Management of Change Management of Change

ICT Investment Results of 1996 OASIG study: Management of Change ICT Investment Results of 1996 OASIG study: 80-90% of systems fail to meet performance goals 80% of systems are late and over budget 40% of systems fail or are abandoned Less than 40% fully address training and skills requirements Less than 25% properly integrate business and technology objectives Just 10-20% meet all their success criteria Based on information from 14,000 organisations

Reasons why ICT systems fail Management of Change Reasons why ICT systems fail Only 10 – 20% of systems meet all goals. Common causes of the failure of new I.T. systems are: Too much emphasis on technological factors Trying to use the latest hardware is very risky Managers often vague about the objectives They may fail to understand fully the business opportunities and the difficulties arising Organisational factors are often ignored The way things are done and the jobs of individual users will be changed, needing explanation

More Reasons why ICT fails Management of Change More Reasons why ICT fails Users often not involved in the design or development of a new system and as a result are resentful and obstructive Users may have unrealistic expectations so that even if it is a success judged by the performance criteria, they may be disappointed Costs are often underestimated The development time is often underestimated The new system may be over-ambitious The more complex the system, the greater the risk of failure

Managing change successfully Management of Change Managing change successfully Development of a major new ICT system should: Be preceded by a review of organisation structure and current working practices Not try to change too much Involve representatives of all those who will use the new system Not promise more than it can deliver Include provision for training of all those who will use the new system In terms of the new technology In terms of the changes in organisational procedures

The changing marketplace Management of Change The changing marketplace The internet has allowed new businesses to change the way that businesses operate Difficult for old established businesses to radically change the way that they work Dilemma is that they are damned if they don’t and may be damned if they do

Implications of change Management of Change Implications of change Possible redundancies Teaching and learning new skills Change in organisational structure Changes in internal procedures