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Challenge and Implementation

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Management Information System Implementation Challenges, Success Key Issues, Effects and Consequences : A Case Study of Fenix System Master’s Thesis within Military Logistics Author: Artit Kornkaew Tutor: Leif-Magnus Jensen Jonkoping May 2 01 2 INTENTIONALLY BLANK ii Acknowledgements First of all, I w ould like to thank my parents for moral support in everything. In addition, I w ant to take this opportunity to express Royal Thai Air Force for scholarship in this master program me. I would like to thank my tutor Professor Leif -Magnus Jensen for his su pport and guidance.

I also want to thank Per Skoglund for his advice and interesting thoughts. In addition, I would like to express my appreciation and gratitude to all the respondents f rom the Royal Thai Air Force, Swedish Defe nce Material Administration, Swedish Air Force, and IT companies f or valuable information. Finally, I w ould like to express my immense thanks and gratitude to all people who contributed to make this thesis successful . May 2012, Jonkoping Artit Kornkaew iii Master Thesis within Military Logistics Title: M anagement Information System (MIS) Implementation

C hallenges, Success Key Issues, Effects and Consequences: A C ase Study of Fenix System Author: Artit Kornkaew Tutor: Leif-Magnus Jensen Place and Date: Jonkoping, May 2012 Subject terms: M anagement Information System (MIS), Information System (IS), Implementation Challenges, Success Factors, Organisational Impacts, Effects and Consequences Abstract During the growth of a competitive global enviroment, there is considerable pressure on most organisa tions to make their operational, tactical, and strategic process more efficient and effective.

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An information system (IS) is a group of components which can increase the competitiveness and gain better information for decision making. Consequently, many organisa tions decide to implement IS in order to improve the effectiveness and efficiency of the ir organisa tions. However, a lack of a wareness of numerous and varied challenging issues surrounding the implemenation process could be problematic for the whole process. Furthermore, the problem of a lack of k ey success issues seems to be a serious obstacle for the management information system ( MIS) implementation process.

Additionally, MIS implementation has effects on an organisa tion and these effects are relate d to the consequences of the business processes . Consequently, this issue is critical and cru cial for an organisa tion to consider when they implement a new MIS. The main purpose of this thesis is to present the MIS implementation challenges or problems together with identifying the k ey issues to successfully a chieve implementation. Such challenges and success factors are conducted based on a research framework.

In a ddition, this research a ccesses descriptions of implementation effects and consequences which impact the organisa tion and its processes. This thesis has been conducted by studying the theory divided into three parts including: general background litera ture of information systems, implementation aspects, and organisa tional impacts literature . The methods that were used to successfullly accomplish this study were a case study of Fenix System, collecting data by personal interviews with respondents who were involved in Fenix a long with internal document s.

The a nalysis of the research framework and empirical findings ha s contributed to a description of the main challenges and key success issues regarding MIS implementation, together with an identification of important effects and consequences when implementing MIS. This thesis’s main results show that MIS implementation is surrounded with challenges which mainly concern management, adminsitration, and people issues involved in MIS implementation pro cess. Additionally, it was concluded that the key issues which the MIS implementation project should be presented with primarily focused on the project team and their te a m work.

