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Managing IT: Planning and Implementing Change. Chapter Objectives. How end user resistance to changes in business processes or IT can be minimized by end user involvement in the systems development and implementation process.

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managing it planning and implementing change
Managing IT:

Planning and Implementing Change

chapter objectives
Chapter Objectives
  • How end user resistance to changes in business processes or IT can be minimized by end user involvement in the systems development and implementation process.
  • The factors that should be considered in evaluating the acquisition of hardware, software, and IS services.
  • The activities involved in the implementation of new information systems.
planning for business change
Planning for Business Change
  • Business planning is an important organizational process of team building, modeling, and consensus that analyzes and evaluates key elements of the business.
  • More specifically, it evaluates an organization’s internal and external environments, forecasts new developments, establishes an organization’s vision, goals, and objectives and develops strategies, tactics, and policies to realize them.
  • Effective IT planning is a key ingredient in achieving strategic business success with information systems.

Integration planning framework


  • Strategic priorities
  • Go to market strategy
  • Portfolio
  • Channel strategy

Structure & process

  • Organization structure
  • Systems & processes
  • Information flows and decision making process
  • Financial & information systems architecture
  • Measures
  • Customer satisfaction
  • Financial
  • Employee satisfaction
  • Operational excellence
  • Recognition and reward systems

People & culture

  • One common culture
  • Retention of top talent
  • New competencies for our people
  • Roles and responsibilities
is planning
IS Planning
  • Information systems planning involves several planning activities:
  • Strategic IS Planning - aligns investment in IT with a company’s business vision and strategic organizational goals.

Tactical IS Planning - evaluates current and projected information needs of the organization, prioritizes IS development projects, and develops allocation plans for financial and technology resources.

Operational IS Planning - develops plans such as annual operating budgets and individual IS project plans.

is planning methodologies
IS Planning Methodologies
  • Business organizations utilize a variety of IS planning methodologies. These methodologies include:
    • Scenario approach
    • Use of strategic opportunities matrix
    • Critical success factors
    • Business systems planning
    • Business simulation and enterprise modeling through computer-aided planning software
implementing business is change
Implementing Business/IS Change
  • Implementing business change includes managing the introduction and implementation of changes in business processes, organizational structures, job assignments, and work relationships resulting from reengineering projects, strategic business alliances, and the introduction of new technologies.
  • Companies often use change management programs to lower the risks and costs and maximize the benefits of such major changes in business and IT.
evaluating hardware software and services
Evaluating Hardware, Software, and Services
  • A formal evaluation process reduces the possibility that a business will buy inadequate or unnecessary computer hardware or software.
  • When evaluating hardware, the business should investigate specific physical and performance characteristics for each hardware component to be acquired. These characteristics include performance, cost, reliability, availability, and compatibility to name a few.
  • Software evaluation should be conducted in a similar way, investigating many of the same characteristics.
  • Evaluation factors for IS services should focus on the quality of support services computer users may need.
implementing is
Implementing IS

Implementation activities are needed to transform a newly

developed information system into a operational system for

end users.

  • Implementing a new system should include the following steps:
  • Acquisition - acquire necessary hardware and software resources
  • Software Development - develop necessary computer programs and make necessary modifications to software packages
  • Training - educate and train management, end users, etc.
  • Testing - test and make necessary corrections to programs, procedures, and hardware
  • Documentation - record detailed system specifications
  • Conversion - convert present system to new and/or improved system
cultural integration
Cultural Integration

To build a strong, new culture that:

  • Is clearly defined and broadly understood
  • Reflects the business strategy and brand
  • Supports best-in-class performance with customers, partners, shareowners and employees
  • Produces alignment, commitment and excitement
  • Establishes a competitive advantage
  • Is reflected in the communications and actions of core leaders

Culture integration planning framework

  • Sample input
  • Newco execculture session
  • HP historical
  • CPQ historical
  • New HP brand
  • Competitive environment
  • Customer


