Class 22 Systems Adoption Process

1. MIS 2000 Information Systems for Management Instructor: Bob Travica Class 22 Systems Adoption Process Updated 2014

2. Outline • Concept of Systems Adoption • Factors of Systems Adoption • Speed of Systems Adoption • New System vs. Old Organization • Management of IS Adoption • Process/Change Management Process • Summary

3. Concept of Systems Adoption/Acceptance (SA) • SA – one of core IS issues • Definition: SA is a process of translating an IS into routine use. • Focus is on IS users, especially primary users. • Often, adopting a system runs in parallel with adopting new processes (PPC case). This complicates adoption. *

4. Factors of Systems adoption • Rogers (1962, 1983); check Note for explanation. * Complexity (ease of use) Visibility +/- - New IS Adoption + + Relative Advantage (usefulness) Trialability + Compatibility

5. Adoption Process Rogers looks at adoption as a process of innovation diffusion, which involves a communicationchannel,time, and members of a social system (organization, group). Five steps in adoption process: * Evaluate/ Decide Get aware Confirm Implement Interest Yes Evaluation positive? Yes Reject No Evaluation positive? No

6. Speed of Innovation Adoption Usually, a half of people belong to earlier and a half to later adopters. Fine grained grouping shows that very early and very late adopters also balance each other.

7. 615 Management Information Systems New System vs. Old Organization Different groups in organizations react differently to new IS and business processes. Groups may collide with new IS/processes and block them, or accept them accept which are good for some groups but less so for others. Decisions can also impact organizational goals in different ways. * New processes & IS New proc. & IS Current organization (status-quo) • IS Adoption and Change of status-quo: • New IS adopted and old processes changed. • Case of Financial Information System (an MIS for finance & accounting) 2. IS Rejection and No Change of status quo: • New IS blocked and old processes continue. • Case of Electronic Medical Record Systems New IS, new/old proc. 3. Reinforcement of status quo: • New IS adopted but they do not change old processes and management. • Case of computerizing American city administration

8. New System vs. Old Organization: ADOPTION AND CHANGE New proc. & IS Current organization (status-quo) • Change of status-quo • In FIS case, corporate accountants influenced decisions on IS • design and accounting rules, which undermined the position of • management accountants. FIS pushed on all accountants and changed accounting processes in the pharmaceutical company. 615 Management Information Systems

9. New System vs. Old Organization: REJECTION AND NO CHANGE New processes & IS Current organization (status-quo) 2. IS Rejection and No Change of status quo EMRS and new processes in some Quebec hospitals were rejected. Investment in new IS did not pay back and the old organization had persisted. * 615 Management Information Systems

10. New System vs. Old Organization: ADOPTION AND NO CHANGE Current organization (status-quo) New IS, new/old proc. 3. Reinforcement of status quo New IS developed so that old processes are put in electronic form. Consequently, organization did not change with IS adoption.* 615 Management Information Systems

11. The S-Curve of Innovation Adoption – Various Technologies Look for the inflection point (“tipping point”) where the curve start going up to reason if a new technology gets a market.

12. Managing IS Adoption Process Critical period user Repeat until end of critical period management Get aware Evaluate/ Decide Confirm Interest Implement Assess C/B of IS Assess adoption rate & users satisfaction Promote + Give access to IS Motivate + Train for IS & process Stimulate adoption End of critical period Facilitate org. learning Manage Maintenance • Rogers’s adoption process mapped into adoption management process. • Management activities are the methods and moves, which managers can take to facilitate system adoption; also called change management. Celebrate achievements Block opposition

13. Summary • SA is a process of translating an IS into routine use. Often difficult to trasnlaqt3e from adopting new processes. • Factors of systems adoption are complexity/ease of use, relative advantage, • compatibility, trialability, and visibility. • Adoption process consists of steps an individual goes through awareness, interest, evaluation/decision, implementation, and confirmation (the last 2 if decision is to accept IS). • In the overall population of a system adoption (or any innovation), 50% of users are early adopters and 50% are late. • Adoption of any innovation follows an S-curve showing adopter percentage over time. For managing adoption, the point at which adoption starts shooting up matters. • IS adoption is influenced by different groups in organizations. Depending on their relative power, 3 scenarios are possible: (1) IS adoption & process change, (2) IS rejection, old process persist, and (3) IS adoption old processes reinforced. • Managing system adoption (change management) involves supporting users in their adoption by promoting a system, making it available for trial, motivating, training, stimulating early adopters, assessing user satisfaction and adoption rates, managing maintenance, blocking opposition, facilitating org. learning, and celebrating achievements resulting from system adoption.