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Home » Management » Implementation And Evaluation

Critical Success Factors In Implementation of Information Systems

By Dinesh Thakur

It has been observed that certain factors are critical for the successful implementation of information systems. These factors fall under both management and technical factors. The critical factors that determine the success of implementation of information systems are:

Top Management Commitment

It has been observed that top management commitment is vital for a successful IS implementation. Whenever there is top management commitment, minor issues and problems do not snowball into major ones and they normally do not pose a challenge. However, in the absence of such commitment even minor issues become unmanageable. It is important that top management commitment for such IS implementation is not only present but is also communicated well within the organization, so that there is no ambiguity about the commitment. This strong signal of the will of the top management makes the work of the implementers easier. Minor issues cease to become issues at all and even major issues are sympathetically dealt with and urgently attended to by the client organization.

IS Team Composition

The implementation of IS is done by a team. The team consists of technical and management specialists from the vendor organization as well as people from the IS department and other stakeholder departments of the client organization. The constitution of the team is a very important and a critical factor in the successful implementation of IS. The team must consist of representatives from the user community, people who were part of the planning team, designing team in the client organization, other stakeholders in the client organization and people from the human resources department. The team must also obviously have members from the vendor organization who have sufficient knowledge of the IS being implemented. Their technical knowledge and managerial competence must be beyond any doubt. It is best if such a team works under the supervision of a top management functionary with sufficient powers and authority to take suitable decisions about the project so that better control can be exercised on the implementation schedules and issues that come up on the floor can be ironed out across the table. The urgency of the implementation in such cases is clearly demonstrated to the entire organization. The acceptability of the IS also improves. If the team consists of members from all stakeholders and is steered by a senior manager.

IT Teamwork

The team that is created must work in a cohesive manner with a sense of purpose. A unified front must be projected so that acceptability of the project improves. If the team members indulge is public spats, the chances of successful implementation are grim. However, every effort must be made to find out real issues and they must be dealt with in the right earnest. The team members must work as a team in all respects.

IS planning Quality

An IS project is as successful as its plan. If the planning was faulty, the IS implementation will no doubt be faulty. The IS will never be able to supply the kind of information the client desires if the planning has not been done diligently.

Diligent Project Management

The manner in which the implementation project is handled is also another critical success factor. Modern project management techniques must be used to estimate accurate cost and time schedules which must then be strictly monitored and adhered to. Any laxity will result in slippage of deadlines resulting loss of credibility of the project.

Change Management Initiatives and their Effectiveness

The process of implementation is normally a process of change and hence is riddled with challenges. Therefore, change management is probably the single most important factor in most large-scale IS implementations. The change management initiatives must be considered as part of the implementation effort and should be done proactively rather than in a reactive manner. Change management initiatives must also be done with the seriousness that it deserves. A callous attitude towards change management initiatives can cause more damage than good. Hence the attitude of management must be calibrated to suit the initiative.

Effective Communication

Communication is a key element in any organization initiative. In IS implementation, communication is a key element for success. Both formal and informal communication needs to be managed for implementing the project successfully. Effective communication will improve transparency and build trust within the client organization, thereby reducing the dependence on change management interventions.

Training

This is a key factor in the successful implementation of a new IS, making the IS acceptable to the users, reduces resistance to the IS and creates a better environment as a whole for the implementation to proceed smoothly. However, the quality of the training must be good and it must be explained to the users, the added benefits of the IS being implemented. The reason for migrating to the new IS will then be clearly understood by the users. Training will also help in the smooth transition from the old system to the new one without hampering the business process efficiency of the organization.

Technical Quality of IS

Even with all the support from the client, the implementation can fail if the basic technical product that comes from the vendor is of bad quality. Technical quality should be of good quality. This is a necessary condition. With bugs in the systems popping up every few minute, the system will have very slim chances of success. Clinch free technical system is therefore a critical factor.

HR Measures to Neutralize Organization Antibodies

Organization antibodies are people who find fault where none exists. Negativity and pessimism are the defining characteristics of such individuals. Sometimes they may also have motives to bad mouth a new system. When the influential staff bad months the new IS system, others follow them. This creates an avalanche effect and confidence in the new system drastically falls. This is an HR issue and has to be dealt with by the HR department in a firm and fair manner. It must be made known within the organization that there exists room for discussion and debate. Several teams and committees that are formed from the planning stage of a new IS initiative must be highlighted as forums for discussion and debate but only at the right time. Once a decision is taken about an IS by the top management, everyone must work towards making that decision a success. Any deviation from this must attract the necessary measures that it deserves. Such a measure will neutralize any antibodies and in their absence the implementation will be smooth.