& process



Metrics &rewards



  • Sample output
  • Vision & governance for new company
  • Balanced scorecard & pay metrics
  • Leadership selection
  • Formation & start-up of new teams
  • Customer (quality) initiatives
  • FastStart program

Policies &practices

  • A good planning process helps organizations learn about themselves, uses resources efficiently and effectively, and promotes organizational change and renewal.
  • Various IS planning activities and methodologies can be used to help businesses implement business/IT change.
  • A formal evaluation process reduces the chance that an organization will buy incorrect hardware, software, or IS services.
  • An effective implementation process transforms a new information system into an operational system for business end users.
some possible questions
Some Possible Questions
  • 1. Name and explain the three main planning activities
  • involved in information systems planning.
  • 2. What are major evaluation factors that a business should
  • consider before acquiring proposed hardware, software,
  • or IT services?
the organizational planning process
The Organizational Planning Process

Analyze the




Internal and








Team Building,

Modeling and


Articulate the









Methods and







Business Plan

Competitive Options

Roles, Roles and Relationships



as the Delivery Process

Success Factor Profile





















and Responsibility




How to Run a Business

1. The primary job of a CEO is the long term viability of the business.

2. Vision can be the key to business leadership.

3. Vision without action is poverty-stricken poetry.

4. Action without vision is stumbling in the dark.



1. How important is it for a company to have a well understood vision?

2. Is there something unique about a visionary executive?

3. What factors influence the creation of a vision?

4. What are the logical time dimensions of a business vision?

5. What major challenges frequently accompany establishing a new vision within a company?

a good business vision

What the company wants to be at some point in the future.

Motivates people as to what the company is trying to change.

Provides a continuing focus.

Provides a yardstick for measuring progress.

A Good Business Vision

Ex-Vision Statement

To be recognized as the best airline in the industry by our customers, employees and


Continental Airlines


Delta Vision for the Future

Our vision is for Delta to be the worldwide airline of


We will provide our customers access to the world,

and we will be an innovative, aggressive, ethical and

successful competitor committed to profitability and

superior customer service.

Looking ahead, we will consider opportunities to

expand through new routes and alliances.


Key to the Vision Process

1.Establish a clear vision of the future.

2. Provide a basis for sharing values and views (the vision).

3. Send a message regarding the importance of the vision process throughout the entire organization to gain consensus and momentum.


Change is a significant alteration or disruption in peoples’ expectation patterns.

Like it or not, people are creatures of habit.

We live in a world of change, yet we act on the

basis of continuity.



Is familiar

Provides safety and security

We like to plan on the basis that present conditions will continue.


Is unfamiliar

It disturbs us

We avoid it

We often resist it

human aspects of change
Human Aspects of Change
  • New skills are required.
  • Patterns of communication are altered.
  • Time spans between communications are decreased.
  • Points of influence, authority and control are redefined.
  • Roles, work relationships and reporting responsibilities are
  • modified.
  • Data ownership shifts.
  • Privacy and security concerns increase.
  • New management techniques and organizational structures
  • evolve.
definition of change management
Definition of Change Management

Managing the process of implementing major

changes in IT, business processes, organizational

structures, and job assignments to reduce the risks

and costs of change, and to optimize its benefits.

what does change management require
What Does Change Management Require?

A commitment from top management and an organizational design to plan the future of IT and IS within the business.

Change management involves analyzing and defining all changes facing the organization, and developing programs to reduce the risks and costs, and to maximize the benefits of change.

end user resistance
End User Resistance
  • New ways of doing things creates resistance among employees.
  • This is the biggest obstacle to the implementation of new information systems.
end user implications
End User Implications

Dealing with end user resistance:

- Proper education and training.

- Direct end user participation before implementation helps insure that the end users assume ownership of a system, and that its design meets their needs.

reengineering a business process
Reengineering a Business Process
  • Develop a change action plan.
  • Assign selected managers as change sponsors.
  • Develop employee change teams.
  • Encourage open communications and feedback about organizational changes.
change management activities
Change Management Activities

Human resource management handles:

Activities - Such as developing innovative ways to measure, motivate, and reward performance.

