Million dollars companies struggle with Information Systems implementation

Welcome back to my Blog!

As you read in the title, this week, I will look at why companies struggle with Information Systems implementation.

Many companies struggle with the implementation of IS, despite its immense potential. These difficulties may arise, because technical, organisational, or human issues. These are some examples I decided to use to show why companies still struggle with IS implementation.

 

1. No Clear Objectives 

British Airways experienced issues with the new Terminal 5 at London Heathrow Airport in 2008. It was clear that some issues with the IS implementation arose when passengers just watched as all their suitcases were taken back into the terminal instead of being loaded on the plane. Not something you would want to see before a transcontinental flight, correct? These issues were linked to the lack of clear planning and objectives for the terminal's information systems.

British Airways plane

2. Inadequate Planning and Resource Allocation

Trenitalia, the Italian railway system, encountered a few challenges when they first introduced online booking systems to facilitate customers ticket purchases. Due to poor planning and inadequate resource allocation, the project took longer than originally planned, thus resulting in interruption with ticket sales and passenger service. As an Italian myself, I am not surprised!

 

Trenitalia online ticket platform

3. Resistance to Change

Carrefour, a French multinational retail, experienced resistance when implementing new point-of-sale (POS) and inventory management systems in its stores. People had to adapt to the new technologies and processes. Many, rightly so if you ask me, were scared of losing their jobs, as they were shown that they could be easily replaced by a machine, causing resistance among employees when the new POS was implemented.

Carrefour introduces new self checkouts POS 

4. Insufficient Training

Tesco in 2017 experienced problems with its payroll system. Because of inadequate training and poor employees' understanding of the new systems implemented back in 2016, various payroll errors arose including 140,000 workers being paid less than the UK minimum wage. Living cost crises are no joke, and the same goes for getting paid less than the minimum wage!

Screenshot of the message sent to affected employees

5. Inadequate Testing and Quality Assurance

McDonald's had a challenging experience when implementing a new point-of-sale (POS) system in its restaurants in the US, similarly to Toyota in 2003 when they first implemented Order Management System (OMS). The rollout of the new system faced many technical glitches and delays, affecting the accuracy of orders and customer's satisfaction. 

McDonald's POS

6. Poor Inside Communication

Barclays Bank of Kenya encountered communication issues during the implementation of a new customer relationship management (CRM) system. It was found that the poor communication between IT and other internal departments led to difficulties in setting up the system. 

Barclays Bank

7. Cybersecurity Concerns

Munster Technological University (MTU) has experienced a significant cybersecurity attack. It has affected its IT systems, operations and data was breached and thretened to be sold on the black market. The incident made all universities in the country question the vulnerability of their systems and how easily they can be a target to hackers.

MTU Cork campus

8. Unrealistic Timeline

The NPfIT was one of the largest IT projects in the world, looking to modernise the healthcare IT systems across NHS organisations in England including GPs and Hospitals. It faced numerous delays and cost overruns, due to the unrealistic timelines, and overambitious goals.

NHS England

 

These examples highlight how even large well established companies face issues when implementing a new Information System.

Can you think of a company where the journey of IS implementation was not as straightforward as a stroll in the park?

See you next week!