Implementing IT Systems

Running Head: CHALLENGES IN IMPLEMENTING INFORMATION SYSTEMS

Challenges in Implementing Information Technology Systems

A Comprehensive Review and Test of Professional Literature

Steven Mairs

Candidate for Master in Public Administration 2009

Walden University

MMPA-6300-006/ PPPA-8800-006 Strategic Management of Information

Instructor: Dr. Hossam Banna

Literature Review 2

Abstract

This is a comprehensive literature review of the possibilities, challenges, and unmet

promises of implementing information technology (IT) systems at home and abroad. The scope

of this review includes issues of IT systems implementation in the areas of business, healthcare,

and government and looks at similarities and differences in challenges encountered when

implementing new systems internationally and domestically. The two-fold objectives include

identification and memorialization of the current status quo as well as presentation of a compact

array of considerations to guide future IT implementation projects. To that end, it is also hoped

that this review will help point the way forward for future research.

Articles were selected from peer-reviewed journals to maintain high standards of the

information selected for review and evaluation. An attempt has been made to address apparent

conflicts of information and to reconcile these differences wherever possible. Due to the nature

of information technology toward rapid change, only articles published subsequent to 1998 are

reviewed as it is anticipated this would be the most relevant and efficient use of limited space

and time. Rather than providing an analysis of statistics and methodology, this review is

designed to present a snapshot of where IT systems implementation is, a cross-section of what

challenges have been encountered thus far, with an eye toward improving prospects for

anticipating future obstacles.

Introduction

System Implementation Promises and Challenges

As pointed out in Walden University‟s Study Notes for its graduate course Strategic

Management of Information, “Information systems are often used to coordinate activities and

decisions across entire organizations and even across entire industries and sectors of [the]

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national economy” (MPA 6300, 2008, wk2). IT systems are transforming business and

government. According to Kenneth and Jane Lauden, “In 2007, more than 40 million businesses

had dot-com Internet sites registered” (Lauden, 2009, p5). Organizations are embracing

information systems because they give them competitive advantages. IT systems have enabled

numerous warehousing efficiencies such as just-in-time inventory and service delivery

advancements, created markets for new products and services, created a fertile environment for

new business models and made it possible for previous unimaginable customer and supplier

intimacy. As Lauden asserts, “Information systems enable globalization….one of many tools

managers use to cope with change” (p7/15).

Two clichés come to mind which should inform managers eager to jump on the IT

bandwagon: Things may be easier said than done and not all that glitters is gold. That is to say,

despite the storied promises of information systems such as increased accuracy, efficiencies,

productivity gains, and quality improvements, numerous obstacles exist to the successful

implementation of new information systems. The varieties of challenges presented by new

systems expose administrators and the organizations they lead to risks which include

disappointing product performance, time delays, and unexpected cost overruns associated with

their implementation. Some of these obstacles may be avoidable. According to Lauden, “The

best solution is one that can be implemented” (Lauden, 2009, p20). “Managers who don‟t

understand emerging innovations may place their careers and their organizations at risk” (MPA

6300, 2008, wk4)

My own experience assisting the implementation of a new „off the rack‟ IT system for the

US government in an African country would seem to support this. A Foreign Service national

and USG employee who had taken an early interest in a new property management application

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had been involved during the selection process. This individual was unhappy with the system

ultimately selected by the agency. Yet, as the local systems manager, he was the key liaison

assigned to work with me during the new system‟s implementation at the mission. He resisted

and obstructed implementation of the new system at every opportunity and wasted valuable time

discussing options which no longer existed. He contaminated the thinking of other individuals

involved which resulted in sharply limiting of the features ultimately exploited. His lack of

support and key position within the mission seriously eroded the potential for the system to

enhance security of the database and property it was designed to manage. Of the twelve related

projects I was involved in between February 2001 and November 2005, no less than three of

them (or 25%) involved some form of internal resistance. The only one in which I experienced a

complete failure of implementation was when the project lacked real administrative support.