The last main finding is concentrated on effects and consequences and i t found out that MIS implementation mainly affects business process which le a d to change, for instance jobs, routines, a nd so forth. iv Table of Contents 1 Introduction ……………………………………………………………………. 1 1. 1 1. 2 1. 3 1. 4 1. 5 1. 6 1. 7 Background . …………………………. ………………………….. ………………………….. 1 Problem . …………………………. ………………………….. ………………………….. …… Research Questions . …………………………. ………………………….. ………………. 3 Purpose . …………………………. ………………………….. ………………………….. …… 3 Delimitation………………………….. ………………………….. ………………………….. 3 Definations . …………………………. ………………………….. ………………………….. . 4 Disposition of the Thesis . …………………………. ………………………….. ……….. 4 2 Frame of Reference ……………………………………………………….. 6 2. 1 2. 2 2. 3 2. 3. 1 2. 3. 2 2. 3. 3 2. 4 2. 4. 1 2. 4. 2 2. 5 M anagement Information System (MIS) . …………………………. ………………… 6 Information System (IS) and Information Technology (IT) . …………………. 8 M IS Implementation A spects . …………………………. ………………………….. … 11 M IS Implementation Process………………………….. ………………………….. …. 11 M IS Implementation Challenges . …………………………. ……………………….. 14 K ey Issues for M IS Implementation Success . …………………………. ………… 16 Organisational Impacts of an Implementation . …………………………. ……… 18 Impact of Information System ………………………….. ………………………….. .. 18 Implementation Effects and Consequences . …………………………. …………. 19 Summary of the Research Framework . …………………………. ……………….. 22 3 Methodology …………………………………………………………………. 3 3. 1 3. 2 3. 3 3. 4 3. 5 3. 6 3. 6. 1 3. 6. 2 Research Approach and Design………………………….. …………………………. 23 Choice of M ethod . …………………………. ………………………….. ……………….. 23 Case Study ………………………….. ………………………….. ………………………….. 25 Data Collection Process . …………………………. ………………………….. ………. 26 Data Analysis. …………………………. ………………………….. ………………………. 9 The Trustworthiness of the R esearch . …………………………. ………………… 29 Validity………………………….. ………………………….. ………………………….. …… 29 Reliability . …………………………. ………………………….. ………………………….. .. 30 4 Empirical Finding ………………………………………………………….. 31 4. 1 4. 1. 1 4. 1. 2 4. 1. 3 4. 2 4. 3 4. 4 4. 4. 1 The Case of Fenix System………………………….. ………………………….. ……. 31 Involved Organisations of Fenix System . …………………………. ……………… 31 F enix System Background . …………………………. ………………………….. …….. 32 F enix (E) system i mplementation process . …………………………. …………… 34 F enix (E) System Implementation Challenges ………………………….. ………. 37 F enix (E) System Implementation Success Key Issues ……………………….. 39 Organisational Impacts………………………….. ………………………….. ………… 40 Effects and Consequences of Fenix System Implementation . …………….. 40 5 Analysis…………………………………………………………………………. 43 5. 1 5. 2 5. 3 5. 4 5. 4. 1 5. 5 Introduction . …………………………. ………………………….. ……………………….. 43 M IS Implementation Challenges………………………….. …………………………. 43 M IS Implementation Success K ey Issues………………………….. ……………… 46 Organisational Impacts . ………………………… ………………………….. ………… 47 Effects and Consequences on the Organisation and its Processes . …….. 47 Summary . …………………………. ………………………….. ………………………….. . 48 v 6 Conclusions ………………………………………………………………….. 50 7 Discussion …………………………………………………………………….. 51 8 References……………………………………………………………………………………….. 3 9 Appendices ……………………………………………………………………………………… 59 9. 1 9. 2 Appendix 1 – Definitions . …………………………. ………………………….. ……… 59 Appendix 2 – Interview Guide………………………….. ………………………….. . 60 List of Figures Figure 2. 1 Frame of Reference Description…………………………………………………………………………………. 6 Figure 2. 2 Five Components of an Information System (IS) ……………………………………………………….. Figure 2. 3 Software Sources and Types ………………………………………………………………………………………. 9 Figure 2. 4 Information System Development Cycles ………………………………………………………………… 12 Figure 2. 5 Dimensions of Impact………………………………………………………………………………………………. 19 Figure 2. 6 The Research Framework ……………………………………………………………………………………… 2 Figure 4. 1 EmpirIcal Finding Structure ……………………………………………………………………………………… 31 Figure 4. 2 Gripen 39 C/D Fighter Aircraft and SAAB 340 AEW……………………………………………… 32 Figure 4. 3 Overview of Fenix System………………………………………………………………………………………… 33 Figure 4. 4 Fenix (E) Applications Architecture Overview…………………………………………………………. 35 Figure 4. Test and Trials Period and “Go-Live ” for Fenix (E) ………………………………………………… 37 Figure 4. 6 Fenix Project Organisation and Responsibilities ……………………………………………………… 40 Figure 5. 1 Modified Research Framework Model…………………………………………………………………….. 49 List of Tables Table 2. 1 Categorisation of Information System (IS) Implementation Challenge Issues ………………………………………………………………………………………………………………………………… 5 Table 2. 2 Summary of Key Issues for Implementation Success……………………………………………… 17 Table 2. 3 Summary of Implementation Effects and Consequences on an Organisation and its Processes ………………………………………………………………………………………… 21 Table 3. 1 Distinctions Between Quantitative and Qualitative Research ……………………………….. 24 Table 3. 2 Details of the Interviews ………………………………………………………………………………………….. 8 vi Introduction 1. Introduction 1. 1 Background During the growth of a competitive global enviroment, there is considerable pressure on most organisa tions to make their operational, tactical, and strategic processes more efficient and effective . An information system (IS) is a group of components which can increase competitiveness and gain better information for decision making. Therefore various organisa tions have chosen to apply thi s group of components to their a ssociations (Spalding, 1998).

Consequently, the organisa tions decide to implement IS in order to improve the effectiveness and efficiency of the organisa tions. Information systems ha ve become a major function area of business administration. The systems, nowada ys, plays a vital role in the e -business and e -commerce operations, enterprise collaboration and management, and s trategic success of the business ( Hevner et al . , 2 004). According to Ein-Dor a nd Segev (1978), an IS becomes a management information system (MIS) when it is applied to improve ma na gement by directors of the organisa tion.

This system can increase the performance of the management. MIS is a collection of manpowers, tools, procedures and software to perform various business tasks at various levels in the organisa tion (Tripathi, 2011 ). This system has three basic levels: operational, middle management and top management where the information is passed from bottom to top (Tripathi, 2011). Moreover, MIS is one of the important functions of management which plays an important role in providing information that is required for crucial decision making which directly a ffects the performance of the organisa tion (Murthy, 2006).

Due to a fundamentally changing external environment, several organisa tions have decided to change their IS strategies by adopting application software packages rather than in-house development (Hong & Kim, 2002). According to Davenport (1998), the most significant development in the corporate use of IS is the establishment of enterprise resource planning (ERP) systems. ERP systems a re an information technology ( IT) infrastructure that facilitate the flow of information between all supply chain processes in a n organisa tion (Al-Mashari & Zairi, 2000).

ERP systems, moreover, provide the means for management to respond to increased business needs in more effective and efficien t ways (Spathis & Constantinides, 2003). Nonetheless, a concern regarding E RP systems regards their flexibility and ability to meet specific organ isa tion and industry requirements. As a result, some organisa tions still integrate their systems using conventional best of breed (BoB) or stand a lone system components of standard package a nd/or custom software without ERP systems (Davenport, 2000). In addition, some organisa tions have developed their own customised suite s of nterprise applications, known as a best of breed (BoB) IT strategy, which offers greater flexibility and clos er a lignment of software with the business process of the organ isa tion (Light, Holland & Wills, 2001). Therefore a doption and utilisa tion of ERP and BoB systems should be considered as an important factor which should be suitable for the organisa tions and the current business processes. In private organisa tions, IS a re important factors in assuring the competitive advantage a nd eventual profitability of the firm.

On the other hand, in governmental organisa tions IS a re just as crucial, but from a nother perspective, in terms of responsivesness, 1 Introduction efficiency, and productivity (Beaumaster, 1999). In defense organ isa tions they also share the same objectives as many private -sector corporations: for instance they are striving to decrease costs by redesigning and integrating processes. Hence defense organisa tions require IS with the integrated system and technology platform both within and across the organisa tion in order to achi eve greater visibility and affordable operational readiness.

