Challenges in Implementing Information Systems Abroad

Implementing IT Systems
Running Head: CHALLENGES IN IMPLEMENTING INFORMATION SYSTEMS
Challenges in Implementing Information Technology Systems
A Comprehensive Review and Test of Professional Literature
Steven Mairs
Candidate for Master in Public Administration 2009
Walden University
MMPA-6300-006/ PPPA-8800-006 Strategic Management of Information
Instructor: Dr. Hossam Banna

Literature Review 2
Abstract
This is a comprehensive literature review of the possibilities, challenges, and unmet
promises of implementing information technology (IT) systems at home and abroad. The scope
of this review includes issues of IT systems implementation in the areas of business, healthcare,
and government and looks at similarities and differences in challenges encountered when
implementing new systems internationally and domestically. The two-fold objectives include
identification and memorialization of the current status quo as well as presentation of a compact
array of considerations to guide future IT implementation projects. To that end, it is also hoped
that this review will help point the way forward for future research.
Articles were selected from peer-reviewed journals to maintain high standards of the
information selected for review and evaluation. An attempt has been made to address apparent
conflicts of information and to reconcile these differences wherever possible. Due to the nature
of information technology toward rapid change, only articles published subsequent to 1998 are
reviewed as it is anticipated this would be the most relevant and efficient use of limited space
and time. Rather than providing an analysis of statistics and methodology, this review is
designed to present a snapshot of where IT systems implementation is, a cross-section of what
challenges have been encountered thus far, with an eye toward improving prospects for
anticipating future obstacles.
Introduction
System Implementation Promises and Challenges
As pointed out in Walden University‟s Study Notes for its graduate course Strategic
Management of Information, “Information systems are often used to coordinate activities and
decisions across entire organizations and even across entire industries and sectors of [the]

Literature Review 3
national economy” (MPA 6300, 2008, wk2). IT systems are transforming business and
government. According to Kenneth and Jane Lauden, “In 2007, more than 40 million businesses
had dot-com Internet sites registered” (Lauden, 2009, p5). Organizations are embracing
information systems because they give them competitive advantages. IT systems have enabled
numerous warehousing efficiencies such as just-in-time inventory and service delivery
advancements, created markets for new products and services, created a fertile environment for
new business models and made it possible for previous unimaginable customer and supplier
intimacy. As Lauden asserts, “Information systems enable globalization….one of many tools
managers use to cope with change” (p7/15).
Two clichés come to mind which should inform managers eager to jump on the IT
bandwagon: Things may be easier said than done and not all that glitters is gold. That is to say,
despite the storied promises of information systems such as increased accuracy, efficiencies,
productivity gains, and quality improvements, numerous obstacles exist to the successful
implementation of new information systems. The varieties of challenges presented by new
systems expose administrators and the organizations they lead to risks which include
disappointing product performance, time delays, and unexpected cost overruns associated with
their implementation. Some of these obstacles may be avoidable. According to Lauden, “The
best solution is one that can be implemented” (Lauden, 2009, p20). “Managers who don‟t
understand emerging innovations may place their careers and their organizations at risk” (MPA
6300, 2008, wk4)
My own experience assisting the implementation of a new „off the rack‟ IT system for the
US government in an African country would seem to support this. A Foreign Service national
and USG employee who had taken an early interest in a new property management application

Literature Review 4
had been involved during the selection process. This individual was unhappy with the system
ultimately selected by the agency. Yet, as the local systems manager, he was the key liaison
assigned to work with me during the new system‟s implementation at the mission. He resisted
and obstructed implementation of the new system at every opportunity and wasted valuable time
discussing options which no longer existed. He contaminated the thinking of other individuals
involved which resulted in sharply limiting of the features ultimately exploited. His lack of
support and key position within the mission seriously eroded the potential for the system to
enhance security of the database and property it was designed to manage. Of the twelve related
projects I was involved in between February 2001 and November 2005, no less than three of
them (or 25%) involved some form of internal resistance. The only one in which I experienced a
complete failure of implementation was when the project lacked real administrative support.
(Mairs, 2008)
In addition to the predictable expenses associated with purchasing software licenses,
computers and peripheral hardware on which they operate, and training operators in the proper
use of these systems in order to realize their potential, unanticipated obstacles are more likely
than not to erupt and negatively impact their implementation. Database compatibility problems
may inhibit importation and conversion to new systems and unexpectedly require a mountain of
data entry work. Organizational resistance to change may result in resistance running to internal
sabotage. Unanticipated database security threats may be introduced requiring an entire other
layer of system implementation.
Manifestations of this nature have occurred across all sectors and around the world. In the
public sector, there is a surge in digital government, or Jane Fountain calls, “the virtual
state…government in which decision makers increasingly use information technology (IT) in

