The Impact of Technology Insertion on Organisations

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HFIDTC/2/12.2.1/1 Version 3 / 21 November 2007 8 <strong>The</strong> Introduction <strong>of</strong> <strong>Technology</strong> 8.1 <strong>The</strong> Reality <strong>of</strong> <strong>Technology</strong> <strong>Insertion</strong> in Organisations Organisational power politics play a crucial role in determining whether and how new technology is introduced. In his research in engineering companies, Burnes [177] found that the main motive for introducing new technologies was the belief that new technology was ‘the future’, whilst very little thought was given to why this should be the case, or whether technology was appropriate. Langley and Taux [129] found that the adoption <strong>of</strong> new technology in small companies seemed to involve three interrelated processes: 1. <strong>The</strong> strategic commitment process; an ‘incubation period’ during which managers’ commitment to new technology fluctuates according to changes in information, context and other decisions. 2. <strong>The</strong> technology choice process; this involves defining the technological needs and priorities through investigation and analysis. 3. <strong>The</strong> financial justification process; which involves the preparation <strong>of</strong> formal proposals for the choice <strong>of</strong> new technology, emphasising financial results and market potential. Blackler and Brown [178] identified three ways in which technology is introduced; 1. <strong>The</strong> muddle through approach. This approach results from management teams that have no long-term goals and a very limited understanding <strong>of</strong> technology and organisational design. Blackler and Brown discovered that the ‘muddle through approach’ is surprisingly common. 2. <strong>The</strong> task and technology approach. This route is <strong>of</strong>ten perceived as good management practice as it focuses on control, careful planning, cost-benefit analysis and evaluation <strong>of</strong> new technology. However, it also takes a limited view <strong>of</strong> the scope <strong>of</strong> the technology, with wider issues such as organisational impact not being addressed. 3. <strong>The</strong> organisation and end user approach. Typically produces less predictable solutions than the task and technology orientation. Underlying this approach is a positive view <strong>of</strong> people and their value as well as a determination to only select technologies that will meet wider organisational needs. <strong>The</strong> introduction <strong>of</strong> new technology is embraced as an excellent opportunity to review and change existing organisational structures and processes. <strong>The</strong> organisation and end user approach involves considerable participation in system design by potential users <strong>of</strong> new technology. This approach follows from the sociotechnical systems theory and focuses on the idea that employees can contribute at all stages <strong>of</strong> the process <strong>of</strong> bringing in new technologies. Processes may include specification <strong>of</strong> system objectives, criteria to evaluate the new technology, pilot schemes, evaluation studies and user support. Implementing this process is difficult to achieve for a number <strong>of</strong> reasons. Although employees can provide valuable insight on what will and 39
HFIDTC/2/12.2.1/1 Version 3 / 21 November 2007 will not work, technical experts may feel threatened by such an approach. Often experts have a very well defined product to sell, which can only be modified very slightly to fit the circumstances. A further difficulty is that technical experts can struggle in explaining new technology in language that non-specialists can understand. This reduces the opportunity for non-specialists to influence systems implementation projects. Blackler et al [178] found that it is difficult to successfully implement a participative approach to new technology and this is the case with the organisation and end user approach, in which end user participation plays a key role. 8.1.1 Method <strong>of</strong> Implementation <strong>The</strong> method <strong>of</strong> implementation will affect how users and organisations adapt to the introduction <strong>of</strong> new technologies. Five key strategies for the implementation <strong>of</strong> IT can be identified and are illustrated in Figure 6. Revolution Revolution Evolution Evolution 1. Big Bang 1. Big Bang 2. Parallel Running 2. Parallel Running 3. Phased Introduction 3. Phased Introduction 4. Trials and Dissemination 4. Trials and Dissemination 5. Incremental Evolution 5. Incremental Evolution Figure 6: Implementation Planning (Source: Eason, 1988) User Adaptation User Adaptation Difficult Difficult Easy Easy When a new system needs to be implemented, there are five different ways to adopt this new system: the big bang approach, phased introduction, parallel running, trials and dissemination or incremental evolution. <strong>The</strong>se are methods for delivering the application or system to the end user; in themselves they do not constitute a strategy but a method or structure for installing the system. <strong>The</strong> method chosen will depend upon the circumstances <strong>of</strong> the organisation (time constraints, resources available), the environment into which the system is being implemented (level <strong>of</strong> potential resistance, skills or knowledge level) and the system design (technical capabilities). Stakeholder considerations need to be taken into account as well as the requirements <strong>of</strong> the business and costs. Selecting an implementation plan involves prioritising the goals to be achieved and matching a strategy against these [62]. With the big bang adoption, the switch between using the old system and using the new system happens at one single date, with an instant changeover <strong>of</strong> the system. Everybody begins using the new system at the same time and the old system is discarded. <strong>The</strong> big bang adoption type is riskier than other approaches as there are fewer learning opportunities incorporated in the approach. Considerable preparation is needed to get this to work smoothly [62]. This approach may be necessary where no previous IT system 40
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The Impact of Technology Insertion on Organisations

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