Struggling with information systems

 

Welcome back, 

This week’s topic is why do companies often struggle with information systems implementation.

The sources I used were class notes, and websites included – www.accounting seed.com, World press and www.lemonlearning.com

Information system is a set of interrelated components that collect , process, store and distribute information to support decision making and control in an organisation.

I found this link useful:

https://study.com/academy/lesson/implementation-of-an-information-system-in-business.html

Unmet requirements,  a desired feature that the company wanted but can’t be supported, this could be due to lack of preparation carried out during the selection process of the new IT system. If software can’t perform the desired requirements company is wasting money investing in information systems. Example of this was outlined in Lidl, when Lidl already having 90 different In house solutions wanted to minimise this to 1 by implementing a new system SAP which is based on inventory on retail prices rather than purchase price which Lidl would of preferred, Lidl tried to adapt the software to suit their needs but was unsuccessful.

Not enough budgeted, infomation systems require a large amount of investment, many fail due to their budget not been accurate, along with poor financial management can become too expensive to handle and it is abandoned leading to waste of money and no return on investment. Example of this occurred in Hilton Hotels when they implemented a system that allowed customers to confirm reservations for hotel bookings, after 4 years of investing up to 125 million dollars the project crumbled and company missed the deadline by 2 years.

Change,  Information systems are difficult to arrange poor change can result in failures due to lack of communications in an IT implementation the employees are facing new processes and new ways of caring out their work. They also might be required to learn new skills which can take away from their working time causing tension.  Implementation needs to take priority in work place for it to be a success. Example of this is in Nike, they spent over 400 million on setting up a new ERP system to replace an old system and help them improve, they rushed the implementation of this new system and this resulted in an improper setting up and transformation of the data.

Chat Soon,

Katie😄