholars over decades. Strategic IT alignment is widening its adoption across globe due to its empirically proven capability of improving organizational performance. Most of the studies on strategic alignment have however focused on developing countries and thus creating a significant gap in the alignment research. This paper presents how strategic IT alignment can be used in a developing country setting to improve both institutional performance and innovation. The hindrances and theoretical implications of strategic alignment in a developing country setting are also discussed and future research direction explored.
The findings in this study have shown that when IT strategy is aligned with Performance contract, institutional performance is improved; when IT strategy is aligned with IT organizational structure, institutional performance is enhanced; and, there is a positive effect on institutional performance when IT strategy is aligned with Performance contract and IT organizational structure.
The art of value creation with information technology potentials in business ...Alexander Decker
This document discusses the role of strategic information systems in business value creation. It defines value creation as activities that reduce costs and increase profits through efficiency. Strategic information systems involves using information technology and managerial skills to identify business problems and create solutions that help organizations achieve their objectives. The document analyzes how strategic information systems can help realize value by focusing on business processes and capturing value through technologies like the internet, business intelligence, and collaboration systems. It argues that information systems strategy is important for competitive advantage and should be integrated with business strategy for organizations to effectively create value.
Edmund Young is an IT executive with over 28 years of experience leading teams and managing all areas of IT operations, including network operations centers, virtual server architectures, cloud solutions, storage, and globally dispersed server teams. He is currently the Vice President of Information Technology for State Street's Global Operations, where he manages a global team supporting IT infrastructure and operations. Previously, he held IT leadership roles at companies like Macsteel USA and QLogic Corporation, where he led large-scale infrastructure transformations and converged multiple datacenters. Edmund has expertise in technologies like VMware, Windows administration, storage, networking, and disaster recovery planning. He is also skilled in areas such as budgeting, staff development, and establishing strategic partnerships.
The document outlines learning objectives for a chapter on enterprise and global management of information technology. It discusses how IT has impacted managers and organizations by enabling changes to decision making, structures, and work activities. It also describes the three major components of IT management: developing IT strategies; managing application development and research; and managing IT processes, professionals, and the IS function. Finally, it discusses failures in IT management that can result from a lack of business manager involvement in planning.
Edmund Young is an IT executive with over 28 years of experience leading teams and managing all areas of IT operations, including network operations centers, virtual server architectures, cloud solutions, storage, and globally dispersed server teams. He is currently the Vice President of Information Technology for State Street's Global Operations, where he manages a global team supporting IT infrastructure and operations. Prior to his current role, Edmund held IT leadership positions at companies including Macsteel Service Centers USA and QLogic Corporation, where he led large-scale infrastructure transformations and cost reduction efforts. Edmund possesses expertise in technologies including virtualization, storage, cloud computing, and IT service management best practices.
A New Framework For Managing IT-Enabled Business ChangeJulie Davis
This document proposes a new framework for managing IT-enabled business change projects. It begins by discussing limitations of traditional IT project management approaches when applied to significant business change initiatives. A new framework was developed based on principles of managing benefits and organizational change. It was tested on real projects and aims to better address the management challenges across the entire lifecycle of complex IT-change projects. The framework brings a change management perspective rather than just focusing on the IT components. It also seeks to integrate existing management methods and address gaps between them.
Does adoption of information technology improve firm performance a survey of ...Alexander Decker
This document discusses a study that examines the effects of information technology (IT) adoption on organizational performance among firms listed on the Nairobi Securities Exchange. The study found that IT adoption was associated with competitive advantages like improved profit margins and revenue, customer retention, and attracting new investors. IT adoption also helped with cost cutting by enabling firms to switch to less expensive health insurance programs. However, the study found no clear effects of IT adoption on factors like laying off employees, lowering monthly bills, changing service hours, or debt restructuring. Overall, the study concludes that IT adoption positively impacts organizational performance among firms listed on the Nairobi Securities Exchange.
This independent survey was commissioned by
Savvis and conducted with 550 CIOs, IT Directors,
Heads of IT and Senior IT Managers of global large
enterprises based in the USA (200), UK (100),
Germany (100), Japan (50), Hong Kong (50) and
Singapore (50), and was completed in August
2012. The research was conducted by Vanson
Bourne, a research based technology marketing
consultancy offering clients analysis and advice
based on incisive, rigorous research into their
market environment. The research used a
combination of online fieldwork methodology and
telephone interviewing. All research carried out by
Vanson Bourne adheres to the latest MRS Code
of Conduct. Demographic detailing respondent
communities includes industry sector, country
in which the respondents were based, and size
of business.
A new dual-model approach to IT management is proposed that separates IT functions into "Factory IT" and "Enabling IT". Factory IT aims to drive efficiency and reduce costs through standardization, lean techniques, and automation. Enabling IT focuses on supporting innovation through rapid experimentation, close business collaboration, and enabling new technologies like data analytics and Web 2.0 tools. The document discusses how each model operates and the organizational changes needed to effectively implement this new dual-model approach to IT leadership and governance.
This document analyzes the role of the Chief Information Officer (CIO) and whether the CIO brings value to an organization. It begins with an executive summary outlining the report's analysis of the CIO role, perspectives on the role, and forecasts for the future. The report then provides background on the evolving CIO role from operations to strategic partner. It analyzes the CIO role using Porter's Five Forces model and finds prospects for maintaining the CIO role are high if CIOs remain sensitive to communicating with CEOs and CFOs to align with corporate needs. Weaknesses include some CEOs viewing the CFO as better positioned to authorize IT investments.
Information management and enterprise architecturenvvrajesh
The document discusses practical enterprise information management. It describes EIM as managing data in all forms as a strategic asset. A good EIM program results in integrated, accurate and timely enterprise data through policies, frameworks, technologies and processes. These include data models, data lineage, data quality, data profiling and stewardship. The document recommends aligning EIM with enterprise architecture and developing conceptual, logical and physical data models across three layers to support the information architecture.
