Peter E. D. Love

The Propagation of Technology Management Taxonomies for Evaluating Investments in Information Systems

The management of Information Technology (IT) and Information Systems (IS) is considered a complex exercise by academics and practitioners alike. The reason for this is that there are ubiquitous portfolios of tangible and intangible benefits that are offered to an organization following the adoption of IT/IS that, in turn, all need managing to ensure realization. Organizations also have to take into account the direct and often larger indirect costs that are typically associated with IT/IS deployments. To provide managers with a critical insight into the management of new technology, this paper uses a case study research strategy to examine the technology management experiences of a leading U.K. manufacturing organization during its adoption of a vendor-supplied Manufacturing Resource Planning (MRPII) information system. Following the lack of attention given to human and organizational technology management factors while implementing MRPII, the vendor-based information system was later abandoned and deemed a failure. In addressing those technology management factors that were later identified as important, it was found that key employees were able to overcome a number of organizational barriers and develop and implement a bespoke MRPII system that significantly improved the organizations competitive position. Technology management taxonomies that contributed to the failure and later successful implementation of MRPII are identified and discussed. The organizations experiences in solving the problems associated with the implementation of their IS offers a learning opportunity for those companies that are seeking a competitive advantage through technology management.The management of Information Technology (IT) and Information Systems (IS) is considered a complex exercise by academics and practitioners alike. The reason for this is that there are ubiquitous portfolios of tangible and intangible benefits that are offered to an organization following the adoption of IT/IS that, in turn, all need managing to ensure realization. Organizations also have to take into account the direct and often larger indirect costs that are typically associated with IT/IS deployments. To provide managers with a critical insight into the management of new technology, this paper uses a case study research strategy to examine the technology management experiences of a leading U.K. manufacturing organization during its adoption of a vendor-supplied Manufacturing Resource Planning (MRPII) information system. Following the lack of attention given to human and organizational technology management factors while implementing MRPII, the vendor-based information system was later abandoned and deemed a failure. In addressing those technology management factors that were later identified as important, it was found that key employees were able to overcome a number of organizational barriers and develop and implement a bespoke MRPII system that significantly improved the organizations competitive position. Technology management taxonomies that contributed to the failure and later successful implementation of MRPII are identified and discussed. The organizations experiences in solving the problems associated with the implementation of their IS offers a learning opportunity for those companies that are seeking a competitive advantage through technology management.

Quantifying the causes and costs of rework in construction

Very few construction companies and consulting firms in Australia measure their costs of quality. Consequently, it is difficult for them to prove that systems for preventing quality failures are cost-effective. Although the direct costs of a quality system can be quantified with some accuracy (salaries, costs of documentation, audits, etc.), the corresponding benefits are far more difficult to assess. Indeed quality failures have become an endemic feature of the procurement process in construction and invariably lead to time and cost overruns in projects. Thus, in order to improve the performance of projects it is necessary to identify the causes and costs rework. The research presented in this paper quantifies the causes, magnitude and costs of rework experienced in two construction projects that were procured using different contractual arrangements. The causes and costs of rework projects are analysed and discussed. The findings reveal that the cost of rework for the case study projects was 3.15% and 2.40% of their project contract value. Changes initiated by the client and end-user together with errors and omissions in contract documentation were found to be the primary causes of rework. It is recommended that construction companies and consultant firms (particularly design consultants) implement quality management practices as well as place emphasis on coordinating project documentation during the design development process so that the amount of rework in projects can be reduced or even eliminated.

Developing a frame of reference for ex-ante IT/IS investment evaluation

Investment appraisal techniques are an integral part of many traditional capital budgeting processes. However, the adoption of Information Systems (IS) and the development of resulting infrastructures are being increasingly viewed on the basis of consumption. Consequently, decision-makers are now moving away from the confines of rigid capital budgeting processes, which have traditionally compared IS with non-IS-related investments. With this in mind, the authors seek to dissect investment appraisal from the broader capital budgeting process to allow a deeper understanding of the mechanics involved with IS justification. This analysis presents conflicting perspectives surrounding the scope and sensitivity of traditional appraisal methods. In contributing to this debate, the authors present taxonomies of IS benefit types and associated natures, and discuss the resulting implications of using traditional appraisal techniques during the IS planning and decision-making process. A frame of reference that can be used to navigate through the variety of appraisal methods available to decision-makers is presented and discussed. Taxonomies of appraisal techniques that are classified by their respective characteristics are also presented. Perspectives surrounding the degree of involvement that financial appraisal should play during decision making and the limitations surrounding investment appraisal techniques are identified.

Selecting a suitable procurement method for a building project

Building procurement has become a fashionable term with industry practitioners and researchers. It determines the overall framework and structure of responsibilities and authorities for participants within the building process. It is a key factor contributing to overall client satisfaction and project success. The selection of the most suitable procurement method consequently is critical for both clients and project participants, and is becoming an important and contemporary issue within the building industry. The problem, nevertheless, lies in the fact that there has been limited empirical research in this field of study. Postal questionnaire surveys of 41 clients and 35 consultants were carried out, and were used to obtain experience of and attitudes to a variety of procurement methods and the criteria used for selection. The findings indicate that a simple set of the criteria generally is adequate and sufficient for procurement path selection, and that there is a reasonable consensus on the appropriate weighting for each path. Moreover, it is shown that, contrary to expectations, similar clients generally do not have similar procurement needs.

