INFORMATION SYSTEM ‎SUCCESS AND FAILURE

INFORMATION SYSTEM
SUCCESS AND FAILURE
MANAGEMENT INFORMATION SYSTEM (5567)
HUMA MALIK
DEPARTMENT OF BUSINESS ADMINISTRATION
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

Management Information System (5567)
TABLE OF CONTENTS
1. INTRODUCTION TO INFORMATION SYSTEM ………………………………………... 1
2. COMPONENTS OF INFORMATION SYSTEMS ..………………………………………... 2
3. INFORMATION SYSTEM STRATEGY ……………….………………………….………. 3
3.1. Characteristics of Information System Strategy
3.2. Classification of Strategic Role of Information System
4. ROLE OF INORMATION TECHNOLOGY (IT) IN INFORMATION SYSTEM (IS) ……. 4
5. EVOLUTION OF INFORMATION SYSTEM (IS) ……………………………..…….……. 5
6. INFORMATION SYSTEM AT ORGANIZATIONAL LEVELS ………………..…….……. 5
6.1. Operational Management Level
6.2. Tactical Management Level
6.3. Strategic Management Level
7. CLASSIFICATION OF INFORMATION SYSTEMS ………………..…….……………….. 6
7.1. Operations Support Systems
7.2. Management Support Systems
7.3. Other Classifications of Information Systems
8. INFORMATION SYSTEM (IS) SUCCESS AND FAILURE ………………..…….………… 9
8.1. Information System (IS) Success
8.1.1. The DeLone and McLean model
8.2. Information System (IS) Failure
8.3. Information System as a type of socio-technical system
8.4. Characteristic features of Information system project
8.5. Classification of system failures
8.6. Majors causes of information systems failure
9. STRATEGIES ORGANISATIONS CAN TAKE TO ENSURE SUCCESS OF INFORMATION
SYSTEM PROJECTS………………………………………….……………..…….………… 15
10. SECP - INFORMATION SYSTEM (Organization study ) …….…………..…….………… 17
10.1. Introduction
10.2. Evolution of Information System and Technology
10.3. The Information Technology Strategy Plan (ITSP)
10.4. Accomplishments of IT function
10.5. Examples of SECP’s products based on Information System and Technology
10.6. Developmental activities, facilitation measures and online services:
11. CONCLUSION ……………………………………………….….…………..…….………… 22
12. REFERENCES ……………………………………………….….…………..…….………… 23
13. APPENDIX ………..………………………………………….….…………..…….………… 24

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1. INTRODUCTION TO INFORMATION SYSTEMS
An information system (IS) can be any organized combination of people, hardware, software,
communications networks, data resources, and policies and procedures that stores, retrieves, transforms,
and disseminates information in an organization. People rely on modern information systems to
communicate with one another using a variety of physical devices (hardware), information processing
instructions and procedures (software), communications channels (networks), and stored data (data
resources). (O'Brien & Marakas, 2011)
An information system is a set of elements (people, data, and procedures) working together to provide
useful information. Also, information system (IS) is any set of information technology and people’s
activities using that technology to backup operations, management, and decision-making. In a wider
sense, the word information system is often used to refer to the relationship between people, algorithmic
processes, data and technology. Therefore, the term is used to refer not only to the information and
communication technology (ICT) an organization uses, but also to the way in which people interact with
this technology in support of business processes. An information system consists of computers,
instructions, stored facts, people and procedures. (Essays, 2018)
Information system, an integrated set of components for collecting, storing, and processing data and for
providing information, knowledge, and digital products. Business firms and other organizations rely on
information systems to carry out and manage their operations, interact with their customers and suppliers,
and compete in the marketplace. Information systems are used to run inter-organizational supply chains
and electronic markets. For instance, corporations use information systems to process financial accounts,
to manage their human resources, and to reach their potential customers with online promotions. Many
major companies are built entirely around information systems. These include eBay, a largely auction
marketplace; Amazon, an expanding electronic mall and provider of cloud computing services; Alibaba, a
business-to-business e-marketplace; and Google, a search engine company that derives most of its
revenue from keyword advertising on Internet searches. Governments deploy information systems to
provide services cost-effectively to citizens. Digital goods—such as electronic books, video products,
and software—and online services, such as gaming and social networking, are delivered with information
systems. Individuals rely on information systems, generally Internet-based, for conducting much of their
personal lives: for socializing, study, shopping, banking, and entertainment. (Zwass, 2017)
Figure 1 illustrates a useful conceptual framework that organizes the knowledge presented in this text and
outlines areas of knowledge one need about information systems. It emphasizes that the efforts should be
concentrated in the following five areas of IS knowledge:
i. Foundation Concepts. Fundamental behavioral, technical, business, and managerial concepts
about the components and roles of information systems. Examples include basic information
system concepts derived from general systems theory or competitive strategy concepts used to
develop business applications of information technology for competitive advantage.
ii. Information Technologies. Major concepts, developments, and management issues in
information technology—that is, hardware, software, networks, data management, and many
Internet-based technologies.