Leveraging IT to create business agility: Why leading IT organisations are re...3gamma
CIOs are under pressure. Some analysts are even predicting the end of the CIO role. In the light of digitalisation and an ever-increasing need for business agility, IT is becoming an embedded part of the business. Information technology is no longer just a utility but a deeply integrated driver of products and services within most companies. An ever-changing environment means that old assumptions on how to deliver IT services need to be revisited if the IT organisation is to remain relevant.
This document discusses strategic planning and information systems strategy. It covers topics like strategic planning, vision and business needs, Earl's grid, McFarlan's application portfolio, and business process reengineering. For McFarlan's application portfolio, it describes assessing existing, planned and potential IT systems based on their current and future importance to the business. It also discusses Earl's reasons for having an IT strategy and categorizing systems as high potential, strategic, key operational or support.
Success Factors for Enterprise Systems in the Higher Education Sector: A Case...inventionjournals
This document summarizes literature on critical success factors for implementing enterprise systems in higher education. It finds that while many studies have identified success factors for commercial sectors, the unique characteristics of higher education including decentralized structures, non-uniform cultures, and focus on teaching and research rather than business processes, suggest a more specialized set of factors may apply. The document reviews literature on challenges implementing enterprise systems in higher education due to misalignment with academic culture. It then presents a case study of a large Australian university to determine which proposed critical success factors are most relevant for successful enterprise system deployment in higher education.
Implementing Erp Systems In Small And Midsize Manufacturing FirmsDonovan Mulder
The document discusses a study on implementing enterprise resource planning (ERP) systems in small and midsize manufacturing firms. It presents profiles of 4 case study companies that implemented ERP systems. The companies ranged in annual revenue from $55-200 million.
It then outlines the ERP implementation process explored in the case studies, dividing it into 3 phases: planning activities, justification and selection activities, and installation activities. For each phase, it discusses the findings from the case studies and presents propositions related to the activities within each phase. The goal is to help understand what leads to successful ERP implementations.
The relationship between the Chief Information Officer (CIO) and the Chief Executive Officer (CEO) is crucial for effectively utilizing information technology for competitive advantage. As IT has evolved from a support function to a strategic resource, the roles of the CIO and CEO have also evolved. The development of the CIO position was a response to the need for an executive to oversee all aspects of a firm's IT and report directly to high-level executives. Effective CIOs require both business and technical knowledge to develop IT strategies. Similarly, CEOs have recognized the strategic importance of IT, though some older CEOs remain skeptical. The partnership between CIO and CEO is necessary for merging their respective knowledge and perspectives to effectively manage IT
This document summarizes a research paper that studied the enterprise architecture (EA) benefit-realization process. The paper conducted an in-depth case study to clarify how EA benefits are realized. The study found that EA benefits are realized through a long chain of intertwined activities from the initiation of the EA program when comprehensive understanding starts to form, to years later when measurable outcomes like cost savings materialize. Organizations benefit from EA through various means along this process. The paper suggests that to maximize benefits, EA programs should incorporate strategies to realize benefits at all stages of the process.
The document discusses IT best practices for mergers and acquisitions (M&A) in the communications services provider (CSP) industry. It recommends involving IT early in the M&A decision process to better estimate integration costs and timelines. It also suggests assessing cultural fit between merging IT departments. During planning, companies should make an inventory of merging technologies, processes, and people, and document existing IT systems. For execution, the document advises following an M&A roadmap in phases and avoiding incomplete decommissioning of redundant assets.
Digital Fuel- Achieving IT cost visibility-Id gresearch cio_study_1009yisbat
The document discusses the challenges organizations face in achieving visibility into their IT costs. It found that while having detailed cost visibility is important, over half of respondents were less than satisfied with their current level of visibility. The biggest challenges are a lack of an explicitly defined IT cost model and difficulties obtaining detailed cost breakdowns and mapping costs to specific services. Achieving true cost visibility requires new processes and tools to capture both direct and indirect costs associated with delivering various IT services.
The document summarizes key concepts from the first chapter of the book "Managing and Using Information Systems: A Strategic Approach – Fifth Edition" by Keri Pearlson and Carol Saunders. It discusses the importance of aligning business strategy, information systems, and organizational design. It introduces the Information Systems Strategy Triangle and various business strategy frameworks including Porter's generic strategies and models for dynamic competitive environments. The role of the general manager in information systems decisions is also covered.
2-pager leaflet How well do understand your clients environment - PhD proposa...Ir. Jos Geskus EMITA
This document summarizes Jos Geskus' PhD proposal on applying principles of Enterprise Engineering to auditing. It discusses how understanding clients as complex social systems is key for auditors. Technological advances like cloud computing increase complexity, requiring methods to reduce complexity and identify significant parts. Enterprise Engineering uses Enterprise Ontology, Architecture, and Governance as pillars. The proposal aims to develop tools using Enterprise Ontology to better understand clients' enterprises and improve audit quality.
The Influence of Aligning Information Technology (IT) Strategy, Performance C...ijmpict
Strategic alignment of Information Technology (IT) with Corporate Strategy remains a key concern for enterprises and scholars over decades. Strategic IT alignment is widening its adoption across globe due to its empirically proven capability of improving organizational performance. Most of the studies on strategic alignment have however focused on developing countries and thus creating a significant gap in the alignment research. This paper presents how strategic IT alignment can be used in a developing country setting to improve both institutional performance and innovation. The hindrances and theoretical implications of strategic alignment in a developing country setting are also discussed and future research direction explored.
The findings in this study have shown that when IT strategy is aligned with Performance contract, institutional performance is improved; when IT strategy is aligned with IT organizational structure, institutional performance is enhanced; and, there is a positive effect on institutional performance when IT strategy is aligned with Performance contract and IT organizational structure.
