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