Literature Review 5
ways that blur the boundaries among agencies, levels of government, and the private and
nonprofit sectors” (Fountain, 2008). These challenges appear to be a universal fact of life for
modern managers and administrators and this reality is likely to continue for years to come as we
are only at the dawning stage of the information age. Can astute managers do a better job of
handling these challenges?
A survey of peer reviewed articles on the subject and this researcher‟s professional
experience in implementing new systems worldwide suggest there are many steps which
organizations can take to address and better prepare for these inevitable challenges. This research
project will survey systems implementation experiences across an array of organizations and
attempt to synthesize the information gathered with an eye toward producing guidance for
administrators likely to face similar challenges.
Theory and Evidence
Community and Government - Domestic
If evidence is required that digital government is growing, one need look no further than
evidence cited in Jane E. Fountain‟s article, “The virtual state: transforming American
government?” Fountain discusses the changing role of information technology at the federal,
state, and municipal levels of government and examines how innovative governments are
expanding uses of the Internet in delivering services and realizing cost savings as well as some of
the challenges posed by the promise of the virtual state. She makes a strong case by identifying
significant benefits and possibilities. Benefits of digital government, what Jane Fountain calls,
“the virtual state” include “government in which decision makers increasingly use information
technology (IT) in ways that blur the boundaries among agencies, levels of government, and the
private and nonprofit sectors” (Fountain, 2008, p241).

Literature Review 6
In 1999, G. David Garson divided the theoretical frameworks of e-government into what
he views as four main areas: decentralization and democratization, normative and dystopian,
sociotechnical systems and global integration theories” (Garson, 2008, p116). Respectively,
these frame various views of e-government ranging from highly optimistic expectations for
potential technological advances in government including the potential for using technology for
improving the linkage between people and their government and far less optimistic perspectives
which emphasize the potential for conflict and failure associated with implementation of IT
systems. Perhaps some amalgamation of these areas accurately characterizes the realities faced.
Consider, for example, the following: When examined through the prism of the traditional
bureaucratic model of public-service delivery, the Weberian model which relies on
“specialization, departmentalization, and standardization ….to ensure that all citizens are treated
equitably with the utmost efficiency” (p117). Within the fast breaking world of e-government,
this traditional approach is under assault on two fronts: the reinventing-government paradigm
aims at deconstructing its core focus of centralization and the digital divide currently renders
equitable treatment of citizens unattainable.
Nevertheless, as Shannon Schelin asserts in her E-Government Overview, “The public
sector has been engaged in the information-technology revolution and the continued investment
and support of these efforts is imperative” (Garson, 2008, 124). Schelin‟s assertion could
reasonably be extended to include all sectors. Schelin points to evidence that “governments are
mandated by citizen and business demands to operate within new structures and parameters
precipitated by information technology” (p116). This view is somewhat offset by normative-
dystopian theory of e-government which recognizes and anticipates continuing high rate of
conflict and failure associated with implementation of IT applications.