The art of value creation with information technology potentials in business ...Alexander Decker
This document discusses the role of strategic information systems in business value creation. It defines value creation as activities that reduce costs and increase profits through efficiency. Strategic information systems involves using information technology and managerial skills to identify business problems and create solutions that help organizations achieve their objectives. The document analyzes how strategic information systems can help realize value by focusing on business processes and capturing value through technologies like the internet, business intelligence, and collaboration systems. It argues that information systems strategy is important for competitive advantage and should be integrated with business strategy for organizations to effectively create value.
Edmund Young is an IT executive with over 28 years of experience leading teams and managing all areas of IT operations, including network operations centers, virtual server architectures, cloud solutions, storage, and globally dispersed server teams. He is currently the Vice President of Information Technology for State Street's Global Operations, where he manages a global team supporting IT infrastructure and operations. Previously, he held IT leadership roles at companies like Macsteel USA and QLogic Corporation, where he led large-scale infrastructure transformations and converged multiple datacenters. Edmund has expertise in technologies like VMware, Windows administration, storage, networking, and disaster recovery planning. He is also skilled in areas such as budgeting, staff development, and establishing strategic partnerships.
The document outlines learning objectives for a chapter on enterprise and global management of information technology. It discusses how IT has impacted managers and organizations by enabling changes to decision making, structures, and work activities. It also describes the three major components of IT management: developing IT strategies; managing application development and research; and managing IT processes, professionals, and the IS function. Finally, it discusses failures in IT management that can result from a lack of business manager involvement in planning.
Edmund Young is an IT executive with over 28 years of experience leading teams and managing all areas of IT operations, including network operations centers, virtual server architectures, cloud solutions, storage, and globally dispersed server teams. He is currently the Vice President of Information Technology for State Street's Global Operations, where he manages a global team supporting IT infrastructure and operations. Prior to his current role, Edmund held IT leadership positions at companies including Macsteel Service Centers USA and QLogic Corporation, where he led large-scale infrastructure transformations and cost reduction efforts. Edmund possesses expertise in technologies including virtualization, storage, cloud computing, and IT service management best practices.
A New Framework For Managing IT-Enabled Business ChangeJulie Davis
This document proposes a new framework for managing IT-enabled business change projects. It begins by discussing limitations of traditional IT project management approaches when applied to significant business change initiatives. A new framework was developed based on principles of managing benefits and organizational change. It was tested on real projects and aims to better address the management challenges across the entire lifecycle of complex IT-change projects. The framework brings a change management perspective rather than just focusing on the IT components. It also seeks to integrate existing management methods and address gaps between them.
Does adoption of information technology improve firm performance a survey of ...Alexander Decker
This document discusses a study that examines the effects of information technology (IT) adoption on organizational performance among firms listed on the Nairobi Securities Exchange. The study found that IT adoption was associated with competitive advantages like improved profit margins and revenue, customer retention, and attracting new investors. IT adoption also helped with cost cutting by enabling firms to switch to less expensive health insurance programs. However, the study found no clear effects of IT adoption on factors like laying off employees, lowering monthly bills, changing service hours, or debt restructuring. Overall, the study concludes that IT adoption positively impacts organizational performance among firms listed on the Nairobi Securities Exchange.
THE ROLE OF INFORMATION RESOURCES AND ENTERPRISE SYSTEM IN DYSONsreeragtg
Dyson is a UK-based appliance manufacturer that produces vacuum cleaners, washing machines, and hand dryers. The report discusses how information resources and enterprise systems can provide Dyson with a competitive advantage. It analyzes how information impacts Dyson's value chain activities. The report recommends that Dyson implement an enterprise system using a best-of-breed approach to integrate information across its global operations and support business process reengineering.
This paper examines how managerial leadership practices can advance business-IT fusion in organizations. A study of a northeast US corporation found that horizontal integration between previously separate business units helped eliminate redundancy. The findings showed integration has begun, but more is needed at the programs level. Effective leadership at both the corporate and programs levels, addressing cultural and human aspects, can improve horizontal integration and optimize roles, governance, and relationships to better achieve business-IT fusion. Defining charters and treating business and IT as partners can also help by establishing communication and shared understanding between the units.
Governing Projects Uni Syd INFO6007 2009UNSW Canberra
The document discusses IT project governance and the need to re-examine traditional views of success. It notes that while project management focuses on outputs like time and budget, true success requires governing projects to achieve intended outcomes and benefits. Proper governance involves boards and top managers guiding projects aligned with strategy and being accountable for realizing expected value. The document advocates governance standards like HB280 and AS8016 which emphasize outcomes over outputs and managing projects from the boardroom level.
This document summarizes key points from a lecture on IT project governance, including:
1. Traditional project management advice has less impact on success than previously believed, and benefits are delivered by operations management, not just the project team.
2. Most IT projects fail to deliver benefits, and a benefits-based definition of success is more appropriate than just assessing project management success.
3. Top management support is the most critical success factor for IT projects, not just competent staff or clear requirements. Effective governance where top managers evaluate, direct and monitor projects is needed.
The global networks of economic wealth, political power and media will depend more and more on knowledge generation. Society will become more and more symbolic - that is, the capacity to produce and distribute goods and services will become increasingly dependent on the ability to create and manipulate electronic symbols. Companies will have to adapt to this new environment, although the process will not be easy. Companies will have to conceive of themselves as located within a shifting network of suppliers, competitors and consumers; their boundaries will accordingly be highly fluid. Permanent flexibility will be the key to survival in the new economy.
This document discusses organizational and entrepreneurial factors related to effective customer information systems practices in B2B firms. It finds that:
1) Effective CIS requires coordination across functions to actively manage customer information as the core of marketing decision-making.
2) One exemplary firm was found to develop customer-centric strategies interactively through dialogue between middle and upper management using customer data and trends.
