Why a strategy based on technology alone cannot help organizations solve their business problems and achieve their business objectives?
2007/// Filed in: Management IS
There plenty of examples of companies that have gained sustainable competitive advantage through effective use of information systems (e.g. Amazon, eBay, Dell, Walt-Mart, Apple, YouTube, etc). Many other firms, however, fail to realize the benefits of their capital investments on information technology (IT). This is explained, in part, by the fact that strategies based on technology alone tend to be ill-conceived and limiting. This is the case because a mere technical strategy can have serious negative implications for organizations because it does not take into account numerous "societal considerations" that are critical in order for IT to function as an effective information system (IS). These societal considerations and human factors include an understanding of the organizational culture, context, values, structure, and processes. Top-down implementations based on technology considerations alone can be extremely disruptive to well-established and efficient business processes and often result in resistance from the intended user-base in the organization. Kling (2000) warns firms of the dangers associated with the technological approach and the thinking that IT/IS are mere "tools." According to Kling, viewing IT/IS as tools leads to 1) underestimate the cost associated with effective IS/IT implementation and adoption, and 2) overestimate the generalizability of applications from one setting or group of individuals to another.
IS investments and implementations have a much better change of translating into competitive advantage when they take into account the underlying organizational context and its impact on how IS are used. Societal aspects associated with the firm will determine how the IS will be used. IS will, in turn, affect the organizational context. For instance, the IS adopted in multidomestic enterprises will probably differ from those adopted by global enterprises due to differences in organizational structures, context, and processes; and adopting a given IS may -in turn- change these enterprises to behave more or less as transnational firms.
In summary, IS should be viewed as enabling technologies that are in constant interaction with people and processes within the organization. This is due, in part, to the evolving role of IS from data processing tools (50s), to managerial control tools (60s), to decision support tools (70/80s), to institutional core activities (90s), to becoming a major source of competitive advantage (21st). The view of IS as social systems is known as the "sociotechnical approach" (Laudon 2004) and there is an extensive body of research that examines the design, uses, and consequences of information and communication technologies (ICT) in ways that take into account their interaction with institutional and cultural contexts. This area of research is now known as "social informatics" (Kling 2000).
References:
Kling. "Learning Abut Information Technologies and Social Change: The Contribution of Social Informatics." (2000)
Laudon. "Managing Information Systems - Managing the Digital Firm" (2004)
IS investments and implementations have a much better change of translating into competitive advantage when they take into account the underlying organizational context and its impact on how IS are used. Societal aspects associated with the firm will determine how the IS will be used. IS will, in turn, affect the organizational context. For instance, the IS adopted in multidomestic enterprises will probably differ from those adopted by global enterprises due to differences in organizational structures, context, and processes; and adopting a given IS may -in turn- change these enterprises to behave more or less as transnational firms.
In summary, IS should be viewed as enabling technologies that are in constant interaction with people and processes within the organization. This is due, in part, to the evolving role of IS from data processing tools (50s), to managerial control tools (60s), to decision support tools (70/80s), to institutional core activities (90s), to becoming a major source of competitive advantage (21st). The view of IS as social systems is known as the "sociotechnical approach" (Laudon 2004) and there is an extensive body of research that examines the design, uses, and consequences of information and communication technologies (ICT) in ways that take into account their interaction with institutional and cultural contexts. This area of research is now known as "social informatics" (Kling 2000).
References:
Kling. "Learning Abut Information Technologies and Social Change: The Contribution of Social Informatics." (2000)
Laudon. "Managing Information Systems - Managing the Digital Firm" (2004)