Slide 08 1 Chapter 08 Change Management Chaffey

Slide 08. 1 Chapter 08 Change Management Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 2 Management issues Typical questions facing managers related to this topic: • Are there typical responses of individuals to organizational change which can be anticipated and controlled? • What are the success factors for managing change associated with major information management implementations? Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 3 Learning outcomes After reading this chapter, you will be able to: • Identify models of response to change associated with information management initiatives. • Assess the suitability of responses to organizational change associated with the introduction of new information management approaches. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 4 Change management • Approaches to managing changes to organizational processes, structures and their impact on organizational staff and culture is known as change management. Approaches to managing change associated with information management initiatives is the subject of this chapter. • The high failure rates for information systems projects are often a consequence of managers’ neglect of how users will react to new ways of working. • The need to manage change applies not only to new information systems, but is critically important to all business information management initiatives, whether it is the introduction of a new enterprise resource planning system, an intranet facility for knowledge management, conducting an information audit or implementation of a policy to improve data quality. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 5 Types of change Incremental change Relatively small adjustments required by an organization in response to their business environment Discontinuous change Change involving a major transformation in an industry organizational change Includes both incremental and discontinuous change to organizations Anticipatory change An organization initiates change without an immediate need to respond Reactive change A direct response by an organization to a change in an organization’s environment Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 6 Characterisation of organizational change Figure 8. 1 Characterization of organizational change Source: Nadler et al. (1995) Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 7 Four key types of organizational change 1. Tuning. This is an incremental form of change when there is no immediate need for change. It can be categorised as ‘doing things better’. New procedures or policies may be used to improve process efficiency i. e. to reduce time to market or reduce costs of doing business. 2. Adaptation. Also an incremental form of change, but in this case it is in response to an external threat or opportunity. It can also be categorised as ‘doing things better’. For example, a competitor may introduce a new product or they may be a merger between two rivals. A response is required, but it does not involve a significant change in the basis for competition. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 8 Four key types of organizational change 3. Re-orientation. A significant change or transformation to the organization is initiated due to discontinuous change. There is not an immediate need for change, but the change is in anticipation to change. 4. Re-creation. In re-creation, the senior management team of an organization decides that a fundamental change to the way it operates is required to compete effectively. Both re-orientation and re-creation can be categorised as ‘doing things differently’. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 9 Business Process Management (BPM) Business Process Management An approach supported by software tools intended to increase process efficiency by improving information flows between people as they perform business tasks. • • The BPM concept has been defined by Gartner (2003) as follows: ‘BPM is a methodology, as well a collection of tools that enables enterprises to specify step-by-step business processes. Proper analysis and design of BPM flows require a strong understanding of the atomic business steps that must be performed to complete a business process. As BPM executes a business process, these atomic steps will often correspond to well-known business activities, such as checking credit ratings, updating customer accounts and checking inventory status. In effect, the BPM process flow is often just a sequence of well-known services, executed in a coordinated fashion. ’ ‘Classic document workflow, which was BPM's predecessor, focused on humans performing the services. Fuelled by the power of application integration, BPM focuses on human and automated agents doing the work to deliver the services. ’ Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 10 Business Process Re-engineering (BPR) Hammer and Champy (1993) defined BPR as: ‘the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. ’ Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 11 Impact of process innovation • Willcocks and Smith (1995) characterise the typical changes that arise in an organization with process innovation as: 1. work units changing from functional departments to process teams; 2. jobs changing from simple tasks to multi-dimensional work; 3. people’s roles changing from controlled to empowered; 4. focus of performance changing from activities to results; 5. values changing from protective to productive. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 12 Different scales of change Term Involves Intention Risk of failure Business process reengineering Fundamental redesign of all Large gains in main company processes performance through organization-wide (>100%? ) initiatives. Highest Business process improvement Targets key processes in sequence for redesign (<50%) Medium Business process automation Automating existing process Often uses workflow software (Chapter 2) (<20%) Lowest Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 13 Kurt Lewin’s change model 1. Unfreeze or unlock from the present position or behaviour by creating a climate of change through education, training and motivation of future participants. 2. Move quickly from the present state to the new state by developing and implementing the new way of working. 3. Refreeze by making the system an accepted part of the way the organization works. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 14 Transition curve indicating the reaction of staff through time Figure 8. 