3) While CIS promises closer customer relationships, many firms fail due to lack of information sharing across functions, requiring cultural and structural changes to facilitate sharing.
Breakthroughs In [It] Project Management SlideshareUNSW Canberra
This document provides an overview and agenda for a course on governing portfolios of programmes to execute strategy. The course will cover why governance of IT projects is needed given historical high rates of failure. It will examine case studies of how boards and senior management have successfully and unsuccessfully governed ICT projects. The document outlines definitions of different types of project success and discusses frameworks for governing projects to achieve desired outcomes and realize benefits.
This document discusses research on measuring the business impact and productivity effects of Enterprise Resource Planning (ERP) software implementations. The research uses multi-year financial and implementation data from multiple firms that adopted the SAP R/3 ERP package. The research finds that larger firms and higher performing firms are more likely to invest in ERP. While business performance may slow slightly after implementation, financial markets reward ERP adopters with higher market valuations. The research aims to provide statistical evidence on the costs and benefits of ERP implementations and their effects on firm performance and productivity.
This document discusses strategic information systems planning (SISP). It reviews several common SISP methodologies: value chain analysis, critical success factor analysis, and business systems planning. These methodologies are aimed at aligning information systems with business goals or identifying new uses of technology. However, the document notes that existing approaches treat planning as separate from development and management, and do not directly connect systems to enterprise resources. An integrated approach linking planning, development, and management through shared enterprise resources is proposed to improve SISP effectiveness.
15. Assessing Risk In Erp Projects Identify And Prioritize The FactorsDonovan Mulder
This document discusses assessing risk in ERP projects. It notes that ERP projects often face high failure rates and risks. The authors aim to identify and prioritize key risk factors for ERP projects using the Delphi method and analytic hierarchy process (AHP). They find that some important risk factors deserve more attention during ERP implementation. Identifying and managing risks is important to help mitigate failure and ensure successful ERP projects.
1) The document examines the implementation of an Enterprise Resource Planning (ERP) system at Rolls-Royce, a large UK manufacturing organization.
2) It provides background on ERP systems and their benefits in integrating business processes and supply chains. ERP implementation requires managing organizational change as well as software installation.
3) The case study analyzes the business, technical, and cultural issues involved in Rolls-Royce's ERP implementation, including timescales and tangible/intangible benefits achieved.
This document discusses the evolving relationship between business strategy and IT strategy. It notes that executives now recognize IT's strategic potential and its ability to impact top-line growth. As a result, IT is increasingly involved in strategic discussions and helping shape business strategy through new technologies. However, effective strategy development still requires addressing challenges such as aligning business and IT strategies and ensuring the right people are involved from both business and IT. The document also outlines four critical success factors for developing IT strategy: revisiting the business model, having strategic themes, involving the right people, and working in partnership between business and IT.
15C h a p t e r2 Developing IT Strategy for Business V.docxnovabroom
15
C h a p t e r
2 Developing IT Strategy for Business Value1
1 This chapter is based on the authors’ previously published article, Smith, H. A., J. D. McKeen, and S. Singh.
“Developing IT Strategy for Business Value.” Journal of Information Technology Management XVIII, no. 1 (June
2007): 49–58. Reproduced by permission of the Association of Management.
Suddenly, it seems, executives are “getting” the strategic potential of IT. Instead of being relegated to the back rooms of the enterprise, IT is now being invited to the boardrooms and is being expected to play a leading role in delivering top-
line value and business transformation (Korsten 2011; Luftman and Zadeh 2011; Peslak
2012). Thus, it can no longer be assumed that business strategy will naturally drive IT
strategy, as has traditionally been the case. Instead, different approaches to strategy
development are now possible and sometimes desirable. For example, the capabilities
of new technologies could shape the strategic direction of a firm (e.g., mobile, social
media, big data). IT could enable new competencies that would then make new busi-
ness strategies possible (e.g., location-based advertising). New options for governance
using IT could also change how a company works with other firms (think Wal-Mart
or Netflix). Today new technologies coevolve with new business strategies and new
behaviors and structures (see Figure 2.1). However, whichever way it is developed, if
IT is to deliver business value, IT strategy must always be closely linked with sound
business strategy.
Ideally, therefore, business and IT strategies should complement and support each
other relative to the business environment. Strategy development should be a two-way
process between the business and IT. Yet unfortunately, poor alignment between them
remains a perennial problem (Frohman 1982; Luftman and Zadeh 2011; McKeen and
Smith 1996; Rivard et al. 2004). Research has already identified many organizational
challenges to effective strategic alignment. For example, if their strategy-development
processes are not compatible (e.g., if they take place at different times or involve differ-
ent levels of the business), it is unlikely that the business and IT will be working toward
the same goals at the same time (Frohman 1982). Aligning with individual business
units can lead to initiatives that suboptimize the effectiveness of corporate strategies
(McKeen and Smith 1996). Strategy implementation must also be carefully aligned to
16 Section I • Delivering Value with IT
ensure the integration of business and IT efforts (Smith and McKeen 2010). Finally, com-
panies often try to address too many priorities, leading to an inadequate focus on key
strategic goals (Weiss and Thorogood 2011).
However, strategic alignment is only one problem facing IT managers when they
develop IT strategy. With IT becoming so much more central to the development and
delivery of business strategy, much mor.
Fueling Innovation through InformationTechnology in SMEsb.docxhanneloremccaffery
Fueling Innovation through Information
Technology in SMEs*
by Clay Dibrell, Peter S. Davis, and Justin Craig
This paper describes a study that investigates the mediating effects of information
technology (IT) on the relationships among product and process innovations and firm
performance (measured in multiple profitability and growth rate metrics). Using
structural equation modeling on a sample of 397 small and medium-sized enterprises
(SMEs), we find evidence that (1) increases on the strategic emphasis placed on
innovation, both product and process, positively impact the prominence managers
place on IT; (2) the impact of innovation (both product and process) on performance
(both profitability and growth) is primarily indirect, felt via the mechanism of the
importance managers place on IT; and (3) an increased emphasis on IT abets
managers’ perception of their firms’ performance, as compared with that observed
among peer firms (other SMEs).