                        Critical Success Factors for Implementation of IS




Implementation of MIS

By Dinesh Thakur

Implementation of a system is as much important as the creation of it. Implementation can easily destroy the good work done in the earlier phases and bring the system to a standstill. Implementation requires technical and managerial skills as the implementers work as change agents. Implementation is also a process that has a series of sequential steps which culminates in making operational the new system.

Implementation as an activity has to be carefully managed. It requires client interaction at every stage. The implementers need the full support and cooperation of the client and the IS department functionaries to successfully execute the implementation of information systems. In order to help them perform this task of implementation smoothly, a series of predefined steps are followed. These implementation tasks are as follows:

Implementation Plan

It is the series of action-oriented steps planned for making the implementation smooth. It normally involves the following steps:

  1. Creating a master schedule of the implementation activities
  2. Setting timelines for critical and non-critical activities
  3. Identifying major bottlenecks and their solutions
  4. Communication of the plan.

This step is required to help the user community to understand the time frame for installation of the new system. Communication plays a vital role in the implementation and without proper communication especially, from the top management on the installation and implementation of the new system the change management will be difficult. Resistance to change related issues will come to the fore making the difficult task of implementation more difficult. Communication of the plan of implementation to the user community helps the users to prepare for the change and makes them mentally prepared for it. The communication is required to be formal so that rumors cannot be spread about the system. The communication process may itself be in several phases. The top level can communicate the general intent of the new system and then detailed briefings to staff may be left to the divisional heads. The communication process also indicates (indirectly), the role each employee is required to play in the implementation process.

Organizing the MIS Department

The MIS department will be the custodian of the new system. Hence, they have to be gear up to support the new system. Organization of the department is therefore necessary before the new system becomes operational. The roles of each member of the MIS department have to be clearly laid out before the new system becomes operational. Effort is made to ensure that the role of the MIS staff is understood by each member of the organization. Training is provided to those who need training on the new system so that they in turn can help others. This process of organizing the MIS department starts much before the actual implementation process begins as it entails some hiring and training which requires some lead time. The organization is done in such a timeframe that staff is available when the actual implementation starts. This enables the MIS staff to provide support to the implementation team, when the implementation process starts. This will also help the MIS staff to understand the nitty-gritty of the new system as they will be able to get a hands-on experience in the implementation of the new system.

Selection and Procurement of Hardware

This step of the implementation process is an important step as it involves huge investments. Proper care is taken to ensure that the organization gets the best deal from such selection and procurement of the hardware. The process of selection and procurement of hardware also varies greatly from firm to firm depending on the size of the firm and the sector in which it operates the type of management. However, the following procedure is followed:

  1. Preparation of vendor list-a list of reliable vendors is prepared. This list of vendors may be prepared after analyzing the vendor management experience of the organization with different vendors or may be prepared based on some accepted list of vendors in that business space prepared by some organization of repute or some industry body/regulatory body. The vendors that are selected to be part of the list are chosen carefully after a thorough checking of their credentials and goodwill in the market. This is essential as the vendor relationship is based on trust and compromise and not only on the basis of strict commercial terms.
  2. Preparation of RFP-the implementation team must prepare the request for proposal document based on their understanding of the hardware requirement of the new system. The RFP must have complete technical details about the required hardware systems including specifications, format, performance expectation, and warranty and service quality requirements. This document is prepared by the implementers in consultation with the development team, management of the organization and the MIS team of the organization so that the need for each specification is well established and there is no scope for any difference of opinion. The consultative process results in the RFP which is a technical document. The RFP also has commercial details which the implementation team prepares in consultation with the management of the organization. The RFP is a quasi-legal document in some countries and proper legal opinion is normally sought before sending it to the enlisted vendors.
  3. Request for bids/proposal to select vendors-after the RFP is prepared it is sent by some mode of communication to the enlisted set of vendors. The communication medium can be an open advertisement in print or electronic media or may be in the form of a letter to the vendors with a deadline for submission of the proposal.
  4. Evaluation of RFP-this is a difficult process. After bids are received before the deadline, they are checked (preliminary check) for basic errors. Those found to be prima facie proper are then evaluated. Several methods of evaluation exist. The evaluation could be on the basis of cost alone or quality alone or may be a mix of both cost and quality. Typically, a score based system of evaluation is used to rank the vendors’ proposals. Scores are assigned to each attribute of a vendor’s proposal like cost, goodwill, track record and service quality guarantee. Based on the weight age given to each attribute a composite score is prepared, which is used to evaluate the proposals. Whatever tJ1emethodology for evaluating the proposal, one must take care to apply the same evaluation criteria to all proposals. Different yardsticks should not be applied to different proposals.
  5. Selection of vendor-based on the evaluation a single vendor or a select set of vendors are chosen for delivery of hardware. Contract negotiations and price negotiations are held with this select group of vendors and following the successful completion of the negotiations the final contract will be signed.