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iii. Business Applications. The major uses of information systems for the operations, management,
and competitive advantage of a business. Applications of information technology in functional
areas of business such as marketing, manufacturing, and accounting, focuses on e-business
applications that most companies use to buy and sell products on the Internet, and the use of
information systems and technologies to support decision making in business.
iv. Development Processes. How business professionals and information specialists plan, develop,
and implement information systems to meet business opportunities.
v. Management Challenges. The challenges of effectively and ethically managing information
technology at the end-user, enterprise, and global levels of a business. (O'Brien & Marakas, 2011)
2. COMPONENTS OF INFORMATION SYSTEMS
An information system depends on the resources of people (end users and IS specialists), hardware
(machines and media), software (programs and procedures), data (data and knowledge bases), and
networks (communications media and network support) to perform input, processing, output, storage, and
control activities that transform data resources into information products. This information system model
(Figure 2) highlights the relationships among the components and activities of information systems. It
also provides a framework that emphasizes four major concepts that can be applied to all types of
information systems:
 People, hardware, software, data, and networks are the five basic resources of
information systems.
 People resources include end users and IS specialists, hardware resources consist of
machines and media, software resources include both programs and procedures, data
resources include data and knowledge bases, and network resources include
communications media and networks.
 Data resources are transformed by information processing activities into a variety
of information products for end users.
 Information processing consists of the system activities of input, processing, output,
storage, and control.
Figure 1

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2.1 Examples of Information System Resources and Products.
People Resources
Specialists - systems analysts, software developers, systems operators.
End Users - anyone else who uses information systems.
Hardware Resources
Machines - computers, video monitors, magnetic disk drives, printers, optical scanners.
Media - floppy disks, magnetic tape, optical disks, plastic cards, paper forms.
Software Resources
Programs - operating system programs, spreadsheet programs, word processing
programs, payroll programs.
Procedures - data entry procedures, error correction procedures, paycheck distribution
procedures.
Data Resources
Product descriptions, customer records, employee files, inventory databases.
Network Resources
Communications media, communications processors, network access, control software.
Information Products
Management reports and business documents using text and graphics displays, audio
responses, and paper forms. (O'Brien & Marakas, 2011)
3. INFORMATION SYSTEM STRATEGY
In business, Information system strategy (IS strategy) involves aligning information system
development with business needs. It should be demand oriented and business focus. There are total
three levels of information strategy which are information system strategy, information management
strategy, and information technology strategy.
Figure 2
Components of an
information system.
All information systems use
people, hardware, software,
data, and network resources
to perform input, processing,
output, storage, and control
activities that transform data
resources into information
products.

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3.1 Characteristics of Information System Strategy
 IS strategy considers what information is needed at strategic, tactical and operation levels of
an organization to meet its objectives.
 It must be able to deliver tangible benefits like the effectiveness of operations, increased
profit etc.
 It involves interconnecting of an organization’s activities that obtain process data and finally
provides information.
 This type of strategy highlights what information is needed to achieve business objectives.
 It may form to use informational resources for generating new business opportunities.
 An IS strategy must be able to meet the demand (demand-oriented) of an organization.
 This strategy is about either supporting existing strategies or development of new strategic
choices.
 It must be functional-based (How can organization’s functions, divisions and strategic
business units perform well?) (Explainry, 2018)
3.2 Classification of Strategic Role of Information System
The strategic roles of IS can be classified into Strategic Management, Strategic planning, and
Strategic operations.
 Strategic Management: It is a systematic approach to a major and increasingly important
responsibility of general management to position and relate the firm to its environment in a
way, which will assure its continued success and make it secure from surprises. It is
concerned with deciding on strategy and planning how that strategy is to be put into effect via
Strategic analysis, Strategic choice, and Strategic implementation.
 Strategic Planning: Strategic Planning is the process of developing and maintaining
consistency between the organization’s objectives and resources and its changing
opportunities. Strategic Planning turns an organization’s vision, more commonly referred to
as its mission, into concrete achievable.
 Strategic Operations: The day to day running of organization involves mostly the:
4. ROLE OF INORMATION TECHNOLOGY (IT) IN INFORMATION SYSTEM (IS)
Due to emergence of Information technology, number of businesses had to change their business model
and convert their selves towards information technology oriented Business Model to take advantage
over their competitors. The success of an information system should not be measured only by its
efficiency in terms of minimizing costs, time, and the use of information resources. Success should also
be measured by the effectiveness of the information technology in supporting an organization’s
business strategies, enabling its business processes, enhancing its organizational structures and culture,
and increasing the customer and business value of the enterprise.
Strategic information systems apply information technology to a firm’s products, services, or business
processes to help it gain a strategic advantage over its competitors. Business applications of

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information systems in the real world are typically integrated combinations of the several types of
information systems. The conceptual classifications of information systems are designed to emphasize
the many different roles of information systems. In practice, many roles are combined into integrated or
cross-functional informational systems that provide a variety of functions. Most information systems
are designed to produce information and support decision making for various levels of management
and business functions, as well as perform record-keeping and transaction-processing chores. (O'Brien
& Marakas, 2011)
5. EVOLUTION OF INFORMATION SYSTEM (IS)
The evolution of Information System function can be summarized as follows (Table 1):
Table 1
1950 – 1960 1960 – 1970 1970 – 1980 1980 – 1990 1990 – 2000
2000 –
Present
Data
Processing
Management
Reporting
Decision
Support
Executive
Support
Knowledge
Management
E-Business
Collects, stores,
modifies and
retrieve day-to-
day
transactions of
an organization
Help workers
Pre-specified
reports and
displays to
support business
decision-making
Helps middle
managers
Interactive ad-
hoc support for
the decision-
making process
Helps senior
managers
Provide both
internal and
external
information
relevant to the
strategic goals
of the
organization
Helps
Executives
Supports the
creation,
organization and
dissemination of
business
knowledge
Help available
enterprise wide
Greater
connectivity,
higher level of
integration
across
applications
Helps global
e-business
(Vaish, 2017)
6. INFORMATION SYSTEM AT ORGANIZATIONAL LEVELS
A typical organization is divided into operational, middle, and upper level. The information
requirements for users at each level differ. Towards that end, there are number of information systems
that support each level in an organization. The following figure 3 illustrates the various levels of a
typical organization.
6.1 Operational Management Level
The operational level is concerned with performing day to day business transactions of the
organization. Examples of users at this level of management include cashiers at a point of sale,
bank tellers, nurses in a hospital, customer care staff, etc.
Users at this level use make structured decisions. This means that they have defined rules that
guides them while making decisions. For example, if a store sells items on credit and they have a
credit policy that has some set limit on the borrowing. All the sales person needs to decide

