Factors Affecting IT Implementation

Factors Affecting Information Technology Implementation

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 4 Research Questions..........................................................................................................6Problem Statement...........................................................................................................6Description of the Issues..................................................................................................8Significance of Study.......................................................................................................9

CHAPTER 2: LITERATURE REVIEW 11

General literature on factors affecting Information technology implementation.....11

Effect of environment on implementation.....................................................................16Economy external environment.....................................................................................16Social factors.................................................................................................................18Government...................................................................................................................21Technological................................................................................................................21Culture...........................................................................................................................22Political environment.....................................................................................................24

Technical factors..............................................................................................................25Training..........................................................................................................................25Infrastructure..................................................................................................................25Expertise........................................................................................................................26

Inter organizational factors............................................................................................27Business strategy...........................................................................................................27information strategy planning........................................................................................28Behavior And Users.......................................................................................................31Management factors e.g. managing change...................................................................33Leadership......................................................................................................................35Resources.......................................................................................................................38

Implementation stages or processes...............................................................................39

Research work in the field of IT implementation.........................................................41

CHAPTER 3: RESEARCH METHODOLOGY 48

Introduction......................................................................................................................48

Basic Approach to the Research.....................................................................................50Research Methodology..................................................................................................52

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Interview Questions.........................................................................................................54

Sample and Population....................................................................................................57

Statistical Analysis...........................................................................................................57

Limitations and Assumptions.........................................................................................58

CHAPTER 4: DATA ANALYSIS 60

Introduction......................................................................................................................60

Issues Categorization.......................................................................................................60

The IT Issues Database...................................................................................................63

Analysis of General IT Data...........................................................................................64Strategic Planning for IT...............................................................................................66

Executive IT Expertise....................................................................................................69

Effectiveness of IT Planning and Implementation..............................70How to Improve the IT Planning Process......................................................................73Perceived Role of IT in Organization............................................................................73

Analysis of Primary Data................................................................................................74Analysis of IT Planning Process Issues.........................................................................74Comparison of both sectors...........................................................................................76Analysis of IT Procurement Process Issues...................................................................77Comparison of both sectors...........................................................................................78Analysis of IT development and deployment process Issues........................................78Comparison of both sectors...........................................................................................80

Factor analysis.................................................................................................................81Factor analysis pharmaceutical sector...........................................................................81planning.........................................................................................................................81Procurement...................................................................................................................82Implementation..............................................................................................................82Factor analysis banking sector.......................................................................................84planning.........................................................................................................................84Procurement...................................................................................................................84Implementation..............................................................................................................85

Summary..........................................................................................................................86

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CHAPTER 5: SUGGESTIONS AND RECOMMENDATION 88

Introduction......................................................................................................................88

Conclusions.......................................................................................................................88Issues Related to IT Planning........................................................................................89Issues Related to IT Procurement..................................................................................92Issues Related to IT Implementation.............................................................................94

Recommendations and interrelations............................................................................98Pharmaceutical sector....................................................................................................98Banking sector.............................................................................................................100

Recommendations for Further Study..........................................................................104

Summary........................................................................................................................105

APPENDIX 107

Selected references.........................................................................................................108

Glossary..........................................................................................................................110

Description of issues......................................................................................................112

List of companies surveyed...........................................................................................116List of Pharmaceutical companies surveyed................................................................116List of banks surveyed.................................................................................................117

Interviews.......................................................................................................................118

Issues Database..............................................................................................................119

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Chapter 1: Introduction

There is no single definition of information technology today that is universally accepted.

Often the term is applied to computers and computer-based systems. However, the roots

of the word technology suggest that it is a "means to an end." For example, using a book

of matches is a means to creating a fire. The end is fire itself. A bicycle is a means of

transportation. The goal of bicycle riding is to reach a destination, and perhaps also to get

some needed exercise....

Consequently, when we talk about the use of technology, we must always remember that

it is a means, not an end in itself. Technology in the broadest sense is the application of

modern communications and computing technologies to the creation, management and

use of knowledge.

The revolution in information technology (IT) has been likened to the industrial

revolution in terms of its potential scope and impact on society. Few other modern

advances in technology have had the capacity to affect so fundamentally the way people

work, live, learn, play, communicate, and govern themselves. As IT extends human

capabilities and takes over other functions previously performed by humans, it can even

affect what it means to be human

It is far from clear what the total effects of IT on society will be. More than 50 years ago,

"The world has arrived at an age of cheap complex devices of great reliability; and

something is bound to come of it." The question is, what has become of it? As with

automobiles and television earlier in the 20th century, information technologies can be

expected to have diverse and far-reaching effects on society-some good, some bad, and

many unanticipated.

The information revolution is not new. The United States began moving toward an

information-based economy in the 1960s, as information intensive services began to

grow. At that time, computers were used mostly in the research and development (R&D)

community and in the offices of large companies and agencies. In the past 20 years,

however, IT has become increasingly pervasive in society. It has spread to the point that

nearly everyone uses some form of IT every day. It has become common in schools,

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libraries, homes, offices, and shops. Corner grocery stores use IT for sales and electronic

transactions; automobile repair shops use IT to diagnose failures and search for parts. In

the past few years, the Internet and the World Wide Web in particular have contributed to

the rapid expansion of IT. Innovations in IT now directly affect nearly everyone—not just

the few in computer-intensive jobs.

Our society is being transformed by continuously evolving technologies that are changing

the way we do things at the most fundamental levels. This transformation is precipitated

by a number of trends: a shift from manufacturing to a service economy; the usage of

information as a resource, factor of production, and commodity; and the propulsion of

our economic growth through technical innovation and scientific discovery. On an

individual level, every aspect of our daily lives is subject to technological innovations.

We have become dependent on the flexibility, access, and services that they provide us.

Computers, fax machines, networks, cable television, fiber optics, and ATMs have all

played a pivotal role in the way we communicate, work, play, and do business. As the

information age progresses we increasingly owe more of our economic and technological

progress to the free flow of ideas and knowledge. Consequently, it becomes more

important that we have access to superior and timely information. As a nation our toehold

in the information age relies heavily on technological progress and scientific and

technical information. From an organizational standpoint, the information age is in full

swing and both public and private institutions are experiencing an increase in the use of a

variety of information technologies (ITs). Realistically, it has become nearly impossible

for an organization to operate without the use of one or more ITs. Since their inception,

ITs have been held up by many people as the cure-all for a variety of organizational ills,

and in many cases viewed as an antidote to poor performance—efficiency through the

miracle of automation. What is too often ignored or forgotten amidst all the discussion is

that although ITs can provide a number of solutions and benefits, they also introduce

their own special problems and concerns into the organizational setting. The

implementation and subsequent use of ITs is a process of interrelated steps. Faltering or

mis-stepping at any of the implementation stages may actually increase inefficiency,

ineffectiveness, and promote any number of additional uncertainties. ITs, in and of

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themselves, cannot solve all our problems (organizational or otherwise), nor will they

magically remove the variety of organizational and managerial ills that plague us. It is

only through careful design planning, acquisition, and implementation of ITs that we may

benefit from more effective operations and solutions to problems.

Research Questions

To get command of the many of issues surrounding the problem of IT

implementation in organizations, this study breaks down the

development and deployment process into three separate areas: IT

planning; IT procurement; and IT implementation, each with it’s own

set of issues. Although a number of them may prove to be similar in

nature, they must be addressed in the context of that part of the

process to which they are related.

The actual research questions for this study are broken down into

three distinct questions, which are based on the three levels involved

in successful implementation of information technologies.

What are the most problematic issues facing organizations with

regard to IT planning?


regard to IT procurement?


regard to IT implementation?

Problem Statement

The problems facing organizations in their efforts to implement ITs are extensive and

varied. One of the ultimate and overriding problems is that there is no model for these

organizations to follow or consult that is tailored to their specialized issues and needs.

One of the first questions that comes to mind in relation to this problem is “Why is a

model for IT implementation is so important?” Obviously, no model can completely

address all of the issues each individual organization faces. Organizations are each subtly

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different even from those in the same arena. What a model provides is a framework

designed to address the issues and needs of a particular process which are related across

organizations of comparable circumstance. for all types of organizations across one

particular sector, it is doubly unwise to generalize a model for use in a different sector

entirely.

The time is right for the development of an IT implementation model for organizations.

These organizations have reached a point where information technology use has become

widespread and integral to almost all operations. IT knowledge levels are increasing

within these organizations, and the demand for efficient and effective use of ITs is high.

Organizations are more frequently making use of multiple ITs in their operations.

Hardware and software costs have decreased substantially, making it easier and more

feasible for organizations to afford superior ITs in greater quantity. This dissertation

focuses on Pharmaceuticals and banking sector and the myriad of issues they are facing

with regard to IT implementation.

At the organizational level, the specifics of how we will function in the information age

and what direction we will take have become increasingly important. At this time we are

at the crossroads of information technologies—so many choices, so little money, so much

confusion. Over the last decade and a half, competition and innovation have led to a

development that is somewhat unique to the area of information technology. IT has

improved exponentially while at the same time prices for technologies have continued to

drop.. Unfortunately, some of the same factors that have made this particular situation

possible have also produced an even greater problem—the rapidly changing nature of the

technologies themselves. Information technologies become affordable quickly but the

rapidity of change in the environment keeps small and medium sized organizations a step

behind. In essence, they can afford really great obsolete ITs.

In light of this and a number of other situations in the information technology arena, all

organizations who make use of ITs must pay special attention to the planning,

acquisition, and implementation of these technologies. They must be acutely aware of the

copious number of issues which play a part in the ability of the organization to effectively

implement ITs. The view of this study is that to do this effectively an in-depth knowledge

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of the issues affecting IT implementation must be reviewed with regard to organizations.

The problem that this study will specifically address is the rationale

that numerous and varied issues exist across multiple levels of the

process of implementation which are problematic to the IT

development and deployment process as a whole. In most cases, IT

implementation problems can be viewed in layers corresponding to each stage in the

overall process. One thing that all of the layers appear to have in common is that they are

all comprised of multiple issues that create or aggravate the problem. This particular

study will focus on these issues in order to determine which are the most problematic for

organizations with regard to the implementation of ITs. Furthermore, these issues will be

examined from the standpoint of their relationships and impacts. In addition it will

explore how the issues are perceived by the executives who must manage them in their

attempts to lead their organizations to effective implementation of ITs. Ultimately, the

information gathered here should prove useful to the development of an effective and

usable IT implementation model for organizations.

Description of the Issues

Organizational and management process issues encompass those factors that affect

control over planning, procurement, and implementation of information technologies. In

general these kinds of issues provide a window for viewing a variety of organizational

operations with regard to IT. For example: What degree of centralized or decentralized

control exists in the organization? Are different technologies controlled at different levels

or areas of the organization? Are technological distinctions relevant or is standardization

called for? How has the organization structure developed, by design or default? These are

just a few of the kinds of questions that are spoken of within the contexts of

organizational and managerial issues. At the outset it appeared that the broad umbrellas

of management processes and organizational processes were ideal for categorization of

the issues to be discussed. However, after careful review of the literature, it became clear

that more specific categorizations were necessary as a basis for better understanding of

the issues. To that end, this study will make use of the following issue types:

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management process issues, organizational environment issues, leadership issues,

technical systems issues, and personnel issues. Those characterized as management

process issues speak to the functional operations of organizations, such as: budgeting,

personnel, and general management. Issues characterized as organizational environment

will be broader, addressing factors which are less tangible and more difficult to define

such as: organizational culture, change, and behavior. Leadership issues refer to those

areas which require the interaction and direction of the organization executive such as:

interdepartmental coordination and administrative support. Technical systems issues are

primarily those related to the hardware and software considerations of information

technologies. Finally, personnel issues are those issues surrounding each individual in the

organization such as: individual expertise levels, staffing levels, and resistance to change.

IT Issues, Initial Categorizations

LeadershipIssues

ManagementProcess Issues

OrganizationEnvironmentIssues

TechnicalSystemsIssues

PersonnelIssues

InterdepartmentalCoordinationIndividual SupportOrganizational SupportTimeframes andScheduling

Strategic PlanningBudgetingOrganizationalDirectivesWrittenGuidelines

OrganizationalCultureInternal andExternal PoliticsContractsChanging TechnologiesExternalConsultants

Existing SystemsStandardizationCompatibility

Organizational Expertise

Individual ExpertiseInternal LeadershipStaffingResistance to ChangeTraining

As discussed previously, the issues relevant to this study are broken down by issue type

and the specific part of the IT development and deployment process, which they affect. A

number of the issues are important factors in more that one part of the process.

Significance of Study

An in-depth understanding of the specific issues related to IT implementation is essential

for the establishment of appropriate principals and effective approaches with regard to the

management of information systems in an organization. Each individual issue is

important in it’s own context as well as producing multiple impacts which affect the

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organization and implementation of ITs within it. Subsequently, effective management of

ITs across the board can only take place when a more comprehensive understanding of

the myriad of issues is achieved.

This study is significant because it provides discourse on an area that is too often glossed

over or addressed with a standard formulaic approach. While many of the issues

represented in this study have been addressed individually they have not been adequately

viewed in the context of IT development and deployment processes, especially with

regard to the question of the needs and perceptions of professionals from the different

organizations. In response to these shortcomings, this study will provide an exploratory

look at the problematic issues surrounding IT implementation and how professionals

perceive them. More specifically, this study will provide the issues that have a direct

relationship to IT and organizational implementation needs;

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Chapter 2: Literature Review

General literature on factors affecting Information technology implementation

Information technology is gaining more and more importance in the working of

organization Management information system is any system that provides people with

either data or information relating to an organizations operations. Management

information systems support the activities of employees, owners customers and other

people in the organizations environment either by efficiently processing data to assist

with the transaction work load or by effectively supplying information to authorized

people in a timely manner. The new form of information technology used in organization

is knowledge based system Because knowledge based systems have become day parts of

an organizations sub systems they are not considered to be in a separate subset of MIS

systems that mimic human decision making processes. (Parker C, Case T (1998))

Due to the importance of information systems in organization it is necessary that the

information system should be implemented properly with in the organizations. the

purpose of my research is to identify the factors which effect the implementation process

of information technology with in the organization .

Literature is full of factors identified which effect the implementation of information

technology. Cooper and Zmud defined IT implementation as “an organizational effort

directed toward diffusing appropriate information technology within a user community.”

They developed a six-staged model of IT implementation based on Lewin’s work:

Initiation: Active and /or passive scanning of problems/opportunities.

Adoption: Negotiations for backing IT application implementation.

Adaptation: IT application and organizational procedures are revised.

Acceptance: Organizational members are induced to commit to IT application

Routinization: Usage of the IT application is encouraged as a normal activity.

Infusion: Increased effectiveness obtained by using the IT.

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They also described five major contextual factors that impacted each stage in the process:

User community (job tenure, education, resistance to change)

Organization (specialization, centralization, and formalization)

Technology being adopted (complexity)

Task to which the technology is being applied (task uncertainty, autonomy)

Organizational environment (uncertainty, inter-organizational dependence).

(Zolla G (1998))

The need for improved implementation of information technology strategy has been

emphasized in both empirical and prescriptive research studies. Researchers have

discussed various studies which effect the implementation of information technology in

an organization Gottschalk P (1998) has identified, ten content characteristics of formal

information technology strategy from the research literature as potential implementation

predictors. These are descriptions of: i) resources needed for the implementation; ii) user

involvement during the implementation; iii) analyses of the organization; iv) anticipated

changes in the environment; v) solutions to potential resistance during the

implementation; vi) information technology to be implemented; vii) projects’ relevance

to the business plan; viii) responsibility for the implementation; ix) management support

for the implementation; and x) clarity of the documentation.

To have a successful IT implementation organizations should identify different variables,

which effect the implementation of IT in an organization. Enns H et Huff S (1999)

suggested that studies of the success of Global information technology (IT) should

seriously considered the inclusion of broad categories of independent variables. These

include consideration of the economic, Technological, cultural, and political/ regulatory

Environments.

Several additional key elements have been repeatedly identified in the literature:

"Buy-in" of the organization is important. All users must clearly see the need

for the change if they are to support it.

There must be a clear understanding that significant change occurs in multiple

stages, and that errors in any of the stages can have devastating consequences

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Local champions must actively and enthusiastically promote the system, build

support, overcome resistance, and ensure that the system is actually installed

and used .

Senior management must be able to understand and address the challenges

ahead and capitalize on opportunities for quality improvement and cost

reductions.

It must be recognized that it can take at least 6 months of CIS usage before any decisions

about the success of the technology introduction (particularly in terms of individual

worker productivity) can be made. (Dr. Anderson L (1996))

Lewin created a three-step sequential model that describes how processes are changed.

The present behavior is “unfrozen”, and then it is “changed” to develop a new behavior

and finally “refrozen” to reinforce the new behavior. He also identified multiple forces

for change and for maintaining the status quo. Forces for change:

New technology

Better raw materials

Competition from other groups - survival

Supervisor pressures

Forces that inhibit change:

Group performance norms

Fear of change

Few external threats - member complacency

Well-learned skills. (Zolla G (1998))

The importance of these factors is not same in all the organizations or even within the

same organization, the importance differ from time to time also organizations past

experience effect the implementation strategy of an organization After conducting the

case study in different organizations Caroline Chan had reached following conclusions

Understanding IS implementation is an enormous task, due to the complexity of the

process.

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The factors involved in IT implementation have varying degrees of influence on the

implementation Process. This depends on the type of organizations involved, as well as

on their initiatives. For example in manufacturing and retail organizations, customer and

supplier inter-relationships are crucial for the uptake of the initiative. In government

organizations, by contrast, the issue of public concern and the associated political issues

related to elections and party politics play important roles in the implementation process.

Although there were similar responses from all case participants (that is, business must

drive e-Commerce implementation) on the organization’s future approaches to

e-commerce initiatives, the organizations’ own experiences have formed their attitude

Toward their next initiative. For example, those organizations involved with EDI

Implementations tended to compare their EDI initiative(s) with their Internet-based

Initiatives and were rather more cautious in their hopes for the future.

Achievement of successful system implementation is not an easy task according to

Grimes J et al Zingg P, Hanley J (1999) the responsibility of meeting the implementation of

instructional information technology requirements of an institute is much like the

responsibility of exploring a new frontier. It is exciting; there are unknowns; there are

hazards, and success brings an adrenaline surge to advance the frontier even further

There is growing concern about the apparent widespread failure of information systems

(IS) and information technology (IT) to deliver real organizational and business benefits.

(Maguire S (2000))

Trade surveys have estimated that from 30% to 65% of IS development projects become

'runaways' – runaway projects are those which 1) fail to produce an acceptable system, 2)

grossly exceed initial budget/time estimates and, 3) seem to take on a life of their own

(Dr. Anderson L (1996))

Laudon and Laudon (1995) have tried to explain the failure of system development by

identifying major weaknesses in the system development life cycle. The conventional

development cycle is very costly. The time needed to develop a system through the life

cycle is often lengthy and prolonged;

Life cycle methodology is relatively inflexible;

Life cycle methodology discourages change;

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Life cycle methodology is ill suited to decision-oriented applications

``The IS community faces a paradox: despite impressive advances in technology,

problems are more abundant than solutions; organizations experience rising costs instead

of cost reduction; IS misuse and rejection are more frequent than acceptance and use''

(Lytinen, 1987).The use of accepted methodologies for system development have not

guaranteed the successful implementation of information systems. There are still

weaknesses in the traditional methodologies. (Maguire S (2000)).

According to Sittig D (1999) Implementing an information system is always difficult. The

requirements to balance the multitude of trade-offs between the various factions involved

in the process puts senior leadership in a vital, but unenviable, position. One of the most

important lessons that pioneers in this field have learned is that people-based skills such

as cooperation, leadership, and creative thinking are just as important as the technology

itself. Finally, one should keep focused on the overall goal of IS implementation:

improving the quality of care delivered while lowering its costs. It is worth the effort

various evaluations of both successful and unsuccessful IS implementations conclude that

in order to be successful the IS must "match" the organization in relation to a variety of

technical (e.g., does the new IS work on the currently installed hardware?), social (e.g.,

does the IS provide all the features and functions required to replace the current

elaborately designed formal and informal communication networks?"), and

organizational (e.g., does the IS support the mission of the organization?) factors,

including the perceptions of key stakeholders (i.e., the clinical users of the system) and

organizational leadership.

