Prepare a paper that critically discusses how organisations apply the strategic use of IS/IT to achieve IS/IT-enabled innovation.
IT (information technology)/ IS (Information System) is one of the most prominent technology of the current era and have changed the way and working perspective & approach of the industries (Orlikowski et al. 2016). The organisational operations from customer management to internal operations and all the other prominent operations have earned a buff in their productivity due to the adoption of the subject of the paper (Eason 2014). The paper in discussion will discuss some examples of the IT/ IS that have changed the status and the functionality of the system owning entity, in the process raising the standard of the organisation and its offerings (Lowry et al. 2015). The examples may even cite examples of the IT/ IS that made some major errors in the adoption process of the subject which resulted in major catastrophic situation development for them. Post the discussion the paper will be summarised as the conclusion along with some recommendations capable of ensuring the success of the IS/ IT in an organisation which in the process will offer sustainability to the owner.
Several examples are available that cites the importance of the IT/IS in the organisation and few of them has been discussed. The success that has been offered to the Toyota Motors and the K Tire has been discussed (Han and Park 2017; Toivonen 2015). While the adverse effect that FoxMeyer and NHS IT/ IS had are also discussed (Ravaghi, Mannion and Sajadi 2015; Wong, Li and Laplante 2017).
Toyota is considered to be one of the most prominent leaders in the lean manufacturing and its reliance over the technology increased after it adopted just-in-time (JIT) manufacturing. Post world war II Toyota changed its approach towards the IT which assisted it in emerging as one of the global leaders in vehicle industry. The IT/ IS innovation of the Toyota is understandable by the fact that it has a department devoted to the IS going by the name of ISM (Information System Methodology) that within itself hosts a set of IT processes by name of ISPM (Information System Project Methodology). The ISPM holds the processes that are responsible for the SDLC (software development lifecycle) and the governing business process. The TQM (Total Quality Management) system of Toyota adopted in 1961enables it to continuously improve its process with the most disruptive technologies.
K Tire, a Korean tire company proved itself to be one of the most prominent leader in the tire manufacturing industry (Han and Park 2017). The organisation is the first organisation to adopt RFID technology as part of the its manufacturing processes. The organisation developed its IT infrastructure based on the RFID (Radio Frequency Identification) rather than its counterparts that had placed barcode as the centre for their IT infrastructure. RFID provided the benefits of faster tag readings, freedom of placement (even not in line of sight), reading of multiple tags and many other over the barcode which made the IT infrastructure of the organisation more innovative, reliable and productive (Hanwate and Thakare 2015).
NHS NPfIT (National programme for IT) was a health IT program that would have offered prominent benefits to the healthcare industry by the government of UK (Casey, Wainwright and Waring 2015). The program was scrapped after a huge time period of 7 years which consumed a lot of budget, time and effort from the stakeholders. The reason for the failure of the programs were mostly associated with the inefficient planning and strategizing for the use and development of the IT/ IS, the low graded quality of the tools and techniques and other factors that needs adequate management of the IT/ IS (Magrabi et al. 2015).
Another of the cases that can be cited as one of the most prominent example of the IT failure is the case of FoxMeyer. The organisation in consideration was considered to be the fifth largest drug wholesaler of the US with a turnover of $5 billion plus in the year 1995 (Alami 2016). In the deemed scenario the threat was such far the organisation became bankrupt in just one year of the failure. The organisation bought its IS system in the year of 1993 from the SAP but improper implementation, internal environment and the planning lead to such a catastrophic result for the organisation (Fadlalla and Amani 2015). The factors for the failure of the system in consideration are considered as one of the most prominent research subject for an adequate IT/ IS.
The positive examples will assist in understanding of the positive and successful factors for IT/ IS while the disturbing factors from the negative experience of the IT/ IS failure will be used to devise constraining factors for the subject (Schwalbe 2015). The following sections has discussed the examples and the barrier or enablers that formulates the impact of the IT/ IS implementation in an organisation.
The success factor for the successful adoption of the IT/ IS can be derived from the examples discussed above and different scholarly work that cites reference to the factors associated with success or can lead to failure of the subject.
Well-Defined Motive:One of the core factors that had been identified as the success of the IT/ IS is a well-defined motive. A well-defined motive enables the owner of the subject in the process of the development of the subject, its implementation and its use as well. If the system is designed according to the needs and requirements of the organisation that will make it compatible with the organisational infrastructure. Additionally, the compatibility in discussion offers the advantage of having a successful implementation of the subject which includes the training of the internal stakeholders. A successful development and implement makes the subject vital and compatible for the use in the organisation while enabling control & monitor of the operations.
Selection of Vendor: Another prominent factor that defines the success of the subject is selection of the software or system vendor who products are suitable for the organisational needs. The vitality of the discussed factor could be understood by the case of FoxMeyer because after the bankruptcy of the organisation they filed a case against the SAP claiming that they were the reason for the devastating results. One of the reasons behind the discussion of the deemed factor is the reason that the software and the system defines the security of the same. If the vendor is unreliable than the security of the system that is responsible for the organisational operations and the data may be at risk which the cyber malefactors can use to their advantage. The cyber malefactors may hack in the system compromising the organisational strategy, data and even manipulate the organisational operations. Additionally, the risk will also be associated with the failure of the system which may lead to halting of the organisational operations.