An exploratory study of information technology evaluation and benefits management practices of SMEs in the construction industry

While the number of articles on IT evaluation and benefits management has been substantial, limited attention has been given to these topics in small and medium-sized enterprises (SMEs), particularly the construction industry. This paper presents findings from a questionnaire survey that sought to examine the approaches used by 126 construction organisations to evaluate and justify their IT investments, as well as the benefits and costs that they have experienced due to IT implementation. The analysis of their responses identified three key findings. Firstly, different organisation types significantly differ in the amount they invest in IT and their firm size (in terms of turnover and number of employees) does not influence investment levels in IT. Secondly, the evaluation process adopted by construction SMEs is used as for both control and learning. Thirdly, a major barrier to justifying IT investments was attributed to having no strategic vision. While organisations experienced no significant differences in the tactical and operational benefits incurred after the adoption of IT, differences were found with respect to the strategic benefits. If construction SMEs are to leverage the benefits of IT, then this should form an integral part of their business strategy. Considering this, recommendations for IT evaluation for construction SMEs that are also pertinent for SMEs operating in other industry sectors, are presented.

Outsourcing information systems: drawing lessons from a banking case study

Financial and costs benefits are often put forward as the reasons why organisations decide to outsource. Emerging patterns and trends indicate that todays outsourcing decisions are often motivated by factors other than cost. Thus, the decision-making process is more complex than it may at first appear. This paper presents findings from a case study from an organisation in the UK banking sector that was motivated to outsource aspects of its information technology/information system (IT/IS). The underlying motives and decision-making process that influenced the bank outsource its IT/IS are presented and discussed. Findings from the case study suggest political perspectives, as well as human and organisational issues influenced the banks strategic decision-making to outsource certain aspects of its business. An examination of the case study findings suggests that cost alone is not always responsible for decisions to outsource, as it was found the banks outsourcing decision was driven by a series of complex, interrelated motives in a bid to reduce the risks and uncertainties of managing its own technology. Considering the complex nature of the outsourcing process a frame of reference that can be used to assist managers with their decision to outsource IT/IS is propagated. The case study is used to present an organisations experiences as to how and why it decided to outsource its IS and thus offers a learning opportunity for other organisations facing similar difficulties. In addition, the case study findings highlight the need to focus greater attention on discriminating between the short and long-term consequences of IT/IS decision-making.

Management of risks in information technology projects

Information technology (IT) projects are renowned for their high failure rate. Risk management is an essential process for the successful delivery of IT projects. In‐depth interviews with IT professionals from leading firms in Western Australia were undertaken to determine how IT risks were managed in their projects. The respondents ranked 27 IT risks in terms of likelihood and consequences to identify the most important risks. The top five risks, in order, were: personnel shortfalls; unreasonable project schedule and budget; unrealistic expectations; incomplete requirements; and diminished window of opportunity due to late delivery of software. The respondents overwhelmingly applied the treatment strategy of risk reduction to manage these risks. Furthermore, these strategies were primarily project management processes, rather than technical processes. This demonstrates that project management is a risk management strategy. Scope, quality management, and human resource management were solutions applied to several risks. In particular, managing stakeholders’ expectations is a specific risk treatment that helps to manage several key IT risks.

The impact of enterprise application integration on information system lifecycles

Information systems (IS) have become the organisational fabric for intra- and inter-organisational collaboration in business. As a result, there is mounting pressure from customers and suppliers for a direct move away from disparate systems operating in parallel towards a more common shared architecture. In part, this has been achieved through the emergence of new technology that is being packaged into a portfolio of technologies known as enterprise application integration (EAI). Its emergence however, is presenting investment decision-makers charged with the evaluation of IS with an interesting challenge. The integration of IS in-line with the needs of the business is extending their identify and lifecycle, making it difficult to evaluate the full impact of the system as it has no definitive start and/or end. Indeed, the argument presented in this paper is that traditional life cycle models are changing as a result of technologies that support their integration with other systems. In this paper, the need for a better understanding of EAI and its impact on IS lifecycles are discussed and a classification framework proposed.

Determining the causal structure of rework influences in construction

One of the most perplexing issues facing organizations in the construction industry is their inability to become quality focused. As a result sub-standard products and services often emanate, which inadvertently result in rework. Typically, rework is caused by errors made during the design process. These errors appear downstream in the procurement process and therefore have a negative impact on a projects performance. The lack of attention to quality, especially during the design process, has meant that rework has become an inevitable feature of the procurement process, and the costs have been found to be as high as 12.4% of total project costs. Such costs could be even higher because they do not represent schedule delays, litigation costs and other intangible costs of poor quality. To reduce the cost and effect of rework, an understanding of its causal structure is needed so that effective prevention strategies can be identified and the effects of rework reduced or eliminated. A case study approach based upon deductive and inductive reasoning is used to identify the major factors that influence rework in projects. From the findings and with reference to recent literature, the concept of system dynamics is used to develop a series of influence diagrams, which are then integrated to develop a conceptual causal loop model that is used to determine the overall causal structure of rework. Once an understanding of the causal structure of rework events has been acquired, effective strategies for rework prevention can be designed and implemented in order to improve project performance. This paper contributes to study of quality in construction by capturing the complexity and dynamism of those factors that influence rework and project performance in a holistic manner.

A seamless supply chain management model for construction

Presents a holistic approach to construction project SCM. Specifically, a seamless project supply chain management (SCM) model is proposed that integrates the design and production processes of construction projects. The proposed model was subjected to validation by a sample of industry practitioners and their comments are presented and reflected upon. Direction for future research is provided and such work aims to: explore the legalities of implementing the model; develop an appropriate benchmarking framework; explore the use of quality function development; and probity issues when selecting project team members.