Historically, IS developers have attempted to reduce the complexity of this organizational

change by primarily concentrating on the technical issues involved within the process.

System developers may need to widen their perspective on implementation to encompass

Lucas's (1994) wider definition, which includes: implementation terminates when the

system has been successfully integrated with the operations of the organization. Three

conditions can be identified to moderate the extent of social control on system

development: dependence on constraints imposed by external institutions having control

over an organization's resources; unclear performance standards for the process of system

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development; and interaction patterns during the development process. These conditions

set the context within which the process of system development operates and decisions

about system development are made. (Nicolaou A (1999))

In next sections literature regarding various factors is compiled, I have divided this

literature into three main sections, environmental factors, and technical factors and inter

organizational factors. Each section is then divided into subsections according to the

availability of literature on each subject.

Effect of environment on implementation.Economy external environment

The external environment of an organization involves both a general culture

(technological, sociological, Economic, political and so on and a particular set of groups

with which the organization must interact. These groups usually include customers,

suppliers, competitors, labor supply, labor unions and governments. The external

environment is a major contingency variable for many reasons in order to survive and

evolve, an organization must adapt effectively to changes that take place in its

environment. The inability to adjust to environmental changes can erode the effectiveness

of an organization and threaten its continued existence. .( Parker C , Case T (1999))

Nicolaou A (1999) shows the importance of environment on the development of system

according to him Frameworks external to organizations provide models of organizational

arrangements from which organizational participants choose or to which they are

subjected. Organizational participants are viewed as being subjected to normative

pressures and cognitive constraints to embrace forms regarded as appropriate or

legitimate for organizations of the type to which they belong. From this perspective,

executives may not be designing their own governance Structures in the light of the

particular problems confronted but rather choosing a structure from a menu providing a

set of options ... [a structure] is imposed on them.

Also economic environment of a country effects the implementation of information

system the economic environment of a nation has a clear impact on the short term and

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long term success of IT implementation. The economy determines such things as the

availability of funds to pay for hardware, software, and technical support. The economy

also impacts the demand, in terms of a sustainable customer base, for new IT products

and services.

Enns H et al Sid L.Huff (1999) also discusses the effect of environment in developing

countries according to them in developing nations; the costs associated with IT

investments are typically very high, as compared to the cost of labor. This encourages the

use of more traditional, labor-intensive methods rather than the use of computer-based

systems. Governments in developing countries have been encouraged to invest in IT

infrastructure in order to contribute to economic growth and participate more fully in

global trade

Of course even with high IT planning can not always guarantee higher business

performance, extended external shocks outside a companies realm of influence can have

a negative effect on business performance despite a high information technology

orientation. For example the Asian financial crisis had a devastating effect on the

business of one European specialty chemicals company despite its high information

technology orientation

Enns H et al Sid L.Huff (1999) analyzed the effect of economic factors on a Mongolian

company named Datacom Mongolia’s economic conditions posed a large barrier to

Datacom’s ability to provide the Internet services desired by its customers. The

Mongolian economy was not strong in 1994. The Mongolian government initially had

limited capacity to assist Datacom in its quest for Internet access. Nor was the emerging

private sector in Mongolia able to commit investment in the project. Access charge also

the some of the economic factors had a positive effect on datacoms information system

implementation Initially, competition was virtually non-existent. This allowed Datacom

some time to become firmly entrenched as an ISP, and provided some first mover

advantages. When competition appeared in the form of MONTEL, Datacom leveraged

their first mover advantages.

External dependencies can also effect the implementation of information system with in

an organization when dependencies exist on other organizations for critical resources, the

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dependent firm experiences a constraint to conform to the norms and values advocated by

the dominant partners (DiMaggio and Powell, 1983, p. 154). For example, the

implementation of information systems to support efficient interchange of order and

invoicing data between an organization and a supplier can result in a significant

commitment of capital and human resources (Borthick and Roth, 1993). This relationship

can limit the gathering of information about alternative system solutions to those offered

by the existing supplier of such systems (Nicolaou A (1999))

Information technology affects the community in which organization works. The

strategic planning process is an essential vehicle for dispensing information to the

community about current operations, achievements, and constraints of the information

technology enterprise. There is likelihood that members of the community will pay

greater attention to this kind of information during a planning exercise because it is

provided in the context of goals that are important to them. CAUSE/EFFECT 1998

Volume 21, Number 1, pp. 18-23

Social factors

The increasing concentration on social issues with regard to IS development may lead to

a different focus in the future. The writer contends that their needs to be a further

realignment whereby methodologies become even more business-led and a situation is

created where information systems are introduced rather than implemented within

organizations. Unfortunately some authors still have a narrow view of what is entailed in

the system development process referring to it as the structuring of hardware and

software to achieve efficient processing this thinking leads to decreased productivity of

information systems (Maguire S (2000))

It is necessary to distinguish the social part of planning from technical one it is our

contention; there are two distinct aspects of strategic technology planning. One is

socioeconomic and the other is pragmatic/technical. The traditional focus on the creation

of a planning document tends to merge these aspects and obscure the distinction, often

leading to confusion and frustration. The differences between socioeconomic objectives

-- which are essentially strategic -- and technical goals -- which are primarily operational

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-- are non-trivial: while the former need to be stable and comprehensive, the latter need to

be agile and responsive to rapid changes in technology and in users' needs. We believe

strategic planning for technology is not an oxymoron, yet a failure to appreciate the dual

character of technology planning can make it seem that way. Many technology officers

with whom we spoke intuitively recognize the essence of good planning and achieve

impressive outcomes with a minimum of frustration (CAUSE/EFFECT 1998 Volume

21, Number 1, pp. 18-23)

Fish M et al Jon A. Turner (2000) has conducted the study of implementation of information

technology in five settlement houses in New York City. Settlement houses are the

primary way that social services are delivered to community members of inner cities. The

goals for the IT implementation are to enable the settlement houses to improve the

efficiency of their administrative operations and to provide better service to their clients.

To increase efficiency, to lessen the burdensome information processing. Their

observation regarding the social aspect of the implementation are as follow.

Their observation concerns the change in emphasis among technical and social aspects of

the IT implementation as the project progressed. In the early stages of the project, the

implementation team focused its efforts almost exclusively on technical aspects of the IT

implementation. For example, the team initially focused on such tasks as evaluating

alternative WAN architectures and technologies, evaluating PC software and devices, and

analyzing the existing LANs in the houses. There is little doubt that this work was

necessary to design a technically efficient and cost-effective IT infrastructure. However,

little systematic thought was given early in the project as to how the IT infrastructure

might affect the existing work procedures, job responsibilities, employee satisfaction, and

organizational structures in the settlement houses. This lack of emphasis on the social

aspects of IT is somewhat ironic considering that the settlement houses are essentially

social service organizations.

According to Nicolaou A (1999) the choice, design and development of an information

system. The process itself may be affected by concerns for legitimacy as well as by

concerns for effectiveness in supporting organizational tasks.

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Social control is exerted by social institutions in a firm's context and is manifested

through symbolism and the institutionalization of the system development process as well

as its outcomes. Technical/rational goals are therefore not the sole controlling factors in

organizational processes, but are complemented by institutional forces and symbolic

means of control in a firm's environment

Nicolaou A (1999) has tried to explain the effect of social institutions by dividing the

influence into three different categories The symbolic functions of institutions are

imposed upon organizational form and action through three regulatory mechanisms

and/or processes. These regulatory mechanisms and processes have been identified by

institutional theorists as coercive isomorphism, mimetic isomorphism and normative

isomorphism (DiMaggio and Powell, 1983). These mechanisms aid in explaining why

institutionalized procedures and practices across organizations tend to become similar

over time.

Coercive isomorphism

The first mechanism promoting similarity is called coercive isomorphism. Coercive

isomorphism refers to the external pressures placed on an organization to conform to

rules and practices that are considered important within an industry.

Mimetic isomorphism

The second mechanism that encourages similarity has been labeled mimetic

isomorphism. Mimetic isomorphism, or ``follow the leader'', is driven by the desire to

reduce uncertainty, minimize risk, ensure survival and gain legitimacy by choosing to

select and implement systems used by the most prestigious, visible members of an

industry.

Normative isomorphism

The third and final mechanism fostering similarity is known as normative isomorphism.

Normative isomorphism or ``learning'' refers to the complex network of educational

institutions and professional associations by which Information organizational

participants learn ``the ropes to know'' or acceptable norms of practice

(Nicolaou A (1999))

20


Social implication of implementation should be kept in mind before planning for

information technology implementation.

The motivations for strategic technology planning that are most frequently mentioned are

the socioeconomic ones of:

Aligning technology with other institutional priorities;

Disseminating knowledge about technology needs and constraints;

Building alliances with key decision-makers;

Lobbying for (and obtaining) financial and other resources;

Addressing existing technology needs; and

Keeping an eye on the leading edge (CAUSE/EFFECT 1998 Volume 21,

Number 1, pp. 18-23)

Government

Government agencies might often require specific forms and content of reporting;

imposing specific IS structures that are required for compliance. Trade and industry

associations as well as major trading partners of an organization might also impose

certain information processing requirements, data access, and set standards for inter

organizational communications and external reporting of information. (Nicolaou A

(1999)).

Fish M (2000) after conducting the research study of information technology

implementation in settlement houses had following observation regarding the effect of

government on implementation practice. Influences from the environments of the

settlement houses have significantly impacted IT implementation efforts. For example,

the social service programs in the settlement houses are funded in large measure by

government contracts. Just prior to the initiation of implementation efforts, a shift to

Republican leadership occurred in the U.S. Congress, as well as in New York State and

New York City governments. As a result, the funding for social service programs was

curtailed by all three levels of government which seriously effected the implementation

of information system (Middleton C (1996))

21


Technological

Technological factors, such as the sophistication, or even the very existence, of needed IT

infrastructure, are important considerations in the implementation efforts of information

technology. ( Sakaguchi C (1998))

Caroline Chan (1999) conducted case study of nine organizations and the findings

indicate that compatibility is the major technological issue – and that it is a critical

variable for successful information technology implementation. In one of his case studies

Trading partners (both within Australia and overseas) were currently using a variety of

different standards and platforms, which increase not just the cost of the implementation

but also the complexity of the process to overcome this issue Caroline Chan has suggested

two possible solutions, which currently being used by cases:

Ensuring that right decision is made on technology, so that there is no difficulty

with later

Integration issues (integration of the new technology with prior initiatives)

Multiple ways to interact with and service a range of different technologies.

For many reasons, over emphasizing on technical details in a strategic planning process

can be counter-productive. As mentioned above, it dampens the interest of vital

participants; it tends to obscure, rather than illuminate, genuinely strategic issues; and its

relevance diminishes quickly when the planning process looks at a horizon of more than a

few months. The issue of whether to provide network access to residence halls is

strategic; the decision of whether to achieve this by installing copper, fiber, or wireless

transponders is not. (CAUSE/EFFECT 1998 Volume 21, Number 1, pp. 18-23)

Culture

Culture is also an important element in implementation success. Enns H (1999)

differentiated between national culture and organizational culture, and noted that both are

relevant to implementation studies. They suggested that national culture is an important

moderator of the relationship between organizational culture and characteristics of the

technology on one hand, and the effectiveness of technology transfer on the other hand.

22


The way in which people think and behave is strongly influenced by the social

environment or culture to which they are accustomed. Thus an information system that

worked successfully in New York or Toronto may not be as effective in Mexico City or

Tokyo. Cultural factors and values should not be overlooked in MIS design and

development. (Roberts T (1995))

According to Marchand D et al Kettinger W, Rollins J, (2000) in an organization

characterized by integrity, people believe in and share a set of key principles that outline

appropriate conduct in the company they feel they have a duty to act within the accepted

boundaries of ethical and appropriate behavior. People with integrity will present what

they know about reality candidly and fairly by not hiding bad news or glossing over

important but discomforting facts or concerns.

Lind argued that computer applications are culturally bound, and that national culture has

a direct impact on implementation failure. Lack of sensitivity to national cultural issues is

likely to increase project failure risk and lead to ineffective utilization of IT.

National culture was also an important success factor in the Mongolian context.

Mongolia was the first among the former Council on Mutual Economic Assistance to

moves towards a free market economy. In addition, Mongolia was the first country in the

region to establish free trade with all of its trading partners. Thus, the Mongolian culture

was open to other Western-originated innovations, such as the Internet and this made the

implementation practice successful in Mongolian organizations. (Enns Harvey et al

Huff S (1999))

According to Scott (1994), institutions are social constructions made up of three

elements: meaning systems and related behavioral patterns; symbolic elements, including

representational, constitutive and normative rule systems; and regulatory processes that

are used to enforce reified and legitimated actions.

Systems of shared meaning are indispensable for collective activity in a social context. In

their seminal article, Meyer and Rowan (1977) emphasized the role of rationalized belief

systems in providing a structure for meaningful interactions and acceptable patterns of

behavior. Symbolic elements of institutions are contained in socially constructed systems

of shared meaning and it is through these elements that social control is exerted on

23


organizations The existence of social expectations, norms and dependencies, bridges the

individual and organizational levels of analysis. Social context is not determined by

individual needs and wants but is determined by what people take for granted, and

consider legitimate (Nicolaou A (1999))

Culture defines the way in which communication will take place in the organization. The

components of an environment that encourages participatory and strategic governance

include a culture of trust and communication, and widespread agreement with the

principle that teaching and learning processes must drive technology planning

(Grimes J et al Zingg P, Hanley J (1999))

Enns Harvey et al Huff S (1999) found in their case study that Datacom’s organizational

culture, which centered on enthusiasm for technical work, and persistence in the face of

obstacles, was consistent with the Internet and VSAT initiatives. The cultural factors

helped them to become first to establish such services as the countrywide PC-Mail

network. And due to cultural effect they showed a great deal of persistence in training

themselves in the necessary hardware and software technologies and make the

implementation of Internet successful

Political environment The political environment of a developing country is also important from an

implementation perspective. If the country’s government severely restricts an

organization’s operations, this has negative implications for successful implementation of

IT. On the other hand, government policies can create a positive environment for

implementation. For example, India’s commitment to develop its telecommunications

sector provides an environment conducive to successful implementation efforts. At the

same time the regulatory environment impacts the amount of competition in sectors such

as telecommunications. Deregulation leads to increased competition, increased services,

and decreased costs for consumers in many countries.

Enns Harvey et al Huff S (1999) in their analysis of Datacom Company of magnolia the

political environment in Mongolia facilitated successful IT implementations. The

Mongolian government’s move towards a market economy, the institution of democracy,

24


and privatization laid the groundwork for success. Also, the deregulation of the

telecommunications industry allowed Datacom and the Pan Mongolia initiative the

latitude to operate relatively unencumbered.

Technical factors

Training

Prior training, whether formal or on-the-job, of individuals involved in an IT

implementation project is also seen as a critical element for success. Enns Harvey et al

Huff S (1999) found this to be a significant factor in the successful implementation of an

IT system in Sudan. Furthermore, Roche indicated that inadequate technical skills in host

countries are significant barriers to implementation in developing countries.

Proactive behavior is not an accident: high information oriented companies build it up

systematically over years onto only though training but by reinforcing the behaviors and

values that lead to this disposition in people integrity reality control transparency and

sharing.Training must be continued to encourage user inputs for changes that can be

made. Rewards must be given to those who significantly contribute to the successful

implementation of the innovation (Roberts T et al Middle Jr (1995))

What training is required for technical staff and users? You must factor this effort and

cost into your decision. Don’t forget that training also includes post-installation

coaching, training manuals, and support. Find out what’s included in the offer.

(Gadwall Group (2000))

How people learn is an important consideration when building or upgrading computer

systems. Many organizations have found that training people on hoe to use new

technologies is gobbling up an increasing share of the computing dollar for this reason

training may become a high priority. (Parker C , Case T (1999))

Infrastructure

The availability of infrastructure is very important for the successful implementation of

information system. The existing infrastructure could enhance or hamper the efforts for

25


system implementation. Enns Harvey et al Huff S (1999). Conducted the case studies in

Mongolian organizations.

Mongolia’s climate hinders certain wireless Mongolia’s existing infrastructure was

unable to support the Internet and VSAT network initiatives. The Mongolian government

did not have the financing or capacity to install better land-based infrastructure within the

time frame that Datacom faced. So lake of proper infrastructure produced many problems

for system implementation in Datacom technical complexity of a system can also affect

the acceptance of system within the organization people are more prone to reject the

systems, which are more difficult to use and understand.

Zolla G (1998) found the same problem in Naval Postgraduate Schools. The Naval

Postgraduate School’s initial application was a complex, technically sophisticated system

that was resisted by some users because it replaced a legacy system that was well liked. It

did not create the broad base of user support for future intranet applications. NPS has

improved their enterprise telephone and email directory program, responded to user’s

suggestions and is moving closer to achieving the critical mass needed for enterprise-

wide intranet development.

Expertise

Organization behavior researchers who study the factors that influence the work

behaviors of individuals and groups have recognized that many on the job behaviors are

affected by the skills and abilities that workers possess. These skills and abilities are

usually described as being relatively stable physical and intellectual characteristics that

determine an employee’s capability to perform job tasks. Lack of appropriate abilities

and skills can limit workers productivity. For example if a clerk typist does not have the

manual dexterity to master the fundamentals of typing or keyboard entry, his or her

performance is likely to suffer. . ( Parker C et al Case T (1999))

Employee’s skills helped the Mongolian based organization in the implementation of

information system. Enns Harvey et al Huff S (1999) conducted the cases study in

Datacom a Mongolian based organization.

26


Datacom had developed important skills in handling the poor telecommunication

infrastructure in Mongolia. The domestic electronic mail system PC-Mail was designed

to transfer messages over poor quality telephone lines. Due to the skills developed for

working with the poor infrastructure Datacom was able to develop other initiatives,

which further enhanced their expertise, such as their approach for transmitting

international faxes via the (SITA) network.

Inter organizational factors

Business strategy

One of the most important tasks in managing any organization is strategic planning, the

act of plotting the general long-term direction of the firm. Strategic plans often determine

the context or back drop for other managerial decisions that are they are one o the factors

that influence daily decisions that managers must make. In general managerial decisions

should be consistent with a nod supportive of the organizations strategic plans thus while

strategic planning is most identified with top level executives knowledge of the strategic

plan and the strategic planning process can be useful to mangers and workers at any level.

( Parker C et al Case T (1999))

Information strategy could not be formulated in isolation. For information technology to

be effective in significantly transforming higher education at the institutional level, it

must be seen as merely one parameter, albeit an important parameter, within a more

comprehensive academic planning process. (Sakaguchi T (1998))

Office of management and budget emphasizes the importance of organizational

strategy in the development of successful system development according to them

organization should:

link strategic planning to the organizations mission goals and customer needs.

This includes developing long-term general goals, setting specific annual

performance targets, and annually evaluating actual performance against these

targets.

27


develop mission-related IT measures that link the IRM strategic plan with the

organizations strategic plan. For example, mission goals should be translated into

objective, results-oriented measures of performance, both quantitative and

qualitative, which can form the basis for measuring the impact of information

technology investments.

Determine whether the function to be supported by the investment should be

performed in house or outsourced.

Determine whether the agency proposing to perform the function is the most

appropriate agency.

Examine the work processes involved to ensure they are efficient, effective, and

will take full advantage of the proposed automation.

Use mission benefit, not project completion on time and within budget, as an

important measure of success for any IT project.

Identify all major existing or planned information systems and define their

relationship to one another and to the agency's mission.

(Office Of Management And Budget (1995) )

information strategy planning

Formal IT strategy was defined as "a written plan comprised of projects for application of

information technology to assist an organization in realizing its goals", while IT strategy

implementation was defined as "the process of completing the projects". (Galliers, 1996,

p.3). Brancheau and Wetherbe (1987), Galliers (1993a, 1993b, 1994b), Galliers et al.

(1994a) and Watson et al. (1997) all found that improving IS strategic planning was and

is ranked the top issue among key information systems management issues identified as

being important and problematic. .

