Why companies struggle with information systems implementation


Welcome back,


Todays I hope to inform you as to why businesses struggle with information systems 



There are a lot of different reasons why companies struggle to bring in information systems due to a lot of different factors 

 

1)   Poor planning: companies may not have done correct planning before implementing systems such as correct stock takes to enter into new systems which can lead to data being missing or incorrect data having a knock-on effect to every aspect of the business from warehouse (item not in stock) to financial sector (having to refund). 

2)   Cost: According to global.com costs can range from £75,000 up to £533,000 for a medium sized business. This is a large amount to pay for a system that may not even work or if employees do not buy into it. Training staff costs and also paying staff to do the job that the trainees were doing. These costs will slowly build up without realising so it is important to ensure everything is factored in. It is more than likely incidents may happen that were not budgeted for so more than likely will run over the budget that was projected. 

3)   Resistance to change:employees may be resistant to change as they may be in the business years and have a routine. “Why fix something that isn’t broken” may be a mindset for some but implementing these systems can make the operations more efficiently. It might not be broken but can certainly be better. Companies may have to let go staff who are unwilling to change and hire new staff which could be a long daunting process.

4)   Choosing an Information systems company: it is important to choose the right system because of all the components involved. The system may suit your business but must consider support services. Are they easy to get access too, will they provide 24/7 support, will they help with integration and training. Will they help with updates to the software and continuisly train staff to be able to use the new features. Important to have correct support as it’s a long process for everyone learning a new system. 

5)   Cybersecurity: staff in the company may not be experienced in cyber security which means they would be more susceptible to cyber-attacks leading to data leaks which is a bad reputation leading bad relationship with customers. 

6)   Poor Project Management: operations such as implementing information systems takes a lot of time and effort and is important to keep on top of everything. Poor project management can lead to deadlines not being met and budgets being overrun. For the cost of these systems if not managed properly it’s a waste of a lot of time, money and resources. Work should be delegated properly to the correct people to avoid issues arising. 

 

To conclude installing these systems is a long process where along the way will have some issues. Budgets will always differ from the final costs 

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