IT-Enabled Business Change: An Approach to Understanding and Managing Risk
Name
MIT_CISRwp346_ITEnabledBusChange.pdf
Size
414.62 KB
Format
Adobe PDF
Checksum (MD5)
db0103b273742feb5ca032d7383f98ab
Author(s)
Gibson, Cyrus
Date Issued
September 4, 2004
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Gibson, Cyrus. “IT-Enabled Business Change: An Approach to Understanding and Managing Risk.” Working paper 346, Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology, 2004. https://dspace.mit.edu/handle/1721.1/175354.
Series/Report no.
MIT Sloan School of Management Working Paper 4520-04
CISR Working Paper 346
Abstract
IT projects aimed at enabling business change have become larger and more critical in recent years. But despite improved technical functionality and reliability there are persistent project overruns, delays and downright failure. A recent summary estimated that 30 to 70% of IT projects aimed at process improvement do not live up to expectations. This echoes early research on IT project implementation. With major IT-enabled process changes, involved in ERP, CRM, and SCM projects, major delays and overruns can result in missing revenue and profit targets for firms. Over the years the stakes have grown but business still has problems in managing IT-enabled projects. This paper addresses why and what can be done. It is argued that the problem stems from senior and project management failing to take three steps: (1) assessing the risks of the change up front (the most serious are the changes needed in the business, not the changes in the technology; (2) mitigating the causes of highest risk at the front end and as the project progresses; and (3) adjusting the method of project management to minimize the remaining risks. This assess-mitigate-adjust approach aims to minimize the risks over a project's lifecycle and thereby increase the changes of success.
Subjects
Assessing Performance and Value
IT-Related Business Risk
IT-based Business Transformation
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