Program - Design a way to recruit and train employees in the core competencies required in a changing workplace.

recommendations of consultants
Recommendations of Consultants
  • Involve as many people as possible in reengineering and other change programs.
  • Make constant change part of the culture.
  • Tell everyone as much as possible about everything as often as possible, preferably in person.
  • Make liberal use of financial incentives and recognition.
  • Work within the company culture, not around it.

Fast paced change has frequently become essential for a business to remain efficient in its operations and/or to remain competitive.

Change management has become fundamental to running a successful business.

possible questions
Possible Questions

1. Why is change management an important

aspects to running a successful business?

2. Identify key factors that would enable an

organization to successfully implement a major

new information system.

managing organizational change











Managing Organizational Change







change an important management issue
Change: An Important Management Issue

Time compression: information and communications

Turbulence: political and cultural

Interdependence: one economic and social world

Technology advances: rapid pace of product change and its impact on other areas.

Business pressures: time to market, time to develop and manufacture and time to decisions.

a new attitude
A New Attitude?

Change is natural and to be expected.

Continuity is unnatural and to be suspected.

information systems planning








Design IT





Information Systems Planning

IT Architecture












































some questions
Some Questions

What is happening in our industry and related industries?

What makes us special? What must be done to remain so?

Who are our competitors and business partners?

What type of organization and style of management do we want to have?

What role should IT logically plan in our future?

strategic opportunities matrix
Strategic Opportunities Matrix

High Risk

High Payoff


High Success

High Payoff






Safe, but

Low Payoff


High Risk

Low Payoff





critical success factors


Critical Success Factors


per Share



Key Areas

in Which



is Needed to

Meet Goals

Return on


New Product


  • Automotive Industry
  • Styling
  • Dealer System
  • Cost Control
  • Energy Standards

Other Factors

information systems architecture1
Information Systems Architecture

Architecture is determining the needs of the user and then designing and building systems to meet those needs as effectively as possible within economic and technological constraints.

Fred Brooks


“Mythical Man-month”

is architecture
IS Architecture

1. Involves explicit ways to depict what you are trying to accomplish so that multiple people can create around the same baseline.

2. A top down approach to systems design that minimizes risk by reducing erroneous assumptions.

3. Quality expectations also force a higher level representation.

what is is architecture
What is IS Architecture?
  • Business/IT strategies develop a basis for the IT architecture
  • It is a conceptual design, or blueprint, that includes:
        • Technology platform
        • Data resources
        • Application portfolio
        • IT organization
  • It is a conceptual design, or blueprint, that dictates
  • how information systems will be designed and built.
  • Always remember that business strategies develop a
  • basis for the IS architecture.
  • IS architecture elements includes:
    • Technology platform
    • Data resources
    • Application portfolio
    • The IS organization
technology platform
Technology Platform
  • What sort of platform do you need to support the information technology in a business?
        • Computer system
        • Systems and application software
        • Telecommunications Networks (to provide a computing and communications infrastructure)
  • What sort of platform do you need to support the business with information technology?
    • Computer system
    • Systems and application software
    • Telecommunications Networks (to provide a
    • computing and communications infrastructure)
data resources
Different types of operational and specialized databases such as:

Data warehouses

Analytical databases

External data banks

store and provide data and information for business processes and managerial decision support.

Data Resources
  • Different types of operational and specialized databases such as:
    • Operational databases
    • Data warehouses
    • Analytical databases
    • External databases
  • Provides data and information for business processes and managerial decision support.
application portfolio
A diverse portfolio of information systems that support key business functions as well as cross-functional business processes.

