MIS 648 Lecture 1 1

MIS 648 Presentation Notes: Lecture 1

What do Culture and IT have to do with each other?

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AGENDA

Introduction to the lecture Goal of the Lecture What is culture? IT and culture Cultural analysis: Hofstede and Globe IT culture Culture clash Challenges

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Goals of the Lecture

To understand the role of culture in business

To understand what culture and information systems have to do with each other

To be able to generate a list of challenges that culture presents to the use of IT in business

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What is Culture?

Habitual modes of thought Values, ideals Patterns of behavior Symbols, artifacts Not “high culture”

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IT & Culture

Habitual modes of thought – IT? Values, ideals – IT? Patterns of behavior – IT? Symbols, artifacts – IT? Not “high culture” – IT?

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How IT and Culture Interact

National Culture

Artifact Use

Results

Values

Results oriented culture

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Various Paths

IT USEALL ARTIFACT

USE

IT Culture

NationalCulture

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Cultural Analysis

Our focus: National Culture as it affects business practice

Not interested (yet) in Organizational Culture

Leading name is Hofstede (Link) Many problems with Hofstede, but

almost all business cultural analysis is based on his work.

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Physical/GeographicalEnvironment

Basis of Cultural Analysis

Factor 1

NationalCulture

Factor 2

Factor 3

Behaviors, Policies, Practices

BusinessEnvironment and

Practice

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Further Complication: IT Culture

There is some evidence that there is a “culture of IT” (Link)

Moreover, members of this culture live all over the world

In addition, this culture is very strong in the sense that it has a strong influence over its members in specific areas

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Further Complication: IT Culture

Areas of influence: Habitual modes of thought: systematic Values: “Procedural ethics”; the system is

always right; users are always wrong Artifacts: software

It may also be that IT culture is influencing other cultures

In addition, there is always “business culture”

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Culture Clash

NationalCulture

ITCulture

BusinessCulture

OrganizationalCulture

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The Situation

HQ

Foreign Country/Foreign Culture

LocalSubsidiary/

Branch Office

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Challenges

HQ vs. local national culture HQ vs. IT culture Moving people around Diffusing technology Exporting E-based business Developing systems Offshoring

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HQ vs. local national culture

Situation: Firm opens a subsidiary or branch office in another country (or even another region)

Challenge: Cultural values in local office clash with that of HQ

Manifestations: Business practices, value of money and time, religious mis-matches, attribution of causality

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Responses

Understand local culture Be prepared for conflict Don’t invite or provoke conflict Send in sensitive people; if you don’t

have them, train them. Appoint “chief transition officer” Face up to problems, don’t ignore them

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HQ vs. IT culture

Situation: Our employees don’t get along with IT people (on-site or outsourced)

Challenge: The work has to get done. Manifestations: Arguments, poor specs,

over time, over budget, poor post-implementation usage

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Responses

This is not a new problem Expect culture clash, as with any

specialization in the firm Understand where IT culture comes from Promote open communication Don’t expect IT to improve! Appoint application stewards with

training

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Moving People Around

Situation: New people are sent to subsidiary (or vice-versa)

Challenge: Getting along (productivity) Manifestations: Passive-aggressive

behavior, miscommunication, anger or despair, missed targets, “folklore”

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Responses

Select people carefully Expect clashes Plan from Day 0 Education doesn’t hurt Learn from past experience Don’t trivialize problems

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Diffusing technology

Situation: Firm wants to “install” software or system at local site.

Challenge: Implementation, use Manifestations: Minimal use, lack of

participation, “folklore”, problems go unfixed.

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Responses

Consider if installation is needed Go with local implementation team Massage communication channels Consider local development Implement locally-oriented training Insist on quality, but don’t insist on

identical behavior Wait for Section C.

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Exporting E-based business

Situation: Firm has global website, wants to sell into another culture’s society

Challenge: Making sales without making enemies

Manifestation: No sales, no hits, anger, riots, web espionage

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Responses

Obtain local expertise Run focus groups or test the website Know about cultural taboos before

investing in web content Consider local operations Wait for Section D.

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Developing systems

Situation: Firm wants to develop global systems for HQ and subsidiaries/ branches

Challenge: Creating systems Manifestations: Over time, over budget,

over size, impossible to maintain, conflict in the IT shop

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Responses

Increase communication Select development tactic and stick with

it Centralized (w and w/o local customization) Best in Class Local development

Consider whether this change is actually needed.

Wait for Section F.

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Offshoring

Situation: Firm wishes to have foreign firm develop apps or systems

Challenge: Getting the right system without unexpected side effects

Manifestations: Don’t realize the benefits expected, poor systems, loss of IT capability at HQ, legal problems

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Responses

Wait for Section G.