Pertemuan -13.1 © 2008 by Abdul Hayat Business Value of Systems and Managing Change MANAGING CHANGE Pertemuan 13

Pertemuan -13.1 © 2008 by Abdul Hayat

Business Value of Systems and Managing ChangeBusiness Value of Systems and Managing Change

MANAGING CHANGEMANAGING CHANGE

Pertemuan 13



• How should the organizational change How should the organizational change surrounding a new system be managed to surrounding a new system be managed to ensure success?ensure success?

• What strategies can our organization use to What strategies can our organization use to manage the system implementation process manage the system implementation process more effectively?more effectively?

OBJECTIVES



• Dealing with the complexity of large-scale Dealing with the complexity of large-scale systems projectssystems projects

MANAGEMENT CHALLENGES



System failureSystem failure• Information system does not perform as Information system does not perform as

expected, is not operational at a specified expected, is not operational at a specified timetime

• Problem areas: Poor design, inaccurate Problem areas: Poor design, inaccurate data, excessive expenditure, breakdown in data, excessive expenditure, breakdown in operationsoperations

IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Information System Problem Areas




Information System Problem Areas

Figure 13-4



ImplementationImplementation

• Organizational activities working towards Organizational activities working towards adoption, management, and routinization adoption, management, and routinization of innovationof innovation

Change agentChange agent

• Individual acting as catalyst to ensure Individual acting as catalyst to ensure successful organizational adaptation to a successful organizational adaptation to a new system or innovationnew system or innovation

Change Management and the Concept of Implementation




• Role of users in implementation processRole of users in implementation process

• Degree of management support for Degree of management support for implementation effortimplementation effort

• Level of complexity and risk of Level of complexity and risk of implementation projectimplementation project

• Quality of management of implementation Quality of management of implementation processprocess

Causes of Implementation Success and Failure




Factors in Information System Success or Failure

Figure 13-5




User–designer communications gapUser–designer communications gap

• Different backgrounds, interests, and Different backgrounds, interests, and priorities priorities

• Impedes communication and problem Impedes communication and problem solving among end users and information solving among end users and information systems specialistssystems specialists

User Involvement and Influence




• Project requires backing and commitment Project requires backing and commitment of management at various levels of management at various levels

• Helps project to be perceived positively by Helps project to be perceived positively by both users and technical information both users and technical information services staffservices staff

Management Support and Commitment




• Project size:Project size: Larger project has greater Larger project has greater riskrisk

• Project structure:Project structure: Clear and Clear and straightforward requirements help define straightforward requirements help define outputs and processes outputs and processes

• Experience with technology:Experience with technology: Project Project risk rises if project team and information risk rises if project team and information system staff lack required technical system staff lack required technical expertiseexpertise

Level of Complexity and Risk




Improper management leads to:Improper management leads to:

• Cost overruns Cost overruns

• Unexpected time slippageUnexpected time slippage

• Technical shortfalls Technical shortfalls

• Failure to obtain anticipated benefitsFailure to obtain anticipated benefits

Management of the Implementation Process




Consequences of Poor Project Management

Figure 13-6




System Challenges of Mergers and System Challenges of Mergers and

AcquisitionsAcquisitions

• Integrating systemsIntegrating systems

• Organizational characteristics Organizational characteristics

• Information technology infrastructuresInformation technology infrastructures

Change Management Challenges




• High failure rates: High failure rates: enterprise system, enterprise system, BPR, CRM, and SCM BPR, CRM, and SCM implementationsimplementations

• Hurdles:Hurdles: Extensive change required in Extensive change required in organizational culture and business organizational culture and business processesprocesses

Change Management Challenges




• Managing Technical Complexity:Managing Technical Complexity: Usage of internal integration tools to Usage of internal integration tools to ensure operation of implementation team ensure operation of implementation team

• Formal Planning and Control Tools:Formal Planning and Control Tools: Structures and sequences tasks, monitors Structures and sequences tasks, monitors progress towards fulfillment of goals progress towards fulfillment of goals

MANAGING IMPLEMENTATION

Controlling Risk Factors



• Increasing User Involvement and Increasing User Involvement and Overcoming User Resistance:Overcoming User Resistance: External integration toolsExternal integration tools l linking work of inking work of implementation team to that of users at all implementation team to that of users at all organizational levels organizational levels

• Counterimplementation:Counterimplementation: Deliberate Deliberate strategy to thwart an implementation effortstrategy to thwart an implementation effort

Controlling Risk Factors




Formal planning and control tools help to manage information systems projects successfully




Allowing for the Human FactorAllowing for the Human Factor

• Ergonomics: interaction of people and Ergonomics: interaction of people and machines in work environmentmachines in work environment

Sociotechnical DesignSociotechnical Design

• Produces information system blending Produces information system blending technical efficiency with sensitivity to technical efficiency with sensitivity to organizational and human needsorganizational and human needs

Designing for the Organization




• Project planning is an enterprise-wide Project planning is an enterprise-wide focusfocus

• Managers focus on solving problems as Managers focus on solving problems as they arise and meeting challenges they arise and meeting challenges

Fourth-Generation Project Management


Documents

Pertemuan -13.1 © 2008 by Abdul Hayat Business Value of Systems and Managing Change MANAGING CHANGE Pertemuan 13