Why companies often struggle with information systems implementation

 

Hello everybody, I'm back again to discuss why companies struggle with information systems implementation.
There can be a number of reasons why companies struggle with Information Systems Implementation, and I have highlighted a few of these reasons below.

Budget Allocation

To implement IT systems effectively there needs to be a considerable amount of investment in it. One of the key reasons as to why companies fail to implement the IT systems is that the budget isn’t scaled properly and in general it can go way over the budget and becomes too expensive, and the project ends up being abandoned. An example is when Levi Strauss hired consultants to implement a single sap system and they set the budget at $5 million but they spent $192.5 million (Kayisli, 2015).

Training employees is time consuming

To train employees about new IT systems it can take a lot of time, effort, and money. For everyone to understand the new system they must be trained, which can often be other employees of the company training their fellow colleagues meaning that they are taking time away from there job, which is not the most effective method.

Resistance to Change

Many workplaces fail to implement new IT systems as many employees have a resistance to change and potentially a negative attitude towards these systems. Employees may also feel their position in the workplace is under threat with these new systems and don’t want to try to learn how to use these systems properly. Employees also can feel a sense of uncertainty with new systems and would prefer to stick to what they know.

Scale of the IT System Implementation

IT systems can fail as it is far too big a project to take on for a company and can be too complicated. Companies need to scale moderately and allow for imperfections in the original stages of implementing new IT Systems. An example of a project being too big is when the US Navy lost over $1 billion on implementing four ERP systems, which failed (Zorc,2023). 

Thanks for reading my blog, don't forget to share and comment any ideas you may have, I will be back again next week with another blog!