Interorganizational business linkages

Managerial decision making

End user computing and collaboration

Strategic initiatives for competitive advantage

Application Portfolio
  • A diverse portfolio of information systems that support key business functions as well as cross-functional business processes.
    • End user computing and collaboration.
    • Managerial decision making.
    • Interorganizational business linkages.
    • Strategic initiatives for competitive advantage.
it organization
The IT organization is based on:

Managerial philosophy

Business vision

Business/IT strategies that were formulated during the strategic planning process

IT Organization
  • The IT organization is based on:
  • Managerial philosophy.
  • Business vision.
  • Business/IT strategies that were formulated
  • during the strategic planning process.
is architecture1
IS Architecture

Business Strategy


I/S Strategy

Open Systems

Proprietary Systems



I/S Implementation Plan

is architecture2
IS Architecture


Vision and





Physical System





the u s federal aviation administration failure in is planning
The U.S. Federal Aviation Administration: Failure in IS Planning

“Developing a cohesive IT architecture to guide multiple IT development projects is one of the key products of strategic IT planning. Without such an architecture, large IT development projects may produce massive “inconsistencies and incompatibilities” and poor performance in information systems designed to work together.”

~By Author of the book

Page 616

Developing a cohesive IT architecture to guide multiple IT development projects is one of the key products of strategic IT planning.

Without such an architecture, large IT development projects may produce massive “inconsistencies and incompatibilities” and poor performance in information systems designed to work together.

James A. O’Brien

Textbook, Page 616

possible exam questions
IT architecture?

1. Identify and describe the four factors that are included in IT architecture.

2. Why is it important to have a cohesive IT architecture?

Name and describe the four factors that are included in IT architecture.

Possible Exam Questions
is architecture summary
IS Architecture Summary
  • Fulfills requirements specified by multiple clients.
  • Enables the design of a complex engineered system.
  • Enables consistent operational training.
is architecture importance
IS Architecture Importance

As technology enables powerful distributed systems in small packages to remote locations, some kind of structure is needed because without it you will have distributed chaos.

is architecture3
IS Architecture

There is no single architectural representation to build complex engineered products.

There are different ways to describe the same thing depending on a person’s position and responsibilities within an organization.

Executives view things differently than programmers.

important questions
Important Questions

Is it possible to build complex systems based only on functional specifications--what you want the system to accomplish?

Do owners (managers), designers (systems analysts) and builders (software developers) have the same perspectives, motivations, constraints and semantics regarding information systems architecture?

custom built products systems
Custom Built Products (Systems)
  • Minimal flexibility.
  • Long development lead times.
  • No interchangeable parts (data elements).
  • High maintenance costs.
  • A single product bears all of the development
  • cost.
architecture objectives
Architecture Objectives

1. Reduce erroneous assumptions.

2. Minimize risk.

By systematically developing a way to design and build complex engineered systems.


The final step of the systems development

process: the conversion to a live system

doing real work within the company.

The challenge is to accomplish this in the most efficient, least disruptive but cost-effective manner possible.

organizational change
Organizational Change

“IT increasingly changes jobs, skill needs, and

relationships. Technical change has become

synonymous with organizational change. Such

change can be complex, painful, and disruptive.

The people side of IT is often more difficult to

anticipate and manage smoothly than is the

technological side.”

Peter Keen

Author and IT Visionary

overcoming user resistance
Overcoming User Resistance
  • Involve as many people as possible in the process.
  • Make constant change part of the culture.
  • Tell everyone as much as possible about everything as much as possible, preferably in person.
  • Make liberal use of financial incentives and recognition.
  • Work within the company culture, not around it.
implementation process
Implementation Process
  • Acquisition
  • Development
  • Testing
  • Documentation
  • Training
  • Conversion
  • Maintenance
implementation activities
Implementation Activities
  • Possible Acquisition of Hardware, Software, and Services
  • Evaluation of these factors
  • Training
  • Testing
  • Documentation
  • Conversion

Evaluate and acquire necessary hardware and software

resources and information systems services. Screen vendor


The firm can evaluate a companies product or service by

submitting a RFP (request for proposal) or a RFQ (request for


Typically, large firms will put the proposal through a formal

evaluation process. This helps to reduce the possibility of

buying unnecessary or inadequate computer hardware or


evaluation factors
Evaluation Factors
  • Some hardware factors: performance, cost compatibility, connectivity, vendor support.
  • Some software factors: features/functions, language, integration compatibility, cost, documentation, other company successful use.
  • Some service factors: systems development, conversion, training, backup, accessibility.