(Mairs, 2008)

In addition to the predictable expenses associated with purchasing software licenses,

computers and peripheral hardware on which they operate, and training operators in the proper

use of these systems in order to realize their potential, unanticipated obstacles are more likely

than not to erupt and negatively impact their implementation. Database compatibility problems

may inhibit importation and conversion to new systems and unexpectedly require a mountain of

data entry work. Organizational resistance to change may result in resistance running to internal

sabotage. Unanticipated database security threats may be introduced requiring an entire other

layer of system implementation.

Manifestations of this nature have occurred across all sectors and around the world. In the

public sector, there is a surge in digital government, or Jane Fountain calls, “the virtual

state…government in which decision makers increasingly use information technology (IT) in

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ways that blur the boundaries among agencies, levels of government, and the private and

nonprofit sectors” (Fountain, 2008). These challenges appear to be a universal fact of life for

modern managers and administrators and this reality is likely to continue for years to come as we

are only at the dawning stage of the information age. Can astute managers do a better job of

handling these challenges?

A survey of peer reviewed articles on the subject and this researcher‟s professional

experience in implementing new systems worldwide suggest there are many steps which

organizations can take to address and better prepare for these inevitable challenges. This research

project will survey systems implementation experiences across an array of organizations and

attempt to synthesize the information gathered with an eye toward producing guidance for

administrators likely to face similar challenges.

Theory and Evidence

Community and Government - Domestic

If evidence is required that digital government is growing, one need look no further than

evidence cited in Jane E. Fountain‟s article, “The virtual state: transforming American

government?” Fountain discusses the changing role of information technology at the federal,

state, and municipal levels of government and examines how innovative governments are

expanding uses of the Internet in delivering services and realizing cost savings as well as some of

the challenges posed by the promise of the virtual state. She makes a strong case by identifying

significant benefits and possibilities. Benefits of digital government, what Jane Fountain calls,

“the virtual state” include “government in which decision makers increasingly use information

technology (IT) in ways that blur the boundaries among agencies, levels of government, and the

private and nonprofit sectors” (Fountain, 2008, p241).

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In 1999, G. David Garson divided the theoretical frameworks of e-government into what

he views as four main areas: decentralization and democratization, normative and dystopian,

sociotechnical systems and global integration theories” (Garson, 2008, p116). Respectively,

these frame various views of e-government ranging from highly optimistic expectations for

potential technological advances in government including the potential for using technology for

improving the linkage between people and their government and far less optimistic perspectives

which emphasize the potential for conflict and failure associated with implementation of IT

systems. Perhaps some amalgamation of these areas accurately characterizes the realities faced.

Consider, for example, the following: When examined through the prism of the traditional

bureaucratic model of public-service delivery, the Weberian model which relies on

“specialization, departmentalization, and standardization ….to ensure that all citizens are treated

equitably with the utmost efficiency” (p117). Within the fast breaking world of e-government,

this traditional approach is under assault on two fronts: the reinventing-government paradigm

aims at deconstructing its core focus of centralization and the digital divide currently renders

equitable treatment of citizens unattainable.

Nevertheless, as Shannon Schelin asserts in her E-Government Overview, “The public

sector has been engaged in the information-technology revolution and the continued investment

and support of these efforts is imperative” (Garson, 2008, 124). Schelin‟s assertion could

reasonably be extended to include all sectors. Schelin points to evidence that “governments are

mandated by citizen and business demands to operate within new structures and parameters

precipitated by information technology” (p116). This view is somewhat offset by normative-

dystopian theory of e-government which recognizes and anticipates continuing high rate of

conflict and failure associated with implementation of IT applications.

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Some of these are self-propagating such as the failure to integrate special education

population into student information systems as described in John Waters‟ 2008 article appearing

in THE Journal which discusses the exclusion of special education files from these databases due

to their non-standardized format. Waters quotes Chula Grabowski whose remarks are rich with

information about the multidimensional challenges we face, “It might seem obvious to say it, but

just integrating these two systems doesn't mean you'll get the special education teachers to

embrace the system. My advice is to start with the willing, build the population of people who

are going adopt the system and advocate for it, and let the momentum work. And remember,

these are teachers, not computer people, so don't expect them to love the technology for its own

sake. Show them how it will help them to do a better job helping students" (Waters, 2008).

