CHANGE MANAGEMENT IN INFORMATION SYSTEMS

Importance of a sound understanding of change management in the development of effective information systems

Importance of a sound understanding of change management in the development of effective information systems

Introduction

Internet-based interorganizational systems (IIOS) are Internet-based information systems (ISs) shared by two or more organizations such as extranets, virtual corporations, Internet-based electronic data interchanges (EDIs), and business-to-business electronic commerce (B2B e-commerce; Grossman, 2004). In today's business environment, most organizations face developing an e-business strategy, and the IIOS planning issues are those that appear to have the greatest weight (Finnegan, Galliers, & Powell, 2003; Rodgers, Yen, & Chou, 2002; Salmela & Spil, 2002).

IIOS planning was consistently identified as one of the most critical issues facing IS executives and academic researchers. According to surveys of information systems management issues in the recent decade, improving information systems strategic planning remains among the top ten issues facing IS executives and corporate general managers. The strategic value of Internet-based ISs and the impact of technology innovation on the competitive advantages of businesses have increased the need for effective IIOS planning. Furthermore, as electronic business (ebusiness) strategies have received growing attention from entrepreneurs, executives, investors, and industry, the IS strategic planning is now considered critical in developing a successful electronic strategy (e-strategy). IIOS planning differs from planning for internal ISs and deals with different organizational structure, diverse business strategies, differing information system/information technology (IS/IT) infrastructures, and cooperative issues (Finnegan, Galliers, & Powell, 1999).

The importance of planning for IIOS is widely recognized. It provides a business direction for Internet-based IS applications, coordinates the efforts of trading partners, and solves technical and nontechnical issues. IIOS planning describes the procedure of identifying a portfolio of IIOS applications that integrate organizational and interorganizational processes and provide organizations with capabilities to enhance linkages between trading partners along the supply chain.

IIOS involve substantial internal operations and efforts for IS development and have significant impact on the organization. Numerous researchers indicated that technological factors (such as IT infrastructure and IT expertise) and organizational factors (such as management involvement and commitment) expect to influence the planning guidelines for EDI and B2B e-commerce (Galliers, Swatman, & Swatman, 1995; Marshall & Mckay, 2002, Finnegan et al., 2003). Moreover, most research in the IS field focused on examining the planning of IIOS to support interorganizational activity, and several frameworks were proposed to identify the systems planning in e-commerce environments (Finnegan et al., 1999; Pant & Ravichandran, 2001; Marshall & Mckay, 2002). IIOS involve that all participating members coordinate their efforts and cooperate with each other. These participants may have complex business relationships between the firms and trading partners, resulting in a number of social and political factors that influence IIOS planning (Hong, 2002; Finnegan et al., 2003). Since the planning of IIOS, unlike the conventionally adopted ISs, requires the cooperation of the firm's trading partners, various aspects of uncertain business environments and interorganizational relationships have a significant influence on the planning process.

This study discusses why IIOS planning is an important exercise, a conclusion based on ...