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whether to give credit to a customer or not, are based on the current credit information from the
system.
6.2 Tactical Management Level
This organization level is dominated by middle-level managers, heads of departments,
supervisors, etc. The users at this level usually oversee the activities of the users at the operational
management level. Tactical users make semi-structured decisions. The decisions are partly based
on set guidelines and judgmental calls. As an example, a tactical manager can check the credit
limit and payments history of a customer and decide to make an exception to raise the credit limit
for a particular customer. The decision is partly structured in the sense that the tactical manager
has to use existing information to identify a payments history that benefits the organization and
an allowed increase percentage.
6.3 Strategic Management Level
This is the most senior level in an organization. The users at this level make unstructured
decisions. Senior level managers are concerned with the long-term planning of the organization.
They use information from tactical managers and external data to guide them when making
unstructured decisions. (Guru99, 2019)
7. CLASSIFICATION OF INFORMATION SYSTEMS
Figure 4 illustrates the conceptual classification of information systems applications. Information
systems are categorized in the way to spotlight the major roles each plays in the operations and
management of a business.
Figure 3

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Figure 4 Operations and Management classifications of Information Systems.
Figure emphasizes the main purposes of information systems
that support business operations and managerial decision making
7.1 Operations Support Systems
Information systems have always been needed to process data generated by, and used
in, business operations. Such operations support systems produce a variety of information
products for internal and external use; however, they do not emphasize the specific information
products that can best be used by managers. Further processing by management information
systems is usually required. The role of a business firm’s operations support systems is to process
business transactions, control industrial processes, support enterprise communications and
collaborations, and update corporate databases efficiently. (Table 2)
Table 2 - A summary of Operations Support Systems with examples.
 Transaction processing systems. Process data resulting from business transactions, update
operational databases, and produce business documents.
Examples: sales and inventory processing and accounting systems.
 Process control systems. Monitor and control industrial processes.
Examples: petroleum refining, power generation, and steel production systems.
 Enterprise collaboration systems. Support team, workgroup, and enterprise communications
and collaborations.
Examples: e-mail, chat, and video conferencing, groupware systems
7.2 Management Support Systems
When information system applications focus on providing information and support for
effective decision making by managers, they are called management support systems.
Providing information and support for decision making by all types of managers and business
professionals is a complex task. Conceptually, several major types of information systems support

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a variety of decision-making responsibilities: (1) management information systems, (2) decision
support systems, and (3) executive information systems. (Table 3)
Table 3 - A summary of Management Support Systems with examples.
 Management information systems. Provide information in the form of prespecified reports
and displays to support business decision making.
Examples: sales analysis, production performance, and cost trend reporting systems.
 Decision support systems. Provide interactive ad hoc support for the decision-making
processes of managers and other business professionals.
Examples: product pricing, profitability forecasting, and risk analysis systems.
 Executive information systems. Provide critical information from MIS, DSS, and other
sources tailored to the information needs of executives.
Examples: systems for easy access to analyses of business performance, actions of
competitors, and economic developments to support strategic planning.
7.3 Other Classifications of Information Systems
Several other categories of information systems can support either operations or management
applications. For example, expert systems can provide expert advice for operational chores
like equipment diagnostics or managerial decisions such as loan portfolio management.
Knowledge management systems are knowledge-based information systems that support the
creation, organization, and dissemination of business knowledge to employees and managers
throughout a company. Information systems that focus on operational and managerial
applications in support of basic business functions such as accounting or marketing are
known as functional business systems. Finally, strategic information systems apply
information technology to a firm’s products, services, or business processes to help it gain a
strategic advantage over its competitors. (Table 4)
Table 4 - Other Categories of Information Systems with examples.
 Expert systems. Knowledge-based systems that provide expert advice and act as
expert consultants to users. Examples: credit application advisor, process monitor,
and diagnostic maintenance systems.
 Knowledge management systems. Knowledge-based systems that support the
creation, organization, and dissemination of business knowledge within the
enterprise.
Examples: intranet access to best business practices, sales proposal strategies, and
customer problem resolution systems.
 Strategic information systems. Support operations or management processes that
provide a firm with strategic products, services, and capabilities for competitive
advantage.
Examples: online stock trading, shipment tracking, and e-commerce Web systems.
 Functional business systems. Support a variety of operational and managerial
applications of the basic business functions of a company.
Examples: information systems that support applications in accounting, finance,
marketing, operations management, and human resource management.
(O'Brien & Marakas, 2011)

