A new framework for managing IT-enabled business change

Abstract. Although information systems and technology (IS/IT) investments have always caused varying degrees of business change, the main purpose of many of today's IS/IT implementations is to change the business and/or organization in some significant way. However, most organizations' approaches to managing IS/IT developments have changed little in the last 15–20 years and are heavily dependent on methodologies of IS/IT development and associated project management principles. The philosophy being adopted by many organizations today is that there are few IS/IT projects (some infrastructure investments only) that do not cause business changes and therefore they are really 'business projects involving IS/IT'. This exploratory research set out to devise a new framework for 'IT and change' management, which is more appropriate to today's realities than traditional approaches. The initial framework was derived from 'first principles', then adapted and further developed by applying and testing it in a range of real projects in organizations. This paper summarizes the results of that work.     

Real options analysis of the timing of IS investment decisions

Many information systems (IS) investments belong to a class of capital budgeting problem where there is an option: the investment may be made straight away or delayed for some period. A real options analysis could allow decision-makers to add value to these investment decisions by providing a framework that explicitly recognises uncertainty. This paper uses options pricing theory to determine the optimal timing of IS investments and to explore the effect of different investment review cycles. The findings provide support for the common industry practice of demanding short payback periods for IS investments.     

Four integration patterns: a socio-technical approach to integration in IS development projects

This paper aims to contribute to a theory of integration within the field of information systems (IS) project management. Integration is a key IS project management issue when new systems are developed and implemented into an increasingly integrated information infrastructure in corporate and governmental organizations. Expanding the perspective of traditional project management research, we draw extensively on central insights from IS research. Building on socio-technical IS research and software engineering research, we suggest four generic patterns of integration: big bang, stakeholder integration, technical integration and socio-technical integration. We analyse and describe the advantages and disadvantages of each pattern. The four patterns are ideal types. To explore the forces and challenges in these patterns, three longitudinal case studies were conducted. In particular we investigate the management challenges for each pattern. We find that the patterns are context-sensitive and describe the different contexts where the patterns are applicable. For IS project management, the four integration patterns are a contribution to the management of integration risks – extending the vocabulary for assessing and mitigating these risks in IS development. For practitioners the four integration patterns represent an analytical framework to be used in planning modern IS development projects.     

IS diffusion: A dynamic control and stakeholder perspective

Our research uses a novel perspective of control balancing and stakeholder orientation to explore an information system (IS) phenomenon called enterprise IS diffusion. Employing a case-based, grounded theory approach, we analyze four large-scale IS implementation projects in a Canadian government organization. Our findings offer a synergistic approach to IS diffusion by integrating a dynamic control configuration perspective with stakeholder engagement, stakeholder sensitivity, and the impact of shifting stakeholder orientations on IS diffusion stages.We draw from control, control balancing, and stakeholder theories. Moreover, we refer to the IS implementation and IS diffusion literature to develop our argument. In doing so, this research develops a new and vital construct—stakeholder orientation—for IS implementation projects. We also identify the existence of four distinct stakeholder orientations, a combination of stakeholder engagement with stakeholder sensitivity in large ISD projects: (a) strategic, (b) responsibility, (c) best interest, and (d) economic cost.Through analysis and synthesis, we establish vital relationships among shifting control configurations, stakeholder engagement, stakeholder sensitivity, and IS diffusion stages, where maintaining an optimal stakeholder orientation, facilitated by appropriate control configuration, leads to a successful IS diffusion outcome. Furthermore, we propose an extension to the existing control balancing theory by identifying missing links and trigger factors.     

Escalating commitment to information system projects: findings from two simulated experiments

Commitment to an information system (IS) development project is essential for system success. However, some projects exhibit escalation of commitment, i.e. allocation of additional resources to a failing course of action. This paper describes two simulated longitudinal experiments examining the effects of project, psychological, social, and structural factors during four stages of an IS project. The results support escalation in IS projects. Moreover, project factors and psychological factors, but not structural factors, seem to aid escalation. Project, psychological, and social factors also have different effects during various stages.     

Software process improvement with weak management support: an analysis of the dynamics of intra-organizational alliances in IS change initiatives

Software Process Improvement (SPI) projects are large-scale, complex organization-wide change initiatives. They require considerable investments in personnel, time and money and impact just about every aspect of software firms. The group charged with conducting an SPI project has, however, little formal authority to influence or force software professionals to engage in SPI work or to define and implement changes. The SPI literature suggests that successful SPI initiatives depend on strong commitment from top management. But what should the SPI group do if management support is weak? In this paper, we present an analysis of how an SPI group can use alliances to obtain influence and succeed when management support is weak. Our study is based on a 3-year longitudinal field study of SPI change initiatives at Denmark Electronics. Our findings show that a lack of top management support is not necessarily incompatible with success. This research opens an important new area of research on intra-organizational alliances and information system (IS) implementation. It has the potential to offer new theories and practical advice on how IS implementation projects can be more effectively managed.     