Planning of strategic IS does not ensure its implementation (Earl, 1993; Kearney, 1990;

Lederer and Sethi, 1988, 1992; Levine and Rossmoore, 1993; Premkumar and King,

1994a, Ward and Griffiths, 1996). Lederer and Sethi have supported this observation in a

survey (1988) and in a study by Gottschalk (1995a). (Gottschalk P (1999))

28


But according to Gottschalk P not only planning of the information technology can be

sufficient “despite a belief in its importance, in the past decade many organisations have

developed perfectly sound IS strategies that have been left to gather dust, or have been

implemented in a half-hearted manner”. Taylor (1997, p.336), too, found that “all too

often strategies remain ‘on the page’ and are not implemented”.

Office of management and budget presents following guidelines for the development of

information technology strategy. That could help ensure the proper implementation of

plan:

Define a portfolio that includes IT projects in every phase (initial concept, new,

ongoing, or fully operational) and for every type (mission critical, cross-

functional, infrastructure, administrative, and R&D) of IT system.

Develop levels of review, documentation requirements, and selection criteria

appropriate to the phase and type of IT system.

Define dollar thresholds that can be used to channel projects to the appropriate

agency decision levels to best accommodate organization wide versus unit

specific impact. Most important is the use of a consistent set of investment

decision practices throughout the organization. Some best practice organizations

submit projects to thorough investment reviews when costs exceed between 0.5

and 2 percent of the organization's IT budget.

Develop criteria for identifying projects of a critical nature that fall below the

dollar threshold but should be included in the investment review process.

Each attribute contributes to properly implementing the three phases of the

investment process. Senior managers and those helping to install the investment

process in each agency should keep these elements in mind during review of the

details of the selection, control, and evaluation phases. (office of management

and budget (1995)).

Performance standards for some types of system development are relatively clear. An

example is when a system is developed to support a specific new product or service. This

type of system can be evaluated based on well- specified and crystallized outcomes, such

as improved profitability or productivity in a specific service area. Here, the choice is

29


driven less by an inclination to conform or imitate and more by a desire to improve

specific results. Other types of system development, however, are made in situations

where beliefs about cause-effect knowledge are incomplete, decision criteria are

ambiguous, decision quality requires a long time to establish, and the success of a

decision cannot be evaluated autonomously but depends upon other decisions, the results

of which may not be accurately predicted or controlled. (Nicolaou A (1999))

The vast majority of technology officers, however, devote a considerable amount of time

and energy to strategic and financial planning. In most cases, their efforts follow the

traditional model of institutional planning; that is, a committee or task force gathers

information, conducts interminable discussions about what the institution needs, and

ultimately drafts a huge document that meets with overwhelming approval by the three

people who actually have time to read it. The relevance of the document to day-to-day

operations, the quality of services, and the implementation of new initiatives are often

questionable, although, oddly enough, few people seem to be concerned about this. There

is something about the development of a strategic plan for technology that makes it

worthwhile despite these shortcomings.

Technology organizations that enjoy the greatest success are those whose agendas clearly

serve the priorities of their institutions. Without a strategic planning process for

technology, it may be difficult to identify the connection between technology initiatives

and the institutional goals they are designed to support.

(CAUSE/EFFECT 1998 Volume 21, Number 1, Pp. 18-23)

Some technology officers and a surprising number of chief academic officers believe

technology planning fails because technology evolves too rapidly, there will never be

enough resources to satisfy technology demands, or users have no way of knowing what

they will need in the future.

Many of the researchers, however, provided a different set of answers. They blamed, for

example:

Failure to tie technology to institutional mission and priorities,

Failure to get the right people on board,

30


Excessive focus on technical detail, or

Lack of suitable leadership.

It's critical to remember that a plan is a statement about priorities and their

implementation, given our best knowledge at planning time, and that all kinds of events

will cause the unfolding of history to differ from the plan. Kenneth L . Kraemer has tried to

generalize the process of information technology planning according to him there are

some common practices that contribute to healthy technology planning processes,

regardless of the size and type of institution. The following ten-step method is an effort to

fuse these practices into a comprehensive approach Step 1 – Review institutional

objectives. Before initiating any Step 2 – Establish a framework of strategic technology

objectives Step 3 – Prioritize objectives. Even in a small institution, the list Step 4 –

Invite key group review. Before the framework of strategic Step 5 – Disseminate

strategic technology framework. The Step 6 – Translate objectives into operational

goals. In an ideal Step 7 – Discuss operational goals with key people. The annual list

Step 8 – Disseminate operational goals. The list of operational Step 9 – Enable

continuous input. Members of the community Step 10 – Conduct retrospective

assessment. Progress toward (Kraemer K et al Talon P (2000))

Behavior And Users

Information systems are often referred to as socio technical systems. That is they are

composed of technology related products and concepts that can only be fully understood

within the context of the people and organization that use those products systems.

developers should make sure that people and behavioral factors carefully considered

when designing and implementing information systems. Many systems have failed

because implementers overlooked the importance of human and organizational factors.

The people component of a management information system is often overlooked or under

considered .a long list of cases exist in which on the drawing board it appeared that

proposed information systems would work successfully however when implemented

these systems failed miserably . ( Parker C et al Case T (1999))

31


Marchand D et al Kettinger W, Rollins J, (2000) says that companies must do more than

excel at investing in and deploying IT. They must combine those capabilities with

excellence in colleting organizing and maintaining information and with getting their

people to embrace the right behaviors and values for working with information

Chan Caroline (1995) has found after conducting the case study in nine organizations that

In all cases, commitment has been suggested as the most important factor for

implementation success. Two aspect of this commitment refers to the commitment of

organizations on system initiatives, which is needed to support the process of

implementation (was refer to a more specific way: resource commitment) and trading

partners (or clients) commitment. Developing a sound business plan and achieving sign

off have been suggested for gaining these commitments.

Marks P et al Mccoy S, Polak P (2001) has discussed the knowledge sharing behavior of

different individual in organization and their effect on implementation. Knowledge

sharing may be considered unnatural in many organizational cultures where holding on to

unique and potentially valuable knowledge is a source of power (Goodman & Darr,

1999). In these organizations, simply sharing knowledge with peers utilizing traditional

methods (e.g., face-to-face, telephone conversations, etc.) can represent a significant

challenge., three factors were identified which effect the sharing behavior within the

organization, managerial control , social identification, social value orientation.

According to Marchand D et al Kettinger W, Rollins J (2000) companies that incorporate

a people centric, rather than merely techno centric, view of information use and that are

good at all three information capabilities will improve their business performance.

Opportunistic and need scanning must be continuous. Individuals should be assigned

from a central computer department to continuously conduct opportunistic and need

scanning. Active innovation identification will empower the organization to stay at the

forefront of innovation, reducing inefficiency and heterogeneity of solutions. Centralized

evaluation of innovation leads to standardization and better diffusion. Ensure the end-

users are involved in the match between innovation and need. Do not create a match just

to experiment with a new technology. There should be a need.

32


User support is the key to adoption. Demonstrate how this solution will benefit the user

(easier, better, more fun). If it does not, it is not a good solution. Adequate resources must

be committed to training and maintenance of the project. The champion must be visible,

creditable and enthusiastic. Network bandwidth and reliability must also be adequate.

(Zolla G. (1998))

As Land (1985), points out, ``it is not possible to redesign a robust, effective information

system incorporating significant amounts of the technology, without treating it as a social

system''. Even though the technology has improved over the last 30 years there are still

too many examples of failed system implementations

There is a need to appraise critically the way we carry out computer systems

development. It should not be seen as purely a series of formalized technical processes.

Computer system design appears to have become structured and formalized leading to a

problem-solving philosophy accepted uncritically by computer professionals. This

philosophy views the system development process as being a purely technical process

aimed at solving problems which are then defined in largely technical terms (Mumford

and Weir, 1979). This partial and Mechanistic bias within the system development

process may be a major factor leading to information system failure (Brooke and

Maguire, 1998). (Maguire S (2000))

Management factors e.g. managing change

According to Marchand D et al Kettinger W, Rollins J, (2000) good information

management should constantly focus on the decision contexts of managers and

employees. Because it is people who use information thinking about information needs

should be part of every ones job leaving the responsibility for good information

management to information specialists or IT staff may give temporary peace of mind.

Chan Caroline (1995) has pointed out that one of the important issues during system

implementation is related to managing change to as to ensure system acceptance. This

issue has often associated with education and training and was recognized as a partly

controllable factor (Winston and Dologite 1999). Although the organizations are aware

33


that a broader approach, such as resources allocation planning needs to be used, such a

change in approach has been extremely difficult due to the popularity of the current

business process with the company’s customers.

Middleton Catherine (1999) conducted research on implementation of IT in five different

settlement houses the project had following observations about co-ordination between the

team members during a project Early in the project, implementation activities were being

pursued in a disjointed fashion, with little forethought given to the ways in which these

activities inform and constrain each other. For example, one of the team members was

helping the houses to assess their needs for additional PC hardware and software, while

another team member was simultaneously refining budget allocations for PC

expenditures. Inadequate coordination between these team members resulted in confusion

on the part of settlement house managers concerning the alignment of their computing

needs and budget allocations.

Maguire S (2000) presents two ways of managing information system development

IMPLEMENTAION

Information system forced into organization

34

Hardware theory

Software theory

Problem solving techniques

File designFile structure

Educationand training

Change management

Use of information in organization

User reaction

Impact of I.S on organization


Information system

Information system introduced into organization

35

Project management

Decision making

Flexibility of I.S

Evaluation & Review

Environmental scanning

Return on investment


In the first case information system is forced into the organization and most of the

emphasis is on technical aspects of the implementation this is referred to as the hard

approach. In the second figure information system is introduced into the organization

keeping in mind its effect on users and how this will effect the environment of the

organization.

Based on data from several specific cases of runaway projects, we believe runaways are a

form of organizational decision-making failure. Consider this scenario: a development

project encounters some problems, which may be serious enough to cause the project to

fail. The decision maker(s) responsible for the project have two choices: continue the

project or abandon it (either terminate it or radically redirect it). If the decision maker

consciously chooses to continue committing resources to the project or never consciously

considers abandonment, the behavior represents an escalation of commitment or

escalation, for short the factors identified for escalation are. Independent Variables from

Project Management

Poor Planning

Poor Monitoring

Poor Control

Poor Estimation

Poor Analysis and Design (Dr. Anderson L (1996))

Leadership

The history of the world is rich with examples showing how individual leaders have

made a difference. Leadership is important to the study of MIS for a variety of reasons,

the changing role of MIS in may organizations is requiring different types of leadership

from MIS executives than what was expected in the past moreover since leaders are the

people who usually make a difference in an organization it is important for the systems

designer to identify leaders among users .MIS executives who are strong leaders often

able to have a significant impact on their organizations strategic plans and the overall

corporate perception of the MIS area. Strong MIS leaders can ensure that MIS concerns

36


are reflected in these strategic plans and that the MIS area will be able to help the

organization achieve its long term objectives. MIS executives the obvious leadership

qualities especially those with a vision for the role that the MIS area should play in the

future. Are likely to help develop and maintain a positive image for MIS throughout the

organization. (Parker C et al Case T (1999))

Dong L, Neufeld D (1995) propose that implementation effectiveness is determined by

implementation climate and innovation values fit, which are affected by transactional

leadership and transformational leadership which means that leader ship is the driving

factor behind the implementation model.

Much research has been done in an attempt to identify the key factors that predict system

implementation success. Over 150 factors have been identified, but only two "top

management support" and "user involvement" are consistently associated with successful

implementations (Sitting D Ph.D (1995) )

Office of management and budget has emphasized the importance of top management

support in the successful system development. Organizational processes should include

the following elements:

Senior program managers, with authority to make key business and funding

decisions on IT projects, are continuously involved in the process.

A disciplined and structured management forum is used to make IT investment

decisions, with the authority to approve, cancel, or delay projects, mitigate risks,

and validate expected returns.

Program, Information Resource Management (IRM) , and financial managers

with clearly defined roles, responsibilities, and accountability for the success of

IT projects. (Office Of Management And Budget (1995))

According to Nicolaou A (1999) institutional pressures will force the leaders to become

prominent and drive the process of system implementation.. By virtue of what they deem

relevant, institutional pressures also prescribe specific skills and expertise as important,

helping to privilege those within organizations who hold such expertise and skills. Thus,

institutional pressures help to employ specific groups of individuals as system

champions. System champions are at a fairly high level of the organization and take on

37


the responsibility of shepherding a project throughout the whole development process

(Beath and Ives, 1988; Beath, 1991). They also can effectively deter resistance from users

and promote change (Markus, 1984). The result is an implicit bias in system development

that reflects the ``champion's'' expertise and training as well as what they perceive to be

important or not important.

The goal of top management must be to provide leadership in the process of defining and

meeting campus-wide academic information technology requirements. The leaders must

be informed, engaged, and supportive and share a common vision and commitment to

assign resources and their personal attention to what the process develops and

recommends. It is essential that the leaders integrate planning and implementation in the

technology area with those that are occurring in all other areas of discourse relating to the

teaching/learning process of the organization. (Grimes J et al Zingg P, Hanley J, (1999)

Presidents and provosts must either set their own vision for the future of their institution

or they must advocate for a more collectively developed vision. In either case, they must

enable their institution to establish a clear understanding of the degree to which the

institution should invest in information technology. The purpose of such an

understanding is to address transformation and spending (Gurbaxani V et al Melville N,

Kraemer K, (2000))

Grimes J et al Zingg P, Hanley J, (1999) has discussed the responsibilities of chief

information officer (CIO), in a university context. The CIO responsibilities include

defining the information technology vision for the campus, providing the leadership to

insure successful implementations, and engaging the campus community in the planning,

prioritization, and assessment phases of initiatives and projects. The CIO must help the

campus develop, and then, promote a vision for the role of information technologies in

supporting the core functions of the University, including the direct use of IT in

instruction, the sustenance and improvement of the processes underlying program

support, and the development of a community of scholars.

Change management is another critical element in the successful CIO’s portfolio of

responsibilities, both as an agent of change from within the IT profession, and as one of

several campus leaders who must articulate how change is to occur, how it is to be

38


funded, if/where resources are a key to the change, and what are the essentials that need

to be supported at the professional and personal level from within all the constituent

stakeholder groups ( faculty, students, and staff). This is and will be a truly "engaging

and empowering role" that is most demanding as progress is made and obstacles to

progress intervene

Politics can not be eliminated from an organization, a strong leader can help an

organization over come the hurdles in implementation created by politics. Political

support must be generated for the innovation. A champion must emerge who has the

capability to allocate resources and the power to gather support for the new process. If

support cannot be gained, drop the project. Adequate resources must be committed to the

design team. In radical new technology, create a simple implementation first to create

support for later complex solutions. (Zolla G (1995))

A proper balance must be kept in leadership Strategic planning processes can suffer as

badly from too much leadership as they can from too little. Anecdotes abound of chief

technology officers who assume a mantle of techno-mysticism and exercise near-total

control over the planning process Each organization has a number of decision-makers

who can play a pivotal role in pushing technology plans forward or making them grind to

a halt. Unless such people are brought into the technology planning process in an

effective way, the process can be crippled (CAUSE/EFFECT 1998 Volume 21, Number

1, pp. 18-23)

Resources Financial resources are critical to virtually all information technology efforts (information

technology is, unfortunately, an expensive business). Except in rare instances,

the strategic planning process is the primary way institutions identify their required long-

term funding levels for technology and obtain funding commitments. ( CAUSE/EFFECT

1998 Volume 21, Number 1, pp. 18-23)

Innovation is a new way of doing things. Mohr (1995) states that an organization must

possess and be willing to commit the resources needed to implement a new technology

39


for it to be successful. He writes that “Innovation = Motivation times Resources” . (Zolla

G (1995)

In most companies the time attention and expertise of top quality IT people are in short

supply companies with high levels of information orientation understand this, they focus

their best IT resources on information capabilities that make them distinctive

Middleton Catherine (1995) conducted the research in five settlement houses and found

that lack of resources could hamper the planning and co-ordination of implementation

plan. Due to resource constraints early in the project, the implementation team was not

able to formulate a comprehensive implementation plan or institute project coordination

meetings. Eventually with the provision of resources coordination improved as team

members forged working relationships and adopted coordination mechanisms.

Grimes J et al Zingg P, Hanley J, (1999) has concluded in the case study of Cal Poly

University that a key factor for a successful process for providing information technology

resources is appropriate financial support. This will be realized if the three legged stool of

state support, student fees and tuition, and grants and private support is balanced and

delivers the critical mass of financial support and resources to advance the agreed to

agenda. At Cal Poly is investing considerable effort to insure that the annual budget is

"the arithmetic expression of the plan" and that, as such, it is clearly derived from the

initiatives which have been agreed to and which are core to the goals and strategies

developed within the plan. Accordingly, the budget must be open, available, and

thoroughly understood by the Chief Academic Liaison, the Chief Information Officer,

and Chief Academic Officer.

Implementation stages or processes

In this section I have tried to present different processes of information technology

implementation that have been discussed in the literature.

National Computing Center in Manchester defined the system development process as a

number of stages. Seven were identified: feasibility study; systems investigation; systems

analysis; systems design; systems development; implementation; and review and

40


maintenance. These stages were later revised but are still generally viewed as the key

elements of the computer system (Maguire S (2000))

Chan C (1995) has presented the following processes for the implementation of IT

According to this model implementation takes place in three stages or processes

1. The change process describes the process of change, which results from the

introduction of a new technology or policy. Caroline Chan further divided the

change process into four stages.

Initiation describes the initial process of implementation, which often includes

experimentation and a feasibility study. This follows the decision to adopt or not

to adopt the technology.

Systems development describes the process of installation and development of

the systems and includes the systems study, systems design and systems testing.

Routinisation relates to the process of utilizing or using the technology.

Diffusion & expansion is the last stage of the process to diffuse the use of the

technology into the organization’s various business units, as well as expanding the

technology externally to trading partners.

2. Growth process describes the maturing use of the information systems within the

organization; implementation usually starts with a simple bilateral relationship on

a single application and moves toward more complex multi-lateral relationships.

3. Integration process is the process of integrating or incorporating the new

business process into existing business processes. The B2B e-Commerce

integration process of technologies such as EDI has been discussed in depth by

Swatman (1993). This study examined the process of EDI integration within a

number of Australian organizations and suggests four stages of the integration

process.

companies with high information orientation view information as having a life cycle with

discrete valuation points. These valuation decision are made continuously as people work

and they are reinforced through communication formalization of best practices and on the

job training (Marchand D et al Kettinger W, Rollins J, (2000))

41


According to office of management and budget (1995) the investment process, depicted

in below, consists of three phases: selection, control and evaluation. As Figure 2.1

indicates, the three phases of the investment process occur in a continuous cycle of

selection, control, and evaluation. Information from each phase flows freely among all of

the other phases with the exception of evaluation. The evaluation component of the

process has a unidirectional information flow to the selection component. The evaluation

component is used to verify or modify the criteria used during selection.

Figure 2.1

Research work in the field of IT implementation

in this section I have tried to compile some of the important research work done in the

field of information technology implementation in different organization

Catherine Middleton, York University, Canada has tried to find the effect of user

satisfaction on the success or failure of system implementation author conducted the case

study of two universities where information system has been implemented, the purpose of

the study was to find out the perception of the primary and secondary user about the

system and then to find out the effect of these perception on the success or failure of

system implementation the results of the survey are given in the table 2.1.

42


Evaluation CriterionPrimary Users' Perspective

Secondary Users' Perspective

Primary Users' Assessment

Secondary Users' Assessment

Was the project terminated? No No Success Success

Was it agreed that the project was a failure?

No Uncertain Success Uncertain

Did the users resist the system? No Yes Success Failure

Were the users satisfied with the system's scope?

Yes Uncertain Success Uncertain

Was the system designed to meet users' needs?

Yes No Success Failure

Was the quality of the information system acceptable?

Yes Not entirely Success Failure

Was the information produced by the system of acceptable quality?

Yes Sometimes Success Failure

Was the information used? Yes Not always Success Failure

Did the information impact upon management decisions?

Yes Sometimes Success Failure

Did the information impact organizational performance?

YesLack of info. had a negative impact

Success Failure

Did senior management support the system?

Yes No Success Failure

Was the system able to evolve with a changing organizational environment?