Literature Review 7
Some of these are self-propagating such as the failure to integrate special education
population into student information systems as described in John Waters‟ 2008 article appearing
in THE Journal which discusses the exclusion of special education files from these databases due
to their non-standardized format. Waters quotes Chula Grabowski whose remarks are rich with
information about the multidimensional challenges we face, “It might seem obvious to say it, but
just integrating these two systems doesn't mean you'll get the special education teachers to
embrace the system. My advice is to start with the willing, build the population of people who
are going adopt the system and advocate for it, and let the momentum work. And remember,
these are teachers, not computer people, so don't expect them to love the technology for its own
sake. Show them how it will help them to do a better job helping students" (Waters, 2008).
The challenges faced don‟t stop there. Research by Darrell M. West examined content of
e-government websites to investigate whether they are effectively exploiting interactive features
of the World Wide Web to improve service delivery, democratic responsiveness, and public
outreach. Through a comparative analysis of 23 participating states, West looked at state budget
expenditures on IT from 1998 to Y2K, the e-government content offered between Y2K and
2001, democratic outreach and responsiveness and citizen use of e-government and its impact on
trust and confidence in government. He establishes that “most states are putting a rather small
but stable percentage of their overall budget into information technology” (West, 2004, p24) and
points the way toward realizing its transformational potential, “officials need to rely on models
that emphasize integration, functionality, and democratic enhancement. They must take on a
vision of e-government that moves beyond service delivery to overall performance.”
In addition, data is considered from a national public opinion survey which examined the
ability of e-government to influence citizen views about government and their confidence in the

Literature Review 8
effectiveness of service delivery. The article rests on Web site content and public assessments
and argues that the e-government revolution has fallen short of its potential to transform service
delivery and public trust in government. At the same time, the article acknowledges the
possibility of e-government to enhance democratic responsiveness and boost belief that
government is effective. West identifies and groups observers of the IT phenomenon into two
major categories: transformationalists and incrementalists which he defines in the following
passage, “Transformationalists often predict widespread consequences arising from new technology,
while incrementalists note the constraining influence of social, economic, and institutional forces on the
ability of technology to alter behavior” (West, 2004, p15). As a result of his research, he concludes,
“digital government has the potential to transform service delivery and citizen‟s attitudes” (p24)
although he frequently retreats to the incrementalists‟ position.
West points to some compelling examples supporting the incrementalist argument, but I
believe one of these goes too far in boldly predicting that, “internet technology will not transform
democracy” (West, 2004, p16). West also cites Chadwick‟s finding that, “government
websites…[tend] to be „non-interactive‟…and concludes that e-government is not likely to
reshape governance” (p17). I disagree. One need look no further than the impact technology has
had on fundraising, voter registration, and viral email has had on the fortunes of various
candidates during the last two Presidential elections to see that change is in the air.
In his book, Hope Unraveled, Richard Harwood concludes that our democracy has been
fundamentally changed already by the chronic onslaught of materialism and consumerism which
were profoundly accelerated during the past three decades under the mindless free-market battle
cry of “business good; government oversight bad”. His fifteen years of research led to what
Harwood defines as a breakdown in community and basic values; people loosing faith in the
American dream, and their subsequent retreat from their responsibilities as citizens. The

Literature Review 9
cynicism Harwood identifies was wrought by in-transparency in lawmaking and budget activities
and correlates with efforts to reelect incumbents and improve conditions for our corporate
citizens at the expense of „we the people‟. Why is this relevant to IT systems implementation? I
believe that internet technology sometimes provides a faint lifeline which preserves the vestiges
of community for many Americans today.
West advances a model which identifies four general stages of e-government which he
labels as:
1. the billboard stage, where officials treat government websites much the same
as highway billboards
2. the partial service-delivery stage, where citizens can order and execute a
handful of services online
3. the portal stage with fully executable and integrated service delivery, a one-
stop government portal with fully executable and integrated online services
4. interactive democracy with public outreach and accountability enhancements,
a host of features designed to boost democratic responsiveness and leadership
accountability (West, 2004, p17)
West‟s model can serve as a helpful beacon.
Community and Government - International
Some of the aforementioned conflict emanate from disagreement over which applications
to implement. Rocheleau found in 1994 that “there could be conflicts over purchasing even if
there were consensus on what type of technology to use” (Garson, 2008, 54). This observation is
born out in this researcher‟s personal experience with implementing IT systems in developing
countries as well as research conducted by Krishna and Walsham which examined and reported