A commitment to innovation has long
been considered to be important to the
success of entrepreneurial ventures and
small firms (Fiol 1996). Research has
shown that innovation stimulates ven-
tures’ growth (e.g., Wolff and Pett
2006; Motwani et al. 1999; Hax and
Majluf 1991) and also provides a key
source of competitive advantage in the
absence of scale economies (Lewis et al.
2002). Considered from the resource-
based view of the firm (Barney 1991),
successful innovation may be dependent
on the presence of other organization-
*The authors wish to thank Don Neubaum and the anonymous reviewers for their helpful
comments and direction. Financial support was provided by the Austin Family Business
Program in the College of Business at Oregon State University.
Clay Dibrell is associate professor of strategic management in the College of Business at
Oregon State University and research fellow at Bond University.
Peter S. Davis is professor and chair of the Department of Management in the Belk College
of Business at the University of North Carolina–Charlotte.
Justin Craig is associate professor of family business and entrepreneurship at Bond
University.
Address correspondence to: Clay Dibrell, 200 Bexell Hall, College of Business, Oregon State
University, Corvallis, OR 97331. Tel: (541) 737-6061. E-mail: [email protected]
Journal of Small Business Management 2008 46(2), pp. 203–218
DIBRELL, DAVIS, AND CRAIG 203
mailto:[email protected]
specific skills and capabilities. For
example, substantial evidence has begun
to accumulate that suggests that appro-
priate strategic employment of informa-
tion technology (IT) may be essential
in translating strategies (e.g., innovation)
into enhanced firm performance (e.g.,
Ray, Muhanna, and Barney 2005;
Sakaguchi, Nicovich, and Dibrell 2004).
A direct linkage between IT and firm
performance was established by Powell
and Dent-Micallef (1997). Bharadwaj
(2000) found that high IT-capable firms
(those that invest heavily in IT) outper-
form competitors that do not inve ...
This document summarizes the skills needed for IT professionals in Kenya. It finds that both technical and soft skills are important, with ethics, communication, and business skills being especially critical for both entry-level and mid-level employees. There are also skills gaps in Kenya, particularly in software development and project management. Developing IT skills is important for Kenya's growing economy and digital transformation, but better data and collaboration between education and business is still needed to understand skills demands.
4. Expectation And Reality In Erp Implementation Consultant And Solution Prov...Donovan Mulder
The document discusses expectations and realities in ERP implementation from the perspective of consultants and solution providers. It summarizes literature on common ERP implementation challenges such as organizational readiness, customization vs standard systems, and managing change. It then presents results from a survey of 59 Finnish ERP consultants and vendors. The survey found that key challenges in ERP implementations relate to production planning, materials management, and meeting various requirements across different company levels and industries. Implementers emphasized the need for initial solutions and further research in production planning and complex products.
This document describes a case study analysis of factors for successful ERP system implementations. It identifies 7 key factors cited in literature: 1) strong executive support and accountability, 2) clear understanding of business processes before selecting an ERP product, 3) minimal customization of the ERP system, 4) treating the implementation as an ongoing program rather than a project, 5) organization-wide education and training, 6) realistic expectations around return on investment, and 7) setting realistic deadlines. It then analyzes two case studies, one that discontinued its ERP implementation and one with an ongoing implementation, comparing their experiences to the identified success factors.
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Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
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The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
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The report *State of D2C in India: A Logistics Update* talks about the evolving dynamics of the d2C landscape with a particular focus on how brands navigate the complexities of logistics. Third Party Logistics enablers emerge indispensable partners in facilitating the growth journey of D2C brands, offering cost-effective solutions tailored to their specific needs. As D2C brands continue to expand, they encounter heightened operational complexities with logistics standing out as a significant challenge. Logistics not only represents a substantial cost component for the brands but also directly influences the customer experience. Establishing efficient logistics operations while keeping costs low is therefore a crucial objective for brands. The report highlights how 3PLs are meeting the rising demands of D2C brands, supporting their expansion both online and offline, and paving the way for sustainable, scalable growth in this fast-paced market.
AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
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Cover Story - China's Investment Leader - Dr. Alyce SUmsthrill
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China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
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Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
ITC
1. Introduction
ICT-enabled The 1990s witnessed the failure of many
organisations: a model planned change interventions to achieve their
original objectives or realise significant ``hard''
for change or ``soft'' business benefits for host
management organisations in Australia, the USA, and the
UK (Carlopio, 1998; Wilkinson et al., 1998;
Zbaracki, 1998; Burnes, 1996; Stace and
Scott Gardner and
Dunphy, 1995).
Colin G. Ash IT focused interventions, such as business
process re-engineering (BPR) and enterprise
resource planning (ERP), feature prominently
in this catalogue of costly change failures, with
The authors reported levels of satisfaction with strategic IT
investments among surveyed senior executives
Scott Gardner is a Lecturer, Graduate Programs, and
in US corporations (1989-1997) ranging from
Colin G. Ash is Associate Head of School, both at Edith 20-75 per cent (Thorpe, 1998; Sauer, 1997;
Cowan University, Churchlands, Perth, Australia. Holland and Kumar, 1995). Ironically many
respondents were senior managers who
Keywords sanctioned investment in strategic information
systems with which they ``wanted to be seen to
Strategy, Change management, Information technology,
engage'', but neither ``trusted nor understood''
Organizations, United Kingdom, Norway
contributing to an estimated US$145 billion
in write-offs for US corporate IT investments
Abstract in the mid-1990s (King, 1997, cited in
Presents a preliminary framework for making sense of and Thorpe, 1998, p. 12). McHugh (2000) cites
managing change in organisations that have adopted several more recent examples of ``Faustian''
information systems and e-commerce as a core element of IT contracts signed by big corporate clients
their business strategy. Argues that the relatively low buying into ERP, claiming that 37 out of 100
level of organisational benefits realised by typical
US executives responsible for ERP adoptions
between 1996 and 1999 could not identify any
strategic information technology interventions over the
positive impact of these systems for their
past decade is often a product of poor adoption and
businesses.
