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Chapter 14 Managing IT Projects, Process Improvement, and Organizational Change Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Turban and Volonino 14-1Copyright 2010 John Wiley & Sons, Inc.

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Chapter Outline 14.1 Adopting IT Projects 14.2 Implementing IT Projects 14.3 Business Process Management 14.4 Change Management and Organizational Transformation 14.5 Managerial Issues 14-2Copyright 2010 John Wiley & Sons, Inc.

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Learning Objectives 1.Understand the concept of the technology adoption lifecycle. 2.Describe the five stages of the adoption lifecycle. 3.Understand the impact of technology, task, individual, organizational and environmental characteristics on the adoption of new technologies. 4.Describe Rogers five adopter categories. 5.Understand typical causes for IT implementation failures. 14-3Copyright 2010 John Wiley & Sons, Inc.

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Learning Objectives contd 6.Discuss challenges associated with implementing IT projects. 7.Understand the concept of business process management (BPM) and how it can be used to enhance effectiveness in an organization. 8.List and describe the steps in creating an effective BPM strategy. 9.Describe the role of change management in systems implementation. Copyright 2010 John Wiley & Sons, Inc.14-4

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Copyright 2010 John Wiley & Sons, Inc.14-5 Figure IT7eU

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Problems complex payroll data for 15,000 drivers handled manually; delays, losses, inaccuracies were common due to handwritten documents. Poor morale, extended hours, frustration was rampant. Solutions character-recognition system. 99.9% success rate. ROI 1 year. Results problems eliminated. 2008 CIO 100 award for use of innovative technologies to generate business value. Copyright 2010 John Wiley & Sons, Inc.14-6

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Copyright 2010 John Wiley & Sons, Inc.14-7 14.1 Adopting IT Projects

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Elements of Technology Adoption Technology itself. Communication channels through which information is exchanged between potential adopters. Speed at which emerging technology is being adopted. Social system into which innovation is introduced that can be influenced by internal opinion leaders & external change agents. Copyright 2010 John Wiley & Sons, Inc.14-8 User Acceptance of Information Technology: Toward a Unified View

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Figure 14.1 Copyright 2010 John Wiley & Sons, Inc.14-9 IT adoption process. (Source: Drawn by C. Pollard.)

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Technology Differences Compatibility degree perceived to fit with existing values, past experiences & needs of potential adopters. Complexity degree perceived to be difficult to understand & use. Reliability extent new system is robust & dependable. Relative advantage degree perceived to be better than existing system. Copyright 2010 John Wiley & Sons, Inc.14-10

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Task Differences Ability of a technology to efficiently & effectively execute a task. Appropriateness of the application to needs. Copyright 2010 John Wiley & Sons, Inc.14-11

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Table 14.1 Copyright 2010 John Wiley & Sons, Inc.14-12

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Figure 14.2 Copyright 2010 John Wiley & Sons, Inc.14-13 Adopter category distribution.

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Organizational Differences Not all organizations are capable of providing same level of support to assist in introduction of new technology. Larger organizations are usually best equipped to have highly skilled technology specialists & most up-to-date information. Small organizations are often most agile & can move faster to adopt. Copyright 2010 John Wiley & Sons, Inc.14-14

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Critical Success Factors Planning at all stages, with necessary adjustments along the way, is critical to success. Supportive IT infrastructure refers to physical equipment & provision of appropriate personnel. Management support is essential. Presence of a champion to promote benefits. Copyright 2010 John Wiley & Sons, Inc.14-15

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Environment Differences Vendor maturity & availability will differ depending upon system. Customer-base may be diverse. Industry & geographical location will be factors. Vendor support & training will differ. Customer skill level & accessibility to online services will be different. Copyright 2010 John Wiley & Sons, Inc.14-16

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Table 14.2 Copyright 2010 John Wiley & Sons, Inc.14-17

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Figure 14.3 Copyright 2010 John Wiley & Sons, Inc.14-18 Check out this article for more: Gartner Emerging Technologies Hype CycleGartner Emerging Technologies Hype Cycle Gartner 2007 emerging technologies hype cycle. (Source: Gartner Inc.)

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Figure 14.4 Copyright 2010 John Wiley & Sons, Inc.14-19 Sample priority matrix based on 2007 hype cycle data.

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Table 14.3 Copyright 2010 John Wiley & Sons, Inc.14-20

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Copyright 2010 John Wiley & Sons, Inc.14-21 14.2 Implementing IT Projects

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Implementation Roadmap Infrastructure provides foundation for IT applications in enterprise. I.e.: data center, networks, data warehouse, & corporate knowledge base. IT applications are specific systems & programs for achieving certain objectives. I.e.: providing payroll or taking customer orders. Involves change in current business processes. Change-over must be well planned. Copyright 2010 John Wiley & Sons, Inc.14-22

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Figure 14.5 Copyright 2010 John Wiley & Sons, Inc.14-23 The for Ps of implementation.