Literature Review 10
on a series of projects implemented in the state of Andhra Pradesh in India. Fountain pointed to
the cost savings realized by the Postal Rate Commission as a result of digitally disseminating
information needed to review postal rate increases thus saving time and millions of pages of
paper. But after reading Krishna and Walsham‟s report, trying to change an arguably lethargic
bureaucracy may be one of only a few major overlapping challenges in the implementation
process encountered by both developing and developed countries – at least for the time being.
The two successful cases Krishna and Walsham reported on are analyzed and primary
factors in their success are discussed. These cases and the factors credited for their success are
contrasted with information system projects implemented in developing countries. Among those
factors are the economic realities faced by developing countries. Beyond the obvious limitation
in available dollars to fund acquisition of hardware and application software, another significant
layer is the impact implementation has on people and employment: jobs are scarce and therefore
jettisoning staff who obstruct change can have far reaching impact on that staff‟s family. Factors
such as this contribute to slowing down the wheels of change more than we can imagine in the
West.
Other considerations required for success of IT projects in developing countries are also
vetted by the authors. Political leadership is identified as perhaps the single most important
factor for success. As well, the authors discuss some of the political realities of India as a
developing country and why it is difficult for a supportive political leader to stay in office long
enough to see implementation of an IT project through.
Sustained efforts needed for public [IT] initiatives have to be undertaken in a background
of constant changes in the social and political environment, and these may not remain
supportive over extended periods of time needed to develop large systems. Chief Minister

Naidu was able to maintain the development in this context through a combination of
capable efforts and fortuitous circumstances. (Krishna, 2005, 129)
Both researched projects involved IT systems implemented with multiple benefit to average
people in India. The first, a pilot project identified as the CARD (for Computer-Aided
Administration of Registration Department) was designed to digitize and expedite the
registration and transfer of land and other real property for a single jurisdiction. The second,
known as e-Seva, was designed to consolidate utilities billing and payments through a single
clearing house. Both were implemented to save time and to circumvent notoriously corrupt
systems previously in place and, at the very least, opened my eyes to a previously unrealized
possible benefit of IT systems; as a potentially powerful tool against entrenched corruption.
Business
According to the Study Notes accompanying Walden University‟s graduate course,
Strategic Management of Information, “Information systems are the foundation of conducting
business today. In many industries, survival and even existence is difficult without extensive use
of information technology” (MPA 6300, 2008, wk 1). Lauden identifies the following six
objectives for information systems: operational excellence; new products, services, and business
models; customer/supplier intimacy; improved decision making; strategic advantage; and
survival (Lauden, 2009, p22). To these I would add security. “A report from Javelin Strategy &
Research revealed that more than 75 percent of the customers it surveyed would not continue to
shop at stores that had victimized by data theft” (p264). Relevant emerging applications include
enterprise systems, customer relationship management systems, collaboration, knowledge
management and communication systems. Even after successful implementation, IT systems do
not represent a pure panacea of increased efficiency for business and government. E-mail is a

good case in point. The mushrooming increase in volume of emails received is recognized as a
personal and professional time drain. In his editorial appearing in MIS Quarterly, Ron Weber
states, “In my view, the externalities associated with e-mail use at times result in serious market
failures. Designing mechanisms that will provide incentives for e-mail users to engage in
behaviors that lead to improved social-welfare outcomes provides some challenging problems”
(Weber, 2004, xii) .
Weber advocates further study on the impact of e-mail as well as exploration of ways to
better manage e-mail and assisting users in dealing with the problems it presents. Weber
establishes that we are spending increasingly more time processing email - suggesting we may
spend as much as 100 minutes each day. If his visceral estimate is anywhere near accurate, it is
easy to see why an organization with fifty thousand employees might be interested in further
study of the impact of an activity which consumes five million minutes of employee time each
day. In addition to being a black-hole of time consumption, email also represents a source of
security and liability risk. There are relatively new requirements imposed by the justice
department on organizations to preserve these documents for use in possible future audit or
investigation.
Enterprise systems represent an important new dimension in the world of business
applications for IT. “Enterprises systems integrate the key business processes of a firm into a
single software system so that information can flow seamlessly throughout the organization,
improving coordination, efficiency, and decision making” (MPA 6300, 2008, wk8). They are
taking the collection and management of information to previously unheard of levels by
integrating legacy and other software modules into a common central database.