For example, the Swedish Armed Forces (SAF) formalised a n E RP project due to many old and bespoke systems, lack of integration, and high complexity of current IT systems. Moreover, efficiency a nd effectiveness can be increased in IS for maintenance of a ircraft; SAF has implemented a n a viation “best of breed” solutions information system called the Fenix System. In addition, t his system has been implemented in the Royal Thai Air Force (RTAF) since 2010 . This research will focus on the implementation of MIS and provides a case study of the Fenix System which is a management information system for the maintenance of a ircrafts. . 2 Problem Many companies have been implementing IS in their respective organisa tions a nd reorganising their business process es (Rajagopal, 2002) . Computer-based IS mainly depend on IT; consequently, succe ssful IS can be measured by the effectiveness of IT to support a n organisa tion’s strategies (O’Brien, 2004). The demand for efficient and effective use of IT is also gradually increas ing a t the present time (Beaumaster, 2002). An organisa tion that adopted an IT system to provide special attention to planning, a cquisition, and implementation of these technologies .

Those associates must be aware of the various number of issues which a re a part of the ability of the organisa tion to achieve effective IT implement ation (Beaumaster, 2002). It is important to not e that more than 70 per cent of standard package (i. e. E RP system) implementa tion projects fail (Milis & Mercken, 2002 ). Therefore, IS implementation is surrounded with various problems regarding the implementation process a nd it is not easy to succe ed. There are several problems which occur during the implementation of IS. These problems can be observed in a series corresponding to each stage of the overall process.

It appears that every layer is comprised of multiple issues that create or worsen the challenges (Beaumaster, 2002). MIS or IS ha ve to provide a n a pproach to deal with the ever-changing problems and be situated surrounding all aspects of the management of information (Theiruf, 1994). Moreover, the succe ss of IS implementation in the organisa tion also depends on a multitude of important and interrelated factors (Beaumaster, 2002). Hence it is a of great significance to take into account this and observe the obstacles when implementing an new information system.

In order to ensure success of MIS implementation, therefore, the k ey success factors should be determined a nd indicated on which issues will a llow a project to be successful (Gargeya & Bardy, 2005). As mentioned earlier, adopting IS is one factor which increase s the effectiveness and efficiency in a n organisa tion. However, implementing IS a ffects the organisa tion to a great degree and can be seen as a major change for a n organisa tions’ processes; for instance, it requires employees to change (Chan, 2000 ; Davies, 2009 ).

Many companies have found that implementing such change s is the most difficult part of IS implementation ( Kroenke, 200 7 ). In addition, IS can effect individuals, groups, a nd a whole organisa tion when IS was introduced into that organisa tion. This system can create both a positive and negative impact on these level s (Davies, 2009). The negative effect of IS occurs when the system fails. This failure can be ana lysed on the technical, 2 Introduction project, organisa tional and environmental level. Thus a good strategy is significantly concerned with a voiding the failure of the system and achiev ing a successful system (Davies, 2009).

Problem statement Considering the a forementioned context, it is important to notice that a lack of a wareness of numerous and varied challenging issues surrounding the implemenation process could cause problems for the whole process of MIS development and deployment. Furthermore, the problem of a lack of k ey success issues seems to be a serious obstacle for the MIS implementation process. It is essential to define the success factors amd manage them in order to carry out a successful the implementation. Additionally , MIS implementation effects a n organisa tion and these effects are relate d to the consequences of the business processes.

Consequently, this issue is critical and cru cial for an organisa tion to consider when implementing a new MIS in the organisa tion. The problem addressed in this study focus the challenges and k ey success issues regarding IS implementation. Additionally, the problem a ddressed in this study refers to effects and consequences on a n organisa tion and its business process. 1. 3 Research Questions In order to achieve the purpose of the study, the following research questions were identified: ? ? What problems/challenges have been faced in MIS implementation processes?

What are the key issues that need to be identified in order to achieve a successful ? MIS implementation? What are the effects and consequences for an organisa tion and its processes when implementing MIS? 1. 4 Purpose The purpose of this thesis is to present and describe MIS implementation challenges or problems a s well as identifying the k ey issues to achieve successful implementation. Moreover, this research seeks to explain the implementation effects and consequences which impact the organisa tion a nd its processes. 1. 5 Delimitations This report will not consider modification of already -existing MIS, only new MIS implementation.

Information system implementation in this study concentrate s on purchasing standard package software, not developing in-house software. In a ddition, in the case study of the Fenix System, the research will not take into account the full version of the Fenix System, but will mainly focus on the system which was implemented by the Royal Thai Air Force ( RTAF), called Fenix E xport version or Fenix (E) . The limitation of the Fenix (E) is a n information system which is used for operation monitoring only for aircraft maintenance in the RTAF, a nd is not be used a nd integrated with other actors in the supply chain.

Consequently , the supply chain perspective will not be considered in this research. 3 Introduction 1. 6 Definition This research uses some technical terms and concepts which could be hard to understand. Therefore a list of definitions is created in order enable the reader to have an understanding of these issues. In this section the main definitions that are significant for the purpose of this thesis will be explained. The rest of t hem will be clarified and explained in Appendix 1.

Management Information System ( MIS): MIS refers to an information system that makes timely and effective decisions for planning, directing a nd controlling the activities for which they are resposible and also helps businesses achieve their goals and objective s. In this study, MIS will be used as a similar definition to Information System (IS). MIS Implementation: That is a part of the information system development process devoted to delivering the information system into its context of use. In this study, it is titled “IS implementation process” and is a lso mentioned a s one of the steps of implementation process.

In orde r to clarify this confusion, therefore, the process sometimes will be la belled as “IS Development and Deployment Process”. Effects and Consequences: A consequence is based on an effect and affects the way of working. In this study I would like to see what consequences have been generated due to the effects of implementation of MIS a nd how these impacts have affected the business processes a nd organisa tion. Key Issues for MIS implementation Success: The k ey success issues in this study can be called “success factors” which refer to factors that have to be achieve d in order to carry out a successful implementation of MIS.

