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Chapter 10
IS Implementation Risk
Risk Components
• Magnitude of loss
• Likelihood of loss
• Exposure to loss
Management of Risk
• Control
• Information
• Time
IT Project Risk
• What is loss with respect to IT projects?
– Failure to gain anticipated benefits because
of implementation difficulties
– Higher than expected implementation costs
– Longer than expected implementation time
– Technical performance below expectation
– System incompatibility
Project Dimensions Influencing
Risk
• Project size
• Experience with technology
• Project structure
Mythical Man Month
• IBM 360 Operating System – Brooks
• Adding people to a late project only
makes it later
– partitionable tasks
– communication and coordination costs
Low Structure/Information
Requirements
• The problem of communicating
requirements
• Exponentially greater cost of fixing
errors that occur early in the system life
cycle
Contingency Approach to Project
Management
•
•
•
•
External integration
Internal integration
Formal planning
Formal control
External Integration
Techniques
Aimed at resolving requirements
uncertainty
• User project manager
• User steering committee
• User approval process
• Joint Application Design (JAD)
• Prototyping for requirements
determination
Internal Integration
Techniques
Aimed at resolving technical design uncertainty
• Selection of experienced IT team leadership
• Frequent team meetings
• Co-location
• Technical status reviews and updates
• Maintain low team turnover
• Import outside technical expertise
Formal Planning Tools
•
•
•
•
Project Management Software
PERT CPM
CMM process conformity
Use of defined development
methodology
• Project Office
Formal Control Tools
• Status-versus plan reports
• Change control and configuration
management
• Milestone reviews
Portfolio Risk
• Consequences of no risky projects
• Consequences of a majority of risky
projects
• Strategic quadrant - Support, Factory,
Turn-around, Strategic
New IS Effects
• How do new Information Systems change
work?
–
–
–
–
–
–
New tasks, new processes
New communication patterns
New political relationships
New technology to learn
New skills valued
Others?
• People in an organization may resist the
implementation of a new IS
Cost of Implementation Failure
• Standish Group study (1995) found that:
– 16.2% of IT projects successful
– 52.7% of IT projects challenged
– 31.1% of IT projects impaired.
• Numerous projects resisted after having been
declared successful (Krasner 2000).
• Apparent belief among MIS researchers that
user resistance contributes to project failure.
Conceptualization of Resistance in
Acceptance Studies
Study
Acceptance conceptualized as
Resistance
Cooper and Zmud (1990)
Routinization and infusion.
No reference made
Davis (1989)
Initial decision to use
Davis, Bagozzi, and Warshaw (1989)
Usage
Harrison, Mykytyn & Riemenschneider
(1997)
Usage
No reference made
Joshi and Lauer (1998)
Usage
Study motivated by resistance to system
implementation.
Karahana, Straub and Chervany (1999)
Usage – short and long-term
Study motivated by the need to understand
resistance to system implementation
Mathieson (1991)
Use of IT innovation
No reference made
Morris and Venkatesh (2000)
Usage – Short and Long term
No reference made
Riemenschneider, Hardgrave and Davis
(2002)
Intention to use
Study motivated by resistance to system
implementation.
Venkatesh (1999)
Usage
No reference made
Venkatesh and Davis (2000)
Usage
No reference made
Venkatesh and Morris (2000)
Usage – Short Term and Long Term
No reference made
Study motivated by the need to understand
resistance to system implementation
Study motivated by the need to understand
resistance to system implementation
Definitions of Acceptance and
Resistance
• Acceptance – the act of receiving IT use
willingly (Saga and Zmud 1994).
• Resistance – action or intentional
inaction that opposes or sidesteps the
implementation of new information
technology.
Resistance Tactics
Type of
Resistance
Resistance
Tactic
Description
Active
Voice
Individuals voice their concerns and
opposition
Active
Exit
Individuals leave the organization
unwilling to adapt to the new
system
Active/Passive
Sabotage
Individuals make concerted efforts
to ensure the failure of the system
Passive
Footdragging
Individuals restrict their work
output
Passive
Withdrawal
Individuals withdraw their
commitment and mental effort
Passive
Workaround
Individuals find ways of working
around the system
Passive
Grudging
Acceptance
Individuals go along with the
system, but with a grudge and
continuing to look for a way out
Mandatory vs. Voluntary Usage
• Degree of acceptance makes sense for
voluntary systems. Does resistance to
voluntary systems make sense?
• For mandatory systems, how would
grudging acceptance be classified?
Change in Resistance over Time
• As alternative forms of resistance are
prohibited, different forms may be tried
– Voice  Work around  Sabotage or Exit
– Voice  Work around  Grudging acceptance.
• Resistance may be constructive and
disappear if reasonable suggestions are
heeded.
Passive Resistance
• How frequently do passive forms of
resistance manifest?
• Problem of passive resistance and using
intention to accept as the definition of
system success.
• Effectiveness of passive resistance.
• Passive resistance and plausible
deniability.
Resistance Can Be
Contagious
System
Implementation
(From
Acceptance
Viewpoint)
Failure
Mutiny
(2)
Success
(4)
Rebel
(1)
Coup
Subversive
(3)
ILLUSORY SUCCESS
Active
Passive
Resistance Type
Definitions of Acceptance and
Resistance
• Acceptance – the act of receiving IT use
willingly (Saga and Zmud 1994).
• Resistance – action or intentional
inaction that opposes or sidesteps the
implementation of new information
technology.
Some Interpretations of
Resistance
• Resistance is pathological.
• Resistance as an impediment to
legitimate management initiatives.
• Resistance is a risky activity for the
resistor.
• Resistance is a means to preserve
personal integrity and self-esteem.