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8. INFORMATION SYSTEM (IS) SUCCESS AND FAILURE
Information systems success and failure are among the most prominent streams in IS research.
Explanations of why some IS fulfill their expectations, whereas others fail, are complex and multi-
factorial. Despite the efforts to understand the underlying factors, the IS failure rate remains high.
The world of information systems (IS) in organizations provides numerous examples of successful IS
implementation providing benefits for both organizations and the employees working for them. These
benefits include improved profitability and improved organizational performance, as well as efficient
and effective business processes or working routines on an individual level. Nonetheless, numerous
examples of IS implementation failures are reported leading to negative consequences for the
organizations in terms of financial losses and other risks. Research showed High-profile examples of
IS implementation failures are Hewlett-Packard’s (HP) failure in 2004 that had a financial impact of
$160 million, Nike’s failure in 2000 that cost $100 million in sales and resulted in a 20 % drop in
stock price, and Hershey Foods failure that caused the stock to decrease by 8 %. In the public sector,
numerous examples of IS failures are also reported: for example, more than 27,000 students at the
University of Massachusetts (as well as Stanford and Indiana University) had to deal with
malfunctioning portals and ERP applications that left them at best unable to find their classes and at
worst unable to collect their financial aid checks. (Dwivedi…et al, 2015)
One consequence of IS failure is often a dispute between software vendors and their customers about
the reasons and responsibility for the huge financial loses thereby incurred. For example, the garbage-
disposal firm Waste Management is embroiled in a $100 million legal battle with SAP over an 18-
month installation of its ERP software. Waste Management complained that SAP executives
participated in a fraudulent sales scheme that resulted in the massive failure, whereas SAP claimed
that Waste Management failed to define its business requirements accurately, and to provide
sufficient, knowledgeable, decision-empowered users and managers to work on the project
(Fruhlinger & Wailgum, 2017, July 10). These examples show that the reasons for a successful or
failed IS implementation are complex and contested, as different stakeholders and perspectives are
involved.
In general, ―failure‖ and ―success‖ are tricky but well-known words in the IS field; they are hard to
define, but extensively researched. IS research has focused for decades on both outcomes providing
several explanations regarding IS failure and success in organizations.
What is and what determines IS success? DeLone and McLean (1992) suggested that IS success
should be the preeminent dependent variable for the IS field. They proposed a taxonomy of six
interrelated variables to define IS success: System Quality, Information Quality, Use, User
Satisfaction, Individual Impact, and Organizational Impact. Since the original publication of their
model in 1992, researchers have investigated, modified, or extended the concept of IS success. One of
the major extensions is the service quality dimension of information technology (IT) departments.

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8.1 Information System Success
Regardless of whether the economy is booming or busting, organizations want to ensure that their
investments in information systems (IS) are successful. Managers make these investments to address a
business need or opportunity, so it is important to identify whether the systems meet the organization’s
goals. Information systems success research evaluates the effective creation, distribution, and use of
information via technology. As information technology has developed since the mid-1950s, information
has become more voluminous, more ubiquitous, and more accessible by all. If we believe that
information is power, this progress in information availability has changed the power dynamics of
relationships between corporations and consumers, between buyers and suppliers, between small
businesses and large businesses, and between citizens and their governments. Thus, the measurement of
IS success has become ever more complex while, at its core, still simple. The complexity arises because
the uses and users of information systems are ever expanding. Therefore, the context has infinite
possibilities in terms of the purpose of an IS and the definition of its stakeholders.
The DeLone and McLean (1992, 2016) IS Success Model provides a valuable framework for
understanding the multi-dimensionality of IS success.
8.1.1 The DeLone and McLean IS Success Model
Early attempts to define information system success were ill-defined due to the complex,
interdependent, and multi-dimensional nature of IS success. To address this problem, DeLone and
McLean, performed a review of the research published during the period 1981–1990 and created a
taxonomy of IS success. After extensive research and feedback from numerous experts, DeLone
and McLean identified six dimensions of IS success measurement: (Figure 5)
a. System Quality (technical level);
b. Information Quality (semantic level);
c. Use,
d. User Satisfaction,
e. Individual Impact, and
f. Organizational Impact (influence level).
Figure 5 - IS success model by DeLone and McLean, 1992
These six dimensions and related measures were not independent success measures, but were
interdependent variables. Therefore, to measure information system success, all six constructs must

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be measured and/or controlled. Failure to account for all six can lead to possible confounding
results or an incomplete understanding of the system under investigation.
In 2003, the modified revision of the D&M Model appeared. This Model described the individual
success variables: ―System Quality,‖ ―Information Quality,‖ ―Service Quality,‖ ―Use,‖ ―User
Satisfaction,‖ and ―Net Impacts.‖
Figure 6- Updated DeLone and McLean IS Success Model (2003) (D&M Model)
They are defined as:
 System Quality — the desirable characteristics of an information system. For example,
ease of use, system flexibility, system reliability, and ease of learning, as well as system
features of intuitiveness, sophistication, flexibility, and response times.
 Information Quality — the desirable characteristics of the system outputs; i.e.,
management reports and Web pages. For example, relevance, understandability,
accuracy, conciseness, completeness, understandability, currency, timeliness, and
usability.
 Service Quality — the quality of the support that system users receive from the
information systems organization and IT support personnel. For example, responsiveness,
accuracy, reliability, technical competence, and empathy of the IT personnel staff.
 Use — the degree and manner in which employees and customers utilize the capabilities
of an information system. For example, amount of use, frequency of use, nature of use,
appropriateness of use, extent of use, and purpose of use.
 User Satisfaction — users’ level of satisfaction with reports, Websites, and support
services.
 Net Impacts — the extent to which information systems are contributing (or not
contributing) to the success of individuals, groups, organizations, industries, and nations.
For example: improved decision-making, improved productivity, increased sales, cost
reductions, improved profits, market efficiency, consumer welfare, creation of jobs, and
economic development. (DeLone & McLean, 2016)
The selection of the particular success dimensions and the specific metrics are dependent on the nature
and purpose of the system(s) being evaluated. For example, an e-commerce application, in contrast to