Yes Uncertain Success Failure

Table 2.1

The table 2.1 shows two vastly different assessments of the system. As expected, the

system designers and primary users considered the system to be a success on most

criteria. In stark contrast, the staff in the faculties and the marketing office viewed the

system as inadequate and unresponsive to their needs. From their perspective, the system

was a failure. Because users were led to believe that the system was technically complex,

they did not demand access to it immediately. The developers allowed users no access to

43


system documentation, thereby perpetuating the myth of technical complexity and

discouraging users from learning the true capabilities of the system. The control that the

developers exerted over system access is indicative of a faulty design process. By their

refusal to accord users the necessary access privileges for effective system use, the

systems designers exhibited a Theory X view of the system users

(Middleton Catherine (1995))

Dong L, Neufeld D (1999) has tried to develop a model which could be used to find out

the effect of effective leadership on the implementation of information system in the

organization This research has combined the model of leadership with Klein and Sorra’s

theory of innovation implementation and combination gives us the following model

Figure 2.2The following results were derived regarding the effect of leadership on implementation process.Leadership Implementation climate Innovation value fit Implementation

effectivenessStrong transformational and strong transactional

Strong climate with clear vision

Good Employee enthusiasm committed and consistent innovation use

Neutral Employees enthusiasm at best., likely exhibit committed and consistent innovation use

Poor Employee enthusiasm at best, likely exhibit committed and consistent innovation use.

44

Transactional leadership

Transformational leadership

Innovation value fit

Implementation climate

Implementation effectiveness

Innovation effectiveness


Strong transformational and weak transactional

Weak climate with clear vision

Good Employee frustration and disappointment, inadequate innovation use

Neutral Employee frustration and disappointment, inadequate innovation use or no use

Poor Employee frustration and disappointment, inadequate innovation use or no use

Strong transactional and weak transformational

Strong climate without clear vision

Good Employee enthusiasm, committed and consistent innovation use

Neutral Employee indifference, adequate innovation use

Poor Employee resistance, no use

Weak transformational and weak transactional

Weak climate without clear vision

Good Employee frustration inadequate innovation use

Neutral Employee indifferent, no innovation use

Poor Employee relief, no innovation uses.

Table 2.2

Gottschalk P (1999) has tried to find that "What content characteristics of formal IT

strategy predict the extent of plan implementation?"

Thirty-five organizational practices of importance for IS plan implementation were

identified in the research literature. Ten predictor constructs were derived from the these

practices (Gottschalk, (1999)). For each of the ten predictors, one hypothesis was

formulated stating that the greater the extent of the content characteristic, the greater the

extent of plan implementation.

Content characteristic as information predictor

Full regression beta

Full regression t_test

Stepwise regression beta

Stepwise regression t-test

Resources .078 .766Users .158 1.665 .233 2.892Analyses .019 .17Changes .138 1.407Resistance -.065 -.628IT .015 .173

45


Relevance .048 .449Responsibility .189 1.672 .298 3.692Management -.071 -.599Issues .145 1.408

Table 2.3However, none of the content characteristics are significant implementation predictors.

When stepwise regression (Hair et al., 1995) was applied, two of the ten predictors have

significant Coefficients in the multiple regression equation. Firstly, the description of

responsibility for the Implementation was associated with the highest explanatory power

since it achieved the highest Beta coefficient. Next, the description of user involvement

during the implementation proved to be the other significant predictor. The adjusted R-

square of the stepwise model is 0.19. None of the remaining eight potential predictors is

significant. The most surprising result of this study, both from a theoretical and practical

perspective, is the relative lack of importance of management support.

Marchand D et al Kettinger W, Rollins J, (2000) has developed a measure of information

technology orientation of a company, which was called information technology

orientation which measures the capabilities of a company to effectively manage and use

information.

Information technology practices (ITP)

CapacityThe capability of a company to effectively manage appropriate IT applications and infrastructure in support of operational decision making and communication processes

IT for operational support IT for business process

support

Information management practices

CapabilityThe capability of a company to manage information effectively over its life cycle

Sensing Collecting Organizing

Information behaviors and values

CapabilityThe capability of a company to instill and promote behaviors and values in its people for effective use of information

Integrity Formality Control

46

Information orientation (IO)Measure the capabilities of a company to effectively manage and use information


IT for innovation support IT for management support

Processing Maintaining

Sharing Transparency Proactive ness

Figure 2.3

Two banks were studied and their Level of information orientation was measured. The

comparison of bank A and bank B shows high IO companies excel at building systems

that support flexible decision making by managers and employees. Bank A’s goal for IT

systems development has been a straight forward one: provide the people in the branches

( The bank’s cornerstone) with the necessary tools to improve their decision capabilities

by analyzing risk monitoring market position , forecasting changes in business conditions

an providing information for proactive marketplace responses .High IO can help

companies get better results out of their IT implementation.

A customized model was created by Zolla G (1995) which consist of four stages through

which the organization passes while implementing its information technology the author

conducted case study of two organizations to measure the factors which effect the

implementation in each of these stages.

The model was designed by modifying Cooper and Zmud’s model as well as using an

approach adopted by Liu Sheng

The four-step process includes:

A. Scanning/Matching

Opportunistic and need scanning must be continuous. Individuals should be assigned

from a central computer department to continuously conduct opportunistic and need

scanning. Active innovation identification will empower the organization to stay at the

forefront of innovation, reducing inefficiency and heterogeneity of solutions. Centralized

47

Scanning/matching

Fit DiffusionAdaptation


evaluation of innovation leads to standardization and better diffusion. Ensure the end-

users are involved in the match between innovation and need. Do not create a match just

to experiment with a new technology. There should be a need.

B. Fit

Political support must be generated for the innovation. A champion must emerge who has

the capability to allocate resources and the power to gather support for the new process. If

support cannot be gained, drop the project. Adequate resources must be committed to the

design team. In radical new technology, create a simple implementation first to create

support for later complex solutions. Ensure User involvement is incorporated at all stages

of the redesign.

C. Adoption

User support is the key to adoption. Demonstrate how this solution will benefit the user

(easier, better, more fun). If it does not, it is not a good solution. Adequate resources must

be committed to training and maintenance of the project. The champion must be visible,

creditable and enthusiastic. Network bandwidth and reliability must also be adequate.

D. Diffusion

Full-time advocates of innovation change must be assigned to the process. Change agents

must be encouraged to review all processes that could be enhanced by intranet

technology. Training must be continued to encourage user inputs for changes that can be

made. Rewards must be given to those who significantly contribute to the successful

implementation of the innovation.

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Chapter 3: Research Methodology

Introduction

This chapter will provide an overview of the strategy, which will be used to conduct

the research and derive the data necessary to answer the following research questions.

The three main research questions for this study are as follows:

What are the most problematic issues facing organizations with regard to IT planning?

What are the most problematic issues facing organizations with regard to IT

procurement?

What are the most problematic issues facing organizations with regard to IT

implementation?

The primary objective of this study is to identify and categorize the perceptions of

executives regarding which issues were most problematic to the information technology

implementation process. This study should assist in the future development of an IT

implementation model for organizations as well as provide an essential framework for the

future study of IT planning, procurement, and implementation effectiveness. The IT

implementation process is broken down into a simple system model for the purposes of

this particular study. The implementation process is viewed as a combination of three

integral parts, each of which involves a separate set of internal factors and processes.

Each part is necessary for the success of the following one yet each encapsulates it’s own

important process. As seen in this representation, IT planning has a direct impact on the

procurement process, and vice-versa—IT procurement and acquisition capabilities are

directly related to planning efforts. Procurement impacts implementation, which has a

direct impact on both the procurement and planning efforts.

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Simple IT Implementation ProcessFigure 3.1

This study will address a fundamental problem of IT implementation. Primarily the

numerous and varied issues which exist across the multiple levels of the implementation

process. Such multiplicity makes the entire process problematic. Due to the nature of the

implementation process, each set of issues must be viewed in layers corresponding to the

distinct stages in the overall process. IT planning issues are different from IT

procurement issues and yet each individual factor is inherently important to the whole

process and must be viewed ultimately in that context. This study breaks down each stage

of the process into a separate part to better identify the issues, which are specific to that

stage. Until each distinct piece of the process is viewed as a separate unit, it is impossible

to understand where the whole process might conceivably break down and which

particular issue or set of issues might be to blame. In the implementation process

described in this study, planning is listed as the first stage. This is based on standard MIS

process models.

The planning process provides a basic stepping-stone from which the rest of the process

continues. From the planning stage the process moves on to procurement or acquisition

processes. This is the first part of the process where the ideas laid out in the planning

stage begin to take shape. Once all of the necessary facets of the IT plan have been

acquired, the plan can be formalized and implemented. Each stage is intimately related to

the others—failure to plan adequately impacts both procurement and implementation.

Conversely, a breakdown in implementation may inform future planning efforts or

require review and revisement of the original plan. Without the procurement portion of

the process, implementation would be impossible. The acquisition of the proper

50

ITPlanning

IT Procurement

IT Implementation


technologies and budgeting for future acquisitions are integral to effective

implementation of IT. Each stage of the implementation process demands careful

consideration and foresight as they are all symbiotically related.

Basic Approach to the Research

At it’s most fundamental level this is a cross-sectional study designed to collect

descriptive data on the issues surrounding IT implementation. This study represents the

perceptions of executives in different organizations. The perceptions detailed here are

very important because in the volatile area of IT all involved individuals and

organizations are trying to make proactive headway. Public and private sector

organizations are involved in improving or changing their IT implementation strategies.

A cross sectional study is determined to be especially useful since the purpose is to gather

pertinent information on individual attitudes and explore areas for further research. The

data produced in this study is essentially a screening for variables, which may prove to be

worthy of further study. This study will be conducted in three stages and involved an in-

depth analysis and review of the issues, which exist for executives with regard to the IT

implementation process in their organizations. In stage one—a literature review is

conducted to identify the prevalent issues surrounding the development of information

technology. These issues were extremely important in that they provide a foundation for

current issues. The initial research conducted in the first stage of the study also included

the identification and observation of current trends relating to IT implementation. The

information garnered from this portion of stage one is reflected in the literature review,

description of the issues, and the issues database. Possibly the most crucial portion of

stage one involved the creation of an IT issues database which will be designed to

accommodate the information derived from a interviews conducted with executives from

different organizations. The issues derived from this portion of the study will be

categorized in the database for ease of use and updated throughout the process of the

study. This stage also provided the necessary background information to develop a basic

set of definitions and concepts which were then reviewed and updated based primarily on

51


responses from the initial interviews with respondents The second stage will consist of

interviews with IT professionals to aid in developing shared meanings and terminology,

as well as to determine additional concepts, factors, and ideas for the research. The

information. Garnered will be used to enhance the database created in stage one as well

as to serve as a framework for the design of the descriptive survey in stage three. From

the information derived in stages one and two a comprehensive survey will be developed

which will then sent to the target survey group

Stage 1 Stage 2 Stage 3

Design “IssuesDatabase”.Design initialCategorization of ITissues for database.Identify as many of theproblems and factors which affect IT planning and implementation as possible from the literature, generalinterviews, observation.

Define terms and design initial interviews.Interview ITprofessionals to determine shared meanings, definitions, measures, andvariables.Reevaluation of databasecategorizations, definitions, and issues based on interviews.

Develop acomprehensivesurvey to be sent to IT professionals indifferent organizations.Identify crucialvariables (issues)which impact IT implementation.Second reevaluationof databasecategorizations,definitions, andissues based onsurvey information.Collect, analyze, andcreate reports fromthe data gathered inthe survey .

52


Research Methodology

The overall research design for this study is descriptive in that it made use of interviews

and surveys to solicit “expert” and practitioner opinion. The survey research sought to

identify the most problematic issues with regard to the implementation of information

technology in different organizations. After some common issues, descriptions, and

definitions were identified, a survey instrument is developed to help describe the most

problematic of these issues for executives in different organizations.

Stage One

The first stage of this study will consist mainly of the design of an “issues database”.

This database serves, throughout the course of the research, not only as an evaluation tool

by which to categorize the issues discussed specifically in this study, but also as a

continuous working foundation for more extensive research on a broader range of IT

issues. The initial categorizations for the issues were derived primarily from a review of

the literature pertaining to a number of areas crucial to information technology

management. A representative look at this literature can be found in chapter two of this

study. The original categorization system is made up of seven issue areas based on

interview responses and the initial literature review, these were:

Ethics and legal issues (those issues related to ethical conduct, professional

responsibility, and legal mandates/rules);

Architecture--hardware (hardware specific issues like compatibility, standards,

and platforms);

Architecture--software (software specific issues like program standardization,

data export );

Government records (those issues related to federal, state, and local records

requirements);

management issues (issues relating to management styles, contracting, budgets,

and strategic planning);

53


personnel issues (those issues pertaining to staffing, training, internal

organizational politics, modernization, and expertise or skill levels);

And value issues (those relating to internal and external value systems,

competition and effectiveness).

Each of the issue was reviewed, categorized, and defined to fit appropriately into the

database. Over the course of this study the database was adjusted with new, more

appropriate categorizations based on subsequent findings. In addition, duplicate records

(and any information not related to IT implementation) were removed to make future

analysis less cumbersome. The information accumulated in the issues database will be

discussed later.

Stage Two

The second stage of this project provided a key bridge between the initial gathering of

general information with regard to information technology management and the final

description of the most problematic and fundamental issues to the specific process of IT

implementation. Stage two involved the design and conduct of a general interview. Much

of the design for this interview is garnered from the review of the literature, preliminary

interviews with interested professionals/practitioners, and issue identifications from stage

one. The interviews conducted for the study were, by design, structured and the questions

were open-ended.

These interviews will used to determine a common ground and basis for communication

of terminologies. This set of interviews will be informal and conducted in person . Each

respondent’s answers will be entered into a database for analysis and review.

54


Interview Questions

1. “Information technology” is defined as any equipment, services, applications, and

basic technologies related to information access, dissemination, collection, and storage.

ITs are commonly grouped as computers, multimedia, and telecommunications. Would

you agree with this definition, would you add to it or redefine it in any way?

2. What do you perceive as the “role” of information technology in your organization?

3. “IT implementation” is defined as a process (via a definite plan or procedure)

Employed in getting a new or significantly changed system in use for those for whom it

was intended. Would you agree with this definition, would you add to it or redefine it

in any way?

4. IT implementation process is broken down into 3 parts: IT planning, IT procurement,

and IT implementation. Would you agree with this categorization, would you add to it or

redefine it in any way?

5 Information technology implementation planning is broken down into two opposite

categories: (1) coordinated and comprehensive—which refers to a plan that includes

more than two departments in an organization, involves most of the functions of

organization, and is written down and agreed upon by planning participants, (2) insular--

which is any IT implementation plan made by a single department or individual within a

department written or otherwise. Would you agree with these definitions? Would you

redefine them in any way?

6. Have you developed a comprehensive plan to develop and implement ITs?

7. Do you have a comprehensive plan with regard to IT in your capital improvements

program or plan?

55


8. What are some of the written procedures and guidelines that you have to follow when

implementing ITs in your organization?

9. Do you see your organization as using more (1) coordinated and comprehensive or (2)

insular planning methods with regard to IT implementation?

10. Do you perceive your planning approach as being sufficient and effective with regard

to IT implementation? If not, what additions do you think would enhance your planning

process?

11. Have you done a comprehensive study of your IT needs and desires with the ultimate

intention being the development of a plan specific to IT implementation?

12. IT implementation deficiencies (failure issue) is defined as any instances where

problematic situations arise—anything from ineffectiveness and inefficiency to complete

and catastrophic systems failure. What kinds of instances or situations would make you

consider a particular IT implementation not completely successful or deficient?

13. What is the most recent instance of IT planning and implementation you have

undertaken?

14. Formal IT implementation model is defined as well defined guidelines which provide

for continuous, comprehensive, and coordinated planning and implementation with

regard to IT. The model should be duplicable and provide specific directives (similar to a

handbook). Would you agree with this definition or would you change it in any way?

15. Does your organization make use of any model (formal or otherwise) when planning

or implementing ITs? What made you choose this particular model?

56


16. Were there any particular examples that you followed when planning for or

implementing ITs? What were the sources of the models of planning and/or

implementation that you used?

17. How did you decide on your implementation process?

18. Does your organization make use of any consultants or consulting firms to aid in your

IT planning and implementation? What kinds of consultants are you using, are they from

private sector firms? What made you choose a particular consultant?

19. Did you look to any other governments or public organizations for examples of IT

implementation and planning? Did you use examples from the private sector?

20. What are some of the biggest problems you face when planning for IT

implementation?

21. What are some of the biggest problems you face with actual implementation of ITs?

22. What things do you see as setting you apart from other organizations in general, with

regard to ITs and IT implementation?.

Stage Three

The third and final stage of this study consisted of the development and conduct of a

survey instrument. The survey is designed to be more specific and detailed than the

interview conducted in stage two. The responses and issue information garnered from

both of the first two stages will be used in the production of this survey. This instrument

will be designed to provide a descriptive view of the perceptions of executives with

regard to information technology implementation in their organzations-- specifically the

problematic nature of certain issues in each of the three pre-defined stages of the IT

implementation process. The content validity of the questions used for this survey is

57


initially established by ensuring that the definitions and concepts addressed will be

grounded in fact or established theory as well as verifying through the stage two

interviews that there is a common understanding among this particular respondent group.

The survey is broken into two parts--general descriptive information, and process specific

issue information. In the first part of the survey respondents will be asked to identify the

kinds of ITs of which their organization makes use. In addition they will respond to

general questions about IT expertise levels and their IT implementation process.

In the second part of the survey each respondent are asked to rank how problematic an

issue is with regard to its place in the IT implementation process.

Sample and Population

Two sectors were selected for this study, pharmaceutical and banking sector, different

modes were used for getting the questionnaire filled and getting high return rate. (1)

Some of the questionnaires were mailed to different pharmaceutical companies and

banks. (2) Rest of the questionnaire were sent through e-mail, An e-mail format was

developed which could be filled on line by the respondents and returned back to the

sender, this format helped a lot in increasing the response rate.

Because there was no complete list available for pharmaceutical and banking sector, I

have to use non probability sampling. Questionnaires were sent to 115 pharmaceutical

companies and 67 banks. The response obtained from pharmaceutical sector was 30 and

from banking sector 20.

Statistical Analysis

The sample size employed in this study necessitate the use of descriptive rather than

inferential analysis techniques. In addition, the ordinal-level data collected by this study

also dictates the use of descriptive analysis. The objective of this kind of analysis: to

describe—in a systematic manner—the details and characteristics of a given population

factually and accurately is clearly laid out by the following points that the purpose of any

descriptive research, or survey study is:

To collect detailed factual information that describes existing phenomena.

58


To identify problems or justify current conditions and practices.

To make comparisons and evaluations.

To determine what others are doing with similar problems or situations and benefit

from their experience in making future plans and decisions.

This study will make use of all of these purposes to some degree, however items 1 and 2

best describe the primary motivations of this research. For the coding of data, reduction

and analysis, different software will be used ( e.g SPSS). The main statistical technique

employed involved frequency analysis. Interview and database data will be analyzed

using content analysis. Data from survey will be first analyzed for measures of frequency

in order to reveal how the issues could be clustered and what is typical about them. This

process occurred around both the individual parts of the implementation process as well

as the series of all three stages. In addition the analysis also centered on perceptions of

the planning and implementation process as viewed by the respondents.

Limitations and Assumptions

One of the inherent limitations in survey research is the subjectivity of each respondent.

No matter how carefully written or completely tested, each survey is vulnerable to

differing interpretations of the questions. Because of the descriptive purpose of this

survey and because the main focus of this research is to statistically prove relationships

between issues but to determine the most problematic ones, this particular limitation is

recognized and accepted in this study. In addition, it is possible that some responses will

be the result of defensiveness, apathy, or ignorance of a particular respondent. Another

limitation may be derived from distortion of the perceptions of individuals about

information technologies and their relationship to the given organization. In this

particular study it is impossible to assess the influences of organizational environments,

the personalities of the administrators, and any external factors. In addition, the utility of

the process of IT implementation does not lend itself to specific or accurate measures of

effectiveness. Individuals and their closeness or buy-in to the process may bias the

responses with regard to the perceptions of effectiveness in terms of IT implementation in

59


a given organization. The stage two interviews consisted mainly of open-ended questions,

which in one sense offer valuable insight into why individuals believe the things they do,

but the interpretation of those beliefs is at best problematic. This survey is very small and

there is a lack of validation of survey responses from a broader sampling across the

organizations. In any event, this study is diverse enough to derive some significant

conclusions with regard to IT implementation issues at the organizational level. The

survey instruments themselves suffer from measurement and sampling problems, which

may include: criteria, content, construct validity, and reliability of the instruments

themselves. Although there is some data to show that a causal relationship exists between

some of the variables, with a study of this size and nature it is impossible to show full

elimination of any rival independent variables.

