Risks that must be considered in implementing new software tools –
– Not providing sufficient training.
– Not initiating use of the I.T. soon enough.
– Not understanding the bandwidth required to use the program effectively.
– Not establishing one team leader (or program champion) who would cast the final vote on the format of the I.T. and the manner in time frame in which it would be rolled out.
– Not realizing that once corporate resources (especially time) are dedicated to a massive I.T. endeavor, it is difficult for people to change gears and consider simpler, more effective alternatives.
The possibility of political motivations within management must be considered, particularly if the company is in a start-up mode or is battling for survival, and competitive forces are great or time-to-market is paramount. High-level managers (in either operations or in IT) often bet the future of the company on a system that they have championed. The perceived intangible cost to the manager who has supported a system that has become exceedingly difficult to implement or whose total overall costs to the organization have not been identified are great. It is likely that such a manager would continue to invest time, money, and organizational resources in an IT system whose benefit does not clearly outweigh its cost. In this case, reversing his or her position on an IT system could adversely affect career plans or undermine power within the organization; the possible negative consequences to the manager’s career could result in decisions that are not in the best interest of the project or the organization. This is a manifestation of the agency problem.