International Multifoods
Case A – Key Lessons Learned
- It is extraordinarily difficult is to actively map business and technology objectives with one another and realize both in the process of organizational change. This takes a wholehearted commitment to redesign the business, not just the information technology. Strategic use of IT requires strategic effort on the part of many aspects of the business, not just IT.
- The options for managing a project are not only a function of the project but of the surrounding business context. Project managers must "see beyond the project to the business" as they identify choices and form approaches on how to proceed with a project.
- Context factors include opportunities and limitations. Business issues such as resources, expertise and history of IT success must all be considered.
- Too much reliance on the expertise of consultants can put a project at risk; assess this risk and be sure you are satisfied with the balance between internal and external expertise on a project.
- Much of reality of systems design and implementation is managing crises and dealing with major setbacks and unforeseen difficulties. Even projects that are well managed can reach a crisis stage. Plan for implementation problems and figure out in advance how you will address them.
Case B – Key Lessons Learned
- Business unit independence has many virtues, but without good parent-subsidiary communication, problems can grow and crises can ensue. Clear and timely communication, in both directions, is absolutely critical.
- Top management "support" or "approval" is a necessary but far from sufficient condition for IT project success.
- Designing a new system today not only involves designing technology and changing the organization but changing the value chain. Customers, suppliers, and contractors are all affected. Keep in mind the following when designing strategically-oriented, large scale information systems:
- Make centralization-decentralization decisions based on thorough analysis of the business not just the technology.
- Consider implementing the project as small, iterative chunks that cumulatively bring major impact but individually allow for control and positive impact.
- Successful projects include mechanisms that foster measurement and control, but they also require support for trust and innovation. Perfect the project team not just the system.
- Systems without services bring little value added to the customer. Develop customer services, not just technology.
- Customer satisfaction is everything. Alienate your customers and you are dead. IMC failed to incorporate customers’ business processes in the design of their system and in the process of implementation and management of change.
- Remember that relationship management is as important as information management. Don’t neglect either of these.
- Every system is a global system. Impacts of even a US-based vending service firm had to consider currency issues, ramifications felt across time and space, and these global implications must be considered in the design process.
- Crisis management requires "bail and row" strategy. At the same time you are stopping the crisis, you also have to keep the project (and the company) moving forward. People need realism, action, and hope.
- The rewards of crisis management can be enormous for those who pull through it.
Exhibit B
Reasons for Failure: A Retrospective
(Reflections by Devendra Mishra in 1997)
- Drastic transformation from a cottage industry driven by personal touch to one with centralized and computerized interface.
- Huge change for the customer. Lost of the personal touch for the customer in an industry with no barriers to entry. Customers perceived the system to be impersonal and bureaucratic.
- Customer requirements totally overlooked and customer involvement avoided.
- Absence of management buy-in to the program.
- Negative customer perception about the system which was presented as being internally focused without customer benefits.
- Unrealistic objectives for project implementation in terms of benefits and time line.
- People and not system provide solutions to problems.
- Inadequate involvement of users.
- Excessive options in system design leading to complexity
- Automation of complex and non-standardized operations.
- Totally customized software.