60


CHAPTER 4: DATA ANALYSIS

IntroductionThis chapter will present the results of the data collected from the executives who

responded to the questions surrounding the problematic issues of the IT development and

deployment process. This analysis is organized around the descriptive research questions

posed in the first chapter and advanced methodologically in chapter three. Analysis of

data is provided for each part of this study, which included:

A database of issues relating to IT implementation in organizations

General IT related information with regard to respondents

Issues specific to IT planning

Issues specific to IT procurement

Issues specific to IT implementation

This chapter will begin with a general discussion of how the issues were categorized in

order to facilitate analysis and enhance the understanding of the context of the issues

database. Included will be an account of the data collection effort. Following will be a

discussion of the data collected from the actual surveys. This chapter should provide a

bridge for the reader to chapter 5, which offers the conclusions and recommendations of

this study.

Issues Categorization

As discussed in chapter one, the initial categorization (prior to any in-depth research) of

the issues was very broad. All of the issues were viewed within one of two contexts—

either management or organizational processes. It became apparent, as the literature

review and initial interviews progressed, that the originally conceived issue

categorizations were insufficient. A more expansive picture of the spectrum of

organizational influences based on the issues was obviously necessary.

A preliminary version of the issues database provided a secondary group of

categorizations that more fully portrayed the arenas of effect for each IT implementation

61


issue. This particular category grouping added the areas of architecture, federal

requirements, specific personnel issues, and value added issues. After careful review, a

final set of categories was designed which—when combined with the issues themselves

as a sub-category—provides a more complete and usable system by which to organize the

multitude of issues relating to the IT development and deployment process. The final

categorizations for use with this study are the issues pertaining to: Leadership,

Management Process, Organizational Environment, Technical Systems, and Personnel.

Leadership issues reflect those areas that require the interaction, commitment and

direction of the organization’s chief executive, such as interdepartmental coordination

and administrative support. This issue area reflects the premise that organizational change

occurs from the executive level down, necessitating the involvement of top management

in the IT development and deployment process. In a similar vein, those issues

characterized in the management process area relate specifically to administrators and

their role in the functional operations of organizations, as in budgeting, personnel

management, and general management: In essence, any issues which require specific

attention or directives from an administrator. The issues characterized as organizational

environment are broader, addressing factors, which are less tangible and more difficult to

define, such as organizational culture, change, and behavior. These are essentially issues,

which affect or may be affected by environmental factors, both external and internal.

Technical systems issues are primarily those related to the impact information

technologies have on organizations and individuals based on their specific nature. These

issues include hardware and software considerations as well as the compatibility and life

cycles of various information technologies. Finally, personnel issues are those factors

surrounding each individual in the organization, such as individual expertise levels,

staffing levels, and resistance to change. These issues are significantly impacted by the

human conditions related to interactions, personal feelings, and perceptions. In addition

to the breakdown of issues into the types just discussed, they were also separated by their

role in the IT development and deployment process that is, whether they were present

during planning, procurement, or actual implementation. Many of the issues impacted

two or even all three of these areas. Figure shows a simple model of the integrated nature

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of these issues on the IT development and deployment process. Essentially, this model

adds to the simple process shown in figure 4.1 and adds the surrounding issue areas to the

environment in which the process takes place.

To better represent this influence across the entire process, a third categorization was

developed referred to in this study as “dynamic nature.” In essence, issues which arose

in all three process areas were labeled “dynamic.” Those impacting two of the three

process areas were labeled “potential dynamic” and those found in only one area have

been called “specific.” As discussed previously, most of the issues have an impact on

more than one of the process areas. One of the more interesting findings shown in this

table can be seen among the management process issues. This particular issue type has

the broadest spectrum of issues impacting more than one process area. The greater

portion of which is “dynamic” affecting all three areas in question.

Figure 4.1

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The IT Issues Database

As discussed in chapter three, stage one of this study involved the creation of an IT

Issues database, which can be found in appendix. The initial categorizations for the issues

were derived from a review of the literature pertaining to a number of areas crucial to

information technology management, including but not limited to the following: general

management theory, management of information systems, information systems theory,

strategic planning, and systems design. The original categorization system was structured

around seven issue areas based on interview responses and the initial literature review,

ethics and legal issues, architecture hardware, architecture software, government records,

management issues, personnel issues, and value issues. For the purposes of this study, the

database was modified and expanded to make the information contained more

understandable and useable as a future resource for IT issues study. Contributors to the

database were asked to give a general categorization to the issue and then to describe it

more completely. For the purpose of this study a content analysis of the database was

performed, duplicate entries were removed, and non-IT related issues were deleted. One

of the most important findings from the analysis of the data contained in this database

was the formulation of a breakdown of IT issue types. These were then used as a primary

categorization tool. Sub-categories were derived from the separate IT development and

deployment process issues used in this study. (See table for category and issue

breakdowns.) The complete database can be found in Appendix.

Issue type It planning IT procurement IT ImplementationLeader ship issues Interdepartmental coordination Interdepartmental coordination

Individual support Individual support Individual supportOrganizational support Organizational support Organizational supportTime frame and scheduling Time frame and scheduling

Management process issues No strategic/formal plan No strategic/formal plan No strategic/formal planFiscal/budgeting issues Fiscal/budgeting issues Fiscal/budgeting issues

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Lack of planning modelOrganizational directives Organizational directives Organizational directivesWritten procedures/guidelines Written procedures/guidelines

Organizational environment issues

Organizational culture Organizational culture Organizational culturePolitics internal/external Politics internal/external Politics internal/externalRapidly changing technology Rapidly changing technologyContracts

External consultantsTechnical system issues Existing system Existing system

Standardization issues Standardization issuesCompatibility issues

Personal issues Organizational IT expertise Individual IT expertiseInternal leadershipPersonnel issues

Adequate staffingResistance to changeTraining

Analysis of General IT Data

A number of the questions, which the executives were asked for a response to were

designed specifically to determine important background information about the

information technologies available at the organization and to ascertain some of the more

important situations which might shed some light on the issues being discussed.

Organizational IT Usage and In-House MIS Department The first of the background

questions dealt with what kinds of information Technologies each organization used. This

information is very useful in determining at what IT levels the organization is operating

at. All of the respondents from pharmaceutical sector reported the use of microcomputers

in their organization, 87% had some form of LAN or WAN, only 20% organizations

made use of distributed systems, 12 of the organization are using some form of decision

support systems, no one used GIS or GPS technologies, only 2 organizations reported the

use of some form of cellular technologies, 26 (93%) had internet connections, 3% used

mainframes or minicomputers, 3% of the respondents reported making use of any kind of

expert systems.

.

Banking sector

65


Type of technology Percentage usage

Micro computer 100%LAN WAN 85%Distributed system 15%Decision support system 40%GLS or GPS 0%Cellular Technology 40%Intranet 40%Main frame 45%`Internet 80%Scanner 85%Expert system 0%

Pharmaceutical sector Type of technology Percentage usage

Micro computer 100%LAN WAN 86.7%Distributed system 20%Decision support system 46.7%GLS or GPS 0%Cellular Technology 6.7%Intranet 46.7%Main frame 3.3%`Internet 93.3%Scanner 53.3%Expert system 3.3%

The major difference between pharmaceutical and banking sector was that of cellular

technology as compared to 0% usage in pharmaceutical sector, 40% respondents used

cellular technology in banking sector. Main reason for this is the use of online banking

and use of ATM’s in most of the banks. Also 45% of the respondents in banking sector

used some form of mainframe computer to support their online banking or for the

communication of data between different branches where as only 3% of respondents in

the pharmaceutical sector used any kind of mainframe computers.

While this is certainly not a complete listing of the possible IT’s which could be used in

any municipality, it does provide a comprehensive view of the kinds of standard IT’s

which are being used today in organizations of all sizes. In addition to providing general

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IT usage information, respondents was asked whether or not their organization had an in-

house MIS, IT, or data processing department. 27 of the 30 (90%) had a department

formalized around the management of information technologies in pharmaceutical sector.

Where as all the banks reported to have some form of IT department.

Strategic Planning for IT

Respondents were asked to address a set of questions with regard to their actual IT

planning process. The first of these questions dealt with whether or not their organization

made use of any kind of strategic planning process for the use, acquisition of, and

implementation of information technologies. 33% (10) of the respondents from

pharmaceutical sector stated that they used no strategic planning with regard to IT, while

20 of those surveyed, 66%, responded that they did make use of some sort of strategic

plan. Those 20 respondents from pharmaceutical sector who answered yes to the usage of

a strategic plan were then asked to respond to whether or not their IT planning process

was formal or informal only 5 or 26% of these made use of a formal process while the

other 74% or 14 respondents used a more informal approach to planning for ITs.

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In addition, respondents from pharmaceutical sector were asked whether or not they

made use of any existing IT planning and implementation models—formal or otherwise.

Only one respondent responded that an existing model was used for this purpose. 96.7%

or 29 respondents made no use of any models with regard to IT planning or

implementation.

In contrast to pharmaceutical sector all the respondents from the banking sector had

strategic planning and all of them had formal strategic planning process. This might be

necessitated by the minimum setup requirement of a bank, minimum scale requirement

for a bank is very high as compared to a pharmaceutical company this large scale

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investment necessitate the formal planning process for the implementation of information

technology. No IT implementation model was used by the banks for the implementation

of information technology.

Strategic planning for IT is extremely problematic. As discussed in chapter 1, no exact

model exists currently for organizations to follow as they undergo the IT development

and deployment process. This leaves these organizations adrift in a confusing and ever-

changing environment. Any IT planning that takes place at this level, formal or informal,

requires a huge outlay of energy and time in essence reinventing the wheel. Currently, a

best case scenario requires organizations to modify an IT implementation model which is

designed specifically for much different organizations. In light of the previous data:

expertise levels, planning, existing models it would seem that the next best option would

be the use of some kind of outside expert. Ideally, this would be an individual or

organization who specializes in addressing the IT needs of organization. Respondents

were asked whether or not their organization made use of any outside consultants to aid

them during their IT planning and implementation process. This question produced

almost an even split between the respondents of pharmaceutical sector 40% made use of

outside consultants and 60% did not.

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In case of banking sector most of the banks (19 out of 20) used outside consultants. This

is due to the complexity of technology used in banks as compared to pharmaceutical

sector. The inside IT expertise are not sufficient to handle the technicalities of IT

implementation.

The administrators were then asked whether or not their organization had an IT planning

and implementation committee. Twenty-seven (90%) from pharmaceutical sector

responded that they did not have any such committee in place. Only 3 (10%) stated that

they did have an IT planning and implementation committee, in banking sector no IT

committee was identified for planning purpose.

Executive IT Expertise

All respondents were asked to rate their own IT expertise level on a

scale of 0-5: 0

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being least proficient, 5 being extremely proficient. For ease of

reference this data was

then collapsed into three groups: novice (0-1), proficient (2-3), and

experts (4-5).

An equal number of the respondents from both the sectors labeled

themselves some where in middle as neither novice or expert users

with regard to information technology— 22 respondents from

pharmaceutical sector, or 73.3%, viewed themselves as more middle-

of-the-road, proficient users. Same is the case with banking sector 80%

of the respondents labeled them as proficient users. Typically,

individuals who labeled themselves “proficient users” of ITs were

primarily focusing on microcomputer skills. It is only within the last 5

years that middle to upper level managers have begun to use other

information technologies to a degree where higher levels of proficiency

and general competency are being achieved. It is obvious considering

the preponderance of microcomputers in our organization, that a

relatively high number of executives consider themselves proficient

users.

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Effectiveness of IT Planning and

Implementation

In the survey, executives were asked to address three questions

related to the effectiveness of their organization’s IT planning and

implementation process. These questions related to process

effectiveness and required all respondents to rate effectiveness on a

scale of 0-5, 0 being least effective, 5 being highly effective. For ease

of reference scaled data has been collapsed into three groups:

ineffective (0-1), somewhat effective (2-3), and highly effective (4-5)

The first of these questions asked respondents whether or not they

perceived their overall IT planning approach as effective. Most of the

respondents from pharmaceutical sector found their planning approach

to be some what effective (e.g. 2 or 3) , 24 respondents or 80% rated

it to be some what effective. In case of banking sector 65% of the

respondent rated their planning approach some what effective and

35% of the respondent rated their planning approach very effective,

this high percentage of high effectiveness in banks as compared to

pharmaceutical sector might be due to use of more formal planning

approach in banks as compared to informal planning approach used in

pharmaceutical sector

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again 73% (22) in pharmaceutical sector view their procurement

process as some what effective very few respondents marked it as

least or very effective. In case of banking sector 65% respondents

marked their procurement process as somewhat effective and 30%

respondents marked it as very effective.

The results of executives perceptions of their organizations IT implementation

effectiveness: almost 24 (80%) of the respondents rated their implementation process as

some what effective, 4% were seen as least effective, and only 2 (6.9%) of the

respondents rated their process highly effective. Again in banking sector 65% of

respondent rated IT implementation as somewhat effective and 35% rated their

implementation process as highly effective again this higher percentage of high

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effectiveness as compared to pharmaceutical sector is an obvious outcome of effective IT

planning and procurement.

As an additional source of information, respondents were also asked

how they might improve their organizations existing IT planning

approach—regardless of its perceived effectiveness. A content analysis

was performed on the 26 responses (response rate on this question

was very low and only 26 respondents out of 50 , from both the

sectors, answered this question . The results of this content analysis

are found in table.

How to Improve the IT Planning Process

Improvement Approach ResponseFrequency

Create an IT planning committee/group to facilitate and improve3

the process.

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Perform an IT needs analysis across the organization 4Make use of external IT consultants and internal experts when

3availableFacilitate better coordination across departments

4Creation of a MIS or IT department.

3Make use of formalized strategic planning for IT.

9

Perceived Role of IT in Organization

Respondents were asked to describe what they perceived to be the “role” of information

technology in their organization. Content analysis of the responses indicates that most of

those administrators surveyed viewed information technology as a tool for the

enhancement of organizational operations. The most common responses included

statements which pointed to enhanced communication across the organization and its

external environment as well as increased efficiency with regard to job/task performance.

A large number of the responses also included the role of IT as a tool for information

dissemination and sharing as well as for the provision of quick, efficient resources.

Finally, IT was perceived by many respondents in the role of improving service delivery

to customers and as a decision making tool for administrators.

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Analysis of Primary Data

The three key research questions of this study focus on the determination of the most

problematic issues with regard to IT planning, procurement, and implementation in

organizations For each of the three questions respondents were asked to rate each issue

given on a scale of 0-5 with 0 being not at all problematic and 5 being extremely

problematic. For ease of reference the scale responses have been collapsed into three

categories where “Not Problematic” represents scales 0-1, “Somewhat Problematic”

represents scales 2-3, and “Highly Problematic” represents scales 4-5.

Analysis of IT Planning Process Issues

Respondents were asked to rate 19 separate issues with regard to information technology

planning. Of all of these, the issues of lack of strategic planning, politics, organizational

culture and rapidly changing technology were perceived by the largest number of

respondents as being highly problematic for planning in pharmaceutical sector lack of

strategic planning having a mean response of 3.87, politics having a mean response of

3.63, organizational culture having a mean response of 3.37 and rapidly changing

technology having a mean response of 3.07 other issues in this category also received

substantial response as being highly problematic lack of planning model received 50%

response rate as being highly problematic (having mean response of 3.07 ). Also 30%

respondent marked interdepartmental co-ordination as very problematic (having mean

response of 2.63 ).

In case of banking sector inter departmental co-ordination was considered to be most

problematic with a mean response of 3.75, 70% of the respondents considered inter

departmental co-ordination as highly problematic. Rapidly changing technology was also

considered to be highly problematic by 55% of the respondents (mean response of 3.35),

politics was also marked as highly problematic by 50% (mean response of 3.15) of the

respondents. High problematic issues were almost the same for planning in the two

sectors with some difference of emphasis.

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It is interesting to note that the high problematic issue with regard to IT planning is the

rapidly changing nature of technology. An area, which has only become worse over the

last two years. It is probable that this issue exacerbates the problematic nature of the other

top issues in this area: lack of a formal plan, budgeting issues, and individual expertise.

As technology changes it becomes more and more difficult to keep up with the other

issue areas. Creating a long-term plan, which makes use of technologies, which change as

frequently as every six months may prove to be nearly impossible. The likelihood of an

executive level organizational administrator keeping up with this technology is equally

unlikely.

PHARMACEUTICAL SECTORIssue Not problematic Some what

problematicHighly problematic

Mean response

Inter departmental co-ordination

23.4 46.6 30.0 2.63

Strategic planning process 3.3 26.7 70.0 3.87Organizational directives 46.6 46.7 6.7 1.87Individual IT expertise 23.3 66.7 10 2.00Written procedure guidelines 50.0 40.0 10 1.73Budgeting issues 43.3 50.0 6.7 1.87Lack of planning model 20.0 30.0 50.0 3.07Internal leadership 30.0 36.7 30.0 2.47Contracts 60.0 30.0 0.0 1.17Time frame scheduling 56.7 33.3 10 1.60Politics 0 43.3 56.7 3.63Individual support 60.0 36.7 3.3 1.40Existing system 56.7 33.3 10 1.63Organizational culture 3.3 46.7 50 3.37Standardization issues 70.0 30.0 0.0 1.33Rapidly changing technology 16.7 33.4 40.0 3.07Personnel issues 63.3 30.0 6.6 1.57Organizational support 53.3 36.7 10 1.80

BANKING SECTOR

Issue Not problematic Some what problematic

Highly problematic

Mean response


0.0 30.0 70.0 3.75

Strategic planning process 5.0 75.0 20.0 2.90Organizational directives 25.0 75.0 0.0 1.95Organizational IT expertise 75.0 25.0 0.0 1.25Individual IT expertise 25.0 15.0 60.0 2.95Written procedure guidelines 40.0 60.0 0.0 1.60Budgeting issues 10 60.0 30.0 3.00Lack of planning model 20.0 20.0 60.0 3.05

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Internal leadership 20.0 35.0 45.0 2.90Contracts 20.0 50.0 30.0 2.55Time frame scheduling 40.0 30.0 30.0 2.20Politics 0 50.0 50.0 3.15Individual support 55.0 30.0 15.0 1.80Existing system 70.0 30.0 0.0 1.30Organizational culture 5.0 70.0 25.0 2.90Standardization issues 95.0 5.0 0.0 1.05Rapidly changing technology 0 45.0 55.0 3.35Personnel issues 25.0 70.0 5.0 1.85Organizational support 35.0 60.0 5.0 2.35

Comparison of both sectors Issues T value Sig. (2-tailed) Mean

Difference Inter departmental co-ordination

-3.691 .001 -1.12

Strategic planning process 3.121 .003 .97

Organizational directives -.287 .775 -8.33E-02Organizational IT expertise 1.244 .219 .25Individual IT expertise -2.970 .005 -.95Written procedures .515 .609 .13Budgeting -3.469 .001 -1.13Lack of planning model .043 .966 1.67E-02Internal leadership -1.154 .254 -.43Contracts -5.178 .000 -1.38Time frame and scheduling -1.823 .075 -.60Politics 1.845 .071 .48Individual support -1.510 .138 -.40Existing system 1.312 .196 .33Organizational culture 1.638 .108 .47Standardization issues 1.843 .072 .28Rapidly changing technology -.749 .457 -.28Cut out value of mean difference >1 is used for this analysis

In case of IT planning the major difference is found in the importance of budgeting,

budgeting is considered to be far more important factor in banking as compared to

pharmaceutical sector (with mean difference of 1.13 between the responses of two

sectors). This difference between the two sectors is understandable. Information

technology in banking sector requires far more capital lay out than pharmaceutical sector,

this is due to two reasons (1) size of a typical bank is larger than a pharmaceutical

company in terms of capital (2) nature of technology used in banks is far more

complicated than used in pharmaceutical company.

