Turban and Volonino
Chapter 14
Managing IT Projects, Process Improvement,
and Organizational Change
Information Technology for Management
Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid
Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University
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Chapter Outline
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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
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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.
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Learning Objectives – cont’d
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.
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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.
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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.
User Acceptance of Information Technology: Toward a Unified View
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Figure 14.1
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.
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Task Differences
• Ability of a technology to efficiently &
effectively execute a task.
• Appropriateness of the application to needs.
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Table 14.1
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Figure 14.2
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.
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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.
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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.
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Table 14.2
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Figure 14.3
Gartner 2007 emerging technologies hype cycle. (Source: Gartner Inc.)
Check out this article for more: Gartner Emerging Technologies Hype Cycle
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Figure 14.4
Sample priority matrix based on 2007 hype cycle data.
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Table 14.3
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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.
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Figure 14.5
The for P’s 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.
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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.
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Managing Implementation
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Must be within budget.
Must be on time.
Must meet user expectations.
Must be fully functional, to the level
promised.
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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.
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Figure 14.6
Business process management cycle.
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Figure 14.7
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.
Dynamic Business Apps: Design For People, Build For Change
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Table 14.4
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Figure 14.8
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.
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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.
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Figure 14.9
Evolution of BPM software tools.
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Table 14.5
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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.
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.
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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.
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Figure 14.10
Lewin’s three-stage change process.
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Kotter’s Organizational Transformation Model
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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.
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10 Principles of Change Management
• 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 – cont’d
• 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.
Check this out for more about this important topic 10 Principles of Change Management
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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?
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Managerial Issues – cont’d
• User involvement – functional managers
should be involved throughout the process.
• Change management – do not ignore impact
upon culture.
• Risk management – risk is high.
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