How IBM Implemented the Information Technology Innovation - Case Study Example

Entrepreneurship Name Institution Course Instructor Date Table of Contents Entrepreneurship 1 Executive summary 3 Introduction 4 IT innovation background 5 Environmental features and implementation of IT innovations 7 CEO features and implementation of IT innovations 8 Research methodology 9 Contextual discussion 9 Benefits 12 Conclusion 13 Bibliography 13 Executive summary Innovations are important for the expansion of business organizations and improvement of its overall performance. The IBM adopted implemented the Information Technology innovation recently. In return, IT transformed the structural performance of the whole organization prompting high benefit returns. Hence, it was important to analyze the environmental and CEO factors that influence the implementation of IT in IBM. The report established that security of tenure highly influenced IT implementation in IBM compared to other presented factors. Introduction It is estimated that in 1940s the innovation implementation studies began, however, the diversification to adopt information systems began in 1980s. Due to the late diversification, the innovation implementation concepts are nowadays integrated into various disciplines of study which include marketing, communication, sociology, education, management, and information systems among others. That is why there is a lot of research and empirical studies done on implementation of innovations in organizations. Therefore, innovation implementation refers to the discovery and implementation of ideologies, procedures, technologies, products and systems which are important in the growth of a business organization (Bak, 2011). Furthermore, research findings on the success of IT implementation in a given organization rely on various factors that are grouped into four major categories by the researchers. These categories include environmental context, innovation attributes, individual-based perceptions and organizational characteristics. Contrary to the prospected importance of organization IT implementation, recent research studies reveal that there is less information that exists on the actual procedural implementation of IT in any given business organization (Oliveira and Martins, 2011). This means that the existing literature that supports organizational IT implementation lacks crucial evidence on the factors that either hinder or promote IT implementation in a given organization. In this regard, the theoretical models that describe the organizational adoption of IT are not viable enough to guarantee the successful practical introduction and implementation of IT in an organization. Moreover, the inconsistencies presented in the IT implementation literature makes it difficult to compile the aspects that influence the successful adoption of IT in an organization. Therefore, there is a need to link the theoretical concepts with practical models effectively so as to ensure that the implementation of IT in a given organization is successful (Kuratko, 2014). Therefore, it is important for the corporate systems to understand the main environmental features and CEO frameworks that either inhibit or promote introduction and implementation of IT in an organization. Also, research on these two aspects contributes and adds on the existing literature findings on how CEO frameworks and environmental features influence the implementation of IT in IBM organization (Huang, Liu and Chang, 2012). Hence, this paper seeks to present a contextual report of the research done on the aspects that surrounded the implementation of IT as a new innovation in IBM. The paper will achieve its objective by identifying the major IT implementation determinants such as the CEO framework and the environmental features. Therefore, it reviews the past research literature on CEO framework and environmental features that surround organizational implementation of IT. IT innovation background The past 20 years have marked a major milestone in the innovation of IT and its adoption by different business organizations. In particular, the research conducted to understand the innovation of IT revealed various aspects that influence its implementation in IBM. Research grouped these aspects into four major categories which include the environmental context; innovation attributes which are directly linked to the Diffusion of Innovation (DOI), individual-based perceptions and organizational characteristics (Huang, Liu and Chang, 2012). DOI is a theory introduced by researchers to explain the context of the organization. This means that DOI represents the CEO characteristics or features of a managerial leader. Despite all the contextual information on implementation of IT, recent research however reveals that there is a knowledge gap in the effective and efficient implementation of IT innovations in IBM. In this regard, it important to note that the existing literature so far lacks a detailed description of the various aspects that influence the successful implementation of the IT innovations. Whereby, the influence can either be positive or negative prompting organizational success or failure. Based on this reasons, the IT implementation does not guarantee organizational success, however, success is achievable if all the factors that influence the implementation of IT are put into consideration (Khosrowpour, 2013). Moreover, the existing theoretical research concepts on IT implementation have profound inconsistencies that make it difficult to draw viable conclusions on the aspects that influence the implementation of IT innovations. Therefore, it is right to conclude that based on the existing evidence it is hard to establish the link between the theoretical concepts and the practical implementation of IT innovations to explain the success of IBM. Hence, it clear that a major knowledge gap exists in the existing literature body that needs to contextualize on the aspects that influence the successful implementation of IT innovation in IBM. Moreover, there are many prospected benefits of IT implementations that are not yet feasible. In this case it is important to differentiate if the IBM implemented IT as an innovation so as to react to the market demand or rather as a management-introduced