78


The second major difference was in the issue of inter departmental co-ordination.

Number of departments in a typical bank are more than pharmaceutical company e.g

cash, foreign exchange, loans, e.t.c. Boundaries between these departments are more rigid

so its very difficult to coordinate the requirements and demands of these departments

during the IT planning process. That’s why executives in banking sector considered inter

departmental coordination more problematic than executives in pharmaceutical sector.

Although the largest difference between the means was in case of contracts (1.38) even

than contracting did not crossed the threshold of being a problematic issue in either of the

sectors surveyed.

Analysis of IT Procurement Process Issues

In case of pharmaceutical sector all of the issues with regard to this

part of the implementation process were viewed as at least somewhat

problematic, however the bulk of the executives responding viewed

lack of strategic plan as highly problematic (having a mean response of

3.20). Politics is also viewed as highly problematic with a mean

response of 2.92.

in case of banking budgeting was considered to be most problematic

issue , 80% of the respondents marked it as highly problematic (mean

response of 3.90) , the second main issue was that of political

influence 60% of the respondent marked it as highly problematic

(mean response of 3.35 ) rest of the issues where not considered as

very important. So the only difference between two sectors was that of

budgeting. Budgeting is more important in banking sector because of

higher layout of capital in regard to information technology in banks as

compared to pharmaceutical sector.

It appears from this data that the procurement process is not as

problematic as the other

areas in the IT development and deployment process.

79




Mean response

Strategic planning process 3.3 56.7 40.0 3.20Organizational directives 50.0 46.6 3.3 1.67Written procedure guidelines 63.3 30.0 6.7 1.47Budgeting issues 30.0 66.6 3.3 2.00Politics 13.3 50.0 36.7 2.93Individual support 60.0 36.7 3.3 1.53Organizational culture 26.7 52.4 20.0 2.40Organizational support 46.6 50.0 3.3 1.73

BANKING SECTORIssue Not problematic Some what


Mean response

Strategic planning process 5.0 65.0 30.0 2.60Organizational directives 20.0 80.0 0.0 1.80Written procedure guidelines 80.0 20.0 0.0 1.20Budgeting issues 0.0 20.0 80.0 3.90Politics 5.0 35.0 60.0 3.35Individual support 25.0 75.0 0.0 1.75Organizational culture 10.0 80.0 10.0 2.40Organizational support 20.0 80.0 0.0 1.85

Comparison of both sectorsIssues T value Sig. (2-tailed) Mean

DifferenceStrategic planning process 2.233 .030 .60Organizational directives -.629 .532 -.13Budgeting issues -8.977 .000 -1.90Written procedure guidelines 1.289 .204 .27Politics -1.209 .233 -.42Individual support -1.129 .265 -.22Organizational culture .000 1.000 .00Organizational support -.525 .602 -.12Cut out value of mean difference >1 is used for this analysis

Again the major difference between the perceptions of executives from

the two sectors was found in the issue of budgeting.

Rests of the issues were considered to have same intensity of being

problematic.

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Analysis of IT development and deployment process IssuesThe final data set derived from the studies survey deals with 21 issues

surrounding the IT development and deployment process. As with the

other two areas, all of the issues were perceived by the respondents as

being at least somewhat problematic with regard to implementation.

Again internal politics and organizational culture received highest

ratings , having mean response of 3.43 and 3.40. 47% respondents

(mean response 3.03) marked resistance to change as highly

problematic and 43% respondent (mean response 3.20) think of

training as highly problematic issue

In banking sector the most problematic issue was considered to be

resistance to change with 90% (mean response of 4.05) of the

respondents labeling it as highly problematic. 70% of the respondents

marked training as highly problematic (having mean response of 3.90 )

this might be due to high resistance to change and people resistance

to get them self trained. Inter departmental co-ordination also got

substantial importance with 60% of highly problematic response rate

(mean response 3.85). 85% respondent’s marked politics as highly

problematic (mean response 4.0) and 65% marked organizational

culture as highly problematic issues (mean response of 3.90). 75% of

the respondent marked adequate staffing as highly problematic (mean

response 3.85). 60% marked rapidly changing technology as highly

problematic (mean response 3.35) so the only difference between two

sectors was that of adequate staffing. This is due to more complex

technology used in banks as compared to pharmaceutical companies,

which necessitate the hiring of competent personnel to manage this

technology

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Mean response

Inter departmental co-ordination 13.3 40.0 46.7 2.93Strategic planning process 20.0 60.0 30.0 2.67Organizational directives 50.0 63.3 6.7 1.83Individual IT expertise 40.0 46.6 13.3 1.97Budgeting issues 36.6 56.7 6.7 2.03Internal leadership 20.0 60.0 20.0 2.73Time frame scheduling 52.4 33.3 13.3 1.70Politics 3.3 46.7 50.0 3.34Individual support 60.0 36.6 3.3 1.47Existing system 56.7 42.4 6.7 1.57Organizational culture 9.9 30.0 60.0 3.40Standardization issues 62.4 22.4 13.3 1.63Rapidly changing technology 10.0 43.3 46.7 3.20Personnel issues 63.3 30.0 6.7 1.40Organizational support 53.3 36.7 10 2.00Compatibility issues 63.3 32.4 3.3 1.57Organizational IT expertise 53.3 46.7 0.0 1.60Adequate staffing 70.0 30.0 0.0 1.40Resistance to change 13.3 43.3 43.3 3.03Training 13.3 43.3 43.3 3.20External consultants 56.6 33.3 10.0 1.67

BANKING SECTORIssue Not

problematicSome what problematic

Highly problematic

Mean response

Inter departmental co-ordination 0.0 30.0 70.0 3.85Strategic planning process 15.0 80.0 5.0 2.20Organizational directives 25.0 70.0 5.0 1.95Organizational IT expertise 65.0 25.0 10.0 1.60Individual IT expertise 65.0 25.0 10.0 1.50Budgeting issues 55.0 45.0 0.0 1.75Internal leadership 15.0 60.0 25.0 2.80Time frame scheduling 60.0 10.0 30.0 1.95Politics 0.0 15.0 85.0 4.00Individual support 65.0 30.0 5.0 1.40Existing system 45.0 55.0 0.0 1.50Organizational culture 0.0 35.0 65.0 3.90Standardization issues 80.0 20.0 0.0 1.15Rapidly changing technology 0.0 40.0 60.0 3.35Personnel issues 20.0 40.0 40.0 2.80Organizational support 25.0 55.0 20.0 2.25Compatibility issues 25.0 65.0 10.0 1.95Adequate staffing 0.0 25.0 75.0 3.85Resistance to change 0.0 10.0 90.0 4.05Training 0.0 30.0 70.0 3.90External consultants 55.0 15.0 30.0 2.05

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Comparison of both sectorsIssues T value Sig. (2-tailed) Mean Difference

Inter departmental co ordination -2.700 .010 -.92Lack of strategic planning 1.401 .168 .47Organizational directives -.448 .656 -.12Organizational IT expertise .000 1.000 .00Individual IT expertise 1.525 .134 .47Compatibility issues -1.414 .164 -.38Budgeting issues .955 .344 .28Rapidly changing technology -.445 .658 -.15Training -2.316 .025 -.70External consultants -1.018 .314 -.38Resistance to change -3.454 .001 -1.02Time frame and scheduling -.674 .504 -.25Politics -2.168 .035 -.57Individual support .291 .772 6.67E-02Existing system .273 .786 6.67E-02Organizational culture -1.750 .086 -.50Standardization issues 1.758 .085 .48Organizational support -.776 .441 -.25Personnel issues -4.323 .000 -1.40Internal leader ship -.220 .827 -6.67E-02Adequate staffing -11.162 .000 -2.45Cut out value of mean difference >1 is used for this analysis

Once the IT development and deployment process reaches the implementation stage the

most problematic issues shift to those dealing with personnel—training and resistance to

change. At this level the success of implementation relies on the individuals working

within the system. Adding to the difficulties surrounding individuals is the overall

environment of the organization, which has a major impact on the effectiveness of the

deployment process.

The major difference between the two sectors was in case of adequate

staffing (difference of 2.45 in means of two sectors)

personnel issues were also considered to be far more important and

problematic in banking sector than in pharmaceutical sector. Banks are

normally overstaffed as compared to pharmaceutical sector and it’s

very difficult to get expert IT professionals into the organization or

replace those employees whose knowledge regarding IT has become

83


obsolete. So the only option left is to train the old staff each time new

technology is implemented.

Resistance to change is more is case of bank than in pharmaceutical

sector (difference of 1.02 in the means of the two sectors) this is due

to the fear that new technology will replace them or decrease their

importance.

Factor analysisA cutout value of 0.5 or above is used for the factor analysis

Factor analysis pharmaceutical sectorPlanningFollowing factor were created from the data collected from pharmaceutical sector.

Factor oneFactor one consisted of following components

Weights1. Inter departmental co-ordination

2. Organizational IT expertise3. Individual IT expertise4. Internal leadership5. Politics6. Personnel issues7. Organizational support

Factor twoFactor two consisted of following components

84

.604

.588

.718

.616

.615

.701

.680

.


Weights

1. Inter departmental co-ordination

2. Organizational IT expertise3. Individual support4. Organizational culture

Factor threeFactor three consisted of following components

Weights

Weights1. Politics 2. Personnel

Factor four Factor four consisted of following components

Weights

1. Lack of strategic planning2. Lack of planning model

Procurement

Factor one Factor one consisted of following components

Weights1. Organizational directives .8692. Individual support .5293. Organizational support .649


Weights

85

-.596.783.508-.533.

.565

.781

.738 .622


1. Lack of strategic planning .781 2. Budgeting .715

Implementation


Weights1. Organizational IT expertise .6282. Individual IT expertise .5393. Compatibility issues .7254. Budgeting issues .5205. External consultants .6186. Time frame .6037. Individual support .5338. Existing system ` .8109. Standardization issues .659


Weights

1. Individual IT expertise -.6072. Rapidly changing technology .5333. Resistance to change .6194. Politics .5625. Organizational culture .5816. Personnel issues .5477. Internal leadership -.522

Factor three Factor three consisted of following components

Weights1. Lack of strategic planning .6312. Training .6963. External consultants .6154. Resistance to change .5735. Organizational support -.642


Weights

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1. Inter departmental co-ordination .6012. Organizational directives .6513. Rapidly changing technology .6674. Training .532

Factor fiveFactor five consisted of following components

Weights1. Politics -.5462. Adequate staffing .582

Factor analysis banking sectorplanning

Factor oneFactor one consisted of following components

Weights

1. Inter departmental co-ordination -.7332. Organizational IT expertise -.7973. Individual IT expertise -.6124. Lack of planning model .5385. Internal leadership .9046. Time frame .8037. Politics .5728. External system .5829. Personnel issues .56810. Organizational support .783

factor two Factor two consisted of following components

Weights1. Organizational directives .580 2. Individual IT expertise .6223. Written procedures guidelines -.7774. Budgeting .5805. Contracts .6266. Individual support .7387. Organizational culture .603


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Weights

1. Lack of strategic planning .7162. Lack of planning model .566

Procurement


Weights1. Lack of strategic planning .5612. Organizational directives .8553. Budgeting issues .6974. Written procedure and guidelines .6335. Individual support .7616. Organizational support .569

Factor two Factor two consisted of following components

Weights1. Lack of strategic planning .6222. Organizational culture .874

Factor three Factor three consisted of following components

Weights1. Written procedure guidelines .6662. Politics .670

Implementation


Weights

1. Organizational IT expertise .7022. Individual IT expertise .7953. Budgeting -.894. Training .8905. Resistance to change .564

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6. Time frame .6547. Individual support .651


Weights

1. Lack of strategic planning .5752. Compatibility issues .6903. Budgeting .6834. Time frame .6515. Existing system .831


Weights

1. Internal departmental co-ordination .5622. Rapidly changing technology .5633. Resistance to change .6634. Politics .8285. Standardization issues .5476. Organizational support .570


Weights1. Organizational directives .5332. External consultants .5643. Adequate staffing .603

Factor five Factor five consisted of following components

Weights1. External consultants .6172. Organizational support .503

Summary

This chapter looked at the issues specific to each part of the IT

development and deployment process. The data suggests that IT

planning and its effective implementation are at least somewhat

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related. A significant portion of the respondents revealed that their

organizations made use of only limited (informal) planning processes if

any were used at all. Subsequently, the majority of these respondents

also perceived their IT implementation process as being less than

effective. Obviously these results do not demand the immediate

initiation of long range strategic IT planning for organizations but it

does point to a need to further investigate the question of planning’s

impact on IT implementation. The data reported in this chapter also

points to significant problems in the area of implementation with

regard to the nature of technology and resistance to change within the

organization. As chapter one and two first suggested, individual

responses to technology can prove to be problematic—especially on

implementation; the respondents to the survey reported this as a

primary problem within their organizations. Resistance to change is an

individual response intensified by a number of factors, not the least of

which include: lack of individual expertise, need for extended training,

and the existing organizational culture.

This chapter has revealed the perceptions of the respondents with

regard to a variety of factors surrounding the IT development and

deployment process. Chapter five will expand on the information

gathered here and discuss some of the more striking aspects of

the data.

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Chapter 5: Suggestions and recommendation

IntroductionThe importance of information technologies with regard to

organizations is undeniable. Within just the past five years, awareness

and usage of IT in organizations has increased dramatically. IT has the

capacity to change the way organizations operate in the most

fundamental ways. Each and every function is impacted by some form

of technological innovation. In addition, ITs are changing the ways that

executives approach the development of their operations and service

deliveries. Finally, information technology provides new ways of

approaching the relationships between organizations and the

customers that they serve. Considering the role which organizations

play in our lives, the significance of these and other impacts must not

be ignored. This chapter will provide some conclusions on the most

problematic issues with regard to IT planning, procurement, and

implementation. Each area will be addressed briefly for the purpose of

answering the three main research questions laid out in chapter 1.

In addition this chapter will provide a more complete discussion of

these issues and their

interrelations in the context of recommendations for a holistic view of

the IT development and deployment process.

Conclusions

The primary focus of this study was to determine what issues

executives perceived as being the most problematic with regard to IT

planning, procurement, and implementation. Each stage in the

development and deployment process was viewed individually with

regard to its fundamental issues in order to better ascertain the

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singular impact of each one on the process. Following is a brief

discussion of the findings of this study with regard to the three main

research questions.

Issues Related to IT Planning

Issues having mean response of 3 or more are considered to be

problematic.

PHARMACEUTICAL SECTOR

Lack of a Strategic/Formal Plan

Organizational culture

politics

Rapidly Changing Technology

Lack of a Planning Model

BANKING SECTOR


Rapidly changing technology

Politics

Lack of planning model

Budgeting

Strategic, or formalized, planning is an important process for any

organization, regardless of its ultimate goals. The benefits of this kind

of planning include: more effective strategies for current and future

operations, clear and concise priorities for the expenditure of scarce

resources, a high probability of improved decision making based on

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learned information from the process, improved management of

change, a clearer picture of possible consequences, and overall

increased performance of the organization. In the end, strategic

planning provides a framework for understanding and addressing

complex issues in a particular organizational context. The nature of

technology plays a key role when viewed in the context of strategic

planning for IT. Information technology, in essence, is constantly

evolving—one of the difficulties is that it does so quite rapidly—making

it very difficult to get a handle on.

The issue of rapidly changing technology was viewed as being highly

problematic by 40 % of the respondents in pharmaceutical sector and

55% of the respondents in banking sector in this study. Technology by

its very nature is in constant flux. New developments are steadily

replacing or enhancing previous innovations. The whole reason for the

existence of information technologies is to make continual

improvements in the way we communicate and function. Change and

constant design improvements drive technology and the timeline is

very short. The window for opportunity on the new and innovative is

extremely short. In another sense, IT is self perpetuating—constantly

generating needs for new hardware, software, and systems.

Fundamental breakthroughs in this arena occur at the astonishing rate

of 18-24 month intervals. (Brynjolfsson E (1994))

The nature of technology, then, has serious ramifications for long

range strategic planning. The primary dilemma being: How does an

organization plan for constantly changing and the often-unknown

future of information technologies?

One of the top issues of obvious importance to this particular area was

the lack of a Strategic plan for information technology. As discussed in

chapter 4, 70% of the respondents perceived this issue as highly

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problematic in pharmaceutical sector and by only 20% of the

respondents in the banking sector. This low percentage in banking

sector might be due to extensive use of formal planning in banking

sector, which made this issue less problematic in banking sector. As

might be expected, the lack of a formalized strategic plan for IT makes

the planning process more problematic. The key here is the formalized

nature of the plan. The results of the survey showed that while 66% of

the respondents did have some sort of IT plan, only 26% of those made

use of a formal or strategic plan in pharmaceutical sector, in contrast

to this in banking sector all the respondents used formal approach for

planning information technology. Lack of a plan or use of a purely

informal plan provides little or no concrete directives for the acquisition

or implementation of information technologies within an organization.

Considering the nature of ITs and the problems, which users and

managers face regarding them, it stands to reason that lack of a plan

merely aggravates an already difficult situation.

Fiscal/budgeting issues are particularly problematic to the planning

process, especially in the banking sector 30% of the respondents rated

it as highly problematic, from a number of standpoints. To begin,

information technologies generate a variety of expenses. At the outset

their purchase can prove to be quite expensive, often out of the range

of smaller organizations. This necessitates acquiring technology over

an extended time-line, which in turn creates a whole host of

compatibility, upgrade ability, and standardization issues. In addition,

expenses accumulate due to the very nature of the ITs and their

learning curve. Two key budgeting issues along these lines are training

and maintenance. Considering the complexity and volatile nature of IT

planning, it is no surprise that the lack of an existing planning model

for this process is perceived as a key problematic issue for the study’s

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respondents. Currently there is no IT planning model for organizations

to follow or consult, 96% of the respondent in pharmaceutical sector

said that they do not use any IT model and almost 50% of the

respondents rated lack of information technology model as highly

problematic. In banking sector 100% of the respondents did not used

any IT model that is tailored to their specialized issues and needs and

60% respondents rated it as highly problematic. While it is certainly

true that no model could completely address all of the issues each

individual organization faces, a general model would provide a

framework for organizations from which to start without having to

reinvent the wheel. (Hinks J (1998)) If nothing else, such a model would

provide a viable place from which to ask the right questions about

needs, processes, and possible problems.

Finally, interdepartmental coordination was rated highly problematic

with regard to IT planning by 66 % of the survey respondents in

pharmaceutical sector and 30% of the respondent in the banking

sector. This issue is especially important to the planning process

because of the impact ITs have on the organization as a whole.

Strategic planning for IT demands a holistic view of the organization,

its IT needs, IT expertise levels, existing systems, and desired

technological applications (just to name a few). A lack of

interdepartmental coordination could result in any number of

ineffective outcomes ranging from duplication of systems to all out

incompatibility. Effective IT implementation, which enhances the

organization’s operations, demands an approach to IT planning which

is coordinated at all levels of the organization.

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Issues Related to IT Procurement


problematic.



Politics

BANKING SECTOR

Budgeting issues

Politics

Most of the issues presented in the survey were not perceived as being

highly

significant within the procurement stage of the IT development and

deployment process.

Lack of a strategic plan and internal politics were the only issue seen

as being highly problematic in the pharmaceutical sector and, even

then, only 40% of the respondents felt strategic planning was a

problem. In effect, the key to IT procurement is a solid strategic plan.

Once a plan is laid out, the acquisition of technologies should be

relatively straightforward. As long as the plan fully considers fiscal and

budgeting issues, acquisitions of ITs should not prove to be

extraordinarily troublesome. It would appear from the data presented

in this study that IT procurement is tied symbiotically to the planning

process and derives most of its problematic nature from situations

arising from poor or insufficient planning.

36% of the respondents in pharmaceutical sector and 60% of the

respondents in the banking sector considered internal politics as highly

problematic, this might be due to absence of any proper procurement

process as 67% respondents had no proper procurement process, and

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lack of proper information technology model, 97% respondents had no

IT implementation model. The absence of proper process might start a

conflict between different individuals or groups for the authority of

purchasing information technology equipment and consideration for

suitability and performance might be set aside, implementation of

proper procurement process could decrease the political pressures by

making the procurement process more clean and logical and leave the

decision for purchase in the hands of proper people.