implementation practices on the part of senior managers
While IT writers, including Thorpe (1998)
and IT practitioners, who have failed to understand the
and Koh et al. (2000), suggest that these
non-linear and emergent nature of change in complex failure rates will decline with systems
organisations. Argues that a clear understanding of the advancements, maturation in project
dynamics of change at the people/technology interface, management and improved benefits
and the symbiotic relationship between information realisation models, the continuing impact of
systems and strategy, is a prerequisite for the successful IT based change failure on corporate
business benefits realisation for major IT and e-business profitability and effective organisational
projects. Distils lessons learned from reflections on functioning in all sectors continues to warrant
theories-in-use and practice into a basic model for senior closer investigation. This requirement is
managers and IT practitioners. reinforced by the disappointing level of
business benefits realised by client
Electronic access
organisations from the latest wave of
enterprise-wide customer relationship
The Emerald Research Register for this journal is management (CRM) technologies, with over
available at 55 per cent offering no significant returns,
http://www.emeraldinsight.com/researchregister and low levels of executive confidence ± both
reported in major US corporate IT surveys
The current issue and full text archive of this journal is
(Bain, 2001, cited in Rigby et al., 2002).
available at
http://www.emeraldinsight.com/0957-6053.htm
Research objectives and methodology
Logistics Information Management
Volume 16 . Number 1 . 2003 . pp. 18-24
# MCB UP Limited . ISSN 0957-6053 A comprehensive investigation of the factors
DOI 10.1108/09576050310453705 that determine IT-based change failure or
18
2. ICT-enabled organisations: a model for change management Logistics Information Management
Scott Gardner and Colin G. Ash Volume 16 . Number 1 . 2003 . 18-24
success is beyond the scope of this paper individual behaviours, team and
which aims to inform future practice in the organisational performance was popularised
field of change management, by investigating by Kurt Lewin, Rensis Likert and other US-
the dynamic relationship between strategy, based figures in the organisational
change management practices, and fifth development movement of the 1950s to the
generation information and communication 1970s. During the same era Europe and
technologies (ICT), within complex Scandinavia witnessed the emergence and
organisational environments. More growth of socio-technical movement, which
specifically, the role of information systems made a significant contribution to current
within the broader change management systems thinking and the nature of
equation will be explored. interactions between people and technology
The investigation and subsequent analysis (Waddell et al., 2000).
were undertaken with reference to: Although the popularity of OD and socio-
. Recent literature on strategic approaches technical schools of thought declined in the
to change management and strategic 1980s, many of their fundamental principles
information systems to highlight key and methods have been carried forward into
concepts and current applications, current change management consulting
successes and failures in these fields; practices (Stace and Dunphy, 1994).
. Data from interviews with four In the 1980s and 1990s the dominant
experienced IT consultants and two approaches to planned change were premised
senior IT project managers, to provide on the assumption that structures, processes,
insight into the limitations of current IT- technology and human skills, capabilities and
based change consulting practices; knowledge can be reconfigured to support or
. Two recent case examples: a provincial optimise the achievement of identified
bank which combined BPR and strategic goals. These included total quality
e-business technologies as part of a management (TQM); BPR and various forms
successful strategy to capture a significant of strategic IT interventions including ERP
share of the online housing loans market and e-commerce systems (Stace and Dunphy,
in the UK market between 1995 and 2001; Wilkinson et al., 1998; Burnes, 1996).
1998, and an offshore petroleum As discussed in section one of this paper,
engineering company which used Web planned change in its various forms had a
front-end technology with ERP to make fairly poor track record throughout the 1990s,
significant efficiency gains for minimising with TQM, BPR and IT failures incurring
offshore personnel costs and optimise use massive financial and human resource
of the available labour pool. deployment costs, with limited returns to the
These case examples of ICT as a platform for client organisation. While the reasons for
change will be discussed in the fifth section these failures are manifold, it is proposed that
following a consideration of some of the senior management's view of strategy as a
typical problems and issues associated with linear process, implemented through
information technology projects in the fourth conventional project management models,
section. The next section briefly examines the over predictable time frames, was a major
defining characteristics of strategic change contributing factor. This mechanistic view of
management and the enabling role of IT. strategic change, which ignores the emergent,
processual, and relationship-based models
advanced by prominent theorists in the field
of strategy and change management
Strategic approaches to change
management including: Quinn (1980), Pettigrew and
Whipp (1991), Mintzberg and Quinn (1991),
The notion of implementing planned reforms and Stacey (2000), is particularly evident in
to reorder the human and technological major IT project implementations. These
dimensions of the organisation has been in were characterised by a deterministic,
existence since the conception of the earliest strategy-in-a-box approach, where people are
armies and bureaucracies pre-dating configured around systems to ensure optimal
Christian times (Postman, 1992). organisational performance. Taken to its
In recent times the idea of planned logical extreme technology becomes strategy
interventions to bring about changes in or an end in itself.
19
3. ICT-enabled organisations: a model for change management Logistics Information Management
Scott Gardner and Colin G. Ash Volume 16 . Number 1 . 2003 . 18-24
This tendency is illustrated by Markus and Y2K and other legacy system problems.