Procurement of Software

The new system being implemented will have been created based on assumptions of operating environment of the organization. Procurement of system software is done on similar lines as the procurement of hardware. The only difference in the case of procurement of software is that the choice of what software to purchase is already made at the design stage of the system development and hence, the RFP preparation process is straightforward. The implementation team need not prepare the specification for the system software. They only need to procure the system software that the new system is designed to run on. The rest of the process is almost similar to the hardware procurement process.

Creating the Database

The new system to be implemented will have data stores. In modern systems, data stores are databases. These databases are relational database management systems, which is a separate application software package. The database has to be created and structures inside the database have to be created in order to enable it to store data. The implementation team creates the database, its structures and rules so that the application system being implemented can be plugged into the database and start working.

Training of Users

Implementation is a larger issue than installation. The new system may get installed but without proper training of users, it may not be of good use. Implementation is a larger concept and focuses on the installation and hand-holding part of the transition process. A training needs assessment is done to understand the training needs of the users. A training programme is planned and the required training given to users. This is an important part of the implementation process and helps in reducing the resistance to change related behavior among the user community. The training also helps users to appreciate the new features of the new system and helps build trust and appreciation for the new system.

Creating Physical Infrastructure

The new system being implemented may require a physical infrastructure. The implementation team must ensure that the system performance must not suffer due to infrastructure bottlenecks. The implementers will have to use their persuasive skills and convince the management of the organization to create the required physical infrastructure so that it does not affect the performance of the new system.

Transition to the New System

This is the last step in the implementation process. The transition if done wrongly leads to a lot of pain. Hence, it is necessary to move slowly on the transition front. Normally, after the new system is installed and ready, the new system and the old system are both used for a period to ensure that the company performance does not suffer due to transition problems. Slowly when the users gain more capability to handle the new system the old system is phased out.




What is the procedure for carrying out the cost/benefit evaluation of an MIS

By Dinesh Thakur

           In cost/benefit evaluation of the various expected costs, the benefits to be expected from the system and expected savings is done. The cost/benefit analysis determines the cost-effectiveness of the system. The various categories of costs and benefits are measured and included in cost/benefit analysis.

 

i)        Initial development cost : it is the cost of developing an information system. The various elements of development cost include project planning cost, feasibility study cost, testing costs, implementation cost etc.

ii)       Capital cost : It is also a one time cost. It is the cost of providing facilities and equipments including hardware etc for the operation of the system.

iii)     Annual operating cost : It is the cost of operating the system. It includes computer and equipment maintenance cost, personnel cost overheads and supplies cost. Computers and equipment are to be maintained and thus some cost is included, known as Annual Maintenance Cost.

In cost/benefit evaluation, various expected beenfits from the system are also studied. The first task is to identify each benefit and then assign a monetary value to it. Benefits may be tangible or intangible, direct or indirect.

The major benefits are improving performance and minimising the cost of processing. The performance part suggests improvement in accuracy, timeliness, non-duplication, adequacy, usefulness in information and easier access to the system

 




What is the procedure for selecting the hardware and software in an information system

By Dinesh Thakur

Selecting hardware and software for implementing information system in an organization is a serious and time-consuming process that passes through several phases. The main steps of the selection process are listed below:

1. Requirement analysis: – System configuration requirements are clearly identified and a decision to acquire the system is taken in this step.
2. Preparation of tender specifications: – After studying the feasibility and deciding upon the configuration, tender documents are prepared for the benefit of vendors to clarify the details of various specifications, as listed below.