Budgeting was considered to be highly problematic by 80% of the

respondents in the banking sector. It is due to huge outlay of capital

for information technology in the banking sector as compared to

pharmaceutical sector and use of complex technology which make the

budgeting of information technology very difficult.

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Issues Related to IT Implementation


problematic.


Politics


Training


Resistance to Change

BANKING SECTOR

Resistance to change

Politics

Training


Interdepartmental co-ordination

Adequate staffing

Rapidly changing technology.

The most problematic issues with regard to IT implementation are all

interrelated, and with regard to organization, looks as though they are

primarily affiliated with personnel issues. Training was listed by 43 %

of the respondents in pharmaceutical sector and 70% of the

respondents in the banking sector as being highly problematic for IT

implementation. Part of the problem with training is that, to be

effective it must be a continuous and ongoing process. In addition,

individuals within the organization are typically at different levels of

individual expertise, thus making the training process difficult to

organize. The actual training process is extremely complex, regardless

of the size and scope of the organization. In many cases, especially for

organizations the size of a typical organization, IT training must be

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outsourced through external consultants or operations. This adds an

additional expense, planning problems, and serious logistical problems

for management with regard to timeframes and scheduling. Training is

truly the linchpin of effective IT implementation. Without the support

and expertise of individual end users, no system can achieve its full

potential.

Rapidly changing technology is problematic for IT implementation in

the same way it is for the planning process. This was viewed as a

highly problematic issue for 47 % of the respondents in pharmaceutical

sector and 60% of the respondents in banking sector. The crux with

regard to this part of the process is the inevitable time lag between

planning for ITs and actual implementation. A typical strategic plan

runs the course of a 3-5 year timeline. As discussed previously, this is

an eternity in technological terms—new, major developments in IT may

occur in 8-12 months. By the time planned-for technologies are

actually introduced in the organization, they may be well into their

obsolescence. This creates problems not just for physical hardware and

software implementation but also for the human side of the process—

this issue has a significant impact on training, individual expertise

levels, and individual resistance levels. In addition, costs of the

technologies themselves change rapidly, thereby making fiscal

planning a difficult proposition. While the constantly decreasing prices

of ITs is a boon for individuals or private sector consumers—a number

of public sector organizations continue to find themselves locked into

purchasing contracts with specific vendors. Ultimately those

organizations that find themselves in a mandated contracting situation

end up paying higher, outdated prices for obsolete systems.

Resistance to change is an issue, which is particularly problematic with

regard to any discussion of information technology. In this study, 44 %

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of the respondents in pharmaceutical sector and 90% of respondents

in banking sector found it to be a very difficult issue for IT

implementation. One of the biggest roadblocks in this area is that

information technologies often represent completely new—in some

instances global—changes for the organization and its individuals.

Human beings typically reach a certain comfort level with regard to

their abilities and work processes. For most people new technologies

represent a daunting learning curve and possible downsizing of their

jobs. This perception introduces fear into the implementation process

and creates significant resistance to change. Changes as simple as a

microcomputer upgrade can cause serious backlash from resistant end

users. Effective training and internal leadership are keys to alleviating

much of the change resistance inherent in IT implementation. Users

must reach new comfort levels and develop the expertise needed to

make use of new technologies. Nothing can destroy the

implementation process faster than disgruntled users. (Marchand D,

Kettinger W, Rollins J, (2000))

After all, most ITs do not function independently of human interaction.

Training can serve to increase individual expertise levels if it is

approached properly. Just as important as training to this equation is

internal leadership. Management must achieve levels of IT

understanding and expertise, which will allow them to steer their

organizations towards a

more complete and effective use of technology. Without a foundational

understanding of

IT, it is impossible for administrators to understand and deal with the

problems and subsequent resistance inherent in technological change.

Based on the findings of this study, following figure shows a

representation of the IT development and deployment process, its key

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problematic issues, and the ultimate expected results for the process.

The model shows the progression of the process, ending in the

expected or desired results. Each part of the process (seen in the first

section of the model) provides for a necessary function; these stages

exist as part of their own system—that of the development and

deployment process. Once the process begins it feeds into a set of

issues, which are problematic and must be addressed within the

context of IT development and deployment. If the key issues are

successfully addressed the process should yield the expected/desired

results. These results, whether positive or negative, should enhance

future IT development and deployment activities.

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Process Key Issues Expected results

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IT PlanningGenerating the overall context of IT in the organization by aligning it with organizational directives, goals, missions, and strategies. (i.e. designing the systems, involving users, etc.)

IT ProcurementInvestment analysis, riskassessment, cost/benefit analysis, life cycle planning, and systems acquisitions.

IT ImplementationPutting the systems into practice, managing change, developing


organizational culture Lack of a

Strategic/Formal Plan politics Lack of a Planning

Organizational enhancement.

Improved service delivery.

Improved effectiveness.

Training Rapidly

Changing Technology Resistance to

Change Lack of strategic

planning Politics Organizational


Politics Budgetin


Recommendations and interrelations

Pharmaceutical sectorPharmaceutical sector in Pakistan is not very much organized, that’s why Information

Technology in this sector is used in an in formal fashion. Most of the firms are small with

little or almost no IT usage. In most of the cases use of IT is only limited to personal

computers, which are mostly, used for data storage and retrieval.

IT Planning

The most problematic issue in this phase was found out to be strategic planning. The

problem in the pharmaceutical sector is not the absence or presence of planning but

whether the planning is formalized or not, as discussed earlier 66% of the respondents

had IT planning process in place abut only 26% of them used formal process for planning

of IT. To be more effective pharmaceutical sector must adopt a more formalized

approach for strategic planning for making their IT implementation more successful. This

is why 70% of the respondents in pharmaceutical sector perceive it as highly problematic.

Another way to solve this problem is the use of planning model in pharmaceutical sector

a proper planning model will guide the executives to follow the formalized path.

Politics and organizational culture were perceived to be highly problematic in

pharmaceutical sector (with a mean response of 3.63 and 3.37 respectively). Both these

variables are highly interrelated, because high political activities in the pharmaceutical

sector originate due to the prevailing cultural values with in these organizations where

keeping the decision power in ones hands are highly valued.

Such a kind of culture should be changed and value for sharing the information should be

created. By creating the desired culture political pressure with in the organization will be

reduced.

Rapidly changing technology is also considered to be highly problematic with a mean

response of 3.07; this is because of rapid advances in technology coupled with low

resources available in pharmaceutical sector for information technology. Proper need

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analysis in first place could save the pharmaceutical companies from changing the

technology again and again.

IT procurement

Again strategic planning and politics were considered to be highly problematic during the

procurement of information technology equipment. This is an obvious outcome because

once IT planning is not done properly and no proper need analysis is conducted then it is

not possible for IT managers to procure the information technology equipment which are

desired by the organization. Presence of proper procurement process might solve this

problem; data shows that only 33% of the pharmaceutical companies have a defined

procurement process.

While procuring IT, different suppliers are to be chosen for providing the information

technology equipment. So the person, in the absence of procurement process, purchasing

the equipment could provide favors to these suppliers and also due to lack of a proper

procurement process suppliers could easily put pressure on the officials to tilt the

purchasing decision in their favor. Under these circumstances the group who is politically

strong could get the decision power for purchase of the equipment.

IT implementation

Most of the prominent issues in this category are interrelated. The most problematic issue

in this category is politics and organizational culture, which are both interrelated.

Implementation of IT in pharmaceutical sector might endanger the power of those who

are not good at using this technology. This behavior originates from the cultural value of

not sharing the information with others, which is prevailing in our country. This behavior

leads to resistance to change; this resistance is worsened with the rapidly changing

technology, which makes the learning of new skills more difficult for the personnel

working in the pharmaceutical sector.

There are two ways of avoiding this resistance to change; one is to change the cultural

values prevailing in the pharmaceutical sector, which is difficult, but a permanent

solution to this problem. The other one is training, which have also been pointed out by

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the pharmaceutical executives as highly problematic, having a mean response of 3.20. By

conducting the training properly the level of skills of personnel could be increased which

will automatically decrease the resistance to change and have long term impact on the

cultural values of pharmaceutical sector.

Banking sector

IT planning

It is surprising to note that strategic planning is not considered as highly problematic

issue. This is due to formalized nature of banking sector as compared to pharmaceutical

sector the formal nature of banking sector could be imagined from the fact that 100% of

banks had strategic planning and all of them are having formal strategic planning process.

Under these circumstances strategic planning could not produce any kind of problem for

the banking sector. But even than it is being perceived by the respondents, from

pharmaceutical sector, that IT planning model could further enhance the performance of

the bank (IT planning model having mean response of 3.05).

Because there are large number of departments in a typical bank as compared to

pharmaceutical sector e.g. cash, foreign exchange, loans e.t.c, an obvious problem is that

of coordinating all the departments together while planning for IT implementation. That’s

why inter departmental co ordination had a mean response of 3.75. All the departments

should be involved in planning process to reduce co ordination problem.

Rapidly changing technology produces same kind of problem for banking sector as it

produces for pharmaceutical sector. The rapid technological advances like online banking

could produce problem for small banks due to huge amount of capital outlay reqired for

banking technology as compared to pharmaceutical sector technology. This problem is

more important in banking sector. Because banks are becoming more technology

oriented, having latest technology e.g. online banking, ATM e.t.c are becoming symbol

of success, in this situation banks are forced to compete on the basis of advanced

technology adaptation.

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In banking sector politics scored a mean response of 3.15. The nature of political pressure

in banking sector is different from the pharmaceutical sector. Pressure might not be

exerted from external suppliers because of the complex technology used in banking

sector and limited number of suppliers for this technology. But political pressure is

exerted from groups internal to the organization; this pressure is exerted to retain the

powers they had before the implementation of information technology.

An obvious issue in the banking sector is that of budgeting which was not present in

pharmaceutical sector. This issue is more important in banking sector because of heavy

lay out of capital for IT as compared to pharmaceutical sector. Because of this huge

outlay of capital budgeting becomes an important part of IT planning. Special emphasis

should be given to decide the sources and use of funds, which are allocated for IT

implementation; other wise planning efforts will never reach their goal.

IT procurement

Politics was marked as highly problematic with a mean response of 3.35, this political

pressure is not due to choice of supplier or giving some vendors a benefit as is the case

with pharmaceutical sector but political pressure is exerted by internal groups because of

the fear that new technology will replace them or in some way reduce their importance

with in the organization. So most of employees will favor the purchase of technology,

which they are more comfortable to use regardless of its utility for the organization.

Budgeting is an obvious concern, having mean response of 3.90, when actually

purchasing the technology. Now is the time for the banks to actually use the sources of

funds, which have been decided in the planning phase, it might not be possible to get the

same amount of funds from planned sources and lack of funds might hamper the

implementation efforts of the organization. To overcome these problems sources of funds

should be carefully chosen and evaluated before time, so that any inconvenience at the

time of procurement should be avoided.

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Implementation

Like pharmaceutical sector most of the issues which emerge while implementing IT are

interrelated.

Resistance to change was marked as most problematic issue with a mean response of

4.05, as explained earlier this resistance originate from the fear that new technology is

going to replace them. This fear gives rise to political behavior with in these banks.

Organizational culture, having a mean response of 3.90, also alleviate this fear of

replacement with technology. Organization culture poses same kind of problems to

banking pharmaceutical sector because culture of both the organizations is influenced by

the national culture in which they are working. So like in pharmaceutical sector to over

come this resistance cultural values of the bank should be changed, so that people

become more receptive to changes that are taking place in their organization.

One way to reduce this resistance to change is to train the employees in the use of new

technology. Employees can easily accept the technology, which they can use comfortably

and don’t fear to be replaced by more adept IT professionals. Training was perceived to

be very important by most of the respondents from the banking sector (mean response of

3.90).

Inter departmental co ordination (mean response of 3.85) was also perceived to be

important for making IT implementation successful.

One factor that elevates all the above-mentioned factors is rapidly changing technology.

This factor makes the implementation of all the above-mentioned suggestions very

difficult. Rapid advances in technology make it very difficult to train employees for the

use of new technology. Lack of training shows it self in increased resistance to change for

accepting the new technology and increased political pressure. Unfortunately this factor

is out of control of IT professional with in the organization and not much could be

suggested to solve this problem. This is some thing on which executives should keep a

close eye, other wise their organization will become technologically obsolete.

One factor that does not emerge in the pharmaceutical sector is adequate staffing (mean

response 3.85), banks in Pakistan are normally over staffed as compared to

pharmaceutical sector. This makes the implementation very difficult because IT will

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force the organization to reduce the staffing level. Executive should check the staffing

level before the implementation of any technology is undertaken. Checking the staffing

level or changing it at the time of implementation will increase the resistance for the new

technology.

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In the information age the manager must understand the thrust of

technology and devise effective strategies for adapting the

organization to it Brynjolfsson E (1995) proposes that a paradigm shift is

necessary to enable managers and organizations to meet the “highly

competitive challenges” of the future

Table shows a typical approach to the management of IT and a new

updated approach.

Old Approach New Approach

IT operations/processes are abackroom function.IT personnel are techno-geekswith little knowledge of publicadministration operations.Each department owns its owndata and ITs.Users receive training for newspecific applications.

IT is an integrated part oforganizational operations andplanning.IT personnel are technicallyproficient and posses anunderstanding of the operationsof local government.Data is an organization wideresource and ITs are designedwith the whole organization inmind.Users are trained to make betteruse of IT.

Recommendations for Further Study

The research model used in this study has proven to be extremely

helpful in determining the primary issues which are problematic to the

IT development and deployment process. In addition it has allowed for

the creation and future use of an IT issues database which may serve

as background material for subsequent research in this area. However,

further refinement or redesign of this model in future research might

allow for additional important insights regarding the implementation of

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information technologies in different organization. Based on the

research completed for this study, the following questions have been

generated for future research possibilities.

What is the best approach to strategic planning for information

technologies in organization

What is the impact of training on IT implementation effectiveness?

What is the impact of strategic planning on IT implementation?

Does the use of a model enhance the effectiveness of IT

implementation?

What should an IT implementation model for organization look like?

Does individual expertise level has an impact on IT implementation

effectiveness?

In addition to the questions proposed above, some technical

differentiations might be useful in making this kind of study more

representative and generalizable. During the course of this research it

was determined that better definitions needed to be developed for the

problem areas. For example, the question of novice, proficient, and

expert user proved to be much too open to individual interpretation.

An extension of this would be expanded discussions (and possible

terminology specific) of concepts like effectiveness of implementation

and successful IT planning. Finally, for future study, it might prove

preferable to engage in individual interviews with each respondent as

opposed to a standard, mailed survey. The nature of the information

seems to require detailed explanation and a degree of “drawing out”

the respondent.

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Summary

The area of IT development and deployment is extremely problematic

and complex. It is a process that involves all the individuals who make

up the organization, from top level administrators to clerical staff. In

addition, it requires a significant portion of the resources available

within the organization, from human to fiscal. Any approach to IT

development and deployment, which hopes to be ultimately

successful, must take into account both the technical and social

systems, which make up the organization. This study has addressed a

number of the dilemmas that are ingrained in IT implementation and

management. It has been shown that a multitude of integrated issues

exist which have an impact on organizations ability to effectively plan for and

implement information technologies. These issues must be studied individually—within

the context of IT development and deployment—in order for organizations to meet the

technological needs of their customers.

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APPENDIX

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Selected references

[1] Chan Caroline (1995) “Management And Business Issues For B2B E-Commerce Implementation” . Deabin University , School Of MIS, Australia.[2] Enns Harvey, Huff S (1999) Implementation Of Information Technology In Developing Countries Experience Of Mongolian Internet Service Provider Ivey School Of Business , The University Of Western Ontario 1999[3] Middleton Catherine, “A Tale Of Two Systems? Success And Failure In A Single Information System Implementation” , York University , Toronto, Canada.[4] Fish M And Turner J “Understanding The Process Of Information Technology Implementation” Center For Research On Information Systems, Stern School Of Business ,New York University [5] Marks P, Mccoy S, Polak P (2001) “Contributing Valuable Knowledge To A Dnowledge Management System.” Seventh American Conference On Information System.[6] Dong L, Neufeld D “Modeling Top Management Influence On Information Technology Implementation Effectiveness” Seventh American Conference On Information System.[7] Gottschalk P (1999) “Content Characteristics Of Formal Information Technology Strategy As Implementation Predictors In Norwegian Organizations”, Norwegian School Of Management Department Of Information Management, [8] Zolla G (1998), “Information Technology Diffusion : A Comparative Case Study Of Intranet Adoption” , Naval Postgraduate School, Monterey.[9] Sitting D, Ph.D. The Importance Of Leadership In The Clinical Information System Implementation Process[10] “Evaluating Information Technology Investment”. Office Of Management And Budget[11] Nicolaou A (1999), “Social Control In Information Systems Development”. University Of Piraeus, Department Of Business Administration, Greece[12] Gadwall Group (2000) “Information Technology Procurement The Successful Acquisition Of Products And Services”.[13] Jackson M, “The Computerization Of Work: A Communication Perspective” Reviewed.[14] Marchand D, Kettinger W, Rollins J, (2000) “Information Orientation :People Technology And The Bottom Line.” Sloan Management Review.[15] Grimes J, Zingg P, Hanley J, (1999) “User Empowered Process For Information Technology Planning And Implementation “ Educause Conference.[16] Gurbaxani V, Melville N, Kraemer K, (2000) “The Production Of Information Services , A Firm Level Analysis Of Information System Budget”. Information System Research , Vol 11, Pp 159-176[17] Maguire S (2000), “Towards A Business Led Approach To Information System Development.” Information Management And Computer Security 8/5, Pp 230-238. [18] Hubona G, Kennick E “A Re-Examination Of The Technology Acceptance Model”[19] Ringle M (1998) “Is Strategic Planning For Technology An Oxymoron?” CAUSE/EFFECT Volume 21, Number 1, Pp. 18-23[20] Dr. Anderson L (1996) “G uidebook For Developing An Effective Instructional Technology Plan” Mississippi State University.[21] Gupta M , Mustafi S, “Assessing Return On Information A Framework And Case Study”, South Asian Journal Of Management , Vol 6, No 3&4.

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[22] Hinks J (1998) “A Conceptual Model For The Interrelationship Between Information Technology And Facilities Management Process Capacity” , MCB University Press, Facilities, Vol 16, Pp 233-245.[23] Brynjolfsson E (1994), “The Procuctivity Paradox Of Information Technology : Review And Assessment”, Center For Coordination Science MIT Sloan School Of Management Cambridgem Massachusetts, Japan Management Research.[24] Karake Z (1994) “Relative Information Technology Index (RITI): It Performance , Company Control. And Governance”. Logistic Information Management, Vol 7, Pp 6-14.[25] Dasgupta S , Sarkis J (1999) , “Influence Of Information Technology Investment On Firm Productivity : A Cross Sectional Study”. Logistic Information Management , Vol 12, Pp 120-129.[26] Gurbaxani V, Kraemer K (1996) “An Economic Analysis Of Information Systems Budgets”, Center For Research On Information Technology And Organizations University Of California, Irvine. [27] Sakaguchi T (1998) “Measurement Of The Intensity Of Global Information Technology Usage: Quantitizing The Value Of A Firms Information Technology” Industry Management And Data System Vol 8, Pp 380-394.[28] Michalak S, Facelli J (1999) “Decentralized Information Technology Requires Central Coordination” Cause And Effect , Vol 22.[29] Kraemer K, Talon P (2000) Performance Benchmarks For Information Systems In Corporations. University Of California , Irvine.[30] Roberts T, Middle Jr (1995) “Training During SDM Implementation” Tennessee State University.

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Glossary

The field of information technology is full of terminology, which may be unfamiliar to the layperson. The rapidly changing nature of IT makes the task of keeping up with the jargon very difficult. The use of acronyms to describe everything from specific hardware to integrated systems makes the task even more complex. In addition many of the terms and definitions vary widely depending on the nature of the literature or source and the time period in which they are discussed. Following is a list of the terminology and acronyms as they are used in this proposal.

Action ResearchAction research is a methodology that allows the researcher to develop knowledge and understanding as part of on-going practice. In situations where other methods fall short, action research provides new and innovative ways of approaching problems.