IT governance for enterprise resource planning supported by the DeLone–McLean model of information systems success

I investigated the role of IT governance in driving the success of ERP projects. The tool for assessing ERP value was a comprehensive, multivariate and validated model adapted from the widely used Delone and McLean model of IS success. This showed that ERP investments were more effective in organizations having an IT governance domain consisting of proactive strategic guidance and participatory team building. Large enterprises, however, under-performed compared to SMEs and needed specific performance drivers, such as top management commitment to become effective.     

An empirical evaluation of existing IS change theories for the case of IOIS evolution

The phenomenon of inter-organizational information systems (IOIS) evolution has not yet been adequately researched and understood. We present and analyse empirical data from a case in which electronic ordering in the Australian pharmaceutical industry evolved over a 30-year period from closed to quasi-open systems. We analyse this revelatory case using a practice-theoretical framework to make visible the phenomenon of IOIS evolution. An essential characteristic of this framework is the distinction between and symmetrical treatment of material, normative and ideational structures within the practices that constitute the IOIS. Against the findings of this case study, we then evaluate two promising models of long-term IS change, namely Porra's (1999) Colonial Systems model and Lyytinen and Newman's (2008) Punctuated Socio-technical IS Change model. These models are selected as highly elaborated IS exemplars of two classes of theories of organizational change, namely evolutionary and dialectical theories. We find that these two models can only partially explain our findings. Finally, we make suggestions for developing more comprehensive theoretical models within these two classes of IS change theories. In practical terms, our paper shows that the transformation from closed to open IOIS may require adoption of longer time frames than are usually assumed and closer attention to norms and rationales usually neglected in IS projects.     

Immersive virtual reality in the age of the Metaverse: A hybrid-narrative review based on the technology affordance perspective

Immersive virtual reality (VR) that utilizes head-mounted displays (HMD) is one of the key emerging technologies of the 21st century and has drawn keen attention from consumers, practitioners, and scholars in various disciplines. Nevertheless, the information systems (IS) discipline has neglected immersive VR, given that only a handful of studies have been published in mainstream IS journals. However, the recent advancements in immersive VR technology provide new opportunities for organizations and IS researchers. In light of these points, we reviewed the immersive VR literature to provide a holistic view of opportunities and challenges for organizations and future research directions for the IS field. By examining the technical capabilities of immersive VR and the previous literature, we identified five affordances: embodiment, interactivity, navigability, sense-ability, and create-ability. Our review of the 151 studies from the IS and related fields synthesized how these affordances were utilized in various research domains. Guided by the affordance-actualization theory, we also identified the strategic opportunities and challenges that come with implementing VR. The actualization of immersive VR affordances in organizations is indeed a fruitful area for IS scholars as there are various venues to move the IS field as well as the VR research in the organizational context forward.     

Information systems investment decisions in business practice: the Spanish case

Previous research has reviewed the foundations of the most significant methods for the evaluation of investments in information systems (IS). However, in our view, it is also necessary to provide an updated view on the evaluation methods actually used in practice by organizations. This paper offers a view on the investment in IS in business practice in Spain, analysing: (i) the evaluation methods currently used by Spanish firms; (ii) how companies make decisions concerning investments in IS; (iii) the nature and quality of the decisions; and (iv) the consequences derived from them.     

The role of IS capabilities in delivering sustainable improvements to competitive positioning

It has long been argued that organizations have struggled to achieve business benefits, and in particular sustainable competitive advantage, from their IT investments. In this paper we draw upon resource-based theory to explore how the effective deployment of IS capabilities might deliver sustainable improvements to an organization’s competitive positioning. In so doing, this research makes a significant departure from the enterprise-level orientation of prior studies, by focusing upon the role of IS capabilities in leveraging sustainable improvements to competitive positioning from individual IS initiatives. Based upon the responses to a quantitative and qualitative survey of practicing managers, it has been shown that an organization’s ability to leverage and sustain improvements in its competitive positioning, from IS initiatives, are directly dependent upon its ability to effectively apply an appropriate portfolio of IS capabilities. Moreover, it has been shown that sustainable improvements in competitive positioning are most likely in circumstances in which the successful outcome of an IS initiative is dependent upon ‘outside-in’ and ‘spanning’ capabilities, which are both lacking in transparency and difficult to replicate.     

Getting the control across: Control transmission in information systems offshoring projects

Offshoring of information systems (IS) projects has become a widespread global practice. While prior research suggests that controlling, and communicating with, offshore vendors represent key managerial challenges, the topic of how control is communicated, or transmitted, from client to vendor has been widely neglected. Our study focuses on control transmission in the critical relationship between client and offshore vendor managers, and its impact on the performance of IS offshoring projects. Drawing on a matched‐pair survey with 172 client and vendor managers from 86 projects, our results provide several new insights to the IS literature: First, we find that both behaviour and outcome control have the capacity to be transmitted consistently in lateral IS offshore project relationships. Second, our results show that consistent transmission translates into a performance effect only for outcome control. Third, we find that high‐performing offshore projects are characterized by both greater control transmission consistency and greater use of outcome control compared to low‐performing projects. In sum, our study extends theory on IS project control by highlighting that effective control of IS offshoring projects is not only about selecting proper controls but also about ensuring that, as a controller, you get the control across to the controllee.     