I)   Purchase procedure and schedule: it includes
a)  Date of tender submission
b)  Evaluation criteria
c)  Scope for negotiations, if any and
d)  Expected usage environment and load pattern
ii)  Equipment specification

Detailed technical specifications of each item required for both mandatory and optional items.

II)  Quotation format:

a)   Format for stating technical details and quoting prices
b)   Whether deviations from specifications should be specifically listed
c)   Prices and levies (duties, taxes etc.) could be quoted as lumpsum or required separately.
d)   Required validity of the quotation.
e)   Earnest money deposit required, if any.

III)  Proposed terms of contract

a)   Expected delivery schedule.
b)   Uptime warranties required
c)   Penalty clause, if any
d)   Payment terms (Whether advance payment acceptable)
e)   Arbitrary clauses
f)    Training needs.
g)   Post warranty maintenance terms expected.
v)   Any additional information required.

3. Inviting tenders: – After the preparation of tender specifications, tenders are invited. Invitation of tenders may depend upon the magnitude of purchase (estimate equipment cost). It may be through

i)    Open tender (through newspaper advertisement)
ii)    Limited tender (queries sent to a few selected vendors)
iii)   Propriety purchase (applies mostly to upgrade requirements)
iv)   Direct purchase from market. (applies mostly to consumables)

4.  Technical scrutiny and short listing: – This step involves the following activities.

i)   All tendered bids are opened on a pre-defined date and time.
ii)  Deviations from the specifications, if any, in each bid are noted.
iii) A comparative summery is prepared against the list of tendered technical features.

Additional factors to considered are:

i)  Financial health of the vendor

 (from balance sheets)

ii)  Nature and extent of support

(from information provided on number of support staff per installed site an cross-check with selected customers)

iii) Engineering quality pf products

(factory inspection of product facilities, QA procedures and R&D)

5.  Detailed evaluation of short listed vendors: – This step primarily involves getting any finer technical clarifications. Visits to customer sites and factory inspections may be planned. If any specific performance requirement is stipulated, the offered product is to be examined at this stage through suitable benchmark tests. For benchmark tests, standard benchmarks may be used as adequate performance indicators.

6.  Negotiation and procurement decision: – Because of the extensive competition, computer system vendors may offer significant concessions. Negotiations are held to maximize these concessions. However, price negotiations are often not permitted by some organizations.

When price negotiations are permitted, the committee members should have a good knowledge of the prevailing market prices, current trends, and also the duty/tax structure.

i)   Computer magazines
ii)   Vendor directories.
iii)  Contact with other users
iv)  Past personal experience.

7.   Delivery and installation: – In this step, the vendor delivers the hardware/software to the buyer’s organization, where it is matched with the specifications mentioned in the purchase order. If conforms to these specifications, the vendor installs the system in the premises of the organization.
8.   Post-installation review: – After the system is installed, a system evaluation is made to determine how closely the new system conforms to the plan. A post-installation review, in which system specifications and user requirements are audited, is made. The feedback obtained in this step helps in taking corrective decision.




What is system maintenance? What are its different types

By Dinesh Thakur

The results obtained from the evaluation process help the organization to determine whether its information systems are effective and efficient or otherwise. The process of monitoring, evaluating, and modifying of existing information systems to make required or desirable improvements may be termed as System Maintenance.

System maintenance is an ongoing activity, which covers a wide variety of activities, including removing program and design errors, updating documentation and test data and updating user support. For the purpose of convenience, maintenance may be categorized into three classes, namely:
i) Corrective Maintenance: This type of maintenance implies removing errors in a program, which might have crept in the system due to faulty design or wrong assumptions. Thus, in corrective maintenance, processing or performance failures are repaired.
ii) Adaptive Maintenance: In adaptive maintenance, program functions are changed to enable the information system to satisfy the information needs of the user. This type of maintenance may become necessary because of organizational changes which may include:
a) Change in the organizational procedures,
b) Change in organizational objectives, goals, policies, etc.
c) Change in forms,
d) Change in information needs of managers.
e) Change in system controls and security needs, etc. 
iii)Perfective Maintenance: Perfective maintenance means adding new programs or modifying the existing programs to enhance the performance of the information system. This type of maintenance undertaken to respond to user’s additional needs which may be due to the changes within or outside of the organization. Outside changes are primarily environmental changes, which may in the absence of system maintenance, render the information system ineffective and inefficient. These environmental changes include:
a) Changes in governmental policies, laws, etc.,
b) Economic and competitive conditions, and
c) New technology.


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