Information system implementation projects often lack critical execution strategies. As Arvidsson, Holmström, and Lyytinen (2014) summarized, realizing an Information System (IS) strategic intent, which involves aligning IS functionality with business objectives, is often hindered by strategy blindness. A lack of understanding of IS governance can lead to resource mismanagement, project failure, low employee morale, and economic losses for organizations. A prime example of a failed IT implementation project is the not-for-profit organization Midsouth Chamber of Commerce (MSCC), which mismanaged resources during its IS implementation.
A closer examination of MSCC's information system acquisition, development, and maintenance provides valuable insights into IS implementation challenges and offers lessons to avoid similar pitfalls. Information is a critical resource that must be properly managed. Integrating an information system with an organization's objectives requires careful planning to ensure business continuity and minimize losses. Effective IS management necessitates proper analysis, planning, implementation, and evaluation at every stage of the system's lifecycle (Kornkaew, 2012).
MSCC, a regional trade alliance organization, operates on a budget derived from member contributions. To modernize operations and address growing IS needs, MSCC management decided to acquire a new information system. However, without thoroughly analyzing the existing system and planning for data migration, they adopted an IS from UNITRAK. The implementation faced immediate issues, including data migration difficulties, inadequate staff training, and loss of productivity. The anticipated efficiency gains did not materialize, leading to unmet employee expectations and persistent operational challenges. The situation worsened when UNITRAK went out of business, discontinuing product support and making IS management a leadership challenge for MSCC.
Subsequently, MSCC management decided to transition from UNITRAK and IBM machines to HP hardware and Data Management Associates (DMA) software. However, the DMA information system encountered significant problems, leading to escalating issues with both the product and vendor. The contract signed with DMA contained flaws, further contributing to communication difficulties and financial losses for MSCC.
Analysis
MSCC's IS implementation challenges can largely be attributed to its business growth outpacing its existing systems. A lack of leadership and ownership of implementation exacerbated the organization's problems. While MSCC leaders had good intentions, their poor judgment and insufficient knowledge led to IS implementation failures. Additionally, the absence of qualified professionals to oversee IS projects, communication breakdowns between management and employees, and inadequate transition strategies contributed to the failures. Proper testing of IS products was neglected, and user perspectives were not sufficiently considered. Furthermore, no contingency plans were in place to mitigate potential implementation shortcomings.
Conclusion
Strategic IS planning is essential for the successful implementation of information systems in an organization (Lederer & Sethi, 1988). Organizational management must evaluate user perspectives, set project implementation goals, and define clear expectations. IS implementation should align with the organization's strategic mission and secure user buy-in. Moreover, IS acquisitions should be preceded by thorough market research, vendor evaluations, and infrastructure analyses. A structured IS adoption process should involve key stakeholders, including champion users, managers, and industry professionals. The advantages and disadvantages of upgrading existing IS versus adopting a new product should be carefully weighed. After selecting a suitable product, contract terms should be reviewed by legal experts, and product support options should be explicitly outlined. Additionally, a data migration plan, user training, and user acceptance strategies should be incorporated into the implementation process.
References
Arvidsson, V., Holmström, J., & Lyytinen, K. (2014). Information systems use as strategy practice: A multi-dimensional view of strategic information system implementation and use. The Journal of Strategic Information Systems (1), 45-61. doi: 10.1016/j.jsis.2014.01.004
Kornkaew, A. (2012). Management Information System Challenges, Success key issues, Effects and Consequences: A case study of FENIX System. Diva-portal.org. Retrieved 30 October 2016, from http://www.diva-portal.org/smash/record.jsf?pid=diva2:545644
Lederer, A., & Sethi, V. (1988). The Implementation of Strategic Information Systems Planning Methodologies. MIS Quarterly, 12(3), 445. http://dx.doi.org/10.2307/249212
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