These are key area s where successful performance will assure the success of the organ isa tion and the a ttainment of its goals that top management should take into account . 1. 7 Disposition of the Thesis In order to provide the reader with a n overview of the thesis, the research structure and details below are summarised and present ed in the following way: Chapter 1 – Introduction: The background to the thesis is present in this chapter. This provides the reader with a basic understanding of the subject and issues.

In addition, the research problems are defined in the field of management information system implementation. Also, the purpose of the thesis is described together with delimitations. Since this thesis uses some technical terms, some of primary definitions are defined in order to a llow the reader to understand the purpose of the thesis. Chapter 2 – The Frame of Reference: The frame of reference presents some understanding of the relevant implementing of MIS. In this chapter, management information systems (MIS) will be described as well as information systems (IS) and information technology (IT).

One of the most important information systems for enterprise in the last two decades, such as enterprise resource planning (ERP) and the best of breed (BoB) solution , a re described in order to gain more 4 Introduction understanding in technolgy relate d to information systems. In addition, the framework of MIS implementation with problematic issues together with k ey succes factors a re explained. Additionally, organisa tional impacts by MIS implementation focused on effects and consequences on an organisa tion and its processes will be presented. Chapter 3 – Method:

This chapter will use methodology combining a theoretical and empirical approach. This research uses a qualitative method a nd uses a case study as research in order to achieve the research’s purpose. Chapter 4 – Empirical Findings: The chapter will present findings of the empirical research including the case study of the Fenix System. In-depth interviews in diffferent perspectives from the respondents involved in implementat ion process of Fenix (E) in Wing 7 , RTAF will be carried out . Chapter 5 – A nalysis: The intention in this chapter is to the give the readers my explanation of the findings related to my research questions.

Moreover, theory and empirical data are combined to interpret a nd ana lyse the findings. Chapter 6 – Conclusions: This chapter will provide the readers with the main findings in problems and effects and consequences of implementing MIS togethe r with identifying k ey success issues. In a ddition, the major effects and consequences of implementing MIS will be described. Chapter 7 – D iscussion: The final chapter includes some discussion on some general aspects regarding the findings or lesson learned obtained from this study. Additionally, the trendency of the Fenix System will be discussed in this chapter. Frame of Reference 2. Frame of Reference In this chapter the reader will be more a ble to understand the subject and identify the suitable theoretical areas for creating an understanding which are connected to the purpose of the thesis. This review will ground the study of management information system (MIS) implementation issues in the field of information systems (IS). In essence, the review relate s to MIS implementation a nd consists of three main sections which a re focused in the research and writing that provide the main idea of this study. 2 . 3 MIS Implementation Aspects Implementation Process – Challenges – Success Factors 2 . 4 Organisational i mpacts by MIS i mplementation – Effects and Consequences – Summary Summary 2. 2 IS a nd IT – ERP & BoB Part III 2. 1 MIS Part II Part I This review begins with a pre sentation of a general background of literature which a ims to give the reader an understanding of the subject. This part relates to MIS which focuses on management of information systems. Moreover, the discussion of E RP and “best of breed” solutions, two existing a pproaches to information systems for enterprise software systems will be described.

In addition, this section includes a discussion of information systems (IS) related to information technology (IT) . The second part of this chapter provides literature a ssociated with MIS implementaion processes a nd its surrounding challenges a long with its success factors . The third part of this section discusses organisa tional impacts on business/organisa tion processes including effects a nd consequences when MIS has been implemented. Finally, the summary of the research framework is illustratated as the model which will be used as a guide for analysis (see Figure 2 . 1 ) The research Framework Figure 2. Frame of Reference Description (source: constructed by the author, 2012) Part 1 General Background Literature 2. 1 Management Information Systems (MIS) The literature a bout management information systems (MIS) has been developed since the 1960s. An evolution of MIS can be divided into three periods: data processing, management information systems, and strategic information systems (Somogyi & Galliers, 1987 ). The first era , “data processing”, is mainly focused on improving the efficiency of business through automation of basic information process es with not too much control over planning or resources. he second era, “management information systems”, was concerned about the enhancement of managerial effectiveness by satisfying widespread information requirements. Managers of each organisa tion came to realise the capability of information technology resources and started to acquire their own systems to meet the requirements. The third era, “strategic information systems ”, focused on improving organisa tional competitiveness advantages by affecting the overall organisa tional business strategies. This period is n a pproach to use strategic management in MIS such as various and diverse information technologies, widespread 6 Frame of Reference user involvement, and significant planning and implementation strategies (Beaumaster, 1 999). A variety of the definitions of MIS have been indicated, for example Ives, Hamilton a nd Davis (1980 : p. 910 ) defined MIS as a “computer-based organisa tional information system which provides information support for management activities and functions” which is similar to E in-Dor a nd Segev (1978 : p. 065) who described it thus: “MIS is a system for collecting, sorting, retrieving and processing information which is used, or desired, by one of more manager, in the performance of their duties” . Furthermore, Davies (2009) claimed that MIS is one types of information system that support s the tactical dec ision-making of managers, and also monitors the current state of the organisa tion. Moreover, Kroenke (2007 : p. 5 ) mentioned that MIS has three key elements including: development and use, information system s, and business goals and objectives.

MIS can be named a s a n organisa tional information system, a computerbased information system, or a n information system (IS ; Ives et al. , 1980). Various characteristics of MIS are considered a s important factors for the efficiency of MIS which is to report with fixed and standard information; to have report s developed a nd implemented using information system personnel, including systems analysts and computer programmers; to require formal request s from user; a nd to produce scheduled a nd demanded reports.