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an enterprise resource planning system application, would have some similar success measures and
some different success measures. Both systems would measure information accuracy, while the e-
commerce system is more likely to measure the personalization of information presentation than an
ERP system that uses standard report formats. Similar differences in measures and metrics would be
encountered in attempting to measure the success of IS systems.
8.2 Information System Failure
Studies focusing on IS failure, rather than success, have also been prominent over the last four decades.
Such studies focus on the shortfall between actual and required performance. IS failure can be defined
as ―either the implemented system not meeting the user expectations or inability of creating working or
a functioning system‖
A systems failure occurs when a system does not meet its requirements or when the level of
discontentment with a system increases to the level that there is no enough provision to sustain it.
Information system project failure may be as a result of its inability to meet users’ requirements and/or
overruns pertaining to budget or completion time. Studies have shown that many failed projects are
over budget, some by as much as 189%. Research showed that only one-sixth (16.67%) of projects are
finished as schedule and within budget. An information system failure can cause financial loss,
commercial embarrassment, loss of customers and revenue streams, sanctions and the loss of staff
morale or stakeholder allegiance in an organization. Examples of system failures includes an alarm
system that fails to sound when pressed, an automated door that fails to open and close on its own
accord on approach, ammunition that detonates prematurely, and other similar conditions. (Essays, UK,
2018)
The Standish group (1995) in classified IS project outcome as Type 1, Type 2 and Type 3.
 A “successful” project‖ classified as the Type 1 projects are those that were successfully
implemented within the stated time and budget with all required features and functionality
specified.
 The “challenged” projects classified as the Type 2 projects are those that ―suffer budget overruns
and/ or program slips thereby failing to completely achieve its goal even though they are
completed and operational,
 Type 3 project classified as the “Impaired” projects are those cancelled or abandoned at some
point during the development cycle‖.
8.3 Information System as a type of socio-technical system
Technical failure may not necessarily be the cause of project impairment, lack of adoption of a
technically faultless IS project by end users or corporate management consequently resulting in its lack
of use or underutilization denotes failure. From this view point, Information system is said to be a
socio-technical system. Information system is also described as ―a social system that uses information
technology‖. This can be explained in the sense that as a technical system, a system that fails in an
organization can be successfully implemented in another organization while as a social system an

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Information system can be successfully implemented in an organization while the implementation of
another information system can result in failure. (Essays, UK, 2018).
8.4 Characteristic features of Information system project
Information system projects are capital and labour intensive usually requiring a huge sum of money to
implement. Its failure can cause a huge financial loss to an organization and therefore there is need for
adequate planning before its implementation to ensure that desired expectations are met. An
information system is a type of socio-technical system which is critical to the survival and well-being of
companies. As a result, the right technology must be deployed and the end users educated on its use and
benefits. Also, Brooks in Ewusi-Mensah (1997) stated that ―IS projects are conceptual in nature‖ (i.e.
―it is pure thought stuff which is invisible and unvisualizable‖).
In addition, there are certain risks and uncertainties such as large project size, unfamiliarity with the
new technology and unstable information requirements associated with projects that are difficult to
assess prior to the start of the project. IS projects are group oriented requiring members from different
backgrounds and therefore require a high degree of coordination and clear lines of communication to
ensure success Ewusi-Mensah (1997).
8.5 Classification of system failures
Table 5 presents a list of IS project failure dimensions that have been proposed in literature. (Goedeke,
Mueller & Pankratz, 2017)
Table 5. IS Project Failure Dimensions
There are four major categories of Information system failure according to Lyytinen and Hirschheim (in
Essays, 2019). These categories are as follows:
a. Process failure: this occurs when an Information system project cannot be developed within
an allocated budget and/or time schedule. The project development results in overspending in
both cost and time.
b. Correspondence failure: this occurs when the objectives and goals of the systems design are
not met.

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c. Interaction failure: this is attributed to the level of end-user usage or adoption or acceptance
of the implemented information system. User attitudes, data packets, user satisfaction and the
degree of adoption are measures of usage of information system usage.
d. Expectation failure: this is the inability of a system to meet its stakeholders’ requirement,
expectations or values.
Another classification of failures is:
 Hard ware design/specification error: Faulty hardware faulty hardware can bring about
serious system failure. This factor is then again an essential one that should be given due
consideration together with the more common software errors. Faulty hardware should be taken
into thought when designing the systems in order to try and reduce the impact of the failure.
Hardware failure is not as likely to occur as software faults but can be as damaging.
 Software developmental error: this is error due to imperfect software development as a result
of inadequate test run of the program and poor user interface among others
 End user error: this arise a result of inadequate training and/or user resistance.
(Ben Meadowcroft)
8.6 Majors causes of information systems failure
a) Unclear goals: lack of well defined project goals and objectives which is the key to the
success of any IS project development. There is also need to state clearly the information need
of an organization and also the adoption process before attempting to introduce an information
system.
b) Improper reporting structure/Miscommunication: since the development of large IS
projects is the work of a team drawn from diverse groups of people with responsibilities to
ensure the project’s success which includes IS staff, end users and senior management, there is
need for the establishment of clear lines of communication and well defined lines of authority
and responsibility among team members. Communication in project teams is ―essential to sort
out dispute concerning requirements of design decisions among project members‖.
c) Inept/incompetent leadership: Poor management of the project and lack of good leadership
responsible for coordination and control, measurement of progress and making of vital
decisions at different phases of the project.
d) Poor technology base or infrastructure: lack of adequate technological base needed for
successful implementation of the kind of systems development being considered. According to
researchers, the distance between the existing system and the replacement system is essential
for the success of an information system.
e) Poor project management: this has to do with inadequate measurement system to measure
progress and equally identify potential risks in time to mitigate them.
f) Lack of technical competence: the technological know-how of information systems staff is
very vital to the success of IS projects as lack of familiarity with an information technology
new to the IS staff is contributory to IS project failure. If a user is improperly trained then the
likelihood of them making major errors is increased due to their lack of knowledge of the
system. Failures by reason of lack of training should not be regarded as an error due to the

