1. Management of Change
Management of Change

2. 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

3. 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

4. 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

5. 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

6. 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

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