In addition, external data a re used by the MIS while it is not captured by the organisa tion (Asemi, Safari & Zavareh, 2011) . Furthermore, Das (2012) discusse d the same area and claimed that a n efficient MIS should contain the following characteristics which include : system capability , modularity, simple, transparent, instinctive , online capability; integration; a nd support from well established and committed suppliers. O n the other hand, the roles of MIS have been described as a useful tool for making business decisions by ga thering data and information from MIS systems (Asemi et al. 2 011). This concept is relatively stated by Das (2012) that MIS is mainly concerned with processing data into information for appropriate decisionmaking. The MIS literature, based primarily on private sector organ isa tions, prescribes performance evaluation on the basis of the economic efficiency of hardware and software (Hamilton & Chervany, 1981). Public organ isa tions also have strong incentives to consider economic costs in decision making, but most face other, equally important competing criteria, such as procedural equity (cited in Bretschneider, 1990).

In addition, Beaumaster (2002) claimed that MIS concentrate on the automation of many business activities that a im to provide better methods of planning, reporting, and operation control. Therefore MIS, which is often referred as “information system (IS)”, has a ttempted to provide methods to manage problems and situations a round a ll perspectives of the management of information (Theiruf, 1994). Moreover, MIS is a facilitator for an organisa tion a nd also support s management activities.

MIS implementation, however, is high priced with costly assets, thus this implementation project requires detailed planning of its design, implementation and operation processes. 7 Frame of Reference 2. 2 Information System (IS) and Information Technology (IT) Information systems (IS) a nd information technologies (IT) a re a v ital component of successful businesses and organisa tions (O’Brien, 2004) . The definition of both IS and IT a re closely related to each other; however, they are different in their functions.

IT relates to the products, methods, inventions, and standard s that are used for the purpose of producing information. It can a lso be defined as “the preparation, collection, transport, retrieval, storage, access, presentation, and transformation of info rmation in all its forms (voice, graphic, text, video, and image ). Information movement can take place between humans, humans and machines, and/or between machines. Information management ensures the proper selection, deployment, administration, operation , maintenance, and evolution of the IT assets consistent with organizational goals and objectives” (Boar, 1993, p. ) . IT refers to the products, methods, inventions, and standard s that are used for the purpose of producing information (Kroenke, 2007). IS “consists of the information technology infrastructure, application systems, and personnel who employ information technology to deliver information and communications services for transaction processing/operations and administration/management of an organisa tion” (Baskerville , Stage, & DeGross, 2 000 ).

Therefore IS is a set of components which interact to produce information, which include hardware, software, data, procedures, and people, whereas these components can be found in every information system (Kroenke, 2 007). According to Figure 2 . 2 , the main elements of IS consist of hardware, software, data, procedures, and people. Hardware refers to computers, storage disk s, keybords, a nd communication devices while software is rele vant to word-processing programs.

Data or information is included texts, words, sentences, a nd paragraphs in reports. Furthermore, procedures refer to the methods for using the program a nd involved activities . The last element is people. The important role of the five components is that IS is not only computers, programs, and communication device s, but it a lso focuses on the assembly of hardware, software, da ta, procedures, and people ; in other words, information system means a system of communication between people (Kroenke, 2007; Davies, 2009 ).

Moreover, Gurbaxani a nd Whang (1991) claimed that there are many roles of information systems in an organisa tion, for example to increase a n operation’s efficiency, to process business transactions, to provide decision support, to monitor and evaluate employees’ performance, a nd to maintain documentation and communication channels. Information technology (IT ; i. e. hardware and sofware) is one significant component in a n information system ( IS). Nowadays, IT is an important factor to evolve in strategic planning of a n organisa tion.

In addition, IT is the asset or capability base on which an enterprise constructs its business information system ( Boar, 1993 ). O n the other hand, the main roles of IT ha ve been ana lysed and presented by Chan (2000) . He claimed that the key roles of IT include a n initiator, a facilitator, and a n enabler. The importance of an initiator in IT is to initiate a new operation, or initiate the change of IT. In addition, a facilitator of IT is a tool which helps to manage work which is easier to work.

Finally, a n enabler of IT offers the ability or the necessary support to a chieve a goal. 8 Frame of Reference Data Procedures Software Hardware Information s ystem (IS) People Figure 2. 2 Five Components of an Information System (IS) (source: Kroenke, 2007 : p. 5) Organisa tions have radically changed their IT strategies a nd one of the strategies that they choose is to purchase standard package software instea d of developing IT systems in-house (Holland & Light, 1999) . The existing application software has been categorised by Kroenke (2007) a s the following: ? ? Horizontal -market application software refers to a software that serves capabilities common a cross all organisa tions and is used in a wide variety of businesses such a s Microsoft Office, Adobe Acrobat ; Vertical -market application software provides for the specific industry requirement, for instance the programs that a re used by parts of warehouses to track inventory, purchase and sales; One-of -a -kind application software is developed in orde r to support a unique need and fit only the organisa tion.

In addtion, Kroenke (2007) a lso explained how a n organisa tion a cquires a pplication software or sources of them. The first approach is to purchase the suit software , called off -the-shelf -software which provides the customer a n exact cost. However, some a pplications in the suit do not fit the organisa tional requirements. The second software sources can be obtained by buying off-the-shelf with alterations software. This software is more expensiv e than the previous software; in spite of that, an altered suit will be more fit than pure off-the-shelf-software.

The last software is called tailor-made application software or custom-developed software . This software is obtained by hiring a v endor to make a custom suit in order to get the applications that exactly fits with their requirements. The existing types and sources of application software were summarised in Figure 2 . 3 by Kroenke (2007). Software Source O ff-the-shelf Software Type O ff-the-shelf and then customised Customdeveloped Horizontal applications Vertical applications O ne-of-a-kind applications Figure 2. 3 Software Sources and Types (source: Kroenke, 2007 : p. 122) 9 Frame of Reference

Two ultimate approaches currently exist for enterprise software (ES) systems including ERP systems a nd “best of breed” (BoB) solutions (Mabert, Soni & Venkataramanan, 2003). Therefore , a n organisa tion should carefully make the decision to implement IT solutions a nd evaluate to ensure that it meets the requirements (Loh & Koh, 2004). For instance, E RP systems are the most preferable method whereas the businesses replace the legacy system (Holland & Light, 1999) . However, ERP system implementation is one of the most challenging project s a nd is not easy to achieve (Gargeya & Brady, 2005).