In Managerial Considerations, Hugh Watson and Barbara Haley empirically review the
pros and cons of decision-support applications such as digital data warehouses. Such
undertakings are both challenging and expensive but they found as far back as 1998 that, “most
large organizations have either built a data warehouse or are at least thinking about doing so”
(Haley, 1998, 32). Watson and Haley identify the rationale for undergoing such expense and
applying the necessary effort as follows: 38% of the respondents indicated having better access
to information, 21% better and more accurate information, and 20% a single source of data
(p34). Interestingly, they also point out that 48% of their warehouses were sponsored by IT
[departments] and 4 l% had a senior executive or functional area manager as the project sponsor.
The article cites multiple sources of organizational resistance and implementation
challenges. Perhaps the richest assertion is contained in the following quote:
In a survey of 111 data warehousing organizations that consider their initiative either an
up and coming system or a runaway success, the most important factors for successful
implementations were organizational in nature. Strong management support and adequate
corporate resources were found to have the strongest relationships with success, because
these factors worked to overcome political resistance in the organization, address change-
management issues, and increase organization-wide support for data warehousing.
IT systems are ushering in new products, markets, and business models as well. Such changes
have devastated some traditional industries such as photographic film manufacturers like Kodak
and the traditional travel agent. Some of which have escaped economic annihilation by adapting
to the changing demands. “The biggest distinction in the new digital organizational paradigm is
the concept of electronic money” (MPA 6300, 2008, wk9). Another driver of significant change

are decision-support systems (DSS) which assist managers today in evaluating complex arrays of
variables and considerations to improve decision making.
Healthcare
The realm of health care service is another potential beneficiary of further reliance on IT
systems implementation. While not a complete solution to all that ails today‟s health care system,
the increased efficiencies surely would help. Fortunately, the potential in this arena goes beyond
reducing billing costs. A case study on the implementation of computerized pharmacy services
demonstrates the benefits of such an IT application in providing state of the art medical care to
smaller rural communities in Eastern Wisconsin. “Telemedicine is a new and creative strategy
that health care organizations are using to provide improved patient care while simultaneously
decreasing health care costs” (Brierton et al, 2008, 1464). Smaller hospitals struggle to have
highly skilled critical care professionals onsite 24 hours a day. Brierton et al discuss the
implementation of remote pharmacy services in a 13 hospital system. They report that the
“system resulted in provision of consistent pharmaceutical care while minimizing costs”.
Implementation of the project was not without challenge. Because conformity within the
system was not 100%, remote pharmacy staff had to be trained on both the remote pharmacy and
traditional software systems. Other implementation disparities surfaced as well. For example,
remote pharmacists were authorized to review requests and issue recommendations which they
did, but their remote location prevented them from measuring compliance with their
recommendations. Nor was a methodology established for doing so. “The documented data
indicate that at least 78% of recommendations [had] been implemented” (Brierton. 2008, p1467).
The project resulted in empirical evidences of success such as:

 Between April 1, and June 30, 2007, the total calculated drug cost saving related to
remote ICU pharmacist recommendations was $121,966
 While industry standards stipulate that pharmacy orders be entered within 90 minutes, of
13,338 medication ordered during the study period, the mean time to completely process
orders was 24 minutes
The reach of IT in medicine does not stop at remote pharmacists. Physicians are employing
clinical decision support applications and computerizing orders. Data warehousing is now being
employed in the area of nursing management. Hospitals are exploring radio frequency
identification applications – the same technology that will soon enable us to pick up products in
retail stores and walk out the door without stopping at a cash register or making an appearance
on a police blotter because the product and our credit card can be scanned from yards away.
Another area where the IT world and medicine are merging can be found in biomedical
imaging. While offering promising treatment improvements and alternatives, this technology is
subject to many of the same threats of malicious software which have plagued the larger
computing industry. Security threats such as intrusion and worms and virus attacks are among
these. While biomedical imaging is adopting the computing industry‟s best practices for dealing
with these threats, some of these practices are objectionable within the medical industry and
others present new dilemmas.
Conclusion
IT has the potential to substantially redistribute power, improve decision making by
reducing error, and reduce costs through improved productivity and efficiency but significant
obstacles remain. Database compatibility and conversion conflicts are common as is the chance
of internal organizational resistance. In fact, organizational and human resistance to change