AutomationViewed as a trend of the 60s and 70s, which entailed redesigning clerical work to be accomplished via computer. This included the use of databases and data entry. Automation was not just about moving everything from paper to computer but also entailed consolidating some work process to be done more efficiently by the computer.

Chief Information Officer (CIO)A title most commonly used in the private sector to identify the manager of an organization’s information systems. In one sense the title of CIO stands as recognition of the importance of information technologies as a major resource requiring a special type of executive. On the other hand, the introduction of a CIO into an organization requires significant changes in the existing management processes in order to make the addition effective and meaningful.

Decision Support System (DSS)An information system and/or analytical model which is designed to aid managers and administrators in making more effective decisions. Normally based on personal computer software that accesses databases of information related to a specific topic or organizational area. DSS is not generally about specific technology: instead emphasis is placed on the exploitation of all-available technologies and resources.

Distributed SystemsA distributed system within an organization links a central or “host” computer to decentralized personal computers or workstations, many of which may be “off-site” locations. A system of this sort distributes the processing workload.

Host ComputerOften used instead of mainframe or server to describe the computer, which provides services to a number of workstations.

ImplementationA standard dictionary definition of implementation states that it is a means employed to achieve a given end, to provide a definite plan or procedure to ensure the fulfillment of.... Implementation of information technology is more complicated because the implementation process may be long and drawn out, and in many instances may have vague boundaries. In the most simplistic sense, implementation is the process of getting a new or significantly changed, system in use for those whom it was intended.

Information AgeA term generally used to describe a future state where information will be readily and universally available electronically. Currently this term has proven to be very vague, as there is much disagreement over what future conditions are being described.

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Information Systems (IS)Another term for management information systems (MIS).

Information Technologies (IT)Up until the 1980s computers made up almost all of what was considered information technologies. Currently information technology has become an umbrella term used to describe a rapidly expanding group of equipment, services, applications, and basic technologies. Often ITs are grouped as computers, multimedia, and telecommunications. For the purposes of this proposal information technologies are any of the above.

Management Information Systems (MIS)A term used to describe an integrated system which makes use of any number of varied information technologies. It is common for MIS to be referred to as information systems or in the public sector: information resource management (IRM); or public management information systems (PMIS).

Management ProcessesRegularized cycles of activities (formal or informal) which bring people within organizations and between organizations into interaction in order to work through the performance of some function or the solving of some problem.

PlanningA standard dictionary definition of planning states that it is any detailed scheme, program, or method worked out beforehand for the accomplishment of an objective. A proposed or tentative project or goal. A systematic arrangement of details, in most cases (and for purposes of this project) a drawing, diagram, or written representation which shows the structure or arrangement of a specific aim or purpose.

Strategic PlanningIn its simplest form strategic planning is described as “a process by which an organization attempts to control its destiny rather than allowing future events to do so”. More specifically, it is a systematic and formal process wherein an organization anticipates and plans for its future. Strategic planning is really a process and a product, in other words, it provides a well-organized way of examining organizational processes and then facilitating decision-making.

TelecommunicationsElectronic movement of information no longer just refers to phones, telex, and fax. Now it includes not only voice but also digital (computer generated data) and analog (modems convert digital data to analog so that it can be transmitted over telephone networks) communications as well.

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Description of issues

Interdepartmental CoordinationThis issue relates to the degree an organization is able to coordinate it’s IT implementation process across departments. With the rise in use of microcomputers, information systems management has become increasingly decentralized. In organizations this often means that IT planning, procurement, and implementation may not be coordinated across departments thus perpetuating duplication, lack of standardization, and difficulties with formalized planning, among other problems. Interdepartmental coordination is related to organizational structure, planning, standardization, duplication of work/resources, and internal leadership.Lack of a Strategic/Formal PlanThis issue has become one of the more problematic with regard to IT implementation. Pressure for quick solutions to very complex IT problems has only served to work against strategic planning in organizations. Strategic planning is viewed by many as “the heart of effective IRM”. The successful implementation of nformation technologies in an organization depends heavily on the strategic analysis of organization needs and objectives. Organizations, which do not make use of formalized planning with regard to IT, may find themselves without direction in a rapidly changing environment. Lack of a strategic/formal plan issues is related to organizational directives, organizational support, internal leadership, interdepartmental coordination, standardization, and planning models.Lack of a Planning ModelThis issue speaks to the availability and use of standardized models with regard to the planning and implementation of ITs. There has been many debates on the ability of planning models to enhance the success of project implementations. Currently, no organization have an IT implementation model that addresses their specific needs and issues. Lack of a planning model relates to strategic planning, written procedures and guidelines, and rapidly changing technology.Organizational DirectivesThis issue refers to the missions, objectives, and plans which a particular organization may possess for the implementation of IT. Directives serve as guidelines for future plans and actions of the organization. These directives must be strategic and well defined in order to facilitate effective IT implementation throughout the organization. Organizational directives relate to planning, organizational support, organizational IT expertise, fiscal concerns, and rapidly changing technologies.Organizational IT ExpertiseThis issue refers to the overall technological savvy of the organization. In addition, it could also refer to how progressive in its nature the organization may be. That is, whether or not this is an institution that has focused resources to enhance ITs ability to stay on the cutting edge of technological developments. Organizational IT expertise is related to organizational support, organizational culture, individual IT expertise, individual support, existing systems, and rapidly changing technology.Organizational SupportSuccessful and effective implementation of ITs relies on the ability of an organization to change and adapt in order to exploit the uses of advanced technologies. This issue refers to an organization’s predilection toward supporting strategic vision and planning at all levels--which in

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turn will allow it to make use of rapidly changing technologies. The organizational support issue includes: fiscal concerns, organizational directives, organizational culture, and individual support.Organizational CultureThis issue is particularly hard to explain because the culture of an organization is mainly a perception. However, for IT implementation to be effective the right kind of culture or environment is required. In most cases this means an organization must consistently find a common ground between individuals and systems within the organization. Organizational culture issues include: organizational support, politics internal/external, organizational directives, and organizational IT expertise.Individual IT ExpertiseThe issue of individual IT expertise speaks to the technological savvy of each person within the organization. It is typical for a locality to employ individuals with a very diverse range of IT competence. It is also typical that some of these individuals will have a willingness and desire to learn more about technology and how to use specific ITs, and others will be quite resistant to adapting to new technologies. This issue is related to training, resistance to change, organizational support, and internal leadership.Written Procedures/GuidelinesThis issue refers to any mandates which affect organizations with regard to information technology and it’s planning, procurement, and implementation. In addition it may also refer to any written procedures specific or internal to the organization This issue includes fiscal concerns, contracts, outside consultants, and politics.Fiscal/Budgeting IssuesInformation technologies are expensive at a number of levels. This issue refers to the myriad of problems facing administrators with regard to budgeting and the fiscal impact of ITs. Fiscal concerns for IT require definition and measurement of operating costs, investment costs, and the possible/achieved benefits of technologies. This issue includes organizational support, rapidly changing technology, existing systems, standardization, and planning.Rapidly Changing Technology This issue refers to the difficulties of managing technology due to its rapidly changing nature. ITs are developed and enhanced so swiftly that an organization may find their planned--for acquisitions are obsolete before the ink on the purchase orders are dry. The nature of technology in general is a primary cause of a multitude of IT management conflicts from development to implementation. Rapidly changing technology issues are related to fiscal concerns, timeframes, standardization, existing systems, training, individual and organizational IT expertise.Timeframes and SchedulingTimeframes and scheduling are very important to the effective implementation of ITs in an organization. Most IT-related planning in organizations must take place in a multi-year framework due to a variety of factors, not the least of which is financial resources. IT implementation also carries with it varying degrees of post implementation lag times necessary for training and “burn-in” of the equipment. Scheduling difficulties are expounded by the rapidly changing nature of the technologies themselves. This issue is related to rapidly changing technology, internal leadership, organizational support, individual support, training, and IT expertise.Politics, Internal/ExternalThis issue is inherent in any organizational activity and IT implementation is no different. executives and IT professionals alike must recognize and address the political ramifications of IT implementation within their organization and the external environment. Technological activities in general are political by nature (i.e. privacy, security, confidentiality, and data collection). This

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issue includes personnel issues, interdepartmental coordination, organizational culture, and external consultants.Individual SupportThis issue refers to the support of key individuals within the organization whether in favor of IT planning and implementation or against. Ordinarily this issue refers to those individuals in top management positions. However, people at all levels of the organization have an impact on IT planning and implementation--the more support available throughout the ranks, the more effective the implementation process will be. Individuals can hinder progress at a number of junctures in the process. It is therefore, essential to recognize the importance of this issue with regard to IT implementation at the outset. The individual support issue includes resistance to change, training, politics, leadership, and support.Existing SystemsThe existing information systems within an organization may have a profound impact on the ability of an organization to plan for, acquire, and implement new technologies. Systems already in place may require upgrades or may not function in connection with new systems at all. In many cases the stakes are very high with regard to existing systems. An organization often has a significant investment in hardware and software. In addition, these systems may be storehouses of irreplaceable data, which for compatibility reasons cannot be transferred to new systems without incurring extensive costs. The issue of existing systems is related to standardization, computability, resistance to change, rapidly changing technologies, and interdepartmental coordination.StandardizationWithout some standards across information technologies, planning for future uses and acquisitions would prove nearly impossible. Setting standards within an organization can be problematic enough--standardization between organizations can prove impossible. Standards make communication possible and lend consistency and efficiency to information systems. Standardization is made substantially more difficult due to the technology industry itself and it’s own standardization problems. Standardization issues are related to existing systems, computability, politics, and rapidly changing technology.Compatibility IssuesCompatibility issues refer to the ability to interact, communicate, and share information across networks and between software. Without systems and software compatibility data exchange would be impossible. It is very important that newly proposed systems be compatible with existing systems and that compatibility be addressed early on in the planning process. Compatibility issues are related to existing systems, politics, standardization, contracts, and personnel issues.Personnel IssuesThese are issues related to the management process of human resources. It does not matter how well designed an organization is or how well developed general procedures are if the institution in question does not have the personnel it requires to fully develop, manage, and ultimately use ITs. This is one of the most important issue areas and in many cases one that is chronically ignored. Personnel issues include resistance to change, fear of technology, training, recruitment, and retention of quality employees.Adequate StaffingIn one sense, this issue is tied to general personnel issues in that it requires the recruitment and training of individuals for IT and support staff positions within the organization. More specifically, it deals with the need for enough of these types of employees to make IT implementation feasible and effective. Adequate staffing is a quantity and quality issue. Adequate

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staffing issues relate to number of qualified staff, employee/individual IT expertise, recruitment, and training.Internal LeadershipThis issue relates to various levels of leadership within the organization with regard to IT implementation. One of the problems with technology and the workplace is that not everyone is ready or willing to become part of a technologically based workforce. In many situations, leadership from managers and co-workers can help to enhance effective implementation of ITs. Managers especially can promote IT implementation by example. Internal leadership issues include training, individual expertise, organizational support, personnel issues, and resistance to change.ContractsThis issues refers mainly to the acquisition of ITs in an organization. In some organizations specific requirements exist with regard to available and accepted hardware and software vendors. Some organizations must adhere to state sanctioned contracts for purchase of supplies and equipment. Others may have entered into long term contracts for equipment and services. The contracts issue is related to external consultants, adequate staffing, written procedures/guidelines, fiscal/budgeting, internal/external politics, and individual/organizational expertise.TrainingThis issue is of particular importance regardless of the level of technology currently existing within an organization. As ITs become an even greater part of our operations, it has become crucial to make sure that adequate training is provided for all employees. Lack of training can act as a powerful restraint to effective IT implementation and overall organizational success. Training issues include: resistance to change, fear of technology, rapidly changing technology, retaining quality employees, decision-making and individual/organizational IT expertise.Resistance to ChangeThis issue is generally seen as a human resources issue. Part of resistance is couched in fear: fear of the technologies; fear of being displaced by technology; and fear of the unfamiliar. Many individuals (especially those in support staff positions) have a pervasive fear that automation of their particular work process will render them unnecessary to the organization. Even more predominant in today’s organization is the fear of change. Individuals are often put off by the extra work and effort required in learning new software or a whole new operating system. Resistance to change includes training, individual expertise, standardization, existing systems, individual and organizational leadership.External ConsultantsThis issue has become particularly important to organizations who often do not have the adequate and expert staff to address IT issues within their organizations. Outside consultants are typically hired to act as advisors on various issues as well as to provide the hardware and software for the organization. An important factor to consider in the use of external consultants is what the role of that consultant will be. In other words, will the individual or firm in question be asked to act as an advisor or a complete IT service provider. The use of external consultants must be reviewed in the context of the whole organization’s directives as well as the planning of ITs and their implementation. The external consultant issue is related to individual/organizational expertise, organizational directives, IT planning, IT implementation, existing systems, and standardization.

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List of companies surveyed

List of Pharmaceutical companies surveyed

COMPANY NAME CITY

1. Abbott Laboratories (PAK) LTD Karachi 2. Arsons Industries Lahore 3. Albro Pharmaceuticals Lahore 4. Remington Pharmaceuticals Lahore 5. Pulse Pharmaceuticals Lahroe 6. Basic Pharmaceuticals Rawalpinidi 7. Don Valley Pharmaceuticals Lahore 8. Brookes Pharmaceutical Laboratories Karachi 9. Farhat Ali Pharmaceuticals Lahore 10. Epoch Pharmaceuticals Karachi 11. Aventis Pharmaceuticals Karachi 12. Scharper Pharmaceuticals Lahore 13. Harman Pharmacetical Laboratories Lahore 14. Consolidated Chemicals Lahore 15. Ideal Pharmaceutical Industries Lahore 16. Bio Fine Pharmacueticals Pvt Ltd Multan 17. Fiza International Pvt Ltd Lahore 18. Humza Pharmaceuticals Multan 19. Himont Pharmaceuticals Pvt Ltd Lahore 20. Highnoon Labortaries Ltd Lahore 21. Consolidated Chemicals Lahore 22. Geofman Pharmaceuticals Karachi 23. Novarits Pharmaceuticals Lahore 24. Glaxowellcome Pakistan Limited Lahore 25. Ashraf Laboratoreis (Pvt) Ltd Multan 26. Life Pharmaceutical Company Multan 27. Pfizer Karachi 28. Mular & Phipps Pakistan Pvt Ltd Lahore 29. Babar Medicine Company Lahore 30. Efroz Chemical Industries Lahore

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List of banks surveyed

1. Habib Bank (Pvt) ltd 2. Sonnery Bank 3. Standard Chartered 4. UBL ( United Bank Limited ) 5. Union Bank Limited 6. Platinum 7. Bolan Bank 8. Askari Commercial Bank9. City Bank 10. MCB 11. Prudential Bank 12. ANZ Grindlays 13. ABN Amro Bank 14. Allied Bank Limited 15. Bank Of Punjab 16. Prime Bank 17. National Bank Of Pakistan18. Faisal Bank 19. Metropoliton Bank 20. Doha Bank

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Interviews

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Coca-Cola Beverages

1. Totally agreed with the definition find categorization of IT2. IT is basically used communication e.g. local area and wide area networks, data

storage, control of user access level, reporting of data in different forms, integration of information between different department.

3. It is not to change the existing system entirely but to enhance the existing system, which has been previously done manually.

4. After procurement stage, another stage, testing stage should be added also called prototyping

5. Totally agreed 6. Yes7. To a very limited extent.8. Software documentation SCALA9. No documentation is used for implementation purpose, co-ordinated and

comprehensive10. Sufficient because of the use of co-ordinated approach, no need of written

procedure and guidelines11. Yes, last year when we were implementing mail server, LAN and SCALA.12. Inefficiency and lack of effectiveness will make me consider a system as

complete failure.13. SCALA module has been implemented, stock control and purchase control14. Totally agreed 15. No16. Cokes own internal experiences regarding the implementation of IT.17. Through co-ordinated efforts.18. Three types of consultants are used hardware; software and networking

consultants are used. Outsourcing is used when implementation is done.19. No, internal models are used.20. Departmental co-ordination21. Lack of individual support and politics.22. We don’t have to look at our plant, but have to see the worldwide network.

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Beacon house

1. Yes I totally agree with your definition, because it covers all the aspects of information technology.

2. Information technology helps the managers and employees in the following ways. Provides the email service through lotus notes. It is also helpful in

scheduling the meetings. Provide the Internet access to search the material in order to search the

material for completing the day-to-day jobs especially for the academics department.

3. No, basically IT implementation is a process to save your time, to increase the efficiency and effectiveness of your human resources and provide ease to work for them.

4. Totally agreed with this classification.5. These two classifications can be further subdivided into intermediate categories.6. To some extent but still this plan is not new because the project is new.7. No not yet.8. Guidelines

- Mentally prepare the employees for automation.- Provide the training to use new technology.- When they are able to adopt and work then implement.

9. More co-ordinated and comprehensive.10. No, but if proper budget is allocated to the department empowered then it would

be better.11. Need analysis is still in process, but a comprehensive analysis will be done.12. Following condition will cause the failure

Not properly persuaded the user. If Users were not properly trained. If the advantages expected form IT are not clearly defined.

13. Trained the users about the lotus notes.14. Yes this definition of IT model is right.15. No formal model is used16. .17. I have discussed it with the key departments and also with the CEO to decide the

process of implementation.18. Yes, we are contracting with private sectors firms to implement corporate level

information system.19. No

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20. The biggest problem is to persuade the people about its utility.21. Limitation of resources22. We are implementing lotus notes email that is very safe and fast.

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High Noon

1. Yes I agree with this definition of IT.2. Providing basic information to the internal customer of the organization.3. Totally agree with the IT implementation definition.4. There should be sub categorization of IT implementation process.5. Yes this classification is right.6. Yes7. Yes IT expenditures are considered when capital budgeting is done.8. Guidelines

Feasibility study. Cost Benefits Requirements Improvement in system

9. Have coordinated and comprehensive plan.10. More efforts are required for training of employees.11. Yes comprehensive need analysis of the IT is done.12. Either of the two, inefficiency or ineffectiveness would cause me to consider

implementation a failure.13. Installation of intranet and mail server.14. It’s not necessary to for a model to give specific directions. Successful model

should provide general guidelines.15. No particular model is used.16. Past experience of IT professionals in other organizations were used as examples.17. No specific implementation process is there different kinds of implementation

need different kind of process.18. Yes consultants are used for the purpose of software development, which are from

private sector.19. No examples from other organizations were taken, but experience of employees

was used.20. It is very difficult to plan before hand the purpose of using the technology.21. Its very difficult for the employees to accept the new technology, also cost is a

consideration.22. Comprehensive database of the doctors is developed.

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Olympia textile

1. IT is not so bound. Its area of concentration is more than that. Along with these. IT deals with virtual management as well.

2. IT is working as change agent in my organization.3. IT is process of change; it’s a sequential process, which ultimately leads

towards automation.4. Its basically management process, planning, organizing, leading, monitoring.5. I totally agree6. Yes.7. Yes.8. Implementation process consists of some formal procedures you have to

follow.-Analysis-Designing and development-Testing-Quality assurance-Review and feedback-Deployment9. More coordinated and comprehensive.10. Ok, it’s not optimal but satisfactory. There is always room for improvement,

secondly technology changes at a very fast pace.11. Yes you can say up to some extent we try to find out where we are and where

we should be.12. Inefficiency and ineffectiveness both will cause me to consider IT

implementation a failure.13. We are now establishing our own mail server and website.14. I totally agree with this definition.15. We have no model but we have proper system for IT, you can say its Think

Tank and before going to deploy, we review its pros and cons.16. Yes we do benchmarking, take a few examples of industry leader and other

published sources and further consult with IT consultants.17. After brainstorming, IT authorities finalize that what alternative is feasible.18. Yes we consult with firm as well as individual consultants. According to our

requirement.19. It’s a right approach to move forward, we make comparative analysis with

public and private both, we see what new implementations are taking place and are they feasible for us.

20. In Pakistan there are two main constraints. IT market is not so much developed, Linkages are weak, mean and end problem integration problem.

21. People are not aware of the benefits IT could provide

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Issues Database

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Factors Affecting IT Implementation

Documents

Transcript of Factors Affecting IT Implementation