chapter 10 is implementation risk. risk components magnitude of loss likelihood of loss exposure to...

Chapter 10

IS Implementation Risk

Risk Components

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

Management of Risk

• Control• Information• Time

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

Project Dimensions Influencing Risk

• Project size• Experience with technology• Project structure

Mythical Man Month

• IBM 360 Operating System – Brooks

• Adding people to a late project only makes it later– partitionable tasks – communication and coordination

costs

Low Structure/Information Requirements

• The problem of communicating requirements

• Exponentially greater cost of fixing errors that occur early in the system life cycle

Contingency Approach to Project Management

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

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

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

Formal Planning Tools

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

methodology • Project Office

Formal Control Tools

• Status-versus plan reports• Change control and configuration

management• Milestone reviews

Portfolio Risk

• Consequences of no risky projects• Consequences of a majority of

risky projects• Strategic quadrant - Support,

Factory, Turn-around, Strategic

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

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.

Conceptualization of Resistance in Acceptance Studies

Study Acceptance conceptualized as Resistance

Cooper and Zmud (1990) Routinization and infusion. No reference made

Davis (1989) Initial decision to use Study motivated by the need to understand resistance to system implementation

Davis, Bagozzi, and Warshaw (1989) UsageStudy motivated by the need to understand resistance to system implementation

Harrison, Mykytyn & Riemenschneider (1997)

Usage No reference made

Karahana, Straub and Chervany (1999) Usage – short and long-termStudy motivated by the need to understand resistance to system implementation

Mathieson (1991) Use of IT innovation No reference made

Morris and Venkatesh (2000) Usage – Short and Long term No reference made

Riemenschneider, Hardgrave and Davis (2002)

Intention to useStudy motivated by resistance to system implementation.

Venkatesh (1999) Usage No reference made

Venkatesh and Davis (2000) Usage No reference made

Venkatesh and Morris (2000) Usage – Short Term and Long Term No reference made

Joshi and Lauer (1998) UsageStudy motivated by resistance to system implementation.

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.

Resistance TacticsType of Resistance

Resistance Tactic

Description

Active Voice Individuals voice their concerns and opposition

Active Exit Individuals leave the organization unwilling to adapt to the new system

Active/Passive Sabotage Individuals make concerted efforts to ensure the failure of the system

Passive Footdragging Individuals restrict their work output

Passive Withdrawal Individuals withdraw their commitment and mental effort

Passive Workaround Individuals find ways of working around the system

Passive Grudging Acceptance

Individuals go along with the system, but with a grudge and continuing to look for a way out

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?

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.

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.

SystemImplementation(From Acceptance Viewpoint)

Resistance Type

Active Passive

Success

Failure

Rebel (1)

Coup (4)

Mutiny (2)

Subversive (3)

Resistance Can Be Contagious

ILLUSORY SUCCESSILLUSORY SUCCESS

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.

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.