Planning and strategizing: The cases evaluated on the examples above cites that K-tire and Toyota had an adequate planning and strategy for the implementation and use of the subject while NPfIT and FoxMeyer did not cite much focus on the discussed factor. Hence, the deemed factor can be considered as one of the prominent factor that decides the impact of the technology in consideration. Additionally, planning & strategizing the steps from the development/ purchase of the subject to its implementation and use assists in identifying the factors that may act as a barrier to the subject or may play the role of enabler to leverage the subject. On the identification of the constraints, a mitigation plan and on identification of enablers, an amplification plan can be devised which will result in s successful system use within the organisation.
It has been identified that the management plays a crucial role in success of the project that are relevant to the IT/ IS. The reason associated with the fact is that Toyota and K Tire’s management invested their time and effort in the making the project successful while in the case the FoxMeyer and NPfIT management lacked accountability. The lack of accountability by the management offered freedom to the project stakeholders including the external stakeholders such as the system vendor to adopt unethical means. In case of FoxMeyer they were delivered a faulty system while in NPfIT the project stakeholders exceeded the budget and time of the project completion.
It was also identified that the FoxMeyer’s customer and employee was not satisfied with the system which also was considered as a reason for the failure of the system. The lack of training with use of the system also have adverse impact which can be cited from the case of FoxMeyer and the NPfIT.
On the contrary external factors such as the market and technology where the competitors of the k Tire where dependent on barcode and the latter adopted RFID to gain a competitive advantage. So, it would be justified to state that a different approach with consideration of the disruptive technology can offer prominent advantage to the IT/ IS infrastructure of the organisation. One of the factors that lead to failure of the FoxMeyer and NPfIt was lack of communication among the stakeholders which developed a communication and social gap among them decreasing the coordination and hence failure. So, communication, social responsibilities and cultural values also are few factors that needs to be taken in consideration when devising a strategy for the IT/ IS.
NPfIT was a government owned project however, change in government lead to change in management style and eventually some policies which impacted the outcome of the project which can be cited as a crucial factor for the IT/ IS success. The overburdening of the organisational resources including the financial resource lead to failure of the project in discussion and can used to justify the vitality of the financial resource as a crucial factor for the impact of the IT/ IS.
Conclusion/Recommendations
From the above discussion it can be concluded that this report is all about how the four organization that is Toyota, K Tire, FoxMeyer and NHS NPfIT have make use of IS/IT for achieving IS/IT innovation. In the above pages of the report four examples have been discussed for the use of IS/IT innovation. After that some of the success factors required and various lesson learned from the implementation have been discussed in detail. The effect or impact of internal factors and external factors on the success or failure of IS/IT enabled innovation has been discussed in details. Four success factors like well-defined motives, selection of vendor, planning and strategy and lastly system and its channel for the various organization have been discussed in brief. Various kinds of internal factors like organization, individual and management has been discussed in details. After that various external factors like market, industry, social, economic and political factors have been discussed in details. In the end of the report a list of recommendation and guideline which can be for success or organization has been discussed in details.
The report in discussion can be summarised to state that an adequate IT/ IS can offer prominent advantage to the organisation while in the opposite scenario, the subject if not given adequate attention can lead the organisation towards its downfall. Hence, an adequate planning & strategizing along with proper focus and use of the IT/IS can offer innovative advantage to the organisation and should be taken in consideration.
A list of step could have been taken for successful implementation of IS/IT like:
Alami, A., 2016. Why do Projects Fail?. PM World Journal, 5, pp.1-9.
Casey, R., Wainwright, D. and Waring, T., 2015, September. Benefits Realisation of Information Technology in the National Health Service: A Paradigmatic Review. In European Conference on Information Management and Evaluation (p. 37). Academic Conferences International Limited.
Eason, K.D., 2014. Information technology and organisational change. CRC Press.
Fadlalla, A. and Amani, F., 2015. A keyword-based organizing framework for ERP intellectual contributions. Journal of Enterprise Information Management, 28(5), pp.637-657.
Han, J. and Park, C.M., 2017. Case study on adoption of new technology for innovation: Perspective of institutional and corporate entrepreneurship. Asia Pacific Journal of Innovation and Entrepreneurship, 11(2), pp.144-158.
Hanwate, A. and Thakare, P., 2015. SMART TROLLEY USING RFID. International Journal of Research In Science and Engineering e-ISSN, pp.2394-8299.
Lowry, P.B., Posey, C., Bennett, R.B.J. and Roberts, T.L., 2015. Leveraging fairness and reactance theories to deter reactive computer abuse following enhanced organisational information security policies: An empirical study of the influence of counterfactual reasoning and organisational trust. Information Systems Journal, 25(3), pp.193-273.
Magrabi, F., Baker, M., Sinha, I., Ong, M.S., Harrison, S., Kidd, M.R., Runciman, W.B. and Coiera, E., 2015. Clinical safety of England’s national programme for IT: A retrospective analysis of all reported safety events 2005 to 2011. International journal of medical informatics, 84(3), pp.198-206.
Orlikowski, W.J., Walsham, G., Jones, M.R. and DeGross, J.I. eds., 2016. Information technology and changes in organizational work. Springer.
Ravaghi, H., Mannion, R. and Sajadi, H.S., 2015. Organizational failure in an NHS hospital trust: A qualitative study. The health care manager, 34(4), pp.367-375.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Toivonen, T., 2015. Continuous innovation–combining Toyota Kata and TRIZ for sustained innovation. Procedia engineering, 131, pp.963-974.
Wong, W.E., Li, X. and Laplante, P.A., 2017. Be more familiar with our enemies and pave the way forward: A review of the roles bugs played in software failures. Journal of Systems and Software, 133, pp.68-94.
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