How Information System Act as Agents of Change - Example

Running Header: How information system act as agents of change Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Table of contents Introduction ……………………………………………………………………………………. 3 Benefits of information systems ………………………………………………………………. 3 Types of systems ..........................................................................................................................6 Impact of Information Systems (IS) to the society.......................................................................7 Why organisations needs to change …………………………………………………………… 8 Strategies for organisational change ……………………………………………………………10 Planning strategy ………………………………………………………………………………………….11 Leadership strategy ……………………………………………………………………………………….11 Communication ……………………………………………………………………………………………12 Competency building ……………………………………………………………………………….........12 Strategy of sustenance ……………………………………………………………………………...........12 Challenges faced by the change team …………………………………………………………..13 Conclusion ………………………………………………………………………………………13 References ………………………………………………………………………………………14 How information system act as agents of change Introduction The modern society is currently in a disorderly manner, this is because the past have been eliminated and replaced by the modern world. Change occurs not for any reason but to accomplish an overall goal and it is usually provoked by outside driving force such as addressing new markets or need for dramatic increases in productivity. Avegerou (1998, pp. 15-28) describes that information systems include any system, data records and activities used to process data in a given organisation. These systems are necessary to an organisation as they develop solutions for various business problems. The above study shows how information systems act as agents of change to the society and in organisations. Benefits of information systems According to Eischen (2000) information systems has mostly increased as the heart of scientific, commercial and media processes and therefore have defined the modern technology which include complex information systems, communication superhighways and ubiquitous computing. Information systems have risen to be the greatest technology provider linking the computer to the emerging global and a networking society. The popularity of information technology is inevitable in all aspects and has massive effects to the society. Through developed information systems, the society is now experiencing a revolution similar to that of an industrial revolution. This has increasingly changed ethical responsibilities and social norms. Information systems (IS) is a computer information system that collect, store, process and report data from various sources in order to provide necessary data needed by the management of a firm in making decisions. Masutti (2001) explains that information systems perform various functions which include one, educating and learning function. IS provide various learning opportunities to inexperienced and naïve users. This therefore gives a better opportunity of incorporating the effectiveness of decision making process focusing on the kind of information available. Information systems educate through continuous examination and modification of various business models. Masutti (2001) shows decisions are effectively modified for example in a dynamic environment. The other role is though execution of users in changing their status to a more modified status therefore used in change management. The education and learning function can be broken down into various activities such as user training, coordination of training effort, timetabling, guidelines, standards and policies and creating awareness of competitive products. Lombardo and College (2006) describes that the second function of information system is in management and control. (IS) is important as it enables an organisation to maintain efficient and effective performance of all other functions within an organisation. This is achieved through proper organisation of data and effective communication therefore facilitating the processing period. Management and control function involves budget management, cost analysis process, management of guidelines and policies, quality control and communication. The IS development function include project management, policies regarding performance and delivery targets, decisions on standardisation, control, constraints and systems upgrading. According to Lombard and College (2006) the other function performed by IS that help in organisational change is the strategy and planning function. This function operates together with that of management and control which is informed of strategic functions relating to budgeting, production planning, auditing, quality assurance and market factors. The information systems model offer support to corporate strategy. It also provides executive information support that enables members in a working environment to from effective strategies. Information systems also aim in development of existing market therefore an organisation maintains a competitive position in the market. According to Rifkin (2000) IS helps an organisation to deliver corporate strategy for example through the provision of market functions, competitive products and economic trends. It also helps management to alter the balance of power with suppliers and competitors in the market. It is capable of identifying new marketplaces, new products in the market and providing various approaches of creating awareness of new products. An information system is therefore strategic if it changes products and services of an organisation. The model is also both interdisciplinary and multidisciplinary since it has various areas of study. According to Ayers (1999) in order to analyse the strategic role of information systems, it is necessary to list the objectives involves which include analysing the role played by the major types of information systems. The other objective is to describe the relationship between the system and distinguishing an information system. The management challenges involves integration of different systems and integrating them using Enterprise resource Planning (ERP). The other challenge faced by management in using information strategy is the sustainability of competitive advantage. To overcome the challenge, management need to be more innovative by formulating new business strategies since competitors can copy their strategic systems. There are different levels of management systems which include; operational level systems, knowledge level systems, management level systems and strategic level systems (Rifkin 2000). The operational level system support the operational managers through keeping track of activities and transactions of the business for example records of sales, cash deposits or receipts. The knowledge level system supports the data worker in discovering, organising and integrating new knowledge into business and also controls the flow of paperwork. The management level system monitors, controls and assist in decision making and administrative activities. The strategic level system