Building Information Systems for the Digital Firm: Information Systems Development as a Planned Organizational Change

Abstract

In today’s fast-paced business environment, the implementation of digital transformations is becoming a key element for companies to gain a competitive advantage, improve operational integration, and increase operational efficiency via the adoption of advanced technologies and digital platforms. However, despite the substantial investment in IT by companies across all sectors, many IT-enabled change initiatives have failed to produce the desired organizational results. Thus, it is clear that developing technology capabilities alone is not enough. This study will examine the process of implementing new information systems as a formalized, organization-wide change initiative in the context of digital transformations. In addition to synthesizing relevant prior literature in the Management Information Systems area, this study utilizes a single-case example of an Enterprise Resource Planning (ERP) project implemented in the banking industry to demonstrate how the approach used in developing systems interacts with organizational factors, including leadership, organizational culture, and the use of change management processes. The study’s findings indicate that a company’s ability to successfully implement a digital transformation will depend on a continued commitment from leadership to engage with the system development process, aligning the system development process with the overall organizational strategy, and proactively managing the social/organizational dynamics associated with the system development process. The study also illustrates that system development initiatives should be treated as long-term organizational change initiatives rather than as short-term, independent technology projects. Finally, this research adds value to the MIS body of knowledge by supporting the notion that information systems development should be viewed through the lens of an organizational change process and provides practical guidance for managers involved in planning and executing digital transformation initiatives.