sometimes rise to the level of willful sabotage of the implementation process. Unanticipated
expenses can result in substantial cost overruns which themselves present other risks which may
appear in the form of:
 Training cost overruns
 Software and hardware performance failures
 Administrative failure to fully exploit features of an application
 The introduction of previously unheard of security threats
 Sharp-bordering-on-shocking contrasts in cultural values and priorities
Even successfully implemented IT systems do not represent a pure panacea of increased
efficiency for business and government. E-mail is a good case in point. The mushrooming
increase in volume of emails received is recognized as a personal and professional time drain. As
Ron Weber pointed out in his editorial appearing in MIS Quarterly, “the externalities associated
with e-mail use at times result in serious market failures. Designing mechanisms that will
provide incentives for e-mail users to engage in behaviors that lead to improved social-welfare
outcomes provides some challenging problems” (Weber, 2004, xii). Nevertheless, the potential
for IT systems to speed integration and delivery of products and services, increase efficient use
of shrinking resources, and to level the playing field between large and small organizations,
developing and developed countries plus other benefits compel organizations into this dynamic
arena. The alternative is less attractive than these risks.
Lessons learned in the Krishna study may be appropriately extended to guide other
implementation programs and could help minimize or avoid these risks. They can be summarized
as follows:

 Attention must be paid to details and to the multiple groups involved with the
implementation project
 An innovative approach must be taken toward reconciling the new system with existing
organizational structures
 An inclusive people-orientation must be maintained during the system selection period
and throughout these projects
 Persistent effort is required over realistic timelines – IT systems implementation often
requires significantly more time than anticipated
 IT projects must be backed by committed and knowledgeable leadership
Clearly, significant obstacles to successful implementation remain. Chief among these is the
frequent failure of business and political leadership during implementation of these systems –
much of this due to a lack of knowledge and understanding about the systems themselves.
Another area of major challenge involves cross-cultural implementation. Many of the same
difficulties which beset cross-cultural collaboration can also effect IT system implementation or,
as the Captain of Road Prison 36 put it in the 1967 Hollywood film Cool Hand Luke, “What
we‟ve got here is failure to communicate” (Carroll, 1967). Given the tremendous gains in
accessibility to more information afforded by IT systems, this may seem counter intuitive on
some levels, but it nevertheless warrants the attention of administrators involved in such efforts.
A succinct summation can be found in the Study Notes for Strategic Management of
Information, “Information systems are sociotechnical and are part of the organization. A new
information system changes the way the organization operates. Successful organizations choose
to change their structure and operations over time. They choose information systems designed to
mirror the organizational change and to serve it” (MPA 6300, 2008, wk11).

Possible Area for Further Study
Beyond merely filling in the many blanks that exist in this area of study, the future roles
of IT systems may lie beyond our current capacity to imagine or comprehend. For example, IT
may even have the potential to replace, postpone, or heal the lost sense of community identified
by sociopolitical observers such as Richard Harwood and Robert Putnam discuss within their
research on this phenomenon. As is often the case in life, strength in one area can turn out to be a
weakness. I believe the reverse may also be true. Just as a faint ray of hope might sustain an
individual trapped in a collapsed building or mine shaft for longer than believed possible, the
faint vestige of human connection felt by a lone individual who has access to the internet might
sustain what remains of the „social contract‟ Jean Jacques Rousseau wrote about in 1762 long
enough for change to come.

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