O n the other hand, BoB is flexible and organisations are a ble to choose from a collection of software applications which a re a ppropriate d with the organisa tion’s requirements (Light et al. , 2 001). Nevertheless, Sledgianowski , Tafti, and Kierstead, (2008) claimed that BoB is require d to develop a n infrastructure (i. e. hardware, software, expertise, etc. ) which would be very expensive. These discussion of E S system approaches a s well as implementation processes of IT solutions will be discussed in fol lowing sections. ERP and BoB Solutions

Many companies started to replace their legacy system with ERP packages in order to solve integration problems during the 1 990s (Hyvonen, 2003). These systems are comprehensive packaged software solutions which aim for total integration of all business processes and functions. Gargeya a nd Brady (20 05) stated that ERP systems had emerged as the core of su ccessful information management a nd the enterprise backbone of the organisa tion. The main benefit of these systems is to provide a common integrated software platform for businesss processes (Parr & Shanks, 20 00).

An E RP system might be used a s a basic platform in many companies, but they also still use some stand alone components, or ERP modules from diffferent vendors (Themistocleous et al. , 2 001 ). On the other hand, some companies without an ERP system still integrate their systems using conventional best of breed (BoB) or stand alone system components of standard package and/or custom software in order to reach flexibility and ability to meet specification organisa tion and industry requirements (Hyv onen, 2003). In contrast, the increasing needs to integrate intra -organisa tional information systems is established .

Sunsequently, many organisa tions are now seeking to integrate inter-organisa tional information systems and E RP systems provide internal integration. As a result, they a re seeking to use ERP systems to establish integration with other supply chain stakeholders (MacKinnon, Grant & Cray, 2008). Taking into account the definition of ERP systems a nd BoB solutions, ERP systems are single vendor software packages which provide best -practice business process functionality cent red around a single database. Many companies a ttempt to modify ERP systems to matc h their existing processes .

However, they have often caused a great deal of trouble, for instance delaying implementation, increasing staff requirements and hampering the upgradeability of the system. O n the other hand, best of breed (BoB) solutions a re combinations of different software packages which provide more limited a nd focused functionality, such as one system for financ e, one for operations, one for human resource management, a nd so forth. Therefore many organisa tions try to mix and match what they consider to be the best collection of software packages to match their organisa tional needs.

These packages are then integrated using some type of middleware. Various advantages of BoB implementation a re considered to be less disruptive to an organisa tion, require less process reengineering, and allow for greater flexibility. However, due to the fact that the packages come from different venders , there a re extensive compatibility and integration is sues (MacKinnon et al. , 2008). In short, the 10 Frame of Reference strengths of the BoB approach can be seen as being centred on the ability of organisa tions to benefit from the most appropriate and the best in class software function available (Light et al. , 2001)

Unfortunately, many organisa tions have faced a challenge with the systems integration which is not only an obstacle of the system, but also the supply chain partners consist of independent systems so that, in some cases, they cannot communicate with each other. In addition, there is a complexity of existing information systems, which in many cases have fixed and rigid structures for mes sages, interfaces and databases (Themistocleous, Irani, & Love, 2 002). Therefore E RP systems have become the resource to support the business processes and increase efficiency and effectiveness of collabolative relationships with actors in the supply chain.

However, ERP systems a re not appropriate for every organisa tion. Many organisa tions which haven’t chosen ERP systems still have some problems with isolated systems. In order to solve these problems, enterprise application integration (EAI) is conducted. E AI or a pplication integration (AI) is adopted to refer to the integration area and is defined as the “unrestricted sharing of information between two or more enterprise applications. A set of technologies that allow the movement and exchange of informatiom between different applications and business processes within a nd between organisa tions” (Linthicum, 1 999 , p. 54 ). To conclude, both a pproaches a re beneficial for an organisa tion which implement a n information system. However, there are many factors that the strategic level or top management should take into account in order to choose the proper information system for implementation within their organisa tion. These MIS implementation aspects including implementation process, implementation challenges, and k ey issues for success implementation will be described in the following part . Part II MIS Implementation Literature . 3 MIS Implementation Aspects In this part, I will describe the implementation process together with challenges a nd success key issues. The following section seeks to introduce and describe the MIS implementation process which can be seen as a v ital stage in the deployment of information technology to support the business information systems that a re developed by the organisa tion for employees, customers, and other business stakeholders (O’Brien, 2 004). 2. 3. 1 MIS Implementation Process

This part will discuss the implementation process which in this study is a lso referred to as the “information system development process”. The implementation of new information systems is a significant investment for organ isa tions. Since information systems are sociotechnical systems, development involves the joint design of activity systems and ICT systems (Davies, 2009). It is important to define the key stages of the information system implementation process. Consequently, Davies (2009) presented information system implementation stages which a re concerned with a number of key activities in the process.

In addition, this information system implementation process concept is similar to O’Brien (2004) who explained a five-step process called the information systems 11 Frame of Reference development cycle which includes the steps of: (1) investigation; (2) analysis; (3) design; (4) implementation; a nd (5) maintenance (see Figure 2 . 4). The first phase of information system development process is systems investigation or system conception which is aimed to determine how, based on informatics planning and management , to develop a project management plan and obtain management approval .

Systems a nalysis is focused on identifying the information needs and developing the functional requirements of a system. Systems sesign is the process of planning a technical arte fact and developing specifications for hardware, software, data, people, and network. In add ition, this phase invloves building the information system to its specifications. System implementation invloves delivery of systems, test ing the system, training people to use the system, a nd converting to the new business system.