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Success & Failure of IT Implementations Failures range from 30 to 70%. ERP & CRM implementations are especially prone to failure due to scope & magnitude of change. Processes must typically be restructured. Skill sets may need to be changed. Locus of control may need to change. Communication is essential & key. Copyright 2010 John Wiley & Sons, Inc.14-24

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Factors That Impact Implementation Success Top management support resource allocation, upper level model of acceptance. Level of risk depends upon project size, project structure & complexity of effort. Training of users critical to success. User acceptance users must be involved in design & throughout process. Management of process must be with incentives. Copyright 2010 John Wiley & Sons, Inc.14-25

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Managing Implementation Must be within budget. Must be on time. Must meet user expectations. Must be fully functional, to the level promised. Copyright 2010 John Wiley & Sons, Inc.14-26

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Copyright 2010 John Wiley & Sons, Inc.14-27 14.3 Business Process Management

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Concept of BPM Includes methods & tools to support design, analysis, implementation, management & optimization of operational business processes. Extension of workflow management: documents, information & activities flow between participants according to existing process models & rules. Consists of activities performed by businesses to optimize & adapt their processes. Consist of designing, analyzing, implementing, managing & optimizing a process for effectiveness & efficiency. Copyright 2010 John Wiley & Sons, Inc.14-28

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Figure 14.6 Copyright 2010 John Wiley & Sons, Inc.14-29 Business process management cycle.

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Figure 14.7 Copyright 2010 John Wiley & Sons, Inc.14-30 BPM focus.

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Creating a BPM Strategy Conduct thorough assessment of core strategic & operational processes to identify those processes that need to be improved. Develop a process performance plan that documents ways in which identified operational processes contribute to strategic goals. Prioritize with highest priority given to processes with greatest potential impact on strategic objectives. Copyright 2010 John Wiley & Sons, Inc.14-31 Dynamic Business Apps: Design For People, Build For Change

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Table 14.4 Copyright 2010 John Wiley & Sons, Inc.14-32

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Figure 14.8 Copyright 2010 John Wiley & Sons, Inc.14-33 BPM without boundaries.

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Business Process Modeling Referred to as business process mapping. Includes techniques & activities used as part of larger business process management discipline. Similar to drafting a blueprint for a house. Must create a blueprint of how company works now & will after implementation. Copyright 2010 John Wiley & Sons, Inc.14-34

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Measuring Processes Six Sigma methodology to manage process variations that cause defects & to systematically work toward managing variation to prevent those defects. TQM management strategy aimed at embedding awareness of quality in all organizational processes. ISO key is development of plan to prevent non-conforming process from being repeated. Copyright 2010 John Wiley & Sons, Inc.14-35

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Figure 14.9 Copyright 2010 John Wiley & Sons, Inc.14-36 Evolution of BPM software tools.

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Table 14.5 Copyright 2010 John Wiley & Sons, Inc.14-37

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Copyright 2010 John Wiley & Sons, Inc.14-38 14.4 Change Management and Organizational Transformation

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Concept of Change Management Structured approach from current to desired state. Avoiding user resistance to business & system changes. Addresses differences in perspectives of partners. Involves compromise. Copyright 2010 John Wiley & Sons, Inc.14-39 Secret of Change Management - motivation, leadership skills, development, styles and business strategy - motivational conference keynote speaker - speech by Patrick Dixon

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Key Stakeholders May Withhold resources. Purposely identify wrong people to work on project. Raise continual objections to project requirements. Change project requirements. Expand size & complexity of project. Copyright 2010 John Wiley & Sons, Inc.14-40

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Change Process Models Structured technique to effectively transition groups or organizations through change. Provide a framework for managing the people side of change. Most are based on simple three-stage model originally theorized by Kurt Lewin: unfreezing, change, & refreezing. Copyright 2010 John Wiley & Sons, Inc.14-41

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Figure 14.10 Copyright 2010 John Wiley & Sons, Inc.14-42 Lewins three-stage change process.

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Kotters Organizational Transformation Model Establish sense of urgency. Form powerful guiding coalition. Create vision. Communicate vision. Empower others to act on vision. Plan for & create short-term wins. Consolidate improvements & produce more change. Institutionalize new approaches. Copyright 2010 John Wiley & Sons, Inc.14-43

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10 Principles of Change Management Copyright 2010 John Wiley & Sons, Inc.14-44 Address human side of change systematically. Adapt often as circumstances change. Start at the top. Top managers must show full support. Must be role models. Involve every layer. Change occurs at all levels of the organization. Change cascades down. Make the formal case. Need for change will be challenged. Create ownership. Leaders must be willing to accept responsibility for achieving the change.

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10 Principles of Change Management contd Communicate the message. Repeatedly provide the right information at the right time to the right people through multiple channels. Assess the cultural landscape. Core cultural values, behaviors, & perceptions must be addressed up front, in regard to readiness for change, identify conflict areas & define factors that can impact resistance. Address culture explicitly. Address head on once understood. Prepare for unexpected. No matter how well planned, there will be surprises. Speak to the individual. Real change only occurs at the individual level. Copyright 2010 John Wiley & Sons, Inc.14-45 Check this out for more about this important topic - 10 Principles of Change Management 10 Principles of Change Management

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Copyright 2010 John Wiley & Sons, Inc.14-46 14.5 Managerial Issues

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Managerial Issues Global & cultural change could result in problems associated with ways different people interact that are culturally based. Ethical & legal consider the people impacted by change. May include need for layoffs, retraining, transfer of employees. What should be done in terms of advance communication? What about older employees? Copyright 2010 John Wiley & Sons, Inc.14-47

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Managerial Issues contd User involvement functional managers should be involved throughout the process. Change management do not ignore impact upon culture. Risk management risk is high. Copyright 2010 John Wiley & Sons, Inc.14-48

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Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein. Copyright 2010 John Wiley & Sons, Inc.14-49