2 Transition curve indicating the reaction of staff through time Source: BIM Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 15 Common responses to change • Aggression – in which there may be physical sabotage of the system, deliberate entry of erroneous data or abuse of systems staff. • Projection – where the system is wrongly blamed for difficulties encountered while using it. • Avoidance – withdrawal from or avoidance of interaction with the system; non-input of data; reports and enquiries ignored or use of manual substitutes for the system. • Criticism – Concerns about the system are actively voiced, although they may not be justified. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 16 Culture – Schein’s view • Assumptions are the invisible core elements of an organization’s culture such as a shared collective vision within an organization. • Values are preferences that guide behaviour such as attitudes towards dress codes and punctuality within an organization or ethics within a society. • Artefacts are tangible material elements of cultural elements. These will be identifiable from the language used in the policies, procedures and acronyms of the organization, and the spoken word and dialects of the society. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 17 Four types of cultural orientation 1. 2. 3. 4. Survival (outward-looking, flexible) – the external environment plays a significant role (an open system) in determining company strategy. The company will likely be driven by customer demands and will be an innovator. It may have a relatively flat structure. Productivity (outward-looking, ordered) – interfaces with the external environment are well structured and the company is typically sales-driven and is likely to have a hierarchical structure. Human relations (inward-looking, flexible) – this is the organization as family, with interpersonal relations more important than reporting channels, a flatter structure and staff development and empowerment being thought of important by managers. Stability (inward-looking, ordered) – the environment is essentially ignored with managers concentrating on internal efficiency and again managed through a hierarchical structure. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 18 Hayes 4 phase change model 1. Initial orientation. 2. Preparation. 3. Change implementation. 4. A supportive phase. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 19 Change strategies 1 Transition phase Typical actions by change managers Implications for information management applications 1. Shock/awareness Create a climate of receptivity to Pre-announcement and involvement are readily change. Announcement sufficiently in practicable for information management. advance in involving senior managers. Announcement and ownership by a senior manager is still important, even if project is not of strategic importance. 2. Denial Diagnosis of the reason for denial is important. Gently support the staff through denial. Repeat message of reason for change and justify. Find ways to get staff involved in change early. Involvement is typically a requirement of information management projects, so this is usually practical for some staff, for others communication of the benefits and progress of the project and the implications for them should be considered. 3. Depression Providing support and listening are required at this stage rather than ignoring complaints. This stage tends not to be marked for information management-related change projects. 4. Letting go Continued explanation of the benefits of the new system without denigrating the past approach. Setting targets associated with the new system. Around this stage prototypes of the new system will be available which will help with the process of letting go since tangible evidence of the new system and hopefully, its benefits will be available. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 20 Change strategies 2 Transition phase Typical actions by change managers Implications for information management applications 5. Testing is encouraged by encouraging experimentation without blame where problems occur. Testing corresponds to the testing phase of the system or adoption of the new system dependent on involvement. Positive or negative feedback on the new system should be encouraged, discussed and acted upon where appropriate. 6. Consolidation This is facilitated by reviewing performance and learning and recognizing, rewarding and communicating benefits. Improvements achieved through the system should be assessed and communicated. 7. Reflection and learning This is achieved through structured learning about the change through reviews and encouraging unstructured learning such as feedback about the system. Post-implementation reviews can occur at this stage. The use of a structured system to log problems with the system or process can also help. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 21 3 key stakeholder types • System sponsors are the backers of the system or change in approach. They tend to be senior managers whose role is to be budget holders for the change initiative or responsible for a successful outcome or both. They are committed to the change and want to achieve success. The sponsors will try to fire up staff with their enthusiasm and stress why introducing the approach is important to the business and its workers. • System owners are departmental or process managers in the organization who will use the system to support their areas of the business. For an enterprise system there could be several system owners, for example a marketing director could be responsible for the CRM component of an E-business system while the operations director is responsible for the supply chain management part of the system. • System users. These are staff in the different areas of the business who are actively involved in using the system to support their day-to-day work. This could be a buyer in procurement, a production line manager in a factory or an accountant in the finance department. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 22 Types of system users • Legitimizers who support the need for the system and are respected since they are experienced in their job, regarded as the experts by fellow workers or simply popular. • Opinion leaders whom others watch to see whether they accept new ideas and changes. They usually have little formal power, but are often (but not always) regarded as good ideas people who are receptive to change. If such people are critical of the system then this can spread resistance to change. • Followers. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 23 Leadership qualities The need for senior management involvement is a common theme in discussion of success factors for change management. For example, Schein (1992) concluded that three variables are critical to the success of any large-scale organizational change: 1. The degree to which the leaders can break from previous ways of working. 2. The significance and comprehensiveness of the change. 3. The extent to which the head of the organization is actively involved in the change process. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 24 Kotter on leadership • Articulating the vision in ways that are understandable by the people affected by change (he says this is often ‘undercommunicated by a factor of 10 (or 100 or even 1, 000)’); • Involving people in deciding how to achieve the management vision, thereby giving them some sense of control; • Supporting people to achieve the vision by being a role model and providing coaching and feedback; • Providing focus by identifying short-term wins; • Recognising and rewarding success. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 25 E-commerce change approaches • • Cope and Waddell (2001) have assessed the role of leadership style in e-commerce implementations. They assessed the most common approaches to e-commerce implementation, distinguishing between these approaches: Collaborative – widespread participation of employees occurs to define the changes required and techniques to achieve them. Consultative – management takes the final decision, after calling on some employees for input. Directive – The management team takes the decisions with the employees generally trusting them to do so and generally informed. Coercive – the management team takes the decision with very limited recourse to employees. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 26 Kotter’s 8 success factors for change 1. Establish a sense of urgency. 2. Form a powerful coalition (a change team). 3. Create a vision which is imaginable, desirable, feasible, focused, flexible, communicable. 4. Communicate the vision. 5. Empower others to act on the vision. 6. Plan for and create short term wins. 7. Consolidate the change and produce more change. 8. Institutionalize new approaches by demonstrating the benefits. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 27 Leadership in action – Jack Welch of GE, c 2001 • ‘Last year I told you I believed e-Business was neither "old economy" nor "new economy, " but simply new technology. I’m more sure of that today. If we needed confirmation that this technology was made for us, we got it. GE was named last year "e-Business of the Year" by Internet. Week magazine and awarded the same title last week by WORTH magazine. ’ • ‘Digitization is, in fact, a game changer for GE. And, with competition cutting back because of the economy, this is the time for GE to widen the digital gap, to further improve our competitive position. We will do that by increasing our spending on information technology by 10% to 15% this year despite the weak economy. ’ Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 28 Kotter and Schlesinger 6 methods of participation and involvement The six methods are: 1. Education and persuasion. 2. Participation and involvement. 3. Facilitation and support. 4. Negotiation and agreement. 5. Manipulation and co-option. 6. Direction and a reliance on explicit and implicit coercion. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 29 Characteristics of communications for managing change Hayes recommends that four characteristics of communication should be reviewed as part of employee motivation: 1. Directionality. We have already suggested that it is important that communication is a two-way process. Furthermore, there is a danger in large organizations, where information is filtered when it is passed from top to bottom, or bottom to top that the final recipients may not receive all the information they need. 2. Role. We saw in a previous section that some types of employee such as legitimisers and opinion leaders have a great capacity to influence. It is important that they are identified and involved actively at all stages of the change process. 3. Content. The information itself transmitted in communication, is of course, key to effective communication. Sufficient detail must be contained with communications to justify change, but at the same time, the message should be kept straightforward and clear. 4. Channel. Information on change can be delivered verbally, via paper memos, e-mail, phone or even mobile text messages. Choosing the appropriate range of channels is key here. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 30 Summary of employee motivation techniques • A range of techniques can be deployed and these must carefully balance the need for the ‘carrot and the stick’. • The literature stresses the need for two-way communication and dialogue using a range of different communication channels. • Staff motivation is dependent on organization culture and existing job characteristics. It may be difficult to modify these underlying drivers of employee satisfaction during an individual change project. • For information management projects it is important that education is not limited to training how to use the new systems, but also explaining the reasons for their introduction and the implications for the individual and their teams. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 31 Corporate information portals – what are they? Corporate information portal organizational information resources are made accessible via an intranet using structured and non-structured approaches Benefits: 1. Improved information sharing 2. Enhanced communications and information sharing (communications) 3. Increased consistency of information 4. Increased accuracy of information 5. Reduced or eliminated processing 6. Easier organizational publishing Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 32 Approaches to managing change 1. ‘Cover all your bases’. This refers to using a cross-discipline project team 2. Avoid generalisation. Content should be themed for particular types of employees, not an average employee. It is recommended that the system has a phased implementation for one ‘community’ at a time such as finance, sales or HR. 3. Keep current. Mc. Farland (2001) says: ‘Intranets buckle under the burden of useless, outdated information’. She recommends using software that uses automatic content expiration dates that automatically remove content when it is no longer applicable. Another approach is to make individuals responsible for particular types of content. 