The challenges faced don‟t stop there. Research by Darrell M. West examined content of

e-government websites to investigate whether they are effectively exploiting interactive features

of the World Wide Web to improve service delivery, democratic responsiveness, and public

outreach. Through a comparative analysis of 23 participating states, West looked at state budget

expenditures on IT from 1998 to Y2K, the e-government content offered between Y2K and

2001, democratic outreach and responsiveness and citizen use of e-government and its impact on

trust and confidence in government. He establishes that “most states are putting a rather small

but stable percentage of their overall budget into information technology” (West, 2004, p24) and

points the way toward realizing its transformational potential, “officials need to rely on models

that emphasize integration, functionality, and democratic enhancement. They must take on a

vision of e-government that moves beyond service delivery to overall performance.”

In addition, data is considered from a national public opinion survey which examined the

ability of e-government to influence citizen views about government and their confidence in the

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effectiveness of service delivery. The article rests on Web site content and public assessments

and argues that the e-government revolution has fallen short of its potential to transform service

delivery and public trust in government. At the same time, the article acknowledges the

possibility of e-government to enhance democratic responsiveness and boost belief that

government is effective. West identifies and groups observers of the IT phenomenon into two

major categories: transformationalists and incrementalists which he defines in the following

passage, “Transformationalists often predict widespread consequences arising from new technology,

while incrementalists note the constraining influence of social, economic, and institutional forces on the

ability of technology to alter behavior” (West, 2004, p15). As a result of his research, he concludes,

“digital government has the potential to transform service delivery and citizen‟s attitudes” (p24)

although he frequently retreats to the incrementalists‟ position.

West points to some compelling examples supporting the incrementalist argument, but I

believe one of these goes too far in boldly predicting that, “internet technology will not transform

democracy” (West, 2004, p16). West also cites Chadwick‟s finding that, “government

websites…[tend] to be „non-interactive‟…and concludes that e-government is not likely to

reshape governance” (p17). I disagree. One need look no further than the impact technology has

had on fundraising, voter registration, and viral email has had on the fortunes of various

candidates during the last two Presidential elections to see that change is in the air.

In his book, Hope Unraveled, Richard Harwood concludes that our democracy has been

fundamentally changed already by the chronic onslaught of materialism and consumerism which

were profoundly accelerated during the past three decades under the mindless free-market battle

cry of “business good; government oversight bad”. His fifteen years of research led to what

Harwood defines as a breakdown in community and basic values; people loosing faith in the

American dream, and their subsequent retreat from their responsibilities as citizens. The

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cynicism Harwood identifies was wrought by in-transparency in lawmaking and budget activities

and correlates with efforts to reelect incumbents and improve conditions for our corporate

citizens at the expense of „we the people‟. Why is this relevant to IT systems implementation? I

believe that internet technology sometimes provides a faint lifeline which preserves the vestiges

of community for many Americans today.

West advances a model which identifies four general stages of e-government which he

labels as:

1. the billboard stage, where officials treat government websites much the same

as highway billboards

2. the partial service-delivery stage, where citizens can order and execute a

handful of services online

3. the portal stage with fully executable and integrated service delivery, a one-

stop government portal with fully executable and integrated online services

4. interactive democracy with public outreach and accountability enhancements,

a host of features designed to boost democratic responsiveness and leadership

accountability (West, 2004, p17)

West‟s model can serve as a helpful beacon.

Community and Government - International

Some of the aforementioned conflict emanate from disagreement over which applications

to implement. Rocheleau found in 1994 that “there could be conflicts over purchasing even if

there were consensus on what type of technology to use” (Garson, 2008, 54). This observation is

born out in this researcher‟s personal experience with implementing IT systems in developing

countries as well as research conducted by Krishna and Walsham which examined and reported

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on a series of projects implemented in the state of Andhra Pradesh in India. Fountain pointed to

the cost savings realized by the Postal Rate Commission as a result of digitally disseminating

information needed to review postal rate increases thus saving time and millions of pages of

paper. But after reading Krishna and Walsham‟s report, trying to change an arguably lethargic

bureaucracy may be one of only a few major overlapping challenges in the implementation

process encountered by both developing and developed countries – at least for the time being.