Finally, system maintenance is the process of making necessary changes to the functionality of an information system (O’Brien, 2004; Davies, 2 009). Nontehless, Z mud a nd Cox (1979) defined, traditionally, the MIS implementation stage which invlove s different related a ctivities including: initiation, strategic design, technical design, development, conversion, and evalution . E ach implementation stage can be described a s follows: initiation includes project definition and justification; strategic design refers to establishing the scope and requirement of a project (i. . design attribute visible to the users); technical design involves translating the strategic design into hardware, software, and process specifications ( i. e. design attributes not visible to the users); development concerns the acquisition of hardware , the acquisition and construction of software, and the testing of both hardware and software; conversion relates to the insertion of the new information system into the organisa tion; finally, evaluation a ssesses the effectiveness and efficiency of the MIS. Figure 2. Information System Development Cycles (source: O’Brien, 2004 : p. 345) 12 Frame of Reference One of the most important processes of IT implementation is the initial part of the project or strategic planning of IT. Nowadays, many c ompanies focus on their startegic planning with a ims to develop long-term plans, change their organisa tion, a nd improve their competitiveness (Gunasekaran & Ngai, 2004). Planning is a major issue for the IT implementation process, and IT planning can be defined as “organisa tional a ctivities directed oward (1) recognising organisa tional opportunities for using information technology; (2) determining the resource requirements to exploit these opportunities ; a nd (3) developing strategies and action plans for rel ising these opportunities and meeting the resource needs” (Boynton & Zmud, 1 987 : p. 5 9 ). However, before implementation, it is important to v iew the business model , a nd then identify suitable IT systems requirements (Gunasekaran & Ngai, 2004).

In order to increase the effective IT planning process , therefore, Boynton a nd Z mud (1987) suggested nine planning agenda. This IT planning agenda points out v arious issues that managers or organisa tions require giving a ttention to, including: (1) intra -organisa tional political analysis; (2) intra -organisa tional market a nalysis; (3) business strategy analysis ; (4) business market analysis ; (5) technology analysis ; (6) organisa tional learning analysis ; (7) organisa tional culture ; (8) IT infrastruc ture a nalysis; a nd (9) IT risk -taking analysis.

In IT projects management, IT planning is a significant process and Bailey (1998) a lso mentioned three approaches for planning in project management which a re: linear planning, exploratory planning, and personal planning. Furthermore, implementation of IT systems requires a project management approach a dministrat ed by the right team for the planning and implementation of the IT project . This process should be supported by top management in order to achieve the successful IT project (Gunasekaran & Ngai, 2004).

O n the IT procurement process, Beaumaster (2002) claimed that IT procurement involves all aspects of IT acquisition not only the software and hardware, but also various services, support personnel, intellectual properties, and items related to information technologies. Furthermore, Beaumaster (2002) provided the nesessary functions in t his process including: investment analysis, risk assessment analysis, life cycle planning, and systems acquisition. Various factors required, a ccording to Beaumaster (2002) regarding IT implementation, concern putting the system into practice, managing change, developing skill s, training a nd evaluation.

In order to achieve implementation goals and objectives, Gunasekaran a nd Ngai (2004) claimed that successful implementation of IT needs a strong project team which can include key and IT knowledge mana gers from all functional areas. Moreover, they suggested that education and training are the most i mportant factors of a ny change process in an organisa tion and the users need to be motivated to work in a transparent and open communication environment. O ne of the important factors in IT implementation is that top management support and a re involved in order to successfully implement the IT solution (Gunasekaran & Ngai, 2004).

According to O’Brien (2004), the information systems implementation activities involve hardware and software acquisition, software development, testing of progra ms and procedures, development of documentation, and a v ariety of conversation alternatives. Also, education and training of end-users and specialists who will operate a new informtion system are involved. The first step, acquisition of hardware, software, and services, concerns how the organisa tions evaluate and select the hardware, software, and IT services; thus a ll hardware and software requirements are set up.

Most large 13 Frame of Reference organisa tions both in private and public sect ors formalise these requirements by list ing them in a document called a n RFP (request for proposal) or RFQ (request for quotation). Then these requirement document s a re sent to the suitable vendors and the a greement is signed. The next step is concerned with development or modification of software application in order to meet the organ isa tion’s requirements.

The third stage is a vital implementation activity which involves the education of a nd training of the IS personnel such as end-users a nd user consultant s. They have to learn how the new technology impacts the organisa tion’s business process es a nd management. The fourth step concerns developing documentation for the system’s users. Finally, t he last step is the conversion process which concerns changing the a pproaches from the old systems to new systems. Conversions can be achieved on a parallel basis, phases basis, pilot onversion, and plunging in to a new system. (O’Brien, 2004). Another perspective of implementation process was stated by Kuruppuarachchi , Mandal a nd Smoth (2002), who presented the phases and main functions of IT projects that are similar as the literature mentioned previously . These phases consist of project initiation, requirement definition, acquisition/development, implementation, and termination. In a ddition, they claimed that every IT project should carry out quality control, risk management, a nd change management over the entire life cycle of th e project.

In order to achieve IT project implementation, Kuruppuarachchi et al. (2002) also explain ed that the manager should meet these three basic requirements that include : (1) a clear business objective; (2) understand the nature of the change; a nd (3) unde rstanding the project risk , in order to achieve IT project implementation . This section has presented various views a nd perspectives of MIS implementation or “IS development and deployment ” processes which provide general knowledge in order to perceive this study.