4. Measurement. Review web analytics and conduct surveys with employees. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 33 A corporate portal used in the Nasa Jet Propulsion Laboratory Figure 8. 3 A corporate portal used in the Nasa Jet Propulsion Laboratory Source: Nasa Jet Propulsion Laboratory Management Team (http: //km. nasa. gov) Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 34 Sell-side e-commerce – what is it? • We saw in Chapter 2, that sell-side e-commerce refers to e-commerce transactions between a supplier organization and its customers who may be other businesses (B 2 B) or consumers (B 2 C). We saw that these transactions may be financial i. e. when a sale occurs, but they may also be informational such as information requests or support enquiries. Sell-side e-commerce E-commerce transactions between a supplier organization and its customers possibly through intermediaries Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 35 Sell-side e-commerce benefits Tangible benefits Intangible benefits Increased sales from new sales leads giving rise to increased revenue from: – new customers, new markets – existing customers (repeatselling) – existing customers (crossselling) Marketing cost reductions from: – reduced time in customer service – online sales – reduced printing and distribution costs of marketing communications Adding value to products through supporting information, applications and customer service Corporate image communication Enhance brand More rapid, more responsive marketing communications including PR Faster product development lifecycle enabling faster response to market needs Learning for the future Meeting customer expectations to have a web site Identify new channel partners, support existing partners better Better management of marketing information and customer information Feedback from customers on products Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 36 Sell-side e-commerce change issues • The problems of change management for sell-side e-commerce are similar to those of corporate portals and intranets, but this time, it is an external audience that must be influenced to encourage a change in behaviour from previous ways of working to new ways of working. There is a similar problem of encouraging continued usage and participation in the use of online information resources and applications. • When sell-side e-commerce systems are introduced into a company there also problems of conflict with other parties who also communicate with customers. For instance, sales representatives and distributors may feel their role is being usurped. Customer-service staff in contact centres also have to be trained to manage enquiries from customers from a range of channels. However, in this coverage we concentrate on influencing the customers, which is a different type of change management to the employee related change management issues covered by other examples in this chapter. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 37 Approaches to managing change • Research barriers to change and facilitators of change • Define effective online value proposition • Communicate proposition • Accommodate channel resistance Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 38 Survey results for browsing and purchasing from the Internet in Europe Figure 8. 4 Survey results for browsing and purchasing from the Internet in Europe Source: European Interactive Advertising Association (2004) Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 39 Barriers to development of online technologies Figure 8. 5 Barriers to development of online technologies Source: DTI (2002) Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 40 RS Components transactional web site Figure 8. 6 RS Components transactional web site Source: www. rswww. com Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 41 CRM – What is it? • Customer relationship management (CRM) systems were introduced in Chapter 2. Customer relationship management systems are used to support the marketing and delivery of services to customers. • In the context of The Lo-cost Airline Company, a CRM system would include tools for helping customers select the best flight, purchasing tickets, answering pre-flight queries and support in any postflight queries such as problems with baggage. A CRM system may also be used for marketing relevant, personalised offers direct to customers through direct mail (post) or e-mail. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 42 Main components of a typical CRM System Figure 8. 7 Main components of a typical CRM System Source: Siebel (2002) Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 43 CRM capabilities and benefits • • Effective customer segmentation – organizations can market to, sell-to and serve customers more effectively by targeting their unique needs and preferences and understanding their relative value. Customers are grouped according to their needs and value and different offerings delivered to each. CRM also enables marketing communications to be tailored on an individual level according to past products purchased, for examples. Integrated multi-channel strategy – Customers require services to be delivered over a range of channels such as phone, web, e-mail, face-toface or by mail. These channels all need to deliver the same experience to the customer and from the company’s perspective support each other in achieving sales and customer satisfaction. Well-defined integrated customer-focused business processes. The right technology and in particular a consistent, up-to-date picture of all information and contacts related to a customer (characteristics and sales, service, campaign contacts) sometimes referred to as a single view of the customer. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 44 Typical CRM benefits • 8% increase in revenue (through better targeting of customers in marketing campaigns giving a greater response, selling more products to existing customers (up-selling and cross-selling) and reducing customer attrition). • 18% increase in employee productivity (customer contacts can be handled more rapidly since information is rapidly provided and processes partly automated). • 18% increase in customer satisfaction (this again arises since information is more readily to hand fulfillment should be improved i. e. the customer is more likely to receive the product or service they ordered on-time). Increasing customer satisfaction has been shown to reduce attrition/increase customer retention. • 13% increase in customer retention (arising from increased satisfaction and better targeted communications). • 13% decrease in operating costs (resulting from fewer staff needed to serve customers/manage processes and better targeted communications with less wastage). Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 45 CRM change management issues Butler Group found 70 percent of CRM implementations fail. A Gartner study found that 55 percent of all CRM projects failed to meet customers' expectations. A 2001 Bain & Company survey of 451 senior executives, found that CRM ranked in the bottom three categories among 25 popular software tools evaluated for customer satisfaction. However, ZDNet (2002) reports on another survey (not by a wellknown IT analyst) that showed that ‘only 35 percent of CRM implementations, when considered over their entire life, can be considered failures’. It reported that in contrast, 45 percent of CRM implementations were producing a payback. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 46 CRM - 6 levers of change 1. Compensation and rewards. 2. Boss’s behaviour. 3. Policies and processes. 4. Training. 5. Communication. 6. Organizational structure. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 47 BI – What is it? • Business intelligence (BI) refers to a category of software or approach to information management used by managers to understand improve the performance of their processes. • At its simplest, Business Intelligence software is a modern term for business reporting software. This software counters information overload to deliver relevant, timely information to managers’ desktops and into their hands. • At its most complex, it offers sophisticated analysis tools for identifying patterns and relationships within data – an approach known as data mining. Such information tools have been previously known as decision support systems (DSS). Business intelligence Software used to analyse and improve business processes through the provision of analysis and reporting capabilities Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 48 Data mining – what is it? Data mining Software is used to identify relationships within data items in a database Data mining is commonly used within marketing applications, marketingrelated examples of data mining techniques include: • • • Identifying associations – a shopping basket analysis by a chemist revealed an association of shoppers who purchase condoms and foot powder. It is not clear how this information can be used! Identifying sequences – shows the sequence in which actions taken by customers occur e. g. path or clickstream analysis of a web site. Classifications – patterns e. g. identifying groups of web site users who display similar visitor patterns. Clustering – finding groups of facts that were previously unknown. Customers who purchase a particular product can be grouped according to their characteristics. Potential customers who share these characteristics can then be identified. Forecasting – using sales histories to forecast future sales. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 49 Data warehouses – what are they William Inmon is often known as the father of the data warehouse, he defines a data warehouse as: A subject oriented, integrated, time variant, and non-volatile collection of data in support of management’s decision making process. It is worth considering each of the characteristics of the definition in more detail: • ‘subject oriented’. Examples of subjects that are commonly held in data warehouses for analysis are customer and product. • ‘integrated’. An important principle of data warehouses is that information is collected from diverse sources within an organization and brought together to enable integrated analysis. • ‘non-volatile’. Data is transferred from operational information systems such as sales order processing systems into a data warehouse where the information is static – it is not updated. This is to prevent degradation of the performance of the operational systems. • ‘in support of management’s decision making process’. This final point emphasises the purpose of the data warehouse. • Data warehouses Large database systems containing detailed company data on sales transactions which are analysed to assist in improving the marketing and financial performance of companies. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 50 Architecture of a data warehouse Figure 8. 8 Architecture of a data warehouse Source: Bocij et al. (2003) Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 51 Business Objects Performance dashboard Figure 8. 9 Business Objects Performance dashboard Source: Business Objects Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 52 Problems of change management • Case study 8. 3 ‘Fighting the flood of data’ gives an indication of the benefits and problems of introducing business intelligence systems. • Some of the problems referred to in the case include using different BI tools in different areas of the business; using tools for data mining in ways that don’t support the business; lack of focused objectives and insufficient data cleansing (Chapter 10). These data warehouse projects which were common in the mid 1990 s reported similar failure rates to CRM projects. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 53 Problems in managing data warehouses • • • A 1998 report, by the Meta group identified these (still common) failings : 35– 40%: Data quality; 30– 35%: Transforming/scrubbing legacy data, managing end-user expectations; 20– 25%: Managing management expectations, business rule analysis, managing meta-data (data about data); 15– 20%: Database performance tuning/scaling, ROI justification; 10– 15%: Time to load/refresh data; 5– 10%: Security, maintenance. Chaffey and Wood Business Information Management © Pearson Education Limited 2005

Slide 08. 54 10 success factors 1. Information relevance. 2. Ease of access. 3. Data standards. 4. Dedicated resource. 5. Adequate performance. 6. Corporate sponsorship. 7. Operationally stable. 8. Agreed infrastructure. 9. New user culture. 10. Source data. Chaffey and Wood Business Information Management © Pearson Education Limited 2005