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

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change How should the organizational change surrounding a new system be managed to ensure success?How should the organizational change surrounding a new system be managed to ensure success? What strategies can our organization use to manage the system implementation process more effectively?What strategies can our organization use to manage the system implementation process more effectively? OBJECTIVES

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Dealing with the complexity of large-scale systems projectsDealing with the complexity of large-scale systems projects MANAGEMENT CHALLENGES

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change System failure Information system does not perform as expected, is not operational at a specified timeInformation system does not perform as expected, is not operational at a specified time Problem areas: Poor design, inaccurate data, excessive expenditure, breakdown in operationsProblem areas: Poor design, inaccurate data, excessive expenditure, breakdown in operations IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Information System Problem Areas

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Information System Problem Areas Figure 13-4

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Implementation Organizational activities working towards adoption, management, and routinization of innovationOrganizational activities working towards adoption, management, and routinization of innovation Change agent Individual acting as catalyst to ensure successful organizational adaptation to a new system or innovationIndividual acting as catalyst to ensure successful organizational adaptation to a new system or innovation Change Management and the Concept of Implementation IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Role of users in implementation processRole of users in implementation process Degree of management support for implementation effortDegree of management support for implementation effort Level of complexity and risk of implementation projectLevel of complexity and risk of implementation project Quality of management of implementation processQuality of management of implementation process Causes of Implementation Success and Failure IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Factors in Information System Success or Failure Figure 13-5 IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change User–designer communications gap Different backgrounds, interests, and prioritiesDifferent backgrounds, interests, and priorities Impedes communication and problem solving among end users and information systems specialistsImpedes communication and problem solving among end users and information systems specialists User Involvement and Influence IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Project requires backing and commitment of management at various levelsProject requires backing and commitment of management at various levels Helps project to be perceived positively by both users and technical information services staffHelps project to be perceived positively by both users and technical information services staff Management Support and Commitment IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Project size: Larger project has greater riskProject size: Larger project has greater risk Project structure: Clear and straightforward requirements help define outputs and processesProject structure: Clear and straightforward requirements help define outputs and processes Experience with technology: Project risk rises if project team and information system staff lack required technical expertiseExperience with technology: Project risk rises if project team and information system staff lack required technical expertise Level of Complexity and Risk IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Improper management leads to: Cost overrunsCost overruns Unexpected time slippageUnexpected time slippage Technical shortfallsTechnical shortfalls Failure to obtain anticipated benefitsFailure to obtain anticipated benefits Management of the Implementation Process IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Consequences of Poor Project Management Figure 13-6 IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change System Challenges of Mergers and Acquisitions Integrating systemsIntegrating systems Organizational characteristicsOrganizational characteristics Information technology infrastructuresInformation technology infrastructures Change Management Challenges IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change High failure rates: enterprise system, BPR, CRM, and SCM implementationsHigh failure rates: enterprise system, BPR, CRM, and SCM implementations Hurdles: Extensive change required in organizational culture and business processesHurdles: Extensive change required in organizational culture and business processes Change Management Challenges IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Managing Technical Complexity: Usage of internal integration tools to ensure operation of implementation teamManaging Technical Complexity: Usage of internal integration tools to ensure operation of implementation team Formal Planning and Control Tools: Structures and sequences tasks, monitors progress towards fulfillment of goalsFormal Planning and Control Tools: Structures and sequences tasks, monitors progress towards fulfillment of goals MANAGING IMPLEMENTATION Controlling Risk Factors

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Increasing User Involvement and Overcoming User Resistance: External integration tools linking work of implementation team to that of users at all organizational levelsIncreasing User Involvement and Overcoming User Resistance: External integration tools linking work of implementation team to that of users at all organizational levels Counterimplementation: Deliberate strategy to thwart an implementation effortCounterimplementation: Deliberate strategy to thwart an implementation effort Controlling Risk Factors MANAGING IMPLEMENTATION

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Formal planning and control tools help to manage information systems projects successfully MANAGING IMPLEMENTATION

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Allowing for the Human Factor Ergonomics: interaction of people and machines in work environmentErgonomics: interaction of people and machines in work environment Sociotechnical Design Produces information system blending technical efficiency with sensitivity to organizational and human needsProduces information system blending technical efficiency with sensitivity to organizational and human needs Designing for the Organization MANAGING IMPLEMENTATION

Pertemuan © 2008 by Abdul Hayat Business Value of Systems and Managing Change Project planning is an enterprise-wide focusProject planning is an enterprise-wide focus Managers focus on solving problems as they arise and meeting challengesManagers focus on solving problems as they arise and meeting challenges Fourth-Generation Project Management MANAGING IMPLEMENTATION