Why New Systems Fail- an insider's guide to successful IT projects by Phil Simon

Why New Systems Fail- an insider's guide to successful IT projects by Phil Simon

A book Summary

"Trying is the first step toward failure" - Homer Simpson

There should be little doubt about the fact that IT security is more important and relevant than ever. There are increasing fears about the personal data of individuals, which can be evidenced by high-profile hacks such as the Yahoo hack in 2013, where billions of accounts were compromised, and the 2017 Equifax hack which affected the sensitive data of hundreds of millions of consumers. 

           Phil Simon’s timing couldn’t be better, as he delivers Why Systems Fail, a book that highlights why so many companies fall short when it comes to keeping their company prepared for, and secure from, cyber attacks. The book outlines how most companies actually fail in this respect, and that there are steps that can be taken for a company to ensure that their data is safe.

           The book is quick to point out that IT is something a company truly needs to take seriously, which means that if the organization has specific goals and expectations, it should take the appropriate steps to ensure that their budget accounts for IT security. Unfortunately, too many companies and organizations rely on “legacy systems” that simply aren’t efficient enough, and do not realize that it is imperative that they update their IT systems to achieve all of the complex processes of the organization safely and securely, which will help the overall productivity of the organization.

           An ERP solution can certainly help to centralize your IT needs, as it is a single enterprise resource planning solution from your provider, and the fact that it is centralized and unified might prove efficient for some organizations. For those who might not opt for that kind of structure, there are several options:

  1. SaaS - Software as a service is a huge industry in which companies and organizations essentially pay fees, or rent, for a vendor’s software.
  2. Open-source software: This solution is available at no charge, but might not have the capability necessary for your company.
  3. Independent Software Vendor - This might be a more costly but customized option from various vendors.

           The truth is that enterprise technology unfolds in three steps: selection, implementation, and maintenance, all of which are massively important in their own right.

           When it comes to selection, an organization has to be clear and upfront about its requirements so that they make the right choice. There are many software vendors that are simply interested in making a sale, rather than ensuring that they give you the best service at the best price. Of course, this is with any industry. However, it is more important than ever to consider your requirements considering this decision involves your organization’s data, and possibly consumer data, as well. We all know the kind of brand reputation hit that a company can take after there has been a data breach.

           Unfortunately, many software vendors might attempt to convince organizations that they need expensive add-ons that they simply do not need, and which cost a tremendous amount of money. Of course, every organization requires core functions, and some features might come in handy when it comes to productivity. Some examples might be communication tools to ensure that your team is as integrated as ever, which can help save time and money.

           However, it’s important to enter the selection phase knowing exactly what is needed, and to insist on clear explanations of certain features. This way, you can know that you are paying for exactly what you need. You might consider hiring a consultant to help with this process, and you will have to choose whether you hire them by the hour or by project, for example.

           Implementation is where you have to figure out how to utilize the new IT system, and whether you will deploy it all at once immediately or introduce it gradually so that your employees can “get the hang of it”. Here are some things to consider during the implementation phase:

  1. Business Processes: Think about your company culture. What are employees most complaining about, and what is frustrating, and seems to waste everyone’s time? There is no point in implementing a new system that doesn’t address these issues, and it’s important to point out that if these issues are addressed, it can help employee morale, as well. It’s also important to remember which functionalities need to be generalized, and which require more customization. Of course, this all depends on your organization and its specific needs.
  2. Data Format - It can be frustrating to constantly convert data into different formats, and unfortunately, much time and money is lost when this happens, and data quality is hindered. Your IT solutions absolutely have to address this issue, which might seem small, until some very valuable data is either lost or altered, and your organization does not have an adequate explanation for it. 
  3. Include Everyone - Your IT consultants should work with staff members, and members on every level of the organization should at least have some kind of surface-level understanding of the new system. While it might seem as though only certain individuals need to know about the new changes, it will never hurt for senior executives to understand how the IT system is different as well. Of course, make sure that employees and staff are actually absorbing the information from the consultants, and this means that they truly are cutting through the jargon and understanding what is expected of them. Of course, equipping a variety of people with this knowledge will be effective in the event of one particularly adept employee deciding to leave the company or go on vacation, so that the company can still perform as usual.
  4. Compatibility - Ensure that all of the technologies are compatible, so that your organization is as optimized as ever. 

The installation is of course where the new IT system is actually installed, and it has phases of its own.

  1. Project Planning: This is where the project leader should have control over the goals and expectations of the project. Dates should be finalized, and resources should be allocated. Your Group Responsibility Matrix, or GRM, can aid with the communication needed.
  2. Application Exploration: During this stage, begin employee training, and cautiously test processes and notice any potential errors or glitches with regards to live data. Obviously, document any errors and work with consultants to ensure that things are running as smoothly as possible.
  3. System Design: This is where you include and integrate data after the application exploration to your specific organization, and try to develop as cohesive an interface as possible. Create your IT security matrix, where you determine which employees have access to what information.
  4. System Testing: This is arguably the most important phase of the installation, where you undergo tests to ensure the overall quality of data, integration, user acceptance, and more.
  5. System Activation: This is when your system goes live, and it becomes the only system that your organization uses, and it is the final step. You also decide to either retire your legacy system or “archive” it for future reference.

It goes without saying that as a company grows, its needs change, and so does its operations. That’s why maintenance is absolutely essential when it comes to IT security. We all know that technology is constantly evolving, and so are cybercriminals. It’s important to recognize that maintenance is a necessity. One obvious step is to ALWAYS keep data on a backup server, no matter what, to give your organization some kind of peace of mind. It’s important to review your system and offer configurations and changes when it seems as though it might be required.

There are many reasons why systems might fail, which can cause projects to essentially collapse. There might be all sorts of issues that arise, whether it’s internal resistance, lack of employee training, or the lack of data quality - that can cause irreversible damage to a project. However, if companies and consultants work together, Why Systems Fail can be a great tool in ensuring that your company stays on top with regards to its IT security.

About the author: Phil Simon is an American speaker, professor, and author. He writes about management, technology, disruption, communication, and analytics.


 

Michael M. Landman-Karny

Corporate Controller | FP&A Director | M&A Integration Consultant | Aerospace, Financial Services, Non-Profit, Manufacturing, Software, CPG, & More 🚀 Driving Growth Across Multinationals & PE-Owned Ventures 💼📈

6y

Quite a few surprising nuggets of information !

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