Reasons why companies often struggle with Information Systems Implementation!!!

 

Hello, Everyone and welcome back to this weeks blog.

This week I’m going to discuss the reasons why companies struggle with the implementation of Information Systems.

Implementing information systems can be a complex task for companies. It involves integrating new technologies, processes, and systems into the existing infrastructure. However, challenges can arise during this implementation process, hindering the smooth transition and successful adoption of the new system. In this Blog, I will explore four common reasons why companies struggle with information system implementation. 

 

1.      Lack of Proper Planning and Strategy: One of the primary reasons for companies facing difficulties in implementing information systems is the lack of proper planning and strategy. Without a clear roadmap, companies may struggle to define their goals, allocate resources effectively, and set realistic timelines. Insufficient planning can lead to delays, cost overruns, and even project failure. Lack of proper planning and strategy lead to Hershey’s ‘Not-So-Sweet Blunder’ in 2020. Hershey wanted to fast track the implementation system process, which lead to shortcuts in the planning and implementation of the new system. This resulted in Hershey failing to fulfil an estimated $100 Million worth of orders, which reduced their quarterly profits by 19% and their share price dropped by 8%. To combat this challenge, companies should invest time and effort in comprehensive planning, including defining project objectives, assessing risks, and creating a detailed implementation plan. 

2.   Insufficient Resources and Budget Constraints: Implementing information systems often requires significant financial investments and allocation of resources. Companies may struggle with limited budgets, which can impact the ability to acquire necessary hardware, software, and skilled personnel. Insufficient resources can result in compromised system performance, inadequate training, and lack of ongoing support. Lack of funding and ongoing support lead to Lidl’s SAP implementation failure back in 2015, Three years after going live with the new ERP system, Lidl decided to drop the €500m project because it could not achieve its strategic goals without spending even more money to make it work. To address this challenge, companies should carefully assess their budgetary constraints and explore alternative options such as cloud-based solutions or seeking external partnerships. 

3.      Resistance to Change from Employees: Employees' resistance to change is another major hurdle in the implementation of information systems. People are naturally inclined to stick to familiar routines and may resist adopting new technologies or processes. This resistance can manifest as skepticism, fear of job loss, or a lack of understanding about the benefits of the new system. Resistance to change from employees lead to Nestlé’s Information system implementation failure, employees were resistant to centralization of the company through SAP. To overcome this challenge, companies should prioritize effective change management strategies, including clear communication, training programs, and involving employees in the decision-making process. Creating a positive and inclusive work environment can help employees embrace the change and feel empowered during the transition.

Thanks Everyone for reading this week’s blog, Next weeks Blog I will write about companies that used Enterprise Applications successfully to support their business strategy and business model. 

Write to you soon.

                                                                                    Shauna O'Leary