enables the senior management to tackle and address strategic business issues and controls long term trends within the external environment. Types of systems There are different kinds of systems and those used at the strategic level are used in forecasting sales and buying trends. The ones used at the management level track the monthly sales figures and at knowledge level the systems design promotional displays in order to create awareness of the firm’s products. They also create and integrate new knowledge within the organisation. The decision support system (DSS) helps managers in making unique decisions that may effect change within the environment. The DSS makes use of Transaction Processing Systems (TPS) and Management Information System (MIS) and other external sources for example the stock prices and the price of competitors. DSS is therefore said to have more analytical power than the other systems (Feenberg 1996). The other system used in organizations and that effect change include the executive support system (ESS). This is the software that involves reporting and allows the managers to turn useful data into summarised reports that will be easy for analysis. The reports include billing, cost accounting, scheduling and staffing. ESS is designed to solve numerous problems within the work environment. Burgess and Julia (2001, pp. 1-24) shows that it also provides general computing and communications. The sales and marketing system is also used in effecting change within the organisation as it helps in identifying the potential customers in an organisation. It also develops products and services that are used to meet the needs of the customers. The system promotes the products and provides an ongoing customer support therefore securing increased market share and profitability. Order processing is carried out at the operational level while market analysis at the knowledge level. Price analysis is at management level and sales and forecasting is carried out at the strategic level of business. Impact of Information Systems (IS) to the society The most revolutionary that has affected a deeply felt impact on modernisation is information technology. Lyon (1998) shows the major source of change is the many functions performed by information system which include communication, effective flow of information, and change of management. The hierarchies are also being flattened with increased accountability and increased individual freedoms. The old ethical and societal models have been changed to become inadequate guiding techniques. The society understanding has also changed for example philosophers understand concepts in philosophy which include experience, knowledge, truth and creativity. Information systems and the influence of information technology has therefore emancipated the society through the society has been left floating by not having proper guidelines to apply. The society has also been influenced by search for identity and new ways of living since change has become a norm. Hiatt (2010) puts it that the society has now changed from humanism and modernism to post-modernism stage. This is due to the influence of information technology that provides the means to re- captivate the cynical world. Information systems also facilitate the growing need for effectiveness and efficiency within organisations. Lyon (1998) describes that other benefits include provision of entertainment and pleasure for example through social networking and also to provide the means of outdoing the nature’s hindrances. The continued implementation has resulted to the spread of information systems to various aspects of the society. Change is inevitable in every business practices, as business people believe that change is able to maintain a competitive position. Hiatt (2010) describes that change is an essential factor to consider for surviving in today’s market. Organisational change involves adding new people or modifying programs it also include change in mission and restructuring operations such as restructuring self managed teams or layoffs, improved new technologies, mergers etc. To effectively understand the influence of information technology towards change, it is important to first understand post- modernisation and the forces of information technology that drive change within the society and in organisations. The popularity of technology, the ethical nature of technology and the factors that determine change will be analysed to come up with influencing factors of modernisation effected by information systems. Why organisations needs to change To understand why organizations need to change, one should analyse the benefits and effects of change. Hiatt (2010) puts it that organisations need to change in order to keep up with the ever increasing trends in the market and to maintain their competitive position. Businesses also need to change in order to empower their employees and to build their skills in various aspects. This is because change develops people and facilitates learning. The internal causes of change include change in leadership, decline of profitability, change in employee profile and low morale. Change occurs in various ways for example there can be strategic change, operational change and transformational change. Strategic change involves broad and long-term goals or changing the purpose and mission of the organisation. It also involves quality change, values, competitive position, and product market development. Stewart and Furlan (10.11) states that operational change involves change of new systems, procedures, organizational structures, and technology that impact a change on working arrangement (Hiatt 2010). Change seems like a nightmare for most organisations for example in working environments where training to accept and adopt to change is not present. There are various steps necessary for initiating change process which includes establishing a sense of urgency. The other step involves building a powerful guiding coalition which is necessary for leading a change process. This would include having leaders who are capable of creating a change environment among members. Hiatt (2010) describes that HR professionals are also responsible for developing a vision and strategy which is necessary for showing the destination of change and the benefits that change may bring to the entire organisation. They also communicate the vision of change through maximising employees’ attitude by generating their willingness to invoke their thoughts. HR professionals also ensure effective change management by eliminating the obstacles that may hinder change for example by demoting or eliminating employees who might hinder achievement of organisation change. Strategies for organizational change According to Conlon (2000) strategies for organisational change only occur after both employees and the managers of an organisation have changed their attitude towards the new approach and system. This occurs after people’s attitude has changed and new systems implemented, this also means that some things will be eliminated or added in the organisation. Below is a flow chart that represents the strategies of change