The two successful cases Krishna and Walsham reported on are analyzed and primary

factors in their success are discussed. These cases and the factors credited for their success are

contrasted with information system projects implemented in developing countries. Among those

factors are the economic realities faced by developing countries. Beyond the obvious limitation

in available dollars to fund acquisition of hardware and application software, another significant

layer is the impact implementation has on people and employment: jobs are scarce and therefore

jettisoning staff who obstruct change can have far reaching impact on that staff‟s family. Factors

such as this contribute to slowing down the wheels of change more than we can imagine in the

West.

Other considerations required for success of IT projects in developing countries are also

vetted by the authors. Political leadership is identified as perhaps the single most important

factor for success. As well, the authors discuss some of the political realities of India as a

developing country and why it is difficult for a supportive political leader to stay in office long

enough to see implementation of an IT project through.

Sustained efforts needed for public [IT] initiatives have to be undertaken in a background

of constant changes in the social and political environment, and these may not remain

supportive over extended periods of time needed to develop large systems. Chief Minister

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Naidu was able to maintain the development in this context through a combination of

capable efforts and fortuitous circumstances. (Krishna, 2005, 129)

Both researched projects involved IT systems implemented with multiple benefit to average

people in India. The first, a pilot project identified as the CARD (for Computer-Aided

Administration of Registration Department) was designed to digitize and expedite the

registration and transfer of land and other real property for a single jurisdiction. The second,

known as e-Seva, was designed to consolidate utilities billing and payments through a single

clearing house. Both were implemented to save time and to circumvent notoriously corrupt

systems previously in place and, at the very least, opened my eyes to a previously unrealized

possible benefit of IT systems; as a potentially powerful tool against entrenched corruption.

Business

According to the Study Notes accompanying Walden University‟s graduate course,

Strategic Management of Information, “Information systems are the foundation of conducting

business today. In many industries, survival and even existence is difficult without extensive use

of information technology” (MPA 6300, 2008, wk 1). Lauden identifies the following six

objectives for information systems: operational excellence; new products, services, and business

models; customer/supplier intimacy; improved decision making; strategic advantage; and

survival (Lauden, 2009, p22). To these I would add security. “A report from Javelin Strategy &

Research revealed that more than 75 percent of the customers it surveyed would not continue to

shop at stores that had victimized by data theft” (p264). Relevant emerging applications include

enterprise systems, customer relationship management systems, collaboration, knowledge

management and communication systems. Even after successful implementation, IT systems do

not represent a pure panacea of increased efficiency for business and government. E-mail is a

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good case in point. The mushrooming increase in volume of emails received is recognized as a

personal and professional time drain. In his editorial appearing in MIS Quarterly, Ron Weber

states, “In my view, the externalities associated with e-mail use at times result in serious market

failures. Designing mechanisms that will provide incentives for e-mail users to engage in

behaviors that lead to improved social-welfare outcomes provides some challenging problems”

(Weber, 2004, xii) .

Weber advocates further study on the impact of e-mail as well as exploration of ways to

better manage e-mail and assisting users in dealing with the problems it presents. Weber

establishes that we are spending increasingly more time processing email - suggesting we may

spend as much as 100 minutes each day. If his visceral estimate is anywhere near accurate, it is

easy to see why an organization with fifty thousand employees might be interested in further

study of the impact of an activity which consumes five million minutes of employee time each

day. In addition to being a black-hole of time consumption, email also represents a source of

security and liability risk. There are relatively new requirements imposed by the justice

department on organizations to preserve these documents for use in possible future audit or

investigation.

Enterprise systems represent an important new dimension in the world of business

applications for IT. “Enterprises systems integrate the key business processes of a firm into a

single software system so that information can flow seamlessly throughout the organization,

improving coordination, efficiency, and decision making” (MPA 6300, 2008, wk8). They are

taking the collection and management of information to previously unheard of levels by

integrating legacy and other software modules into a common central database.