Either deals with the internal development of application software or the acquisition of this software from vendors.

  • System testing involves testing hardware devices, testing and debugging computer programs, and testing information processing procedures.
  • An important part of testing is the production of prototypes of displays, reports, and other output.
  • It is important to involve end users in the testing stage to recognize errors, and to provide feedback.
  • Developing good user documentation is an important part of the implementation process.
  • An example of documentation is a manual of operating procedures and sample data input and output.
  • Documentation is extremely important when solving problems or making changes, especially if the people who developed the system are no longer with the firm.
  • IS personal must be certain that end users are trained to operate the new system or the implementation process will fail.
  • End users must be taught to operate the system and managers must be educated on how the new technology changes the business processes and authority and responsibilities of management.
  • Conversion from the old system to the new system can be difficult and even painful.
  • Four major methods include:
    • Parallel conversion.
    • Phased conversion.
    • Pilot conversion.
    • Plunge or direct cutover. (cold turkey)
major forms of conversion
Major Forms of Conversion

Parallel: both old and new systems are operated until IS team and management agrees to convert

Pilot: one department or work site serves as a tester.

Phased: only parts of the new system or only a few departments, offices, or plant locations at a time are converted

Plunge: direct abandonment of old system and conversion to new system.

is review and maintenance
IS Review and Maintenance
  • Post-implementation review is a part of IS maintenance where the new system is evaluated to be certain that the newly implemented system meets the system objectives established for them.
  • Maintenance involves monitoring, evaluating, and modifying of existing information systems to make needed or necessary improvements.

IS implementation involves acquisition,

development, testing, documentation, training,

implementation, and conversion activities that

transform a newly designed information system

into an actual system for end users.

possible questions1
Possible Questions

1. What is the biggest challenge in IS implementation? What can be done to make implementation easier to deal with?

2. What factors could dictate a “cold turkey” implementation approach?

  • It is necessary to thoroughly and systematically go through each activity to have a successful implementation.
  • Although each activity may be time consuming or costly in the short run, in the long run it should be beneficial.
  • After the implementation process, it is important for the company to keep up with systems maintenance; this includes the post-implementation review process.
an industry perspective
An Industry Perspective

For all of the reasons that we have discussed during this quarter, companies need and want IT-based solutions to their requirements and they want them quickly and economically.

In addition to hardware and software vendors there are an increasingly large number of companies that offer computer-based solutions in a number of different ways.

it based solution providers
IT-based Solution Providers
  • Consultants
  • Systems Integrators *
  • Internet Service Providers *
  • Network Service Providers
  • Application Service Providers *
  • Outsourcing Companies

* Will be specifically addressed in this presentation

It is difficult, if not impossible, to make a clear distinction as to the difference between many of these companies.

systems integrator
Systems Integrator

A company that on a contract basis will design and implement a system for another company. This could be a completely new system or an integration of existing systems.

A typical description: A systems integrator and solutions provider specializing in full life cycle application development, testing, maintenance and project management utilizing relational and object technologies.

systems integrators
Systems Integrators

1. Have specific technical expertise and/or an industry


2. Focus on a specific part of the US or are national and

international operations.

3. This also indicates that there are small, medium and

very large companies in this business.

ibm global services
IBM Global Services

The world’s largest computer services company.

Based on our classifications this operation can be called a consultant, a systems integrator, an application service provider and an outsourcer.