15
individual operator as is likely with a poorly designed user interface, but as a mistake by the
management.
g) Scope creep: projects excessively grand in scope usually have higher risks and higher
complexities and therefore more prone to failure. Scope is the initial ―blueprint‖ of an
implementation plan.
h) Poor selection decision of project team members: the project team composition is also vital
for the success of the information system project.
9. STRATEGIES ORGANISATIONS CAN TAKE TO ENSURE SUCCESS OF INFORMATION
SYSTEM PROJECTS
Need for a clear and well defined IS goal: Firstly, to ensure success of information system projects
there is need for a clear and well defined IS goal. Every member of the IS project management team as
well as stakeholders should know the specific information requirement of the organization as well as how
to go about satisfying it. This is important to guide the information requirements phase of the
development process. Failure in this area will lead to fragmented efforts and lack of focus in assembling
facts to guide the rest of the development.
Selection of competent and qualified staff for IS project team: Secondly, the selection of competent
and qualified staff to serve as members of IS project team is very vital for successful project
implementation. Team members should be those with real prior experience and who are equally familiar
with the technology being deployed. Improved training of the end users will significantly reduce system
failures and improve the integrity of data stored on the computer systems. The project team should consist
of the most successful people of the organization. One of IS project’s keys to success is ―assembling a
team capable of making and executing‖ changes required.
Divide IS project into phases: The imposition of structure on the developmental effort of the project
helps to guide it to successful completion. It involves the division of the project into phases which helps
the project team realize what deliverables for each stage are and to know the extent to which they have
been met.
It is also important that clear lines of authority, communication and responsibility among team
members be drawn. This is important since the team members are drawn from diverse units. Selection of
competent leaders who will ensure that proper management and control practices are adhered to and
enforced in the implementation process of an Information system is vital. Adequate safeguards and
oversight by management is necessary to ensure technical personnel’s compliance with accepted industry
standards for reporting and dealing with problems uncovered in any phase of system development. The
leader should be one with both application-domain knowledge and software knowledge. There should
also be regular periodic meetings to discuss the systems development effort. A successful
implementation of a project is only attainable when high-level executives possess a strong commitment to
the project.
The technological infrastructure available in a company needs to be critically assessed to determine it
is adequate to support the kind of system development that is to be implemented. Care should be taken

16
not to embark on IS project development until management have the assurance that the company’s
technological base is adequate. Assurance from the Management Information System management should
be taken to reduce the risk s and uncertainties associated with system development works.
There is need for the maintenance of scope. The ability to maintain scope is related to planning and this
is attainable for companies both small and large. Colgate-Palmolive Company itemized scope
maintenance as a contributory factor to their success. The roll out approach for the implementation of the
information system project is a very important consideration under scope maintenance. There are two
approaches namely the ―big bang‖ approach and the gradual (phased) rollout approach. Both approaches
have their pros and cons. Oil giant Chevron attributes a phased roll out to the successful implementation
of an information system project. Home Depot has also successfully implemented several modules of an
Information system using the phased roll out approach. Phased roll-out approach though more expensive
and usually taking longer time, offer reduced business risk. (Davenport, 2000)
Internal readiness/training is also vital for the successful implementation of an information system
project. The most common failure factor recorded was that of ―readiness for change‖. All employees must
be trained on the new system in order to prevent underutilization of the system. Also managers must
understand the implication of the system and the changes it will cause. If managers are not in agreement
or cooperation, then there will be no ―eagerness‖ or buy-in and this may result to resistance or lack of
adoption of the new system. (Davenport, 2000)
Planning/development /budgeting are necessary for the success of an information system project.
Planning should be intimately identified with maintaining scope during an implementation. Ineffective
planning results in cost overruns and development delays. Home Depot, Lockerheed Martin and Mead
Corporation are examples of companies attributing success to planning.
Adequate testing of the system is a key element for the successful implementation of the system. It is
reported that Gillette Company withstood five months of severe testing procedures before their successful
go-live date. Also, Eastman Kodak was able to complete what at the time was the largest implementation
on record as a result of testing. Whirlpool Corporation attributes inadequate testing as its single reason for
unsuccessful and costly implementation. The company gambled on its testing program by cutting down
the amount of time needed to test runs the new system before implementing it in a bid to meet deadlines.
(Essays, 2018)

STUDY ON
INFORMATION SYSTEM OF SECURITIES & EXCHANGE
COMMISSION OF PAKISTAN (SECP)