innovation that guaranteed the success of the organization (Kuratko, 2014). This report section seeks to explore the background of both CEO and environmental features that influenced IBM IT implementation. Environmental features and implementation of IT innovations Business organizations introduce or implement various innovations based on mainly two reasons. The two reasons include, first, implementing an innovation as a way of reacting to the demand from the external environment. Second, the organization implements a given innovation so as to achieve environmental competitiveness. Therefore, the extrinsic and intrinsic environments play a crucial role in the implementation of modern technological innovations, particularly IT innovations in a business organization (Kuratko, 2014). The Electronic Data Exchange (EDI) research conducted in 2001 used the adoption framework and established that environmental characteristics are made up of extrinsic pressure, innovation readiness of trading partners, competitive demand pressure and support of trading partners. Moreover, other research findings established that support from the government, trading partners, and vendors and competitive demand pressure characterized the environmental attributes that influence implementation of enterprise to enterprise business exchange in Small and Medium Enterprises (SMEs). Additionally, in a research that examined the implementation of various IT innovations in the United States’ SMEs concluded that vertical business linkages and competitive demand pressure coupled with trading partners’ pressure and support are major environment attributes that influence the implementation of IT innovations in a given organization. In the words of Kuratko (2014), it is clear that the environmental features that influenced the implementation of IT innovations in IBM are vast and diversified. In this regard, the environment presents a major uncertainty in the adoption and implementation of technological innovations specifically, IT in a business organization. CEO features and implementation of IT innovations There is a lot of research literature that supports the fact that CEO features influence the adoption and implementation of IT innovations (Lee, Kim and Ahn, 2011). For instance, in one of the initial research conducted in 1983 reveals that the implementation of innovations is determined and directly linked to the managerial decision making process. This means that whenever an organization discovers a certain innovative idea, the management decides whether to adopt or reject the implementation of the innovation based on the strategic plan of the business organization (Khosrowpour, 2013). The final decision always rests in the hands of the managerial leaders. In this context, the manager (CEO) of IBM played an important role in the adoption and implementation of IT innovations; furthermore, the CEO determined the essence of IT implementation after considering the effects of extrinsic and intrinsic environmental features. Therefore, it is important to note that the CEO is the main determinant of IT implementation in a given organization. Hence, the organizational adoption and implementation of IT innovations relies on the personal features of the CEO. That is why many researchers have concentrated on contextualizing the CEO features that affect organizational implementation of IT innovations. In this regard, the early research findings established that the CEO features that determine the success or failure of IT implementation include personal attitude and desire for innovative changes in an organization. Other findings enlisted gender, knowledge of IT , and security of tenure, age and innovative attitude as major personal attributes that determine the implementation of new technologies in a given business enterprise coupled with various environmental features (Lee, Kim and Ahn, 2011). Research methodology In order to validate the research findings of an individual-based study, the researcher has to consider two main things. First, the existing theoretical literature that relates to the study topic and second, the data collected personally to fulfill the objectives of the study topic. The theoretical concepts represent the qualitative data while the individually collected information represents the quantitative data (Kuratko, 2014). Therefore, in this context, the research methodology used the qualitative findings on implementation of IT innovations and carried out an empirical investigation on the practical implementation of IT innovations in IBM. The investigation was based on the analysis of the CEO and environmental features that influenced IT implementation via the use of meta-analysis approach. The approach was important because it assessed the strength and weaknesses of various CEO and environmental features with the implementation of IT innovations (Huang, Liu and Chang, 2012). Contextual discussion The individualistic study reviewed systematically the literature of IT innovations to establish the both CEO and environmental features that affect IT implementation in an organization. Thereafter, the meta-analysis of the quantitative data was conducted to establish the strengths and weaknesses of CEO and environmental features in relation to the implementation of IT innovations in IBM. The research used moderator circumstances to further assess the personal characteristics that influenced the CEO features and IT implementation relationship (Al-Ghaith, Sanzogni and Sandhu, 2010). Therefore, the study considered several environmental features that included support of the government, competitive demand pressures and extrinsic pressures. On the other hand, the study considered CEO features which included level of IT knowledge, security of tenure, attitude and inclination to innovativeness. The results obtained from the meta-analysis revealed a connection between support of the government, competitive demand pressures, extrinsic pressures, IT knowledge level, attitude and inclination to innovativeness. Whereby, they all collectively had a minor influence on the adoption and implementation of IT innovations in IBM. However, the meta-analysis portrayed security of tenure as the major factor that influenced IT implementation in the organization (Lee, Kim and Ahn, 2011). In the context of extrinsic pressures, the meta-analysis established that the pressures played an important role in organizational IT implementation. This means that IBM adopted the innovation either via a major trading partner’s recommendation or due to the increased external demand from the consumers (Kuratko, 2014). Basing on the existing literature, this particular attribute came short of the prospected influence on IT implementation. Moreover, it was unforeseeable in SMEs because such business organizations rely on consumers and trading partners. On the aspect government support, the meta-analysis established that it had a minor influence on IT implementation based on the fact that the government influenced IT implementation in organizations through financial incentives such as construction of communication networks and promotion of established IT-based industries (Al-Ghaith, Sanzogni and Sandhu, 2010). Despite the support from the government, IBM was willing to implement IT innovations in any way possible. Therefore, the meta-analysis results disapproved the highly prospected major influence of government support on the implementation of IT innovations. Therefore, IT implementation was based on a personal drive rather than the expected support from the government and institutions. Inclination to innovativeness had a minor influence on the implementation of IT innovation, whereby, the CEO had the ability to implement IT at all costs provided that the innovation proved to be important to the strategic plan of the business organization. This means that the manager implemented the IT innovations based on the success model of that particular innovation. The aspect of attitude also had a minor influence on the implementation of IT because the CEO who implemented the innovation was optimistic to do so. According to Kuratko (2014), the SMEs consist of only single owners who are also the CEOs that determine the right direction of the business organization. Therefore, positive awareness and prospected benefits of implementing IT innovation made the IBM CEO to have a positive attitude towards IT implementation. The meta-analysis established minor influence of IT knowledge to the implementation of IT innovations. It is because; the organizational need to adopt new innovations overshadowed the CEO knowledge on IT (Kuratko, 2014). Also, the same applied to the competitive pressures. The competitive pressures seemed significant in the adoption stage but not in the implementation stage of IT innovation. The only major feature that influenced the implementation of IT was security of tenure. In this regard, the CEO ensured that the IT innovation was well implemented in the organization by creating a viable environment (Oliveira and Martins, 2011). By doing so, the CEO promoted the growth of the business organization which consequently cemented the competence of the CEO. This means that the CEO was assured that by implementing IT, the organization could expand and improve its overall performance. Moreover, IT implementation established trust between the organization and the CEO. Hence, the CEO risked everything to ensure that IT implementation was not deterred by either environmental factors or personal attributes (Khosrowpour, 2013). Benefits Through the implementation of IT innovations, the IBM experienced dramatic benefits. First, IT changed the existing strategic plans and created more business opportunities for the organization. This means that IT implementation led to the establishment of electronic commerce, whereby, it ‘collapsed’ distance and time in the organization (Bak, 2011). Hence, the organization saved a lot of time and costs previously incurred on services such as transportation when holding staff meetings. In this context, the organization held meetings via the internet. Second, IT implementation changed the culture of the organization, whereby, it created an environment that allowed unrestricted flow of information from one department to another (Sarkis, Gonzalez-Torre and Adenso-Diaz, 2010). Therefore, IT improved the efficiency and performance of the organization. Third, IT transformed the traditional structures of the business organization by realizing the organization’s goal of adopting virtual networking corporations (Al-Ghaith, Sanzogni and Sandhu, 2010). Fourth, the implementation of IT innovation changed the entire process of management. This means that IT played an important role in the process of decision making. IT offered support that ensured the organization conducted the decision making efficiently and effectively. Moreover, IT provided the necessary security measures to protect business-viable ideas generated via the decision making process. Fifth, IT transformed the workplace environment in the organization because it allowed employees to work from anywhere which enabled them to meet the organizational goals. According to Bak (2011), the implementation of IT favoured ‘teleworking’ in the organization. Hence, it is clear that the implementation of IT drastically changed and improved the performance of the organization. Conclusion In conclusion, the paper presented a contextual report of the research done on the aspects that surrounded the implementation of IT as a new innovation in IBM organization. It achieved the objective by identifying the major IT implementation determinants such as the CEO framework and the environmental features. After analyzing the determinants via meta-analysis, it established that security of tenure played the major role in the implementation of IT in IBM. Finally, the paper described the benefits realized by the organization after the implementation of IT innovation. Bibliography Al-Ghaith, W.A., Sanzogni, L. and Sandhu, K., 2010. Factors influencing the adoption and usage of online services in Saudi Arabia. The Electronic Journal of Information Systems in Developing Countries, 40, pp.1-5. Bak, O., 2011. 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The Electronic Journal Information Systems Evaluation, 14(1), pp.110-121. Sarkis, J., Gonzalez-Torre, P. and Adenso-Diaz, B., 2010. Stakeholder pressure and the adoption of environmental practices: The mediating effect of training. Journal of Operations Management, 28(2), 163-176. Read More