The Management of

IT Adoption,
Implementation and Use
Malabrigo, Evangerica C.
 Stages Theory of IT Adoption
The stages theory, a set of concepts for understanding the assimilation of IT in
business organizations, was first proposed in the early 1970s.
In the early 1970s, most firms used computers for data processing.
As the next few decades unfolded, new IT and applications–MIS, minicomputers,
DSS, personal computers, expert systems, CAD/CAM, videoconferencing, and
others–were introduced to organizations.
As organizations “learn” how to utilize IT, they spend more and more money to
develop this capability. Expenditures accelerate into a growth period, then
decelerate and mature into slow-paced steady growth.
 Stages Theory of IT Adoption

Stage I – Initiation
• Data-processing technologies are first introduced into an organization’s
administrative operations for automation of systems such as payroll or
accounts receivable
 Stages Theory of IT Adoption
Stage II – Contagion
• Learning curve moves sharply upward as increasing numbers of
individuals or units adopt the technology, and as organizational members
experiment with new uses for it.
• Experimentation is more heavily emphasized than is efficiency.
• Management creates some organizational slack, committing more
resources than are strictly necessary to get the job done.
• With low control and high slack, adoption and usage grows rapidly, but at
the loss of some efficiency.
 Stages Theory of IT Adoption
Stage III – Control
• By the end of stage II, the IT budget may be outpacing revenue growth, alarming
senior management. Managers “squeeze-out” slack by enforcing tighter control
through measures such as budget reviews and full chargeout systems.
• High control and low slack promote efficiency but inhibit learning, which may also
discourage diffusion of the technology to other organizational functions.
• Striking the proper balance between control and slack is a critical management
task.
 Stages Theory of IT Adoption

Stage IV – Integration
• Management succeeds in striking a balance between slack and
control as the new technology becomes firmly integrated into
the company’s operational business processes.
Strategic consideration in
IT development
Functions of the Management

Planning • Establishing organizational goals

• Developing strategies to achieve goals

Organizing • Developing the structure of the organization

• Acquiring human resources

Leading • Motivating and managing employees

• Forming task groups

Controlling • Evaluating performance

• Controlling the organization’s resources

Table 1-1 Managerial Functions

Information System Planning Strategies
Three (3) methodologies that is fundamental to the establishment of
information systems plans that serve the needs of managers.

Purpose Method Developer

To specify problems and decisions Business Systems Planning IBM
(BSP)
To define critical success factors Critical Success Factor (CSF) Rockart
To specify effectiveness criteria for outputs Ends/Means (E/M) Analysis Wetherbe
and efficiency criteria for processes

Table 1-2 Information Planning Approaches

 Business Systems Planning (BSP) Method

• an approach used to assist a business in developing an information

systems plan that supports both shot- and long-term information needs.
• The goal is to provide a formal, objective method for management to
establish information systems priorities that support business needs.
 Critical Success Factor (CSF) Method

• Attempts to overcome limitations of the by-product technique and other

reporting methods by focusing on the individual manager’s information
needs
• Helps managers define their information needs.
 Ends/Means (E/M) Analysis Method

• Its purpose is to determine effectiveness criteria for outputs and to specify

efficiency criteria for processes used to generate outputs.
• Seeks to determine information requirements using a simple,
straightforward approach.
Three (3) Methodologies

CSF Critical Success Factors Information

BSP Problems Solutions Information

E/M Ends Effectiveness Information

Means Efficiency Information

Table 1-3 Information Requirements Definition Approaches

SDLC Process
 SDLC Step 1: Systems Strategy

• Assess strategic information needs

o Strategic business needs – all functional areas should support the
business strategy of the organization.
o Legacy Systems – Applications, databases and business processes that
are currently in full operation constitute a firm’s legacy system. Often,
these are complicated systems to maintain and enhance.
o User Feedback – assessing user feedback involves identifying areas of
user needs, preparing written proposals, evaluating each proposal’s
feasibility and contribution to the business plan, and prioritizing individual
projects.
 SDLC Step 1: Systems Strategy

• Develop Strategic Systems Plan

o After assessing strategic information needs, members of the steering
committee and systems professionals evaluate the pros and cons of each
proposal.
o Development will proceed on proposals that show the greatest potential
for supporting the organization’s business objectives at the lower cost.
 SDLC Step 1: Systems Strategy
• Create and Action Plan
o Use of Balance Scorecard (BSC), a management system that enables
organizations to clarify their vision and strategy and translate them into
action. BSC suggest to view the organization from four perspectives:
1. The learning growth perspective
(employee training, corporate cultural attitudes self improvement)
2. The internal business process perspective
(metrics based on this perspective to know whether its products and services conform
to customer requirements.)
3. The customer perspective
(customer retention rate, market research and customer satisfaction survey)
4. The financial perspective
(traditional measurements, i.e., profitability, revenues and sales)
Participants in Strategic Planning