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In Managerial Considerations, Hugh Watson and Barbara Haley empirically review the

pros and cons of decision-support applications such as digital data warehouses. Such

undertakings are both challenging and expensive but they found as far back as 1998 that, “most

large organizations have either built a data warehouse or are at least thinking about doing so”

(Haley, 1998, 32). Watson and Haley identify the rationale for undergoing such expense and

applying the necessary effort as follows: 38% of the respondents indicated having better access

to information, 21% better and more accurate information, and 20% a single source of data

(p34). Interestingly, they also point out that 48% of their warehouses were sponsored by IT

[departments] and 4 l% had a senior executive or functional area manager as the project sponsor.

The article cites multiple sources of organizational resistance and implementation

challenges. Perhaps the richest assertion is contained in the following quote:

In a survey of 111 data warehousing organizations that consider their initiative either an

up and coming system or a runaway success, the most important factors for successful

implementations were organizational in nature. Strong management support and adequate

corporate resources were found to have the strongest relationships with success, because

these factors worked to overcome political resistance in the organization, address change-

management issues, and increase organization-wide support for data warehousing.

IT systems are ushering in new products, markets, and business models as well. Such changes

have devastated some traditional industries such as photographic film manufacturers like Kodak

and the traditional travel agent. Some of which have escaped economic annihilation by adapting

to the changing demands. “The biggest distinction in the new digital organizational paradigm is

the concept of electronic money” (MPA 6300, 2008, wk9). Another driver of significant change

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are decision-support systems (DSS) which assist managers today in evaluating complex arrays of

variables and considerations to improve decision making.

Healthcare

The realm of health care service is another potential beneficiary of further reliance on IT

systems implementation. While not a complete solution to all that ails today‟s health care system,

the increased efficiencies surely would help. Fortunately, the potential in this arena goes beyond

reducing billing costs. A case study on the implementation of computerized pharmacy services

demonstrates the benefits of such an IT application in providing state of the art medical care to

smaller rural communities in Eastern Wisconsin. “Telemedicine is a new and creative strategy

that health care organizations are using to provide improved patient care while simultaneously

decreasing health care costs” (Brierton et al, 2008, 1464). Smaller hospitals struggle to have

highly skilled critical care professionals onsite 24 hours a day. Brierton et al discuss the

implementation of remote pharmacy services in a 13 hospital system. They report that the

“system resulted in provision of consistent pharmaceutical care while minimizing costs”.

Implementation of the project was not without challenge. Because conformity within the

system was not 100%, remote pharmacy staff had to be trained on both the remote pharmacy and

traditional software systems. Other implementation disparities surfaced as well. For example,

remote pharmacists were authorized to review requests and issue recommendations which they

did, but their remote location prevented them from measuring compliance with their

recommendations. Nor was a methodology established for doing so. “The documented data

indicate that at least 78% of recommendations [had] been implemented” (Brierton. 2008, p1467).

The project resulted in empirical evidences of success such as:

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Between April 1, and June 30, 2007, the total calculated drug cost saving related to

remote ICU pharmacist recommendations was $121,966

While industry standards stipulate that pharmacy orders be entered within 90 minutes, of

13,338 medication ordered during the study period, the mean time to completely process

orders was 24 minutes

The reach of IT in medicine does not stop at remote pharmacists. Physicians are employing

clinical decision support applications and computerizing orders. Data warehousing is now being

employed in the area of nursing management. Hospitals are exploring radio frequency

identification applications – the same technology that will soon enable us to pick up products in

retail stores and walk out the door without stopping at a cash register or making an appearance

on a police blotter because the product and our credit card can be scanned from yards away.

Another area where the IT world and medicine are merging can be found in biomedical

imaging. While offering promising treatment improvements and alternatives, this technology is

subject to many of the same threats of malicious software which have plagued the larger

computing industry. Security threats such as intrusion and worms and virus attacks are among

these. While biomedical imaging is adopting the computing industry‟s best practices for dealing

with these threats, some of these practices are objectionable within the medical industry and

others present new dilemmas.

