As the technology progress, the organization must adopt to these changes in order to make their businesses last. Organizations must also address or meet the needs and demands of the customers. So there’s a need for the organization or the company to change their IT/IS. But these changes may contain some risks that can have a negative outcome to the organization.
Our adopted company is Concentrix which mother company is Synnex which Lines of business include technical and customer support, sales and marketing, and back office transaction processing. Industry expertise in technology, communications, and consumer electronics
Here are the risks that I think associated with business and IT/IS change based on the organization that we had visited in bulleted form:
- financial risk
- functionality risk
- managing problem
- implementation problem
- Lack of expertise
- Application complexity
- lack of required knowledge
There are some risk associated with business and IS/IT change, one of which is the financial risk. Due to the changing phases of systems, new techniques and technologies business enterprise has invested in Information Technology (IT) /Information System (IS) to hasten and creating a systematize transactions. Some technologies adopted are not suitable to the environment or the needs of the organizations. Moreover embracing new technologies or system usually starts in a trial and error process so the risk factor here is financial risk since not all technologies/system can be use every time we fail. It involves large amount of capital to tests what are the suitable IS/IT in a particular business.
Also the cost of the training of the employee in order for them to know about the new system and we should also consider the cost of the new hardware or software if there is a need to change the old .
Another risk factor is the functionality risk if in case the projects fails to deliver the functionality that the organizations might have expected . Example of this is when the design of the new system fails to capture essentials business requirements. A sytem may be designed with a poor user-system interface . The way in which nontechnical business users must interact with the system. So how can we tell whether a system is unsuccessful or not? This is not always an easy question to answer. Not everyone may agree about the value or effectiveness of a particular information system. There are various criteria have been developed, but the following measures of system success I will mention are considered the most important. High levels system use, as measured by polling users, employing questionnaires, or monitoring parameters such as the volume of on-line transactions.
User satisfaction, as measured by questionnaires or interviews. This might include users’ opinions on the accuracy, timeliness, and relevance of information: on the quality of service; and perhaps on the schedule of operations.
Favorable attitudes of users about information systems and the information system staff. Achieved objectives, the extent to which the system meets its specified goals, as reflected by the quality of decision making relating from user of the system.
There is also a management problem with strategic transitions that be continually stated like how the organization obtain the maximal long-run benefit from the technology without destroying the positive features of the organization? Managers must adjust their policies to the technology, the environment constraints and opportunities (regulations, loyal customers), and the organization.
The implementation problems are considered typical for each stage of the systems developemnet life cycle when the implementation process is poorly managed. Time, money, and resources have been not been alloted to researching the problem. The problem remains poorly defined. Objectives of the implementation project will be vague and ambigous; benefits will be difficult to measure. Little or no time is spent in pleliminary planning. There are no standards to use in estimating preliminary cost or duration of the project.
Another risk is the application complexity. since systems differ dramatically in their size, scope, level of complexity, and organizational and technical components. Some systems development projects are more likely to fail because they carry a much higher of risk thatn others.
Lack of required knowledge, in changing the IS of an organization there are inadequate documentation of existing systems or incomplete findings from systems study activities. The staff should have knowledge about how to use the system. This may require an amount of time for them to know the system. Users may refuse to spend any time helping the project team gather the requisite information.
Now that the business has developed management may proceed to create another project for the new system. One risk involve is the project risk. Projects that cannot be completed within budget, schedule and/or quality constraints. There are times when one cannot beat the deadline so the project schedule cannot be attain. There is the greater tendency that the project may takes time to prepare and the allocated budget maybe affected since the time projected was not meet.
"Risk is fundamentally about uncertainty in work performance and the resulting outcomes."
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