17
10 INFORMATION SYSTEM SECURITIES & EXCHANGE
COMMISSION OF PAKISTAN (SECP)
10.1 Introduction
The Securities and Exchange Commission of Pakistan (SECP) was setup in pursuance of the Securities
and Exchange Commission of Pakistan Act, 1997 and became operational on January 1, 1999.
Vision: The development of modern and efficient corporate sector and capital market based on
sound regulatory principles, that provides impetus for high economic growth and foster social
harmony in the country.
Mission: To develop a fair, efficient and transparent regulatory framework, based on
international legal standards and best practices, for the protection of investors and mitigation of
systemic risk aimed at fostering growth of a robust corporate sector and broad-based capital
market in Pakistan.
Strategy: To develop an efficient and dynamic regulatory body that fosters principles of good
governance in the corporate sector, ensures proper risk management procedures in the capital
market, and protects investors through responsive policy measures and effective enforcement
practices.
10.2 Evolution of Information System and Technology
Information Technology throughout the developed world has evolved from a back-end activity for
organizations to one of core importance, taking initiatives for improving upon the efficiency and
effectiveness of various functions. Information Systems &Technology Division at SECP has, in a
similar way, evolved from provision of simple workstation management function to one of facilitation
for all functions and IT has become the core business of all business at SECP. Today, information is
increasingly recognized as a key resource of the organization comparable in importance to capital and
human resources, the way organizations manage information will determine their survival and growth
in future. The digital integration both within the organization and outside is changing how SECP
organize and manage their information. Ultimately, these changes are leading progressive and forward-
looking organizations such as SECP to become digital completely and sustain an environment where all
internal business processes as well as relations with the outside world are digitally enabled.
The communication and IT have now entered a revolution phase after evolving over the years and
opened up entirely new vistas for SECP internally as well as externally; it has brought about a dramatic
shift not only in the way the SECP is operating today and will operate in the future in terms of service
delivery and new product launches, but also collaborate and interact with each other both within SECP
and with other organizations.
It has reached a threshold where SECP‟s future orientations, strategies and activities have to be
revisited and adjusted to the new circumstances and opportunities offered by the IT revolution.
Globally the information and communication sector is already expanding at twice the rate of the world
economy. Decreasing costs of increasingly powerful and reliable IT solutions, as well as the fact that
much hardware and software has become a desktop item, will continue to drive the use of information

18
and communication technologies, facilitating access by ever wider segments of the organization. But
this tendency can have profound benefits only if gains in physical access are accompanied by
capacities to exploit these technologies for individual and organizational development through
production and dissemination of appropriate content and applications.
The IT function at SECP, since its inception is well aware of the fact that the growth of Internet-
enabled applications has brought a new challenge to IS designs, with new demands for systems that
accept input and tacit knowledge from a broad range of users. This demand is driven by the realization
that a lot of knowledge and experience is still not captured and utilized accordingly. In fact, gathering
opinions, concerns, suggestions, ideas, and revelations is just as important as collecting hard facts. In
addition, it is also understood that the IS must accept and manage dynamic and often unstructured
information. In view of the above, an Information Technology Strategy Plan (ITSP) for 7 years was
prepared and presented before the Policy Board of SECP in 2004. The IT team at the SECP had
envisaged years back that the adaptation of a complete electronic culture will result in a collection of
fully automated process that provide a more effective method of achieving the goal of efficient and
transparent governance.
10.3 The Information Technology Strategy Plan (ITSP) :
The Information Technology Strategy Plan (ITSP) has been completed as planned, was divided into the
following key areas:
 Business Development and Regulations Process covers electronic incorporation of companies,
electronic submission of returns, monitoring and surveillance. The SECP became the first
organization in the region that developed SOA-based architecture of its eServices programme
and use of digital signature was also introduced for the first time in Pakistan in 2008 although the
work has started much earlier in 2006. This mega initiative not only realized and fulfilled the
dream of eGovernance in Pakistan but won number of laurels for the SECP nationally as well as
internationally. The most significant of these is the award of Laureate Gold Medal in june 21011
at Andrew W. Melon Auditorium, Washington, DC.
 Business Process Management and Content Management to help in setting out the technical
approach to automation of SECP offices with incorporation of workflow automation and content
management. This is helping in integration of existing applications and will enhance work
efficiencies and move towards a paperless environment. The SECP has taken an proactive
approach by setting up a distinct department to take care of both change management
(transformation) and knowledge management. The Transformation and Knowledge Management
Department was placed in the same division under which IT department also works, this move is
in line with the international approaches to not only ensure business-IT alignment but also to
achieve smooth and effective implementation of IT action plans that effect the core business
processes of the Commission.
 Applications Development for functions/divisions of the SECP to help automate the routine
regulatory actions taken and also provided a mean to better organize and analyze the data related
and documents. A number of applications have been developed to take this extremely important