In the following section, MIS implementation challenges are described. 2. 3. 2 MIS Implementation Challenges From previous research, Beaumaster (1999) identified and categorised problematics issues regarding the IT implementation. These issues create or worsen the implementation problems (summarised in Table 2 . 1 ). The more specific categorisa tions of the issues can be viewed as: management process issues, organ isa tional environment issues, leadership issues, technical systems issues, and personnel issues. ? ? ? ? Management p rocess issues speak to the functional operation of a n organisa tion such a s budgeting, personnel, and general management. Organisa tional environment issues a re identified as factors which are less tangible such a s organisa tional culture, change, and behaviour. Leadership issues relate to the a reas which involve the interaction and direction of the organisa tion executive. Technical systems issues a re mainly those referring to the hardware and software considerations of information technologies.

P ersonnel issues a re those issues surrounding each individual in the organ isa tion. These issues impact the planning, procurement, and deployment of information system s in their organisa tions. In this study, these categorisa tions of information system issues will be the frame of study in terms of challenges or problems that an organisa tion faces when a new information system is implemented. 14 Frame of Reference In addition, Kwon a nd Z mud (1987) claimed that MIS implementation processes a re not easy to achieve .

They also identified some issues which many organisa tions have faced a nd these factors also impact organisa tional processes and products associated with each implementation stage . These factors include characteristics of the organisa tion (specialisa tion, central isa tion, formal isa tion), characteristics of the technology being a dopted (complexity), characteristics of the task to which the technology is being applied (task uncertainty, autonomy and responsibility of person performing the task, task variety), and characteristics of the organisa tional environment (uncertainty, interorganisa tional dependence).

Another perspective of MIS implementation challenges is also presented by Lucey (2005) that the problems relate to MIS implementation include the following: lack of management in the design phase of the MIS, inappropriate emphasis of the computer system, undue focus on low -level data processing applicatons particularly in the accounting area, lack of management knowledge of computer s, poor a ppreciation by information specialists of ma nagement’s true information requirements a nd of organisa tional problems, and lack of top management support.

In this study, as a result, the categorisa tion of implementation challenge issues in Table 2 . 1 presented by Beaumaster (1990) , will be used a s a framework. This framework will be based using a nalysis in part in order to fulfil the purpose of this research. However, in order to achieve MIS implementation, the key issues to success of the implementation process should be presented in the following section. Table 2. 1 C ategorisation of Information System (IS) Implementation Challenge Issues (source: Beaumaster, 1999: p. 10) L eadership Issue Management Process Issues

O rganisation Environment Issues Organisational C ulture Technical Systems Issues Existing Systems Personnel Issues Interdepartmental C oordination Stategic Planning Organisational Expertise Individual Support Budgeting Internal and External Politics Standard isation Individual Expertise Organisational Support Organisational Directives C ontracts C ompatibility Internal Leadership Timeframes and Scheduling Written Guidelines C hanging Technologies Staffing External C onsultants Resistance to C hange Training 15 Frame of Reference 2. 3. 3 Key Issues for MIS Implementation Success

In this study, the k ey issues to successfully a chieve MIS implementation can be defined in the same meaning as success factors. Most concepts of success factors in the IS literature a re described as critical success factors (CSFs). CSFs in the information system (IS) literature is well e stablished for numerous context s such as requirement analysis, IS planning, a nd project management ( Somers & Nelson, 2001). Most of the literature in CSFs have been identified for ERP syst ems implementation whch are favourites a nd worldwide information systems in many companies.

These CSFs are investigated by many researchers such as Nah, Lau a nd Kuang (2001) who presented 1 1 factors that were critical to ERP implementation success. Moreover, Motwani, Subramanian, a nd Gopalakrishna (2005) investigated the factors facilitat ing a nd inhibiting the success of ERP projects and identified CSFs during ERP implementation stages. The CSFs can be viewed as situated exemplars that help extend the boundaries of process improvement, a nd whose effect is much richer if viewed within the context of their importance in each stage of the implemenatation process (Somers & Nelson, 2001).

Boynton a nd Z mud (1984) claim that the CSFs method can be applied a s a means of supporting both MIS planninng and requirements analysis. In addition, they described the concept of CSFs as those few things that must go well to ensure success for a manager or an organisa tion. According to Gargeya a nd Brady (2005), they identified six factors both for success and failure of ERP implementation and they a lso claimed that the managers should concentrate on these factors which contribute to a void the failure and gu arantee the success of ERP implementation.

Referring to Lucey (2005) , CSFs may also help to clarify a nd refine the organisa tion’ s information requirement s. When the CSFs are identified the information system should be tailored to provide specific, detailed information that enables management to monitor progress towards meeting those objectives. There are many investigatations of IT project implementation success factors . One study from Slevin and Pinto (1986) presented a list of success factors which are the same as the Project Management Institute’s P roject Management Handbook (Pinto, 1998).

Also, Tan (1996) present ed a set of success factors including technical chara cteristics, user involvement, communications, management support, project team characteristics, difference between technology provider and receiver, incentives, infrastructure support a nd obstacles, to identify their effects on external technology transfer project . Moreover, a list of success factors a re also drawn up by Milis a nd Mercken (2002), who found a large number of possible success factors a nd also provided an overview of the possible success factors regarding IT project implementation.

However, in conclusion , they can group the success factors into four categories as follow s. The first category integrates factors which influence goal congruency. The second category contains the components that relate to project team in order to improve the motivation and cooperation of the team. The third category concentrate s on the acceptance of the project and the result. Finally, the fourth category is concerned with the implementation process which deal s with implementation politics and planning.

In order to enable the reader easily perc eive this, the list of key issues regarding successful MIS implementation is drawn up and categor ised a nd presented in Table 2 . 2. The list of success factors is presented based on the literature , a nd categorised along with its key factors. As me ntioned before, this summary of success k ey factors in this study is not only obtained from ERP systems implementation literatue , but also from information system (IS) and information technology (IT) project implementation. In a ddition, the theory will be used to discuss in the a nalysis part. 16 Frame of Reference Table 2. Summary of Key Issues for Implementation Success (source: constructed by the author, 2012) Category Project Definition/Mission

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