Conclusion

IT has the potential to substantially redistribute power, improve decision making by

reducing error, and reduce costs through improved productivity and efficiency but significant

obstacles remain. Database compatibility and conversion conflicts are common as is the chance

of internal organizational resistance. In fact, organizational and human resistance to change

Literature Review 16

sometimes rise to the level of willful sabotage of the implementation process. Unanticipated

expenses can result in substantial cost overruns which themselves present other risks which may

appear in the form of:

Training cost overruns

Software and hardware performance failures

Administrative failure to fully exploit features of an application

The introduction of previously unheard of security threats

Sharp-bordering-on-shocking contrasts in cultural values and priorities

Even successfully implemented IT systems do not represent a pure panacea of increased

efficiency for business and government. E-mail is a good case in point. The mushrooming

increase in volume of emails received is recognized as a personal and professional time drain. As

Ron Weber pointed out in his editorial appearing in MIS Quarterly, “the externalities associated

with e-mail use at times result in serious market failures. Designing mechanisms that will

provide incentives for e-mail users to engage in behaviors that lead to improved social-welfare

outcomes provides some challenging problems” (Weber, 2004, xii). Nevertheless, the potential

for IT systems to speed integration and delivery of products and services, increase efficient use

of shrinking resources, and to level the playing field between large and small organizations,

developing and developed countries plus other benefits compel organizations into this dynamic

arena. The alternative is less attractive than these risks.

Lessons learned in the Krishna study may be appropriately extended to guide other

implementation programs and could help minimize or avoid these risks. They can be summarized

as follows:

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Attention must be paid to details and to the multiple groups involved with the

implementation project

An innovative approach must be taken toward reconciling the new system with existing

organizational structures

An inclusive people-orientation must be maintained during the system selection period

and throughout these projects

Persistent effort is required over realistic timelines – IT systems implementation often

requires significantly more time than anticipated

IT projects must be backed by committed and knowledgeable leadership

Clearly, significant obstacles to successful implementation remain. Chief among these is the

frequent failure of business and political leadership during implementation of these systems –

much of this due to a lack of knowledge and understanding about the systems themselves.

Another area of major challenge involves cross-cultural implementation. Many of the same

difficulties which beset cross-cultural collaboration can also effect IT system implementation or,

as the Captain of Road Prison 36 put it in the 1967 Hollywood film Cool Hand Luke, “What

we‟ve got here is failure to communicate” (Carroll, 1967). Given the tremendous gains in

accessibility to more information afforded by IT systems, this may seem counter intuitive on

some levels, but it nevertheless warrants the attention of administrators involved in such efforts.

A succinct summation can be found in the Study Notes for Strategic Management of

Information, “Information systems are sociotechnical and are part of the organization. A new

information system changes the way the organization operates. Successful organizations choose

to change their structure and operations over time. They choose information systems designed to

mirror the organizational change and to serve it” (MPA 6300, 2008, wk11).

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Possible Area for Further Study

Beyond merely filling in the many blanks that exist in this area of study, the future roles

of IT systems may lie beyond our current capacity to imagine or comprehend. For example, IT

may even have the potential to replace, postpone, or heal the lost sense of community identified

by sociopolitical observers such as Richard Harwood and Robert Putnam discuss within their

research on this phenomenon. As is often the case in life, strength in one area can turn out to be a

weakness. I believe the reverse may also be true. Just as a faint ray of hope might sustain an

individual trapped in a collapsed building or mine shaft for longer than believed possible, the

faint vestige of human connection felt by a lone individual who has access to the internet might

sustain what remains of the „social contract‟ Jean Jacques Rousseau wrote about in 1762 long

enough for change to come.

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References

Brierton, D. G., Iglar, A. M.,. Meidl, T. M., Woller, T. W. (August, 2008). Implementation of

pharmacy services in a telemedicine intensive care unit. American Journal of Health-

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Mairs, S. D. (Personal recollection as a property management specialist for USAID, 2008).

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Contact: P.O. Box 297, Readfield, ME 04355 USA. E-mail: stevenmairs@yahoo.com

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