Systems Adoption Process MIS 2000 Information Systems for Management Instructor: Bob Travica Class 22 Systems Adoption Process Updated: 2017

Outline Concept of Systems Adoption Factors of Systems Adoption Speed of Systems Adoption New System vs. Old Organization Management of IS Adoption Process/Change Management Process Summary

Concept of Systems Adoption/Acceptance (SA) SA is one of core IS issues. Definition: SA is a process of translating an IS into the regular use. Focus is on IS users, especially primary users. Often, adopting a system runs in parallel with adopting new processes (PPC case) – change management process.

Factors of Systems adoption Rogers (1962, 1983); check Note for explanation. * New IS Adoption Visibility Compatibility Complexity (ease of use) Relative Advantage (usefulness) Trialability + - +/- * Adoption factors (CRaCTV) are system characteristics that influence the likelihood (success) of adoption. Complexity: The level of effort a new IS requires. This dimension has to do with individual weighing of how easy/difficult it is to use a new system. (The larger the effort, the less likely adoption is.) Relative Advantage: Benefits that a new IS has over the old one. Individual weighing of how useful a s new system is/can be. This may include individual interest, professional aspects, and sometimes organizational implications. (The larger the advantage, the more likely adoption is.) Compatibility: Similarities between the way of working with old and new IS. (The larger the compatibility, the more likely adoption is.) Trialability: The magnitude of opportunities for exploring a new IS. (The larger the exploration opportunities, the more likely adoption is.) Visibility: The extent to which a new IS and its effects are visible within an organization. (The greater the visibility, the greater the chances for communicating experiences with an innovation - both affirmative [good] and critical [bad]. If experiences are good, the system adoption is more likely; and if experiences are bad, the system adoption is less likely).

Adoption Process Rogers looks at adoption as a process of innovation diffusion, which involves a communication channel, time, and members of a social system (organization, group). Five steps in adoption process: * Get aware Interest Evaluate/ Decide Trial Implement Confirm Reject Evaluation positive? No Yes Satisfied? Awareness - the individual is exposed to an innovation (a new IS) but knows little about it. Interest - the individual becomes interested and takes action to learn more about the IS. Evaluation/Decision – the individual mentally applies the IS to his present and anticipated future situation, and then decides whether or not to try it. Cost/benefit weighing happens. This sub-process may resemble some decision making model studied in the course. Trial Implementation - the individual actually uses the new IS, but the rejection is still possible. Adoption Confirmation - the individual finally decides to continue using the IS based on the overall evaluation. The probability of reversal (rejection) is small.

The S-Curve of Innovation Adoption – Various Technologies Look for the inflection point where the curve start to climb - diffusion expands.

How People Adopt Innovations (New IS) 2.5% Self-starters, no incentives needed 2.5% Resistors (incurable) Usually, a half of people belong to earlier and a half to later adopters. There are 3 groups on each side. Managers should first focus on earlier adopters, then on later adopters (Late Majority, then Laggards in the end).

New System vs. Old System/Processes: 3 Scenarios Different groups in organizations react differently to new IS and business processes. Groups may collide with new IS/processes and block them, or accept them accept which are good for some groups but less so for others. Current organization New proc. & IS New processes & IS 2. Partial Adoption One user group adopts IS, another does not Case of Financial Information System 3. Failed Adoption Target user group rejects IS Case of Electronic Medical Record Systems New IS, new/old proc. 1. Adoption Case of American city administration: Adoption of computers by administrators; Old processes made electronic unchanged

Adoption Current organization New IS, new/old proc. New IS developed so that old processes are put in electronic form. Consequently, organization did not change with IS adoption. Case of American city administration: Adoption of computers by top administrators as secondary users. Old processes made electronic but unchanged. Top administrators preserved power, lower management & external stakeholders had no gain.

Partial Adoption Current organization New proc. & IS Current organization In FIS* case, corporate accountants influenced decisions on IS design and accounting rules, which undermined the position of department accountants. FIS pushed on all accountants and changed accounting practices. Corporate accountants adopted FIS, while department accountants opposed it. Gains for corporate accountants & executive mgmt., losses for department accountants and department level management. *FIS=Financial Information System

Failed Adoption Current organization New processes & IS Current organization *EMRS=Electronic Medical Record System EMRS and new processes in three Quebec hospitals were opposed by doctors who became primary users. Nurses accepted EMRS that made their job bit easier. EMRS were eventually rejected, old processes recovered, and system investments wasted.

Managing IS Adoption – Change Management Process Get aware Interest Evaluate/ Decide Implementing Trial Confirm Promote + Give access to IS Motivate + Train for IS & process Assess adoption rate & user satisfaction Manage Maintenance Facilitate org. learning Celebrate achievements Stimulate adoption Block opposition Repeat during critical period user management Critical period Reject Use Change Management process: Promote + Give access to IS - Promote via email, company's newsletter, official meetings… Give Access to IS by giving users passwords. Motivate + Train for IS & process – Motivate by clearly stating benefits form the IS. Allocate sufficient work hours and instruction for users’ training to use the system and new work processes. Stimulate adoption – Motivate by giving and promising rewards (public recognition, monetary means, professional advancement). Assess adoption rate & users satisfaction via periodical surveys and discussion forums. Use survey results to fine-tune the system (part of system maintenance – see below). Manage Maintenance – System maintenance is about fixing problems with IS (software errors, user interface, size of storage and functioning speed, etc.). Money and time for system professionals must be allocated. Block opposition – resistance (push back) can come from various user groups that for some reason are unhappy with the system. Sometimes, workers claim that the system is not built to fit their needs. Managers can aggravate system adoption by not allocating resources for system maintenance and planned phased development. - Facilitate organizational learning – Staff support desks, promote enthusiastic users (early adopters), give money incentives, promise other benefits (bonus, professional advancement) – similar like with stimulating adoption. Celebrate achievements – Mark landmarks in IS adoption (e.g.., significant adoption rates as 75%, 80%...; announce and praise hikes in adoption rate, e.g. a 10% jump between two measurement of IS adoption). Assess Costs/Benefits of IS Annually – Run a formal analysis of system costs (annual, cumulative) and returns.

Summary SA is a process of translating an IS into routine use. Usually coupled with adopting new processes – altogether these make a change management process. Factors of systems adoption are complexity/ease of use, relative advantage, compatibility, trialability, and visibility. Adoption process consists of steps an individual goes through awareness, interest, evaluation/decision, implementing trial, and confirmation (the last two kicks in if the user stays on the course of adoption). Adoption of any innovation follows an S-curve showing adopter % over time. In general, 50% of users are early and 50% late adopters, each side can be further differentiated into 3 groups. Managers should focus first on the early majority group, then on the late majority group.

Summary IS adoption involves organizational groups with different interests. 3 scenarios: adoption, adoption, and rejection. Groups may be in tension, and group perspective influences individual adopters. Managing system adoption (change management) involves supporting users in their adoption by promoting a system, making it available for trial, motivating, training, stimulating early adopters, assessing user satisfaction and adoption rates, managing maintenance, blocking opposition, facilitating org. learning, and celebrating achievements resulting from system adoption.