The players – major participants in the strategy process

 Participation in strategic planning

1. Executive strategy team (led by the CIO) - responsible for developing

the strategy
• While accountants count revenue, programmers count function points,
marketers count accounts, and operations count outages, strategists count
advantages.
• A team of “Art of War” strategists has three attributes:
1. They create unique analytical frameworks to understand the current situation.
2. Members have internalized strategy—their thoughts, actions, and perspectives
are strategy-centric.
3. Members have achieved a strategy state of being—strategy is not superimposed
on them; they emanate strategy.
 Participation in strategic planning
2. Support team – provides the support function to the strategy team.
• They are responsible for
o managing the process,
o maintaining the process documentation,
o providing expertise in methods,
o preparing straw persons and drafts for strategy team review,
o coordinating meetings and read-outs,
o conducting quality control,
o coordinating education, and
o guiding and facilitating debate.

• A competent support team is a critical success factor for the process.

 Participation in strategic planning

3. Stakeholders – individuals within or outside the organization who have

interest in the system but are not end users.
• represent key middle- and lower-level members of the organization hierarchy
who provide input and advice and are the primary implementers of the
strategy.
o Accountants
o External auditors
Job Functions, Organization and
Reporting relationships of the
IT Department
 Functions of IT Department

• Systems Development
• Operations
o Equipment Operations
o Productions Support
• Technical Support
o End-User Services
o Systems Programming
o Database Administration
Systems Development

• Purpose. To develop new applications and to maintain existing ones.

• System Developer – has to analyze the application are, determine its
requirements, and design and program the actual computer-based
information system.
Operations

• Equipment Operations – data preparation, one of the reponsibiities of

operations
• Productions Support – schedules the running of the computer center and
controls jobs (programs) in terms of priorities, based upon when output is
required
Technical Support

• Meant to support both systems development and operations functions.

• Key areas:
o End-User Services – help users gain access to computer-center facilities, conduct
training courses, and troubleshoot when users have problems with their computer
support.
o Systems Programming – install the computer’s operating system, tailor it and
maintain it, and improve the efficiency of application programs.
o Database Administration
o Set up and administer the organization’s data base.
o Establish data requirements of the enterprise; set up the database; controll security and
provide backup to the data; and help the systems development staff use the data in
designing computer-based information system.
IT Department
 IT Department Main Sections
Section
Hardware Infrastructure Mandatory: This section is concerned with managing the hardware
requirements, the hardware inventory and the policies and rules of hardware
management.
Network Support Mandatory: This section is responsible for the development of communications,
networking, and systems standards and policies for connected computing
environments
System Support Mandatory: The system support is responsible for the mission-critical and
production-support functions.
User Support Mandatory: This section is has the responsibility of first-level problem
resolution. It provides a central point of contact for customer help, problem
status, and feedback to customers
Database Support Database Systems, information, and knowledge need support
Management Support Considerable size and logistics
Quality Management Needed on all states except the starting state
Security Support Needed on all states except the starting state
Application Support Business Applications exists and need support
Software Support Integration and reporting is needed
IT Department Comprehensive
Chart with roles
 SDLC Step 2: Project Initiation

Project Initiation – proposals are assessed for consistency with the

strategic systems plan and evaluated in terms of their feasibility and
cost-benefit characteristics

Make or buy?
In-house development or commercial package.
 SDLC Step 2: Project Initiation

• In-house Development – steps which a unique information needs can

be adequately met only by internal development
o includes analyzing user needs, designing process and databases.
o Creating user views, programming the applications and testing and
implementing the completed system
 SDLC Step 2: Project Initiation

• Commercial Packages – pre-coded commercial software packages

• Formal procedures need to be followed to ensure that the user gets a
package that adequately meets his or her needs and is compatible with
existing systems
• Advantages of commercial software
o Lower initial cost
o Shorter implementation time
o Better controls
o Rigorous vendor testing
Participants in Systems Development

(1) Systems Professionals

• individuals that build the system
• They gather facts about problems with current system, analyze these
facts, and formulate a solution to solve the problems.

Examples:
o Systems analysts
o Systems designers
o Programmers
Participants in Systems Development
(2) End Users
• those whom the system is built.
• During systems development, systems professionals work with the primary
users to obtain an understanding of the user’s problems and clear
statement of their needs.

Examples:
o Managers
o Operations personnel
o Accountants
o Internal auditors
Participants in Systems Development

(3) Stakeholders
• individuals within or outside the organization who have interest
in the system but are not end users.

Examples:
o Accountants
o External auditors
SOURCES:
• R. Schultheis & M. Sumner, “Management Information Systems The Manager’s View”, 3rd Ed,
1995
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