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.
Slide 2
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
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.
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
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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Information herein. Copyright 2010 John Wiley & Sons,
Inc.14-49