19
task forward. One of the laudable efforts in this direction is the in-house development of
eSurveillance suite of applications at par with the international products. Given the pervasiveness
of mobile technology in Paksitan (over 120 million users) and increased use of smart phones, the
IT is now looking at developing state-of-art mobile phone applications for internal as well as
external users.
 The creation of a comprehensive Data Warehouse based on the data being captured by existing
as well as the future applications. The impressive portfolio of application that SECP can boast of
covers almost all of its business processes. IT has recently obtained tools for business activity
monitoring (BAM) and business process management (BPM). The combination of data
warehousing and knowledge management (KM) will be used to generate real time analytics
provided to key decision makers through various dashboards on their personalized portals to
enable them make right decisions at the right time.
 Information Gateway for exchange and dissemination of information among international
and national organizations, companies and general public. A number of new, interactive and out
of the box solutions have been implemented to ensure participation of the key stakeholders both
within and outside the SECP. A discussion forum and ideas‟ portal have also been launched. A
unified communication solution has been implemented which has brought about an enormous
change in the way the SECP employees can communicate with each other and outside worlds on
a single touch of a button and benefit from the latest communication tools such as video
conferencing, tele-presence, business instant messaging and IP technology throughout the
Commission.
 Information Technology Consolidation, highlighting enhancement in existing hardware,
network, connectivity between head office and CROs virtualization initiative of the IT has
resulted in saving resources for the SECP, which were effectively diverted/utilized in ensuring
implementation of an in-depth information security program and thus getting ISO 270001
certified since 2012. A number of important projects for ensure end-to-end digital security
involving servers, networks, databases and other digital information are being implemented. A
fully automated state of the art disaster recovery hot-site has been established to ensure business
continuity for the Commission.
10.4 Accomplishments of IT function
Information Technology has evolved over time in its applications. Although, it started out primarily as
cost control application for focusing internally on office automation, etc. It is increasingly being used
for corporate strategic planning and more and more for managing alliances among multiple
organizations, groups and general public, i.e. eServices and One Stop Shop (OSS). Being a progressive
and forward-thinking organization, the SECP, has realized the changing role of IT and adjusted
accordingly keeping in view their short term and long term objectives. SECP has become a modern
organization, with efficiency and timeliness as a vision and clears stands out owing to its innovative
use of IT among the public sector of Pakistan. During these years SECP has made use of most creative

20
and innovative approaches for diffusion of IT, making use of a mix of awareness tools among the user
community.
In order to further achieve the vision of complete end to end digitalization for all processes of the
Commission, in the light of the changing role of IT, it is imperative that it continues to make full use of
technology in general and IT in particular. Since such objectives cannot be met haphazardly and
unsymmetrical manner, there is a need for implementing the Information Technology Strategy Plan
with full commitment to achieve this. Throughout the last five years or so, the IT function of the SECP
has been working tirelessly with all the departments at the SECP to ensure development and
implementation of systems tailor-made according to their requirements and embarked upon various
initiatives in-house and with outside support, forging numerous long-term partnerships in the process.
One of the objectives has been to maximize automation of functions and general services at the SECP
without excessively straining its financial resources. With this a number of the external partnerships by
IT have forged, have been with E-Government Directorate (EGD), MOIT, PSEB, World Bank and
Asian Development Bank (ADB).
SECP has come a long way since a humble beginning; more and more emphasis is being placed on in-
house development of software packages tailor-made according to the requirements of various
departments and divisions within the SECP. With every passing day, the SECP is becoming more and
more conscious of the fact that the IT is playing a vital role in all the developmental and innovative
activities within the organization. The outcomes of these activities are held creative yet in par with the
international quality standards.
IT function of the SECP has been ranked at highest level of maturity applying the well-known Galliers
Sutherland Stages of Growth model in terms of staff, style, skills, and super-ordinate goals etc. IT
function has moved from evolution to revolution at the SECP.
10.5 Examples of SECP’s products based on Information System and Technology
Projects of the Commission like the Scanning and Archiving of documents, Disaster Recovery Centre,
ERP, Insurance Industry Regulatory System and Market Monitoring and Surveillance are driven by
Information Technology.
The SECP, being an apex regulatory body, is fully aware of the importance of “ease of doing business”.
It has introduced a number of reforms to reduce the cost of doing business, leading to a robust
corporate growth and documented economy in the country. The following reforms have been
introduced to reduce the cost of doing business in Pakistan.
 Company registration within four working hours
 Introduction of single online procedure for name reservation and company incorporation which
has reduced number of procedures and time for company registration
 Launch of one window facility for company incorporation and NTN registration
 Reduction in doing business cost of companies by merging of several statutory forms
 Agreement with 1-link to provide fee payment facility through ATM and internet banking
 Establishment of online service center along with the improvement in the facilitation counters

21
10.6 Developmental activities, facilitation measures and online services:
 The establishment of state-of-the-art facilitation centers at CRO Karachi, Lahore and
Islamabad
 Revamp of eServices
 Integrating eServices with the Sindh Business Registration Portal
 Implementation of Companies (General Provisions and Forms) Regulations, Foreign
Companies Regulations, Intermediaries (Registration) Regulations, in eServices
 Activation drive for dormant companies
 Seminars/conferences on benefits of corporatization and eServices
 Publication of brochures/guides to create awareness among public
 Updating of website to provide up to date information to stakeholders
 Service Desk Management System
 Jamapunji
 Scams and Frauds
 Complaints
 Dispute Resolution
 Verify Companies
 Investor Alerts
 Centralized e-IPO System
 e-IPO facilities by bankers to the issue
 e-Dividend

22
11 CONCLUSION
Information systems, especially as they continue to become more integrated and enterprise-wide, will face
some uncertain future with respect to the number of information systems that are “successful”. Failed IS
projects have resulted from both the management of the technology and the technology. If IS projects are
to have a good likelihood of survival, all phases of development (from the problem scoping and
requirements analysis through testing and implementation) must be carefully planned out at the beginning
of the project. All interested parties (i.e. the users, developers, managers, experts, trainers, etc.) need to be
actively involved and informed throughout the development process.

23
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O'Brien, J. A., & Marakas, G. M. (2011). Management information systems, 10th
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Standish Group, The. (1995). The CHAOS Report, 1995. Retrieved from
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12 Appendix Snapshot of SECP Information Systems

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INFORMATION SYSTEM ‎SUCCESS AND FAILURE

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