4.2 Managerial Challenges of IT

As discussed in the above sections, it is evident that Computer based information systems
(CBIS) provide many capabilities to enhance the business activities of an organization.
However, there are many challenges faced by mangers of IT-IS.
As a prospective manager or user of IS, it is important to understand the difficulties that can
be presented by the use of information technology in order to confront and overcome these
difficulties.

Success and Failure with IT
CBIS,though heavily dependent on information technologies, are designed, operated and
used by people in a variety of organizational settings and business environments. Information
systems and their technologies must be managed to support the business strategies, business
processes, and organizational structures and culture of a business enterprise. Therefore,
success of such a system should not only be measured by terms of efficiency (based on cost,
time and use of information resources). It should also be measured by terms of effectiveness
in supporting the business strategies, enabling business processes, enhancing its
organizational structures and culture and increasing the customer and business value of the
enterprise.

However, IS can be mismanaged or misapplied creating both technical problems as well as
disastrous failures.

For example it is documented that many of the Enterprise Resource Planning (ERP) system
implementations has ended up in failures as many of the professionals do not take into
consideration factors such business processes and cultural change that takes place due to
the introduction of these systems.

IS Solution Development Challenges
Development of successful information systems to a business problem is a major challenge
faced by the professionals. If the developed system does not support the requirement of the
organization, the purpose of developing such a system would be completely lost. IS
professionals are responsible for proposing or developing of new or improved information
technologies for the company. Typically, a systematic development process is used to
develop most IS. In this process, end users and information specialists design information
system applications based on an analysis of the business requirements of an organization.

Examples of other activities include investigating the economic or technical feasibility of a
proposed application, acquiring and learning how to use the software required to
implement the new system, and making improvements to maintain the business value of the
system. The development process will be discussed in detail in chapter 7 and 8.

Challenges of Ethics and IT
IS professional need to address ethical responsibilities generated by the use of information
technology. For example, they need to address questions such as what uses of information
technology might be considered harmful, improper to other individuals or to the society?

what is the proper business use of the Internet and an organization’s IT resources? what does
it take to be a responsible end user of IT? what action should be taken to address computer
crime ? etc. These are some of the ethical dimensions discussed in detail in chapter 9.
Human Resources Challenges

Success or failure of an organization largely rest on the human resources of the organization.
Recruiting staff with proper qualifications is a problem faced by many IS managers today.
One reason for this is the rapidly changing technological and business developments.