Benjamin's (1997) ``magic bullet'' analogy Clients were criticised for their lack of
where IT practitioners naõvely assume that, by
È up-front consultation with their own senior IS
building or designing a powerful technology to specialists, acceptance of unrealistic budgets
be shot into the problem area, desirable and deadlines from consultants and failure to
changes will result when the technology establish a clear business case for systems
penetrates the human and technological fabric adoption. According to Thorpe (1998) these
of the organisation (Markus and Benjamin, types of adoption practices reflect linear
1997, p. 57). This deterministic and flawed industrial age thinking, based on the
conception of the role of ICT within the assumption that plugging in extra
change management equation is identified by technological capacity will necessarily
the authors and the interviewed respondents generate business efficiencies and more profit.
as a major contributor to project failures in a
range of organisational environments. Vendor issues
To advance our understanding of Vendor indifference to the specific human,
IT-focused change within complex ICT- operational, and business requirements of
enabled environments, the paper will explore client organisations was identified as a major
some of the factors that precipitate the
contributor to project failure or low levels of
success or failure of technology-focused
benefits realisation. Vendors were seen to be
interventions. In the final section a model is
primarily concerned with selling template
presented which attempts to explain the
solutions on set margins that could be rolled
complex interaction between strategy,
out across a clearly defined time frame. This
technology and people within this type of
problem was compounded by the high costs
networked organisation and the symbiotic
associated with product customisation,
relationship between strategy and information
switching to an alternative vendor if
systems.
dissatisfied, and the general disruption to
workflow and productivity caused by system
installation disruptions. Each of these factors
Interview findings: IT project failures contributed to low returns for the
organisation on the original IT investment.
Interviews were conducted by the researchers,
with four experienced IT consultants and two
senior IT project directors between October Consultant issues
2000 and February 2001, to provide an Not surprisingly, many of the consultant and
insight into current IT-focused change vendor issues were similar, given that some
management contexts, approaches and consultants worked for the vendor, whilst
practices. The principal concern was to others worked closely with the vendor (on
establish the factors that led to the relative behalf of the client). From the perspective of
success or failure of strategic IT-based change the two project managers interviewed the
projects, with respect to their original goals. biggest problem for them was the increasing
In addressing the broad themes identified in tendency for consultancies to hire
the semi-structured interview format, the ``technicians'' trained to follow standardised
respondents emphasised issues and barriers methodologies, rather than strategists who
that they saw as contributing to IT change understood the organisation's business model
failure in various contexts. These are and were capable of implementing change
described below as Client, Vendor and across the people/technology interface.
Consultant issues:
Client issues Case study insights
Senior management (client) ignorance of IT
applications and their potential ramifications Case 1: Bank.com
throughout the adoptive organisation was The case of a highly conservative, provincial
identified as a prime contributor to project UK bank that used BPR and Web-based
failure. Two respondents noted that several technologies to become a major player in the
clients with whom they had dealt had adopted UK Internet home loans market is a
high cost (typically US$5m, plus) ERP remarkable illustration of both effective
technologies as a silver bullet solution to fix management and subsequent
20
4. ICT-enabled organisations: a model for change management Logistics Information Management
Scott Gardner and Colin G. Ash Volume 16 . Number 1 . 2003 . 18-24
mismanagement of the technology/strategy As an IT-based change initiative, the
relationship. re-engineering of the original bank structure,
In the early 1990s the conservative lending processes, and information technology base to
policies and traditional branch banking create Bank.com and two other streamlined
structure that had served the bank well in business units proved to be a great success.
their traditional provincial markets during the The BPR intervention saved the business an
1980s looked like becoming an increasing estimated £30.1 million per annum and,
liability with the entry of major UK and combined with the value analysis
European players. The prospect of steady methodology, reduced the cost of processing
erosion of their core customer base by a housing loan by over 50 per cent. The
institutions with immense capital bases, bank's Internet-based business grew at 25 per
superior technology and international cent per annum between 1996 and 1999. In
networks and the increasing danger of a 1999 the bank estimated that the return from
forced merger or take-overs, moved the their investment in consulting and
bank's conservative board to initiate a survival information technology adoption since 1995
strategy. This required a massive departure was in the order of ten to one.
from their existing approach to lending Since that time the bank has continued to
through detailed personal vetting of record a steady increase in profitability due
customers and an extended approvals more to the rapid growth in the UK housing
process, which passed through seven layers of loans and financial markets during 2000 than
effective strategic and business management.
hierarchy for loans over £100,000.
In 1995 the board was persuaded that early However, major changes in the bank's top
team in 1999 and 2000, combined with
entry into the new technophile, 18-35 year
increased exposure to high risk commercial
old, Internet-based banking market
loans, led to increasing concerns being voiced
represented their only significant opportunity
by shareholders and analysts in the UK
for expansion into the broader UK market. At
business media. These concerns were
the same time they sought to recoup
compounded in 1999 by the departure from
significant business benefits from the new
the 1995-1998 business model through the
Internet technologies within a two-year period
use of CRM technologies, in an attempt to
from 1996-1998, whilst maintaining their no
integrate three successful, stand-alone
forced redundancy policy.
business units. Paradoxically, the board's
Despite the considerable challenge involved
decision to roll back the implementation of
in achieving these apparently conflicting
their CRM project with £80 million spent in
objectives, both outcomes were achieved. The
2001 reversed many of the gains from the
first through an innovative staff redeployment
investment in BPR and Internet technologies,
strategy, which transferred branch employees as tools with a clearly defined enabling role
into a massive centralised call centre servicing within a well conceived business model. As a
the entire UK market for Internet-sourced consequence the executive team were forced
housing loans. The second through a change within a few months of the decision to
strategy combining BPR, value chain analysis, reluctantly accept a merger deal with a major
cost cutting, and an aggressive Web-based competitor, effectively changing the bank's
business-to-customer (B2C) marketing identity forever.
strategy.