initiation, implementation and finally the expected outcomes for an organisation. Three distinct strategies of change that will successfully ensure employees have embraced organisational change are planning which means understanding the organization, lead which is leadership buy-in, communication and competency building and finally sustenance. Planning strategy When planning to the change in the organisation, it is important to carry out an analysis in order to understanding of the organisation. Rosenberg (2004) argues that this means the sub-cultures of different societies should be studied, stakeholders should be identified and analysed they are capable of resisting change. An effective communication plan and strategy should also be established. This involves the point where change strategy is established to enable the change to be implemented in future. Change management should be constituted in order to achieve a successful outcome (Stewart and Furlan 2004, pp. 10-11). Leadership strategy According Hiatt (2010) leadership as a change strategy is very important because employees and stakeholders need somebody who can show them the right path into achieving key objectives in the organisation. Leadership buy-in is composed of conducting change contract workshops for employees and stakeholders. The operations manager of an organisation should develop a connection with all the employees. Change management should be oriented on the tasks required for a successful change and also incredible outcomes. Leaders should actually try and connect with their employees as a team in order to achieve what the board requires to achieve successful outcomes. Rosenberg (2004) shows leadership strategy also means assessing risks that can be caused by people who refuse to adapt to change. This is very important in the company because change means a new challenge to the organisation and it also has am impact on employees’ work since they will have to adapt to the new systems. Communication The best way to make all employees agree with new ideas is to communicate with them on a personal level. This means that leaders should develop and deliver effective information to all members. It is also necessary for leaders to take time to listen to what the employee’s opinions on organisational change. This form of communication is necessary as it tracks and monitors analysing the most appropriate method of change implementation. The leaders should occasionally disagree and give evidence of the reasons why change is important in a constant changing environment. Other forms of communications can also be used to encourage employees on adapting to organisational change (Lewis 2011). Competency building This involves the ability of employees to perform their tasks in the direction of achieving organisation objectives. Lewis (2011) argues that these employees will then be trained, coached and mentored by professionals with the intention of making them of high value to the organisation. Training also assesses the needs of employees and managers and also the impact of this change to the organisation. An analysis is carried out in order to find out the outcomes of change in employees’ performance. Training, development and mentoring should be done for all employees including managers to encourage them cope with the changing systems. Strategy of sustenance Sustenance means that all employees who perform well under the new introduced information system should be motivated and maintained into the organisation as they are a major asset to the business. Employees who are outstanding in work performance should however be recognised for motivation purposes and to encourage others to improve their adoption to the new system. A feedback mechanism for employees should be put into place to know what to improve or eliminate. Resolution of issues raised by employees, clients and managers should be resolved while keeping in mind the parties involved. The previous system had a different performance expectation but the new system requires that the performance management be reconsidered because expectations are high and different. A change team of managers should help to institutionalise this organisational change effectively (Dunphy, 2011, pp. 78-89). Challenges faced by the change team One of the major challenges is that managers who are the change team face are resistant to change. This comes from employees who have spent ten years to work in the same jobs with the same rules and regulations. Organisation culture is also another form of challenge that most employees will hold on to for a very long period of time. Business capacity is another challenged that might hinder organisational change. If the resources are very limited, then training and new systems will not be effective. Time is also a factor when change is effected and therefore the organisation should schedule the best time for training and hiring needs to be done while the business is still operational (Stewart and Furlan 2004, pp. 10-11). Conclusion Technological development has been so rapid in this century in such a way that individuals and organisations have had to accept the many changes that come with developed technology and especially information systems. Information technology has facilitated the pace of changing industry, commerce, government and in everyday living. However, critics have been raised to speculate whether changes are rapidly increasing without being accommodated by acceptable amounts of human and social stress. Information systems therefore act as agents of change since its development has changed the strategic processes of organisations and the society. It has also played a major role in E-learning and integration of information resources. Though the main mission of organisations and production of good and services remains the same, Information systems and technology has brought great changes. References Top of Form Bottom of Form Avegerou, C. 1998. How can IT enable economic growth in developing countries? Information technology for development, vol. 8, no. 1, pp. 15-28. Ayers, S. 1999. The cultural impact of computer technology, viewed 31 May 2011, Burgess, J & Julia, S 2001, Training and workforce restructuring in Australia, International Journal of Employment Studies, vol. 9, no. 1. pp. 1-24. Conlon, T 2000, Visions of change, Information technology, education and postmodernism, British Journal of educational technology, vol. 31, no. 2 Dunphy C 2011, Transformational and coercive strategies for planned organizational change, Organizational Studies, vol. 32, no. 4, pp. 78-89. Eischen, K 2000, Information Technology, History, Practice and implications for development, CGIRS – Working Paper Series, vol. 4. Feenberg, A 1996, Heidegger, Habermas, and the essence of technology, viewed 31 May 2011, Hiatt, J 2010, The definition and history of change management. New York: Routledge. Lewis, L 2011, Organizational change, Creating change through strategic communication, West Sussex, pp. 256. Lombardo, T and College, R 2006, The impact of information technology, Learning, living, and loving in the future, The Labyrinth, vol. 5, no. 2., viewed 31 May 2011 Read More