Bridging the gap between the IS organization and the rest of the business: plotting a route

Abstract. Much of the research literature advocates a strong information system (IS) organization-business relationship if the IS organization and, in particular, technology is to make a value-added contribution to the business. Although research also highlights that in many organizations this relationship is poor, little guidance is provided as to how this 'gap' might be bridged. The research reported in this paper is a longitudinal study of three organizations that are actively seeking to bridge the gap, improve the relationship and consequently the value that they derive from their IS investments. A process model containing six stages, illustrating the route to creating high performance from IS, is constructed from cross-case analysis of the collected data. The paper ends with conclusions and implications.     

Managing risks in IT projects: an options perspective

Organizations are making large investments in information technology (IT) projects. However, many are risky and are often considered runaway, because they do not meet original expectations of cost, time, or benefits. Effective management of risks in IT projects is therefore extremely important. This paper emphasizes the need to differentiate between risks that can be resolved by action and risks that require hedging. It presents a framework for understanding and hedging risks in IT projects based on the finance literature on real options. This framework can be used to understand and justify project management decisions. The insight provided by this framework is consistent with practical managerial decisions in IT project management.     

TEAM BUILDING FOR IS SUCCESS

The growth of end-user computing and increased service options available to users maximize the importance of well-managed user relations. Team building, a method of changing people's attitudes and behavior, helps IS managers earn users' trust and generate the enthusiasm necessary to complete projects successfully.     

Using quantitative data in mixed-design grounded theory studies: an enhanced path to formal grounded theory in information systems

This article discusses a key development in the use of grounded theory (GT) in information systems (IS) – the use of quantitative data in mixed studies to build on and elaborate theories. We examine the design of one of our research projects and describe how this mixed-design GT project helped elaborate emerging theories using slices of qualitative and quantitative data. Our contributions are threefold: (i) we show that the use of mixed data and techniques can be leveraged to help build credible theories in IS because it allows researchers to build theories of greater abstraction and scope: it helps sense-making in the drive from substantive to parsimonious formal theories; (ii) in line with classic GT, we propose a mixed typological design to help build a pathway to formal grounded theories in rupture with existing literature; and (iii) we highlight GT as a meta-theory of research design and revisit some of its main principles in a mixed-design perspective.     

Evaluating Information Technology investments: research findings and reappraisal

Abstract. Investments in Information Technology are large and rising, but frequently the subject of disappointed expectations. Some explanations can be found in how they are evaluated and controlled. The paper reports findings from case study work and a 50 organization research project carried out in 1990-91. It first highlights 10 common problem areas that can be addressed. It then focuses on evaluation at the critical feasibility stage of projects and identifies from the research a number of ways in which evaluation practice can be improved. It finds a fall-off in evaluation at subsequent project stages, little attempt to link evaluation across the lifetime of systems, and a fragmented approach to learning from the evaluation experience for future investments. A number of modern alternatives to traditional financially based investment appraisal techniques that dominate the sample are then critically assessed. Tailored to specific organizational circumstances and projects these offer ways forward. Broader thinking, in terms of Information Systems (IS) investments, and a deeper understanding of IS as human activity systems lead on to multiple effectiveness criteria and related measures. However, major improvements may lie in allying more appropriate techniques and measures to developing evaluation as an organizational and social process, with the deeper organizational learning about IT this would entail.     

Motivating IS security compliance: Insights from Habit and Protection Motivation Theory

Employees’ failure to comply with IS security procedures is a key concern for organizations today. A number of socio-cognitive theories have been used to explain this. However, prior studies have not examined the influence of past and automatic behavior on employee decisions to comply. This is an important omission because past behavior has been assumed to strongly affect decision-making.To address this gap, we integrated habit (a routinized form of past behavior) with Protection Motivation Theory (PMT), to explain compliance. An empirical test showed that habitual IS security compliance strongly reinforced the cognitive processes theorized by PMT, as well as employee intention for future compliance. We also found that nearly all components of PMT significantly impacted employee intention to comply with IS security policies. Together, these results highlighted the importance of addressing employees’ past and automatic behavior in order to improve compliance.     

RefModPM: A Conceptual Reference Model for Project Management Information Systems

Project management information systems have changed considerably in the last decade. Today they go far beyond traditional scheduling as well as resource management. These systems have become comprehensive information systems (IS) that support the entire life cycle of projects, project programmes and project portfolios. In this context, project-oriented organizations face a new challenge: the design, implementation and operation of such information systems has become increasingly complex, since numerous processes have to be considered, diverse stakeholder interests taken into account and corresponding software systems selected. The reference model for project management IS (RefMod^PM) presented here addresses these challenges and aims to support corresponding implementation projects. This article introduces RefMod^PM by discussing its construction process and evaluation, as well as providing an overview of its architecture and presenting one part of the reference model in detail.