Under the new business model three Case 2: Engineer.com
distinct businesses were identified under a Engineer.com is the Norwegian-based
holding company structure: the traditional operation of a large US multinational and a
``Retail'' branch banking network; global leader in energy services, equipment,
``Commercial'' banking; and ``Bank.com''. engineering and construction. Until recently
The bank was able to offer a combination of one of the major challenges facing the
traditional and electronic banking services. company was the high cost of employee
These covered UK-based, Offshore, and resourcing for its offshore oil and gas
International customers, with low cost, credit operations, particularly with regard to
scored housing loans supplied online through scheduling, shift arrangements, and the
the call centre and broker network, which associated logistics for skilled
recorded a turnover of over £250m in 1999. offshore workers.
21
5. ICT-enabled organisations: a model for change management Logistics Information Management
Scott Gardner and Colin G. Ash Volume 16 . Number 1 . 2003 . 18-24
In order to minimise these costs through operation for staff, through flexible access and
optimal work scheduling and shift patterns better presentation of R/3 HR data offshore
the management realised that they needed projects (Ash and Burn, 2001; Ash, 2000).
remote access to relevant HR data such as As a further measure of its success and
shift details and updates on local employment strategic application for the organisation, the
regulations. There are significant penalties in e-business solution was expanded to include
Norway for companies that employ foreign the IT department's computer hardware
workers beyond an agreed time quota. tracking system and was incorporated as a key
Although the need to drastically reduce component of the company's global ICT
personnel deployment costs was apparent to network.
the offshore project managers, the
bureaucratic and autocratic culture of the
organisation had previously prevented a Managing emergent change?
creative solution emerging from management
or other key players in the organisation. Early The bank and the engineering company cases
in 1999 the situation changed when the HR both demonstrated the benefits of judicious
manager and project team championed the use of IT and Internet technologies as tools to
idea of a personnel management intranet to support a business model with objectives
leverage the power of graphics and Internet shared and understood by all major project or
technology and extend the reach of the program stakeholders including: senior
existing ERP system to remote users seeking managers; IT specialists; business unit
real time access to crucial deployment and managers, HR managers, and other change
scheduling data. Following an intensive six- agents responsible for the implementation,
month period spent educating peers, project communication or facilitation of the broader
managers, and other potential system users on change process. The need for shared
the benefits and applications of the understanding of the role of technology
technology and building a sound business within the change management and strategy
case for senior management, the HR team process has also been identified as a unifying
were successful. The intranet project was theme (Remenyi, 1999; Beckford, 1998).
adopted and fully operational within a year, However, future change management
with the significant addition of wireless practitioners face a significant challenge in
application protocol (mobile) technology to trying to deliver ambitious business outcomes
enhance network accessibility. for organisations operating in increasingly
Within six months of the new system being complex and dynamic ICT-enabled network
established and being accepted and environments. New theories and models of
understood by the project managers and other change management are required to help
key stakeholders, significant cost savings of practitioners understand the complex
over US$100k were recorded. The major dynamics of change within organisational
benefits realised from the application of the networks seeking to harness the power of the
new technology resulted from optimised shift fifth generation information and
patterns and increased flexibility in the communication technologies (Savage, 1996).
deployment of staff and contract personnel, in Figure 1 represents a first step towards
response to delays, downtime and other building this understanding by serving as a
offshore operational contingencies. Other common reference point for senior managers,
related benefits identified by the researcher IT practitioners, other change agents and key
included: cost savings in sourcing and inter-organisational stakeholders, such as
managing of contract staff; improved major customers and suppliers. It illustrates
relationships between the company's onshore how an emergent strategy process, focusing
and offshore management staff and the local on broad corporate intent rather than fixed
government agencies responsible for goals, informs, and is informed by, the
supplying and regulating the deployment of application of well defined and widely
staff; improvements in IT end user skills; understood business models. These are
better decision making by project managers designed to support achievement business
resulting in reduced uncertainty surrounding unit goals and broader organisational
work patterns and continuity amongst staff outcomes, by supporting and shaping
and contractors; and increased ease of electronic transactions with consumers and
22
6. ICT-enabled organisations: a model for change management Logistics Information Management
Scott Gardner and Colin G. Ash Volume 16 . Number 1 . 2003 . 18-24
Figure 1 Dynamic model of change in ICT-enabled networks It is proposed that emergent change,
although difficult to manage in a conventional
sense, can be shaped, harnessed or
purposefully oriented under certain
conditions. These include: shared stakeholder
goals, a clear understanding of the business
model, its objectives, and the role of
technology within the process; creation of
common ``IT change management'' protocols
and conventions; and ongoing use of
facilitated forums required to support
knowledge integration, through in-context
interpretation of emergent change.
Change in ICT contexts should be
managed and shaped through mutual
adjustment of the change implementation
other businesses, and day-to-day interactions
approaches employed by IT practitioners, line
with staff through the intranet and allied
managers, and other active stakeholders. This
networks. suggests the need for change agent attributes
Significantly, the success of these business suited to non-linear, and at times chaotic,
models within a complex ICT-enabled environments, notably: flexibility of thought
context, is determined not by a single variable and action; skilful interpretation of change
like technology or people but the contexts and contingencies; and crucially the
management of both planned change and the ability to create and facilitate purposeful
emergent changes generated at the people/ electronic and face-to-face dialogue, amongst
technology interface. In this context the role key stakeholders throughout the
of the IT project director or other designated organisational network. Broader adoption of
change agents becomes that of moderator, these ideas may go some way towards
interpreter, and manager of change. This reconciling the tension between second
represents a considerable shift from generation management practices and fifth
conventional linear IT project management generation technologies, which continues to
models of organisational change, which pre-determine change failure in complex
assume that effective planning, budgeting, organisations.
controls and communication will deliver
desired business results within a realistic
timeframe. The recent history of IT failure References
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