ibm global services1
IBM Global Services
  • Business Innovation Services:
    • Business Intelligence Services
    • Custom systems integration services
    • Customer relationship management (CRM) services
    • Digital branding and marketing
    • e-business strategy and design consulting
    • e-commerce services
    • Enterprise resource planning (ERP) services
    • Knowledge management services
    • Merger and acquisition services
    • Procurement services
    • Security and privacy services
    • Skills development services for e-business
    • Supply chain management services
    • Web application development
ibm global services2
IBM Global Services
  • Integrated Technology Services:
    • Business continuity and recovery services
    • e-business infrastructure services
    • Information technology consulting
    • Infrastructure & systems management services
    • IT consolidation services
    • IT product training
    • Midrange express services
    • Networking & connectivity services
    • Technical support services
    • Total systems management services
ibm global services3
IBM Global Services
  • Strategic Outsourcing Services:
    • Application management services
    • Data center outsourcing services
    • Desktop outsourcing services
    • e-business hosting services
    • Network outsourcing services
divisions of large corporations
Divisions of Large Corporations

TASC, Inc., a division of Litton Industries and a leading information systems integrator, announced today that it has formed an alliance with Eigner + Partner, a pioneer in the development of engineering software products, to jointly provide Product Data Management (PDM) solutions to the aerospace and defense industries in North America. The alliance offers customers in these industries access to Eigner+Partner's world-class e-Engineering software and Litton TASC's best-of-practice implementation services.

government services inc
Government Services, Inc.
  • A world-class telecommunications information systems
  • integrator:
    • LAN/WAN implementation, management, and support
    • services
    • Help Desk and Network Management services
    • Video Teleconferencing services
    • Software Engineering services
    • Supporting DISA and the nation's war-fighters with
  • global network implementation, management, and
  • consolidation services
    • Prime contractor for the much acclaimed ADTN2000
  • service for 60,000 customers throughout DOT
application service provider
Application Service Provider

Online Application Support

An international provider of financial and practice management products and solutions develops one of the only ASP dedicated exclusively to the legal industry.

ELF, currently used by more than half of the top 100 law firms in the United States, created a security-rich Web-based data center to help support legal applications and services via unprecedented single point access. The Web site, named Serengeti, offers a full range of solutions from the leading providers of legal software and services to help improve the handling of legal matters by leveraging the power of the


application service provider1
Application Service Provider

Online Purchasing Services

With giants such as Ariba Inc. and Commerce One Inc. dominating the high end of the E-procurement applications market, smaller vendors of online purchasing services are

targeting small and midsize businesses and gambling on alternative business models.

internet service provider1
Internet Service Provider

A logical definition of an ISP is that it provides basic Internet access, web hosting and related services and private networks for both data and voice.

While they may provide some application support the primary focus is providing Internet access and support.

possible exam questions1
Possible Exam Questions

1. What is a systems integrator and under what

circumstances would a company feel that it is

appropriate to use these services?

2. Contrast an ASP and a systems integrator with an

outsource company in terms of the basic objective of

each of these business models..

key terms
Key Terms

Applications Portfolio

Change Management

Computer-Aided Planning

Computer Industry

Conversion Methods


End User Involvement

End User Resistance

Evaluation Factors



IS Services

External IS Services

Information Systems Planning




Information Technology Architecture

Organizational Planning Concepts

Planning Methodologies

Business System Planning

Critical Success Factors

Scenario Approach

Strategic Opportunities

System Testing

Systems Maintenance

emerging leadership strategies and complex change
Emerging Leadership Strategies and Complex Change

Emerging leadership strategies

  • Strategy for communication
  • Strategy to build integrity and trust
  • Strategy for creating relationships
  • Strategy for change
  • Strategy for teamwork
  • Strategy to grow leaders
  • Strategy for building a world-class organizational culture
  • Strategy for risk-taking –Strategy for creating and implementing a shared vision
building an exceptional team
Building an Exceptional Team
  • The five values of a strong corporate culture:
    • Integrity: be a living example of your leadership values
    • Accountability: do what you say you will do- build trust through personal responsibility
    • Diligence: work hard, set a good pace, complete projects on or before deadlines
    • Perseverance: overcome obstacles while maintaining a positive and enthusiastic attitude
    • Discipline: do all of these things, every single day
what builds up a team
What builds up a team
  • Encouragement – fostering new ideas…soliciting input
  • Shared values, shared vision – working for toward a common goal
  • Clear communication – using consistent methods for keeping everyone informed
  • Ownership – everyone on the team feels connected and engaged