IS Implementation Risk

1
Chapter 10

• IS Implementation Risk

2
Risk Components

• Magnitude of loss
• Likelihood of loss
• Exposure to loss

3
Management of Risk

• Control
• Information
• Time

4
IT Project Risk

• What is loss with respect to IT projects?
• Failure to gain anticipated benefits because of
  implementation difficulties
• Higher than expected implementation costs
• Longer than expected implementation time
• Technical performance below expectation
• System incompatibility

5
Project Dimensions Influencing Risk

• Project size
• Experience with technology
• Project structure

6
Mythical Man Month

• IBM 360 Operating System Brooks
• Adding people to a late project only makes it
  later
• partitionable tasks
• communication and coordination costs

7
Low Structure/Information Requirements

• The problem of communicating requirements
• Exponentially greater cost of fixing errors that
  occur early in the system life cycle

8
Contingency Approach to Project Management

• External integration
• Internal integration
• Formal planning
• Formal control

9
External Integration Techniques

• Aimed at resolving requirements uncertainty
• User project manager
• User steering committee
• User approval process
• Joint Application Design (JAD)
• Prototyping for requirements determination

10
Internal Integration Techniques

• Aimed at resolving technical design uncertainty
• Selection of experienced IT team leadership
• Frequent team meetings
• Co-location
• Technical status reviews and updates
• Maintain low team turnover
• Import outside technical expertise

11
Formal Planning Tools

• Project Management Software
• PERT CPM
• CMM process conformity
• Use of defined development methodology
• Project Office

12
Formal Control Tools

• Status-versus plan reports
• Change control and configuration management
• Milestone reviews

13
Portfolio Risk

• Consequences of no risky projects
• Consequences of a majority of risky projects
• Strategic quadrant - Support, Factory,
  Turn-around, Strategic

14
New IS Effects

• How do new Information Systems change work?
• New tasks, new processes
• New communication patterns
• New political relationships
• New technology to learn
• New skills valued
• Others?
• People in an organization may resist the
  implementation of a new IS

15
Cost of Implementation Failure

• Standish Group study (1995) found that
• 16.2 of IT projects successful
• 52.7 of IT projects challenged
• 31.1 of IT projects impaired.
• Numerous projects resisted after having been
  declared successful (Krasner 2000).
• Apparent belief among MIS researchers that user
  resistance contributes to project failure.

16
Conceptualization of Resistance in Acceptance
Studies
17
Definitions of Acceptance and Resistance

• Acceptance the act of receiving IT use
  willingly (Saga and Zmud 1994).
• Resistance action or intentional inaction that
  opposes or sidesteps the implementation of new
  information technology.

18
Resistance Tactics
19
Mandatory vs. Voluntary Usage

• Degree of acceptance makes sense for voluntary
  systems. Does resistance to voluntary systems
  make sense?
• For mandatory systems, how would grudging
  acceptance be classified?

20
Change in Resistance over Time

• As alternative forms of resistance are
  prohibited, different forms may be tried
• Voice ? Work around ? Sabotage or Exit
• Voice ? Work around ? Grudging acceptance.
• Resistance may be constructive and disappear if
  reasonable suggestions are heeded.

21
Passive Resistance

• How frequently do passive forms of resistance
  manifest?
• Problem of passive resistance and using intention
  to accept as the definition of system success.
• Effectiveness of passive resistance.
• Passive resistance and plausible deniability.

22
Resistance Can Be Contagious
System Implementation (From Acceptance Viewpoint)
Failure
Mutiny (2)
(4)
Coup
Success
Rebel (1)
Subversive (3)
ILLUSORY SUCCESS
Active
Passive
Resistance Type
23
Definitions of Acceptance and Resistance

• Acceptance the act of receiving IT use
  willingly (Saga and Zmud 1994).
• Resistance action or intentional inaction that
  opposes or sidesteps the implementation of new
  information technology.

24
Some Interpretations of Resistance

• Resistance is pathological.
• Resistance as an impediment to legitimate
  management initiatives.
• Resistance is a risky activity for the resistor.
• Resistance is a means to preserve personal
  integrity and self-esteem.